Controller of Budget uncovers 3,431 commercial accounts in counties
The counties with the highest number of accounts are Nakuru, Baringo, Machakos, and Embu, all running over 200 accounts each.
At least 11 counties are operating more than 100 bank accounts each in a widespread violation of public finance laws, a new report by Controller of Budget Margaret Nyakang’o reveals.
The counties with the highest number of accounts are Nakuru, Baringo, Machakos, and Embu, all running over 200 accounts each. Regulation 82 of the Public Finance Management (County Governments) Regulations, 2015, states that county bank accounts should be held at the Central Bank of Kenya.
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Yet, the report shows counties are continuing to open commercial accounts without following the required procedures.
“County governments are not complying with Regulation 82, as not all accounts are maintained at the Central Bank, and authorisation letters are not being shared with the Controller of Budget,” reads the report.
Baringo has 282 accounts, including 231 for health facilities, 23 for vocational training, and others for established funds, revenue collection, and operations. Nairobi County has 174 accounts, eight held by the County Assembly and 166 by the County Executive.
In Machakos, 230 accounts are active, mostly for health centres, while Embu has 222, including 115 revenue accounts and 20 for special-purpose allocations.
Other counties flagged include Bomet (148), Elgeyo Marakwet (127), Marsabit (120), Nyamira (157), and Trans Nzoia (135).
Notably, counties are required to seek written approval from their respective county treasuries before opening any commercial bank accounts.
The Treasury must then send copies of the approvals to the Controller of Budget and the Auditor-General.
“The only exemption is for imprest bank accounts for petty cash and revenue collection bank accounts,” the report clarified.
Despite the legal requirement, county governments opened 1,763 new accounts in commercial banks between March 2024 and March 2025.
This has brought the total number of commercial accounts to 3,431, more than double what was recorded a year earlier. Kakamega and Kilifi did not submit their account data, meaning the actual number may be even higher.
The report warns that the widespread use of commercial accounts, many linked to hospitals, training centres, bursary funds, car loans and special funds, has complicated tracking of public spending.
The Budget Controller noted that some accounts may be used for personal dealings, exposing counties to potential loss of public funds and legal risks.
In 2021, Nyakang’o sought powers for her office to access county accounts in real time, but the bid failed last year. Without these powers, oversight remains weak even as counties continue to defy financial management regulations.
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