In a pivotal move to enhance public finance management, the Cabinet has approved the implementation of the Treasury Single Account (TSA) for National and county governments.
During a cabinet meeting chaired by President William Ruto at State House Nairobi today, the Cabinet underscored the importance of the TSA in simplifying government banking, creating visibility of government cash resources and increasing transparency in government cash management.
Additionally, the new system will help control expenditure and minimise fragmentation of government accounts in commercial banks.
The structure of the TSA will include the National Exchequer Account, the TSA Sub-Account and the County Revenue Fund.
Speaking on the matter, President Ruto said: “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.”
The Cabinet has also approved the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments. This move aims to enhance fairness, equity, transparency, competitiveness and cost-effective public procurement, potentially reducing costs by between 10 and 15 per cent, saving the government KSh90 billion yearly in public procurement expenditure.
Story by PCS
