Frequently Asked Questions
FAQs – THE NATIONAL TREASURY & PLANNING
1. What is the National Treasury?
The Ministry of National Treasury and Planning was established following the reorganization of Government on 14th January 2020 through Executive Order No. 1 of 2020. The Ministry is made up of the National Treasury and the State Department for Planning.
2. Which are the functions of the National Treasury?
The functions of the National Treasury include:
Overall Economic Policy Management, Management of Public Finance, Formulation of National Budget., Public Debt Management, Formulation and Maintenance of Government Accounting Standards, Bilateral and Multi-Lateral Financial Relations, Capital Markets Policy, Oversight over Revenue Collection as Prescribed under all Written Laws, Competition Policy Management, National Pensions Policy Management and Insurance Policy and Regulation….read more Link..www.treasury.go.ke
3. Which are the services provided by the Ministry?
Services provided by the Ministry include: Motor Car Loan, Access to Government Procurement Opportunities (AGPO) Registration for Persons with Disabilities, Women & Youth, IFMIS, Pension Management and, Tenders. …..Link..www.treasury.go.ke
4. How is the National Budget prepared?
Preparation of the National Budget is a process which involves several players. In summary, the steps involved include:
- Formulation of budget estimates by the Executive. Planning and preparation takes place at this stage, which involves the Executive arms of both national and county governments. The public is involved at this stage through public participation.
- Debate and approval by the National and County government by the Legislature. Parliament (national level) and County Assemblies (county level) are in charge of this stage. .Link..www.treasury.go.ke
- Implementation of the approved budget. The National Treasury is in charge of the implementation stage.
- Monitoring & Evaluation by the Office of the Auditor General, which reviews and reports on the accounts of both national and county governments. Read more…Link to Budget
5. How is Pension administered for Civil Servants in Kenya?
The Pensions Act (Cap.189), the main Act, makes provisions for the granting and regulating the payment of pensions, gratuities and other allowances in respect of the public service for officers under the Government of Kenya.
Civil Servants or their dependents may be paid, on leaving the service of the Government and on fulfilling certain conditions, one or more of the following benefits.
• Commuted pension gratuity (lump sum) plus monthly pension
• Service gratuity
• Marriage gratuity
• Compassionate gratuity
• Death gratuity
• Annual allowance
• Injury pension
• Dependents’ Pension
• Widows and Children’s Pension
• Killed on Duty Pension. Link .Link..www.treasury.go.ke
6. What are the requirements for registration of an IFMIS account?
a. Applicant’s first name and last name
b. Company’s phone number
Original scans of:
c. National ID card or passport.
d. Certificate of Incorporation or Business Registration Certificate.
e. A Partnership Deed if you are running a partnership business.
f. CR12 if you are running a Limited Company.
g. A tax compliance certificate Letter from the National Construction
Authority (NCA)….Link IFMIS
7. Who are the development partners for PFMR Secretariat?
The key Development Partners who support the strategy implementation included World Bank, AFD,), Embassy of Sweden, Embassy of Denmark (Danida), USAID. Canadian Development International Agency (CIDA and European Union…Link PFMR
8. Why does the Government of Kenya incur Public Debt? What is the current debt status of the country?
(a) All borrowings are done through the Cabinet Secretary, and are for the following purposes:
a) Financing government budget deficits;
b) Honoring obligations under national government guarantees;
c) Refinancing and pre-financing existing debts;
d) For cash management;
e) To finance development projects including on-lending to approved entities;
As of the end of June 2020, Kenya’s total debt stock stood at 6.7 trillion Kenyan shillings ($62 billion), equivalent to about 66 per cent of our total national wealth, as estimated by the gross domestic product (GDP). ….Link..www.treasury.go.ke
9. What is the role of the National Treasury in the devolved system of Government? The National Treasury is mandated by law to:
• Strengthen financial and fiscal relations between the National Government and County Governments and encourage support for county governments in performing their functions.
• Assist county governments to develop their capacity for efficient, effective and transparent financial management.
• Prepare the annual Division of Revenue Bill and the County Allocation of Revenue Bill…..Link..www.treasury.go.ke