Kenya risks losing millions of dollars in taxpayers money to mismanagement over loopholes in a proposed public finance law, experts have warned.
A group of civil society organisations have proposed amendments to Kenya’s new Public Financial Management Act, saying it should allow public participation in the budget processes.
According to the group, a new body created by the Act – County Budget and Economic Forum (CBEF) – could be used as a smokescreen to push the government’s agenda.
Under Kenya’s new devolved system, matters relating to budgeting, the economy, and financial management will be done at the county level and not national level.
All counties will be expected to prepare their plans — County Fiscal Strategy Paper, and the Budget Review and Outlook Paper — every year.
The devolved system, expected to dictate the preparation of the next budget, is distinct in the way it distributes power among the various arms of government, and in the establishment of an elaborate system of checks and balances to curb abuse of power by senior public officials.
But the group, which includes the International Budget Partnership, the Institute of Economic Affairs, Africog, National Taxpayers Association, Kenya Land Alliance, Muslims for Human Rights and Clarion, now wants the government to outline plans for direct public participation, as provided for in the constitution.
They also called for vetting of CBEF members, term limits, and open and transparent meetings, while suggesting how the Forum should function based on Kenya’s experience with other participatory processes.
They demanded that the CBEF release budget information and hold meetings at different points during the budget cycle to explain plans and budgets as well as get feedback on budget implementation from the public.
“In our view, the principal role of the CBEF should be to convene public consultations, rather than to represent the public. This body should not become simply an extension of the Governor’s power, but should be used to facilitate genuine citizen participation,” read a statement issued by the group.
They also want regulations governing the CBEF to guarantee that the body is professional, representative, and non-partisan. As it is, an ordinary citizen cannot sit on the forum unless he or she is nominated by an organised interest group.
The civil society organisations want all those nominated to be part of the CBEF to be vetted by a committee of the county assembly, and the vetting made public, and all nominees declare their assets.
In addition, CBEF members should only serve for one, non-renewable term of no more than five years.
They also want to safeguards established to prevent consultative forums from being taken over by any political group.
Further, they proposed a list of principles of public participation which they said should apply to matters of public finance.
By LILLIAN ONYANGO Special Correspondent
