The Kenyan Cabinet approved the Treasury Single Account (TSA) for the national and county governments on Monday.
Treasury Single Account is an accounting system that uses a single account or linked government bank accounts to improve access and transparency for different ministries.
President William Ruto chaired the meeting and said that the TSA will simplify government banking, increase the visibility of government cash resources, and enhance transparency in government cash management. He also said that the practice of depositing government funds in commercial bank accounts and earning interest must end.
“The new system will control expenditure and reduce fragmentation of government accounts in commercial banks,” the Cabinet said in a statement.
The TSA will consist of the National Exchequer Account, the TSA Sub-Account, and the County Reverse Fund.
The Cabinet also approved the Electronic Government Procurement (e-GP) for both the national and county governments. The e-GP aims to promote fairness, equity, transparency, competitiveness, and cost-effectiveness in public procurement. It is expected to save the government an estimated Ksh90 billion annually in public procurement expenditures.
“The e-GP system will drive the Bottom-Up Economic Transformation Agenda, fostering sustainable and inclusive economic growth through the digitisation and automation of public procurement and asset disposal processes,” the Cabinet said.
Moreover, the Cabinet approved the Public-Private Partnership Regulations to improve the structure and performance of PPP projects.
The regulations will be sent to Parliament for approval. They provide clear guidelines for planning, procurement, management, and monitoring of PPP projects, in line with the government’s legacy plan.
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