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In a significant move aimed at improving public finance management, the Cabinet, chaired by President William Ruto, has granted approval for the implementation of the Treasury Single Account (TSA) for both National and county governments.
During the cabinet meeting held at State House Nairobi on Monday, the Cabinet emphasized the importance of the TSA in streamlining government banking, providing visibility of government cash resources, and enhancing transparency in cash management. The new system is expected to aid in controlling expenditure and reducing fragmentation of government accounts in commercial banks.
The structure of the TSA will consist of the National Exchequer Account, the TSA Sub-Account, and the County Revenue Fund.
Addressing the matter, President Ruto stated, “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 given the green light for the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments. This initiative aims to enhance fairness, equity, transparency, competitiveness, and cost-effective public procurement, potentially saving the government Ksh.90 billion annually in public procurement expenditure.
The e-GP system aligns with the Bottom-Up Economic Transformation Agenda, promoting sustainable and inclusive economic growth through the digitization and automation of public procurement and asset disposal processes.
Additionally, the Cabinet approved Public-Private Partnership Regulations to enhance the structure and performance of PPP projects, contributing to a stable environment for public and private entities involved in PPPs.
To strengthen Kenya as a regional logistics hub, the Cabinet approved the Railway Amendment Bill 2024, which proposes new ways of managing railways and separating the business of freight, commuter, and land development.
Addressing climate change challenges, the Cabinet approved Kenya’s Sovereign Green Bond Framework, seeking alternative funding options for green and resilient investments amid rising climate change costs.
The Cabinet also granted approval for the draft Kenya Social Protection Policy 2023, aimed at providing support to the poor and vulnerable, aligning with constitutional mandates and national development goals to alleviate poverty and promote inclusive growth.
Other agendas approved by the Cabinet include the Recognition of Prior Learning Policy, Establishment of the African Legal Support Facility, and the Memorandum to Join the Asian Infrastructure Investment Bank.
