Cabinet Approves Plan To Merge All Gov’t Bank Accounts
Cabinet Approves Plan To Merge All Gov’t Bank Accounts
Cabinet Approves Plan To Merge All Gov’t Bank Accounts
The Treasury Single Account (TSA) for the federal and local governments was approved by the Cabinet on Monday.The TSA accounting system encourages the use of a single account or connected government bank accounts to improve transparency and for simple access by several ministries.
Following a meeting chaired by President William Ruto on Monday, the cabinet observed that the TSA will simplify government banking, create visibility of government cash resources, and increase transparency in government cash management.”The new system will help control expenditure and minimise fragmentation of government accounts in commercial banks,” the cabinet stated in a dispatch.
President Ruto stated that it is time to end the practice of depositing public cash in private bank accounts so that people can earn interest.”People continue to earn interest on government money, which are deposited in commercial bank accounts. This must stop. The Kenyan people alone should receive all the benefits of public funds, he declared.
The new system will include the National Exchequer Account, the TSA Sub-Account, and the County Reverse Fund.Besides the TSA, the cabinet also approved the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments.Through this approval, the government seeks to enhance fairness, equity, transparency, competitiveness, and cost-effective public procurement.It is also expected to reduce costs by between 10 and 15 per cent and save the government approximately Ksh90 billion yearly in public procurement expenditure.
“The e-GP system is set to drive the Bottom-Up Economic Transformation Agenda, promoting sustainable and inclusive economic growth through the digitisation and automation of public procurement and assent disposal processes,” read a portion of the cabinet’s statement.
To enhance the design and functionality of PPP projects, the Cabinet also approved the Public-Private Partnership Regulations. Parliament will be consulted before the regulations are approved.In line with the government’s legacy plan, these regulations offer precise criteria for PPP project planning, procurement, management, and monitoring.