Ruto’s administration withdrew Sh1.3 trillion manually in seven months - CoB
Treasury CS John Mbadi distanced his office from responsibility, saying individual accounting officers should explain why payments were processed manually.
A total of Sh1.3 trillion was withdrawn in a span of seven months at the request of the national and county governments through manual processes, the Controller of Budget has revealed.
CoB Margaret Nyakang’0 disclosed that the withdrawals bypassed the automated financial system designed to enhance transparency and accountability.
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In her report dated February 21, 2025, and submitted to the National Assembly’s Finance and National Planning Committee, Nyakang’o indicates that these manual cash requisitions occurred between July 12, 2024, and February 20, 2025.
She highlights that the bulk of the manually processed withdrawals, amounting to Sh893.97 billion, were for public debt payments. County governments followed, with Sh222.61 billion disbursed manually across nine transactions.
The report however does not specify which counties made these requests, only listing the dates of the transactions. Recurrent expenditure accounted for Sh198.23 billion in manual requisitions, while Sh576.573 billion was processed through the automated system.
For development expenditure, Sh4.12 billion was withdrawn manually, while Sh159.831 billion was transacted through the system. However, the report does not clarify whether these withdrawals were made by the national or county governments.
Other manually processed payments included Sh13.3 billion for the Judiciary Fund, Sh11.35 billion for pensions and Sh1.96 billion for the Equalisation Fund.
Manual requisitions
The Controller of Budget raised concerns over the lack of specifics in some of the manual requisitions, as they were presented in lump sums, making it difficult for her office to track expenditures.
“At the end of the quarter, they submit lump sum returns, which still lack specifics on how the money was spent. We have had to reject some of the returns because they lack details,” Nyakang’o told the committee on February 20, 2025.
While she did not accuse officials of misappropriation, the CoB questioned why the government continues to make selected payments manually despite having a fully automated system.
“I must raise this issue with the National Treasury through writing because now I have enough data. Why are we still paying manually yet we have automated our system?” she posed.
National Treasury Cabinet Secretary John Mbadi distanced his office from responsibility, saying individual accounting officers should explain why payments were processed manually.
“Payments are done by the accounting officers who, in this case, should answer why they bypassed the system if that is indeed true,” Mbadi told Nation.
He added that all public debt payments should go through the automated system, terming the manual withdrawals “interesting.”
Members of the Finance and National Planning Committee expressed concern over the practice, with committee chairperson Kimani Kuria questioning the rationale behind settling public debt outside the automated system.
“We cannot insist on paying small fees electronically while settling our debts manually. For a government with all its systems online, why should we pay our debt manually?” he posed.
Kitui Rural MP David Mwalika echoed these concerns, emphasising the need for transparency in handling public debt, which consumes a significant portion of national revenue.
“Public debt has been one of our major headaches as a country, yet now we are being told these payments have been processed manually. The question we must ask is why? And the CoB must help us get answers,” he said.
The report details major public debt requisitions made during the period, including Sh56 billion on July 15, 2024, Sh73 billion on August 19, and Sh37 billion on September 25. Other notable withdrawals include Sh46 billion on October 24, Sh50 billion on December 10, and Sh59 billion a week later. In 2025, two significant requisitions were made—Sh56 billion on February 17 and Sh51 billion on February 18.
For pensions, a total of Sh11.346 billion was withdrawn manually on September 5, 2024, while recurrent expenditure requisitions processed manually stood at Sh198.234 billion as of February 20, 2025. The first manual requisition, recorded on August 12, 2024, amounted to Sh7.49 billion. Additional withdrawals included Sh5 billion on August 13, Sh3.4 billion on August 19, and Sh14 billion on August 26.
Following the revelations, the parliamentary committee said it would summon Treasury CS John Mbadi for further clarification.
Lawmakers insisted that government financial transactions should strictly adhere to the automated system to enhance accountability and transparency.
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