The Treasury has responded to claims in a section of the media suggesting irregularities in Exchequer withdrawals, amounting to Ksh 1.3 trillion in just seven months.
In a statement Sunday, National Treasury PS Chris Kiptoo dispelled the allegations of irregularities, assuring that at no point has public money been lost or misappropriated.
However, he explained that the automation of the Exchequer process is underway, and some transactions, including debt payments, transfers to counties, the Judiciary Fund, and the Equalisation Fund, had not been integrated due to their distinct approval processes.
On 1st July 2024, the National Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget (CoB), launched a major reform initiative to automate the Exchequer process to enhance efficiency, reduce processing time, improve accountability, and strengthen financial oversight.
“However, certain transactions—including debt payments, transfers to Counties, the Judiciary Fund, and the Equalisation Fund—were not included in the first phase of automation due to their distinct approval processes. The integration of these transactions into the automated system is currently underway, with full automation expected by the end of the 2024/25 financial year,” said Kiptoo.
He went on to affirm that all withdrawals, whether processed manually or electronically, are subject to strict legal and financial oversight.
“ Every transaction undergoes due diligence and approval by the Controller of Budget, ensuring full compliance with public finance regulations. At no point has public money been lost or misappropriated through this process,” he stated.
He said Treasury was ready to provide a comprehensive response to the concerns once it receives the official report from the Controller of Budget.
“Once the Treasury receives the official report from the Controller of Budget, a comprehensive response will be provided to address any further concerns”, he said.
As part of the reforms, all National Government Ministries, Departments, and Agencies (MDAs) have been successfully onboarded onto the automated system, ensuring that Exchequer requests and approvals by the CoB are processed digitally.
He added, “ The National Treasury remains committed to transparency, prudent financial management, and safeguarding public resources in line with its mandate”.
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