The Senate Committee on Finance and Budget convened today to review public participation submissions received concerning the proposed amendments to the Public Finance Management (PFM) Act.

The session centred around the PFM Amendment Bill, which aims to streamline budget processes and enhance fiscal discipline among County Governments.

Stakeholders who submitted their comments to the committee—among them the National Treasury, the Commission on Revenue Authority (CRA), the Council of Governors (CoG), County Assembly Forum (CAF) and the County Assembly of Makueni—agreed fully with the proposals of the bill that clearly defines the timelines for submitting and passing of the County Finance Bill.

During the meeting, the Committee noted that the amendment to Section 129 of the PFM Act requiring the County Finance Bill to be submitted alongside the Appropriation Bill and other budget documents will facilitate smoother budget implementation. 

The alignment according to the Committee will ensure that all budget and financial documents are coordinated, promoting balanced budgets and adherence to fiscal policies as outlined in PFM Act.

One of the primary issues the Bill addresses is the misalignment between budget submission timelines and the timing of revenue-raising measures, a legislative gap that has historically led to inefficiencies and fiscal uncertainties in planning and implementation. 

By correcting the discrepancy, the Bill would create a more synchronized fiscal framework, enabling both national and county governments to align their financial plans more effectively with the revenue strategies required to support them. 

The session was chaired by Vice Chairperson Senator Tabitha Mutinda, with Senators Boni Khalwale (Kakamega), Richard Onyonka (Kisii) and Mohamed Faki (Mombasa) in attendance.