The Kenya National Treasury

The Ministry of Finance derives its mandate from the Constitution of Kenya, Cap VII Sections 99-103 which provides for proper budgetary and expenditure management of government financial resources.

In addition, Parliament, over the years has enacted 49 Acts to which the Ministry of Finance is a custodian thereby adding more responsibilities to the Ministry.

The functions of the Ministry of Finance are strategic in several ways. As a main function, the Ministry is charged with the responsibility of formulating financial and economic policies. It is also responsible for developing and maintaining sound fiscal and monetary policies that facilitate socio – economic development. This responsibility makes the Ministry strategic and central to the country’s economic management, as all sectors of the economy look upon the Ministry to create an enabling environment in which they can operate effectively and efficiently. The Ministry regulates the financial sector which is central to the development of the country and on which all other sectors depend for investment resources.

Another strategic responsibility of the Ministry is the management of revenues, expenditures and borrowing by the government. The Ministry must ensure that it mobilises adequate resources to support government programmes and activities. Consequently, the Ministry has the task of developing sound fiscal policies that ensure sustainable budget deficits. In addition the Ministry must ensure that government expenditure is within the revenue collected to reduce domestic borrowing, which tends to cause negative ripples in economic management.

The Ministry is also strategic as far as bilateral and multilateral development financing and technical assistance is concerned. Given the need for support from development partners to enhance the country’s economic recovery and poverty reduction efforts, the performance of the Ministry in effectively coordinating this support cannot be underscored. The Ministry must therefore, provide direction in the identification, planning and management of donor support to ensure that it is targeted to those areas of the economy that need it most.

The Ministry coordinates government ministries/departments in the preparation of the annual national budget. It is the responsibility of the Ministry to initiate and guide all ministries/departments to prepare their ministerial budgets. The Ministry also provides Accounting, Auditing, IT, Insurance, Pensions, Procurement, Clearing and Forwarding services, and Divestiture services among others to other government ministries/departments.

The Ministry has established an elaborate network through its established departments, and sector institutions, to effectively deliver on its mandate.

Role of the National Treasury in the Devolved System of Government
The National Treasury is mandated by law to:
•    Strengthen financial and fiscal relations between the National Government and County Governments and encourage support for county governments in performing their functions.
•    Assist county governments to develop their capacity for efficient, effective and transparent financial management.
•    Prepare the annual Division of Revenue Bill and the County Allocation of Revenue Bill.
•    Provide logistical support to intergovernmental institutions overseeing intergovernmental fiscal relations.
•    Coordinate the development and implementation of financial recovery plans for county governments that are in financial distress.
•    Coordinate capacity building of County Governments on public finance management matters.

In order to effectively undertake its functions, the National Treasury has been restructured and is now organized into four (4) technical directorates to coordinate technical functions headed by Directors General and one (1) Administrative and Support Services directorate headed by a Principal Administrative Secretary. Each Director General is responsible for a directorate comprising a cluster of departments responsible for related policy functions. The functions of each Directorate are presented below.

The Senior Management

You can reach the National Treasury on the following Contacts:

Postal Address: P. O. Box 30007-00100.
Nairobi – Kenya
Phone: +254 020 2252299

Fax: +254 020 2252299

Email Address:  ps@treasury.go.ke

Website:         http://www.treasury.go.ke

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