Part 6: Control of public money
Article 225: Financial Control
(1) An Act of Parliament shall provide for the establishment, functions and responsibilities of the national Treasury.
(2) Parliament shall enact legislation to ensure both expenditure control and transparency in all governments and establish mechanisms to ensure their implementation.
(3) Legislation under clause (2) may authorise the Cabinet Secretary responsible for finance to stop the transfer of funds to a State organ or any other public entity–
(a) only for a serious material breach or persistent material breaches of the measures established under that legislation; and
(b) subject to the requirements of clauses (4) to (7).
(4) A decision to stop the transfer of funds under clause (3) may not stop the transfer of more than fifty per cent of funds due to a county government.
(5) A decision to stop the transfer of funds as contemplated in clause (3)–
(a) shall not stop the transfer of funds for more than sixty days; and
(b) may be enforced immediately, but will lapse retrospectively unless, within thirty days after the date of the decision, Parliament approves it by resolution passed by both Houses.
(6) Parliament may renew a decision to stop the transfer of funds but for no more than sixty days at a time.
(7) Parliament may not approve or renew a decision to stop the transfer of funds unless–
(a) the Controller of Budget has presented a report on the matter to Parliament; and
(b) the public entity has been given an opportunity to answer the allegations against it, and to state its case, before the relevant parliamentary committee.
Article 226: Accounts and audits of public entities
(1) An Act of Parliament shall provide for–
(a) the keeping of financial records and the auditing of accounts of all governments and other public entities, and prescribe other measures for securing efficient and transparent fiscal management; and
(b) the designation of an accounting officer in every public entity at the national and county level of government.
(2) The accounting officer of a national public entity is accountable to the National Assembly for its financial management, and the accounting officer of a county public entity is accountable to the county assembly for its financial
(3) Subject to clause (4), the accounts of all governments and State organs shall be audited by the Auditor-General.
(4) The accounts of the office of the Auditor-General shall be audited and reported on by a professionally qualified accountant appointed by the National Assembly.
(5) If the holder of a public office, including a political office, directs or approves the use of public funds contrary to law or instructions, the person is liable for any loss arising from that use and shall make good the loss, whether the person remains the holder of the office or not.
Article 227: Procurement of public goods and services
(1) When a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and cost- effective.
(2) An Act of Parliament shall prescribe a framework within which policies relating to procurement and asset disposal shall be implemented and may provide for all or any of the following–
(a) categories of preference in the allocation of contracts;
(b) the protection or advancement of persons, categories of persons or groups previously disadvantaged by unfair competition or discrimination;
(c) sanctions against contractors that have not performed according to professionally regulated procedures, contractual agreements or legislation; and
(d) sanctions against persons who have defaulted on their tax obligations, or have been guilty of corrupt practices or serious violations of fair employment laws and practices.