County governments have expanded their commercial banking footprint by more than 1,400 accounts in a year, even as Treasury rolls out reforms aimed at bringing public funds under one cash management system.
The number of commercial bank accounts operated by the 47 counties increased by 27.7 per cent, rising from 5,092 in June 2025 to 6,503 by June 30, 2026, according to the Controller of Budget (CoB).
The increase has raised fresh concerns over the management and oversight of county funds, particularly because the county treasuries have not submitted documents showing that the commercial accounts received the approvals required under public finance rules.
County governments are required to maintain their main bank accounts at the Central Bank of Kenya (CBK). Commercial accounts are allowed for specific purposes, but the County Treasury must first issue written authorisation.
Copies of the authorisation letters are also supposed to be submitted to the Controller of Budget and the Auditor-General so that the oversight bodies can establish the purpose of the accounts and confirm that they were opened within the law.
"As of June 30, 2026, county governments operated 6,503 bank accounts with commercial banks, compared to 5,092 in FY 2024/25," CoB Margaret Nyakang'o said in a report, adding that county treasuries had not submitted authorisation documents as required.
"The absence of submitted copies of authorisation letters to the Controller of Budget limits assurance over the legality, purpose and completeness of commercial bank accounts maintained by counties" she said.
West Pokot recorded the biggest increase, adding 235 commercial bank accounts during the period.
Siaya followed with 217 additional accounts, while Nyeri added 208. Migori recorded an increase of 153 accounts, with Kajiado adding another 120.
The report also shows that some counties had particularly high numbers of commercial accounts. Kitui operated 328, followed by Machakos with 307 and Bungoma with 294.
The regulations allow counties to operate commercial bank accounts for specified purposes as long as the required approvals are obtained. The documentation therefore plays an important role in establishing whether the accounts are being operated within the legal framework.
The increase comes as the National Treasury works to change how county governments handle public cash through the Treasury Single Account (TSA).
In its 2026/27 Budget Statement, Treasury said counties would gradually move to the TSA system after automation of their Exchequer requisition processes.
The system is intended to bring government cash resources into a more consolidated structure, giving Treasury officials a clearer view of funds coming into government, payments being made and balances available.
Regulations already provide for a County TSA held at the CBK, with counties expected to operate through sub-accounts rather than relying on separate commercial banking arrangements.
The continued growth in commercial bank accounts has previously been associated by oversight agencies with weaknesses in county cash management.
Having public money spread across many accounts can make it harder to determine the amount of cash available to a county and where the funds are held.
The issue comes as counties continue to report pending bills, delayed payments and weak absorption of development budgets.
The financial management rules require counties to have proper cash management systems that prevent public funds from remaining idle while ensuring money is available for approved programmes and financial obligations.
Treasury began onboarding all 47 counties into the TSA framework in July 2026.
The reform is expected to gradually replace fragmented banking arrangements with a more consolidated system for managing county funds.