Controller of Budget Margaret Nyakang’o.
Controller of Budget Margaret Nyakang’o has been granted access to the thousands of accounts that counties have opened with commercial banks, boosting efforts to curb abuse of funds.
This follows the gazettment of the County Public Finance Laws (Amendment) Act 2025, where the budget controller will now be able to monitor cash inflows and outflows, allowing for the flagging of suspicious transactions.
Counties had 5,476 accounts with commercial banks as of June 2025, which was more than double the 2,028 a year earlier. The sharp surge in the number of accounts has raised concerns that they may be abused to swindle taxpayer funds away from the scrutiny of the Controller of Budget office.
The Public Finance Management (County Governments) Regulations, 2015, stipulate that county bank accounts must be opened and maintained at the Central Bank of Kenya. The accounts held in commercial banks are used for county-established funds, salary processing, and 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 the amended Act in part.
The 47 counties are grappling with opaque use of taxpayers’ cash amid concerns that rogue officials are siphoning the money largely using the commercial bank accounts.
Low levels of transparency in the use of cash have exacerbated the cash flow woes that have paralysed critical operations such as healthcare.
Dr Nyakang’o has, in recent times, intensified calls to have the multiple commercial bank accounts of the counties kept in check.
She says her office will sparingly monitor the accounts, adding that the changes to the Act are a deterrent on their own.
“Now we shall be able to see the statements as long as public funds have passed through them. We shall view on a need basis. But knowing that we can view is a deterrent on its own, so it is a good thing,” Dr Nyakang’o said yesterday.
In the report, Kitui County leads, with 350 commercial bank accounts, followed by Nakuru at 311, Bungoma (301), Baringo (280) and Homa Bay (274).
Counties are required by law to seek approval from the CoB’s office before opening these bank accounts, a requirement that they had breached.
The Public Finance Management (County Governments) Regulations, 2015 bar counties from operating accounts at commercial banks, except for revenue collection and petty cash.
Besides Dr Nyakang’o’s office, the Auditor-General, Nancy Gathungu, has also questioned the thousands of commercial bank accounts.
Editor’s Note: This story has been amended following Dr Nyakang’o’s admission of an error in the number of commercial bank accounts held by Homa Bay County. From the initial 558 indicated in the report, the CoB has since clarified that the Governor Glady Wanga-led county has 274 bank accounts.
