Senate Probes Nairobi County's Banking Moves, With a Collective 5,400 Commercial Bank Accounts

Kenya, 24 November 2025 - Tensions have flared in Parliament as the Senate’s Committee on Devolution and Intergovernmental Relations intensifies its scrutiny of county governments’ banking practices.

The spotlight is currently on Nairobi County, where lawmakers are raising serious concerns over the shift of public funds, unexplained accounts, and possible politicization of financial management.

According to reports from the Controller of Budget, counties in Kenya collectively maintain more than 5,400 commercial bank accounts, many allegedly outside authorised frameworks.

During committee hearings, senators argued this proliferation of accounts places public funds at risk, reducing transparency and exposing critical weaknesses in how county money is managed.

The Senate is demanding real-time access to these accounts for key oversight bodies like the Central Bank of Kenya (CBK), the Auditor-General, and the Controller of Budget.

Yet, as CBK Governor Kamau Thugge has told the committee, a regulatory gap means the Bank lacks clear power to force counties to close unauthorised accounts.

The Public Finance Management (PFM) Act, he said, does not explicitly give CBK enforcement authority, a loophole that critics call deeply problematic.

Nairobi’s Controversial Cash Reallocation

At the heart of the issue is a controversial banking decision made by Governor Johnson Sakaja.

Nairobi County moved funds belonging to its health facilities from Co-operative Bank, a large and well-established institution, to Sidian Bank, a smaller “tier‑three” bank.

Critics have panned the move as “politicized” and risky, raising red flags over why public money would be shifted to a less stable banking partner.

Senator Edwin Sifuna has been particularly vocal, accusing the county government of prioritizing political alliances over sound financial management.

He argues that switching significant public funds to a smaller bank increases risk and could undermine trust in how Nairobi handles its budget.

Public Frustration and Political Fault Lines

On social media and public forums, debates around the banking controversy are deeply emotional.

One user on social media wrote of systemic misuse of county funds, describing how billions disappear in accounts that are difficult to monitor.

Others express a broader disillusionment with devolution, suggesting the system was meant to empower locals but now enables waste and politicized decisions.