Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Treasury to collapse its multiple accounts to one based at CBK

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.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...