NAIROBI, Kenya, Mar 3 – The National Treasury has addressed concerns regarding the government’s withdrawal of Sh1.3 trillion from the exchequer within a seven-month period.
In a statement issued Sunday, Treasury Principal Secretary Chris Kiptoo reassured the public that all exchequer withdrawals, whether conducted manually or electronically, are subject to stringent oversight and compliance with legal procedures.
He emphasized that no public funds had been misappropriated or lost during this process.
Kiptoo further explained that until the conclusion of the 2023/24 financial year, Exchequer requests and withdrawals were processed manually, owing to the absence of an automated system.
Each withdrawal, he said, was carefully scrutinized and approved by the Controller of Budget, ensuring adherence to public finance regulations.
“All withdrawals followed strict legal and financial procedures, with every transaction subject to review and approval by the Controller of Budget, ensuring full compliance with public finance regulations,” Kiptoo’s statement read in part.
According to the PS, Treasury had, in an effort to improve efficiency and oversight, partnered with the Central Bank of Kenya (CBK) and the Controller of Budget in July last year to launch a reform aimed at automating the Exchequer process.
Kiptoo explained that this reform was designed to streamline operations, reduce processing times, and bolster accountability.
As of now, all National Government Ministries, Departments, and Agencies (MDAs) have transitioned to the automated system, which allows for the digital processing of Exchequer requests and approvals.
However, Treasury clarified that certain transactions, such as debt payments, transfers to counties, the Judiciary Fund, and the Equalization Fund, were excluded from the first phase of automation due to their unique approval processes.
These transactions, Kiptoo said, are in the process of being integrated into the system, with full automation expected to be achieved by the end of the 2024/25 financial year.
The National Treasury has also pledged to provide a detailed response once the official report from the Controller of Budget is received.
