The Cabinet, chaired by President William Ruto, has given the nod to the implementation of the Treasury Single Account (TSA) for both National and county governments.
This move announced on Monday, January 15, is designed to streamline public finance management, enhance transparency, and consolidate government funds currently spread across commercial banks.
During the State House Nairobi meeting, the Cabinet emphasized the significance of the TSA in simplifying government banking, creating visibility of cash resources, and controlling expenditure to reduce fragmentation of government accounts.
President Ruto stated, “All the benefits of public funds must only accrue to the people of Kenya and no one else. Government funds earning interest in commercial bank accounts is a practice that must come to an end.”
The TSA structure will include the National Exchequer Account, the TSA Sub-Account, and the County Revenue Fund.
In a bid to revolutionize public procurement, the Cabinet has also given the green light to the implementation of the Electronic Government Procurement (e-GP) system at both the National and county levels. Anticipated to reduce costs by 10-15%, saving the government KSh90 billion annually, the e-GP system aligns with the Bottom-Up Economic Transformation Agenda.
President Ruto emphasized that this digitization initiative would promote sustainable and inclusive economic growth by enhancing fairness, equity, and transparency in public procurement processes.
The Cabinet’s progressive decisions extended to the approval of Public-Private Partnership Regulations, aimed at improving the structure and performance of PPP projects.
This move aligns with the Bottom-Up Economic Transformation agenda, emphasizing transparency and incorporating environmental and climate change principles. The regulations will now proceed to Parliament for approval.
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