Controller of Budget Margaret Nyakang’o has sounded the alarm after revealing that counties are operating over 5,400 commercial bank accounts, many without the mandatory approval from her office.
In her 2024–2025 financial year report, Nyakang’o noted that counties are legally required to seek clearance before opening commercial bank accounts, as stipulated by the Public Finance Management Act. However, the majority have ignored this regulation, posing what she termed a serious financial risk.
“As of June 30, 2025, county governments were running 5,476 accounts with commercial banks,” Nyakang’o said, adding that treasuries have failed to submit authorization letters as required.
Homa Bay tops the list with 558 accounts, followed by Kitui (350), Bungoma and Nakuru (over 300 each), and Baringo with 280. Kiambu County is operating 75 accounts, while Murang’a has 20 and Nyeri 32.
Nyakang’o warned that the proliferation of unauthorized accounts increases the risk of mismanagement, theft, and lack of accountability in handling public funds. She stressed that by law, county bank accounts should be held at the Central Bank of Kenya, except for specific cases such as imprest, petty cash, or revenue collection.
Her report also pointed out widespread non-compliance with Regulation 82 of the County Governments Financial Management Regulations, 2015, which requires County Treasuries to seek written approval and forward copies to the Controller of Budget.
The watchdog now says counties must urgently comply to safeguard taxpayer money and restore transparency in financial management.
