NAIROBI, Kenya – County governments are facing renewed scrutiny over their financial practices as the National Treasury officially begins the rollout of the Treasury Single Account (TSA) — a sweeping reform designed to tighten control over public funds and enhance transparency across all levels of government.
The Central Bank of Kenya (CBK) will oversee the implementation of the system, which will consolidate government revenues and receipts into a centralized structure, replacing the current fragmented model where counties maintain hundreds of commercial bank accounts.
Appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations on Thursday, Treasury Cabinet Secretary John Mbadi said the TSA rollout is a critical step in reforming Kenya’s public finance management.
“The implementation of this policy is part of the broader TSA action plan expected to improve governance and financial control. The goal is accountability and transparency in how public resources are used,” said Mbadi.
His statement followed a report by the Controller of Budget (CoB), which revealed that counties are currently operating 1,854 commercial bank accounts — a violation of the Public Finance Management Regulations, 2015.
The CoB warned that such fragmentation hampers budget tracking and invites financial abuse.
Senate Calls for County-Specific Framework
Senators urged the Treasury to engage with county governments through the Council of Governors and develop a tailored TSA framework that respects the spirit of devolution while addressing existing gaps.
Committee Chair Mohamed Abbas said the reforms should strike a balance between fiscal discipline and county autonomy.
“Your Ministry needs to review the regulations and ensure counties disclose all bank accounts. We must prevent misuse without undermining devolution,” he told Mbadi.
Ruto: No More Interest Earnings from Public Funds
President William Ruto has publicly criticised the long-standing practice of parking government funds in commercial banks, where individuals reportedly benefit from interest earnings.
“Government funds are banked in commercial banks, and individuals keep earning interest. This must stop. All benefits of public funds must go to the people of Kenya,” he said during a recent Cabinet meeting that approved the TSA rollout.
While some county leaders have expressed fears of losing financial independence, senators proposed a hybrid system where Treasury can monitor account balances without interfering in day-to-day operations.
Mbadi assured lawmakers that the TSA would be designed to respect devolution while sealing loopholes that have enabled wastage, fraud, and inefficiencies.
