By Edwin Macharia
County governments have added 199 unauthorized commercial bank accounts in just three months, bringing the total number of such accounts to 6,585 as of March 2026, according to the latest report by the Controller of Budget (CoB).
The report says the accounts are operating outside the requirements of the Public Finance Management (PFM) Act, which mandates that county government accounts be maintained at the Central Bank of Kenya (CBK) unless proper authorization is granted.
Controller of Budget Margaret Nyakang’o noted that the accounts lacked the required documentation authorizing their operation.
“County treasuries had not submitted copies of authorisation letters for these accounts to the COB, as required, thereby limiting transparency,” she said.
According to the report, Makueni County recorded the highest number of newly opened unauthorized accounts during the reporting period, with 230 accounts. Kitui County now has the largest overall number of unauthorized accounts, operating 493 accounts.
Other counties that registered significant increases include Siaya, which recorded 191 unauthorized accounts, and West Pokot, with 79 accounts. In contrast, Meru County posted the biggest reduction after closing 462 unauthorized accounts.
Appearing before the Senate, Central Bank of Kenya Governor Dr. Kamau Thugge acknowledged that the CBK currently lacks the legal powers to unilaterally shut down the accounts.
“The Central Bank lacks the statutory teeth to unilaterally freeze or close these rogue accounts,” he said.
The unauthorized accounts, often referred to as “shadow accounts,” reportedly operate outside the Treasury Single Account (TSA) framework and the Integrated Financial Management Information System (IFMIS), raising concerns over transparency, accountability and the management of public funds.
The Controller of Budget has warned that the continued operation of such accounts creates opportunities for financial opacity and weakens oversight of county finances.
In response to the growing concern, the Senate is fast-tracking legislative amendments that would grant oversight institutions real-time access to all county-operated bank accounts.
Meanwhile, the National Treasury plans to roll out the Treasury Single Account framework to county governments beginning in July 2026, a move aimed at improving oversight, strengthening accountability and enhancing visibility over public cash balances.
