PUBLIC PARTICIPATION IN THE BUDGET PROCESS: WHEN, HOW AND WHY?

The Budget is the primary management tool used by governments and thus it is the most
reasonable point in focusing our effort on improving development outcomes. The quality
and nature of governance, therefore, plays a very crucial function in the achievement of the
anticipated outcomes.

Prior to the promulgation of the Kenyan Constitution in 2010, public participation in the
budget making process was a mere fallacy, despite being a fundamental provision in the
constitution of Kenya. Currently our public participation mechanisms are closely aligned
with the formulation and execution cycle of the annual budget and the Medium Term
Expenditure Framework (MTEF). The Annual budget and MTEF cycle begins in August when
the National Treasury or County Treasury issues a circular giving direction on the budget
process. The circular contains key dates for the budget process, procedures and key policy
areas to be considered among other provisions.

Some of the key deadlines and dates in the budget process include;

September 1 - County Development Plans tabled at the County Assemblies
January 1 - The Commission on Revenue Allocation submits recommendation on the
Division of Revenue between the National and County Government
February 15 - National Treasury submits the Budget Policy Statement to the National
Assembly
February 28 - The National Assembly approves the Budget Policy Statement
February 28 - County Treasuries submit the County Fiscal Strategy Paper to the
County Assemblies
March 15 - County Fiscal Strategy Paper (CFSP) approved by the County Assemblies
April 30 - National Assembly receives the Executive Budget Proposal
June 30 - National Assembly or County Assembly should have approved the
Executive Budget proposal with or without amendments
December 31 - The Auditor General releases the audit report on all government
expenditure in the preceding financial year.

All these dates present an opportunity for public engagement with the budget making
process. Instances like County Development Plans allow for the public to be consulted so
that they can provide feedback on the priority areas that need to be focused on in the
coming financial year. The County Fiscal Strategy Paper requires that the County Assembly
discuss and deliberate on what the executive is proposing as the county priorities. This
presents an opportunity for participation by the public in identifying key areas that need to
be prioritized during the preparation of the Executive Budget Proposal.

The Public Finance Management Act, 2012 article 35(2) and 125(2) requires that officers
responsible for finance at both the National and County level treasuries should facilitate the
participation of citizens in the budget making process. This translates to these bodies, in a
timely manner, communicating to the public when the process is starting, what is expected
and to provide feedback to the citizens indicating to them what happened with the opinion
they gave. Article 137(1) also mandates the County Governments to establish County
Budget and Economic Forums (CBEF) in their respective counties. This is supposed to
provide means for consultation by the County Government on preparation of county plans
and matters related to county budgeting. The establishment of the CBEF is a clear way of
enshrining public participation. However, it is unfortunate that despite the formation of
CBEFs in some of the counties, they themselves are not aware of what they are supposed to
do and when they will start doing it.

As a citizen interested in the amount of money your County or the National government
must raise from property rates, fees and taxes, it is important to attend the public budget
hearings at the county or sub county level. These are being conducted by the various
County Assembly Committees between April 30 and June 30
th
when the County Assemblies
are required, by law, to approve the Budget Estimates presented by the County Executive.
During these public meetings the members of the County Assembly Committee will listen to
your opinion on what the county priorities are. These priorities should be in line with the
CFSP, which is a document tabled at the County Assembly according to the provisions of the
Public Finance Management Act, 2012. The CFSP is a document that provides the county
financial outlook with respect to county government revenues, expenditures and borrowing
for the coming financial year and over the medium term.

As documented by the International Budget Partnership, the importance of public
participation in the budget process was exhibited in the FY 2012/13 by the National
Assembly Budget and Appropriations Committee when it considered eighteen projects for
funding in the financial year 2012/13. Some of the development projects considered
included; Improvement of Mbita Causeway (bridge), funding to the Child Welfare Society of
Kenya, Improvement of Kipkabus technical training college in Uasin Gishu and
Rehabilitation of Kisii Childrens Home. This clearly shows that public participation has an
effect in determining resource allocations.

Finally it is important to note that by incorporating public participation mechanisms in all
stages of the budget process, high levels of credibility and ownership are achieved, from the
potato farmer in Kinangop to the National Treasury.

For more information please contact:

James Muraguri
Public Finance Management Consultant
jmuraguri@geiafrica.org
@geiafrica