The National Treasury has sought to allay public concerns over the government's withdrawal of Sh1.3 trillion from the exchequer within seven months, asserting that all transactions were carried out in accordance with financial laws.

Treasury Principal Secretary Chris Kiptoo dismissed fears of misappropriation, maintaining that every exchequer withdrawal—whether processed manually or electronically—underwent stringent scrutiny.

He stressed that no public funds had been lost in the process.

Kiptoo explained that, until the end of the 2023/24 financial year, exchequer disbursements were conducted manually, as an automated system was yet to be implemented.

Despite this, he assured that every withdrawal was thoroughly reviewed and approved by the Controller of Budget, ensuring full compliance with public finance regulations.

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“All withdrawals followed strict legal and financial procedures, with every transaction subject to review and approval by the Controller of Budget, ensuring full compliance with public finance regulations,” Kiptoo stated.

In a bid to enhance efficiency and accountability, he revealed that Treasury, in collaboration with the Central Bank of Kenya (CBK) and the Controller of Budget, embarked on a reform in July 2023 to digitise the exchequer process.

The move, he noted, was aimed at streamlining operations, reducing delays, and strengthening oversight.

Currently, all National Government Ministries, Departments, and Agencies (MDAs) have migrated to the automated system, allowing for digital processing of exchequer requests and approvals.

However, Treasury clarified that certain transactions—including debt payments, county allocations, the Judiciary Fund, and the Equalisation Fund—were exempted from the initial phase of automation due to their distinct approval frameworks.

Kiptoo stated that work was underway to incorporate these transactions into the system, with full automation expected by the close of the 2024/25 financial year.

Meanwhile, the Treasury has pledged to issue a comprehensive response once the Controller of Budget releases its official report on the withdrawals.