The Cabinet has approved the implementation of the Treasury Single Account (TSA) for national and county governments.

According to the Cabinet, the TSA will simplify government banking, create visibility of government cash resources and increase transparency in government cash management.

The Cabinet also says the new system will help control expenditure and minimise fragmentation of government accounts in commercial banks.

The structure of the TSA will include the National Exchequer Account, the TSA Sub-Account and the County Revenue Fund.

“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,” President William Ruto said.

The Cabinet has also approved the implementation of the Electronic Government Procurement (e-GP) in both the National and county governments. 

"This move aims to enhance fairness, equity, transparency, competitiveness and cost-effective public procurement, potentially reducing costs by between 10 and 15 per cent, saving the government KSh90 billion yearly in public procurement expenditure," the Presidential Communication Service (PCS) said in a statement.

The e-GP system is set to push for the digitisation and automation of public procurement and asset disposal processes.