Sifuna questions Nairobi County’s directive to move hospital accounts to Sidian Bank
The directive, issued by Nairobi County Secretary Godfrey Akumali on November 5, instructed CEOs of Level 4 and 5 hospitals, along with officers managing county health facilities, to transition their banking to Sidian Bank.
Nairobi Senator Edwin Sifuna has expressed concerns over a recent directive from Nairobi County requiring all public health facilities to open accounts with Sidian Bank.
In a letter dated November 12 addressed to Governor Johnson Sakaja, Sifuna called the move unusual, noting that most hospitals have historically operated accounts with Co-operative Bank.
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“The health facilities in Nairobi have been banking with Cooperative Bank, a tier one Bank with a solid history and reputation. How you wake up one day and direct all of them to move to a tier 3 bank cannot be explained any other way than that corruption is at play,” Sifuna stated.
The directive, issued by Nairobi County Secretary Godfrey Akumali on November 5, instructed CEOs of Level 4 and 5 hospitals, along with officers managing county health facilities, to transition their banking to Sidian Bank.
According to Akumali, the County Executive Committee, during its 69th meeting on October 28, resolved to appoint Sidian Bank as the county’s principal banker.
“This correspondence hereby serves to communicate the resolution of the County Executive Committee to request that you complete the attached forms to facilitate the opening of your respective accounts. Kindly attach all the required documents and submit the completed forms to the office of the County Executive Committee Member - Finance and Economic Planning by Friday, November 7, 2025. Your prompt attention to this matter will be highly appreciated,” the notice read.
Sidian Bank is among the six banks licensed by the Central Bank of Kenya to handle Social Health Authority (SHA) remittances.
The bank clarified that its role is strictly to collect contributions and forward them directly to the relevant SHA accounts, without managing the funds.
The directive has already drawn legal action. Civil rights group Bunge La Mwananchi, together with activists Lawrence Oyugi and Komrade Bush, has petitioned the High Court, arguing that the county’s move breaches several constitutional provisions, including Articles 10, 35, 43, 201, 227, and 232, which safeguard public participation, access to information, social and economic rights, and integrity in public service.
The petitioners have named Nairobi City County Government, the County Executive Committee Member for Finance and Economic Planning, the acting County Secretary, and the Attorney-General as respondents.
They argue that the directive has wide-reaching implications for health service delivery and financial accountability, and allege that the policy could indicate irregular arrangements involving Sidian Bank.
The activists are requesting the court to suspend the directive until the matter is heard, and to declare that the county acted unlawfully by issuing the instruction without consulting stakeholders or providing any justification for choosing a single bank.
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