Nairobi Senator Edwin Sifuna has questioned the county government’s decision to transfer health facility accounts from Cooperative Bank to Sidian Bank, calling the move suspicious and demanding an explanation.
The senator’s remarks followed a circular issued by acting County Secretary and Head of Public Service Godfrey Akumali, informing health facilities that the Nairobi City County Executive Committee had resolved to designate Sidian Bank as its new principal banker.
The directive, dated October 28, 2025, required all affected facilities to open new accounts with the lender by November 7.
Sifuna, in a post shared on X, said the shift from Cooperative Bank—a tier-one financial institution with a long history of managing public sector accounts—to a smaller tier-three bank raised serious concerns.
“How you wake up one day and direct all of them to move to a tier 3 bank cannot be explained any other way than that corruption is at play,” the senator stated.
While the county government has yet to respond, the announcement has stirred debate within Nairobi’s public sector.
Cooperative Bank is one of Kenya’s largest lenders, with over KSh 600 billion in assets and a strong relationship with government agencies and cooperative societies.
Sidian Bank, by contrast, has a smaller market share, mainly serving small and medium enterprises (SMEs).
The County Executive Committee’s resolution to change banks was reportedly made during its 69th sitting.
However, details on what informed the choice of Sidian Bank or whether procurement procedures were followed have not been publicly disclosed.
Sifuna has urged oversight bodies, including the Nairobi County Assembly and the Ethics and Anti-Corruption Commission (EACC), to probe the decision to ensure public funds remain protected.