In a significant move to tackle fiscal indiscipline and enhance transparency in Kenya’s devolved units, a Senate Committee is pushing for immediate, unrestricted, and real-time access to all commercial bank accounts operated by county governments.

The Senate Standing Committee on Devolution and Intergovernmental Relations officially adopted its Report on inquiry into the large number of commercial bank accounts opened and operated by county governments, advocating that the Central Bank of Kenya (CBK), the Controller of Budget (CoB), and the Office of the Auditor-General (OAG) be granted this unfettered digital access.

Committee Chairperson Senator Mohamed Abass called the measure a "game-changer" that will foster unprecedented oversight and safeguard public resources.

"The National Treasury must review the Public Finance Management (National Government) Regulations, 2015, to grant the Central Bank, Controller of Budget, and the Office of the Auditor General real-time system access to all accounts, with clear sanctions for non-compliance," Senator Abass stated. "This will strengthen oversight, enhance transparency, and safeguard public resources."

The Committee’s inquiry was prompted by consistent Auditor-General reports that highlighted discrepancies, non-disclosure, and a lack of banking rules regarding county commercial accounts. These issues have long raised concerns about the completeness and verification of all bank accounts held by devolved governments.

Beyond the real-time access, Senators directed the National Treasury to collaborate with the Office of the Auditor General (OAG) to conduct an immediate and comprehensive audit of all commercial bank accounts, close inactive accounts, and transfer residual balances to the County Revenue Fund.

The Members of the Devolution Committee also urged the Treasury to review and harmonize the conflicting sections of the Public Finance Management (PFM) Regulations for the National and County Governments, noting that current county regulations offer limited flexibility for essential needs like managing donor funds, unlike the national regulations.

"National Treasury should harmonize these two laws since they disadvantage counties in managing donor funds and operational needs," Senator Odinga submitted.

The Committee underscored that tighter coordination between the National and County Treasuries is essential to ensure a transparent, accountable, and fiscally disciplined devolved system.