The Kenyan Senate has passed a bill aimed at restricting how much counties can project in revenue, following missed financial targets. The legislation, which amends Section 107(2) of the Public Finance Management Act, seeks to ensure counties do not set revenue estimates higher than the national proposal.
The bill was introduced to address discrepancies between county revenue projections and actual performance. Officials noted that some counties had consistently overestimated their income, leading to budgetary imbalances. The amendment requires counties to base their revenue forecasts on realistic assessments, aligning with national financial planning.
This legislative move follows years of debate over fiscal responsibility and transparency in local governance. Previous attempts to regulate county budgets faced resistance from local leaders who argued the measures could limit economic growth. The new law is expected to enhance accountability and reduce financial mismanagement.
The bill reflects broader efforts to improve public finance management across Kenya. It comes amid calls for greater oversight of local government finances and a push for more accurate budgeting practices. The law will now be sent to the House of Representatives for approval.
