Nairobi, Feb. 2 -- So, what is a Treasury Single Account (TSA) and what are the likely consequences if the government implements the new system?

Because of numerous responses I received from readers on an article I did on the subject recently, I feel compelled to return to the issue.

You will recall the recent announcement by the Cabinet of the intention by the government to shut all of its bank accounts in the banking system by centralising and consolidating its cash resources into one system known in jargon as a Treasury Single Account (TSA), which is to be based at the Central Bank of Kenya (CBK).

That announcement has sparked a new wave of uncertainty across the banking system, with analysts predicting that a TSA would drain liquid...