Treasury to collapse its multiple accounts to one based at CBK

March 31, 2017 (5 weeks ago)
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The proposed Single Account will be housed at the Central Bank of Kenya/FILE

, NAIROBI, Kenya, Mar 31 – The government will operationalise treasury single account starting July 2017 as it seeks to enhance transparency and accountability in the use of public resources and cut corruption.

Treasury Cabinet Secretary Henry Rotich says this is part of the government’s plan to cut unnecessary expenditure and keep government spending in control, though analysts have faulted the Treasury’s multiple accounts as one of the loopholes contributing to misappropriation of funds.

The proposed Single Account will be housed at the Central Bank of Kenya.

The national treasury is at the same time creating a database of all bank accounts run by government ministries, departments and agencies to ensure prudent management of the funds in both the Central Bank and commercial banks.

Other measures include improving implementation and absorption capacity of projects and curbing none priority expenditure.

“We have issued guidelines on how capital projects should be planned appraised and evaluated before funds are finally committed in the budget,” Rotich said in his Budget speech on Thursday.

The government also plans to review delivery process such as transport services, financial and audit services in order to ensure value for money and efficiency in expenditure management.

The move comes as the government has been hard hit by the loss of billions through questionable deals in various ministries including the National Youth Service (NYS), the Health sector scandal among others.

The Integrated Financial Management Information System (IFMIS) – which has been touted as the silver bullet in streamlining government spending and procurement – has faced criticism after questionable transactions went through the system.

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