Use blockchain to fight graft

4 views 8:00 pm 0 Comments November 29, 2023
The relentless disclosure of widespread corruption in handling public funds is alarming nationally.

Kenya is witnessing an alarmingly ever-expanding list of financial scandals, from the vanishing Eurobond money to issues like the alternative data recovery project, SGR, and the Arror and Kimwarer dams.

County governments are not immune, facing horrors such as ghost workers, inflated pending bills, and double payments, per the Auditor-General’s reports.

Luca Pacioli’s revolutionary double-entry accounting, designed for traceability of assets, starkly contrasts Kenya’s persistence with the outdated single-entry system.

This choice, combined with the absence of integrity and transparency in political leadership, compounds challenges in financial management.

The Kenyan population burdened by heavy taxation should advocate a transition to a more inclusive and trustworthy system in response to these issues.

This shift, facilitated by blockchain technology and its Trust protocol, has the potential to transform transactions into a dynamic ledger, offering real-time recording and a comprehensive history of assets and relationships.

The current scenario, where malpractices are exposed long after the fact, contrasts sharply with the benefits of real-time audit enabled by blockchain.

The deployment of Kenya’s Central Bank Digital Currency can bolster this approach. Additionally, amending the Public Finance Management Act, 2012 (Amendment Bill 2022) to formally recognize and incorporate blockchain technology in financial management systems is a necessary step forward.