Sakaja explains why county hospitals shifted deposits to Sidian Bank

Nairobi Governor Sakaja Johnson, when he appeared before Senate Committee on Devolution and Intergovernmental Relations/HANDOUT

Nairobi Governor Sakaja Johnson has defended the county’s decision to move hospital deposit accounts to Sidian Bank.

Sakaja told the Senate Committee on Devolution and Intergovernmental Relations that the shift was informed by administrative and financial considerations.

He said the previous bank had caused delays in processing salaries, making it difficult for the county to pay health workers on time, especially when the national government delayed reimbursing county funds.

He added that the law was fully followed, noting that the Public Finance Management (PFM) Act does not restrict counties to opening accounts in specific banks.

He also said the interest rates offered by the previous bank were unfavorable, prompting the county to look for a better option.

“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 reiterated.

Nairobi Governor Sakaja Johnson, when he appeared before Senate Committee on Devolution and Intergovernmental Relations/HANDOUT

He emphasised that no law was broken and that the move was made in the best interest of the county to address salary delays, given that Sidian Bank provided the most favourable terms.

“It was an administrative issue. The main challenge we had was management; there were cheque delays, and we struggled to pay workers. The interest rates from the previous bank were also very high, so we decided to move to Sidian Bank after they gave us a better offer,” Sakaja told the committee.

Sakaja reiterated that the decision was purely administrative and intended to improve the county’s financial efficiency and service delivery.

Nairobi Governor Sakaja Johnson, when he appeared before Senate Committee on Devolution and Intergovernmental Relations/HANDOUT

Sidian Bank was recently appointed as the principal banker for Nairobi County's health facilities.

The decision has faced criticism and questions regarding transparency from some politicians, but it directs all bank accounts for county hospitals to be moved to Sidian Bank.

The county instructed all Level 4 and 5 hospitals, as well as officers in charge of county health facilities, to open new bank accounts with Sidian Bank.

The decision was made during the 69th County Executive Committee meeting held on October 28, 2025, which designated Sidian Bank as the county’s principal banker.

“In its 69th Meeting held on October 28, 2025, the Nairobi City County Executive Committee resolved to designate Sidian Bank as its Principal Banker,” read part of the letter sent to hospital heads.

“This correspondence hereby serves to communicate the resolution of the County Executive Committee to request that you complete the attached forms to facilitate the opening of your respective accounts.”