Treasury Orders Public Entities to Dispose of Idle Assets by December

The National Treasury has instructed public entities to identify and dispose of unused, obsolete or surplus assets by December 31, 2026. In a circular, Treasury Cabinet Secretary John Mbadi emphasized that retaining such items unnecessarily increases costs and risks wasting public resources. Entities are required to submit progress reports to the Public Procurement Regulatory Authority (PPRA) by the deadline, with a copy sent to the National Treasury.

Mbadi cautioned that idle assets can deteriorate, lose value and incur higher storage and maintenance expenses. He also highlighted the risks of congestion, security concerns and accountability issues that arise from the accumulation of unused items. The Treasury CS directed public entities to finalize their asset disposal plans within the current financial year, rather than extending them to future years.

The National Treasury will collaborate with PPRA and other oversight bodies to ensure compliance with the directive. Mbadi urged public entities to analyze why assets become redundant and implement measures to prevent unnecessary accumulation. He called for the adoption of digital platforms to enhance asset tracking and reporting, and stressed the importance of officers understanding their legal obligations and facing accountability for their actions.