is my great pleasure to present the Annual National Government Budget Implementation Review Report (BIRR) for the Financial Year 2016/17. This report presents the aggregate performance of budget implementation by Ministries, Departments and Agencies (MDAs) of the National Government for the twelve months ending in 30th June, 2017 and marks the end of the first five years since implementation of the devolved system of governance in Kenya. The report is prepared in line with Article 228 (6) of the Constitution of Kenya, 2010 and Section 9 of the Controller of Budget Act, 2016 which require the Controller of Budget (COB) to submit to each House of Parliament a report on the implementation of the budgets of National and County government every four months. The Government through the FY 2016/17 Budget Policy Statement (BPS) had anticipated sustained economic growth. The key features of the National Government Budget for FY 2016/17 were to improve the business environment by improving security, maintaining macro-economic stability and reducing the cost of doing business so as to encourage investment opportunities in the Country. The Government had committed to continue spending on infrastructure to unlock constraints to growth and continue spending on all sectors to create employment. In addition, the Government had planned to sustain investment in social services for the welfare of Kenyans by investing in quality and accessible health care services and education and strengthening the social safety nets. Similarly, the Government committed to enhance service delivery through devolution by consolidating the gains already made in the devolved units in order to provide better service delivery to the citizenry. The foregoing shaped the budget programmes and projects, and formed the basis for the MDAs budget implementation review by the Office of the Controller of Budget. The report provides information on the implementation status of budgets of the National Government Ministries, Departments and Agencies (MDAs) for FY 2016/17. It provides the overall budget performance in both revenue and expenditure and identifies key challenges that hampered implementation to achieve budget objectives. This report is largely based on analysis of expenditure returns and financial reports submitted by the respective MDAs and supported by expenditure data generated from the Integrated Financial Management Information System (IFMIS). The information is also informed by continuous monitoring of receipts into the Consolidated Fund and exchequer issues to the MDAs approved by the Controller of Budget and corroborated with data provided by the National Treasury (NT). The information published in the Budget Implementation Review Report is disseminated to the wider public in line with Section 39 (8) of the PFM Act, 2012, which requires the Controller of Budget to ensure that the public has access to information on budget implementation. Public participation in budget monitoring is a key principle in Public Finance. This report is therefore, intended to create awareness and share information on budget implementation among stakeholders including but not limited to; Legislators, Policy makers, and the Public. The Office calls upon readers of the report to take keen interest on the information provided on implementation of the budget in order to interrogate the use of public resources in line with underlying budget policy guidelines and priorities by the Government. This will provide the necessary impetus for optimal utilization of public resources for the benefit of all Kenyans.