About the Committee

Its primary purpose is to assist the Commission on Revenue Allocation (“the Commission”) in fulfilling its mandate of making recommendations on public financial management. The Terms of Reference outlines the objectives, composition, responsibilities and duties; authority and procedures of the Committee.  The Committee is part of CRA’s operational arrangement meant to enhance efficiency and division of labor.

The purpose of the Public Finance Management Committee (PFMC) is to help the Commission fulfil its financing, financial management and fiscal responsibility mandate:
1. To provide recommendations on the county plans, budgets and budget implementation.
2. To make recommendations on the management of recurrent expenditure by the county government.
3. To develop a framework for prudent financial management at the county level.
4. To promote adherence to the principles of fiscal responsibility throughout the PFM structures and processes.
5. To advice both levels of government on adoption and usage of ICT systems for prudent financial management.


The PFMC shall undertake the following:
1. To provide general direction on prudent financial management in the county governments.
2. To provide general  direction  on  fiscal  responsibility  in  the  both  the national and county governments.
3. To discuss, review  and  recommend  on  measures  to  manage  county recurrent spending.
4. Periodically make recommendations on county spending on non-core items.
5. Monitor adherence by counties on financial matters as per legislation and make recommendations where there is deviation.
6. Monitor adherence by  both  national  and  county  governments  to  the principles of fiscal responsibilities as outlined in PFMA 2012 section 15 and 107.
7. Discuss, review and make recommendations on changes to legislations pertaining to financial management in counties.
8. Discuss, review and make recommendation or give general direction on the financial reports submitted to the Commission by both the national and county governments. These include planning reports  like  county Integrated Development Plans (CIDP), County Fiscal Strategy Paper (CFSP) and Annual Development Plans (ADP). It also includes financial reports like the budgets, quarterly and annual financial reports and debt reports.
9. Recommend to the full Commission capacity building county executives on identified areas of weakness pertaining to financial management.
10. Recommend to  the  full  Commission  to  capacity  build  on  County Assemblies on identified areas of weakness on their oversight role in financial management.
11. Monitor and make recommendations on sustainable debt levels in the counties.
12.Support and make recommendations on counties to set up structures to enhance financial management in counties. For example County Budget Economic Forums, the Audit Committees among others

The Committee will consist of at least three (3) Commissioners among whom one will be appointed Chairperson by the Commission. The following, who may assist the Committee with its discussion on any particular matter may attend the meetings of the committee:
i. The Commission Secretary/Chief Executive Officer.
ii. Directors /Head of Departments where applicable.
iii. Any other person at the discretion of the PFMC.

Upcoming Activities


Ongoing Activities


Past Activities


CRA Makes Submission on Debt to Senate

The Commission made a presentation to the Senate on debt on Thursday 16th September in which it gave suggestions on how to mitigate the risk of debt distress. The Commission made the following observations and recommendations: 1. Kenya’s debt has increased from 49 % of GDP in 2013 to 68% of GDP in 2020. Kenya’s debt dynamics need to be understood in the context of fiscal deficits. The country has been financing expenditure through high fiscal deficits in excess of 6%. Rising debt mirrors the fiscal deficit. The current debt position reflects our cumulative fiscal policy stance (Fig 1). Parliament ...
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County Government Treasuries are required to obtain and consider the views of CRA before sending the County Fiscal Strategy Papers to the County Assembly on February 28th each year. However, during this reporting period, CFSPs submissions to the Commission were very low, with only seven counties (15% of the total) submitting by February 28, 2021. Four counties, accounting for 11% of the total, submitted their CFSPs after February 28, 2021, while 36 counties, accounting for 74%, have yet to send their CFSPs to the CRA. The Commission has reviewed and provided comments as required by the law to the respective ...
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How To Become a Member of a County Budget Economic Forum

What are County Budget and Economic Forums (CBEFS)? CBEFs are forums established in accordance with the Public Financial Management Act (PFMA) 2012 Section 137. Their main purpose is to provide a means of consultation by the county government on the preparation of county plans, the County Fiscal Strategy Paper, the Budget Review and Outlook Paper for the county, matters relating to budgeting, the economy, and financial management at the county level. How are they constituted? They are constituted as per PFMA 2012 section 137 (1). The CRA guidelines further clarify the establishment, nomination, composition, function, and consultative process. Who are ...
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Renewal of Creditworthiness for Counties

Preparation for renewal of the credit rating of Bungoma, Kisumu and Makueni counties is underway. The renewal of the ratings of these counties is due by March 2021. This process is part of the County Creditworthiness Initiative whose main objective is to as­sist County Governments access financing through the capital market for purposes of public infrastructure development and service de­livery. The first step towards accessing financing for counties is to enhance the creditworthiness of County Governments. Specifically, CCI aims to achieve the following outcomes: (i) a strengthened financial management system in the counties as may be necessary for market access; ...
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