Senate pushes for real-time access to County bank accounts in fresh move to tackle misuse of public funds

The Senate Committee on Devolution and Intergovernmental Relations is calling for real-time access to all county government bank accounts by the Central Bank of Kenya (CBK), the Auditor-General, and the Controller of Budget (CoB).

Lawmakers say the proposal is aimed at tackling corruption, enhancing fiscal discipline, and ensuring counties use public funds more transparently.

Committee chair Senator Mohamed Abass described the plan as a “game-changer” in the fight against graft, citing consistent reports from the Auditor-General that have flagged irregularities in the management of devolved funds.

“The National Treasury must review the Public Finance Management Regulations to grant the CBK, CoB, and Auditor-General direct system access to county accounts, with clear sanctions for non-compliance,” Senator Abass said.

The committee’s report, officially adopted this week, stems from an inquiry into why some counties are holding a disproportionately large number of accounts, many of which remain dormant or are operated without proper oversight.

According to the CoB’s latest budget implementation review, Kitui County topped the list with 350 bank accounts, followed by Nakuru with 311 and Bungoma with 301. Other counties with high numbers include Baringo (280), Homa Bay (274), and Kericho (245).

In contrast, Nandi had only 10 accounts, Kisii 14, and Siaya 15 figures that raised questions about why some counties manage finances through a few accounts while others operate hundreds.

Senators argue that the existence of so many accounts makes it easier to conceal transactions, delay audits, and divert funds meant for service delivery. They now want inactive accounts closed and residual balances moved to the County Revenue Fund to enhance transparency.

The committee also urged the Treasury to work closely with the Auditor-General to conduct an immediate and comprehensive audit of all county commercial bank accounts before reforms are implemented.

Counties such as Nairobi, Mombasa, Kiambu, and Kisumu which command larger budgets surprisingly did not appear at the top of the list. Nairobi had 174 accounts, Mombasa 94, Kiambu 74, and Kisumu 190.

Senators believe such disparities reflect a lack of uniform financial management standards across devolved units.

The recommendations, if adopted, could significantly change how counties handle money and curb misuse of funds, especially as concerns grow over stalled projects, delayed salaries, and misallocation of devolved resources.