NAIROBI, Kenya – Nairobi Senator Edwin Sifuna has accused the Nairobi County Government of possible corruption after it directed all public health facilities to open new accounts with Sidian Bank.
In a letter dated November 12, addressed to Governor Johnson Sakaja, Sifuna termed the move “unusual and suspicious,” saying most health facilities have traditionally banked with Co-operative Bank, which he described as a “tier-one institution with a solid reputation.”
“How you wake up one day and direct all of them to move to a tier-three bank cannot be explained any other way than that corruption is at play,” Sifuna wrote.
The senator’s remarks come amid growing controversy over a November 5 directive issued by County Secretary Godfrey Akumali, requiring CEOs of Level 4 and 5 hospitals and managers of other county health facilities to transition their banking to Sidian Bank.
Akumali said the directive followed a resolution made during the 69th meeting of the County Executive Committee held on October 28, which appointed Sidian Bank as the county’s principal banker.
“This correspondence serves to communicate the resolution of the County Executive Committee… Kindly complete the attached forms to facilitate the opening of your respective accounts,” the circular read in part.
Legal Challenge Filed
The directive has already triggered a court petition by civil rights group Bunge La Mwananchi and activists Lawrence Oyugi and Komrade Bush, who argue that the move violates multiple constitutional provisions.
The petition, filed before the High Court, names the Nairobi City County Government, the County Executive Committee Member for Finance and Economic Planning, the acting County Secretary, and the Attorney-General as respondents.
The petitioners claim the directive undermines public participation, access to information, and financial accountability, and could point to irregular arrangements involving Sidian Bank.
They have asked the court to suspend the directive and declare that the county acted unlawfully by implementing the decision without consulting stakeholders or explaining the choice of bank.
Sidian Bank is among six financial institutions approved by the Central Bank of Kenya (CBK) to handle Social Health Authority (SHA) remittances.
The bank clarified that its role in such transactions is limited to collecting contributions and forwarding them to the relevant SHA accounts, not managing funds.
The County Government of Nairobi has yet to respond publicly to the senator’s allegations or the ongoing court case.
