Bill proposes separate bank accounts for each State project to boost accountability
The National Treasury, together with oversight institutions, will be required to conduct regular capacity-building sessions on handling project accounts.
Government ministries and agencies could soon be required to operate distinct bank accounts for every development project, following a proposal seeking to tighten financial controls and improve accountability in the use of public funds.
The Public Finance Management (Amendment) Bill, 2025, fronted by Rongo MP Paul Abuor, proposes that all money set aside for projects in the national budget be channelled directly into project-specific accounts.
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The move is intended to prevent diversion of funds, a problem that often arises when the Treasury introduces supplementary budgets or budget cuts.
Abuor explained that the Controller of Budget (COB) will play a key oversight role by tracking all disbursements to these accounts and ensuring that quarterly compliance reports are submitted by the concerned ministries, departments, and agencies.
“As this responsibility falls squarely within the existing functions of the COB, including authorising withdrawals from public funds and preparing quarterly budget implementation reports, this provision would not result in additional public expenditure,” he said.
The proposed amendment, which has already been cleared for publication by the Budget and Appropriations Committee (BAC), seeks to insert a new clause into Section 83 of the Public Finance Management Act to make it mandatory for all project funds to be managed through exclusive accounts.
Besides streamlining fund management, the Bill also wants to make continuous training for accounting officers and authority-to-incur-expenditure holders a legal requirement.
The National Treasury, together with oversight institutions, will be required to conduct regular capacity-building sessions on handling project accounts.
“In doing so, the Bill embeds this obligation in law and requires Parliament to expressly appropriate funds for its implementation through the national budget, in line with Article 114(3)(c) of the Constitution,” Abuor said.
He noted that while the existing Public Finance Management Act empowers the Treasury to conduct general financial training, it does not require routine or specialised instruction.
The proposed law aims to bridge this gap by ensuring that officers responsible for managing public money are regularly equipped with the skills necessary for accountability and efficient implementation of government projects.
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