Kenya: Fiscal Transparency Evaluation Update

IMF Staff Country Reports, January 15, 2020

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Kenya: Fiscal Transparency Evaluation Update

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Bibliographic details

• Published: January 15, 2020
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513526089.002

Summary

• This Fiscal Transparency Evaluation (FTE) assesses the quality of fiscal reporting in Kenya against the principles set out in the Fiscal Transparency Code.
• One key objective of this FTE is to estimate Kenya’s balance sheet, and to cover as many as possible of the entities in the public sector.
• Kenya has experienced a lot of structural and economic changes since 2014.
• The coverage of Kenya’s reporting of fiscal statistics has improved considerably.

Major findings

• Kenya continues to perform well in the overall transparency of its fiscal forecasting and budgeting practices (Pillar II of the Code), which is based on a strong legal framework.
• Significant ongoing reforms provide the backdrop for reporting and transparency changes, including:
  • far-reaching fiscal devolution to counties
  • the introduction of performance-based budgeting
• A recent important change in the law is expected to synchronize the submission and approval of the government’s spending proposals and the tax measures in the Finance Bill.
• The recommendations set out under each of the pillars of this report aim to address several challenges.
• The report encourages the authorities to continue with the implementation of the recommendations set out in the 2014 report, on which good or satisfactory progress has been made in about half the cases.

Policy recommendations and focus areas

• Implement recommendations under each pillar of the Fiscal Transparency Code to address identified challenges.
• Continue implementation of 2014 report recommendations, prioritizing those not yet completed.
• Strengthen legal and procedural arrangements to ensure synchronization of spending proposals and tax measures as per the recent legal change.
• Enhance coverage of fiscal statistics to include as many public sector entities as possible and improve balance sheet estimation.

Key statistics and metadata

• Publication date: January 15, 2020
• Pages: 73
• Volume: 2020
• Issue: 002
• Series: Country Report No. 2020/002
• DOI: https://doi.org/10.5089/9781513526089.002
• Stock No: 1KENEA2020001
• ISBN: 9781513526089
• ISSN: 1934-7685
• Subjects: Budget planning and preparation, Expenditure, Financial statements, Fiscal reporting, Fiscal risks, Public financial management (PFM)
• Keywords: adverse opinion, Africa, annual budget, balance sheet, budget documentation, Budget planning and preparation, CR, cross holdings, debt limit, feasibility study, financial asset, Financial statements, fiscal policy, Fiscal reporting, Fiscal risks, fiscal year, GDP deflator, gross revenue, insurance fund, ISCR, natural resource, quantitative analysis, tax expenditure

Source: IMF Staff Country Reports — "Kenya: Fiscal Transparency Evaluation Update", January 15, 2020.

Content in this bundle

• Kenya: Fiscal Transparency Evaluation Update; IMF Country Report No. 20/2; December 2019
  • Kenya: Fiscal Transparency Evaluation Update; IMF Country Report No. 20/2; December 2019 (Markdown version)
  • Kenya: Fiscal Transparency Evaluation Update; IMF Country Report No. 20/2; December 2019 (PDF)