Kenya’s parastatals have been banned from holding idle cash in bank accounts under a new public finance reform plan seeking to enhance transparency and efficiency in the use of public resources.
Treasury Cabinet Secretary Njuguna Ndung’u disclosed that the exchequer has officially adopted a hybrid model of a single account where ministries and State departments (MDAs) will operate accounts at the Central Bank of Kenya (CBK) while the accounts of the semi-autonomous agencies will remain in commercial banks on condition that no idle cash will be kept in these accounts.
