The Cabinet on Monday approved the implementation of the Treasury Single Account (TSA) for the national and county governments.
TSA is an accounting system that calls for the use of a single account or linked government bank accounts to allow easy access by different ministries and enhance transparency.
Following a meeting chaired by President William Ruto on Monday, the cabinet observed that the TSA will simplify government banking, create visibility of government cash resources, and increase transparency in government cash management.
"The new system will help control expenditure and minimise fragmentation of government accounts in commercial banks," the cabinet stated in a dispatch.
President Ruto remarked that the era of government funds being deposited in commercial bank accounts with individuals earning interest must stop.
"Government funds are banked in commercial bank accounts and individuals keep earning interest. This must stop. All the benefits of public funds must only accrue to the people of Kenya and no one else,” he stated.
The new system will include the National Exchequer Account, the TSA Sub-Account, and the County Reverse Fund.
Besides the TSA, the cabinet also approved the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments.
Through this approval, the government seeks to enhance fairness, equity, transparency, competitiveness, and cost-effective public procurement.
It is also expected to reduce costs by between 10 and 15 per cent and save the government approximately Ksh90 billion yearly in public procurement expenditure.
"The e-GP system is set to drive the Bottom-Up Economic Transformation Agenda, promoting sustainable and inclusive economic growth through the digitisation and automation of public procurement and assent disposal processes," read part of the statement from the cabinet.
Additionally, the Cabinet approved the Public-Private Partnership Regulations to improve the structure and performance of PPP projects. The regulations will be forwarded to Parliament for approval.
These regulations provide clear guidelines for planning, procurement, management, and monitoring of PPP projects, aligning with the government's legacy plan.
