The National Treasury has refuted media reports alleging irregular withdrawals of Ksh 1.3 trillion from the Exchequer, assuring Kenyans that no public funds have been lost or misappropriated.
Treasury PS: All Transactions Follow Due Process
In a statement on Sunday, National Treasury Principal Secretary Chris Kiptoo dismissed the claims, emphasizing that all financial transactions adhere to strict legal and financial scrutiny.
“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,” Kiptoo stated.
He further explained that the government is automating the Exchequer system to improve efficiency and financial oversight.
Automation to Strengthen Financial Oversight
The Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget (CoB), launched a major reform initiative on July 1, 2024, aimed at digitizing the Exchequer process.
The move is expected to:
✅ Improve accountability
✅ Reduce processing time
✅ Strengthen financial oversight
However, some transactions—including debt payments, county allocations, the Judiciary Fund, and the Equalisation Fund—still require separate approval processes and are yet to be fully integrated into the digital system.
“These transactions were not included in the first phase of automation due to their distinct approval processes. Full integration is expected by the end of the 2024/25 financial year,” Kiptoo clarified.
Treasury Reaffirms Commitment to Transparency
Kiptoo reiterated the government’s commitment to prudent financial management, stating that once the Treasury receives the official Controller of Budget report, a detailed response will be provided.
“The National Treasury remains committed to transparency, accountability, and safeguarding public resources in line with its mandate,” he affirmed.
Digital Transformation in Public Finance
As part of ongoing financial reforms, all National Government Ministries, Departments, and Agencies (MDAs) have successfully transitioned to the automated Exchequer system. This ensures that all Exchequer requests and approvals by the Controller of Budget are processed digitally, enhancing efficiency and oversight.
The Treasury’s assurance comes amid heightened public interest in government expenditure, financial reforms, and accountability in Kenya. As the 2027 General Election approaches, transparency in public finance remains a critical issue for both the government and the electorate.
