Counties Defy Law, Add 199 Illegal Bank Accounts In First Quarter Of 2026

Counties opened 199 additional unauthorised commercial bank accounts in the three months to March 2026, pushing the total number of irregular accounts to 6,585 and raising fresh questions over transparency in the handling of devolved funds.

A new report by Controller of Budget Margaret Nyakang’o shows that the number of commercial bank accounts operated by counties rose from 6,386 in December 2025, despite repeated warnings over the continued use of accounts outside the approved public finance framework.

Under the Public Finance Management Act, counties are expected to hold their accounts at the Central Bank of Kenya, with only a limited number of special purpose accounts allowed in commercial banks after approval.

Nyakang’o says county treasuries had not submitted authorisation documents for the 6,585 accounts as required, making it difficult to confirm the legality and purpose of the accounts.

County treasuries had not submitted copies of authorisation letters for these accounts to the Controller of Budget as required, thereby limiting transparency and assurance regarding the number and purpose of commercial bank accounts maintained by counties, Nyakang’o said in the report.

The findings come as the National Treasury prepares to roll out the Treasury Single Account system to counties from July 2026, in an attempt to tighten oversight of public funds and reduce cash balances held in scattered accounts.

Treasury officials have argued that fragmented accounts allow large amounts of public money to sit idle in commercial banks even as counties struggle to pay suppliers, workers and other obligations.

The existence of thousands of commercial bank accounts has for years complicated efforts to monitor county cash positions and exposed weaknesses in financial controls within devolved units.

The Controller of Budget has repeatedly flagged multiple county accounts as a major governance risk, warning that they create room for misuse of public funds while weakening accountability.

During the quarter under review, Makueni opened the highest number of additional accounts at 230, followed by Siaya with 191, West Pokot with 79, Taita Taveta with 65, Laikipia with 38, Embu with 20, Nyamira with 15, Uasin Gishu with five and Isiolo with four.

At the same time, Meru closed the highest number of accounts during the period at 462, followed by Machakos with 62, Mombasa with 16 and Kericho with three.

Kitui remains the county with the highest number of unauthorised commercial bank accounts at 493, while Nandi operates the fewest at 10.

The proliferation of county bank accounts has remained one of the most persistent concerns in Kenya’s devolved system since county governments were established in 2013.

The planned rollout of the Treasury Single Account framework to counties is meant to address the problem by giving the National Treasury and oversight agencies clearer visibility over public cash balances.

Under the new system, counties will progressively move towards a more centralised cash management framework similar to the one already used by the national government.