NAIROBI, Kenya – The National Treasury is pushing back against reports alleging irregular Exchequer withdrawals amounting to Sh1.3 trillion over seven months.
In a statement, Treasury Principal Secretary Chris Kiptoo dismissed the claims, maintaining that all financial transactions remain transparent, legal, and closely monitored.
So, where’s the confusion coming from?
According to Kiptoo, the automation of Exchequer processes is still in progress, and some transactions—like debt payments, county transfers, and the Judiciary Fund—haven’t yet been fully integrated.
But he insists there’s no missing money, no mismanagement—just a work in progress.
Treasury denies withdrawal of Sh.1.3 trillion from CBK, says Exchequer withdrawals strictly comply with legal and financial oversight mechanisms.
Exchequer Automation: The Missing Link?
The National Treasury, the Central Bank of Kenya (CBK), and the Controller of Budget (CoB) rolled out a major automation reform on July 1, 2024, aimed at streamlining Exchequer requests, cutting down processing time, and boosting financial oversight.
However, certain highly regulated transactions weren’t included in the first phase of automation, leaving some gaps in real-time tracking.
“Some transactions—including debt repayments, county transfers, and funds for the Judiciary and Equalisation Fund—are still being manually processed due to their distinct approval mechanisms,” Kiptoo explained.
The Treasury expects full automation by the end of the 2024/25 financial year, ensuring all public funds move through a fully digital and traceable system.
Treasury: “No Money Has Been Lost”
Kiptoo emphasized that every withdrawal, whether manual or automated, undergoes strict legal and financial scrutiny.
“Each transaction is vetted and approved by the Controller of Budget, ensuring compliance with public finance laws,” he stated, shutting down speculation of misappropriation.
Additionally, the Treasury is awaiting the official report from the Controller of Budget before issuing a more detailed response to public concerns.
In the meantime, all Ministries, Departments, and Agencies (MDAs) have already been onboarded onto the digital Exchequer system, with approvals now processed electronically.
“The National Treasury remains committed to transparency, fiscal prudence, and safeguarding public resources,” Kiptoo affirmed.
With Kenya’s public finance system under increasing scrutiny, the government is banking on automation to close loopholes, enhance efficiency, and reassure the public.
As the transition progresses, the real test will be whether this digital shift delivers on its promise of better oversight and accountability.
