PSs told to submit petty cash audit reports by August 14

Principal secretaries have been directed to provide full audit reports on the use of petty cash within their ministries and departments by August 14, 2025, in a move aimed at tightening financial discipline and curbing corruption.

The directive from the National Treasury marks a renewed push to enforce accountability for public funds, especially where imprest has been flagged as a frequent channel for misuse.

In a letter sent to all PSs, Treasury Principal Secretary Chris Kiptoo instructed that consolidated audit reports, supported by all necessary documentation, be submitted within 41 days.

This order follows instructions from Head of Public Service Felix Koskei and is part of a broader strategy to enforce compliance with public finance laws.

“All internal audit functions across public entities are hereby directed to undertake a thorough and comprehensive audit of all issued imprests, placing particular emphasis on compliance, accountability, and value for money,” the letter reads.

Kiptoo added that, “The findings of this exercise must be formally submitted to the Office of the Chief of Staff and Head of Public Service.”

Imprest, commonly referred to as petty cash, is issued for small and routine expenditures but has often been misused, with some officials failing to return or account for the money.

Regulations under the 2015 Public Financial Management framework require that imprest be surrendered within seven working days after the conclusion of an official assignment, but this has not always been followed.

The Treasury’s directive also extends to chief executive officers of State corporations and semi-autonomous government agencies, who are required to compile a summary of their audit findings and submit a signed copy of the final report through their respective PSs by August 8.

This renewed scrutiny comes weeks after the government rolled out the electronic government procurement system (e-GP), targeting corrupt practices in public procurement. The combined measures are expected to improve transparency and reduce misuse of funds across government institutions.

Officials who fail to comply with the new directive risk disciplinary action as the administration moves to close long-standing gaps in financial reporting and block avenues used to divert public money for personal gain.

The Treasury has made it clear that the reports must reflect not only proper use of funds but also show value for money in all transactions made through imprest.

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