Financial Noncompliance in Nairobi: KRA Accounts Persist Despite Deed Transition

During a recent public hearing before the Ad hoc committee on revenue collection, Nairobi City County’s Chief Cashier, Shadrack Nyamai, dropped a bombshell, revealing that the county continues to operate bank accounts established by the Kenya Revenue Authority (KRA).

What’s more, KRA officers remain signatories to these accounts, a practice that should have ceased with the transition of revenue collection responsibilities from Nairobi Metropolitan Services (NMS) to the county government.

“The county government of Nairobi still uses KRA accounts, and as the cashier of the county, I confirm that. We are still using the accounts under the KRA initials as they were never closed despite the deed of transfer from NMS to the county government.” Nyamai stated painted a concerning picture.

He added that these accounts, labeled as KRA Nairobi Revenue Collection Accounts under Cooperative Bank and Equity Bank, are actively in use, and there has been no reconciliation since the transfer of deeds.

Even more surprising is that KRA personnel continue to hold signatory roles for these accounts, maintaining control despite the change in administration.

“KRA officers are the ones who opened the accounts, and even up to date, they are still the signatories. Our Chief Officer and the head of the county treasury were also introduced as the signatories of the accounts, though still, the mandatory signatories are the KRA officials.” Nyamai revealed

Contrary to regulations outlined in the Public Finance Management (PFM) Act, Nyamai disclosed that Chief Officer Asha Abdi and Head of Treasury Martha Wambugu have been added as signatories without approval from the county assembly.

“The reasons and purpose behind the reactivation of the account remain unclear. The accounts were supposed to be closed, but they were not closed,” Nyamai said, pointing to a lack of transparency in the financial practices of the county.

The two-day public hearing concluded, leaving the Imwatok-led committee with a pressing need to investigate further.

The committee is scheduled to meet with the Kenya Revenue Authority team today Friday 15th 2023 to unravel more details surrounding the financial intricacies of Nairobi City County.