The Office of the Controller of Budget (OCOB) is pleased to present the Annual National Government Budget Implementation Review Report (BIRR) for the Financial Year (FY) 2017/18, covering the period of July, 2017 to June, 2018. This report has been prepared in accordance with Article 228 (6) of the Constitution of Kenya (CoK), 2010 and Section 9 (1) of the Controller of Budget Act, 2016, which requires the Controller of Budget (COB) to submit to both Houses of Parliament quarterly budget implementation reports for both the National and County Governments. This report provides valuable information on the National government budget and its performance for the FY 2017/18 and also compares budget performance in the current year with that attained in the previous financial year of 2016/17. The information contained in this report includes; annual budget allocation to National Government Ministries, Departments and Agencies (MDAs), analysis of budget allocation by sector and programmes, receipts into and withdrawals from the Consolidated Fund, and, expenditure by MDA, sector and programme. In the report, expenditure is categorized into development and recurrent components and is summarized by major economic items. The information contained in this report is based on analysis of financial and non-financial reports received from MDAs in line with Section 83(4) of the Public Finance Management Act, 2012, expenditure data from the Integrated Financial Management Information System (IFMIS), and OCOB records on exchequer issues. It identifies the key issues that affected budget implementation during the reporting period and contains appropriate recommendations to address these issues in order to enhance future budget implementation. I would like to thank all members of staff at OCOB who were involved in the preparation of this report and staff from MDAs who submitted financial and non-financial performance reports that formed the basis of this report. The report provides useful information on budget implementation to various stakeholders including policy makers, legislators, researchers, analysts and members of the public. It is my expectation that this information will be useful in making timely decisions relating to budget implementation, and also provide opportunity to members of the public to interrogate how public funds have been utilized. In addition, their contributions will enhance prudent use of public funds and delivery of services by the Government to the citizenry.