Public Finance Management: A Citizen’s Guide to Managing Public Resources

Public Finance Management (PFM) refers to the laws, regulations, and processes through which government plans, raises, spends, accounts for, and reports on public funds. Effective PFM helps ensure that taxpayers’ money is managed transparently, responsibly, and efficiently to support national and county development and the delivery of public services. The information pack introduces the key components of PFM, including budgeting, revenue collection, expenditure management, accounting and reporting, and auditing, as well as the legal framework provided by the Constitution of Kenya (2010) and the Public Finance Management Act (2012).

The pack also explains the PFM cycle, from budget formulation and approval to implementation, audit, oversight, and evaluation, highlighting opportunities for citizens to participate throughout the process. It covers important planning instruments such as the County Integrated Development Plan (CIDP), County Sectoral Plans, County Spatial Plans, and Cities and Urban Areas Plans. Citizens can strengthen public financial accountability through mechanisms such as Public Expenditure Tracking Surveys (PETS), community scorecards, citizen report cards, and public hearings, while also participating in budget consultations, monitoring government projects, collaborating with civil society organizations, and advocating for access to public financial information.