Public Finance Management

Manual Highlights

Category: A training Manual
» 4 weeks     » 4-6 hours of work / week    » 6:00pm - 8:00pm


This manual on Public Finance Management (PFM) has been prepared with the support and generous contribution of many individuals and organisations. We immensely appreciate the generous financial support of the Ford Foundation; State University of New York (SUNY) Kenya; Westminster Foundation for Democracy (WFD) and UN Women. The involvement of these organisations is a clear demonstration of their strong commitment to capacity building for the legislatures in Kenya and the region. My sincere appreciation goes to the Resident Representatives of these organisations Mr Maurice MakOloo, Mr Francis Aywa, Ms Hope Muli and Mrs Zabib Kavuma respectively.

About this Manual

Public Finance is the fuel that drives a country. Its management is thus of great importance. The Constitution of Kenya provides a key place to PFM as a critical driver for the governance of Kenya. PFM provides a means to achieve the commitments the Kenyan people have made through the constitution and subsidiary legislation. Parliament (National Assembly and Senate) and the County Assemblies have a central role in PFM. Unlike in the past where the legislature was more involved in approving and oversight of the budget, the current framework has a central role for them in budget formulation and scrutiny. This is in line with its role of representation, legislation and oversight. It thus is critical for there to be a greater focus on ensuring that the legislators and the staff working with them have an in-depth understanding of PFM and implications thereon.


Legislature and Public Finance Management:

Course Duration: 22 Hours

For promoting good governance and fiscal transparency, the legislature’s active engagement in PFM is essential. When fiscal policies and medium term budgetary objectives are debated in the legislature, budget strategies and priorities are owned more widely. Traditionally, the role of the legislature in the budget process has been to review and debate the executive’s draft budget (including its revenue estimates and spending plans) and to authorise spending to implement the annual budget plan. Legislatures also review budget execution and in Kenya, they have now taken on much added responsibilities in this process. This course aims at equipping the participants with the nature of Kenya’s enhanced role and centrality of the legislature in the budget process as espoused in the Constitution and the PFMA both at the national and county governments.

This unit is specifically designed for Members of Parliament, Senators and Members of County Assembly and their staff who are responsible for matters of public finance in their respective houses.

The constitution specifies the role of the legislature and its relationship with the executive in matters PFM. Constitutions and budget laws elaborate on the budgetary roles and powers of the legislature. Legal constraints and budget practices vary greatly from country to country and moreover, in many countries such as Kenya, the legislature is increasingly playing a prominent role in budget matters.

Public Procurement:

Duration: 14 Hours

The module focuses on the tools such as the expectations of government procurement policy to ensure trade agreements are met as efficiently as possible; the risks to the general public from inappropriate procurement practices and decisions are minimised; and the right goods and services are acquired with the best value for money and made available at the right place in a timely manner. The Procurement module aims at helping all participants in public procurement to comply with the legal and regulatory framework comprising of the Procurement Law, Regulations, this Module, Standard Bidding Documents and all circulars issued by the Public Procurement Oversight Authority (PPOA). While not specifically designed to serve as a training manual, a number of pedagogical considerations were taken into account in its design, and so it should also serve as a useful tool for learning about Kenya’s Public Procurement systems and procedures. The consistent and diligent application of the guidelines and principles presented in this Manual should substantially curb both the perception and the actual occurrence of corruption in public procurement in Kenya. Further, it will increase the confidence that potential as well as active vendors have in the execution of procurement procedures. As a consequence of which will lead to a wider participation in tenders with subsequent improvements in the effectiveness of competition. The upshot of which will be a substantial positive impact on the achievement of value for money and on the overall PFM objectives of fiscal discipline and on the efficient delivery of service.

This training module has been designed to guide Members of Parliament (National Assembly and Senate) and Members of County Assembly in engaging with the government’s procurement processes. This is because Parliament and County Assembly have an integral role of ensuring that procurement of public goods and services is done in a way that is cost efficient and of integrity. This they do as part of their oversight role.

Basics of Fiscal Analysis:

Duration: 8 Hours

The Constitution of Kenya places considerable obligation on PFM on the legislatures at the national and county level. Both the national assembly and the county assemblies have to approve all expenditure decisions that their respective executives implement besides providing oversight on how resources are utilised. To carry out this mandate effectively both assemblies require competent fiscal analysis skills and support. This entails research, analysis and communication of findings in a way that aids the members of parliament and members of county assemblies make proper decisions.

This course aims to provide basic skills on fiscal analysis for members of parliament and county assemblies but more specifically for their technical staff to be able to competently engage in their work. The key question is: What fiscal analysis competency does a member of parliament and county assembly and their staff needs to be able to effectively carry out their mandates?

CPST stands for?

Centre for Parliamentary Studies and Training