Top Counties Flouting Financial Rules as Nakuru Tops Counties with Most Illegal Bank Accounts
The Controller of Budget (CoB) has criticized county governments for continuing to use commercial bank accounts for managing county funds, a practice that goes against financial regulations.
Breach of Financial Rules
According to the Public Finance Management (PFM) (County Governments) Regulations, 2015, county funds should only be handled through accounts at the Central Bank of Kenya. However, some counties are bypassing this rule, with only revenue collection and petty cash accounts allowed as exceptions.
CoB Recommendations
The CoB pointed out delays in submitting financial statements by some counties, which disrupts the preparation of budget implementation reports. To address these issues, the CoB recommended:
- Timely financial reporting: Counties must submit financial reports as required under Section 166 of the PFM Act, 2012.
- Adherence to Central Bank guidelines: All county bank accounts, except for petty cash and revenue collection accounts, must be opened and maintained at the Central Bank.
Counties with the Most Commercial Bank Accounts
Several counties are heavily using commercial bank accounts, flouting regulations. The top 10 counties and their respective number of accounts include:
- Nakuru – 301
- Bungoma – 300
- Baringo – 292
- Kiambu – 292
- Machakos – 221
- Elgeyo Marakwet – 155
- Migori – 76
- Kwale – 64
- Kajiado – 50
- Embu – 46
Additional Observations
The CoB noted that Nairobi County Assembly operates five commercial bank accounts, but the county executive failed to submit its account details. Similarly, Nyandarua and Narok counties did not disclose how many accounts they manage in commercial banks.
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Top Counties Flouting Financial Rules as Nakuru Tops Counties with Most Illegal Bank Accounts
