The number of commercial bank accounts operated by Kenya’s county governments has climbed to 6,585, with the Controller of Budget raising concern over the failure to provide documents authorising the accounts.
The sharp rise has emerged as a major public finance concern after the counties failed to submit copies of authorisation letters required to establish who approved the accounts and the purposes for which they were opened.
According to the County Governments Budget Implementation Review Report for the first nine months of the 2025/2026 financial year, counties had 3,431 commercial bank accounts at the beginning of 2025. By March 31, 2026, the figure had reached 6,585.
The number also rose by 199 between December 2025 and March 2026, when the accounts increased from 6,386 to 6,585.
The Controller of Budget said the absence of the approval documents had made it difficult to establish the number and purpose of accounts maintained by county entities, limiting transparency and effective oversight of public resources.
The increase has also drawn attention to compliance with public finance rules governing the opening of bank accounts by county governments.
Under Regulation 82 of the Public Finance Management (County Governments) Regulations, 2015, accounting officers are required to secure written approval before opening bank accounts.
County treasuries must then provide the Controller of Budget with copies of the authorisation letters for purposes of keeping records and carrying out oversight.
The regulations require counties to maintain their accounts at the Central Bank of Kenya, apart from limited circumstances in which accounts outside the central banking arrangement may be opened after obtaining the required approval.
"The only exemption is for imprest bank accounts for petty cash and revenue collection bank accounts," Controller of Budget Margaret Nyakang'o says in the report covering expenditure up to March 31, 2026.
Nyakang’o said counties had failed to clearly disclose the purpose of numerous commercial accounts, making it difficult to confirm whether they had been legally established and whether their use was consistent with public finance requirements.
She warned that the lack of documentation also made it difficult to determine the completeness of the accounts maintained by county entities and increased concerns over the possible misuse of taxpayers’ money.
Several counties recorded substantial growth in the number of accounts during the three months under review.
Makueni’s accounts increased from 24 in December 2025 to 254 by March 2026. Busia moved from 57 to 151, while Taita Taveta went up from 37 to 102.
West Pokot also recorded a sharp increase, with its accounts rising from 24 to 103.
In terms of the total number of accounts, Kitui led with 493, followed by Nakuru at 311 and Kirinyaga at 305.
Bungoma had 301 accounts, while Homa Bay had 274 and Baringo 263. Makueni had 254, Kericho 242, Kwale 240, Embu 239, Siaya 228 and Machakos 225.
The findings add to concerns that have repeatedly been raised by the Controller of Budget over the proliferation of commercial bank accounts within county governments.
The office has previously identified the growth of such accounts as a governance risk because it can make it harder to track public money and weaken accountability mechanisms.
The issue has remained a concern since the introduction of devolved governments in 2013, particularly where county entities operate accounts whose approval and purpose are not clearly documented.
Nyakang’o has directed county governments to regularise their records by submitting authorisation letters for all commercial bank accounts operated by county entities.
"County Treasuries should strictly comply with the Public Finance Management (County Governments) Regulations, 2015, by ensuring that for every commercial bank account opened under their mandates, a copy of the letter authorising the relevant Accounting Officer is promptly submitted to the Controller of Budget for records and oversight," she said.
Attempts to obtain responses from governors of counties with the largest numbers of commercial bank accounts were unsuccessful. Calls and text messages sent to them went unanswered.
A county executive committee member in charge of finance in one county with more than 200 commercial bank accounts said many of the accounts were for health facilities and were managed by committees under the supervision of the County Treasury.
"The bank accounts were opened as a result of the FIF Act 2023, which was passed by the National Assembly and the Senate to ring-fence health funds and promote efficiency at the facility level. The accounts are mainly used to pay bills such as electricity and to receive Social Health Insurance claims for patients served," the official said.
A Finance Chief Officer from a South Rift county, who spoke on condition of anonymity because of the sensitivity of the matter, said other accounts were being used to run projects, newly established municipalities, vocational training institutes and health facilities, including dispensaries.
Despite the explanations, none of the officials clarified why the accounts had been opened without the authorisation required by the regulations cited by the Controller of Budget.
The watchdog’s findings have therefore placed renewed focus on the rapid expansion of county commercial bank accounts and the documentation required to ensure that public funds held in them remain subject to proper financial controls.