Nairobi: Cabinet Secretary for the National Treasury John Mbadi has called upon Principal Secretaries to ensure prudent financial management of funds allocated to their state departments, emphasizing the need to stop wastage of resources.

According to Kenya News Agency, Mbadi highlighted the government's proposal for reforms on fund utilization and encouraged Principal Secretaries, who serve as accounting officers of State Departments, along with other government officers, to adopt these reforms for national advancement. He announced the implementation of the treasury single account by the National Treasury to enhance efficiency and urged public officers to adopt E-procurement as it offers efficient service delivery.

Mbadi noted that prior to e-procurement, many practices led to inefficiency and were counterproductive. He added that the government aims to move away from zero rating of commodities due to the corruption it fosters within the system.

The CS made these remarks during the Public Sector Hearings for the FY 2026/27 and the Medium-Term Budget at the Kenyatta International Convention Centre. The event brings together senior government officers, stakeholders, and the public for three days to discuss budget reviews.

Sector Working Groups have been tasked to ensure adherence to the hard budget constraint throughout these public-sector hearings. These groups are responsible for meticulously scrutinizing budget proposals from ministries, departments, and agencies to ensure compliance with budget constraints.

Mbadi reaffirmed the government's commitment to fiscal consolidation as a strategy to manage debt accumulation, with a target to reduce the fiscal deficit to 3 percent of Gross Domestic Product. He also mentioned that the Treasury is working on integrating the payroll system to prevent unauthorized deductions from employees' salaries for bank and sacco loans.

The CS remarked that some deductions are not being remitted correctly and are used elsewhere, which he termed as immoral. He believes that the ongoing reforms will help tackle such challenges and curb resource wastage.

Additionally, Mbadi mentioned the government's consideration of innovative funding methods for infrastructure, including the establishment of a National Infrastructure Fund aimed at facilitating the construction of major roads and dams.