What the ac­count will do

The East African - - MARKETS -

En­sure com­plete over­sight over gov­ern­ment’s cash flows by forc­ing gov­ern­ments to with­draw all pub­lic funds from com­mer­cial banks, thus re­duc­ing the cash­flow within the bank­ing sec­tor. The down­side of this is that it will sub­se­quently sti­fle eco­nomic ac­tiv­ity by re­duc­ing lend­ing to the pro­duc­tive sec­tors of the econ­omy.

It also means the gov­ern­ment will op­er­ate fewer if not no ac­counts in com­mer­cial banks and this will see re­duced costs re­lated to services of­fered by com­mer­cial banks to the gov­ern­ment.

It will sup­ple­ment the elec­tronic In­te­grated Fi­nan­cial Man­age­ment In­for­ma­tion Sys­tem in seal­ing loop­holes used to loot pub­lic funds.

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