Why Finance Bill is not an Annual Constitutional requirement in Kenya

Protestors during Occupy Kisumu protest against finance bill 2024/25 that took part from Kondele Roundabout to Jaramogi Oginga Odinga sports ground in Kisumu City. [Michael Mute, Standard]

Last year, Kenya was rocked by fierce protests over the Finance Bill 2024, culminating in the dramatic storming of Parliament on June 25, 2024, where several lives were lost. The President, responding to the overwhelming public outcry, sent a memorandum back to Parliament proposing the deletion of all clauses in the Finance Bill. But lost in the chaos and heated debate is a critical constitutional point—whether Kenya is legally bound to pass a Finance Bill every year.

While the Public Finance Management (PFM) Act, 2012, provides for an annual Finance Bill, the Constitution itself contains no such obligation. The confusion arises from the intricate legal framework governing government finance. Article 221 of the Constitution mandates the annual submission and approval of budget estimates by the National Assembly, which are then incorporated into an Appropriation Bill. This Appropriation Bill, once passed, authourises the government to withdraw funds from the Consolidated Fund for expenditure. The Appropriation Act is essential; it gives legal force to the government’s spending plans. Without it, the government cannot lawfully access funds to operate.