Kenya Act or statute

Parliament of Kenya

Public Audit Act

This Act may be cited as the Public Audit Act. Defines "an Accounting Officer of the Office of the Auditor-General" as referred to under section 16 (1)(b). The Auditor-General must promote efficie…

Jurisdiction: Kenya
Structure: 73 provisions
Citation: Cap. 412B
Dates: As at 31 Dec 2022

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Dates: As at 31 Dec 2022

Source attribution: Source: Kenya Law

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“This Act may be cited as the Public Audit Act.”

This Act may be cited as the Public Audit Act. Defines "an Accounting Officer of the Office of the Auditor-General" as referred to under section 16 (1)(b). The Auditor-General must promote efficiency, accountability, effectiveness and transparency in the use of public resources. The Auditor-General must be independent: they shall not be subject to direction or control when carrying out their constitutional or statutory functions, and the Auditor‑General and staff must perform impartially and exercise powers independently. Procedures and time limits for filling a vacancy in the office of the Auditor-General: when a vacancy occurs the President must, within seven days and by specified notices, declare the vacancy and invite applications; a selection panel considers applicants and forwards at least three qualified candidates; the President must nominate and forward a candidate to the National Assembly which may approve or reject; the Speaker and President have three- and seven-day forwarding/appointment deadlines; the President may extend any period by up to twenty-one days; the Public Service Commission only provides secretariat services.

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PRELIMINARY - 1. Short title

This Act may be cited as the Public Audit Act.

Section 1

ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 4. Establishment of the Office of the Auditor-General

Section 4 establishes the Office of the Auditor-General, states it comprises the Auditor-General and staff, requires reasonable access to services across the Republic, locates the headquarters in the capital city, and permits establishing branches anywhere in…

Section 4

AUDIT PROCESS AND TYPES OF AUDIT - 37. Forensic Audit

The Auditor-General may conduct forensic audits when requested by Parliament to establish fraud, corruption or other financial improprieties.

Section 37

REPORTING BY AUDITOR-GENERAL - 50. Final audit reports on a State organ or public entity including national or county governments accounts

Section 50

REPEAL, SAVINGS AND TRANSITIONAL PROVISIONS - 73. Repeal of No. 12 of 2003

Section 73

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Showing 73 of 73 provisions

Provision 62Offence 7Commencement 2Short title

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

This Act may be cited as the Public Audit Act.

Section 1. Short title Section This Act may be cited as the Public Audit Act.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

Defines "an Accounting Officer of the Office of the Auditor-General" as referred to under section 16 (1)(b).

Section 2. Interpretation Section an Accounting Officer of the Office of the Auditor-General referred to under section 16 (1)(b);

Section 2Verify source

§ 3PRELIMINARY - 3. Guiding values and principlesProvision

The Auditor-General must promote efficiency, accountability, effectiveness and transparency in the use of public resources.

Section 3. Guiding values and principles Section 3(1)(a) the national values and principles provided for under Article 10 of the Constitution; Section 3(1)(b) the equality and freedom from discrimination provided for under Article 27 of the Constitution; Section 3(1)(c) the responsibilities of leadership provided for under Article 73 of the Constitution; Section 3(1)(d) the principles governing the conduct of State officers provided for under Article 75 of the Constitution; Section 3(1)(e) the principles of public finance under Article 201 of the Constitution; and Section 3(1)(f) the values and principles of Public Service as provided for under Article 232 of the Constitution. Section 3(2) In addition to the values and principles in subsection (1), the Auditor-General shall promote efficiency, accountability, effectiveness and transparency on use of public resources.

Section 3Verify source

Part II

ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL

§ 10ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 10. Independence of the Auditor-GeneralProvision

The Auditor-General must be independent: they shall not be subject to direction or control when carrying out their constitutional or statutory functions, and the Auditor‑General and staff must perform impartially and exercise powers independently.

Section 10. Independence of the Auditor-General Section 10(1) The Auditor-General shall not be subject to direction or control by any person or authority in carrying out his or her functions under the Constitution or under this Act. Section 10(2) Without prejudice to the generality of subsection (1), the Auditor-General and his or her staff shall perform their functions impartially, without fear, favour or prejudice and shall exercise their powers independently subject to the provisions of the Article 249 (2) of the Constitution, the provision of this Act and any other written law.

Section 10Verify source

§ 11ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 11. Vacancy in officeProvision

Procedures and time limits for filling a vacancy in the office of the Auditor-General: when a vacancy occurs the President must, within seven days and by specified notices, declare the vacancy and invite applications; a selection panel considers applicants and forwards at least three qualified candidates; the President must nominate and forward a candidate to the National Assembly which may approve or reject; the Speaker and President have three- and seven-day forwarding/appointment deadlines; the President may extend any period by up to twenty-one days; the Public Service Commission only provides secretariat services.

Section 11. Vacancy in office Section 11(1)(a) dies; Section 11(1)(b) by a notice in writing addressed to the President, resigns from office; or Section 11(1)(c) is removed from office under any of the circumstances specified in Article 251 or Chapter Six of the Constitution. Section 11(2) Where a vacancy occurs under subsection (1), the President shall within seven days, by notice in the Gazette , in at least two newspapers of national circulation and in at least two national radio and television stations, declare vacancies in the office of the Auditor-General and invite applications. Section 11(3)(a) qualified person; Section 11(3)(b) person, organisation or group of persons proposing the nomination of any qualified person. Section 11(4) The names of all applicants under subsection (2) shall be published in the Gazette . Section 11(5)(a) the Ministry for the time being responsible for matters relating to finance; Section 11(5)(b) the Office of the Attorney-General; Section 11(5)(c) the Ministry for the time being responsible for matters relating to the public service; Section 11(5)(d) the Institute of Certified Public Accountants of Kenya; Section 11(5)(e) the Association of Professional Societies of East Africa; and Section 11(5)(f) the Law Society of Kenya, for the purpose of considering the applicants and selecting at least three persons qualified for appointment as Auditor-General: Section 11(6) The selection panel shall within seven days of the selection of candidates under subsection (5), forward the names of the selected candidates to the President for nomination. Section 11(7) The President shall, within seven days of the receipt of the names of the selected candidates under subsection (6), nominate one candidate for appointment as the Auditor-General and forward the name to the National Assembly. Section 11(8) The National Assembly shall consider the nomination and may approve or reject the nomination. Section 11(9)(a) approves the nominee, the Speaker shall, within three days of the approval, forward the name of the approved nominee to the President for appointment; Section 11(9)(b) rejects the nomination, the speaker shall, within three days of the rejection, communicate the decision to the President, who shall submit a fresh nominee from amongst the candidates forwarded by the selection panel under subsection (6). Section 11(10) If the National Assembly rejects all or any subsequent nominee submitted by the President for approval under subsection (9), the provisions of subsections (1) to (7) shall, with the necessary modifications, apply. Section 11(11) The President shall, within seven days of the receipt of the approved nominee from the National Assembly, by notice in the Gazette , appoint the Auditor-General approved by the National Assembly. Section 11(12) For the avoidance of doubt, the Public Service Commission shall only provide secretariat services for the selection panel convened under subsection (5). Section 11(13) Despite the foregoing provisions of this section, the President may, by notice in the Gazette , extend the period specified in respect of any matter under this section by a period not exceeding twenty-one days.

Section 11Verify source

§ 12ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 12. Acting Auditor-GeneralProvision

If the office of Auditor-General is vacant, suspended, appointment is pending, or the Auditor-General cannot perform duties, a person designated under subsection (1) acts as Auditor-General; that person must meet the minimum qualifications and may serve for no more than ninety days; when acting they have all the powers of the Auditor-General.

Section 12. Acting Auditor-General Section 12(1)(a) the office of the Auditor-General becomes vacant; Section 12(1)(b) the Auditor-General has been suspended in accordance with the Constitution; Section 12(1)(c) the appointment of a person as Auditor-General is pending; or Section 12(1)(d) the Auditor-General is for any reason unable to perform the function of his or her office, Section 12(2) A person designated under subsection (1) shall meet the minimum qualifications for appointment to the office of the Auditor-General and shall serve for a period not exceeding ninety days. Section 12(3) When acting in terms of subsection (1), the acting Auditor-General shall have all the powers of the Auditor-General.

Section 12Verify source

§ 13ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 13. Oath of OfficeProvision

The Auditor-General must, before assuming office, make and subscribe to the oath or affirmation before the Chief Justice.

Section 13. Oath of Office Section The Auditor-General shall, before assuming office, make and subscribe to the oath or affirmation set out in the Schedule before the Chief Justice.

Section 13Verify source

§ 14ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 14. Development and approval of organisational structureProvision

The Office of the Auditor-General must develop an organizational structure for consideration and approval by the Audit Advisory Board.

Section 14. Development and approval of organisational structure Section The Office of the Auditor-General shall develop an organizational structure for consideration and approval by the Audit Advisory Board.

Section 14Verify source

§ 15ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 15. Recruitment of the Senior Deputy Auditor-GeneralProvision

Establishes the office of Senior Deputy Auditor-General; the Advisory Board must competitively recruit the office-holder and the Auditor-General must appoint them; candidates must meet the qualifications set out in section 5.

Section 15. Recruitment of the Senior Deputy Auditor-General Section 15(1) There shall be a Senior Deputy Auditor-General who shall be competitively recruited by the Advisory Board and appointed by the Auditor-General. Section 15(2) A person shall be qualified for appointment as the Senior Deputy Auditor-General, if that person meets all the qualifications for appointment as outlined in section 5 of this Act.

Section 15Verify source

§ 16ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 16. Responsibilities of the Senior Deputy Auditor-GeneralProvision

The Senior Deputy Auditor-General must serve as head of administration and management of the Office, be its accounting officer, perform delegated duties and powers, and (in respect of subsection (1)(a)) report to the Auditor-General.

Section 16. Responsibilities of the Senior Deputy Auditor-General Section 16(1)(a) be the head of administration and management of the office of the Auditor-General; Section 16(1)(b) be the accounting officer of the Office of the Auditor-General; and Section 16(1)(c) perform such duties and exercise such other powers as the Auditor-General may delegate to him or her or perform other duties as spelt out by the office of the Auditor-General. Section 16(2) In performance of his or her responsibilities under subsection (1) (a), the Senior Deputy Auditor-General shall report to the Auditor-General.

Section 16Verify source

§ 17ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 17. Recruitment of other StaffProvision

The Office of the Auditor-General may recruit other staff as necessary and determine their terms in consultation with the Salaries and Remuneration Commission, subject to Articles 230 and 234(5) of the Constitution.

Section 17. Recruitment of other Staff Section 17(1) The office of the Auditor-General may recruit such other staff as may be necessary for proper discharge of his or her functions under the Constitution, this Act and any other written law, upon such terms and conditions as he/ she may determine in consultation with the Salaries and Remuneration Commission and subject to Articles 230 and 234(5) of the Constitution. Section 17(2) The remuneration of such staff should reflect prevailing remuneration of staff performing similar duties in the audit profession in other public and private institutions. Section 17(3) The staff of the Office of the Auditor-General shall be competitively recruited in accordance to the organisation structure developed by the office of the Auditor-General. Section 17(4) The recruitment and appointment of staff shall take cognisance of regional, ethnic and gender balance including equal opportunities to persons with disabilities and marginalized groups and shall comply with the value and principles of public service as contemplated in Article 232 of the Constitution.

Section 17Verify source

§ 18ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 18. Secondment of officersProvision

State organs or public entities may second public officers to the Office of the Auditor-General on request; seconded officers are treated as officers of the Office and subject to its policies; the Auditor-General may second staff to State organs on request, and seconded staff must be under the host body's direction and must not audit that body for 24 months after secondment ends.

Section 18. Secondment of officers Section 18(1) A State organ or public entity may upon such request by the Auditor-General, second to the office such number of public officers as may be necessary for proper performance of the functions of the Office. Section 18(2) A public officer seconded to the office shall, during the period of secondment, be deemed to be an officer of the office and be subject to the policies and regulations of the office of the Auditor-General. Section 18(3) The Auditor-General may, upon the request of a State organ or public entity second his or her staff who shall, for the period of such secondment, be under the direction and control of the concerned State organ or public entity and such an officer shall not audit that State organ or public entity within a period of twenty-four months after the expiry of the secondment.

Section 18Verify source

§ 19ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 19. Delegation of powersProvision

The Auditor-General may delegate powers and assign duties to subordinate officers (subject to written conditions) but remains responsible; may confirm, vary or revoke staff decisions made under delegation.

Section 19. Delegation of powers Section 19(1) The Auditor-General may, subject to such conditions as he or she may impose in writing, delegate any power and assign any duty conferred on him or her in terms of this Act or any other written law to a subordinate officer. Section 19(2) A delegation or instruction in terms of subsection (1) shall not absolve the Auditor-General of the responsibility concerning the exercise of his or her power or the performance of the duty. Section 19(3) The Auditor-General may confirm, vary or revoke any decision taken by a member of staff in consequence of a delegation or instruction under this section.

Section 19Verify source

§ 20ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 20. Budget estimates and plans of the office of the Auditor-GeneralProvision

The accounting officer must annually prepare budget estimates of revenue and expenditure and work plans for the next financial year; the National Assembly must allocate adequate funds to the office of the Auditor-General.

Section 20. Budget estimates and plans of the office of the Auditor-General Section 20(1) The accounting officer shall prepare annually budget estimates of revenue and expenditure and work plans for the next financial year for consideration. Section 20(2) The budget estimates of revenue and expenditure referred to under sub- section (1) shall be submitted to the Cabinet Secretary responsible for finance not later than the 30th March each year for review and submission to the National Assembly in accordance with Article 221 of the Constitution, and the National Assembly shall, pursuant to Article 249 (3) of the Constitution, allocate adequate funds to the office of the Auditor-General. Section 20(3)(a) estimates of revenue and recurrent expenditure for the coming fiscal year; Section 20(3)(b) estimates for the development expenditure for the coming fiscal year; and Section 20(3)(c) any other matter considered relevant by the Auditor-General in the consideration of the budget and plans of the Office.

Section 20Verify source

§ 21ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 21. Power to obtain information from othersProvision

Section 21 lets the Auditor-General require bodies or persons to produce official documents and provide information, and grants the Auditor-General powers to advise, request further information, summon people, reimburse travel costs, apply to court for non-official information, and invite other organs where fraud or corruption is suspected.

Section 21. Power to obtain information from others Section 21(1)(a) to produce any official document in the body's or person's custody, care or control; and Section 21(1)(b) to provide the Auditor-General with information or an explanation about any official information, system or asset. Section 21(2)(a) advise the person in writing of the nature of the information and why it is needed; Section 21(2)(b) state that the information is required under this Act; Section 21(2)(c) ask for further information where necessary; Section 21(2)(d) summon the person, if necessary; or Section 21(2)(e) reimburse the person for any reasonable costs incurred in travelling where such person is summoned to appear, as may be determined by the Office. Section 21(3) Where the information required is not official, then the Auditor-General will have to apply to the courts to obtain such information. Section 21(4) In cases where the Auditor-General suspects fraud or corruption, he or she may invite the relevant organs for their appropriate action.

Section 21Verify source

§ 22ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 22. Power to examine bank accountsProvision

Section 22 authorizes the Auditor-General to, by court order, trace transactions into bank accounts where there is reason to believe public body funds were fraudulently or wrongfully paid; banks must produce documents when required; the Auditor-General must safeguard information and may make copies.

Section 22. Power to examine bank accounts Section 22(1) The Auditor-General may in the course of exercising his or her functions, duties or powers, track a transaction into the account of any person in any bank through an order of the courts, if the Auditor-General has reason to believe that the money belonging to a public body has been fraudulently or wrongfully paid into such person's account. Section 22(2) When required under this section, the bank shall produce any documents or provide requested information relating to the account in the bank's custody or control. Section 22(3) In exercising the authority under this section, the Auditor-General shall ensure that any information obtained is not used for any other purpose other than that legally intended and the Auditor-General shall keep in safe custody all the documents and information so obtained. Section 22(4) The Auditor-General may make copies of any documents so produced.

Section 22Verify source

§ 23ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 23. Outsourcing audit servicesProvision

Allows the Auditor-General to outsource audit services to duly registered audit firms; sets duties and limits for appointed auditors, staff, and former officers, and preserves the Auditor-General's responsibilities.

Section 23. Outsourcing audit services Section 23(1) For purposes of carrying out his or her functions under this Act, the Auditor-General may outsource audit services from duly registered audit firms whose partners and staff are not employees of the Office of the Auditor-General and the public service to assist in an examination and audit of accounts. Section 23(2) Only a person registered and practising as an accountant under the Accountants Act (Cap. 531) shall be qualified for the purpose of provision of a financial audit opinion under this section. Section 23(3) An auditor appointed under this section shall comply with any lawful directions given by the Auditor-General and shall report to the Auditor-General. Section 23(4) For purposes of his or her appointment, an auditor appointed under this section exercises delegated powers of the Auditor-General relating to examinations and audit. Section 23(5) An auditor appointed under this section shall not certify the results of the examination and audit and shall not submit any report required under this Act other than the report under subsection (2). Section 23(6) During the period of performing the work outsourced, the staff of the outsourced firm shall conform to the provisions of this Act and Code of Ethics developed under this Act. Section 23(7) An officer who previously worked for an organ that is being audited by the Auditor-General shall not audit that organ until after thirty-six months from the time he or she ceased working for that organ. Section 23(8) Outsourcing of any audit services under this section shall not absolve the Auditor-General of any responsibility concerning the exercise of his or her powers under this Act.

Section 23Verify source

§ 24ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 24. Professional assistance and consultancyProvision

The Auditor-General may engage or consult professional or technical experts, public or private, while performing duties under this Act to enhance the Auditor-General's performance.

Section 24. Professional assistance and consultancy Section 24(1) The Auditor-General may, in the performance of his or her duties and functions under this Act, engage the services of or work in consultation with professional or technical experts or consultants, whether in the public service or not, to enhance the performance of the Auditor-General. Section 24(2) The engagement of service under sub-section (1) shall be for purposes of ensuring effectiveness in the application of public funds.

Section 24Verify source

§ 4ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 4. Establishment of the Office of the Auditor-GeneralProvision

Section 4. Establishment of the Office of the Auditor-General Section 4(1)(a) suing and being sued; Section 4(1)(b) acquiring, safeguarding, holding, charging and disposing of moveable and immoveable property; and Section 4(1)(c) doing or performing all such other duties or acts for the proper discharge of its functions under this Act, which may be lawfully done by a body corporate. Section 4(2) The office shall comprise the Auditor-General as its statutory head and all other staff appointed by the Auditor-General as may be delegated in accordance with Article 234 of the Constitution.* Section 4(3) The Office of the Auditor-General shall ensure reasonable access to its services in all parts of the Republic. Section 4(4) The headquarters of office of the Auditor-General shall be in the capital city but the office may establish branches at any place in Kenya.

Section 4Verify source

§ 5ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 5. Qualification for appointment as the Auditor-GeneralProvision

To qualify for appointment as Auditor‑General, the section states the person must be a citizen of Kenya.

Section 5. Qualification for appointment as the Auditor-General Section is a citizen of Kenya;

Section 5Verify source

§ 6ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 6. Common SealProvision

The Common seal of the Office must be kept in the custody of the Auditor-General or of another person the Auditor-General directs; the Auditor-General may direct such other person.

Section 6. Common Seal Section 6(1) The Common seal of the Office shall be kept in the custody of the Auditor-General or in the custody of such other person as the Auditor-General may direct. Section 6(2) The Common Seal of the Office when affixed to a document and duly authenticated shall be judicially and officially noticed, and unless and until the contrary is provided any necessary order or authorization by the Office under this section shall be presumed to have been duly given provided that express authority of the Auditor-General is procured.

Section 6Verify source

§ 7ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 7. Functions and powers of the Auditor-GeneralProvision

Section 7 lists functions and powers of the Auditor-General, including giving assurance on internal controls and governance, undertaking audits of state organs and public entities, ensuring lawful and proper use of public money, issuing audit reports under Article 229, providing reports under Article 254, and performing functions prescribed by other written legislation. Subsection (2) states the Auditor-General may undertake audits required by the Constitution, this Act or other law.

Section 7. Functions and powers of the Auditor-General Section 7(1)(a) give assurance on the effectiveness of internal controls, risk management and overall governance at national and county government; Section 7(1)(b) undertake audit activities in state organs and public entities to confirm whether or not public money has been applied lawfully and in an effective way; Section 7(1)(c) satisfy himself or herself that all public money has been used and applied to the purposes intended and that the expenditure conforms to the authority for such expenditure; Section 7(1)(d) all reasonable precautions have been taken to safeguard the collection of revenue and the acquisition, receipt, issuance and proper use of assets and liabilities; and Section 7(1)(d)(i) all reasonable precautions have been taken to safeguard the collection of revenue and the acquisition, receipt, issuance and proper use of assets and liabilities; and Section 7(1)(d)(ii) collection of revenue and acquisition, receipt, issuance and proper use of assets and liabilities conforms to the authority; Section 7(1)(e) issue an audit report in accordance with Article 229 of the Constitution; Section 7(1)(f) provide any other reports as may be required under Article 254 of the Constitution; and Section 7(1)(g) perform any other function as may be prescribed by any other written legislation. Section 7(2) Without prejudice to the generality of subsection (1), the Auditor-General may undertake any audits required under the Constitution, this Act or any other relevant law.

Section 7Verify source

§ 8ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 8. Administrative powers of the office of the Auditor-GeneralProvision

The Office of the Auditor-General has the power to develop an organisational structure and staffing establishment for the Office, subject to Article 234(5) of the Constitution.

Section 8. Administrative powers of the office of the Auditor-General Section develop an organisational structure and staffing establishment for the Office of the Auditor-General subject to Article 234(5) of the Constitution;

Section 8Verify source

§ 9ESTABLISHMENT OF THE OFFICE OF THE AUDITOR-GENERAL - 9. General powers of the Auditor-GeneralProvision

The Auditor-General has a range of general powers to investigate, obtain assistance, access records and premises, summon witnesses, request information from public officers, locate staff at audited entities, identify transaction origins, exercise specified powers under other laws, and to require searches, copies, seizure of electronic messages and assistance from other government agencies.

Section 9. General powers of the Auditor-General Section 9(1)(a) to conduct investigations on his or her own initiative, or on the basis of a complaint made by a third party; Section 9(1)(b) to obtain professional assistance, consultancy or advice from such persons or organizations whether within or outside public service as he/she considers appropriate; Section 9(1)(c) of conciliation, mediation and negotiation; Section 9(1)(d) to issue summons to a witness for the purposes of his or her investigation; Section 9(1)(e) all books, records, returns, reports, electronic or otherwise and other documents of entities listed under Article 229(4) of the Constitution; Section 9(1)(e)(i) all books, records, returns, reports, electronic or otherwise and other documents of entities listed under Article 229(4) of the Constitution; Section 9(1)(e)(ii) any property or premises used or held by State organs or public entities covered by Article 229(4) of the Constitution and subject to audit under this Act, Section 9(1)(f) to request any public officer that is subject to this Act to provide explanations, information and assistance in person and in writing; Section 9(1)(g) to locate any of his or her staff or an agent, for a time period to be determined by the Auditor-General, at the premises of any State organ or public entity that is the subject of an audit or examination or review and that entity shall provide access to staff or agent and adequate office space, furniture and telephone access at the expenses of that State organ or public entity; Section 9(1)(h) to identify the origin of a transaction or officer who directed or approved it, where he or she has determined inaction, omissions, misuse or abuse of public resources by a public officer; and Section 9(1)(i) to perform any function and exercise any powers prescribed by any other legislation, in addition to the functions and powers conferred by the Constitution. Section 9(2)(a) require a search to be made of any records in a public office; Section 9(2)(b) require copies to be made of, or extracts to be taken from, any records in a public office; Section 9(2)(c) seize or access or obtain official electronic messages to the extent that it is necessary for purposes of undertaking an investigation or forensic audit in entities listed under Article 229(4) of the Constitution; and Section 9(2)(d) solicit assistance of other National and County governments agencies in the exercise of his/her responsibilities under the Constitution, this Act or any other written law.

Section 9Verify source

Part III

ESTABLISHMENT OF THE AUDIT ADVISORY BOARD

§ 25ESTABLISHMENT OF THE AUDIT ADVISORY BOARD - 25. Establishment and composition of the Audit Advisory BoardProvision

Section 25 establishes the Audit Advisory Board, sets its membership composition, lists member qualifications, allows the Auditor-General to co-opt two expert members, requires members to elect a chairperson who must not be the Auditor-General, requires the Auditor-General to appoint members within fourteen days by Gazette notice, and sets three‑year terms with one possible reappointment.

Section 25. Establishment and composition of the Audit Advisory Board Section 25(1)(a) the Auditor-General or a person nominated by him or her; Section 25(1)(b) the Attorney-General or a person nominated by him or her; Section 25(1)(c) a nominee of the Institute of Certified Public Accountants of Kenya; Section 25(1)(d) a nominee of the Association of Professional Societies of East Africa; Section 25(1)(e) a nominee of the Law Society of Kenya; Section 25(1)(f) the Chairperson of the Public Service Commission or his or her nominee: Section 25(2)(a) has a degree from a university recognised in Kenya; Section 25(2)(b) has a minimum of fifteen years' experience in matters relating to public finance, auditing, accounts, law, governance or public management; and Section 25(2)(c) meets the requirements of Chapter Six of the Constitution. Section 25(3) The Auditor-General may co-opt two other members with the necessary expertise. Section 25(4) The members of the Audit Advisory Board shall elect a chairperson from among themselves, who shall not be the Auditor-General. Section 25(5) The nomination and appointment of members under this section shall take cognisance of regional, ethnic, and gender balance and people with disabilities and marginalised groups. Section 25(6) The Auditor-General shall, within fourteen days of receipt of names of qualified persons pursuant to subsection (1), by notice in the Gazette , appoint members of the Board. Section 25(7) The members of the Audit Advisory Board shall hold office for a term not exceeding three years from the date of appointment and may be eligible for reappointment for a further one term of three years.

Section 25Verify source

§ 26ESTABLISHMENT OF THE AUDIT ADVISORY BOARD - 26. Meetings and procedure of the Audit Advisory BoardProvision

The Audit Advisory Board must meet at least four times and not more than twelve times in each financial year, with no more than four months between meetings; the Senior Deputy Auditor-General is Secretary; the Chairperson convenes and presides at meetings.

Section 26. Meetings and procedure of the Audit Advisory Board Section 26(1) The Audit Advisory Board shall meet at least four times in every financial year and not more than twelve times in every financial year and not more than four months shall elapse between one meeting and the next meeting. Section 26(2) The quorum at the meeting of the Audit Advisory Board is five members of the Board or a greater number determined by the Audit Advisory Board in respect of an important matter. Section 26(3) The Senior Deputy Auditor-General of the office of the Auditor-General shall be the Secretary of the Audit Advisory Board. Section 26(4) The Chairperson shall convene and preside at meetings of the Board. Section 26(5) The proceedings of the Audit Advisory Board shall not be invalidated by reason of a vacancy among the members.

Section 26Verify source

§ 27ESTABLISHMENT OF THE AUDIT ADVISORY BOARD - 27. Functions of the Audit Advisory BoardProvision

The Audit Advisory Board must advise the Auditor-General on exercising powers and performing functions under the Constitution and this Act, and must advise on specified matters including senior manager recruitment, organisational development, budget estimates and staff remuneration (in consultation with the Salaries and Remuneration Commission), and other matters referred by the Auditor-General.

Section 27. Functions of the Audit Advisory Board Section 27(1) Subject to section 10 , the principal function of the Audit Advisory Board shall be to advise the Auditor-General on the exercise of his or her powers and the performance of his or her functions under the Constitution and this Act. Section 27(2)(a) the recruitment of senior managers into the Office of the Auditor-General; Section 27(2)(b) the development and review of organizational development issues; Section 27(2)(c) the budget estimates and plans of the office of the Auditor-General; Section 27(2)(d) the remuneration and other terms of appointment of the staff of the Office of the Auditor-General in consultation with the Salaries and Remuneration Commission; and Section 27(2)(e) any other matter that the Auditor-General may refer to the Board from time to time.

Section 27Verify source

§ 28ESTABLISHMENT OF THE AUDIT ADVISORY BOARD - 28. Allowances and expenses of the Audit Advisory Board membersProvision

Members of the Audit Advisory Board must be paid allowances and expenses provided by the Salaries and Remuneration Commission from monies appropriated to the Office of the Auditor-General.

Section 28. Allowances and expenses of the Audit Advisory Board members Section The members of the Audit Advisory Board shall be paid such allowances and expenses as are provided by the Salaries and Remuneration Commission from monies appropriated to the Office of the Auditor-General.

Section 28Verify source

Part IV

AUDIT PROCESS AND TYPES OF AUDIT

§ 29AUDIT PROCESS AND TYPES OF AUDIT - 29. Guiding principles, practices and standards of auditingProvision

The Office of the Auditor-General must apply applicable international auditing standards, principles and practices in its audits, subject to the Constitution and any written law.

Section 29. Guiding principles, practices and standards of auditing Section Subject to the Constitution and any written law, the Office of the Auditor-General shall apply the applicable international standards, principles and practices in their audits.

Section 29Verify source

§ 30AUDIT PROCESS AND TYPES OF AUDIT - 30. Scope of AuditProvision

The Auditor-General must determine how broadly and how deeply to examine or inspect public accounts, documents, information and audits under this Act.

Section 30. Scope of Audit Section Subject to the provisions of Articles 201 and 232 of the Constitution, the Auditor-General shall determine the scope and extent of the examination or inspection of accounts and any other documents or information related to public expenditures or any audits under this Act, which he considers necessary in carrying out his or her responsibilities and functions specified under this Act.

Section 30Verify source

§ 31AUDIT PROCESS AND TYPES OF AUDIT - 31. Certification audit process stepsCommencement

Section 31 sets steps for certification audits: audited State organs/public entities must report within three months after Parliament/County Assembly considers the Auditor‑General's final report; the Auditor‑General must inform entities in writing before other audits begin, submit draft management letters and copies to heads/chairpersons at exit meetings, and finalise letters if no response is received; accounting officers must respond with remedial actions within 14 days; the Speaker must invite the Auditor‑General to present tabled reports.

Section 31. Certification audit process steps Section 31(1)(a) within three months after Parliament or the County Assembly has debated and considered the final report of the Auditor-General and made recommendations, a State organ or a public entity that had been audited shall, as a preliminary step, submit a report on how it has addressed the recommendations and findings of the previous year's audit. Section 31(1)(b) at the beginning of the audit examination of the financial statements of a State organ or public entity, an inception meeting shall be held to deliberate on the scope of the financial audit, between the Auditor-General and the accounting officer and the financial statements to be audited should have been signed by the accounting officer and the substantive head of that entity, if different from the accounting officer and the Chairperson of the governing body, where applicable; Section 31(1)(c) at the conclusion of the audit examination of the financial statements of each State organ, an exit meeting shall be held at which the Auditor-General shall submit a draft management letter which shall include findings and recommendations to the accounting officer and comments of the accounting officer on the Auditor-General's findings and recommendations and the Auditor-General shall provide a copy of the report to the substantive head of that entity, if different from the accounting officer and, the Chairperson of the governing body, where applicable. Section 31(2) For all other audits or investigation, the Auditor-General shall inform the State organ or public entity to be audited or investigated in writing before commencement of the audit or investigation. Section 31(3)(a) recommendations on how a State organ or public entity may improve the application of funds in a lawful and in an effective way; and Section 31(3)(b) how responsive the State organ or public entity has been to past audit findings and recommendations. Section 31(4) The accounting officer shall within fourteen days from the date of receipt of the draft management letter, submit a response to the Auditor-General including remedial actions that have been undertaken to address any qualifications in the draft management letter. Section 31(5) If within fourteen days the Auditor-General will not have received a response, the Auditor-General shall proceed with the finalisation of the final management letter. Section 31(6) Where an audit report has been tabled, the Speaker of the National Assembly shall invite the Auditor-General to present the report before the National Assembly.

Section 31Verify source

§ 32AUDIT PROCESS AND TYPES OF AUDIT - 32. Audit reports to be submitted to Parliament and the relevant county assemblyProvision

Parliament must publicize audit reports within seven days of receiving them; the Auditor-General must publicize the report within fourteen days after submitting it to Parliament or the relevant county assembly.

Section 32. Audit reports to be submitted to Parliament and the relevant county assembly Section 32(1) All reports of an audit shall be submitted to Parliament or the relevant county assembly. Section 32(2) Within seven days of receiving the report, Parliament shall publicize it on its official website and other public spaces. Section 32(3) Within fourteen days after submitting the report to Parliament or the relevant county assembly, the Auditor-General shall publicize the report on the official website and other public spaces

Section 32Verify source

§ 33AUDIT PROCESS AND TYPES OF AUDIT - 33. Use of work of internal auditorProvision

The Auditor-General is entitled to unhindered access to all internal audit reports of State organs or public entities that are subject to audit by the Auditor-General.

Section 33. Use of work of internal auditor Section 33(1) The final report by an internal auditor which has been deliberated on and adopted by an audit committee of a State organ or public entity, may be copied to the Auditor-General. Section 33(2) The Auditor-General shall have unhindered access to all internal audit reports of a State organ or any public entity, under subsection (1) above, which is subject to audit by the Auditor-General as provided for under Article 229 (4) of the Constitution.

Section 33Verify source

§ 34AUDIT PROCESS AND TYPES OF AUDIT - 34. Periodic AuditsProvision

The Auditor-General may conduct periodic audits; those audits shall be proactive, preventive and deterrent to fraud and corrupt practices and aimed at evaluating risk management, control and governance in State Organs and public entities.

Section 34. Periodic Audits Section The Auditor-General may, upon request or at his or her own initiative conduct periodic audits which shall be proactive, preventive, and deterrent to fraud and corrupt practices, systemic and shall be determined with a view to evaluating the effectiveness of risk management, control and governance processes in State Organs and public entities.

Section 34Verify source

§ 35AUDIT PROCESS AND TYPES OF AUDIT - 35. Annual financial auditsProvision

The Auditor-General must audit financial statements for State Organs and public entities under Article 229 and must report annually to Parliament and the relevant county assembly.

Section 35. Annual financial audits Section The Auditor-General shall conduct audits of financial statements under Article 229 of the Constitution for State Organs and public entities and report annually to Parliament and relevant county assembly.

Section 35Verify source

§ 36AUDIT PROCESS AND TYPES OF AUDIT - 36. Performance AuditProvision

The Auditor-General must conduct performance audits to examine how public money has been spent; the Auditor-General may carry out a comprehensive performance audit within six months after completion of any National or County project to assess value for money and submit the report to Parliament or a County Assembly for tabling and debate.

Section 36. Performance Audit Section 36(1) The Auditor-General shall conduct performance audit to examine the economy, efficiency and effectiveness with which public money has been expended pursuant to Article 229 of the Constitution. Section 36(2) The Auditor-General may undertake a comprehensive performance audit within six months after the completion of any National or County project to evaluate, whether the citizen has gotten value for money in the project and submit the report to Parliament or County Assembly for tabling and debate.

Section 36Verify source

§ 37AUDIT PROCESS AND TYPES OF AUDIT - 37. Forensic AuditProvision

The Auditor-General may conduct forensic audits when requested by Parliament to establish fraud, corruption or other financial improprieties.

Section 37. Forensic Audit Section The Auditor-General may, upon request by Parliament, conduct forensic audits to establish fraud, corruption or other financial improprieties.

Section 37Verify source

§ 38AUDIT PROCESS AND TYPES OF AUDIT - 38. Procurement auditsProvision

The Auditor-General may examine public procurement and asset disposal processes of state organs or public entities to check whether procurements were lawful and effective.

Section 38. Procurement audits Section The Auditor-General may examine the public procurement and asset disposal process of a state organ or a public entity with a view to confirm as to whether procurements were done lawfully and in an effective way.

Section 38Verify source

§ 39AUDIT PROCESS AND TYPES OF AUDIT - 39. Audit reports to be submitted to Parliament and the relevant county assemblyProvision

Parliament or the relevant county assembly must publicise audit reports on their official website and other public spaces within seven days of receiving them; the Auditor-General must publicise the report within fourteen days after the seven-day period expires following submission to Parliament or the relevant county assembly.

Section 39. Audit reports to be submitted to Parliament and the relevant county assembly Section 39(1) All reports of an audit shall be submitted to Parliament or the relevant county assembly. Section 39(2) Within seven days of receiving the report, Parliament or the relevant county assembly shall publicise it on their official website and other public spaces. Section 39(3) Within fourteen days after the expiry of seven days upon submitting the report to Parliament or the relevant county assembly, the Auditor-General shall publicise the report on their official website and other public spaces.

Section 39Verify source

§ 40AUDIT PROCESS AND TYPES OF AUDIT - 40. Auditing of national security organsProvision

The Auditor-General and representatives must hold a high-level inception meeting (pursuant to section 31(1)(b)) to agree areas touching national security and decide an audit approach ensuring confidentiality; the authorised government vetting agency must vet all Auditor-General staff carrying out audits under this section.

Section 40. Auditing of national security organs Section 40(1) In auditing national security organs, the Auditor-General and his or her representatives shall hold an inception meeting at the highest level, pursuant to section 31 (1) (b), to agree on areas which may touch on national security and determine the appropriate audit approach that shall ensure confidentiality of information. Section 40(2) The audit reports on national security organs may be redacted to shield identities of persons as well as assets and liabilities as the case may be. Section 40(3) All staff of the Auditor-General carrying out audit under this section shall be vetted by the authorised government vetting agency.

Section 40Verify source

Part IX

GENERAL PROVISIONS

§ 68GENERAL PROVISIONS - 68. Power to make RegulationsProvision

The Cabinet Secretary responsible for finance may make regulations, so long as they are not inconsistent with the Act, to prescribe matters necessary or convenient for carrying out or giving effect to the Act.

Section 68. Power to make Regulations Section The Cabinet Secretary responsible for matters relating to finance may make Regulations not inconsistent with this Act respecting any matter that is necessary or convenient to be prescribed under this Act or for the carrying out or giving effect to this Act.

Section 68Verify source

§ 69GENERAL PROVISIONS - 69. Legal opinions and advice by the Attorney-GeneralProvision

The Auditor-General may request a legal opinion or advice from the Attorney-General on matters of law or fact.

Section 69. Legal opinions and advice by the Attorney-General Section The Auditor-General may make a written request to the Attorney-General seeking a legal opinion or advice on matters of law or fact, as the case may be.

Section 69Verify source

§ 70GENERAL PROVISIONS - 70. Supremacy of this ActProvision

If there is any inconsistency between this Act and other legislation about the functions and powers of the Auditor-General, this Act prevails.

Section 70. Supremacy of this Act Section This Act shall prevail in case of any inconsistency between this Act and any other legislation relating to the functions and powers of the Auditor-General.

Section 70Verify source

§ 71GENERAL PROVISIONS - 71. Protection from personal liabilityProvision

The Auditor-General, staff, and persons acting on the Auditor-General's directions are not personally liable for acts or omissions done in good faith while carrying out the Auditor-General's duties or exercising powers under this Act or the Constitution.

Section 71. Protection from personal liability Section The Auditor-General and his or her staff, or a person acting on the directions of the Auditor-General shall not be personally liable for any act or omission done or omitted in good faith in carrying out any duty, or exercising any power or function of the Auditor-General under this Act or the Constitution.

Section 71Verify source

§ 72GENERAL PROVISIONS - 72. Public right of access to official audits reportsProvision

The public is entitled to access official reports of the Auditor-General, subject to Article 35 and except where access would unduly jeopardize state security.

Section 72. Public right of access to official audits reports Section The Public shall have right of access to official reports of the Auditor-General in line with Article 35 of the Constitution for transparency and accountability, except where such access may unduly jeopardize state security.

Section 72Verify source

Part V

ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL

§ 41ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 41. Sources of funds of the Office of the Auditor-GeneralProvision

Section 41 lists the sources of funds available to the Office of the Auditor-General and rules for handling them, including that receipts are not paid into the Consolidated Fund, retention for Act purposes, bank account powers, and disclosure of donations.

Section 41. Sources of funds of the Office of the Auditor-General Section 41(1)(a) monies appropriated by Parliament for the purposes of the Office of the Auditor-General; Section 41(1)(b) such monies or assets as may accrue to the office of the Auditor-General in the course of the exercise of the Auditor-General's powers or the performance of his functions under this Act; Section 41(1)(c) audit fees charged at the rates prescribed by the Auditor-General; Section 41(1)(d) investment income subject to annual approval by Parliament; and Section 41(1)(e) all monies from any other source provided or donated or lent to the office of the Auditor-General and such monies shall be disclosed to Parliament. Section 41(2) The receipts, earnings or accruals of the office of the Auditor-General shall not be paid into the Consolidated Fund but shall be retained for purposes of this Act in accordance with Article 206 (1) of the Constitution. Section 41(3) The Auditor-General may open and maintain such bank accounts in accordance with section 28 of the Public Finance Management Act (Cap. 412A), as are necessary for the exercise of the functions of the office of the Auditor-General and shall pay into them all monies received from the Government, or from any other source, for the purposes of this Act.

Section 41Verify source

§ 42ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 42. Auditor-General not to question Government policy objectives*Provision

The Auditor-General must not question the merits of a policy objective of the national government, county government, or any other public entity when conducting an examination under this Act.

Section 42. Auditor-General not to question Government policy objectives* Section Notwithstanding the provisions of this Act, in an examination under this Act, the Auditor-General shall not question the merits of a policy objective of the national government or county government or any other public entity. * This section was declared unconstitutional by Petition No. 388 of 2016: High Court at Nairobi.

Section 42Verify source

§ 43ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 43. Accounts of the Office of the Auditor-GeneralProvision

The Accounting Officer must prepare and, after approval by the Auditor-General, submit the Office's financial statements for audit to the external auditor appointed by the National Assembly; the statements must include specified financial and performance statements and comply with Public Sector Accounting Standards.

Section 43. Accounts of the Office of the Auditor-General Section 43(1) For each financial year, the Accounting Officer of the office of the Auditor-General shall prepare and submit upon approval by the Auditor-General, for audit the financial statements of the office of the Auditor-General to an external auditor appointed by the National Assembly in accordance with Article 226(4) of the Constitution. Section 43(2)(a) a statement of financial performance; Section 43(2)(b) a statement of financial position; Section 43(2)(c) a statement of changes in net assets; Section 43(2)(d) a statement of accounting policies and notes to the financial statements; and Section 43(2)(e) a statement of performance of the Office of the Auditor-General including statements on processes and systems audit against predetermined objectives. Section 43(3) Without prejudice to subsection (2), the Accounting Officer shall prepare the financial statements in a form that complies with the relevant accounting standards prescribed and published by the Public Sector Accounting Standards Board in accordance with the Public Finance Management Act (Cap. 412A).

Section 43Verify source

§ 44ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 44. Audit of accountsProvision

The accounting officer must submit the office's accounts to the appointed auditor within three months after the end of the financial year; the appointed auditor must examine and audit those accounts within six months and must examine whether public money was applied lawfully and effectively.

Section 44. Audit of accounts Section 44(1) The accounting officer of the office of the Auditor-General shall submit accounts of the office to the appointed auditor under section 43 , within three months after the end of the financial year to which the accounts relate. Section 44(2) The appointed auditor shall examine and audit the submitted accounts of the office of the Auditor-General within six months after the end of the financial year in accordance with the provisions of Part IV of this Act, express an opinion and certify the result of that examination and audit. Section 44(3) The appointed auditor shall examine whether or not public money has been applied lawfully and in an effective way.

Section 44Verify source

§ 45ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 45. Reporting by the appointed auditorProvision

The appointed auditor must prepare and submit an audit report to each relevant Clerk of Parliament and copies to the Cabinet Secretary responsible for finance and the Auditor-General; Parliament and the Auditor-General must publicise the report as stated, with Parliament subject to Article 35 and the Auditor-General to a fourteen-day timing rule.

Section 45. Reporting by the appointed auditor Section 45(1) The appointed auditor shall prepare a report on the examination and audit and submit the report to each relevant Clerk of Parliament, with a copy to the Cabinet Secretary responsible for finance and the Auditor-General. Section 45(2) Subject to Article 35 of the Constitution, Parliament shall publicise it on their official website and other public spaces. Section 45(3) Within fourteen days after the expiry of seven days upon submitting the report to Parliament, the Auditor-General shall publicise the report on their official website and other public spaces. Section 45(4)(a) the information and explanations that were required to perform the examination and audit were received; Section 45(4)(a)(i) the information and explanations that were required to perform the examination and audit were received; Section 45(4)(a)(ii) proper books of accounts have been kept and the accounts are in agreement therewith; and Section 45(4)(a)(iii) the accounts present a true and fair view of the financial position of the office of the Auditor-General; Section 45(4)(b) money has been spent in a way that was not lawful, economical, efficient and effective; and Section 45(4)(b)(i) money has been spent in a way that was not lawful, economical, efficient and effective; and Section 45(4)(b)(ii) the rules and procedures followed or the records kept were inadequate to safeguard assets, liabilities and the collection of revenue.

Section 45Verify source

§ 46ACCOUNTS OF THE OFFICE OF THE AUDITOR-GENERAL - 46. Debating and considering report of appointed auditorProvision

The National Assembly must, within three months after receiving an audit report for the accounts of the Office of the Auditor-General, debate and consider the Annual Report of the Office (financial statements and activities) and take appropriate action.

Section 46. Debating and considering report of appointed auditor Section Within three months after receiving an audit report for the accounts of the Office of the Auditor-General, the National Assembly shall debate and consider the Annual Report of the office of the Auditor-General, comprising the financial statements and the activities of the office and take appropriate action.

Section 46Verify source

Part VI

REPORTING BY AUDITOR-GENERAL

§ 47REPORTING BY AUDITOR-GENERAL - 47. Time limit for submission of accountsProvision

Financial statements required under the Constitution, the Public Finance Management Act and any other legislation must be submitted to the Auditor-General within three months after the end of the fiscal year to which they relate.

Section 47. Time limit for submission of accounts Section 47(1) The financial statements required under the Constitution, the Public Finance Management Act (Cap. 412A) and any other legislation, shall be submitted to the Auditor-General within three months after the end of the fiscal year to which the accounts relate. Section 47(2) The financial statements shall be in the form and content as prescribed by the Public Sector Accounting Standards Board.

Section 47Verify source

§ 48REPORTING BY AUDITOR-GENERAL - 48. Accounts for auditProvision

The Auditor-General must, within six months after each financial year ends, audit and report on the accounts specified in Article 229 of the Constitution; the Auditor-General may also audit and report on accounts of any entity funded from public funds.

Section 48. Accounts for audit Section 48(1) Within six months after the end of each financial year, the Auditor-General shall audit and report, in respect of that financial year, on the accounts specified in Article 229 of the Constitution. Section 48(2) Without prejudice to the provisions of subsection (1), the Auditor-General may audit and report on the accounts of any entity that is funded from public funds.

Section 48Verify source

§ 49REPORTING BY AUDITOR-GENERAL - 49. Special reports in the course of annual audit of the accounts of State organsProvision

The Auditor-General must submit a special report to Parliament or the relevant county assembly when a matter arises in an audit that should be brought to their attention; Parliament or the county assembly must publicize the report within seven days and publish a gazette notice; the Auditor-General's office must publicize it within fourteen days after that seven-day period; and Parliament or the county assembly must discuss and review the report within sixty days after that seven-day period.

Section 49. Special reports in the course of annual audit of the accounts of State organs Section 49(1) If, in the course of an examination and audit, a matter comes to the attention of the Auditor-General that he or she feels should be brought to the attention of the Parliament or the relevant county assembly, the Auditor-General shall submit a special report to Parliament or the relevant county assembly in accordance with the protocols developed in the Regulations. Section 49(2) Within seven days of receipt, Parliament or the relevant county assembly, shall publicize that report on their official website and any other public notice and shall publish a notice in the gazette to inform the public of the availability of the report. Section 49(3) Within fourteen days following the expiry of the seven days referred to under subsection (2), the office of the Auditor-General shall publicize that report on its official website and any other public notice. Section 49(4) Within sixty days following the expiry of the seven days referred to under subsection (2), Parliament or relevant county assembly shall discuss and review the report.

Section 49Verify source

§ 50REPORTING BY AUDITOR-GENERAL - 50. Final audit reports on a State organ or public entity including national or county governments accountsProvision

The Auditor-General must submit the final audit report to Parliament or the relevant county assembly, with copies to the Cabinet Secretary responsible for finance, the relevant County Executive Committee member for finance, and the accounting office of the audited entity; Parliament or the relevant county assembly must, within three months of receiving the report, debate and consider it and take appropriate action.

Section 50. Final audit reports on a State organ or public entity including national or county governments accounts Section 50(1) The final audit report of the Auditor-General shall be submitted to Parliament or the relevant county assembly, with copies to the Cabinet Secretary responsible for finance and the relevant County Executive Committee member for finance, as the case may be, and the accounting office of the entity that is subject of the audit. Section 50(2) Within three months of receiving an audit report referred to under subsection (1), Parliament or the relevant county assembly shall debate and consider the report and take appropriate action.

Section 50Verify source

§ 51REPORTING BY AUDITOR-GENERAL - 51. Other reporting by the Auditor-GeneralProvision

Parliament or the relevant county assembly must, within 30 days after the seven-day publication period ends, discuss and review other reports; the office of the Auditor-General must, within 14 days after that seven-day publication period ends, publicize the report on its official website and other public notice.

Section 51. Other reporting by the Auditor-General Section 51(1) Within thirty days following the expiry of the seven days of publication period, Parliament or the relevant county assembly shall discuss and review other reports submitted to them. Section 51(2) Within fourteen (14) days following the expiry of the seven days publication period, the office of the Auditor-General shall publicize the report on its official website and any other public notice.

Section 51Verify source

§ 52REPORTING BY AUDITOR-GENERAL - 52. Use of media in publicizing of reportsProvision

Section 52 addresses the use of media in publicizing reports and refers to the general nature of the report or document.

Section 52. Use of media in publicizing of reports Section the general nature of the report or document;

Section 52Verify source

§ 53REPORTING BY AUDITOR-GENERAL - 53. Implementation of reports by an accounting officerProvision

The accounting officer must either implement Parliament's recommendations on the Auditor-General's report or give written explanations; failure may result in being held in contempt and Parliament or the relevant County Assembly may recommend administrative sanctions such as removal or reduction in rank.

Section 53. Implementation of reports by an accounting officer Section 53(1)(a) take the relevant steps to implement the recommendations of parliament on the report of the Auditor-General; or Section 53(1)(b) give explanations in writing to the Parliament on why the report has not been acted upon. Section 53(2) Failure to comply with the provisions of subsection (1), the accounting officer shall be in contempt of Parliament or County Assembly and upon determination by Parliament or relevant County Assembly, Parliament or relevant County Assembly may recommend administrative sanctions such as removal as the Accounting Officer, reduction in rank among others.

Section 53Verify source

§ 54REPORTING BY AUDITOR-GENERAL - 54. Withholding of funds by Parliament or county assemblyProvision

If there is a serious or persistent material breach of this Act, the Auditor-General may recommend withholding funds to a State organ or public entity when reporting to Parliament or the county assembly under the Public Finance Management Act (Cap. 412A).

Section 54. Withholding of funds by Parliament or county assembly Section Where there is a serious material breach or persistent material breaches of the provisions of this Act, the Auditor-General may in his audit report to Parliament or the relevant county assembly pursuant to the Public Finance Management Act (Cap. 412A), recommend the withholding of funds to any State organ or public entity.

Section 54Verify source

Part VII

THE CODE OF CONDUCT AND ETHICS

§ 55THE CODE OF CONDUCT AND ETHICS - 55. Observing the code conductProvision

The Auditor-General must determine a code of conduct and ethics for all public officers in the Office, in line with the Constitution, this Act and the Public Officer Ethics Act (Cap. 185B).

Section 55. Observing the code conduct Section The Auditor-General in discharging his or her functions and responsibilities shall determine the code of conduct and ethics for all public officers in the Office if the Auditor-General, which shall be in line with those prescribed by the Constitution, this Act and the Public Officer Ethics Act (Cap. 185B).

Section 55Verify source

§ 56THE CODE OF CONDUCT AND ETHICS - 56. Observance of Code of Conduct and EthicsProvision

Every officer of the Office of the Auditor-General must observe the Code of Conduct and Ethics developed by the Auditor-General under section 55.

Section 56. Observance of Code of Conduct and Ethics Section It shall be the obligation of every officer of the Office of the Auditor-General to observe the Code of Conduct and Ethics developed by the Auditor-General under section 55 .

Section 56Verify source

§ 57THE CODE OF CONDUCT AND ETHICS - 57. Administrative actionProvision

Staff of the Office of the Auditor‑General or outsourced auditors proven to have been compromised, bribed or corrupted for suppressing an auditee's fraud or corrupt practice must be liable to administrative action under this Act or by the relevant professional body.

Section 57. Administrative action Section Any staff of the Office of the Auditor-General or an auditor outsourced by the Office who may be proven to have been compromised, bribed or corrupted in any way in consideration for suppressing a fraud or corrupt practice by the Auditee client shall be liable to administrative action under this Act or by the relevant professional body over and above any criminal proceedings which may be preferred against him or her in accordance with this Act or any other written law.

Section 57Verify source

§ 58THE CODE OF CONDUCT AND ETHICS - 58. Disclosure of fraud and corruptionProvision

Staff of the Office of the Auditor‑General must immediately disclose any fraud or corruption they learn of; officers must not knowingly cover up such acts; officers may not divulge an Auditee's business secrets except for official purposes under this Act or other law.

Section 58. Disclosure of fraud and corruption Section 58(1) All staff of the Office of the Auditor-General are duty bound to disclose any fraud or corruption that comes to their attention immediately and disciplinary action shall be taken against any officer who knowingly covers up any acts of fraud or corruption. Section 58(2) Despite the provisions of subsection (1), an officer of the Office of the Auditor-General shall not divulge any information which relates to the business secret of the Auditee which comes to his or her knowledge in the course of duty unless is for official purposes as provided for under this Act or any other written law.

Section 58Verify source

§ 59THE CODE OF CONDUCT AND ETHICS - 59. Disclosure of interestProvision

An officer of the Office of the Auditor-General who has an interest in a matter under consideration by the auditee client must disclose in writing the nature of that interest and must not participate in any auditing exercise relating to that client.

Section 59. Disclosure of interest Section 59(1) An officer of the Office of the Auditor-General who has an interest in a matter under consideration by the auditee client shall disclose in writing, the nature of that interest and shall not participate in any auditing exercise relating to that client. Section 59(2) An officer who fails to disclose an interest in a matter in accordance with subsection (1) shall be subject to administrative action under the provisions of this Act or Regulations made thereunder.

Section 59Verify source

§ 60THE CODE OF CONDUCT AND ETHICS - 60. Confidential reporting of unlawful actsProvision

The Auditor-General must put in place a mechanism for confidential reporting about officers of the Office of the Auditor-General concerning unlawful acts, public funds violations, gross wastage, mismanagement and abuse of authority.

Section 60. Confidential reporting of unlawful acts Section 60(1) The Auditor-General shall put in place a mechanism for confidential reporting about the officers of the Office of the Auditor-General relating to unlawful acts or orders relating to violation of laws in relation to public funds, gross wastage, mismanagement and abuse of authority. Section 60(2) Any person reporting a corrupt practice or misconduct by an audit officer with knowledge or good faith or belief that the allegation or information is true, shall be treated with utmost confidentiality. Section 60(3) Allegations and concerns reported anonymously shall be reviewed and considered as appropriate and some of the factors to be considered by the Auditor-General shall include the seriousness of the allegation, its credibility, and the extent to which the allegation can be confirmed or corroborated by attributable sources. Section 60(4)(a) such person agrees to be identified; Section 60(4)(b) identification is necessary to allow appropriate law enforcement official to investigate or respond effectively to the disclosure; Section 60(4)(c) is required by law where a false accusation has been maliciously made; or Section 60(4)(d) the person accused is entitled to the information as a matter of legal right and in such an eventuality the Auditor-General, shall inform the person prior to revealing his or her identity.

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Part VIII

OFFENCES AND SANCTIONS

§ 61OFFENCES AND SANCTIONS - 61. Offences by officers of the office of the Auditor-GeneralOffence

Officers of the Office of the Auditor-General must not engage in corrupt acts, conceal or fail to disclose audit information or conflicts of interest, or publish audit reports before formal submission; such offences are punishable by a fine not exceeding ten million shillings or imprisonment for up to five years, or both.

Section 61. Offences by officers of the office of the Auditor-General Section 61(1)(a) engages in a corrupt act; Section 61(1)(b) knowingly and willfully conceals information on audit findings for whatever reason, including in order to obtain a financial benefit for the officer or an accomplice or another person; Section 61(1)(c) knowingly and willfully fails to disclose audit information on fraud or corrupt practice by the audited entity; Section 61(1)(d) fails to disclose any conflict of interest in any matter under consideration in the course of discharging any functions under this Act; or Section 61(1)(e) knowingly and wilfully discloses, publishes or publicizes the Auditor-General's audit report or its contents to third parties including the media before the report is finalized and formally submitted to Parliament or County Assembly and copied to the audited entity and other authorized offices; Section 61(2) Any officer of the Office of the Auditor-General who commits an offence under subsection (1) shall be liable on conviction to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding five years, or to both.

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§ 62OFFENCES AND SANCTIONS - 62. Other OffencesOffence

It is an offence for a person to, without reasonable cause or lawful excuse, obstruct, assault, threaten, fail to provide required information, submit false or misleading information, misrepresent or unduly influence staff or authorised persons of the Office of the Auditor‑General; on conviction the person may be fined up to five million shillings or imprisoned up to three years, or both.

Section 62. Other Offences Section 62(1)(a) without reasonable cause or lawful excuse, obstruct or hinder, assault or threaten a member of staff of the Office of the Auditor-General or professional acting under this Act; Section 62(1)(b) without justification, fail to provide information required under this Act; Section 62(1)(c) without justification, fail to provide information within reasonable time that is required under this Act; Section 62(1)(d) submit false or misleading information; Section 62(1)(e) misrepresent to or knowingly mislead a member of staff of the Office of the Auditor-General or professional acting under this Act; or Section 62(1)(f) interfere with or exert undue influence on any staff of the Office of the Auditor-General or on any person authorized by the Auditor-General to perform functions under this Act. Section 62(2) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding five million shillings or to imprisonment for a term not exceeding three years, or to both.

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§ 63OFFENCES AND SANCTIONS - 63. General penaltyOffence

If a person is convicted of an offence under this Act for which no other punishment is given, they are liable to a fine not exceeding two million shillings, or to imprisonment for up to one year, or both, subject to exceptions in the Act.

Section 63. General penalty Section Except as otherwise provided for under this Act, a person who is found guilty of an offence under this Act for which no other punishment is given, is liable on conviction to a fine not exceeding two million shillings or to a term of imprisonment not exceeding one year or, to both.

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§ 64OFFENCES AND SANCTIONS - 64. Powers to report to police, etc.Offence

If the Auditor-General finds someone involved in fraud or corrupt practice, the Auditor-General must report them to the police, the Ethics and Anti-Corruption Commission or the Public Procurement Oversight Authority; if referred to the Public Procurement Oversight Authority, the Auditor-General may recommend debarment from future public procurement and asset disposal proceedings.

Section 64. Powers to report to police, etc. Section 64(1) Where the Auditor-General establishes that any person, supplier or company has been involved in fraud or corrupt practice, the Auditor-General shall report to the police, Ethics and Anti-Corruption Commission or the Public Procurement Oversight Authority for their action. Section 64(2) Where the matter is referred to the Public Procurement Oversight Authority, the Auditor-General may make recommendation for debarment from future public procurement and asset disposal proceedings of a state organ or public entity with a copy to the relevant accounting officer.

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§ 65OFFENCES AND SANCTIONS - 65. SurchargeOffence

The Auditor-General may recommend to Parliament or county assemblies that a person responsible for a deficiency in audited money or assets be surcharged for the amount of the loss.

Section 65. Surcharge Section If it is established by the Auditor-General that there has been any deficiency in respect of any money or assets subject to its audit, the Auditor-General may recommend to Parliament or county assemblies that the person in default or responsible should be surcharged with the amount of the deficiency or loss.

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§ 66OFFENCES AND SANCTIONS - 66. Ineligibility to hold public officeOffence

A person convicted of an offence under this Act may not hold public office or work for a State-owned entity for ten years after conviction.

Section 66. Ineligibility to hold public office Section A person who is convicted of an offence under this Act shall not be eligible to hold public office or work with an entity owned in whole or part by the State for a period of ten years following the conviction.

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§ 67OFFENCES AND SANCTIONS - 67. Disallowable expenditureOffence

Disallowable expenditure: any payment made without due authority.

Section 67. Disallowable expenditure Section any payment made without due authority; or

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Part X

REPEAL, SAVINGS AND TRANSITIONAL PROVISIONS

§ 73REPEAL, SAVINGS AND TRANSITIONAL PROVISIONS - 73. Repeal of No. 12 of 2003Commencement

Section 73 repeals the Public Audit Act, 2003 and contains transitional provisions allowing certain proceedings, investigations, disciplinary and appeal processes to continue under the new Act; it also provides transfers and such contracts continue and sets a thirty-day cessation for the Kenya National Audit Commission; references to "Controller and Auditor-General" are to be read as "Auditor-General".

Section 73. Repeal of No. 12 of 2003 Section 73(1) The Public Audit Act, 2003 ( No. 12 of 2003 ) is repealed. Section 73(2)(a) any proceedings taken against or by the Kenya National Audit Office or pending against that office or any other person immediately before the commencement of this Act may be continued by or against the Kenya National Audit Office as if instituted under this Act: Provided that criminal proceedings shall be regarded as pending if the person concerned had pleaded to the charge in question. Section 73(2)(b) any administrative investigation or inquiry instituted in terms of the repealed Act which was pending before the commencement of this Act shall be continued or disposed of as if instituted under this Act; Section 73(2)(c) all disciplinary proceedings which immediately before the commencement of this Act were pending shall be continued or concluded as if instituted under this Act; Section 73(2)(d) all appeal processes, which immediately before the commencement of this Act were pending, shall proceed as if instituted under this Act; Section 73(2)(e) the persons employed by the Kenya National Audit Office shall be transferred to the Office of the Auditor-General established under this Act; Section 73(2)(f) a contract subsisting between the Kenya National Audit Office and another person before the commencement of this Act shall continue to exist as if it was a contract entered into between the Office of the Auditor-General and that other person; and Section 73(2)(g) the Kenya National Audit Commission established by the repealed Act shall cease to exist within thirty days from the day of commencement of this Act; Section 73(3) Any references to the words "Controller and Auditor-General" under any written law shall be construed to refer to the words "Auditor-General".

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Legislative relationships

9 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

6 instruments

Auditor-General under this Act
Section 71
Auditor-General. Section 12. Act
Section 12
Auditor-General's powers or the performance of his functions under this Act
Section 41
Code of Conduct and Ethics Every officer of the Office of the Auditor-General must observe the Code
Section 56
Constitution and subject to audit under this Act
Section 9
Ethics developed under this Act
Section 23

N–S

3 instruments

No. 12 of 2003 Section 73 repeals the Public Audit Act, 2003
Section 73
Office of the Auditor-General or professional acting under this Act
Section 62
Part IV of this Act
Section 44

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