Special Paper No. 18 of 2018 on Towards Strengthening Public Financial Management in County Governments in Kenya

Abstract

This report contains the findings of the sub-national Public Expenditure and Financial Accountability (PEFA) assessment carried out in six (6) counties in Kenya by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) in collaboration with the World Bank. The rationale of the assessment is to evaluate the county governments’ public Public Finance Managemment (PFM) systems, processes and institutions with a view to improving the outcomes of government transfers within the devolved units. The findings provide an entry point for PFM reforms with respect to enhancing capacities in planning, budget preparation and execution for effective delivery of services. Effective public financial management systems in the national and county governments are a key priority if aggregate fiscal discipline, strategic resource allocation, and efficient use of resources for service delivery are to be attained. There has been considerable effort towards establishing the foundations of a sound PFM system in many areas within the devolved system of government in Kenya. Although implementation of the PFM systems in the counties is still in its formative stages, considerable achievements have been made in many fronts.