Nairobi County is once again at the center of public debate after a new directive ordered all county health facilities to transfer their banking services from Cooperative Bank to Sidian Bank.
The instruction, issued in a memo dated November 5, 2025, by County Secretary and Head of Public Service Godfrey Akumali, follows a decision reached during the 69th meeting of the County Executive Committee on October 28.
The affected facilities include major hospitals such as Level 4 and 5 centers, as well as smaller health units across the capital.
Officials have been told to complete account-opening forms and submit them to the finance department by November 7, marking a swift and mandatory transition.
The decision has not gone down well with many Nairobians. Critics have accused Governor Johnson Sakaja’s administration of making financial decisions that appear politically influenced rather than focused on service delivery.
Previously, county hospitals operated accounts with Cooperative Bank, a major institution trusted for its stability and extensive network. The sudden move to Sidian Bank, which is smaller and less established, has raised eyebrows.
Many Kenyans online have questioned whether the directive serves public interest or benefits specific individuals connected to power.
Sidian Bank’s recent rise has added to the controversy. In just a few months, the bank’s deposits have tripled from KSh 20 billion to nearly KSh 60 billion, while profits have soared to KSh 1 billion.
Though the Central Bank of Kenya has confirmed that Sidian meets all legal capital requirements, its growth has been viewed by some as unusually fast. Observers point out that the bank’s expansion coincides with government-linked transactions, sparking suspicion about whether political backing may be driving its success rather than genuine business performance.
Governor Sakaja’s administration argues that the switch was necessary because Cooperative Bank had allegedly been using county funds to offset unpaid debts.
A report circulating online claims the county’s salary payments were being “swallowed” by the bank to settle outstanding liabilities. However, this justification has not convinced many, as critics say the solution should have been transparency and debt restructuring, not an abrupt transfer of all accounts to another bank with close political ties.
Nairobi Senator Edwin Sifuna has been one of the strongest voices opposing the move. He insists that public funds must remain in reputable institutions that guarantee accountability. Civil rights groups, including Bunge La Mwananchi, have already gone to court, arguing that the directive is unconstitutional and risks exposing taxpayer money to mismanagement. They also question whether the county followed public finance regulations that require competitive processes before changing banking arrangements.
The timing of this decision comes as the county faces widespread service failures. Garbage collection across the city has slowed dramatically, leaving residents frustrated. Health facilities continue to struggle with shortages of drugs and delayed salaries for workers.
Some hospitals, including Mama Lucy Kibaki Hospital, have faced reports of patients being detained for unpaid bills. Many Nairobians fear that shifting the banking system now will only make an already fragile health sector worse, especially if Sidian Bank cannot handle large transaction volumes efficiently.
The issue has become a test of public trust. For years, Nairobi County has been criticized for wasteful spending, stalled projects, and poor management of funds. With this latest development, Governor Sakaja’s administration is being accused of deepening a culture of secrecy and political favoritism.
The banking switch has turned into more than just a financial decision it has become a symbol of how governance choices can either strengthen or weaken public confidence.
