Kenya’s National Treasury is set to launch a new integrated financial management system (IFMS) for both national and county governments by July 2025, according to Treasury Cabinet Secretary John Mbadi. The system is currently 40 percent complete and aims to reduce the billions of shillings lost annually due to inefficiencies in the current financial frameworks.
Mbadi highlighted the importance of the new system, which will consolidate all government financial operations into a unified platform. “My ministry is reviewing IFMIS to ensure we have an integrated system that captures all data. With a click of a button, we can have a complete view of transactions,” he stated.
He acknowledged that although IFMIS was originally designed to unify financial systems, it has struggled to adapt to recent advancements, leading to inefficiencies. “The system has weaknesses that must be addressed, and we are working towards an integrated platform where all transactions are clearly visible,” Mbadi added.
Concerns about financial inconsistencies were raised by Kisii Senator Richard Onyonka, who questioned whether the new system would improve transparency across all levels of government. Onyonka emphasized the need for a streamlined financial interface between county and national governments to prevent mismanagement.
Mbadi assured that the Treasury’s objective is to enhance transparency by minimizing the number of interfaces, which have created opportunities for rent-seeking behavior.
In addition to the IFMS, the Cabinet Secretary announced plans to automate the management of pensions and payroll systems, integrating them with the Teachers Service Commission. A similar initiative at the Kenya Revenue Authority aims to improve tax collection efficiency, further strengthening financial oversight.
The Treasury aims to complete the remaining 60 percent of the system’s development before the end of the current fiscal year, with the goal of launching by mid-2025.
