Nairobi Governor Sakaja Johnson has defended the county’s move to transfer hospital deposit accounts to Sidian Bank.
Sakaja informed the Senate Committee on Devolution and Intergovernmental Relations that the shift was motivated by administrative and financial factors.
The previous bank had caused delays in processing salaries, making it challenging for the county to pay health workers on time, particularly when the national government delayed reimbursing county funds.
He said that the law was fully adhered to, pointing out that the Public Finance Management (PFM) Act does not prohibit counties from opening accounts in particular banks.
The previous bank’s interest rates were seen as unfavorable, leading the county to seek a more favorable alternative.
Sidian offered us a more competitive interest rate and a superior proposal. This is a good bargain. We invited numerous banks and Sidian offered the most advantageous package. Ownership is a concern for every bank, but what really matters is the quality of service they provide, Sakaja emphasized.
Emphasizing that no laws had been violated, he stated that the decision was taken to serve the best interests of the county, as it addressed salary delays with the most advantageous terms offered by Sidian Bank.
It was a bureaucratic problem. Our primary issue was management; we experienced cheque delays and faced difficulties in paying employees. Sakaja explained that the interest rates from the previous bank were too high, which is why they opted to switch to Sidian Bank after being presented with a more favourable offer.
Sakaja reaffirmed that the decision was purely administrative and aimed at enhancing the county’s financial efficiency and service delivery.
The decision has been met with criticism and concerns over transparency from certain politicians, nonetheless it mandates that all bank accounts for county hospitals be transferred to Sidian Bank.
Level 4 and 5 hospitals in the county, as well as county health facility officers, were instructed to open new bank accounts with Sidian Bank.
The decision to designate Sidian Bank as the county’s principal banker was made at the 69th County Executive Committee meeting, which took place on October 28, 2025.
According to a letter sent to hospital heads, the Nairobi City County Executive Committee made the decision to designate Sidian Bank as its Principal Banker at its 69th Meeting, which took place on October 28, 2025.
“This letter formally conveys the County Executive Committee’s decision to ask that you fill out the enclosed forms to enable the opening of your individual accounts.”
