I am pleased to present the annual Budget Implementation Review Report (BIRR) for the Financial Year (FY) 2013/14.This report has been prepared pursuant to Article 228(6) of the Constitution of Kenya, 2010 requiring the Controller of Budget to submit to Parliament a report on the implementation of the budgets of the national and county governments every four months. This annual Budget Implementation Review Report presents the aggregate performance of budget implementation by Ministries, Departments and Agencies (MDAs) of the national government for the twelve months period ended June 30th 2014. It is therefore the first annual report since implementation of the devolved system of governance in Kenya. The theme of the National Government Budget for FY 2013/14 was “Transformation for Shared Prosperity”. Government expenditure was aimed at enabling and securing a sustained high and inclusive economic growth and development. This outcome shaped budget programmes and projects, and formed the basis for our review of budget implementation by MDAs. This report is largely based on analysis of expenditure returns by MDAs and is corroborated with expenditure data generated from the Integrated Financial Management Information System (IFMIS). It is also informed by continuous monitoring of exchequer issues and reviews. During the period under review, the National Government experienced transitory challenges in implementing the devolved system of governance that saw 44 ministries collapsed into 18 ministries. These Ministries and other Government Departments and Agencies were regrouped into ten sectors. Public participation and budget monitoring remains a crucial principle in the budget execution process. Therefore, this report is intended to create awareness in budget implementation among legislators, policy makers, the public, and other stakeholders. It also invites them to interrogate use of public resources in line with underlying policy guidelines and priorities by the government. I urge all readers of this report to take keen interest in monitoring implementation of the budget and in scrutinizing the Government’s delivery on promises. This will provide the necessary impetus for optimal utilization of public resources for the benefit of all Kenyans. Mrs. Agnes Odhiambo Controller of Budget