Scandal! Ksh1.3 Trillion Vanishes from CBK in Seven Months – Treasury Scrambles to Explain
The National Treasury has responded to claims that over Ksh1.3 trillion was withdrawn from the Central Bank of Kenya by the national and county governments within seven months.
On Sunday, March 2, Principal Secretary Chris Kiptoo released a statement dismissing these allegations. He clarified that while exchequer requests and withdrawals were processed manually until the end of the 2023/2024 financial year due to the lack of automation, all transactions followed strict legal and financial rules.
“A media report today suggested irregularities in exchequer withdrawals, particularly the claim that Ksh1.3 trillion was withdrawn in seven months. While we await the official report from the Controller of Budget, the National Treasury wants to set the record straight,” the statement read.
“Until the end of the 2023/24 financial year, exchequer requests and withdrawals were handled manually because automation had not been completed. However, each withdrawal adhered to strict legal and financial guidelines. The Controller of Budget reviewed and approved every transaction to ensure full compliance with public finance laws.”
Kiptoo also noted that a major reform began on July 1 to automate the exchequer process in collaboration with the CBK and the Controller of Budget. The goal was to improve efficiency, reduce processing time, enhance accountability, and strengthen financial oversight.
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As a result, all Ministries, Departments, and Agencies (MDAs) under the national government transitioned to this automated system. The Controller of Budget now digitally approves exchequer requests. However, some transactions have not yet moved to this system because they require a different approval process. These include debt payments, county transfers, the Judiciary Fund, and the Equalisation Fund. Work is ongoing to integrate them into the system.
Despite these changes, Kiptoo assured that even manual transactions were carefully monitored, leaving no room for mismanagement.
“The National Treasury confirms that all exchequer withdrawals, whether manual or automated, are subjected to strict legal and financial oversight,” the statement continued.
“The Controller of Budget ensures that all transactions comply fully with public finance regulations. At no point has public money been lost or misused through this process.”
The statement concluded by promising a more detailed response once the Controller of Budget releases the official report.
In its February 2 issue, the Daily Nation published an exclusive report alleging that the national and county governments manually requested Ksh1.3 trillion to pay off debts, pensions, and other expenses, avoiding the automated system.
The report stated that this information came from a confidential document submitted by the Controller of Budget to the National Assembly’s Committee on Finance and National Planning. It indicated that these transactions took place between July 12, 2024, and February 2025.
Scandal! Ksh1.3 Trillion Vanishes from CBK in Seven Months – Treasury Scrambles to Explain
