A recent report has exposed the extensive number of bank accounts held by county governments, raising concerns from oversight agencies about potential misuse of taxpayer funds.
According to the expenditure report by Controller of Budget Margaret Nyakang’o for the previous financial year, 43 counties manage a total of 2,027 bank accounts across various commercial banks.
Four counties—Kirinyaga, Mombasa, Siaya, and Tharaka Nithi—did not disclose their bank account records.
This report follows a warning from Auditor General Nancy Gathungu, who highlighted that the numerous accounts might be used as conduits for corruption. Gathungu has recommended that counties should maintain no more than 10 bank accounts.
The report reveals that Bungoma County, led by Governor Kenneth Lusaka, has 358 bank accounts; Kiambu, under Governor Kimani Wamatangi, has 306; Baringo, led by Benjamin Cheboi, has 283; and Migori, governed by Ochillo Ayacko, has 208.
“The Office of the Controller of Budget observed that county governments are using commercial bank accounts to manage public funds and other operational accounts,” Nyakang’o stated in the report.
This practice contradicts Regulations 82(1)(b) of the PFM (County Governments) Regulations, 2015, which mandates that county bank accounts should be held and managed at the Central Bank of Kenya (CBK), with exceptions only for petty cash and revenue collection.
Counties with a high number of accounts include Nyandarua (88), Kakamega (64), Busia (62), and Taita Taveta (37). In contrast, counties with fewer accounts include West Pokot (4), Vihiga (5), Kitui (5), and Nandi (7).
Senator Eddy Oketch criticized the disparity, noting that some counties operate multiple accounts for the same services, which could be exploited for corruption. Gathungu agreed, emphasizing that managing over 10 bank accounts seems excessive and could facilitate financial mismanagement.
The Senate Devolution and Intergovernmental Relations Committee is investigating the issue, with Governor Lusaka defending the number of accounts, claiming they are necessary for managing public funds and donations. Lusaka assured that all accounts are audited and comply with regulations.
The investigation continues as the committee seeks to address the concerns raised about financial management and potential corruption in county governments.
