Auditor General (AG) Nancy Gathungu has raised an alarm over the number of bank accounts used for transactions by government organs and agencies.
While appearing before the Senate County Public Investment and Special Funds Commitee on Wednesday, September 4, Gathungu was asked to comment on how she audits counties like Migori County, which Senator Eddy Oketch noted has 200 bank accounts.
In response, the auditor general stated that having over 200 bank accounts was unnecessary for counties.
“Migori County has 200 bank accounts. In your audit process, do you audit all the bank accounts, or do you audit based on a mother presentation on the financial statements?” asked Senator Eddy Oketch.
Also Read: Auditor General Raises Questions Over Ksh15.5 billion eCitizen Revenue
Auditor General Explains Why Counties Should Not Have Many Accounts
According to Gathungu, having multiple accounts exposes the counties to the risk of losing track of funding and expenditure.
Moreover, she advised that unless a development partner requests a separate bank account, two expenditure accounts ought to be enough.
“Apart from the requirement by development partners when they request for a separate bank account, I think we should minimize bank accounts. More than 10 accounts are too much. So, 300 or 200 don’t make sense to me.
“We should have one or two expenditure accounts. We don’t need 300. First of all, you lose track. You put money there and forget that there is money there,” she explained.
Additionally, the AG highlighted cases where counties continued to set up funds, in addition to already operational departments.
The duplication, she said, was a gateway for mismanagement of funds and corruption.
“The law gives counties a blank cheque on the number of funds they can establish. Sooner or later, we will have more funds in this country that are running operations of departments for counties. So, you have a fund for agriculture and a department for agriculture.
“Then you have duplication of funds at the national level ad at the county level. Counties now have bursaries for secondary schools, and I thought that was a national responsibility,” she explained.
Also Read: Sakaja Announces New Revenue Collection Bank Accounts for Nairobi County
Nairobi County Announces New Bank Account
On August 1, Nairobi County Governor Johson Sakaja announced Nairobi City County Government’s new revenue collection bank accounts, a move from the accounts denoted by the Kenya Revenue Authority (KRA).
The move came after the county recorded Ksh12.1 billion in revenue collection, the highest in the city’s history.
“This is to notify all our esteemed residents that from 1st August 2024, the County will fully transition from the previous KRA denoted Revenue collection banks accounts: Cooperative Bank Account number 01141709410000 and Equity Bank Account number 1770279910476 to the below bank accounts,” the notice read in part.
“Account Name: Nairobi City County Revenue Collection Account, Account Number: 01141232396600, Account Bank Name: Co-operative Bank and Branch Name: City Hall. Account Name: Nairobi City County Revenue Collection Account, Account Number: 1600284509139, Bank Name: Equity Bank (Kenya) ltd and Branch Name: Kenyatta Avenue Supreme Centre.”
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