CIO East Africa (Nairobi)

31 March 2014

Kenya Govt to Adopt Electronic Payment Systems By April 2

Kenya government is set to adopt paperless payment system to stop revenue leakages in its system so as to improve accountability, efficiency and transparency in public sector transactions and prevent revenue leaks.

According to ICT Cabinet Secretary, Dr Fred Matiang'i, the process - to be complete by April 2, 2014 - is as a result of electronic payments having proven to boost economic growth, while advancing financial inclusion.

"The National Treasury will publish regulations to operationalize the Public Payment Act before the electronic payment system starts operating. The Government has done so much in terms of digitizing its payment system. What we want to do now is to ensure that this process is institutionalized," said Dr Matiang'i.

According to a report by the Auditor General, ministries and departments failed to account for over Kshs 338 billion of the total Government spending for the 2011-2012 fiscal year. The Auditor General states in the report that only six per cent (Kshs 55.2 billion) of the Kshs 920 billion that the Government spent during the financial year was fully accounted for.

An additional expenditure of Kshs 561 billion was not supported by adequate documents, thus the move to automate the payment system to seal loopholes for corruption.

The auditor said a third of the 252 financial statements of institutions audited were either deliberately misstated or revealed fraudulent expenditure, according to the Auditor General.

The new payments system would therefore help track Government transactions electronically hence eliminate fraud.

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