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The Intergovernmental Budget and Economic Council (IBEC) in Kenya

The Intergovernmental Budget and Economic Council (IBEC) is established under Section 187 of the Public Finance Management Act (2012).

The council is comprised of:

  • the Deputy President who shall be the Chairperson;
  • the Cabinet Cabinet Secretary responsible for matters relating to finance;
  • a representative of the Parliamentary Service Commission;
  • a representative of the Judicial Service Commission;
  • the Chairperson of the Commission on Revenue Allocation or a person designated by the Chairperson;
  • the Chairperson of the Council of County Governors;
  • every County Executive Committee member for finance; and
  • the Cabinet Secretary responsible for intergovernmental relations (currently the devolution ministry).

Role of the Intergovernmental Budget and Economic Council (IBEC)

The purpose of the Council is to provide a forum for consultation and cooperation between the national government and county governments on—

  • the contents of the Budget Policy Statement, the Budget Review and Outlook Paper and the Medium-Term Debt Management Strategy;
  • matters relating to budgeting, the economy and financial management and integrated development at the national and county level;
  • matters relating to borrowing and the framework for national government loan guarantees, criteria for guarantees and eligibility for guarantees;
  • agree on the schedule for the disbursement of available cash from the Consolidated Fund on the basis of cash flow projections;
  • any proposed legislation or policy which has a financial implication for the counties, or for any specific county or counties;
  • any proposed regulations to the Public Finance Management (PFM) Act; and
  • recommendations on the equitable distribution of revenue between the national and county governments and amongst the county governments as provided in section 190 of the PFM Act; and
  • any other matter which the Deputy President in consultation with other Council members may decide.

Other Provisions

An appointed member of the Intergovernmental Budget and Economic Council (IBEC) holds office for two years. He or she is eligible for re-nomination and reappointment for another term not exceeding two years.

The National Treasury should provide secretariat services to the Council. It should assign or appoint such support staff as may be necessary for the Council to effectively perform its functions.

The Council should meet at least twice a year. The Deputy President shall decide the time and agenda for meetings of the Council in consultation with the other members of the Council.

In the absence of the Chairperson from any meeting of the Council, the Cabinet Secretary responsible for finance shall chair the meeting.

The Intergovernmental Budget and Economic Council (IBEC) may determine its own rules and procedures in such a manner as it considers appropriate.

The Council may invite other persons to attend any of its meetings.

A member of the Intergovernmental Budget and Economic Council shall cease to be a member if that person ceases to hold office by virtue of which he or she became a member of the Council.

Written by George Githinji

Githinji is passionate about devolved governance, public finance and cycling. He comments on topical socio-political issues in Kenya. In addition, he manages the @UgatuziKenya platform.

Follow Me → @EpiQKenyan

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