Why City Hall moved hospital accounts to Sidian Bank- Sakaja
The decision has faced scrutiny from some political leaders who raised concerns about transparency. However, the county has directed all Level 4 and 5 hospitals and officers in charge of health facilities to open accounts with Sidian Bank.
Nairobi Governor Johnson Sakaja has explained why the county decided to move its hospital accounts to Sidian Bank, saying the step was necessary to address financial and operational challenges within the health sector.
Speaking to the Senate Committee on Devolution and Intergovernmental Relations on Monday, Sakaja said the previous bank had caused delays in salary payments, making it hard for the county to pay health workers on time, especially when national government funds were late.
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He described the move as a measure to improve efficiency and service delivery across county health facilities.
He clarified that the action fully complied with the law, noting that the Public Finance Management Act allows counties to open accounts with any bank.
He also pointed out that the earlier bank offered poor interest rates, which prompted Nairobi County to search for a better deal.
“Sidian had a cheaper interest rate and gave us a better offer. It is a good deal. We invited many banks, and Sidian presented the best package. As for ownership, every bank has owners, but what matters is good service,” Sakaja emphasised.
The governor told the committee that the main goal of the move was administrative. He explained that delays in cheque processing had made it difficult to pay workers promptly, while the previous bank’s high rates were not favourable for the county.
“It was an administrative issue. The main challenge we had was management; there were cheque delays, and we struggled to pay workers. The interest rates from the previous bank were also very high, so we decided to move to Sidian Bank after they gave us a better offer,” he added.
Sakaja said the shift aimed to streamline financial operations and ensure timely salaries for health staff. Following the move, Sidian Bank has become the principal banker for all Nairobi County hospitals.
The decision has faced scrutiny from some political leaders who raised concerns about transparency. However, the county has directed all Level 4 and 5 hospitals and officers in charge of health facilities to open accounts with Sidian Bank.
The resolution was passed during the 69th County Executive Committee meeting on October 28, 2025, where Sidian Bank was formally designated as the county’s main banker for the health sector.
“In its 69th Meeting held on October 28, 2025, the Nairobi City County Executive Committee resolved to designate Sidian Bank as its Principal Banker,” part of a letter to hospital heads read.
“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.”
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