The Office of the Controller of Budget (OCOB) is pleased to present the Annual Budget Implementation Review Report (BIRR) for the Financial Year (FY) 2015/16. The report covers the period of July 2015 to June 2016 and has been prepared in fulfilment of Article 228(6) of the Constitution of Kenya, 2010 which requires the Controller of Budget (COB) to submit a report on the implementation of the budgets of both the National and the County Governments to each House of Parliament every four months. The report reviews budget implementation by the National Government Ministries, Departments and Agencies (MDAs) and presents the revenue, expenditure and program performance. The performance is compared to the FY 2015/16 approved targets and estimates and is based on expenditure reports from the Integrated Financial Management and Information System (IFMIS) and financial reports received from the MDAs and the National Treasury. The report further identifies some of the key challenges that faced budget implementation in the FY 2015/16 and makes appropriate recommendations. Through this report, the Office endeavours to contribute towards enhancing prudent financial management in the public sector and will continue to publish regular reports on budget implementation for dissemination to the public. Further, this report also informs the Legislature and the Executive on the progress made towards achieving the FY 2015/16 budget goals. This report is a good step in providing valuable information on budget implementation by National Government entities. I therefore urge the readers of this report to effectively use the information contained in this report in holding the players in budget implementation to account. It is also my hope that the report will inform policy decisions and ultimately contribute to improvement of budget performance in the Country.