The National Treasury will send project funds directly to designated bank accounts if Parliament approves a proposed law.
Thank you for reading this post, don't forget to subscribe!The Public Finance Management (Amendment) Bill, 2025 seeks to amend Section 83 of the PFM Act to ensure mandatory exclusive accounts for project implementation.
The bill, sponsored by Rongo MP Paul Abuor, proposes that the Controller of Budget be mandated to monitor all funds disbursed to project-specific accounts.
The CoB would submit quarterly compliance reports from ministries, departments, and agencies.
Direct Fund Transfers
MP Abuor emphasized that the new provisions align with existing constitutional requirements.
“The Bill provides that funds disbursed by the National Treasury for approved projects in the annual budget must be deposited into designated project-specific bank accounts,” Abuor stated.
He noted this responsibility falls within the Controller of Budget’s existing functions and would not result in additional public expenditure.
The legislation aims to enhance accountability in project implementation by creating clear financial pathways. All funds approved through the annual budget would follow this dedicated channel, reducing the risk of diversion or misuse.
Mandatory Training Program
The bill addresses significant capacity gaps in project account management. While current law provides for general training, it doesn’t mandate specialized instruction for managing project-specific accounts.
Abuor explained the current limitations.
“The Act only provides for general training and does not impose an explicit legal obligation on the Treasury to conduct regular or mandatory training on specialised areas such as the management of project-specific bank accounts,” he told Parliament.
The Parliamentary Budget Office estimates implementing the bill will cost Sh528.7 million in the first year. The training program would cover 87 votes, 84 special funds, 432 semi-autonomous agencies, and 337 decentralized funds.
Training costs are estimated at Sh100,000 per Authority to Incur Expenditure holder annually. The specialized instruction aims to ensure proper management of project accounts and improve overall public financial management.
