NAIROBI, Kenya – County governments will now come under closer financial scrutiny after Controller of Budget (CoB) Margaret Nyakang’o secured legal authority to monitor thousands of accounts held in commercial banks — a move expected to curb misuse of public funds.
The expanded mandate follows the enactment of the County Public Finance Laws (Amendment) Act 2025, which grants the CoB real-time “viewer rights” to all transactions conducted through county government accounts.
“For years, counties have operated outside proper oversight, opening and running accounts without the Controller of Budget’s clearance,” the amended law states, highlighting the scale of financial opacity at devolved units.
By June 2025, counties were operating 5,476 commercial bank accounts, more than double the 2,028 reported in 2024, raising red flags over the diversion of public resources.
Many of these accounts are used for county-established funds, operations, and salary payments, but weak controls have made them prone to abuse.
Homa Bay tops the list with 558 accounts, followed by Kitui (350), Nakuru (311), Bungoma (301), and Baringo (280).
The new law is expected to close loopholes that have allowed counties to bypass regulations requiring funds to be kept at the Central Bank of Kenya (CBK), except for specific cases such as petty cash and revenue collection.
Oversight bodies have repeatedly raised concerns about the ballooning accounts.
Auditor-General Nancy Gathungu has warned that the lack of transparency undermines service delivery, while Nyakang’o has criticized counties for worsening cash flow problems, leading to delays in essential services like healthcare.
With direct access to account records, the CoB will now be able to track cash movements, flag questionable transactions, and enforce stricter accountability in county spending.
