Treasury to launch debt automation system, single account on October 1
TSA will enable daily, real-time monitoring of all government funds, reduce account fragmentation, and close gaps that previously allowed the misuse of resources.
Kenya will begin operating the Digital Debt Automation System and Treasury Single Account (TSA) on October 6, aiming to bring greater clarity and control to government finances.
Treasury Principal Secretary Chris Kiptoo announced the rollout during a meeting with key state officials, highlighting efforts to integrate core financial platforms for real-time monitoring of government liquidity and cash flows.
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“These reforms will consolidate funds, reduce manual processes, and enhance fiscal discipline, marking a major step toward full digital transformation in public finance,” Kiptoo said.
The Digital Debt Automation System will gather all loans from both national and county governments into a single platform.
The initiative is designed to provide immediate visibility of debt transactions, repayment schedules, and maturity timelines, addressing concerns over the accuracy and accessibility of Kenya’s Sh11.8 trillion public debt.
By making debt data available in real time, the system seeks to strengthen investor trust while giving citizens clear insight into how borrowed resources are being utilised.
Officials noted that uncertainty around debt often worsens fiscal crises, as investors cannot easily verify government obligations and citizens remain unsure about the use of funds.
The platform aligns with reforms encouraged by the International Monetary Fund (IMF) and the World Bank to help the country better manage its borrowing and repayment obligations.
The Treasury Single Account, set to go live alongside the digital debt system, will unify funds that have long been spread across multiple bank accounts held by various ministries, departments, and agencies.
As of June 2024, government deposits in commercial banks stood at Sh670.8 billion, representing 10.4 per cent of the sector’s total deposits.
The TSA will enable daily, real-time monitoring of all government funds, reduce account fragmentation, and close gaps that previously allowed the misuse of resources.
By consolidating cash balances from ministries, state agencies, and other public entities, the account will simplify banking operations, improve transparency, and give the government a complete picture of available financial resources at any given time.
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