Why Treasury is Reclaiming Idle Cash Held by Public Entities in Commercial Banks

Kenya's government has started a new plan to get back all the unused money held by public offices in commercial banks.

This action is meant to pull government money back into the main banking system and is part of the first steps to launch the Treasury Single Account (TSA), a system created by the National Treasury and the Central Bank of Kenya (CBK).

CBK will use the new system to taste and see all bank accounts used by government bodies.

Jonah Wala, a director at the National Treasury, told The EastAfrican, the new system came about after a survey last year to count and value these accounts failed because the Treasury found the banks to be insincere with the information they gave.