Controller of Budget (COB) has flagged 10 counties for operating more than 100 bank accounts as well as raised concerns over 15 others which spent millions of shillings on non-priority items.

In her latest report, COB Margaret Nyakang’o regretted that counties are operating a number of accounts contrary to regulations 82(1)(b) of the PFM (County Governments) Regulations, 2015, which requires County Government bank accounts to be opened and maintained at the Central Bank of Kenya.

The counties with the highest number of accounts include Baringo, Nairobi City, Bomet, Elgeyo Marakwet, Machakos, Murang’a Nakuru, Nyamira, Nyandarua, and Transnzoia.

Petty cash

Reads the report: “The only exemption is for imprest bank accounts for petty cash and revenue collection bank accounts.”

With regards to counties that spent millions of flimsy items, the report for the County Governments’ Budget Implementation Review Report for the first half of the Financial Year (FY) 2024/25, covering the period from July 1 to December 31, 2024, raises concerns that a number of the counties spent huge budgets on garbage and legal fees at a time when Kenyans are struggling to make ends meet.

For instance, Nairobi City County spent Sh897.82 million on garbage collection and Sh719.26 million on Legal fees/Dues, arbitration, and compensation payments expenditure of legal fees, Nyeri County spent Sh8.50 million on garbage collection and Sh7.95 million on Legal fees/Dues, arbitration and compensation, Homa Bay county spent Sh8.40 million on legal fees/dues.

With regards to bank accounts, the report shows that in Baringo County, the county operates 265 accounts with commercial banks, including 230 accounts for Health Facilities, nine accounts for Established Funds, 10 revenue accounts, five special purpose accounts (additional allocations), one interest account, and 10 payment accounts (recurrent and development), while Bomet County operates 148 accounts commercial banks, including 131 accounts for Health Facilities, four accounts for Established Funds, one revenue account, seven special purpose accounts (additional allocations), four imprest accounts, one recurrent operational account and one development operational account.

Established funds

Elgeyo Marakwet County operates 127 accounts including 89 accounts for Health Facilities, nine accounts for Established Funds, four revenue accounts, nine special purpose accounts (additional allocations), imprest accounts, seven recurrent operational accounts and four development operational, Machakos county operates 225 accounts with commercial banks, including 164 accounts for Health Facilities, nine accounts for Established Funds, 16 revenue accounts, 28 special purpose accounts (additional allocations), three imprest accounts, two special operations accounts, three salary suspense accounts while Mombasa county operates 94 accounts with commercial banks, including 62 accounts for Health Facilities, three for Vocational Training Centres, 4 for Established Funds, nine revenue accounts, nine special purpose accounts (additional allocations) and 8 for imprest accounts.

Nairobi County operates 174 accounts with commercial banks including one hundred and twenty-three accounts for Health Facilities, eleven accounts for Vocational Training Centres, 16 special purpose accounts (additional allocations), two Early Childhood Development Accounts (ECDs), two imprest accounts, and one recurrent operational account and one development operational accounts.

Nakuru County operates 297 bank accounts with commercial banks, including 195 accounts for Health Facilities, 70 accounts for Vocational Training Centres, 15 accounts for Established Funds, seven revenue accounts, eight special purpose accounts (additional allocations), two imprest accounts, and three recurrent operational accounts and xx development operational accounts.

Nyamira County operates 157 accounts including 103 accounts for Health Facilities, 33 accounts for Vocational Training Centres, four accounts for Established Funds, three revenue accounts, 11 special purpose accounts (additional allocations), one imprest account, and two recurrent operational accounts, Nyandarua county operates 91 accounts with commercial banks, including 84 for health facilities, Trans Nzoia county County Government operates 135 accounts with commercial banks, including 83 accounts for Health Facilities, 32 for Vocational Training Centres, seven for Established Funds, two for revenue, six special purpose accounts (additional allocations), four for imprest accounts, and one for development operational account.

With regards to expenditure relating to development and recurrent vote, the report shows that in the first half of FY 2024/25, the County Governments’ development expenditure amounted to Sh33.60 billion, translating to an absorption rate of 16 per cent of their aggregate annual development budget of Sh211.53 billion.

The report shows that Counties that attained the lowest absorption rates of their respective approved development budgets include Baringo and Tana River each at 7 per cent, followed by Taita-Taveta, Kisumu, Nairobi City and Nyeri each at 6 per cent and Elgeyo-Marakwet, Lamu, Nakuru and Kitui each at 5 per cent.

Those with the highest absorption rate in terms of development include Mandera County which spent 32 per cent of its budget, followed by Narok County at 30 per cent, Garissa County at 28 per cent, Uasin Gishu County at 27 per cent and Marsabit County at 26 per cent.