National Treasury and Economic Planning has explained claims of withdrawal of Ksh1.3 trillion from the exchequer accounts.
In a statement issued on Sunday, March 2, Treasury Principal Secretary Dr. Chris Kiptoo clarified that all withdrawals followed strict legal and financial procedures, with every transaction subject to review and approval by the Controller of Budget (CoB).
He emphasized that there has been no misappropriation of public funds.
“A section of the media has today published a report suggesting irregularities in Exchequer withdrawals, particularly claims of a Ksh 1.3 trillion withdrawal over seven months. While we await the official report from the Controller of Budget, the National Treasury wishes to clarify the facts,” read the statement.
According to treasury PS, the Treasury acknowledged that until the end of the 2023/24 financial year, exchequer requests and withdrawals were processed manually due to a lack of an automated system.
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However, despite this manual process, all transactions complied with public finance regulations.
To enhance efficiency and accountability, the Treasury launched an automated system on July 1, 2024, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget.
This digital transformation aims to streamline the processing of exchequer requests, improve oversight, and reduce delays in fund disbursement.
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Further treasury explained that the new system has successfully integrated all National Government Ministries, Departments, and Agencies (MDAs).
However, some transactions—including debt payments, transfers to counties, the Judiciary Fund, and the Equalisation Fund—were not included in the first phase due to their unique approval processes. Full automation of all transactions is anticipated by the end of the 2024/25 financial year.
Kiptoo Emphasizes Due Diligence in Both Manual and Electronic Withdrawal Processes
Dr. Kiptoo emphasized that all withdrawals, whether processed manually or electronically, are subject to thorough due diligence and scrutiny to ensure compliance with public finance laws.
“The National Treasury firmly affirms that all exchequer withdrawals undergo strict legal and financial oversight. At no point has public money been lost or misappropriated through this process,” he stated.
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The Treasury also assured the public that it will provide a comprehensive response once it receives the official report from the Controller of Budget.
“The National Treasury remains committed to transparency, prudent financial management, and the safeguarding of public resources in accordance with its mandate,” the statement concluded.
This clarification was issued in response to concerns raised about the scale of withdrawals reported in the media, which allegedly bypassed the automated financial system meant to ensure transparency, suggesting financial mismanagement.
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