The Offi ce of the Controller of Budget (OCOB) is pleased to present the Annual Budget Implementation Review Report (BIRR) for the Financial Year (FY) 2014/15. It covers the period July 2014 to June 2015 and has been prepared in fulfi lment of Article 228(6) of the Constitution of Kenya, which requires OCOB to submit to both Houses of Parliament a report on the implementation of the budgets of the National and County governments every four months. The report has been prepared at a time when the Government has intensifi ed the fi ght against corruption, which will boost prudent and responsible use of public money as envisaged in Article 201 of Constitution of Kenya, 2010. Further, this renewed fi ght against corruption will enhance confi dence in public institutions and also improve service delivery to Kenyans. This report examines budget implementation by the National Government Ministries, Departments and Agencies (MDAs), and provides analysis of revenue, expenditure, and program performance. The analyses contained in this report are based on exchequer issues to the MDAs, expenditure reports generated from the Integrated Financial Management System (IFMIS) and fi nancial reports from the MDAs. The report also highlights the challenges that faced budget implementation during the reporting period and makes recommendations to address these challenges. MDAs are expected to implement these recommendations in order to ensure optimal budget execution. Through release of quarterly BIRRs, the Offi ce endeavours to promote effi cient and effective fi nancial management in the public sector. Further, the Offi ce remains steadfast in ensuring that information on budget implementation is publicized to the members of the public and they are given an opportunity to interrogate how public funds are being utilised. The report is also intended to create awareness among legislators, policy makers and all other stakeholders. I therefore urge the readers of this report to take an active interest in budget formulation, implementation, and, the monitoring and evaluation of implemented activities. By taking an active interest in the budget cycle, stakeholders will contribute towards ensuring that public funds are used prudently and the Government delivers on its objectives and promises to the citizenry.