The Controller of Budget has released her full-year report for the 2024-2025 financial year, and the findings have once again exposed worrying gaps in how county governments handle public funds.
Margaret Nyakango pointed out that counties are running thousands of commercial bank accounts that have not been authorised or registered with her office, as required by law.
By June 30, 2025, her office had flagged 5,476 such accounts that are not in compliance with the Public Finance Management Act. The Controller of Budget warned that this trend is creating loopholes that expose public funds to possible theft and misuse.
The law requires that county governments seek approval and register all bank accounts before opening them, but most county treasuries have failed to provide authorisation letters to the Controller’s office.
This negligence has raised questions about accountability, with fears that some of these accounts could be used to channel money outside proper oversight. The report highlights worrying statistics from specific counties.
Homa Bay, for example, is running 558 accounts, Kitui has 350, while Bungoma and Nakuru have more than 300 each. Other counties such as Baringo, Kwale, Machakos, and Embu are operating more than 200 accounts each, an unusually high figure that raises suspicions about how transparent the management of funds is in these devolved units.
In sharp contrast, some counties have maintained only a few accounts, showing that it is possible to operate within the law. Nandi has just 10 accounts, Kisii 14, Siaya 15, Tharaka Nithi 16, and Murang’a 20.
These figures show a clear difference in financial discipline between counties, with some managing to keep their accounts streamlined while others continue to expand unnecessarily. Nyakango warned that the proliferation of these accounts is not only against the law but also leaves public money highly exposed to abuse.
Beyond bank accounts, the report also ranked counties on their performance in fund absorption and revenue collection. Governors Stephen Sang of Nandi, George Natembeya of Trans Nzoia, Patrick ole Ntutu of Narok, and Isaac Mutuma of Meru were singled out for achieving high absorption of development funds, meaning money allocated for projects was actually used instead of being returned or left idle.
Kisii Governor Simba Arati was named among those who hit the highest targets for own-source revenue collection, alongside Tana River, Wajir, and Kirinyaga, showing efforts to raise funds locally and reduce overreliance on the national government.
Nairobi Governor Johnson Sakaja was noted for collecting the highest revenue at Ksh.13.1 billion, which represented 66 percent of his county’s target. He was followed by Narok’s Patrick ole Ntutu at Ksh.5.7 billion, while Mombasa and Kiambu also ranked among the top counties in collection.
On the other hand, Kajiado, Machakos, Isiolo, and Taita Taveta underperformed in raising revenue, pointing to weak financial strategies.
The report paints a mixed picture of devolution. While some counties are excelling in managing development funds and revenue, others are lagging behind or creating unnecessary risks by running unauthorised accounts.
The Controller of Budget’s warning is a reminder that without stricter controls, public funds meant to benefit citizens could easily be lost to mismanagement.
