National Treasury has responded to claims that Ksh 1.3 trillion had been withdrawn from the Central Bank of Kenya(CBK) under seven months.
Through a statement, PS Chris Kiptoo noted that the exchequer requests and withdrawals had not been automated as at the end of the 2023/24 financial year but strict legal and financial procedures had been followed.
“A section of the media has today published a report suggesting irregularities in Exchequer withdrawals, particularly claims of a Ksh1.3 trillion withdrawal over seven months. While we await the official report from the Controller of Budget, The National Treasury wishes to clarify the facts.
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Until the end of the 2023/24 financial year, Exchequer requests and withdrawals were processed manually, as the system had not yet been automated. However, all withdrawals followed strict legal and financial procedures, with every transaction subject to review and approval by the Controller of Budget, ensuring full compliance with public finance regulations.” he said
According to the PS, both the Controller of Budget (CoB) and CBK had come to an agreement that beginning 1st July 2025, the exchequer process will be automated.
The automation process is expected to enhance efficiency, reduce processing time, improve accountability, and strengthen financial oversight.
Even though the process had been automated, some of requests still required manual approval from the exchequer thus the need to heavily monitor the transactions.
“The National Treasury categorically affirms that all Exchequer withdrawals, whether processed manually or electronically, are subject to strict legal and financial oversight.
Controller of Budget, ensuring full compliance with public finance regulations. At no point has public money been lost or misappropriated through this process.” read the statement.
