Govt Moves to Reclaim Idle Cash in Banks
The concerned will be told when a decision is made to take back idle cash, a Treasury official revealed...
✨ Key Highlights
The Kenyan government has initiated a new plan to reclaim unused funds held by public offices in commercial banks. This move is a precursor to the launch of the Treasury Single Account (TSA) system, developed by the National Treasury and the Central Bank of Kenya (CBK), aiming to consolidate government finances and reduce borrowing.
- The new system will allow CBK to view all government bank accounts, enabling recall of idle balances for pressing public needs.
- Director Jonah Wala of the National Treasury confirmed the system is being tested after banks were deemed insincere in a previous survey.
- Public bodies will no longer earn interest on these deposits, previously around 8.07 percent, and will be notified when funds are recalled for other uses.
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Government Acts on Public Funds: Tax Recovery, SHA Deductions, and UHC Worker Salaries - September 2025
The Kenyan government has initiated a plan to reclaim unused funds held by public offices in commercial banks, a move preceding the launch of the Treasury Single Account (TSA) system. The National Treasury and the Central Bank of Kenya developed the system to consolidate government finances. In a separate action, the Kenya Revenue Authority (KRA) successfully recovered Kshs. 123 million from a company involved in a tax fraud scheme at a Mombasa based container freight station. Additionally, the government has issued a 5-day notice to employers regarding Social Health Authority (SHA) deductions, warning of penalties for failure to remit payments by September 9, 2025. President William Ruto also affirmed that Universal Health Coverage (UHC) workers will be employed on permanent and pensionable terms, stating that funds have already been released to cover their salaries.
