Controller of Budget Margaret Nyakang’o has secured access to thousands of bank accounts operated by county governments in commercial banks, marking a major step in efforts to tighten control over the use of public funds.
This follows the gazettement of the County Public Finance Laws (Amendment) Act 2025, which gives her office the authority to view transactions across all county accounts.
The change will allow real-time monitoring of cash inflows and outflows, making it easier to detect irregular financial activities.
As of June 2025, counties were running 5,476 accounts in commercial banks, more than double the 2,028 accounts recorded the previous year.
The rapid increase has triggered concerns that the accounts are being used to divert public money, away from the scrutiny of the Controller of Budget’s office.
According to the Public Finance Management (County Governments) Regulations of 2015, county bank accounts should be maintained at the Central Bank of Kenya.
The accounts in commercial banks are mainly used for county-established funds, processing salaries, and day-to-day operations.
“The Controller of Budget shall have viewer rights access to all bank accounts maintained by the county executive, county assembly, and all other county government entities,” reads part of the amended Act.
The 47 county governments have been facing growing criticism over opaque handling of public finances, with allegations that corrupt officials have been using commercial bank accounts to siphon money.
The lack of transparency has worsened cash flow challenges, disrupting critical services such as healthcare in several regions.
In recent months, Nyakang’o has pushed for closer oversight of these accounts to stem misuse. She noted that the new law will strengthen her office’s ability to track transactions and act as a deterrent to financial malpractice.
Data shows Homa Bay leads with 558 commercial bank accounts, followed by Kitui with 350, Nakuru at 311, Bungoma with 301, and Baringo with 280.
Counties are legally required to seek approval from the Controller of Budget before opening such accounts, but many have failed to comply.
The regulations bar counties from operating commercial bank accounts except for revenue collection and petty cash.
Alongside the Controller of Budget, Auditor General Nancy Gathungu has also raised concerns over the growing number of commercial bank accounts run by counties.