The National Treasury has announced plans to roll out major reforms to tighten financial controls, boost transparency, and improve public service delivery by the government.
The initiative, dubbed Treasury Single Account (TSA), is expected to take effect in July and is aimed at consolidating government funds into a unified system, which will eliminate inefficiencies and reduce opportunities for graft.
“These reforms are timely and transformative. They will not only tighten controls and improve fiscal oversight, but also ensure value for money and greater efficiency in public service delivery,” Treasury PS Chris Kiptoo said in Nairobi on Friday.
Starting in July, even the settlement of Kenya's debt, both internal and external, will be done automatically, owing to the rollout of the TSA initiative. The new system will streamline payment processes, ensuring clear tracking, digital approvals, and improved accuracy in financial records, enhancing efficiency in managing public debt.
Apart from the automatic debt settlement, the system has introduced other reforms, including Invoice Twinning, a process that will link supplier invoices directly to exchequer releases, eliminating the risk of unauthorised voiding or selective payments.
Invoice Twinning will first begin with the national government, then trickle down to counties upon full automation of county exchequer processes.
Additionally, the Treasury will implement a Just-In-Time disbursement model, ensuring that funds are released only when verified payment needs arise. This will optimise cash flow and prevent unnecessary borrowing, reducing Kenya’s debt burden.
To facilitate the automation of public debt settlement, the system will integrate payment processes, enabling traceable workflows, electronic approvals, and enhanced reconciliation, according to the PS.
With the implementation of the system, the government will now be able to see exactly how much money state-owned companies have at any given time. The aim is to help officials manage funds better, prevent waste, and make smarter financial decisions.
“To improve cash visibility, the reform will introduce capabilities for greater visibility of State-Owned Enterprises (SOEs) cash resources, thus providing updated information on available cash resources, enabling more financial discipline,” the PS said.
The National Treasury is teaming up with the Central Bank of Kenya, which is upgrading its T24 Core Banking System to Version R23 to support the reforms.
Kiptoo made the announcement on Friday during a high-level review meeting at the National Treasury buildings that brought together senior representatives from key fiscal and oversight institutions.
The treasury aims to align itself with global standards with the implementation of the TSA which is a globally recognized best practice.
