PFMRS is an acronym for Public Financial Management Reforms Secretariat.
The mandate of PFMR Secretariat is to Coordinate and harmonize the public financial management reforms to strengthen public finance management systems in order to enhance effectiveness of the budget processes, to improve transparency and accountability and to ensure resources are used fairly to promote an equitable society.
Ensuring harmonization, prioritization and sequencing of reforms
Development of the Secretariat’s Institutional capacity
Development of the Programme’s Monitoring and Evaluation (M&E) Framework
Preparation of the Programme’s Quarterly and Annual Progress Reports
Development of the capacity of Implementing Agencies on M&E and reporting
Carrying out M&E missions on PFMR activities
Monitoring the implementation of the Programme’s training plan, programme vehicle assignment and utilization
Developing and sustaining capacity within the Ministry of Finance to ensure that it fulfills its lead role in the planning and implementation of the PFM Reform Programme
Development of a data base of all PFMR related reports
Updating the Programme Implementation plan
Consolidation of annual work plans and cost estimates submitted by Implementing Agencies for the purpose of preparing the Programmes’s annual budget
Coordination of the PFM Reform Budget with the National Budget
Preparation of quarterly allocation plans consistent with the Annual Work Plans and Cost Estimates as a basis for a draw down from the programme’s common fund
Provision of financial management services for the Programme including preparation of expenditure returns, Financial Monitoring Reports, Cash Flow Forecasts, processing of payments for goods and services rendered on behalf of the Implementing Agencies
Maintenance of the Programme’s Financial Management Information System
Exchequer requisition and disbursements on behalf of the Implementing Agencies
Maintenance of the Secretariat’s Payroll
Development and implementation of the Programme’s Communication Strategy and Implementation Plan
Implementation of the Programme’s Communication Strategy on behalf of the Agencies
Laying out and design of the Programme’s publications
Fundraising on behalf of the Agencies
Public Financial Management Reforms Strategy refers to a set of financial initiatives and alignments that are aimed at promoting transparency, accountability, fiscal discipline and efficiency in the management and use of public resources. It includes legal framework reforms, budgetary reforms, IFMIS reforms, financial reporting reforms and audit reforms.
The PFMRS secretariat partners with various donors in implementing a number of programmes.
- Governance for Enhancing service Delivery and Public Investments in Kenya (GESDEK) supported by the World Bank & the French Development Agency.
- The Public Accountability and Service Delivery in Kenya (PASEDE) supported by the European Union.
- Data Warehouse and Business Intelligence Project supported by Sweden Embassy
The Government of Kenya is the central player in the PFM reforms through the National Treasury. The Public Financial Management Reforms Secretariat, under the National Treasury, coordinates all reform initiatives. Under the PFM reform strategy 2018-2023, including the previous strategies, 2006-2011, 2013-2018, Ministries, Agencies and Government departments participate in multiple results teams where they have a role in the eight (8) distinct Results Areas. The Public Financial Management Reforms Secretariat also partners with development partners in implementing a number of programmes which attract budgetary support once Key Reform targets have been achieved.
The PFM reform implementation is implemented by various Ministries, Departments and Agencies.
The MDAs are:
- Accounting Services Department
- Budget Department
- Commission for Revenue Allocation
- Debt Policy, Strategy & Risk Management
- Debt Recording & Settlements Department
- Directorate of Schools Audit- MoE
- Government Digital Payments Unit
- Government Investment & Public Enterprises*
- ICT Unit National Treasury
- Inspectorate of State Corporations & SCAC
- Inter-Governmental Fiscal Relations
- Internal Audit Department*
- Kenya Institute of Supplies Management
- Kenya Revenue Authority*
- KHHRAC-Ministry of Health
- Macro-Fiscal Affairs Department
- National Assets & Liabilities Management
- Office of the Auditor General*
- Office of the Controller of Budget
- Pensions Department
- PFMR Secretariat
- Public Investment Management*
- Public Private Partnership Unit
- Public Procurement Department*
- Public Procurement Regulatory Authority
- Public Sector Accounting Standards Board
- Public Service Commission
- Public Service Performance Management & Monitoring Unit
- Resource Mobilization Department
- Salaries and Remuneration Commission
- SDPS-Ministry of Public Service, Youth, & Gender*
- State Department for Planning
- Teachers Service Commission
The Country has implemented three strategies from inception of PFMR reforms in 2006. The Strategies have been implemented across 5 years. Notably
- PFMR Strategy 2006-2011
- PFMR Strategy 2013-2018 (Activity Based)
- PFMR Strategy 2018-2023 (Results Based)
Notable reform milestones, among others, are as follows:
- Automation of Public Financial Management Processes through Integrated Financial Management System (IFMIS)
- Gazettement of the Public Procurement Assets Disposal (PPAD) Regulations 2020 to fully operationalize the PPAD Act 2015.
- Cabinet approval of the Public Procurement policy framework to complement the public procurement legal framework and provide a firm basis for future procurement reforms.
- Operationalization of the Kenya Institute of Supplies Examinations Board (KISEB).
- Development and the implementation of the Integrated Customs Management System (ICMS).
- Development of the Public Investment Guidelines and an economic project appraisal manual. The manual provides a clear guide on how projects in infrastructure and social sectors should be appraised.
- Adoption of E-Citizen platform as a tool for promoting open governance as Kenyans are able to access essential services without visiting government offices
- Adoption and application of International Public Sector Accounting Standards (IPSAS) has contributed to good corporate governance particularly in accountability of public funds.
The need for reforms in the public financial management sector in Kenya arose out of previous Challenges faced and gaps identified that lead to embezzlement of public funds, inequities arising in resource redistribution nationally and centralized systems of governance with inadequate checks and balances.
The PFM reforms in Kenya were aimed at making public financial management more efficient, effective, participatory and transparent resulting in improved accountability and better service delivery.
We have 8 Result Areas:
- Sustainable and predictable fiscal space to deliver government programs
- Strategic and transparent spending on public investment and service delivery in line with National and County Policy Commitments
- Reliable cash for service delivery and public investment
- Value for money in procurement and contract management (Procurement)
- Value for money, performance & accountability in staffing for service delivery (Consolidated Human Resource Data)
- Education institutions, health, and other service facilities effectively manage public resources;
- Disciplined financial management and accurate reporting; and
- Accountability delivered through audit, oversight, and follow up.
Public participation in public finance matters is guaranteed by the constitution and the PFM Act under sections 35(1) and 125 of the PFM Act which outlines the stages in the budget process at the national and county government levels. The budget making process has become a powerful route through which the members of the public can influence mobilization, allocation and prudent utilization of public money. Community needs are best captured through public participation in the identification, analysis and prioritization of development projects through participatory budgetary planning process.
The PFMR Secretariat undertakes a monitoring and evaluation exercise at both the national and county governments to monitor the progress of implementation of reforms against the set targets to be achieved. MDAs are required to also do reporting directly to the Secretariat once they achieve a reform target. In addition, MDAs are required after every quarter to develop a matrix report to the secretariat which is a key tool used to monitor PFM process.
GESDek stands for Governance for Enabling Service Delivery and Public Investment in Kenya.
It is a GoK/World Bank/French Development Agency(AFD) funded programme which started in 2017/18 and is expected to run for five years. The Programme is result based and its main focus is on Prioritized Public Investments, Reliable Funding for Service Delivery and Public Investments, Efficient and Transparent Procurement, Consolidated Staff Data, Timely and Quality Financial Statements and Audits and Strengthened Fiduciary Assurance and Transparency.
The Public Accountability and Service Delivery (PASEDE) Is a Programme which was signed between the Government of Kenya and the European Commission on 20th April 2020 .The general objective of this Programme is to promote macro-fiscal stability, service delivery and poverty alleviation in Kenya. The specific objectives include; improved financial transfers to counties, enhanced revenue mobilization, improved business environment and better public investment management practices. This is in line with the main strategic reforms’ objective and the successful implementation of the PFM reform strategy (2018-2023).
Kenya Devolution Support Programme (KDSP) is world bank funded programme which is designed to support the implementation of the National Capacity Building Framework (NCBF 2013) through the Ministry of Devolution and Planning.
The overall objective of the NCBF is to ensure the devolution process is smooth and seamless to safeguard the delivery of quality services to citizens. The programme is using Performance for Results (P for R) financing mechanism, which is an innovative financing mechanism that will support and incentivize county actions towards selected capacity building results.