Cabinet approves Treasury Single Account for national, county gov’ts
The Cabinet has approved the implementation of the Treasury Single Account (TSA) for national and county governments.
According to the Cabinet, the TSA will simplify government banking, create visibility of government cash resources and increase transparency in government cash management.
The Cabinet also says the new system will help control expenditure and minimise fragmentation of government accounts in commercial banks.
The structure of the TSA will include the National Exchequer Account, the TSA Sub-Account and the County Revenue Fund.
“Government funds are banked in commercial bank accounts and individuals keep earning interest. This must stop. All the benefits of public funds must only accrue to the people of Kenya and no one else,” President William Ruto said.
The Cabinet has also approved the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments.
"This move aims to enhance fairness, equity, transparency, competitiveness and cost-effective public procurement, potentially reducing costs by between 10 and 15 per cent, saving the government KSh90 billion yearly in public procurement expenditure," the Presidential Communication Service (PCS) said in a statement.
The e-GP system is set to push for the digitisation and automation of public procurement and asset disposal processes.
"The Cabinet’s decision to implement electronic procurement is rooted in the understanding that digital transformation is essential for transparency, accountability and the establishment of an open marketplace for procurement agencies. Electronic procurement will benefit the government, suppliers and the public through transparent information flow on expenditure," the statement added.
Cabinet approves PPP regulations
The Cabinet has also approved the Public-Private Partnership Regulations aimed at improving the structure and performance of PPP projects.
"The regulations provide clear guidelines for planning, procurement, management and monitoring PPP projects, aligning with the Bottom-Up Economic Transformation agenda and incorporating environmental and climate change principles. The regulations will now be taken to Parliament for approval," PCS added.
The Cabinet approved the Railway Amendment Bill 2024 which aims at initiating new ways of running railways and separating the business of freight, commuter and land development.
"Kenya Railways is a big landowner in Kenya and most of the land is lying idle. This will be used to develop railway cities as is happening in Nairobi and will be extended to other major towns. The Bill proposes that the private sector, investors and even county governments run the railway cities. In such cases, Kenya Railways will become a regulator," PCS added.
The Cabinet approved Kenya's Sovereign Green Bond Framework which seeks to secure alternative funding options for green and resilient investments amid rising climate change costs.
"The Green Bond Framework is a financial instrument to raise funds for climate action, promoting a nexus between climate initiatives and economic development. The Cabinet recognises the potential of green bonds in mobilising resources for climate-resilient infrastructure, food and water security, and the deployment of green technologies," PCS added.
The Cabinet also approved the draft Kenya Social Protection Policy 2023 which aims at cushioning the poor and vulnerable from socio-economic challenges.
Other agenda approved by Cabinet were the Recognition of Prior Learning Policy, the Establishment of the African Legal Support Facility and the Memorandum to Join the Asian Infrastructure Investment Bank.
