Nairobi Governor Johnson Sakaja has defended the county’s decision to transfer hospital deposit accounts to Sidian Bank, citing administrative and financial efficiency as the key drivers.
Speaking before the Senate Committee on Devolution and Intergovernmental Relations, Sakaja explained that the previous bank was causing delays in processing salaries, making it difficult for the county to pay health workers on time, especially when reimbursements from the national government were late.
He noted that the move was fully in compliance with the law, explaining that the Public Finance Management Act doesn’t limit counties to banking with specific institutions. The governor also highlighted that the previous bank’s high interest rates prompted the search for a better alternative.
“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 county acted in its best interest to address salary delays and improve service delivery.
“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,” he explained.
Sakaja stressed that the transfer was motivated purely by administrative considerations aimed at ensuring better financial efficiency in all county health facilities.
During the 69th County Executive Committee meeting on October 28, 2025, Nairobi County officially appointed Sidian Bank as the principal banker for its hospitals. All Level 4 and Level 5 hospitals, along with officers in charge of county health facilities, were instructed to open new accounts with Sidian Bank.
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