The National Treasury has dismissed media reports alleging irregular withdrawals of Ksh 1.3 trillion from the Exchequer over seven months, assuring the public that no money has been lost or misappropriated.
In a statement on Sunday, National Treasury Principal Secretary Chris Kiptoo refuted the claims, emphasizing that all transactions have followed due process. He explained that the government is in the process of automating the Exchequer system to enhance efficiency and oversight.
However, some transactions—such as debt payments, county allocations, the Judiciary Fund, and the Equalisation Fund—still require separate approval procedures and have not yet been fully integrated into the digital system.
Kiptoo highlighted that on July 1, 2024, the National Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget (CoB), launched a major reform initiative to digitize the Exchequer process. The goal is to improve accountability, reduce processing time, and strengthen financial oversight.
“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 distinct approval processes. The integration of these transactions into the automated system is currently underway, with full automation expected by the end of the 2024/25 financial year,” said Kiptoo.
He reassured Kenyans that all withdrawals—whether processed manually or electronically—undergo rigorous 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 through this process,” he stated.
Kiptoo further emphasized the Treasury’s commitment to transparency and accountability. He noted that the ministry is ready to provide a detailed response once it receives the official report from the Controller of Budget.
“Once the Treasury receives the official report from the Controller of Budget, a comprehensive response will be provided to address any further concerns,” he added.
As part of ongoing financial reforms, all National Government Ministries, Departments, and Agencies (MDAs) have successfully transitioned to the automated Exchequer system. This shift ensures that Exchequer requests and approvals by the CoB are processed digitally, boosting efficiency and accountability.
Reaffirming the government’s dedication to prudent financial management, Kiptoo assured the public that the Treasury remains committed to protecting public funds.
“The National Treasury remains committed to transparency, prudent financial management, and safeguarding public resources in line with its mandate,” he stated.