Bungoma County, under the leadership of Governor Ken Lusaka, has been flagged for operating an unusually high number of bank accounts, contrary to legal requirements.
Margaret Nyakang’o, through the County Governments Budget Implementation Review Report for the first nine months of the fiscal year 2023/24.
Nyakang’o’s report disclosed that Bungoma County managed a staggering 352 bank accounts at various local banks during the reviewed period.
With around 12 different banks in the region, this equates to an average of 30 accounts per bank.
“The County government operated a total of 352 accounts with commercial banks,” Nyakang’o highlighted in her report.
This practice stands in violation of Regulations 82(1)(b) of the Public Finance Management (PFM) (County Governments) Regulations, 2015, which mandates that county government bank accounts be opened and maintained exclusively at the Central Bank of Kenya (CBK).
Exceptions are made only for imprest bank accounts for petty cash and local bank accounts for revenue collection and expenditure purposes.
The report indicated a concerning trend: the number of bank accounts operated by Bungoma County has been increasing steadily.
A previous report by the Controller of Budget in March 2024 showed the county had 321 bank accounts.
In less than a month, an additional 31 accounts were opened, bringing the total to 352.
The distribution of these accounts is as follows: 152 accounts for vocational training centres, 146 for health facilities and dispensaries, 4 for local revenue, 21 for level 4 and 5 hospitals, and 29 for various funds.
The rationale behind operating more bank accounts than the number of schools and hospitals in the region remains unclear.
“The County Government should ensure that bank accounts are opened and operated at the Central Bank of Kenya as the law requires. However, imprest bank accounts for petty cash and revenue collection accounts are exempted,” advised the report.
This finding raises significant questions about the financial management practices in Bungoma County.
The operation of such a large number of accounts, especially beyond the legal stipulations, could indicate potential inefficiencies or mismanagement within the county’s financial system.
It also highlights the need for stricter adherence to financial regulations to ensure transparency and accountability in the management of public funds.
The Controller of Budget’s office underscored the importance of compliance with existing financial regulations to avoid any misuse of public resources.
Governor Ken Lusaka and his administration may need to address these discrepancies and ensure that all county financial operations align with the legal requirements.
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