The government has barred accounting officers across Ministries, Departments and Agencies (MDAs) from entering into governance-related agreements with development partners without prior approval from Cabinet, in a move set to centralise oversight of donor-funded programmes.
The directive was issued by Ramathan Ggoobi in his capacity as Secretary to the Treasury through the second Budget Call Circular guiding the finalisation of ministerial policy statements and detailed revenue and expenditure estimates for the 2026/27 financial year.
In the circular dated February 13, 2026, Ggoobi said the guidance is in line with Cabinet Minute 164 (CT 2025), underscoring that the decision is binding on all government entities.
Under the new instructions, Accounting Officers are specifically prohibited from signing contracts or Memoranda of Understanding (MoUs) with development partners on governance matters without explicit Cabinet clearance.
The circular further provides that any financing proposals related to governance must first undergo a structured consultative process involving key state institutions.
These include the Ministry of Finance, Planning and Economic Development, the Ministry of Justice and Constitutional Affairs, the Ministry of Foreign Affairs and, where necessary, the Ministry of Internal Affairs.
The Treasury emphasised strict compliance, warning that any deviation from the directive would amount to a breach of the Cabinet decision.
The move is expected to tighten government control over governance-related programmes funded by development partners, as ministries finalise preparations for the 2026/27 financial year budget.
