Kisii Senator Richard Onyonka has raised serious concerns regarding reports of irregular withdrawals amounting to Ksh1.3 trillion from the exchequer account at the Central Bank of Kenya (CBK). The withdrawals, allegedly made by both national and county governments over a span of seven months, have sparked controversy and calls for accountability.
In a statement issued on Wednesday, March 5, Senator Onyonka emphasized the gravity of the situation, urging authorities to provide clear explanations on several critical issues. He outlined five key demands that he believes require urgent clarification.
“This issue raises serious questions about compliance with public finance laws, the effectiveness of oversight institutions, and the risk of financial mismanagement,” read part of his statement.
Five Key Questions Raised
- Legality of Manual Withdrawals – The senator questioned whether the manual withdrawals were legally sanctioned and whether they complied with the provisions of the Public Finance Management Act, 2012. He sought confirmation on whether due process was followed.
- Destination of the Funds – Onyonka called for transparency regarding where exactly the withdrawn money was directed. He demanded details on which ministries, departments, agencies, and counties received the funds.
- Role of the Controller of Budget (CoB) – The senator sought clarification on whether the Controller of Budget had properly sanctioned the transactions and if all the required financial accountability measures had been observed.
- Preventive Measures for the Future – He inquired about the steps the government was taking to prevent similar occurrences in the future and whether there were efforts to fully automate the exchequer system to minimize risks.
- Impact on National Budget and Debt – Lastly, he wanted to know how these massive withdrawals had affected the national budget, public debt, and the financial allocations to counties.
Treasury Responds to Allegations
The senator’s demands came just days after reports surfaced, alleging that both levels of government had bypassed the automated system to withdraw Ksh1.3 trillion for debt payments, pensions, and other expenditures between July 12, 2024, and February 20, 2025.
Following the reports, the National Treasury quickly issued a statement refuting the claims. The statement, released on February 2, addressed concerns raised in a Daily Nation publication, insisting that the withdrawals were done within the legal framework.
The Treasury clarified that while most financial transactions in Ministries, Departments, and Agencies (MDAs) had been automated, some still required additional clearance procedures, which had not yet been fully digitized.
Treasury Principal Secretary Chris Kiptoo reassured the public that all financial transactions were subjected to rigorous oversight and strict legal procedures.
“A section of the media has today published a report alleging irregularities in exchequer withdrawals, particularly a Ksh1.3 trillion withdrawal over the past seven months. While we await the official report from the Controller of Budget, the National Treasury wishes to set the record straight,” read part of the statement.
The Treasury further explained that until the end of the 2023/24 financial year, some exchequer requests and withdrawals were still being processed manually due to the ongoing automation transition. However, it assured that every transaction was reviewed and approved by the Controller of Budget to ensure compliance with financial regulations.
This latest development has intensified scrutiny on the management of public funds, with growing calls for more transparency and accountability in government financial transactions.
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