Aasai

In a statement released on Sunday, March 2, Treasury Principal Secretary Dr. Chris Kiptoo assured that all transactions adhered to legal and financial protocols, with every withdrawal being reviewed and approved by the Controller of Budget (CoB).

He dismissed allegations of financial mismanagement, stating, “A section of the media has reported irregularities in exchequer withdrawals, particularly claims of a Ksh1.3 trillion withdrawal over seven months. While awaiting the official report from the Controller of Budget, the National Treasury seeks to clarify the facts.”

Dr. Kiptoo acknowledged that until the end of the 2023/24 financial year, exchequer withdrawals were processed manually due to the absence of an automated system. However, despite the manual process, he ensured that all transactions complied with public finance regulations.

To enhance efficiency and transparency, the Treasury introduced an automated system on July 1, 2024, in partnership with the Central Bank of Kenya (CBK) and the Controller of Budget. This system aims to streamline exchequer requests, strengthen oversight, and reduce delays in fund disbursement.

The Treasury further explained that the system now integrates all National Government Ministries, Departments, and Agencies (MDAs). However, specific transactions—such as debt payments, county transfers, the Judiciary Fund, and the Equalisation Fund—were not included in the initial phase due to their distinct approval processes. Full automation of all transactions is expected by the end of the 2024/25 financial year.

Dr. Kiptoo reiterated that both manual and electronic withdrawals undergo rigorous scrutiny to ensure compliance with public finance laws. “The National Treasury affirms that all exchequer withdrawals are subject to strict legal and financial oversight. At no point has public money been lost or misappropriated,” he emphasized.

The Treasury also reassured the public that it would issue a detailed response once the Controller of Budget’s official report is available.

“The National Treasury remains committed to transparency, prudent financial management, and safeguarding public resources in line with its mandate,” the statement concluded.

This clarification comes in response to media reports suggesting that a significant amount of money was withdrawn outside the automated financial system, raising concerns about potential financial mismanagement.