NAIROBI, Kenya — Kenya will on October 6 roll out a Digital Debt Automation System and a Treasury Single Account (TSA) in what officials describe as a major step toward tightening control of public finances and enhancing transparency.
Treasury Principal Secretary Chris Kiptoo announced the reforms during a meeting with senior state officials, saying the integration of core financial platforms would allow real-time tracking of government cash flows and borrowing.
“These reforms will consolidate funds, reduce manual processes, and enhance fiscal discipline, marking a major step toward full digital transformation in public finance,” Kiptoo said.
The Digital Debt Automation System is expected to centralise all loans contracted by national and county governments on a single platform.
It will provide instant visibility into debt transactions, repayment schedules, and maturity timelines — addressing long-standing concerns about the accuracy and accessibility of Kenya’s Sh11.8 trillion public debt data.
Officials say the platform will help strengthen investor confidence while giving citizens clearer insight into how borrowed resources are being used.
It also aligns with reforms recommended by the International Monetary Fund (IMF) and World Bank to improve debt management and avert fiscal slippages.
Running parallel to the debt system will be the Treasury Single Account, which will unify billions of shillings currently held in fragmented accounts across ministries, departments, and state agencies.
As of June 2024, government deposits in commercial banks amounted to Sh670.8 billion — about 10.4 percent of the sector’s total deposits.
The TSA will allow real-time monitoring of government balances, reduce idle funds, and seal loopholes that have enabled misuse of public money.
By consolidating accounts, the Treasury hopes to simplify banking operations, improve transparency, and maintain a complete daily picture of state liquidity.
The two platforms are set to become operational against a backdrop of growing scrutiny over Kenya’s debt trajectory and pressure on the government to instill greater discipline in public finance.
