Auditor General Calls for Closure of Illegal County Bank Accounts as crackdown looms

Counties operating hundreds of unauthorized bank accounts in commercial banks may soon face a government crackdown as Auditor General Nancy Gathungu pushes for reforms to curb financial mismanagement.

Speaking before the Senate Committee on County Public Investment and Special Funds yesterday, Ms. Gathungu exposed the alarming practice of county governments maintaining excessive numbers of commercial bank accounts, with some counties operating up to 300. This, she warned, leads to rampant mismanagement of taxpayer money, loss of oversight, and potential corruption.

“We should minimise bank accounts and have one or two revenue and expenditure accounts, but we do not need 300,” Gathungu told the Senate Committee, expressing concern over dormant accounts that sometimes record suspicious transactions.

The Auditor General’s revelations have sparked fresh concerns over transparency and accountability in the management of county funds. The pressure is now on county governments to shut down these illegal accounts, which have been blamed for fueling waste, inefficiency, and loss of public resources.

The Senate committee has vowed to investigate the matter and ensure immediate action is taken to streamline the financial operations of counties.

If implemented, this sweeping reform could bring much-needed discipline to county financial management and safeguard taxpayer money from further abuse.