Mbadi: Treasury Single Account system to improve financial governance and control over public funds

Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, has hailed the Treasury Single Account (TSA) system after it was approved by the cabinet.
Mbadi hailed the system while appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations, chaired by Senator Mohamed Abbas, on Thursday, July 17, 2025.
Mbadi assured senators that his ministry is fully committed to streamlining public finance systems to curb misuse and mismanagement of public resources.
The decision follows revelations in the latest County Budget Implementation Review Report submitted by the Controller of Budget, which showed that county governments are currently operating 1,854 commercial bank accounts, which is contrary to the provisions of the Public Finance Management Regulations, 2015.
The multitude of commercial accounts has made it difficult for oversight bodies, particularly the Controller of Budget, to effectively monitor county expenditures. This loophole has raised concerns about fiscal opacity and increased the risk of misappropriation of public funds.
CS Mbadi told the committee that the TSA system, once fully implemented, would centralise all government receipts and revenues into a single account maintained by the Central Bank of Kenya. This, he noted, would eliminate fragmented financial operations, reduce account duplication, and tighten controls against fraud.

“The implementation of this policy is part of the broader Treasury Single Account action plan that is expected to improve financial governance and control over public funds. The primary goal of the policy is to ensure accountability and transparency in the use of public resources,” CS Mbadi said.
Senators welcomed the move but urged the Treasury to collaborate with the Council of Governors (CoG) and the Senate Standing Committee on Finance and Budget to develop a TSA framework that reflects the operational realities of both national and county governments.
The committee also directed the Treasury to explore the development of a hybrid financial system, one that allows the National Treasury to monitor the balances in county commercial bank accounts without directly controlling them. They said this would ensure fiscal transparency while preserving county autonomy.
“Hon. Mbadi, your ministry needs to review the existing regulations to provide clarity on the requirements for county governments to open commercial bank accounts and explore options to compel full disclosure of all accounts,” Sen Mohamed Abbas, the chairperson of the committee, said.
The session was part of the Senate’s ongoing inquiry into the management of county finances and the proliferation of commercial bank accounts, which has raised serious red flags among oversight agencies.