Today marks the deadline for the Treasury Single Account (TSA Kenya), two years after it was fast-tracked and approved by Cabinet in January 2024. All county and national government organs are required to submit details of every bank account they operate. This move is part of the government’s broader effort to enhance financial accountability, streamline public fund management, and curb misuse of public resources.
Treasury Single Account (TSA) Overview
What is TSA (Treasury Single Account)?
Kenya’s TSA Kenya is a unified, centralized cash management system designed to consolidate government funds from 33,000+ commercial bank accounts into the Central Bank of Kenya (CBK). The system enhances transparency, reduces borrowing costs, and ensures the government has full visibility of its cash resources.
The TSA structure, authorized under the Public Finance Management (PFM) Act 2012, uses a hybrid model comprising:
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Centralized Account (CBK): The main account for final consolidation of government funds.
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TSA Sub-Accounts: Specialized accounts for Ministries, Departments, and Agencies (MDAs).
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National Exchequer Account: Main repository for national revenue.
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County Revenue Fund: Account for managing devolved funds efficiently.
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Integration System: Integrated with IFMIS and CBK Internet Banking for real-time monitoring.
Since January 2024, TSA Kenya has consolidated government cash resources and reduced fragmented accounts. President Ruto emphasized:
“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.”
Digital Transformation in Public Procurement
The Cabinet approved the Electronic Government Procurement (e-GP) system for national and county governments to:
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Promote fairness, transparency, and competitiveness.
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Reduce procurement costs by 10–15%, saving KSh 90 billion annually.
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Digitize procurement and asset disposal, aligned with the Bottom-Up Economic Transformation Agenda.
The system ensures a transparent flow of information on government expenditure, benefiting agencies, suppliers, and the public.
How the e-GP System Works with TSA Kenya
Integration between e-GP and TSA Kenya ensures government spending is transparent, efficient, and traceable:
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Budget Allocation & TSA Sub-Accounts: Funds for procurement are earmarked in MDA sub-accounts.
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E-Procurement Planning & Tendering: MDAs manage tenders online; all transactions are logged digitally.
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Commitment & Payment Authorization: Payments are approved only if funds exist in TSA sub-accounts.
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Direct Payment from TSA: Payments flow directly from TSA, preventing idle funds and misuse.
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Real-Time Monitoring: CBK and Ministry of Finance can track expenditures instantly.
Benefits: Enhanced transparency, efficiency, accountability, and cost savings.
News-Style Conclusion
As the February 15 TSA Kenya deadline arrives, all government entities are expected to comply fully. Integration with the e-GP system represents a decisive step toward improved fiscal discipline and modernized public financial management. Officials stress that non-compliance may attract administrative sanctions.
The government states that TSA Kenya and digital procurement reforms will strengthen transparency, reduce waste, and ensure taxpayer money is effectively used for public services and development.
