Treasury Principal Secretary Chris Kiptoo said the automation marks a significant step in the modernisation of the country’s public financial management framework and will eliminate long-standing inefficiencies associated with manual and paper-based processes.
In a statement shared on his social media platforms on Tuesday, January 27, Kiptoo said the new system will be deployed under the Treasury Single Account (TSA) framework, allowing for seamless coordination across key government institutions involved in debt servicing.
“Automation of external debt payments represents a major milestone in the modernisation of Kenya’s public financial management systems,” Kiptoo said, adding that the reform will improve governance and oversight of the country’s external debt obligations.
According to the Treasury PS, the platform has been fully developed and tested and is now ready for deployment.
The system integrates several critical government platforms, enabling a secure, end-to-end digital process for external debt payments—from initiation to final execution.
Kiptoo explained that the automated framework brings together the Meridian Debt Management System, the Central Bank of Kenya’s exchange rate system, the Integrated Financial Management Information System (IFMIS), the Exchequer requisition process, and approvals from the Office of the Controller of Budget.
“The system enables seamless generation, verification, approval, and execution of debt payment instructions while transitioning completely from manual workflows to secure digital processes,” he said.
The automation is expected to significantly reduce processing delays, human error, and risks associated with fragmented systems.
Kiptoo explained that the automated framework brings together the Meridian Debt Management System, the Central Bank of Kenya’s exchange rate system, the Integrated Financial Management Information System (IFMIS), the Exchequer requisition process, and approvals from the Office of the Controller of Budget.
“The system enables seamless generation, verification, approval, and execution of debt payment instructions while transitioning completely from manual workflows to secure digital processes,” he said.
The automation is expected to significantly reduce processing delays, human error, and risks associated with fragmented systems.
Treasury officials say the move will also enhance real-time monitoring of debt payments, ensuring timely settlement of obligations and improving confidence among lenders and development partners.
Kiptoo revealed that the system is scheduled to go live on February 2, 2026, following a series of briefings by the project implementation team on its readiness.
Kiptoo revealed that the system is scheduled to go live on February 2, 2026, following a series of briefings by the project implementation team on its readiness.
He noted that the Treasury has taken a cautious approach to ensure the transition does not disrupt ongoing debt servicing operations.
To mitigate operational risks, the Treasury plans to run the automated system alongside the existing manual processes for a limited period.
“A parallel run for one month will be undertaken to ensure a smooth, controlled, and risk-mitigated transition,” Kiptoo said.
Public finance experts have welcomed the move, noting that automation could help address long-standing concerns over debt transparency and accountability.
To mitigate operational risks, the Treasury plans to run the automated system alongside the existing manual processes for a limited period.
“A parallel run for one month will be undertaken to ensure a smooth, controlled, and risk-mitigated transition,” Kiptoo said.
Public finance experts have welcomed the move, noting that automation could help address long-standing concerns over debt transparency and accountability.
Kenya’s external debt has grown significantly in recent years, heightening scrutiny over how repayments are processed and tracked.
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