How Does IFMIS Work in Kenya?

Integrated Financial Management Information System (IFMIS) is an automated system that enhances efficiency in planning, budgeting, procurement, expenditure management and reporting in the National and County Governments in Kenya.

Sound systems, strong legal and regulatory frameworks as well as a competent and productive civil service are the cornerstones of an efficient Public Finance Management (PFM) regime. Public Financial Management reforms have been identified as the key drivers to efficient public service delivery and creation of wealth and employment, ensuring that the Government and its Departments raise, manage, and spend public resources in an efficient and transparent way with the aim of improving service delivery.

Over the last decade the Government of Kenya has undertaken a number of PFM reforms aimed at enhancing accountability and transparency. These reforms have targeted the core PFM systems of budget formulation and execution, public procurement, revenue collection, internal and external audit, parliamentary oversight, Payroll and Pensions, Public debt and guarantees, Accounting and Reporting and the Macro-fiscal framework.

These initiatives have drawn support from Development Partners, including the World Bank, the European Commission, GIZ, DFID, SIDA, DANIDA, CIDA, USAID, JICA, and Norway that have worked closely with the Kenya Government in implementing them. The broad objective of these reforms is to strengthen PFM systems by enhancing transparency, accountability and responsiveness to public expenditure policy priorities.

The PFM reform is also instrumental in the fight against wasteful spending and corruption. Various studies show positive results and an improved performance by the public financial systems, although challenges still remain in key areas of the economy.

This calls for sustained implementation of the Government’s reform programs. One of the major reforms embarked on, is the automation of Public Financial Management processes. The introduction of the Integrated Financial Management system, Electronic Funds Transfer, the Pension system and the Public debt management systems among others, have been premised on the realization that GoK can effectively leverage existing and emerging technology to enhance the pace.

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