The Senate Standing Committee on Devolution and Intergovernmental Relations is pushing for immediate, real-time, and unrestricted access to all commercial bank accounts operated by county governments in a move aimed at curbing fiscal indiscipline and boosting transparency.
In its adopted report on county government bank accounts on September 25, 2025, the Committee recommended that the Central Bank of Kenya (CBK), the Controller of Budget (CoB), and the Office of the Auditor-General (OAG) be digitally linked to county accounts, with clear sanctions for non-compliance.
Committee Chairperson Senator Mohamed Abass described the proposal as a “game-changer” for oversight in Kenya’s devolved system.
"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," Senator Abass stated. "This will strengthen oversight, enhance transparency, and safeguard public resources."
The inquiry was sparked by repeated Auditor-General reports citing discrepancies, non-disclosure, and lack of clear banking rules governing county accounts.
Senators noted that these gaps have long raised doubts about the completeness and verification of accounts held by devolved units.
The Committee directed the National Treasury and the Auditor-General to carry out a comprehensive audit of all county commercial accounts, close inactive ones, and transfer remaining balances to the County Revenue Fund.
They further urged the Treasury to harmonize the Public Finance Management (PFM) Regulations for the National and County Governments noting that current county regulations offer limited flexibility for essential needs like managing donor funds, unlike the national regulations.
"National Treasury should harmonize these two laws since they disadvantage counties in managing donor funds and operational needs," Senator Oburu Odinga submitted.
The Committee emphasized that tighter coordination between the National and County Treasuries is vital to entrench fiscal discipline, accountability, and public trust in Kenya’s 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,” she said.
Nyakang’o 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.
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.