Beginning July of this year, the government will bring all 47 counties under the Treasury Single Account (TSA) system to improve public funds management.
The TSA is a unified structure that consolidates government bank accounts, optimizing the use of public cash resources. This initiative aims to streamline government finances and ensure transparency and efficiency in public spending.
In January, the Cabinet approved the implementation of TSA, targeting the billions of shillings in deposits held by the national government and other public sector entities.
The National Treasury plans to roll out the TSA in phases, with the first phase, launched last year, migrating all State organs, including constitutional institutions and independent offices, into the system.
Phase 2, outlined in the Treasury’s Budget Policy Statement (BPS), will focus on moving county governments to the TSA during the 2025-26 Financial Year, in consultation with the Intergovernmental Budget and Economic Council. Isiolo and Garissa are among the first counties to join the initiative.
The final phase, set for July next year, will include all other national government entities. By bringing counties into the TSA, the government aims to improve financial visibility, speed up budget execution, and enhance financial transparency at both national and county levels.
This initiative aligns with the preparation of the national budget for the 2025-26 financial year, which will remain at Ksh4.32 trillion, as confirmed in the 2025 Draft Budget Policy Statement (BPS).
In the financial year starting in July, the Treasury expects to collect Ksh3.516 trillion in taxes and non-tax revenue.
However, this will result in a budget deficit of Ksh813.9 billion, which the government plans to cover through borrowing.
