Establishment of External Resource Department in the National Treasury

Establishment of External Resource Department in the National Treasury

National Treasury

The National Treasury derives its mandate from the Constitution of Kenya, which provides for proper budgetary and expenditure management of government financial resources. In addition, Parliament, over the years has enacted over 50 Acts to which the National Treasury is a custodian thereby adding more responsibilities to the Ministry.

Vision: An institution of excellence in economic and public financial management
Mission:To promote economic transformation for shared growth through formulation, implementation and monitoring of prudent economic and financial policies at national and county levels of government.
Core Values: The National Treasury is committed to providing quality services to all and is guided by the following Core Values: Customer focus, Results Oriented, Stakeholder Participation, Professionalism, accountability, integrity and transparency, Teamwork and Staff as key asset and Equity, fairness and inclusion.

Role of the National Treasury in the Devolved System of Government

The National Treasury is mandated by law to:

  • Strengthen financial and fiscal relations between the National Government and County Governments and encourage support for county governments in performing their functions.
  • Assist county governments to develop their capacity for efficient, effective and transparent financial management
  • Prepare the annual Division of Revenue Bill and the County Allocation of Revenue Bill.
  • Provide logistical support to intergovernmental institutions overseeing intergovernmental fiscal relations
  • Coordinate the development and implementation of financial recovery plans for county governments that are in financial distress.
  • Coordinate capacity building of County Governments on public finance management matters

In order to effectively undertake its functions, the National Treasury has been restructured and is now organized into four (4) technical directorates to coordinate technical functions headed by Directors General and one (1) Administrative and Support Services directorate headed by a Principal Administrative Secretary. Each Director General is responsible for a directorate comprising a cluster of departments responsible for related policy functions. The functions of each Directorate are presented below.

External Resource Department [ERD]

The External Resources Department is situated within National Treasury. It is mandated to mobilize external resources for Government projects and programs. The department performs the above mandate under the provisions of the External Loans and Credits Act, Cap 422 of the laws of Kenya. ERD has a number of Units, including the ADB (African Development Bank) desk, in-charge of specific donors or group of donors.

Mission: Its mission is to ensure that External Resources are effectively sourced disbursed and effectively utilized.
Vision: The Department shares in the Ministry’s vision of enhanced and effective management of the economy through optimal maximization of External Resources to achieve improved welfare for all Kenyans.

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