The Cabinet has today Monday, January 15, given the green light for the implementation of a new banking system known as the Treasury Single Account (TSA) for both the national and county governments. This move, approved during a meeting chaired by President William Ruto, aims to streamline government banking and enhance transparency in financial management.

According to the Cabinet, the TSA will simplify government banking, create visibility of government cash resources, and increase transparency in government cash management.

In a statement, the Cabinet emphasized the need to control expenditure and minimize fragmentation of government accounts in commercial banks, ensuring that all benefits of public funds accrue only to the people of Kenya.

President William Ruto expressed his support for the new system, stating, “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.”

In addition to the TSA, the Cabinet has also approved the implementation of Electronic Government Procurement (e-GP) in both the national and county governments. This move is expected to significantly reduce costs and save the government approximately Ksh90 billion yearly in public procurement expenditure.

The e-GP system is set to drive the Bottom-Up Economic Transformation Agenda, promoting sustainable and inclusive economic growth through the digitization and automation of public procurement and asset disposal processes.

Furthermore, the Cabinet has given the green light to the Public-Private Partnership Regulations, aimed at improving the structure and performance of PPP projects. These regulations will provide clear guidelines for planning, procurement, management, and monitoring of PPP projects, aligning with the government’s legacy plan. The regulations will be forwarded to Parliament for approval.