NAIROBI, Kenya— National Treasury Cabinet Secretary John Mbadi has announced a series of bold reforms aimed at curbing corruption, enhancing public finance management, and restoring integrity in government spending.
Speaking at the Ethics and Anti-Corruption Commission (EACC) headquarters in Nairobi on Wednesday, Mbadi acknowledged the scale of resource wastage in public institutions, citing recent revelations involving ghost schools and hospitals that continue to receive funding despite not existing.
“Corruption is a very serious problem in our country,” Mbadi said. “We’ve seen cases where capitation funds go to schools that don’t exist, while genuine learners are left stranded. There are also ‘hospitals’ being paid yet they have neither patients nor buildings.”
To plug these leakages, Mbadi said the government had rolled out an Electronic Government Procurement (EGP) system, designed to eliminate procurement-related irregularities—long considered a hotbed of graft.
Key Reforms Outlined
Among the reforms is a shift from cash-based accounting to accrual accounting, which the CS said would improve transparency in asset management and enable the government to accurately value public resources.
“Sometimes, we don’t even know the value of what we own. This reform will fix that,” Mbadi explained.
Another significant intervention is the full integration of public sector payrolls, set to take effect from August 2025.
The move targets the elimination of ghost workers and double entries across all ministries, departments, agencies (MDAs), and county assemblies.
“No institution will be exempt. This integration will help us clean up the payroll and ensure every shilling goes to real workers,” Mbadi affirmed.
He also highlighted the adoption of zero-based budgeting, a system that requires every expense to be justified from scratch.
The goal, he said, is to curb inflated pricing by government departments and ensure value for money in all state spending.
Pension and EACC Funding Milestones
On pension reforms, Mbadi reported that 97 per cent of outstanding lump-sum payments had been cleared.
He noted a marked improvement in disbursement timelines, with this month’s pension payments made by the 26th—earlier than usual.
“Retirees must get their dues on time. That’s not negotiable,” he said, warning of consequences for corruption in pension processing.
The CS also lauded President William Ruto’s recent assent to the Conflict of Interest Act, saying it would complement Treasury-led reforms by enforcing higher standards of integrity among public servants.
On the EACC’s role in corruption prevention, Mbadi pledged sustained financial support, revealing that—for the first time in years—the anti-graft body had received 100 per cent of its budget allocation.
“Despite fiscal constraints, we will ensure the EACC has the capacity it needs. We are the net beneficiaries of their work,” he said.
Ghost Institutions Under Probe
While downplaying what he termed “misinformation” around ghost schools, Mbadi maintained that the Treasury had launched internal reviews.
However, EACC Chairperson David Oginde confirmed that the commission would investigate claims flagged by the Auditor-General about non-existent institutions receiving public funds.
“We will go back and establish the facts. If ghost schools or hospitals exist, we will act accordingly,” Oginde said.
