Senators Call for Audit Access to All 5,400 County Bank Accounts Due to Misuse Concerns


Senators are advocating for measures to address the increasing number of unauthorized bank accounts managed by county governments in commercial banks, cautioning that this loophole is putting billions of shillings in public funds at risk of potential misuse.

  The Senate’s Devolution and Intergovernmental Relations Committee is requesting a revision of the Public Finance Management (National Government) Regulations, 2015, to provide the Central Bank of Kenya (CBK), the Controller of Budget (CoB), and the Auditor-General with complete access to all accounts operated by counties in commercial banks. The legislators are also calling for the prompt closure of all inactive accounts, with any remaining funds to be redirected to the County Revenue Fund (CRF). The Auditor-General’s Office has identified significant discrepancies and a lack of transparency in the financial records of counties, linking the issue to inadequate regulation of commercial bank accounts, which has resulted in incomplete and erroneous reporting. Controller of Budget Margaret Nyakang’o revealed that counties are managing over 5,400 commercial bank accounts, many of which have not received approval from her office. She cautioned that this scenario could enable illegal transactions and greatly compromise fiscal discipline. The report presented by Wajir Senator Sheikh Abbas points out inconsistencies in the Public Finance Management (PFM) Act, which it claims have led to regulatory gaps that some counties have exploited.

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