Editor's Review

“At no point has public money been lost or misappropriated through this process."

The National Treasury now says no funds have been lost through the manual withdrawal of Ksh1.3 trillion in seven months.

In a statement on Sunday, March 2, Treasury Principal Secretary Chris Kiptoo said the funds were processed manually since the system is yet to be automated.

PS Kiptoo highlighted that all the withdrawals strictly followed the law and financial procedures with every transaction subjected to review and approval from the Controller of Budget.

“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, all withdrawals followed strict legal and financial procedures, with every transaction subject to review and approval by the Controller of Budget, ensuring full compliance with public finance regulations,” read part of the statement.

The Treasury PS noted that the National Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget on July 1, 2024, launched a major reform initiative to automate the exchequer process.

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File image of Treasury PS Chris Kiptoo. 

According to Kiptoo, the initiative enhances efficiency, reduces processing time, improves accountability, and strengthens financial oversight.

“As part of this reform, all National Government Ministries, Departments, and Agencies (MDAs) have been successfully onboarded onto the automated system, ensuring that Exchequer requests and approvals by the CoB are now processed digitally,” he stated.

PS Kiptoo noted that certain transactions including debt payments, transfers to Counties, the Judiciary Fund, and the Equalization 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,” the Treasury PS remarked.

Further PS Kiptoo reiterated that all exchequer withdrawals, whether processed manually or electronically, are subject to strict legal and financial oversight, and at no point has the money been misappropriated.

“At no point has public money been lost or misappropriated through this process. 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.

The clarification comes after a local daily reported that the national and county governments manually requested the withdrawal of Sh1.3 trillion in just seven months to February 2025, to pay debt, pensions, and other recurrent expenditures.