The Nairobi City County Government has announced a sudden and significant change regarding the banking operations for its health facilities, following a resolution by the County Executive Committee.
The move shifts the county’s banking relationship from a Tier One institution, Cooperative Bank of Kenya, to Sidian Bank, a Tier Three bank, raising serious questions about the financial implications of the move.
In a correspondence dated 5th November 2025 (Reference: NCC/CS/GA/1011), the Office of the Governor, through the County Secretary and Head of County Public Service, informed all Chief Executive Officers (Level 4 and 5 Hospitals) and Officers in Charge of County Health Facilities about a mandatory change in bank accounts.
The change stems from a decision made during the 69th Meeting of the Nairobi City County Executive Committee held on 28th October 2025. The committee officially resolved to designate Sidian Bank as the Principal Banker for the county’s health facilities, replacing the previous arrangement, which reportedly involved the established Cooperative Bank of Kenya (Co-op Bank).
The decision to abruptly transition from a large, financially robust Tier One institution like Co-op Bank to a smaller Tier Three institution like Sidian Bank has been described by observers as sudden and strange.
The move has drawn particular scrutiny when comparing the financial magnitude of the County’s operations to the bank’s capacity:
- Hospital Revenue: Nairobi County collected Ksh. 1.1 Billion from hospitals alone in the last financial year. This is the revenue stream now designated to Sidian Bank.
- Bank Deposits: During the same period, Sidian Bank’s total customer deposits stood at approximately Ksh. 50 Billion.
- County Budget: Furthermore, Nairobi County’s total annual budget is roughly KES 45 Billion.
This juxtaposition means the financial scale of the County’s entire budget (Ksh. 45B) is almost comparable to the entire customer deposit base of Sidian Bank (Ksh. 50B). The rationale for moving high-volume government accounts to a lower-tier bank has not been immediately communicated, leading to significant concern regarding the management and security of public funds.