Kenya's county governments have significantly increased their commercial bank accounts to 6,503 as of June 30, 2026, up from 5,092 in June 2025. This represents a 27.7% rise, with 1,411 new accounts opened during the year. The growth in accounts occurs despite concerns about fragmented public-fund management and the government's push for consolidation under a Treasury Single Account.
The Controller of Budget reported the surge in commercial bank accounts, highlighting that county treasuries have not submitted the required authorisation letters for these accounts. This limits oversight by the Controller of Budget and the Auditor General, as regulations stipulate that county accounts must be held at the Central Bank of Kenya. Commercial bank accounts require written approval from the County Treasury and copies of authorisation letters to oversight bodies.
West Pokot added the most new accounts, with 235, followed by Siaya with 217, Nyeri with 208, Migori with 153, and Kajiado with 120. Counties such as Kitui, Machakos, and Bungoma also retained high numbers of commercial accounts, with 328, 307, and 294 respectively as of June 2026. The proliferation of accounts has raised concerns about weaknesses in county cash management.
The rise in commercial bank accounts occurs as the National Treasury pushes counties toward a Treasury Single Account (TSA) system. The TSA aims to centralise cash and improve visibility of government finances. In the 2026/27 Budget Statement, the Treasury announced that counties would gradually transition to the TSA after automating their Exchequer requisition processes.
The TSA framework, launched for all 47 counties in July 2026, requires sub-accounts at the Central Bank rather than separate commercial arrangements. The framework aims to enhance transparency and accountability in county finances. However, the transition to the TSA has been slow, with many counties still maintaining commercial bank accounts.
Oversight agencies have linked the proliferation of commercial accounts to weaknesses in county cash management, including difficulty tracking fund balances and delayed payments. The agencies have emphasised the need for counties to adhere to regulations and transition to the TSA to improve financial management.
The Controller of Budget and the Auditor General have called for counties to submit authorisation letters for their commercial bank accounts to enhance oversight. The government has reiterated its commitment to implementing the TSA to centralise cash and improve visibility of government finances. The transition to the TSA is expected to improve financial management and accountability in county governments.
Key points
- County governments in Kenya operate 6,503 commercial bank accounts, a 27.7% increase from June 2025.
- The National Treasury is pushing counties to adopt a Treasury Single Account system to centralise cash and improve visibility of government finances.
- The proliferation of commercial accounts has raised concerns about weaknesses in county cash management and the need for improved oversight.
