The Cabinet has already approved the implementation of the Treasury Single Account System, CS Mbadi informs the Senate

The Cabinet has already approved the implementation of the Treasury Single Account System, CS Mbadi informs the Senate

Parliament Buildings 
Thursday, 17th July 2025

The Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, has assured the Senate that his Ministry is doing all it can to enhance accountability and transparency in the use of public resources. 

This revelation comes after the Controller of Budget submitted to the Senate the County Budget Implementation Review Report in compliance with the Constitution, after which it emerged that counties were operating a total of 1,854 commercial bank accounts contrary to the Public Finance Management Regulations, 2015. 

The huge number of commercial bank accounts, in turn, makes it difficult for the Controller of Budget to track county government spending, providing a leeway for the pilferage of public funds in the counties. 

Appearing before the Standing Committee on Devolution and Intergovernmental Relations earlier today, CS Mbadi informed the Members of the Senator Mohamed Abbas-led Committee that the Cabinet had already approved the implementation of the Treasury Single Account (TSA) as mandated by law. 

The TSA is a government financial policy that centralises all government revenues, receipts, and income into a single bank account, typically maintained at the Central Bank of Kenya, aimed at consolidating all public funds into a single or limited account. 

The former Member of Parliament for Suba South Constituency hailed the policy as a significant reform for the country’s public finance management system, which, he says, will reduce the risk of mismanagement and fraud in the country by consolidating public funds in a centralised system.

“The implementation of this policy is part of the broader Treasury Single Account action plan that is expected to improve financial governance and control over public funds. The primary goal of the policy is to ensure accountability and transparency in the use of public resources,” CS Mbadi said.

Senators counselled the National Treasury’s Chief to engage the Council of Governors (CoG) and the Senate Standing Committee on Finance and Budget to jointly develop a TSA policy that addresses the needs and concerns of both the national and county governments and provide an update on the operational status of the policy in relation to county governments.

They tasked the National Treasury to develop a hybrid financial management system that gives the National Treasury visibility of the balances in the commercial bank accounts without directly accessing the resources to ensure fiscal transparency in the counties. 

“Hon. Mbadi, your Ministry needs to review the existing regulations to provide clarity on the requirements for county governments to open commercial bank accounts, and explore options to compel full disclosure of all accounts,” Sen. Mohamed Abbas, the Chairperson of the Committee, said. 

CS Mbadi was appearing before the Devolution Committee as part of the Committee’s ongoing inquiry into the huge number of commercial bank accounts operated by county governments.