Nairobi Governor Johnson Sakaja accompanied by senior County officials,during a Media briefing outside City Hall on February 26,2025. [Benard Orwongo, Standard]
Sakaja in the spot over move to shift health funds to Sidian Bank
Nairobi
By
Manuel Ntoyai
| Nov 24, 2025
Makadara MP George Aladwa has questioned Nairobi County Government’s decision to transfer all its banking operations for public health facilities to Sidian Bank, a move he describes as opaque, irregular, and potentially laced with corruption.
In a statement, Aladwa said the directive, issued by County Secretary Godfrey Akumali on November 5, had shocked residents, health professionals and leaders.
According to Akumali’s memo, CEOs of level four and five hospitals, as well as managers of other county health facilities, were instructed to open new accounts with Sidian Bank by November 7.
The communication indicated that the County Executive Committee had, during a meeting in October, resolved to appoint Sidian Bank as the county’s principal banker for health services.
But Aladwa, who served as Nairobi’s last mayor before devolution in 2013, says the move is both suspect and troubling.
READ MORE
Copper, AI cooperation deepens as Maser Group and Argentina sign new deal
From garbage to impassible roads: The nightmare of living in Pipeline
Billing anomalies: Kenya Power rolls out new meter reading system
Top banks ready Sh298.1b war chest for looming loan defaults
KQ partners with Blueberry Travel in emissions offset initiative, plants 308 trees
Humanoid robot arrives at Kenyan university as Africa joins global AI training race
Standard journalist wins continental biotechnology reporting award
Tea factories net Sh1.3b at Mombasa auction
Online bullies: How digital spaces take toll on teens' mental health
“When I left City Hall, Nairobi County operated its accounts with Kenya Commercial Bank and Cooperative Bank, financial institutions that have for decades been among the most stable, reputable, and trusted in Kenya,” he said.
“It is therefore troubling that the county government has chosen to shift its banking services from established tier-one institutions to Sidian Bank, a tier-three bank,” he added, maintaining that transitioning to a smaller financial institution without any clear public explanation has raised serious concerns about the rationale behind the decision.
The legislator insisted that the management of public funds must be grounded in transparency, accountability and public trust, principles he said the county has fallen short of.
“Nairobi residents deserve full transparency, not half-statements or unexplained directives. Anything short of a clear and satisfactory explanation will only heighten public suspicion of possible underhanded dealings or corruption,” said Aladwa.
Akumali’s directive instructed health facilities to fill out account opening forms and submit the required documents to the office of the CEC for Finance, Economic Planning, noting that their prompt attention was required.
Sidian Bank has since clarified that its involvement is limited to collecting contributions and forwarding them to the relevant Social Health Authority (SHA) accounts, emphasising that it will not manage county funds.
Still, the move has triggered immediate legal and political backlash.
Civil rights group Bunge La Mwananchi, together with activists Lawrence Oyugi and Komrade Bush, have already filed a petition in the High Court challenging the directive.
Nairobi Senator Edwin Sifuna has also waded into the matter, terming the decision “unusual” in a letter addressed to Governor Johnson Sakaja.
Sifuna questioned why the county would disrupt long-standing financial arrangements, noting that most public hospitals have historically bank with Co-operative Bank.
Share this story