Nairobi Governor Sakaja Johnson has defended the county’s move to shift hospital deposit accounts to Sidian Bank, saying the change was driven by the need to improve salary processing and overall financial management in the health sector. He told senators that the choice was based on practical considerations after the previous bank caused repeated delays.
Appearing before the Senate Committee on Devolution and Intergovernmental Relations on Monday, Sakaja explained that the former bank struggled to release funds on time, especially when the national government delayed sending money to the county. He said this made it hard for Nairobi to pay health workers without interruption.
Sakaja noted that the county followed the law, stating that the Public Finance Management Act does not tie counties to specific banks, allowing them to choose an institution that best supports their operations.
He added that interest rates offered by the previous bank were not favourable, which pushed the county to look for a better offer.
“Sidian had a cheaper interest rate and gave us a better offer. It is a good deal. We invited many banks, and Sidian presented the best package. As for ownership, every bank has owners, but what matters is good service,” Sakaja reiterated.
He stressed that the county acted within legal limits and that the shift was meant to solve salary delays by selecting a bank that offered friendlier terms. According to him, the decision was purely administrative and aimed at improving service delivery.
“It was an administrative issue. The main challenge we had was management; there were cheque delays, and we struggled to pay workers. The interest rates from the previous bank were also very high, so we decided to move to Sidian Bank after they gave us a better offer,” Sakaja told the committee.
Sidian Bank was recently selected as the main banker for all Nairobi county health facilities, a decision that has attracted criticism and questions from some leaders who claim the process should have been more transparent.
Under the directive, all Level 4 and 5 hospitals were told to open new accounts with Sidian Bank, and officers in charge of various county health facilities were instructed to complete the required forms.
The move was approved during the 69th County Executive Committee meeting held on October 28, 2025, which formally named Sidian Bank as the principal banker for county hospitals.
“In its 69th Meeting held on October 28, 2025, the Nairobi City County Executive Committee resolved to designate Sidian Bank as its Principal Banker,” read part of the letter sent to hospital heads.
“This correspondence hereby serves to communicate the resolution of the County Executive Committee to request that you complete the attached forms to facilitate the opening of your respective accounts.”
