Senators push for real-time access to county bank accounts amid Auditor-General warnings

Following persistent concerns by the Auditor-General over undisclosed and irregular county bank accounts, Senators are now pushing for national institutions—including the Central Bank of Kenya (CBK), the Controller of Budget (CoB), and the Auditor-General—to be granted unrestricted access to county accounts.

During a Thursday session, the Senate Standing Committee on Devolution and Intergovernmental Relations said the measure would boost transparency and safeguard public resources.

Committee chairperson Senator Mohamed Abass described the proposal as a “game-changer” for oversight in devolved governments.

“The National Treasury must review the Public Finance Management (National Government) Regulations, 2015, to grant the Central Bank, Controller of Budget, and the Office of the Auditor General real-time system access to all accounts, with clear sanctions for non-compliance,” Mohamed said.

“This will strengthen oversight, enhance transparency and safeguard public resources.”

The recommendation follows repeated Auditor General reports flagging discrepancies, non-disclosure, and weak banking rules in county commercial accounts—issues that have long raised doubts about the accuracy and verification of devolved units’ financial records.

Beyond real-time access, senators also directed the National Treasury to work with the Auditor-General’s office to conduct a comprehensive audit of all county commercial bank accounts. They further called for the closure of dormant accounts and the transfer of residual balances to the County Revenue Fund.

Harmonise conflicting provisions

Siaya Senator Oburu Odinga emphasised the need to harmonise conflicting provisions of the Public Finance Management (PFM) Regulations for national and county governments, warning that the current framework limits counties’ ability to manage donor funds and operational expenses.

“National Treasury should harmonise these two laws since they disadvantage counties in managing donor funds and operational needs,” Senator Odinga said.

The committee stressed that stronger coordination between national and county treasuries is vital to ensure a transparent, accountable, and fiscally disciplined devolved system.

In her most recent report for the 2024–2025 financial year, CoB Margaret Nyakang’o revealed that county governments are running more than 5,400 commercial bank accounts, many of them without her office’s approval.

“As of June 30, 2025, county governments were running 5,476 accounts with commercial banks,” Nyakang’o said.

She explained that counties are required to seek approval and register any commercial bank account with the Controller of Budget before opening them, but many have failed to comply.

Nyakang’o noted that county treasuries had not submitted the mandatory authorisation letters for these accounts under the Public Finance Management Act—leaving public funds exposed to mismanagement and theft.

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Her report also highlighted disparities across counties: Kitui leads with 350 accounts, followed by Bungoma and Nakuru with over 300 each, Baringo with 280, Homa Bay 272, Kwale 240, Machakos 231, Embu 222, Kericho 245, Kisumu 190, Nairobi 174, Uasin Gishu 160, Nyamira 157, Elgeyo Marakwet 160, Kirinyaga 140, Trans Nzoia 135, Marsabit 120, Nyandarua 119, and Vihiga 121.

Counties with fewer accounts include Kiambu (75), Meru (71), Isiolo (68), Busia (57), Kajiado (52), Makueni (45), Nyeri (32), Laikipia (32), Taita Taveta (37), Lamu (37), Mandera (30), Garissa (26), Turkana (26), Samburu (24), West Pokot (24), Murang’a (20), Tana River (16), Tharaka Nithi (16), Siaya (15), and Nandi with just 10 accounts.