The Controller of Budget (CoB) Margaret Nyakang’o has raised concerns over the growing number of commercial bank accounts operated by county governments, warning that many of the accounts lack the required documentation and approvals, raising transparency and accountability concerns.
According to the latest County Governments Budget Implementation Review Report, county governments reported operating 6,585 commercial bank accounts as of March 31, 2026, up from 6,386 accounts recorded at the end of December 2025.
The CoB noted that county treasuries had failed to submit copies of authorization letters for the accounts, making it difficult to verify their legitimacy and intended purpose.
“County Treasuries had not submitted copies of authorization letters for these accounts to the Controller of Budget as required, thereby limiting transparency and assurance regarding the number and purpose of commercial bank accounts maintained by counties,” the report states.
Under the Public Finance Management (County Governments) Regulations, 2015, county governments are required to operate their bank accounts through the Central Bank of Kenya, except for specific categories of accounts such as imprest, petty cash, revenue collection accounts and other accounts approved under the law.
The regulations further require accounting officers to obtain written authorization before opening any commercial bank account and to submit the approval documents to the Controller of Budget for oversight purposes.
The report highlights a significant increase in the number of commercial bank accounts in some counties during the review period.
Meru County recorded the highest increase, opening 462 additional commercial bank accounts, while Machakos County reported 62 new accounts.
The Controller of Budget noted that the affected counties did not provide explanations for the sharp increase in the number of accounts.
The latest findings are expected to intensify scrutiny of county financial management practices, with concerns that inadequate oversight of commercial bank accounts could expose public funds to misuse and weaken accountability mechanisms within devolved units.
The CoB has repeatedly emphasized the need for county governments to comply with public finance regulations to strengthen transparency, safeguard public resources and improve financial accountability.
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