The National Assembly

Role of the Public in the

Budget Process
FactSheet No.31

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FactSheet 31: Role of the Public in the Budget Process

Role of the Public in the Budget Process

FactSheet 31: Role of the Public in the Budget Process

Published by:
The Clerk of the National Assembly
Parliament Buildings
Parliament Road
P.O. Box 41842-00100
Nairobi, Kenya

Tel: +254 20 221291, 2848000

Email: [email protected]
www.parliament.go.ke

© The National Assembly of Kenya 2017

Compiled by:
The National Assembly Taskforce on Factsheets, Online Resources and Webcasting
of Proceedings

Design & Layout: National Council for Law Reporting

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FactSheet 31: Role of the Public in the Budget Process

Acknowledgements

This Factsheet on the Role of the Public in the Budget Process is part of the Kenya
National Assembly Factsheets Series that are supposed to enhance public understanding,
awareness and knowledge of the work of the Assembly and its operations. It is
intended to serve as easy guide for ready reference by Members of Parliament, staff
and the general public. The information contained here is not exhaustive and readers
are advised to refer to the original sources for further information.
This work is a product of concerted efforts of all the Directorates and Departments
of the National Assembly, and the Parliamentary Joint Services. Special thanks go to
the Members of the National Assembly Taskforce on Factsheets, Online Resources
and Webcasting of Proceedings, namely, Mr. Kipkemoi arap Kirui (Team Leader), Mr.
Emejen Lonyuko, Mr. Robert Nyaga, Mr. Denis Abisai, Mr. Stephen Mutungi, Mr.
Bonnie Mathooko, Maj. (Rtd.) Bernard Masinde, Mr. Enock Bosire, and Ms. Josephine
Karani. Special thanks also go to the very dedicated members of the Secretariat of the
Taskforce Mr. Salem Lorot (Head of the Secretariat), Mr. Samuel Kalama, Ms. Anne
Shibuko, Mr. Benson Inzofu, Mr. Finlay Muriuki, Ms. Doreen Karani, Mr. Charles
Atamba and Ms. Rabeca Munyao.

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FactSheet
31
Role of the Public in the Budget Process
1.0 Introduction
The public has a right to participate in the public finance matters of the Republic,
including budget making, as explicitly required in article 221 of the Constitution
of Kenya 2010 and through other fundamental provisions in the Constitution
such as those on people participation (Articles 10(2); 201; and 221).
Specifically, Article 221(5) mandates a committee of the National Assembly, in
discussing and reviewing the budget estimates, to “seek representations from
the public and the recommendations shall be taken into account when the
committee makes its recommendations to the National Assembly.”
These provisions further mirror the roles of the National Assembly under article
95 on representation of the people and solving matters of interest to the people.
This means that by consulting the public during budget review, Members of
the National Assembly are directly exercising their representation role. On the
other hand, members of public exercise their constitutional duty by making
representations on budgetary, economic and financial matters of their interest to
the Committee and further exercise their sovereignty.

2.0 Budgets and public hearings

The budget making process is a powerful route through which members of the
public can influence mobilization, allocation and prudent utilization of public
money. In this context, the budget is an instrument or a tool for allocating money
collected by the government either as taxes or borrowing to pay for planned
government activities. The budget therefore comprises of the government

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FactSheet 31: Role of the Public in the Budget Process

programs, activities for which public resources will be utilized to serve the public.
Thus, public representations on the budget can span expenditure priorities (for
example the need to build new schools), prudency and efficiency of spending
(views on how best to reduce wastage or misuse of public money and how that
can be addressed). Additionally, members of the public may also raise issues on
the financing side of the budget. Such views may include: proposals on taxation,
tax rates, whether to raise or reduce taxes; country’s debt levels; sustainability of
further borrowing among others.
Pursuant to article 118 and 201 of the Constitution of Kenya, 2010 Parliament
undertakes public hearings in selected places across the country to listen to and
receive the views of the public on budget matters including financial legislation.

3.0 How public hearings on the budget are conducted

Upon tabling of the estimates of revenue and expenditure of the national
government and those of the Parliamentary Service Commission and the Judiciary
by April 30th every year, the committees of the Assembly mandated to oversee
specific government departments and agencies immediately start reviewing the
budget. Simultaneously or after a couple of weeks, about early May of each
financial year, the Budget and Appropriations Committee prepares and invites
members of the public including individuals, groups or organizations to submit
their written representations on the budget either via post, email or in forums
conducted by the Committee across the country.
Budget and Appropriations Committee sends out the invitation to the public to
participate in budget public hearings with information of the venue and time of
the meetings through various media platforms such as newspaper and radio. The
Committee also hosts the meetings alongside local leaders. Members of the public
are allowed to present their views orally or in writing. These representations
by the public form a basis for further consideration by the Committee, which
includes taking into account the recommendations of the public in the report to
the House.
Since 2011, the National Assembly has endeavoured to incorporate and where
necessary, include the proposals from the public in the budget for appropriation
and implementation. In 2011 during the public hearings it was possible to identify
segments of society whose needs had been ignored, especially the people with
Albinism.

4.0 How proposals may be incorporated

Representation from the public span numerous topics including macroeconomic
matters such as inflation, interest rates and exchange rates, expenditure
matters, financing, and efficiency or wastage of public money. Whereas some
representations are specific or targeted, say, the need to construct a given road
in a specific region or county, other representations are broad and on general
policy issues. The Committee therefore faces the difficult task of sifting through
the proposals and identifying where there are gaps in provision of requested
services or measure and may recommend action, funding, or remedy to the issue

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or matter at hand. Where possible, a proposal is financed in collaboration with

the likely implementing agencies so as to ensure that the new project can be
implemented well. Specific policy proposals from the public, where there is no
other provision in the budget are often considered. Those of general or policy
nature are integrated in policy sections of the House recommendations to the
executive.

5.0 Appendix 1: Important budget timelines

Key date Activity Remarks

August 30 Issuance of the budget circular by the The circular sets off the budget process for
National Treasury for preparation of next the next financial year.
financial years’ budget.

October 21 Submission of the Budget Review and The paper provides review of previous
Outlook Paper to Parliament. budget and economic framework and the
macroeconomic and resource framework
for the next financial year. The National
Assembly through the Budget and
Appropriations Committee may study
the report but no particular action may be
taken.

December 31 Submission of the Auditor General’s report The constitution requires that the report be
on the finance and expenditure of public submitted six months after the end of the
funds allocated to national government financial year. The constitution requires
entities. that the National Assembly debates,
considers the report and takes necessary
action. The audit reports are submitted
to the Public Accounts Committee for
review and preparation of report and
recommendations for discussion by the
full House.

Sector Public Hearings

February 15 Submission of the Budget Policy The Budget Policy Statement, Medium
Statement, Medium Term Debt Strategy, Term Debt Strategy should be considered
and draft Division of Revenue Bill and and adopted by the House within 14 days.
County Allocation of Revenue Bills by the The Division of Revenue Bill should
National Treasury. be introduced in National Assembly by
March 10.

April 30 Submission of the annual estimates After tabling of the estimates, the
of revenue and expenditure of the estimates stand committed to the
national government, and estimates of departmental committees in line with their
Parliamentary Service Commission and respective mandates. The committees have
the Judiciary. 21 days to submit report to Budget and
Appropriations Committee. The Budget
and Appropriations Committee prepares a
report for approval of the estimates by the
House.

Mid-May Conduct of public hearings by the Budget Public representations on the budget are to
and Appropriations Committee be taken into account before the committee
tables the report on the estimates for
approval by the House.

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Mid-June Pronouncement of budget highlights and The Finance Bill and budget related bills
revenue raising measures by the Cabinet are introduced after the pronouncement on
Secretary responsible for Finance. the revenue raising measures.

Mid June - June 30 Approval of the Budget and The report of the Committee is
Appropriations Committee report on approved by the House, followed by the
the annual estimates, introduction and Appropriations Bill about mid-June. The
approval of the Appropriations Bill. House may approve a vote on account if
the Appropriations Bill is unlikely to be
assented to by the President before June
30.

June - September 30 Deadline for the approval of the Finance The Finance Bill should be approved
Bill. 90 days after the approval of the
Appropriations Bill. September 30

Source: Parliamentary Budget Office

References
• Constitution of Kenya, 2010
• Public Finance Management Act, 2012
• Budget Options, a Publication of the Parliamentary Budget Office

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