Counties face tightened oversight as controller of budget gains legal access to bank accounts

County governments will now operate under closer scrutiny after Controller of Budget Margaret Nyakang’o was granted legal access to thousands of county bank accounts in commercial banks, a reform aimed at curbing misuse of public funds.

The move follows the enactment of the County Public Finance Laws (Amendment) Act 2025, which empowers the Controller of Budget to view all transactions conducted through county accounts. The law is expected to seal loopholes that have enabled funds to be diverted without proper oversight.

By June 2025, counties were running 5,476 accounts, more than double the 2,028 recorded the previous year, raising alarm over accountability and the potential misuse of taxpayers’ money. These accounts are mainly used for established funds, operations, and salary payments, but lax controls have left them vulnerable to abuse.

“The Controller of Budget shall have viewer rights access to all bank accounts maintained by the county executive, county assembly, and all other county government entities,” reads part of the amended law.

Counties have repeatedly flouted rules requiring clearance from the Controller of Budget before opening new accounts. Regulations passed in 2015 only allow commercial bank accounts for revenue collection and petty cash, yet the number has ballooned sharply.

Homa Bay leads with 558 accounts, followed by Kitui with 350, Nakuru at 311, Bungoma with 301, and Baringo with 280.

The lack of transparency has worsened cash flow problems, causing delays in essential services such as healthcare. Both Controller of Budget Margaret Nyakang’o and Auditor General Nancy Gathungu have expressed concern over the proliferation of accounts, stressing the need for tighter oversight.

Nyakang’o has argued that direct access to county financial records will strengthen accountability and ensure public money is used to deliver services rather than lost in bureaucratic loopholes.

The reform now sets the stage for heightened fiscal discipline across devolved units, as counties adjust to tougher monitoring of their financial dealings.