The Central Bank of Kenya and county governments could be headed for a serious clash after a vocal governor disclosed plans to push treasury to reroute funds through other banks.
Governor Jackson Mandago says the bank has made running of counties transactions almost impossible.
Speaking as he formally opened the Premium Banking section at National Bank in Eldoret on Friday, Mandago asked Treasury Cabinet Secretary and Central Bank Governor to allow counties to transact business with local banks.
This, he says, will ease transactions in terms of access to funds in counties.
"Personally, I think Central Bank is not 'customercentric'."We need to be allowed as counties to open accounts with these other well established banks where counties can easily access their funds," Mandago said.
Government finance regulations stipulate that funds in terms of allocation are channeled to counties' accounts at Central Bank.
It is here then that the devolved units can get their withdrawals, government finance system, IFMIS, also being a player here.