Treasury Cabinet Secretary John Mbadi has assured Senators that the government is committed to improving accountability and transparency in the management of public funds through the implementation of the Treasury Single Account (TSA).
Speaking before the Senate Standing Committee on Devolution and Intergovernmental Relations, Mbadi said the Cabinet had already approved the roll-out of the TSA system, which aims to consolidate all government revenues into a single account at the Central Bank of Kenya.
This move follows revelations from a report by the Controller of Budget that counties are currently operating 1,854 commercial bank accounts, against the Public Finance Management Regulations, 2015.
This large number of accounts has raised concerns over lack of transparency, making it difficult to track spending and increasing the risk of public funds being misused.
“The implementation of this policy is part of the broader TSA action plan that is expected to improve financial governance and control over public funds. The goal is to ensure full accountability in how taxpayer money is used,” said Mbadi, who is also the former MP for Suba South.
The TSA is a government financial system that allows all public funds to be collected, managed, and monitored from a single account.
It is expected to curb fraud and mismanagement by providing a centralised and transparent view of how resources are being spent.
Senators welcomed the initiative but urged the Treasury to work closely with the Council of Governors and the Senate Finance Committee to develop a version of the TSA policy that balances the interests of both levels of government.
They also called for a hybrid model that would allow the National Treasury to view the balances in county commercial bank accounts without directly controlling the funds.
“The Ministry needs to review the current laws to clearly define when and how county governments can open commercial bank accounts,” said Senator Mohamed Abbas, Chair of the Committee.
“Counties must also be compelled to fully disclose all their financial accounts.”
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