President William Ruto's Cabinet has approved the implementation of the Treasury Single Account (TSA) for both National and county governments.

The decision was reached during a cabinet meeting chaired by President Ruto on Tuesday at State House Nairobi.

The Cabinet emphasized the importance of the TSA in simplifying government banking, providing visibility into government cash resources, and increasing transparency in government cash management.

According to Ruto, the newly approved system is expected to streamline financial operations, control expenditure, and reduce the fragmentation of government funds held in commercial banks.

“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," Ruto stated.

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The structure of the TSA will include the National Exchequer Account, the TSA Sub-Account, and the County Revenue Fund, creating an integrated financial management system for both national and county governments.

To strengthen financial oversight, the Cabinet directed the National Treasury to submit a detailed report to the National Assembly within sixty (60) days.

This report will outline the cash surplus funds held in the bank accounts of all State-owned agencies and parastatals as of 30th November 2023.

In a bid to consolidate national government revenue and enhance liquidity management efficiency, the National Treasury is tasked with expediting the implementation of the national government single account framework.

The Cabinet has set a deadline, mandating that the treasury single account must be fully operational by 31st March 2024.

This move towards a Treasury Single Account signifies a significant step in fostering financial discipline and accountability within the government.

As the nation progresses towards this comprehensive financial management system, expectations are high for a more transparent, efficient, and consolidated approach to handling public funds.

President Ruto's Cabinet decision is poised to reshape the financial landscape, ensuring a more robust and accountable government financial system for the benefit of the nation.