Nairobi Governor Johnson Sakaja is on the spot for operating 23 bank accounts.
The controller of budget Margret Nyakang’o has in the County Governments Budget Implementation review report for the 2023/2024 financial year revealed that Nairobi County went contrary to stipulated regulations.
According to the report, 5 of the accounts belong to the county assembly.
However, the law requires that County government bank accounts be opened and maintained at the Central Bank of Kenya.
“The County government operated 23 accounts with commercial banks (5 for the County Assembly). This is contrary to Regulations 82(1)(b) of the PFM (County Governments) Regulations, 2015,
“Which requires that County government bank accounts be opened and maintained at the Central Bank of Kenya,” the statement reads in part.
Nyakang’o has explained that the only exemption for the regulation is for imprest bank accounts for petty cash.
Also, revenue collection bank accounts are exempted from the rule.
Also Read: Auditor General Flags County Govt with 200 Bank Accounts
Other Counties with Multiple Bank Accounts
At the same time, the auditor general has highlighted other counties with numerous bank accounts including Bungoma, which tops the list with 358 bank accounts.
Bungoma is followed by Kiambu which has 306 bank accounts, Baringo with 283 bank accounts and Migori county with 208 accounts.
Also, Nyandarua has 88 bank accounts contrary to the law while Kakamega has 64 accounts.
On the other hand, Busia has 62 accounts, Taita Taveta County has 37, Kwale county has 35, tana River has 34, Machakos has 33 and Embu County has 31.
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 with multiple accounts.
In response, the auditor general stated that having over 200 bank accounts was unnecessary for counties explaining that it exposed the counties to the risk of losing track of funding and expenditure.
“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.
Also Read: Azimio Counties Dominate List of Poor Performers in Revenue Collection
Azimio Counties Dominate List of Poor Performers
Moreover, the auditor general has listed counties with the least amount of revenue collection including Nyandarua at 42.1 percent, and Machakos at 46.5 percent.
Mandera collected 50.8 percent of expected revenue, Nyamira 53.8 percent, Bungoma 55.8 percent, Kajiado 56.1 percent, and Busia which was at 56.9.
The controller of budget advised county governments, which recorded performance below 70 percent of their annual target, to develop revenue enhancement strategies.
Follow our WhatsApp Channel for real-time news updates!
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
