Budget Process: The ball is already rolling for big decisions in the 2024/2025 financial year
The budget-making process is an ongoing exercise characterised by strict timelines mandated by the Constitution and the Public Finance Management Act, 2012. The National Treasury on August 18, 2023, launched the preparation of the FY 2024/25 and the medium term budget through the formation of Sector Working Groups (SWGs). SWGs are responsible for fast-tracking scheduled budget activities by the Ministries, Departments and Agencies (MDAs).
SWGs comprise of the following members;
- Chairperson – Principal Secretary/Accounting Officer elected by other accounting officers in
the SWG.
- Sector Convenor- (already) appointed by the National Treasury.
- Sector Co-Convenor – (already) appointed by the State Department for Economic Planning.
- Technical Working Group – appointed by individual MDAs.
- SWG Secretariat – appointed by the individual Principal Secretaries/Accounting Officers to assist the Chairperson in coordinating the activities of the SWG.
- Representatives from Development Partners – co-opted.
- Civil Society and Community Based Organisations to represent the public in line with Article 201 of the Constitution– co-opted.
- Representatives from the Private Sector – co-opted.
The MDAs reviewed and updated their strategic plans last month which are guided by the Medium-Term Plan (MTP) IV (2023-2027). In turn, the MTP IV is informed by the Vision 2030, Bottom-Up Economic Transformation Agenda (BETA), the United Nations 2030 Agenda and Africa Agenda 2063. Particularly, MTP IV is aligned with the BETA approach which seeks to realize the Kenya Kwanza manifesto on economic transformation through enhanced value chain.
Timelines for FY 2023/2024 Budget Cycle
| Activity | MDAs to submit their budget baseline | MDAs are required to immediately nominate the Technical Working Group for the Sector
process. |
Submission of Programme Performance Review Reports to the National Treasury | Preparation of Budget Review and Outlook Paper | Preparation of MTEF Sector Budget Proposals | Finalize the preparation and submit the draft Sector Budget Proposals to the National
Treasury |
SWGs hold Public Sector Hearings | Submission of the final Sector Budget Proposals to the National Treasury | Develop Draft Budget Policy Statement (BPS) | Submission of Budget Policy Statement to Parliament | Approval of Budget Policy Statement | Issue of Guidelines on Finalization of Ministerial Budgets | Consolidation of Draft Budget Estimates | Submission of Draft Budget Estimates to Parliament | Budget Statement | Approval of Appropriation Bill |
| Date | 5th September 2023. | 31st
August 2023. |
30th September 2023.
▲ |
22nd October to 18 th November 2023. | 24th November 2023. | 27th to 29 th November 2023. | 6th December
2023. |
15th December 2023. | 15th February 2024. | 28th February 2024. | 5th March 2024. | 12th April 2024 | 29th April 2024. | 13th June 2024. | 30th June 2024. |
Current Phase
We are currently in an overlap stage of the budget preparation process where MDAs review the performance of the previous budget for FY 2023/2024 and prepare estimates of how the budget for FY 2024/2025 will be. This results in the Budget Review and Outlook Paper (BROP) which will be ready in September.
Vellum will be closely monitoring the budget in the coming year with a rich analysis of information at each stage of the process.