Treasury Cabinet Secretary John Mbadi has appealed to Principal Secretaries to take a stronger, hands-on role in protecting public resources, saying the government cannot continue operating under systems that allow waste or weak control of finances. He warned that with close to half of the country’s revenue already committed to debt repayment, every sector must adjust and adopt stricter financial discipline.
Addressing government officials during the 2026/27 public sector budget hearings on Wednesday, Mbadi said the country’s progress in stabilizing its finances should encourage officials to be more deliberate in how they plan and spend. He noted that the economy can only remain steady if public institutions show responsibility in managing funds.
“All government officials, especially Principal Secretaries and accounting officers, must employ prudent financial management and reduce wastages so that we don’t continue in the same trajectory that has put us where we are today,” he said.
Mbadi explained that although Kenya has moved away from concerns over its ability to pay its debts, it is now important to focus on reducing the cost of borrowing and ensuring that public funds are not lost through misuse or carelessness.
“The question today is, how can we reduce public debt? How can we borrow cheaply? These are the discussions we are having now,” he said.
He urged Principal Secretaries to take charge of the government’s ongoing reforms aimed at closing avenues for mismanagement. These include e-procurement, a Treasury Single Account, and a unified payroll system, all designed to improve systems and eliminate practices that expose the government to loss.
“The e-procurement system should not be a monster. It should be embraced as an efficient tool that helps you reduce pressures to manipulate procurement processes,” Mbadi said. “The Treasury Single Account and integrated payroll will help address challenges where salaries and other remittances were previously misapplied.”
The Cabinet Secretary also encouraged long-term planning, saying that the National Infrastructure Fund and Sovereign Wealth Fund will support the country’s infrastructure needs without placing more pressure on borrowing. He explained that money raised from the planned privatization of state corporations, including Kenya Pipeline, will be directed into these funds to help finance projects that can generate value.
“These reforms are not just for today; they will benefit future generations. We must manage resources prudently to leave a legacy of efficiency and sustainability,” Mbadi said.
He reminded Principal Secretaries that the responsibility of driving these changes falls directly on them and that their leadership is essential in ensuring that the government’s financial management improves.
“When I sign your letter as an accounting officer, I am delegating power to you. Use that power responsibly,” he said while opening the budget hearings.
