The National Treasury has dismissed claims of irregularities in the withdrawal of Sh1.3 trillion over seven months, stating that all transactions adhered to legal and financial oversight procedures. Treasury Principal Secretary (PS) Chris Kiptoo clarified that no public funds have been lost or misappropriated through the process.
In a statement responding to a report by a local daily, Kiptoo assured that all Exchequer withdrawals—whether conducted manually or electronically were subject to strict scrutiny and approval by the Controller of Budget (CoB).
“The National Treasury categorically affirms that all Exchequer withdrawals, whether processed manually or electronically, are subject to strict legal and financial oversight. 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 through this process,” Kiptoo stated.
He reiterated the Treasury’s commitment to transparency and prudent financial management, emphasizing that once an official report from the Controller of Budget is received, a comprehensive response will be provided to address any further concerns.
The PS explained that until the end of the 2023/24 financial year, Exchequer requests and withdrawals were processed manually as the system had not yet been automated. However, he maintained that all transactions were executed in accordance with strict legal and financial procedures, with every transaction reviewed and approved by the CoB.
To enhance efficiency and accountability, Kiptoo revealed that the National Treasury, in collaboration with the Central Bank of Kenya (CBK) and the CoB, initiated a reform process to automate the Exchequer withdrawal system. The automation process, which began at the start of the current financial year, has successfully onboarded all National Government Ministries, Departments, and Agencies (MDAs) onto the digital system, ensuring Exchequer requests and approvals are processed electronically.
However, certain transactions including debt payments, transfers to counties, the Judiciary Fund, and the Equalisation Fund were not included in the first phase of automation due to their unique approval processes.
The Treasury reassured the public of its unwavering commitment to fiscal discipline and the safeguarding of public resources in line with its mandate.
