The National Treasury is at the forefront in the provision and support for an efficient financial management system for the national and county governments. This will ensure transparency and accountability in financial management and standard financial reporting as contemplated in Article 226 of the Constitution and Section 12 of the Public Finance Management (PFM) Act 2012.

Treasury introduced the Integrated Financial Management Information System (IFMIS) as a PFM reform initiative aimed at automating and streamlining, Government’s financial management processes and procedures. The following processes have been linked and integrated with the IFMIS system: Planning and Budgeting, Procurement, Accounting, Electronic Funds Transfer, Auditing, Asset management and Financial Reporting.

IFMIS also ensures the provision of timely, accurate and quality financial information. It enhances financial controls for improved expenditure management, increases transparency and accountability and improves public service delivery for economic growth and development.

The following are some of the Frequently Asked Questions about IFMIS.

The following are some of the Frequently Asked Questions about IFMIS.

  1. What is the Integrated Financial Management Information System? (IFMIS)?
    IFMIS is an automated system that is used for public financial management that interlinks planning, budgeting, expenditure management and control, accounting, audit and reporting.
  2. Is the IFMIS system working?
    The IFMIS system works very well in both National and County governments. The system was first rolled out to Government ministries in 2003. It was later rolled out to all the 47 counties in March 2013 following the establishment of a devolved government. Government Ministries, Departments, Agencies (MDAs) and Counties now transact using the IFMIS system. Users in MDAs and counties are able to produce/print financial reports from the system. The reports are used by accounting and other authorized officers for decision making.
  3. What is IFMIS role in Public Financial Management (PFM)?
    In line with the PFM goals, the IFMIS system has been configured to facilitate the following:

    Planning and Budgeting: The IFMIS system’s planning and budgeting module was used to prepare the 2012/2013 budget in MDAs. The module was also used to prepare the 2013/2014 National and County budgets, and users are currently developing the 2014/15 budget estimates through the system. This system has made the planning and budgeting process in MDAs and Counties more efficient.

    Expenditure management: Six financial modules have been configured and are fully operational in the IFMIS system. These include the General Ledger, , Accounts Receivable, Purchase Order, Fixed Assets, Cash Management and Accounts Payable. IFMIS has inbuilt controls and audit trails that clearly indicate transactions from the point of initiation to the end. The system has an approval hierarchy which ensures segregation of duty and internal checks.

    Reporting: The IFMIS system has been configured to generate more than 1000 statutory and management reports real time.  A user can generate the reports at the click of a button. However, the accuracy of generated reports depends on the data entered by the user.

    Some of the reports that can be generated from the system include, Appropriation report, Statement of Assets and liabilities, Vote book report, Trial balance, Invoice register report, Invoice ageing report, Account analysis report, Unaccounted transactions report, Imprest register report, Outstanding imprest report and Miscellaneous receipt report.

  4. How has The National Treasury built capacity of IFMIS users?
    The National Treasury established the IFMIS Academy in May 2012 to provide continuous training to IFMIS users. The Academy has trained over 5000 officers from MDAs and Counties to date on the use of the IFMIS system. The Academy trains on Plan to Budget, Procure to Pay, Record to Report, Revenue to Cash and ICT to Support components of the re-engineered IFMIS. The training has equipped many of the officers who are now effectively using the IFMIS system for financial management in National and County Governments.
  5. How does the IFMIS system support auditing?
    The IFMIS Academy has trained both internal and external auditors on how to undertake audit through the IFMIS system. The auditors also have access to the system for audit and querying. Similarly, the system provides real time reports for audit purposes.
  6. Does the IFMIS system capture data on personnel and wages?
    Data on personnel and wages is captured in the system at the planning and budgeting stages. IFMIS is also integrated with the Payroll system for the purposes of processing personnel emoluments.
  7. What is the role of IFMIS in procurement and payment?
    The National Treasury has made tremendous strides towards full automation of public procurement. Some procurement processes have already been automated. These include the supplier management, requisition process leading to auto creation of purchase orders (POs), invoicing and electronic payment.

    The Government of Kenya has adopted the United Nations Standard Product and Services Classification (UNSPSC) for all items to be used for Procurement of goods and services. UNSPSC is a system of classification for commodities cutting across all private and public sectors having a single version of cataloging for all known items to be used.

    The UNSPSC thus becomes the new way of capturing all procurement items going forward. The items have been defined in the system, thereby facilitating the procurement process.

    The National Treasury plans to go live with the full automated procurement process by July 2014.

  8. Use of the IFMIS system
    The National Treasury has facilitated users through training and support. Users at the Ministries, Departments and Agencies (MDAs) and the 47 Counties are now using the IFMIS system to transact. The National Treasury has provided a road, on which the accounting units can drive their financial vehicles. The road cannot be blamed when the driver drives carelessly and causes accidents! The system is as good as its user. Similarly, the system does not replace financial roles and responsibilities of the users.

Our Mission

“To passionately and with commitment, continuously enhance our capacities to innovate and leverage on the best of technology to provide for a fully integrated financial management.”

Our Vision

“An excellently secure, reliable, efficient, effective, and fully integrated financial management system.”

Was this page helpful? Send us your feedback.