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| Teasury CS John Mbadi./ Photo Amos Atei. |
Treasury Targets County Secret Accounts as Kenya Expands Financial Accountability and Public Finance Reforms
The National Treasury has intensified efforts to strengthen financial accountability within county governments through a major reform initiative aimed at eliminating what officials describe as “secret accounts” used outside approved public finance management systems.
The move forms part of a broader strategy to enhance transparency, improve cash management, and safeguard public resources across Kenya’s devolved units.
The reforms will see the expansion of the Treasury Single Account (TSA) framework to county governments beginning in the 2026/27 financial year.
The system is designed to consolidate public funds into a centralized structure managed through the Central Bank of Kenya, reducing reliance on numerous bank accounts that have historically been operated by various government entities.
Officials argue that fragmented accounts create loopholes that can weaken oversight and increase the risk of misuse of public funds.
According to Treasury officials, the transition is expected to improve visibility of government cash flows, enable real-time monitoring of public funds, and strengthen accountability in the management of county finances.
The reforms are also intended to streamline payment processes, reduce unnecessary delays, and ensure that resources are directed toward service delivery rather than administrative inefficiencies.
The initiative comes at a time when counties are set to receive record allocations in the upcoming financial year.
While increased funding is expected to support development projects and improve public services, the government maintains that stronger financial controls are necessary to ensure taxpayers receive value for money.
Treasury officials believe the centralized system will help prevent duplication of payments, improve budget implementation, and reduce opportunities for financial irregularities.
Financial experts have long argued that effective management of county resources remains critical to the success of devolution. Over the years, concerns have been raised regarding pending bills, delayed payments to suppliers, and weaknesses in financial reporting.
The latest reforms seek to address these challenges by creating a more integrated and transparent framework for handling public funds.
The Treasury has reported positive outcomes from implementing the Treasury Single Account at the national government level, including improved cash management and reduced borrowing costs.
Authorities now hope that extending the model to county governments will produce similar benefits, strengthening fiscal discipline and enhancing public confidence in devolved governance.
As the rollout begins, county governments will be required to align their financial operations with the new framework.
The success of the reforms is expected to depend on cooperation between national and county institutions, as well as the adoption of modern financial management systems that support accountability and transparency.
The latest push underscores the government’s commitment to ensuring that public resources are managed responsibly, with stronger safeguards aimed at protecting taxpayers’ money and improving service delivery across all 47 counties.
Treasury Targets County Secret Accounts as Kenya Expands Financial Accountability and Public Finance Reforms