The National Treasury has directed public entities to identify and dispose of obsolete, idle and excess assets by December 31, 2026, warning that retaining unused items increases costs and risks wasting public resources.
In a circular, Treasury Cabinet Secretary John Mbadi instructed accounting officers and heads of public entities to conduct the exercise in line with the Public Procurement and Asset Disposal Act, 2015.
The entities have until December 31, 2026, to submit reports on the progress of the disposal exercise to the Public Procurement Regulatory Authority (PPRA), with a copy to the National Treasury.
Mbadi warned that keeping assets that are no longer in use can lead to further deterioration, loss of value and increased storage and maintenance expenses.
He added that the accumulation of idle assets can cause congestion, raise security concerns and create accountability risks within public institutions.
The Treasury CS directed public entities to complete their asset disposal plans within the relevant financial year rather than carrying them forward to subsequent years.
The National Treasury will work with the PPRA and other oversight institutions to monitor compliance with the directive.
Mbadi also urged public entities to investigate why assets become obsolete, idle or surplus and introduce measures to prevent unnecessary accumulation.
He called on government agencies to adopt digital platforms to improve asset tracking and reporting. He further emphasised the need to ensure that officers responsible for managing and disposing of public assets understand their legal obligations and are held accountable for their actions.
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