In Kenya there exist gaps that have been identified after the development of the new constitution that introduced the devolved system of government which limits the effectiveness of budget implementation. The specific objectives were to assess the effect of legislative oversight and auditing practices on budget implementation in the Ministry of Devolution and ASAL. A descriptive research design was preferred in this study and the population of interest was 154 employees in the finance, planning and accounting departments. Stratified random sampling technique was used to come up with 62 respondents. The study utilized primary data in form of questionnaires and a pilot study to test reliability and validity of the questionnaire was conducted from 16 individuals. Analysis was done quantitatively by use of descriptive statistics and inferential statistics. The study concluded that Parliament plays a key oversight role at the ministry of Devolution and ASAL. The internal control mechanisms enhance budget implementation the ministry of devolution. Effective oversight and audit leads to effective financial decision at the ministry of Devolution and ASAL. The study recommends that government should therefore ensure that parliament is timely in the performance of its duties to enable the effective use of the revenue and spending processes it authorizes. The government should ensure that there is effective oversight and audit to eliminate all the chances of fraud and noncompliance at the ministry.

Key Words:  Public Financial Management, Legislative Oversight, Auditing Practices, Budget Implementation

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