Counties to join Treasury’s single account system as state streamlines management of public funds

Starting in July, all 47 counties in Kenya will be brought under the Treasury Single Account (TSA) system as the government takes major steps to streamline and improve the management of public funds.

The decision is part of a broader initiative to consolidate government finances and ensure greater efficiency and transparency in the use of public money.

The National Treasury has said that this new move will be implemented in phases, with the second phase of the TSA rollout focusing on county governments during the 2025-26 Financial Year.

The TSA system, which was first introduced in 2022, aims to give the government better oversight of its finances by consolidating funds from different entities into a single account.

"The Treasury Single Account is a unified structure of government bank accounts that enables the consolidation and optimum utilisation of government cash resources," said the Treasury in a statement.

Counties, including Isiolo and Garissa, are among the first to join this initiative, which is expected to significantly improve the transparency and efficiency of public spending at the local level.

Quicker budget execution

By moving all counties onto the TSA, the government hopes to achieve better visibility, quicker budget execution, and improved financial transparency at both the national and county levels.

This decision comes as the government prepares its national budget for the 2025-26 financial year, which is expected to remain at Sh4.32 trillion.

The 2025 Draft Budget Policy Statement (BPS) confirmed that the national budget will not change from the amount set last year in the Budget Review and Outlook Paper.

This stable budget size highlights the government's focus on fiscal management despite economic challenges.

Under the TSA system, public funds will be managed more centrally, reducing idle balances in various accounts held by government agencies and counties.

This will also allow the Treasury to make more informed decisions about the allocation and spending of resources.

The implementation of the TSA has already begun in phases. Last year, the first phase included the migration of all state organs, constitutional bodies, and independent offices to the new system.

The upcoming second phase will focus on county governments, which will be onboarded starting in July.

The government's plans to implement the TSA come after a Cabinet approval in January of the previous year, which gave the green light for the system's rollout.

The Cabinet saw the potential benefits of centralising government cash resources, especially given the billions of shillings currently sitting idle in government accounts.

The Treasury will continue to work closely with the Intergovernmental Budget and Economic Council (IBEC) to ensure a smooth transition for county governments into the TSA system.