Auditor General Nancy Gathungu has urged counties to stick to a more manageable number of bank accounts to keep track of their revenue and expenditures.
Appearing before the Senate Committee on County Public Investment and Special Funds on Wednesday, September 4, 2024, Gathungu criticized the practice of counties juggling many accounts, arguing that it complicates financial accountability.
The Auditor General noted the need for counties to minimize the number of bank accounts they manage, suggesting that one or two accounts dedicated to revenue and expenditure would be sufficient.
She warned that the current practice of juggling hundreds of accounts could lead to a loss of control over funds, making it difficult to track where the money is going.
“We should minimize bank accounts. We need one or two revenue or expenditure accounts. We don’t need 300. First of all, you lose track of funds,” Gathungu said.
She also pointed out the issue of fund duplication, where similar funds exist at both the national and county levels, particularly in sectors like agriculture and education.
“You find funds in the country running operations of departments of counties. For instance, you find a fund for agriculture and have the department for agriculture. In short, you find duplication of funds at the national level and county level,” she added.
She further highlighted the case of bursaries, noting that counties often issue bursaries for secondary school students, a role according to her is being managed at the national level.
“I can’t say one or two bank accounts are enough, but having 200 to 300 accounts does not make sense,” Gathungu declared.
According to the Controller of Budget Margaret Nyakang’o’s report on the expenditure by counties between June 2023 and January 2024, she revealed that Bungoma had the highest number of accounts with 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 ad at the county level,” Gathungu added.
