Treasury to pay suppliers directly by-passing ministries

January 28, 2019
Treasury Cabinet Secretary Henry Rotich said the ministry had linked the Integrated Financial Management Information System (IFMIS) to the Central Bank ahead of the implementation of the new guidelines.

, NAIROBI, Kenya, Jan 28 – The National Treasury has announced plans to pay private companies providing services to various government entities directly from the consolidated fund, centralizing financing of government expenditure.

Treasury Cabinet Secretary Henry Rotich on Monday said the ministry had linked the Integrated Financial Management Information System (IFMIS) to the Central Bank ahead of the implementation of the new guidelines.

“Cash management is now done under IFMIS and we’ve integrated this with the Central Bank so that very soon we should be able to pay suppliers directly from the Treasury and Central Bank rather than have many accounts in the various ministries,” he said during a forum on open governance.

Rotich said the move was part of government’s commitment to open governance in a bid to eradicate rampant corruption in State entities.

“We’ve embraced e-citizen which means people are now paying for government services electronically and we’ve replicated the same when it comes to payment of taxes through the tax portal,” he said.

Rotich also said the National Treasury is also set to apply sanctions on State agencies yet to comply with an Executive Order requiring them to publish details of companies they award contracts, adding that the penalties will include suspension of funding.

State entities found to have violated the Executive Order issued by President Kenyatta on June 13 last year, he said, will be unable to transact on IFMIS.

“We’re already implementing the Executive Order requiring all contracts are published on an online platform. We shall also suspend exchequer release for agencies that are not aligned to the directive,” the CS asserted.

Rotich said treasury would soon roll out an end-to-end procurement module through which government agencies shall float tenders through IFMIS.

“We’re going to expand the IFMIS module on procurement so that procurement is initiated electronically.  Preparation of tender documents, invitation, submission, opening, and rejection of tenders shall all be done electronically,” he noted while outlining new measures to eradicate rampant corruption in the public sector.

Speaking at the Monday forum where he launched of the third national action plan on Open Governance Partnership (OGP), a global initiative launched in 2011 which Kenya has been part of for eight years now, Deputy President William Ruto directed the National Treasury to submit a list of public entities yet to comply with the June 13 Executive Order.

The DP directed Rotich to file a report with the Head of Public Service Joseph Kinyua within 30 days for action.

“I want Treasury to forward a list of all public entities that have refused to comply with Executive Order 2 of 2018 so that we can take head-on boards and chief executives of these institutions because they’re pulling us back,” he said during the forum.

Ruto said the government will not backtrack on its commitments under the 2018/20 National Action Plan on open governance saying all government entities must align their operations with the Executive Order published on June 13 last year.

“It is not a request that President Uhuru Kenyatta was making; it is a demand. All public entities must publish their contracts, the beneficiaries, and directors of companies doing business with government,” he affirmed.

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