Nairobi Governor Johnson Sakaja has defended the county’s decision to transfer hospital deposit accounts from the previous banking partner to Sidian Bank, saying the move was guided by financial efficiency, improved service delivery, and strict adherence to the law.
Speaking before the Senate Committee on Devolution and Intergovernmental Relations, Sakaja explained that the shift was necessary to address persistent delays that had affected operations across county health facilities. He revealed that the previous bank had repeatedly delayed processing salaries for health workers, especially during periods when the national government delayed releasing county funds. These delays, he noted, strained the county’s ability to pay staff on time and disrupted critical health services.
Sakaja emphasised that the decision followed all legal requirements under the Public Finance Management (PFM) Act, which does not restrict counties to any specific bank. Instead, counties are free to select financial institutions that offer the best value and operational ease.
A key factor in the change, the governor noted, was the interest rate structure. He explained that the previous bank’s rates were considerably higher, making it costly for the county to maintain its financial operations. Sidian Bank, by contrast, offered more favourable terms.
“Sidian had a cheaper interest rate and gave us a better offer. It is a good deal. We invited many banks, and Sidian presented the best package. As for ownership, every bank has owners, but what matters is good service,” Sakaja said.
He added that the decision was purely administrative and aimed at eliminating cheque delays, improving liquidity, and ensuring county workers receive their salaries on time.
By choosing Sidian Bank, Sakaja said Nairobi County intends to enhance financial efficiency, stabilise payments, and ultimately improve service delivery across Nairobi’s healthcare facilities.
