Nairobi County Governor Johnson Sakaja has defended his administration's decision to designate Sidian Bank as the principal banker for county health facilities, stating that the bank offered the best commercial terms compared to other financial institutions.
Appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations on Monday, November 24, the County boss faced questions about the rationale behind selecting Sidian Bank over other established commercial banks.
Senator Richard Onyonka raised concerns about the choice, questioning whether the decision was influenced by the ownership structure of Sidian Bank rather than purely by business considerations.
"If I was to ask you today to give me a proposal, an offer which was given by Sidian Bank, Citibank, Kenya Commercial Bank and all these other banks. The reason for this is that Sidian Bank is owned by individuals who are Kenyans, having acquired it relatively recently. And all these individuals are actually in government," Senator Onyonka stated.
"Are you sure that if you were to consider what other commercial banks are offering, that Sidian would actually be offering this purely on a business basis and not because of the connections of the owners? That's really the point. And I'm not accusatory. I'm just trying to ask if the evidence."
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In his response, Governor Sakaja firmly defended the decision as purely administrative and based on the principle of competitive advantage.
"They have given us the best deal. And it's an administrative decision. We have reviewed all the other banks. We invited them. We've looked at different commercial banks," Sakaja explained.
The Governor emphasized that Sidian Bank's offer stood out particularly because of the favorable terms on processing fees and rates.
"No one is charging us a processing fee as a percentage. No one is giving us that rate. It's the best. So it's an administrative decision," he stated.
Sakaja also addressed the concerns about ownership, arguing that all banks have shareholders and that Sidian Bank should not be treated differently.
"Banks, of course, like any institution, can have owners. Sidian has owners. KCB has shareholders. NCBA Bank has owners. I don't see people asking about it when the account is open, accounts there. All of these things have shareholders. But if there's a specific shareholder in government, please provide that evidence to us," the Governor said.
He further insisted that no Kenyan financial institution should face discrimination in competing for government business.
"It's a Kenyan institution. I don't think any bank should be discriminated against. The procedures were followed. I don't think anyone has a greater right or any institution has a greater right. No law says bank with equity or with co-operative," Sakaja argued.
The Governor added that as long as the county has assessed the risks and secured a better deal in terms of processing and operational costs, the decision remains in effect.
"So long as you've looked at the risk involved and the deal, a better deal to the county in terms of processing, you know, salary to see, we're confident about that. And it's a decision that we've made," he concluded.
The directive to move county health facility accounts to Sidian Bank was issued on November 5, 2025, by Nairobi County Secretary and Head of the County Public Service, Godfrey Akumali.
The notice was addressed to all CEOs of Level 4 and 5 hospitals, as well as officers in charge of county health facilities.
According to Akumali, the County Executive Committee's 69th meeting held on October 28, 2025, passed a resolution designating Sidian Bank as the principal banker for the county.
"In its 69th Meeting held on 28th October, 2025, the Nairobi City County Executive Committee resolved to designate Sidian Bank as its Principal Banker," Akumali stated in the notice.
The County Secretary directed the CEOs of health facilities to complete the necessary forms to facilitate the opening of Sidian Bank accounts and submit them by Friday, November 7, 2025.
"This correspondence hereby serves to communicate the resolution of the County Executive Committee to request that you complete the attached forms to facilitate the opening of your respective accounts," the notice read in part.
"Kindly attach all the required documents and submit the completed forms to the office of the County Executive Committee Member - Finance and Economic Planning by Friday, 7th November, 2025. Your prompt attention to this matter will be highly appreciated," the notice added.
