County governments continued to expand their presence in commercial banks in the first three months of 2026, opening hundreds of additional accounts without proof of approval and pushing the total number of unauthorised accounts to 6,585, according to a new report by the Controller of Budget.
The latest findings have renewed concerns over how devolved funds are being managed, with county governments maintaining thousands of commercial bank accounts outside the framework intended to centralise and monitor public finances.
Data contained in the Controller of Budget's quarterly report shows that the number of commercial bank accounts operated by counties increased from 6,386 in December 2025 to 6,585 by the end of March 2026. The increase came despite legal requirements that county governments keep their accounts at the Central Bank of Kenya.
The Public Finance Management Act only permits counties to operate a limited number of special-purpose accounts in commercial banks after receiving the necessary approvals.
However, Controller of Budget Margaret Nyakang’o said county treasuries had not provided evidence showing that the thousands of commercial bank accounts had been authorised as required.
“County treasuries had not submitted copies of authorisation letters for these accounts to the CoB, as required, thereby limiting transparency and assurance regarding the number and purpose of commercial bank accounts maintained by counties,” wrote Nyakang’o.
The report comes as the National Treasury prepares to introduce the Treasury Single Account system in counties from July, a move aimed at improving oversight of public funds and reducing the number of accounts holding government cash in commercial banks.
Treasury officials have argued that the continued spread of multiple accounts allows large amounts of public money to remain unused in commercial banks while counties and other government agencies struggle to meet financial obligations, including payments to suppliers and workers.
The Controller of Budget has repeatedly warned that the growing number of commercial bank accounts weakens financial controls and makes it harder to track public resources. The office has also raised concerns that the accounts could expose public funds to misuse and reduce accountability.
Among the counties that increased their accounts during the quarter, Makueni recorded the highest number with 230 additional accounts. Siaya followed with 191 accounts, while West Pokot opened 79, Taita Taveta 65, Laikipia 38, Embu 20, Nyamira 15, Uasin Gishu five and Isiolo four.
Some counties, however, reduced the number of accounts under their control. Meru led in account closures after shutting down 462 accounts during the period. Machakos closed 62 accounts, while Mombasa and Kericho closed 16 and three accounts respectively.
Kitui remained the county with the highest number of unauthorised commercial bank accounts at 493. Nandi had the lowest number, operating 10 accounts.
The issue of numerous county bank accounts has persisted since the start of devolution in 2013 and has remained a major concern among oversight agencies seeking greater visibility over public finances.
The planned rollout of the Treasury Single Account system is expected to help address the challenge by bringing county cash balances under a more centralised structure. Under the arrangement, counties will gradually shift to a cash management model similar to the one already being used by the national government.