NAIROBI, Kenya – In response to the escalating issue of unpaid bills, the Public Sector Accounting Standards Board (PSASB) has announced a strategic shift to the accrual accounting system for both national and county governments. This move, endorsed by the Cabinet, is expected to address the longstanding challenge of pending payments that have significantly impacted various government sectors and small businesses.
According to Kenya News Agency, the transition to accrual accounting marks a crucial step toward rectifying the current financial reporting system’s deficiencies, which have contributed to the accumulation of pending bills. Unlike the traditional cash-based approach, the accrual system recognizes transactions at the time they occur, providing a more accurate financial picture and facilitating better management of public resources.
The shift aims to improve transparency and accountability within government financial practices by including all liabilities, such as outstanding bills, on balance sheets. This method is anticipated to enhance the process of recording, verifying, and settling financial obligations, thereby benefiting various stakeholders, including contractors and small business owners affected by payment delays.
During a recent sensitization event for accounting officers, Nduatih highlighted the significance of this reform in addressing the persistent issue of pending bills, which undermines the country’s economic stability and the viability of small enterprises. He also emphasized that the new system would facilitate more effective oversight by allowing timely audits and reviews by the Auditor General and parliamentary committees.
The implementation of accrual accounting is also set to standardize financial reporting across government entities, encouraging investment by providing a clearer fiscal picture to domestic and international investors. PSASB CEO Georgina Muchina noted that prioritizing pending bills under this system is expected to restore confidence in government financial reporting.
As part of the initiative to ensure a smooth transition, several measures are being undertaken, including updates to financial management information systems and asset valuations. Tana River County’s Executive Member for Finance, Brenda Mokaya, endorsed the new system, acknowledging its potential to alleviate the burden of accumulated bills at the county level and enhance fiscal responsibility.
The adoption of accrual accounting in Kenya represents a significant reform intended to address the critical issue of pending bills, aiming to foster a more accountable and efficient public sector financial environment.
MIGORI, Kenya – Authorities in Migori County have escalated efforts to combat the distribution and consumption of illicit alcohol and bhang, unveiling a significant operation targeting those involved in these illegal activities. The government’s resolve to intensify the crackdown is part of a broader strategy to curtail the rampant abuse of controlled substances, which has adversely affected the local population, particularly the youth.
According to Kenya News Agency, a multi-agency task force has been deployed to conduct thorough inspections across the region. The task force, comprising members from the National Authority for Campaigns Against Drug Abuse (NACADA), Anti-counterfeit Agency, Kenya Bureau of Standards (KEBS), Kenya Revenue Authority (KRA), and the Department of Public Health, has already achieved significant breakthroughs. These include the seizure of large quantities of counterfeit alcohol and bhang, alongside the apprehension of several individuals found in violation of the law.
The campaign reflects a stern warning issued by Deputy President Rigathi Gachagua, emphasizing the government’s commitment to eradicating the menace of illicit brews and drugs. Failure to comply with these directives, he cautioned, would result in severe consequences for local officials, including dismissals rather than transfers.
Migori’s operation has underscored the urgent need to enhance border security, particularly along the Kenya-Tanzania boundary, to prevent the smuggling of illicit substances. Porous border points at Isebania, Kopanga, and Nyamtiro have been identified as critical routes for contraband entering Kenya, necessitating reinforced surveillance and enforcement.
While the crackdown on illicit alcohol has shown promise, the fight against bhang trafficking presents more formidable challenges, given the deep-rooted networks and the substantial demand from within Kenya. Efforts to engage Tanzanian authorities in a collaborative clampdown have faced hurdles, despite shared international obligations to curb drug trafficking.
Local officials remain determined to sustain the momentum of the crackdown, aiming to dismantle the supply chains and diminish the availability of harmful substances in Migori County. As the campaign progresses, authorities pledge to maintain vigilance and adapt their strategies to counter the evolving tactics of those engaged in the illicit trade.