The National Treasury has stated that no public funds have been lost through the manual withdrawal of Sh1.3 trillion in seven months.
In a statement after a local daily reported irregularities in the withdrawal, Treasury Principal Secretary Chris Kiptoo said all withdrawals followed the law.
“The National Treasury categorically affirms that all Exchequer withdrawals, whether processed manually or electronically, are subject to strict legal and financial oversight," he said.
“Every transaction undergoes due diligence and approval by the Controller of Budget, ensuring full compliance with public finance regulations. At no point has public money been lost or misappropriated through this process."
Kiptoo reiterated the Treasury’s commitment to transparency and safeguarding of public resources.
“Once the Treasury receives the official report from the Controller of Budget, a comprehensive response will be provided to address any further concerns. The National Treasury remains committed to transparency, prudent financial management, and safeguarding public resources in line with its mandate," he said.
The PS explained that up to 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,” the PS said.
Kiptoo said that at the beginning of the current financial year, the National Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget (COB), launched a major reform initiative to automate the Exchequer process.
He said 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 processed digitally.
The PS, however, said certain transactions-including debt payments, transfers to Counties, the Judiciary Fund, and the Equalisation Fund-were not included in the first phase of automation due to their distinct approval processes.
