M-Wakili

LN219 2022 - as Plain Text by MWakili

SPECIAL ISSUE 1563 Kenya Gazette Supplement No.

200 14th December, 2022 (Legislative Supplement No.

96) LEGAL NOTICE NO.

219 THE PUBLIC FINANCE MANAGEMENT ACT (No.

18 of 2012) IN EXERCISE of the powers conferred by section 24(4) of the Public Finance Management, 2012, the Cabinet Secretary for the National Treasury and Economic Planning makes the following Regulations THE PUBLIC FINANCE MANAGEMENT (NATIONAL PEACE SUPPORT OPERATIONS FUND) REGULATIONS, 2022 1.! These Regulations may be cited as the Public Finance Citation.

Management (National Peace Support Operations Fund) Regulations, 2022.

2.! In these Regulations, unless the context otherwise requires Interpretation.

Administrator of the Fund means the person designated as such under regulation 12 of these Regulations; Cabinet Secretary has the meaning assigned to it under section 2 of the Act; Contingent Owned Equipment means equipment and assets acquired by Government of Kenya for purpose of Peace Support Operations; Defence Council means the Defence Council established under Article 241(5) of the Constitution; Equipment Park means an area designated by the Defence Council for storage of Contingent Owned Equipment and assets; financial year means the period of twelve months ending on the 30th June in each year; force generation means a procedure in which required resources are mobilized with the necessary capabilities at the right scale and readiness for Peace Support Operations; force projection means ability to deploy forces for Peace Support Operations; Fund means the National Peace Support Operations Fund established under regulation 3 of these Regulations; "#$% Kenya Subsidiary Legislation, 2022 1564 Peace Support Operation (PSO) means peace keeping, enforcement or any other support operation mandated by international or regional agencies involving diplomatic, humanitarian organizations, civilian, military, police, and any other components deployed by the National Security Council outside the Country; and Public Sector Accounting Standards has the meaning assigned to it under section 2 of the Act.

3.! There is established a fund to be known as the National Establishment of Peace Support Operations Fund which shall operate under the the Fund.

budgeting, accounting, reporting and auditing framework of the Act.

4.! The initial capital of the Fund shall be seven billion shillings Capital of the as appropriated by the National Assembly as follows Fund.

(a)! one billion to be appropriated from the Exchequer; and (b)! six billion to be retained from PSO reimbursable.

5.! (1) The object and purpose of the Fund shall be to provide Object and funds to support the participation in Peace Support Operations (PSO) purpose.

by the Kenya Defence Forces, the National Police Service or any other organization in accordance with Article 240 (8)(a) of the Constitution.

(2) Without prejudice to the generality of paragraph (1) of this regulation, the Fund shall provide for (a)! financing the establishment of equipment parks as approved by the Defence Council for PSO; (b)! financing for acquisition and maintenance of Contingent Owned Equipment and other assets for PSO; (c)! financing enhancement of units to attain appropriate levels at the United Nations peacekeeping capability readiness system; (d)! funding of capacity building programme including training facilities and infrastructure development for the purpose of PSO; (e)! funding force generation and force projection activities; (f)! funding research, monitoring and evaluation of activities related to PSO; and (g)! funding and facilitation of any other activities in furtherance of PSO approved by the Defence Council.

6.! The Fund shall consist of Sources of funds.

(a)! moneys appropriated by the National Assembly for purposes of the Fund; (b)! moneys received as reimbursement from PSO for the Government provision of Contingent Owned Equipment, assets and services excluding personnel reimbursements (c)! grants, donations, bequests or other gifts made to the Fund; and ! Kenya Subsidiary Legislation, 2022 1565 (d)! moneys from any other source approved by the Cabinet Secretary.

7.! (1) There shall be paid out of the Fund moneys in respect of Payment out of any expenses incurred in pursuance of the object and purpose for which the Fund.

the Fund is established.

(2) The expenditure incurred on the Fund shall be on the basis of and limited to annual budget estimates approved by the Defence Council at the beginning of the financial year to which they relate.

(3) Any revision of the approved budget estimates shall be referred to the Defence Council and the Cabinet Secretary for approval.

8.! The earnings of, or accruals to the Fund shall be retained in Retention of the Fund, and shall be spent only for the objects and purposes for which receipts.

the Fund is established unless the Cabinet Secretary directs otherwise.

9.! (1) The funds shall only be released if Conditions for release of funds.

(a)! the release is approved by the Defence Council; and (b)! the release is to meet the expenses related to the objects and purpose of the Fund.

(2) The Defence Council may set out other conditions and requirements for release of funds, to ensure efficient and effective management of resources.

(3) Monies may additionally be released out of the Fund where such release (a)! relates to expenditures that did not form part of the approved budget for the financial year in accordance with provisions of the Act; and (b)! has been recommended by the Administrator of the Fund and submitted to the Defence Council for approval.

(4) For purposes of paragraph (3) of these regulations, a supplementary budget shall be prepared by the Administrator of the Fund and approved in accordance with the provisions of regulation 7, provided that the release under the supplementary budget complies with the requirements of these Regulations.

10.! The Fund shall be managed by the Defence Council Management of established under Article 241 (5) of the Constitution.

the Fund.

11.! The functions of the Defence Council shall be Functions of the Defence Council (a)! to formulate policies and guidelines for the regulation and management of the Fund; (b)! in liaison with other relevant government state departments and agencies, to continuously seek opportunities for participation in PSO by the Government of Kenya and determine the allocation of financial resources from the Fund as required; (c)! to approve annual estimates of revenue and expenditure for the Fund; ! "#$$ Kenya Subsidiary Legislation, 2022 1566 (d)! to ensure retention funds of the preceding financial year are revoted; (e)! to ensure that only the personnel, assets and services provided to PSO conform to the required standards and are earmarked for funding under these Regulations; (f)! to approve and review investment of surplus funds from the Fund; (g)! to advise the Cabinet Secretary on any additional sources of funds for the Fund; and (h)! to approve the financial statements and non-financial reports prepared by the Administrator of the Fund.

12.! (1) The Principal Secretary in the Ministry responsible for Administrator of matters relating to defence shall be the Administrator of the Fund.

the Fund.

(2) The Administrator of the Fund shall (a)! supervise and control the administration of the Fund; (b)! open and operate bank accounts at the Central Bank of Kenya into which all moneys raised under the Fund shall be paid; (c)! operate and maintain bank accounts in the manner as may be prescribed by the National Treasury from time to time; (d)! prepare, sign and transmit to the Auditor-General, in respect of each financial year and within three months after the end thereof, a statement of accounts relating to the Fund; (e)! establish proper systems of internal control and management in accordance with the provisions of the Act and these Regulations; (f)! advise and consult the Defence Council and Cabinet Secretary on matters relating to the administration of the Fund; (g)! keep proper books of accounts and other books and records relating to the Fund; (h)! be custodian of the Funds assets, equipment and properties under the Fund; (i)! prepare financial and non-financial performance report of the Fund and submit it to the Defence Council for approval; (j)! furnish additional information which is proper and sufficient for the purpose of examination and audit by the Auditor - General in accordance with the provisions of the Public No.

34 of 2015.

Audit Act, 2015; (k)! prepare quarterly reports on the receipts into and issues out of the Fund; and ! Kenya Subsidiary Legislation, 2022 1567 (l)! undertake any other duty as the Defence Council may assign.

(3) When discharging the functions under paragraph (2) of this regulation, the Administrator of the Fund shall (a)! comply with the ordinary budget cycle in the preparation of estimates for the Fund; and (b)! submit estimates of revenue and expenditure to the Cabinet st Secretary by the 31 January of the preceding financial year for approval.

13.! (1) There shall be a secretariat to be known as the National Secretariat Peace Support Operation Secretariat (NPSO) which shall provide support for secretariat support services to the operation of the Fund and shall be Administrator of headed by the Administrator of the Fund.

the Fund.

(2) The Secretariat shall consist of such staff as the Defence Council may consider necessary for the proper performance of the functions of the Fund under these Regulations.

14.! (1) The Administrator of the Fund shall cause an account in Bank Account of the name of the Fund to be maintained at the Central Bank of Kenya in the Fund.

line with section 28 of the Act and any Regulations made thereunder.

(2) All money payable into the Fund shall be received into the bank account of the Fund.

(3) The Funds account shall be operated by the Administrator of the Fund and two other persons designated by the Defence Council from the Funds Secretariat.

(4) The Administrator of the Fund may open and maintain other accounts in furtherance of the objective of the Fund.

15.! The Administrator of the Fund shall ensure the accounts of Overdrawn the Fund are not overdrawn.

accounts.

16.! (1) If, in exceptional circumstances, the income from the Advances.

Fund together with any surplus income brought forward from a previous year is insufficient to meet the actual or estimated liabilities of the Fund, the Cabinet Secretary to the National Treasury may, with the approval of National Assembly, may make advances to the Fund and such advances shall be made on such terms and conditions, whether as to repayment or otherwise, as the Cabinet Secretary may determine, but any such advance shall be repaid from the income of the Fund.

(2) The Defence Council shall ensure that in any financial year expenditure and commitments from the Fund shall not exceed the annual income of the Fund together with any surplus income brought forward from a previous year.

17.! The Defence Council may with the consent of the Cabinet Investments of the Secretary to the National Treasury invest any of the surplus funds in funds.

Government securities.

18.! (1) The Cabinet Secretary shall at the lapse of ten years from Review of the date of commencement of these Regulations cause a review to be performance of the Fund.

! "#$& Kenya Subsidiary Legislation, 2022 1568 conducted on the performance of the Fund in accordance with the requirements of the Act and Regulations thereunder.

(2)! The review shall determine whether the Fund has met the objectives for which it was established.

(3)! The report on the review shall be submitted to the Cabinet and the National Assembly for approval.

19.! (1) At least six months before the commencement of each Annual estimates.

financial year, the Administrator of the Fund shall cause to be prepared estimates of the revenue and expenditure of the fund for that year.

(2) The annual estimates shall make provision for all estimated revenue and expenditure from the Fund for the financial year and in particular, the estimates shall provide for (a)! revenue projected to be received by the Fund from the sources of funds provided for under these Regulations; (b)! expenses in furtherance of the objects and purpose of the Fund; (c)! moneys for the administration expenses of the Fund including (i)! the payment of salaries, allowances and other charges in respect of the secretariat staff, where applicable; (ii)! the payment of pensions, gratuities and other charges in respect of the staff Fund, where applicable; and (iii)! the proper maintenance of the office assets, equipment and properties under the Fund.

(3) The annual estimates shall be approved by the Defence Council before the commencement of the financial year to which they relate.

20.! (1) The Administrator of the Fund shall prepare quarterly Quarterly reports.

financial and non-financial reports in accordance with the format prescribed by the Public Sector Accounting Standards Board for approval.

(2) Upon approval, under paragraph (1), the Administrator of the Fund shall submit the report to the National Treasury.

21.! (1) The Administrator shall cause to be kept all proper books Accounts and and records of account of the income, expenditure, assets, equipment audit.

and properties of the Fund.

(2) Within a period of three months from the end of each financial year, the Administrator shall submit to the Auditor-General with a copy to the National Treasury, Controller of Budget and the Commission for Revenue Allocation the accounts of the Fund together with (a)! a statement of the income and expenditure of the Fund during the financial year; and ! Kenya Subsidiary Legislation, 2022 1569 (b)! a statement of the assets and liabilities of the Fund on the last day of that financial year.

(3)! The accounts of the Fund shall be audited and reported upon in accordance with the Public Audit Act, 2015.

22.! The administrative expenses of the Fund shall not exceed Administration three per centum of the approved budget of each financial year.

expenses.

23.! A person who misappropriates any funds or assets from the Offences and Fund, or assists or causes any person to misappropriate or apply the penalties.

funds otherwise than in the manner provided in these Regulations, commits an offence and shall, upon conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding two million shillings or to both.

24.! (1) On winding up of the Fund in accordance with the Act Effects of winding and Regulations made thereunder - - up of the Fund.

(a)! the Administrator of the Fund shall compile any valid outstanding obligations and commitments for payment; (b)! the Administrator of the Fund shall pay any amount remaining in the Fund into the National Exchequer Account for the credit of the national government; (c)! the Cabinet Secretary shall pay any deficit in the Fund from the funds of the national government in the National Exchequer Account with the approval of the National Assembly; and (d)! assets, equipment and properties other than cash of the Fund shall be transferred to the Ministry for the time being responsible for matters relating to defence.

(2)! Within three months upon the decision to wind up the Fund, the administrator of the Fund shall prepare final financial and non- financial statements of the Fund and submit them to the Defence Council for approval.

(3)! Upon approval under paragraph (2), the administrator shall submit the final financial and non-financial statements to the Cabinet Secretary.

(4)! The Cabinet Secretary shall submit a final statement of accounts to Parliament and to the Auditor-General for audit within three months from the date of the decision to wind up the Fund.

25.! The Public Finance Management (National Peace Support Revocation of LN.

Operations Fund) Regulations, 2022, are revoked.

No.

151/2022.

Made on the 10th December, 2022.

NJUNGUNA NDUNGU, Cabinet Secretary for The National Treasury and Economic Planning.

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI !.

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