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Kenyan Counties Face Scrutiny Over Illegal Bank Accounts

2024-12-08 04:57:46.151000

A recent report from the Controller of Budget (CoB) has revealed that several counties in Kenya are operating a significant number of illegal commercial bank accounts. The report highlights Nakuru with 301 accounts, Bungoma with 300, and Kiambu with 292 accounts as the counties with the highest numbers of violations. The CoB flagged these counties for using commercial bank accounts in contravention of Regulations 82(1)(b) of the Public Finance Management (County Governments) Regulations, 2015. The report emphasizes the need for timely submission of financial reports and strict adherence to legal requirements, noting that exemptions for maintaining commercial accounts apply only to those used for revenue collection and petty cash 1.

Additionally, the Nairobi County Assembly has been reported to operate five commercial bank accounts, raising further concerns about compliance with financial regulations. The CoB noted that many counties failed to disclose the total number of accounts they maintain, which adds to the transparency issues surrounding public finance management in the region. The findings have prompted calls for greater accountability and oversight of county financial operations to prevent misuse of public funds and ensure that all accounts are managed in accordance with the law 1.

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