Kenya Treasury to mop up $3bn public funds from banks

Kenya’s National Treasury will this month begin mopping up government funds from commercial banks as the initial phase of implementing the Treasury Single Account (TSA) project takes affect after close to 10 years of planning.

The latest move is likely to cause a shake-up in the liquidity position of the banking industry in which government cash constitutes between eight and 10 percent of the total bank deposits. For example, government deposits in commercial banks stood at Ksh435.87 billion ($3 billion), accounting for 8.69 percent of the total bank deposits of Ksh5.01 trillion ($34.55 billion) as at December 31, 2022, according to Central Bank Statistical Bulletin (December 2022).