GAZETTE NOTICE NO. 13877

WHEREAS (a) The National Government through the Ministry of Agriculture, Livestock and Fisheries and the County Governments through the Council of Governors have developed a Programme proposal known as Agricultural Sector Development Support Programme Phase Il (ASDSP Il) following the expiry of ASDSP I. (b) The Proposal has been submitted to Government of Sweden (GOS) for support through the National Treasury and the proposal has been accepted by GOS who has committed to grant Government of Kenya (GOK) Three Billion, Six Hundred Million Kenya Shillings (3.6 BKES) for five years. (c) The National Government and County Governments have agreed to co-finance the ASDSP Il Programme by contributing Kenya Shillings eight hundred million (800,000,000 KES) and one billion, two hundred and ninety two million, five hundred thousand (1,292,500,000 KES) respectively for five years. NOW THEREFORE, the Parties hereby agree and acknowledge as follows; I. Objectives of the MOU The objective and purpose of this MOU is to establish a structured framework for collaborative partnership between the Parties for the management of all financial resources committed for the implementation of ASDSP ll. II. Obligations of the Parties (a) Common Obligations 1. The Parties will be fully responsible for the implementation of the programme and for the management of all the financial contributions from Sweden and Kenya as per the specifications in the programme document. As a financier, Sweden shall not bear any responsibility and/or liability to any third party with regard to the implementation of the programme. 2. To ensure smooth implementation of the programme, The Parties will provide the required counterpart funding as provided and agreed upon in the financing agreement. 3. Whereas (GOS)has agreed to align its financial obligations with Kenya's budgetary cycle, The Parties too, will ensure predictability of their financing obligation through timely disbursements and cash floor management 4. The Parties undertake to: (a) Maintain accounting records that are accurate and reliable for information and decision-making. (b) Ensure effective control and efficient utilization of the programme funds. (c) Provide reports to development partners, external auditors and other stakeholders in accordance with agreed formats and reporting periods. (d) Ensure preparation and effective implementation of budgets that support the objectives of the programme implementing levels and development partners. (e) Provide co-financing through the respective budgetary process and as reflected in the table below: Source of funds 2017/018 2018/019 2019/020 2020/021 2021/022 Total Nation al 2,500,000 12,500,000 County 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 27,500,000 GOS 7,687,618 12,250,15 16,812,69 16,812,69 7,687,618 61,250,787 Total 15,687,61 20,250,15 24,812,69 24,812,69 15,687,61 101,250,78 5. Financial Management of the programme shall be done as per the Public Finance Management Act 2012 and the Regulations thereto. (b) Obligations of The National Government The National Government shall:- 1. Submit consolidated AWP&B to National Treasury having fulfilled the following activities:- (a) Except for the first year of implementation, the subsequent years' budgets should be based on preceding year's programme activities and budget performance. Review previous year's national specific performance and define detailed activities required to reach established annual output targets and the required financial needs. (b) Consolidate county and national specific budgets into ASDSP I l Annual Work plan and Budget (AWP&B). (c) Submit reviewed AWP&B to the Joint Agriculture Sector Steering Committee (JASSCOM) for approval. (d) Upon approval by JASSCOM, share the AWP&B with Sweden for review and concurrence. (e) Share consolidated AWP&B with counties. 2. Request for disbursements as follows: (a) The National Government through the National Treasury shall open special purpose account for ASDSP Il at the Central Bank of Kenya where all funds disbursed by Sweden shall be deposited. (b) Upon approval of the National Government budgets by the National Assembly, the National Government through the National Treasury shall submit twice a year, a disbursement request to (GOS) as specified in the Specific Agreement. (c) The National Government shall through a disbursement request authorize the National Treasury to disburse funds, including GoK National Level contribution to respective county treasuries according to the approved work plans. (d) The National Government shall disburse the GOK counter financing to the national programme special purpose account twice a year and in accordance with the work plan. 3. The National Government shall open a programme specific account upon undertaking the following activities: (a) Getting an authority from National Treasury to open a programme specific account at the Central Bank of Kenya or any approved commercial bank where all funds from GOS and GOK shall be deposited for the implementation of national level programme activities by NPS. (b) The National Government Accounting officer shall issue AIE to National Programme Co-ordinator to appropriate programme funds for national level activities as per agreed work plan and manual for programme financial management and procurement. 13th October, 2023 THE KENYA GAZETTE 4. Prepare financial reports: (a) Programme co-ordinator shall prepare financial reports specific to the national based budgets and also consolidate overall program financial report (counties and national). These reports shall be reviewed and approved by JASSCOM before they are submitted to GOS through the National Treasury. (b) Prepare and submit monthly internal financial reports/SOEs through JASCCOM to National Government accounting officer at treasury In addition, NPS will consolidate quarterly financial reports from all counties and share with JASSCOM semi-annually for review and approval. 5. Facilitate Audit Services: (a) The National Government shall undertake continuous internal audit, jointly with KENAO carry out external audit, and also procure a private auditor to perform biannual rolling audits. (b) Any suspected corruption cases shall be reported urgently to the accounting officer for redress (c) Obligations of the County Government The County Government shall: 1. Submit annual work plan and budget to County Treasury having fulfilled the following activities:o Except for the first year of implementation, the subsequent years' budgets should be based on the preceding year's programme activities and budget performance. (a) Consolidate county budget into ASDSP Il Annual Work plan and Budget (AWP&B); o County Programme Secretariat (CPS) through Chief Officer Agriculture will Submit reviewed AWP&B to the County Sector Steering Committee (CSC) for approval; o Upon approval by CSC, share the AWP&B with NPS. (b) Submit the approved county AWP&B to the County Treasury through CSC for inclusion in the County budgets. 2. Request for disbursements as follows: (a) Upon approval of the budgets by the County Assembly, PS through the respective County department shall submit twice a year, a disbursement request to the National Treasury through the County Treasury. The disbursement request shall be the total financial requirement from GOS and contribution from National government as approved through the AWP&B process and in line with appropriated budget. (b) CPS through the respective department responsible for the programme will put up a requisition for the disbursement of county counterpart funds to the County Treasury in accordance with the approved AWP&B. (c) Such disbursements above will trigger counterpart contributions form national government and GOS. (d) County Treasury will disburse the counterpart contribution to the programme specific account twice a year and in accordance with disbursement request from CPS to facilitate disbursement. (e) County Treasury will disburse GOS & National GOK counterpart funds to programme account according to the approved work plans and as advised by Chief Officer responsible for the Programme through a disbursement request. 3. County Treasury shall open a Programme specific account: (a) Chief officer responsible for County Treasury will grant authority to the Chief Officer responsible for the programme to open a programme specific account at any approved commercial bank where funds (from Sweden and National and County governments) shall be deposited for the implementation of the Programme activities by CPS. (b) Chief Officer responsible for county Treasury shall issue AIE to the County Programme Co-ordinator to appropriate programme funds (in accordance with PFMA rules and regulations, manual for programme financial management and procurement. (c) County Treasury Chief officer shall assign an accountant to be responsible for the affairs of the programme. 4. Prepare financial reports: (a) Programme co-ordinator shall prepare programme financial reports twice a year (January and July). These reports shall be approved by CSC before they are submitted to the National Treasury through the County Treasury and subsequent sharing with the NPS. (b) CPS through the respective Chief Officer responsible for the programme shall submit monthly internal financial reports/SOEs to the National Treasury through County Treasury and subsequent sharing with NPS. 5. Provide audit services: (a) County Treasury shall ensure programme is audited continuously and report shared with CO Finance, CO responsible for programme, CPS and CSC. (b) The internal audit shall inform the CO responsible for programme of any suspected corruption noted during the course of audit. (c) County internal audit shall provide information to KENAO and External Rolling Audit when requested. 6. Authorized bank signatories: (a) The mandatory bank signatories shall be the county ASDSP co-ordinator and the assigned accountant responsible for the programme. III. Entry into Force Duration and Validity 1. This agreement shall be valid from the date of the execution by the parties herein to the end of the project period as stated in the specific agreement or such a later date as maybe modified by the National Treasury and the GOS. 2. This Moue may become invalid in the event of cancellation of the specific agreement before the end of the programme period. IV. Settlement of Disputes 1. In the event of any difference(s) or dispute (s) arising out of the interpretation or application of the provisions of this MOU, the Parties shall immediately consult each other with the view to expeditiously resolving such differences or disputes in a spirit of mutual understanding and co-operation. 2. In the event that the parties fail to agree as stated above, the provisions of the Intergovernmental Relations Act, 2012 shall apply. V. Notices Notices and other communications on the project financial management shall be sent to the addresses stated herein or to any other address notified in writing by either party to the other as its new address for such purposes. VI. Legal Implication This MOU constitutes a statement of the mutual intentions of the Parties with respect to its contents and is meant to bind the Parties to implement an agreement that the National Government has entered with a foreign county (Sweden) as part of the conditional grants to help the people of Kenya improve their lives. VII. General Provision The Parties to the MOU are both subject to the Laws of Kenya and where there are any changes to the present institutional or legislative frameworks under such Laws of Kenya, the Parties to the MOU are subject to such institutional or legislative changes. 4556 4556 IN WITNESS WHEREOF this MOU has been executed by the duly authorized representatives of the parties as set out below: On behalf of the National Government WILLY BETT, Cabinet Secretary, Ministry of Agriculture, Livestock and Fisheries. On behalf of the County Government of Migori ZACHARY OKOTH OBADO, Governor, Migori County. Dated the 7th December, 2017. MR/5920901