The National Treasury has refuted claims of irregularities in the withdrawal of KES 1.3 trillion over a seven-month period, following reports published in the media. The Treasury has assured the public that all Exchequer withdrawals undergo strict financial oversight, adhering to public finance regulations.
In a statement released on March 2, the Treasury addressed the concerns raised by the Controller of Budget’s pending report, emphasizing that all transactions are subject to due diligence and approval. “The National Treasury wishes to clarify the facts,” the statement read, underscoring the adherence to proper financial protocols.
The statement revealed that until the end of the 2023/24 financial year, Exchequer requests and withdrawals were processed manually due to the absence of an automated system. Despite this, the Treasury maintained that each transaction followed strict legal and financial procedures. “Every transaction is subject to review and approval by the Controller of Budget, ensuring full compliance with public finance regulations,” the statement affirmed.
Highlighting ongoing reforms, the Treasury announced the launch of an automated Exchequer process on July 1, 2024, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget (CoB). This initiative aims to enhance efficiency, accountability, and financial oversight. “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 stated.
Dismissing any allegations of misappropriation, the Treasury was unequivocal: “At no point has public money been lost or misappropriated through this process.”
The Principal Secretary of the National Treasury, Dr. Chris Kiptoo, assured the public that a comprehensive response would follow once the official report from the Controller of Budget is received. “The National Treasury remains committed to transparency, prudent financial management, and safeguarding public resources in line with its mandate,” Dr. Kiptoo concluded.
