The National Treasury has reiterated its commitment to strengthening the fight against corruption by implementing institutional reforms and enhancing cooperation with the Ethics and Anti-Corruption Commission (EACC).
This renewed focus underscores the government’s determination to uphold transparency, accountability, and prudent financial management within public institutions.
Speaking during a courtesy call at EACC headquarters, Cabinet Secretary (CS) for The National Treasury and Economic Planning John Mbadi observed that corruption remains a significant threat to Kenya’s development, costing the country billions daily.
He emphasised the Treasury’s role in eliminating financial leakages by implementing strategic reforms to promote accountability and transparency.
“I actually requested this meeting because we are partners in this assignment. Kenyans expect us to protect the taxes they work hard to pay,” stated Mbadi.
“It is estimated, as was once stated by former President Uhuru Kenyatta, that Kenya loses about Sh2 billion daily to corruption. If put to proper use, this money could transform lives,” he added.
The CS outlined ongoing Treasury reforms, including the roll-out of the electronic government procurement (e-GP) system to seal loopholes in public procurement, a key area of concern in corruption cases.
He also noted the transition from cash-based to accrual-based accounting, which would enable better tracking and valuation of public assets and liabilities.
Mbadi disclosed that through zero-based budgeting, the Treasury aims to eliminate discrepancies in government expenditure, such as inflated costs of common items.
“We are also finalising integration of the payroll system across all Ministries, Departments, Agencies, and County Assemblies to address ghost workers and multiple payroll issues,” he explained, hinting that implementation would begin in August.
On pension reforms, Mbadi announced improved timelines for disbursement, with 97 per cent of pension claims settled by June and monthly pensions now paid earlier, warning that any corruption in the Pension Department would be dealt with decisively.
Further, the CS revealed that the Treasury is also pushing for the adoption of a Treasury Single Account (TSA) to centralise cash management and avoid instances where the government unknowingly borrows its own funds.
Significantly, Mbadi celebrated the recent presidential assent to the Conflict-of-Interest Bill, now law, which he said would empower the EACC and help prevent public officials from abusing their positions.
He also confirmed that EACC received 100 per cent of its allocation in the last financial year and pledged further support within the limited fiscal space, including provision of vehicles and additional staff.
“We are not shying away from empowering EACC. We are also committed to strengthening other institutions such as the Office of the Auditor General, the Controller of Budget and the Judiciary,” affirmed the CS.
He reiterated that his ministry would remain transparent and cooperative in all matters concerning the fight against corruption.
In a quick rejoinder, EACC Chairperson Dr. David Oginde welcomed the Treasury’s commitment and emphasised the importance of a collaborative, multi-agency approach in the fight against corruption.
“Corruption is a grave challenge. We have seen ghost schools receiving capitation while real institutions lack funds and ghost hospitals being paid NHIF funds,” alluded Dr. Oginde.
“For instance, our investigations exposed a facility in Eastleigh receiving significant refunds but was merely a small room up a spiral staircase. That shows the level of audacity in the abuse of public resources,” he exemplified.
The Chairperson underscored the need for more funding to boost the Commission’s capacity to prevent and investigate graft, revealing that the Commission currently operates with only 700 staff against an ideal 1,500.
“We believe with more resources, we can do more. The CS has assured us he will look into it,” he compounded.
Dr. Oginde acknowledged that this was a courtesy call initiated by the Treasury and praised the gesture as a vital step towards effective inter-agency cooperation.
“We are encouraged by the Treasury’s reforms. Prevention, accountability, and enforcement must go hand in hand. No single entity can do this alone,” he maintained.
By Naif Rashid
