Mandate and Functions of The Treasury

The National Treasury and Planning Ministry derives its mandate from Article 225 (1) of the Constitution of Kenya, 2010, which states that an Act of Parliament shall provide for the establishment, functions and responsibilities of the National Treasury whose provision is actualized in the Public Finance Management Act (PFM) Act 2012. Further, the functions and obligations of the National Treasury and Planning are drawn from the Executive Order No.1 of 2018 (Revised).

The core functions include:

  • Overall Economic Policy and Public Finance Management;
  • Formulation of National Budget;
  • Public Debt Management;
  • Formulation and Maintenance of Government Accounting Standards and Oversight Over Revenue;
  • Bilateral and Multilateral Financial Relations;
  • Formulation and Management of National Pensions; Market Competition and Consumer protection; Insurance; and Public Procurement and Disposal Policies;
  • Public Investment Policy and Oversight;
  • Development and Enforcement of Financial Governance Standards and Oversight;
  • Management of National and County Governments Financial Systems and Standards;
  • Development of Kenya as an International Financial Centre;
  • Custodian of National Government Assets and Property;
  • National and Sectoral Development Planning;
  • National Statistics, Census and Housing Surveys Management;
  • Population Policy Management;
  • Monitoring and Evaluation of Economic Trends;
  • Coordination of Implementation, Monitoring and Evaluation of Sustainable Development Goals (SDGs) and Liaison with Economic Commission for Africa; and
  • Promotion of Equity through Affirmative Action Programmes and National Government Constituency Development Fund.

The Role of the National Treasury and Planning in the Devolved System of Government

  • The National Treasury and Planning is mandated by law to:
    • Strengthen financial and fiscal relations between the National Government and County Governments and support for county governments in performing their functions;
    • Issue guidelines on the preparation of county development planning;
    • Prepare the annual legislative proposals on intergovernmental fiscal transfers;
    • 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;
    • Build capacity of County Governments on public finance management matters for efficient, effective and transparent financial management as well as planning, monitoring and evaluation; and,
    • Administer the Equalization Fund.
Last Update: November 15, 2021
November 15, 2021 182 adminTreasury
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