Kisii Senator Richard Onyonka has sought further clarification concerning reports of irregular withdrawals of up to Ksh1.3 trillion from the exchequer account at the Central Bank of Kenya (CBK) by both counties and national governments in just seven months.
In a statement on Wednesday, March 5, the Senator noted the seriousness of the matter and raised five major concerns that needed immediate clarification.
"This matter calls for serious questions regarding compliance with the public finance acts, appropriateness of the oversight bodies, and risk of financial mismanagement," part of the statement read.
He first sought clarification on the legal and propriety of manual withdrawals and whether they were in accordance with the provisions of the Finance Management Act, 2012.
Secondly, he requested necessary authorities to clarify the precise destinations and recipients of the withdrawn funds, including the ministries, departments, agencies, and counties they ended up in.
He further sought clarity on the role the Controller of Budget (CoB) played in sanctioning the transactions and whether due process was followed in the pursuit of financial accountability.
His fourth clarification request was what efforts had been made to prevent such withdrawals in the future and ensure total automation of the exchequer process.
Lastly, he requested to know the impact of such withdrawals on the country's budget, public debt, and allocations in counties.
These demands come just days after reports emerged that both governments had bypassed the automated system to withdraw the Ksh1.3 trillion for payments of debt, pensions, and other expenditures in just seven months.
Subsequently, the Ministry of Treasury quickly debunked the report that had been published in the Daily Nation on February 2 claiming that the withdrawals had been made between July 12, 2024 and February 20, 2025.
In the statement, the Treasury stated that although most transactions in Ministries, Departments, and Agencies (MDAs) had been automated, some required a more intricate clearance process and thus had yet to be digitised.
However, Treasury Principal Secretary Chris Kiptoo emphasised that stringent oversight had been put in place to ensure all withdrawals were accurately accounted for.
"A section of the media has today published a report suggesting irregularities in Exchequer withdrawals, particularly claims of a Ksh1.3 trillion withdrawal over seven months. While we await the official report from the Controller of Budget, the National Treasury wishes to clarify the facts," read part of the statement dated February 2.
"Until the end of the 2023/24 financial year, Exchequer requests and withdrawals were processed manually, as the system had not yet been automated. However, 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," the statement read further.
