Investor Presentaiton
Kenya overhauled its budget execution policies to improve monitoring and
transparency
Kenya
חיווי
Context
The National Treasury
Poor budget execution hindered the country's
ability to achieve its objectives
Large difference between commitments and
disbursements on projects
Difficulty tracking budget execution across
projects and agencies
Misuse and misallocation of funds were common
occurrences
What did Kenya do?
Introduced dedicated budget execution oversight
Introduced the Office of the Controller of Budget, an independent
institution tasked with overseeing the execution of budgets at the national
and county levels
The office supervises revenue collection and approves any withdrawal
from public funds
Shifted to a single treasury account, which helped streamline
revenues/withdrawals and simplified monitoring
Deployed new financial management tools
Introduced a new integrated public financial management platform, which
is able to track budget execution in-real time across government entities
- The platform was designed to handle project-per-project budget
execution, allowing more detailed tracking
Source: Press Search; BCG Analysis
Key successes
Strengthened budget monitoring
The office of the controller is able to track and block disbursements to:
Entities that are underperforming or have high debt levels
Entities that misuse or misallocate funds
Gained the ability to compare between projects and entities in a
standardized format to measure the effectiveness of budget execution
Improved transparency
Budget reporting has become easier to prepare and publish, allowing
better disclosure to parliament and to the public
Learnings for Plateau State
Create dedicated budget execution monitoring entities
Allows close monitoring of budget collection and disbursements
• Able to track and stop the misuse or the poor-use of public funds
Standardize and streamline financial management processes & procedures
Standardization allows easier comparison between different entities and
projects, which can improve the region's ability to track performance
Simplifies financial reporting to oversight entities
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