Governors are now urging Parliament to pass legislation that specifies the number of bank accounts required for county government operations. This call comes after the Senate initiated an inquiry into numerous ‘illegal’ bank accounts, primarily held at commercial banks, by county governments.
Governors Fatuma Achani (Kwale) and Ochillo Ayacko (Migori) have faced scrutiny for managing over 200 bank accounts, a situation the Auditor General has criticized due to difficulties in auditing the funds within these accounts.
During their appearance before the Senate Devolution and Inter-Governmental Relations Committee, both governors highlighted the absence of a legal framework governing the opening of such accounts.
They explained that the accounts were established with the appropriate authorizations from the National Treasury, Central Bank of Kenya (CBK), and other relevant agencies, as outlined in existing legislation.
Achani emphasized the need for legislative intervention to provide clear guidelines, stating, “The Senate and Parliament as a whole should come in and help. There is no legal framework guiding the opening of the accounts.”
Ayacko and Achani asserted that the accounts were opened to meet requirements set by various donors and partners funding specific county programs and projects. “It tarnishes our reputation as governors when people label our accounts as illegal.
These are not illegal accounts. We followed the proper procedures, and the funds are audited and accounted for,” Achani told the committee led by Senator Sheikh Abass.
The development follows Controller of Budget Margaret Nyakang’o’s revelation that numerous counties are managing illegal bank accounts. The COB reported that some counties have more than 300 accounts, while others, like Garissa County, maintain only four.
According to Section 82 (1)(b) of the Public Finance Management (County Government) Regulations, 2025, state entities drawing over 75 percent of their resources from the National Exchequer Account must apply to the Central Bank of Kenya (CBK) for authorization to open and operate bank accounts, unless exempted.
Governor Achani, whose administration oversees 213 bank accounts, explained to the Committee that the accounts were established to meet donor conditions. “Conditional grants, as negotiated between donors and the national government, include requirements to open a Special Purpose Account (SPA) and a commercial bank account for operations,” Achani stated.
