The controversy arose when the Nairobi County government instructed all public health facilities to move their funds from Cooperative Bank, the county’s long-standing bank, to Sidian Bank.
The directive, issued with a tight deadline, raised eyebrows over transparency and governance.
Senator Sifuna described the decision as “baffling” and questioned why the county would move its health funds to a smaller bank with less capacity to handle large-scale public transactions.
“Such a decision should have involved public consultation and proper legislative oversight,” he said.
Senator Onyonka also expressed concerns, highlighting discrepancies in the management of county revenue accounts and asking for explanations about the handling of the switch.
Despite repeated queries, Governor Sakaja declined to provide detailed answers, prompting frustration among lawmakers.
The governor’s office defended the move, citing better financial terms, including lower interest rates and improved service delivery.
Sakaja argued that the change complied with the Public Finance Management Act, which allows counties to select their banks.
However, critics remain unconvinced, questioning whether due diligence or competitive selection processes were followed.
Civil society groups have raised alarms, warning that moving funds to a smaller bank could put public money at risk and disrupt critical services in health facilities.
Lawmakers are pushing for a detailed public explanation and an audit of the decision-making process.
As the debate continues, the incident has fueled wider discussions about transparency, accountability, and political influence in Nairobi County’s financial decisions.
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