The National Treasury plans to launch a new integrated financial management system for both county and national governments by July next year.
National Treasury Cabinet Secretary John Mbadi reported that the system is currently 40 percent complete. This initiative aims to curb the annual loss of billions of shillings due to inefficiencies in the existing financial management frameworks.
Mbadi explained that the new system will consolidate all government financial management operations into a single, streamlined platform.
“My ministry is in the front line of reviewing Ifmis as a whole to ensure that we have an integrated financial management system that would capture all the data so that by the click of the button, you can have a complete view of what is happening,” he said.
He emphasized the urgency of completing the remaining 60 percent of development to meet the targeted rollout by the end of the current fiscal year. Mbadi acknowledged that although IFMIS was intended to unify various financial systems, it has failed to adapt to recent developments.
“The system has some failures or weaknesses which must be dealt with. So, we are looking at integrating our systems to have one where you can have a clear view of transactions,” he stated.
Kisii Senator Richard Onyonka raised concerns about inconsistencies in the government’s various financial systems. He questioned whether the government plans to create a straightforward financial system that interfaces with county governments, the national government, and all relevant departments, thereby enhancing transparency in taxpayer spending.
“Will you establish such a system to reduce the mismanagement or abuse that has occurred?” Onyonka asked.
In response, the Treasury chief acknowledged that excessive interfaces between officials and systems have led to opportunities for rent-seeking behavior among those involved.
Additionally, the Cabinet Secretary announced plans to automate pension management through a new information system that will integrate with the Teachers Service Commission’s payroll. A similar automation initiative is also underway at the Kenya Revenue Authority to enhance tax collection efficiency.
