NAIROBI, Kenya, October 19 – The National Treasury has directed public entities to identify and dispose of obsolete, idle and excess assets by the end of the year, warning that keeping them in storage increases costs and risks wasting public resources.
In a circular, Treasury Cabinet Secretary John Mbadi ordered accounting officers and heads of public entities to carry out the exercise in line with the Public Procurement and Asset Disposal Act, 2015.
The entities have until December 31, 2026, to submit reports on the status of the exercise to the Public Procurement Regulatory Authority, with a copy to the Treasury.
Mbadi said retaining assets that are no longer in use leads to further deterioration, loss of value and higher storage and maintenance costs. It can also create congestion, security concerns and accountability risks.
He directed public entities to complete disposal plans within the relevant financial year instead of carrying them forward to subsequent years.
The Treasury, working with the PPRA and other oversight institutions, will monitor compliance with the directive.
Mbadi also called on public entities to investigate why assets become obsolete or surplus and introduce measures to prevent unnecessary accumulation.
He urged government agencies to use digital platforms to improve asset tracking and reporting, and ensure officers responsible for managing and disposing of public assets understand their legal obligations and are held accountable.
