Counties have 200-300 Bank Accounts to steal public money – Auditor General NANCY GATHUNGU reveals

Thursday, September 9, 2024 - Auditor General Nancy Gathungu has raised concerns about the excessive number of bank accounts held by county governments.

Appearing before the Senate County Public Investment and Special Funds Committee on Wednesday, Gathungu revealed that some counties are using over 200 bank accounts for transactions.

The Auditor General noted that counties should operate at most ten bank accounts for their transactions, adding that having many accounts will result in losing track of the money.

“We should minimize bank accounts. We should have one or two revenue or expenditure accounts. 

"We don’t need 300. First of all, you lose track, you put money there and forget that there is money there,” Gathungu said.

, “I cannot say one or two are enough, it will depend on the situation but more than ten are too much. So, 200 or 300 does not make sense to me.” Gathungu added.

According to Controller of Budget Margaret Nyakang’o's report on county expenditures from June 2023 to January 2024, Bungoma had the highest number of bank accounts at 352.

Baringo, Migori, and Nyandarua followed with 304, 208 and 86 respectively.

Gathungu also observed that there is a duplication of bank accounts which is a gateway of mismanagement of funds.

For instance, the Auditor General said a county can have a fund for agriculture yet there already exists an agriculture department.

“The law gives counties a blank cheque on the number of funds they can establish. Sooner or later, we will have more funds in this country that are running operations of departments for counties. 

"So, you have a fund for agriculture and a department for agriculture. Then you have duplication of funds at the national level and at the county level,” Gathungu added.

The Kenyan DAILY POST