NAIROBI, Kenya, June 23 – The Controller of Budget (CoB) has raised concerns over commercial bank accounts operated by county governments, warning that many lack the required documentation and approvals.
According to the County Governments Budget Implementation Review Report, county governments reported operating 6,585 commercial bank accounts as of March 31, 2026, up from 6,386 accounts reported three months earlier.
However, the CoB noted that county treasuries had not submitted copies of authorisation letters for the accounts, limiting oversight and transparency over their purpose and legitimacy.
The report states that county governments are required to obtain written approval before opening commercial bank accounts and submit the authorisation documents to the CoB.
“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,” the report states.
Under the Public Finance Management (County Governments) Regulations, 2015, county governments are required to operate their bank accounts through the Central Bank of Kenya, except for specific accounts such as imprest, petty cash, revenue collection and other accounts approved under the regulations.
Regulation 82 further requires accounting officers to secure written authorisation before opening any bank account and obliges county treasuries to forward the approvals to the Controller of Budget.
Meru County recorded the highest increase in commercial bank accounts, reporting 462 new accounts during the review period. Machakos County followed with 62 additional accounts.
The Controller of Budget noted that the reasons behind the sharp increase in the number of accounts were not explained by the affected counties.
