Treasury to wind up idle colonial era funds

Treasury Cabinet Secretary Ukur Yatani. FILE PHOTO | NMG

By EDWIN MUTAI
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The Treasury is set to wind up dormant funds including those created in the colonial era which Parliament sanctioned their closure eight years ago.

In 2013, the Treasury disclosed to Parliament that it was holding Sh802 million in six dormant accounts.

The Treasury has tabled the list of eight funds and asked Parliament to approve the dissolution of the inactive national government public funds.

Those set for winding up are the Provident Fund, Kenya Loans Support Fund, Pre-shipment Inspection Fund, Sinking Fund, the Government Coast Agency Fund, the Joint Consolidated Fund, the Treasury Main Clearance Fund and the Asian Widows and Orphans Pension Fund.

“The National Treasury now seeks the approval of the National Assembly to wind up the above national public funds in line with section 24(8) of the Public Finance Management Act, 2012,” Treasury Secretary Ukur Yatani said in a letter to the Clerk Michael Sialai.

The Cabinet on March 2 approved the winding up of the eight dormant national government public funds.

The Public Accounts Committee in their review of the national government public accounts recommended the winding up of the funds.

The defunct National Assembly’s Local Authorities and Funds Accounts Committee recommended that another eight accounts be restructured to make them more useful.

Some of the accounts were created in the colonial era and, in some cases, the money is tied up in companies that have since been put under liquidation.