The number of commercial bank accounts operated by Kenya's 47 county governments rose to 6,503 by June 30, 2026, according to the Controller of Budget (CoB). This represents a 27.7% increase from 5,092 accounts in June 2025. County governments are required to maintain their main bank accounts at the Central Bank of Kenya (CBK), while commercial accounts are allowed for specific purposes with prior written authorization from the County Treasury.
The increase in commercial bank accounts has raised concerns over the management and oversight of county funds. County treasuries have not submitted documents showing that the commercial accounts received the required approvals under public finance rules. The CoB, Margaret Nyakang'o, noted that the absence of submitted copies of authorization letters limits assurance over the legality, purpose, and completeness of commercial bank accounts maintained by counties.
According to the CoB's report, some counties had particularly high numbers of commercial accounts. Kitui operated 328 accounts, followed by Machakos with 307 and Bungoma with 294. West Pokot recorded the biggest increase, adding 235 commercial bank accounts during the period, while Siaya followed with 217 additional accounts, and Nyeri added 208.
The regulations allow counties to operate commercial bank accounts for specified purposes as long as the required approvals are obtained. The documentation plays an important role in establishing whether the accounts are being operated within the legal framework. The County Treasury must issue written authorization, and copies of the authorization letters are supposed to be submitted to the Controller of Budget and the Auditor-General.
The increase in commercial bank accounts comes as the National Treasury works to change how county governments handle public cash through the Treasury Single Account (TSA). The system aims to bring government cash resources into a more consolidated structure, giving Treasury officials a clearer view of funds coming into government, payments being made, and balances available.
The continued growth in commercial bank accounts has previously been associated with weaknesses in county cash management. Having public money spread across many accounts can make it harder to determine the amount of cash available to a county and where the funds are held. This issue arises as counties continue to report pending bills, delayed payments, and weak absorption of development budgets.
Treasury began onboarding all 47 counties into the TSA framework in July 2026. The reform is expected to gradually replace fragmented banking arrangements with a more consolidated system for managing county funds. The financial management rules require counties to have proper cash management systems that prevent public funds from remaining idle while ensuring money is available for approved programs and financial obligations.
Key points
- County governments in Kenya have 6,503 commercial bank accounts, a 27.7% increase from June 2025.
- The increase raises concerns over fund management and oversight, with county treasuries not submitting required authorization documents.
- The National Treasury is implementing the Treasury Single Account system to consolidate county funds and improve cash management.
