Republic of Kenya : Country Financial Accountability Assessment
The CFAA had two key objectives, firstly to facilitate a common understanding by the Government of Kenya and development partners of the country's financial management arrangements in both the public and private sectors, identifying areas for...
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| Format: | Country Financial Accountability Assessment |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/11/2274995/kenya-country-financial-accountability-assessment http://hdl.handle.net/10986/14525 |
| Summary: | The CFAA had two key objectives, firstly
to facilitate a common understanding by the Government of
Kenya and development partners of the country's
financial management arrangements in both the public and
private sectors, identifying areas for improvement and
reaching agreement amongst key stakeholders on how to take
this forward. Secondly, to identify areas where
accountability arrangements need to be strengthened and the
risks that these may pose in relation to the use of public
funds. Kenya's system of financial management in the
public sector has some strengths, notably a sound code of
financial regulations, the existence of a core of skilled
top level managers, an updated budget framework, the
computerization of a number of financial accountability
functions as well as the powers and autonomy of the
Controller and Auditor General (C&AG) rooted in the
Constitution. In the private sector, the accountancy
profession is well established and the Government has
created an enabling environment for financial accountability
through a solid legal framework. Nevertheless, the fiduciary
risk in public spending is assessed as high. While a lack of
compliance with established financial and procurement
regulations have completely rendered many initiatives aimed
at strengthening the control environment ineffective, issues
of limited execution, inadequate monitoring, insufficient
capacity and lack of enforcement also need to be resolved.
The country's financial accountability framework, and
therefore financial management, would be considerably more
effective and the associated fiduciary risk mitigated, if
these areas were strengthened. Consequently, it is envisaged
that any kind of adjustment or programmatic lending in the
immediate future would have to go hand in hand with
significant improvements in public sector financial management. |
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