By Bella Ikida.
Photos by Calvin Randy
In a bold move to enhance public finance management and ease liquidity challenges for local contractors, Kisumu County has signed a Memorandum of Understanding (MoU) with Sidian Bank.
Kisumu County led by Governor, Prof Peter Anyang’ Nyong’o today witnessed the ceremony, also present was the Deputy Governor Dr Mathew Owili, County Secretary Hesbon Hongo, his County Executive Members and other county officials.
The agreement was formalized today and cosigned by George Okong’o the CEC Member for the Department of Finance, Economic Planning and ICT(E-Government) Services and Simon Mwangi, Head of Government and Institutional Banking at Sidian Bank, who represented the bank’s CEO,Chege Thumbi.
The MoU marks the beginning of a strategic partnership aimed at supporting key county functions through innovative financial solutions including credit bill discounting, contractor payment facilitation, and healthcare equipment financing.
Governor Prof. Peter Anyang’ Nyong’o, who spoke during the signing ceremony, highlighted the need to consolidate the county’s banking arrangements to reduce risks and improve financial management.
“We recently took a random sample and found that some counties hold as many as 137 bank accounts,” the governor said.
He further stated “This is a risk area that we must address. We need to consolidate the bank accounts and streamline to promote accountability and efficiency.”
Mr Mwangi said. “This MoU is a starting point, our goal is not just to provide routine banking services, but to build a transformative relationship that benefits both the county and its stakeholders, especially contractors and service providers.”
He expressed optimism about the potential of the partnership to reduce delays in contractor payments and improve transparency.
One of the items he highlighted was the proposed collaboration is a credit bill discounting program, which would allow contractors to receive payments upfront through Sidian Bank while the county clears its bills through scheduled remittances.
According to Mr Okong’o. Kisumu County currently banks with nearly 30 commercial banks, a practice that complicates remuneration processes and heightens the risk of fraud.
Consolidation under this new MoU with Sidian Bank aims to curb these challenges while deepening financial collaboration.
Sidian Bank has also offered flexible financial solutions to help the county manage health sector budget shortfalls caused by delayed national disbursements. With county hospitals struggling to acquire essential equipment, and the bank’s support signals a broader trend of increased banking involvement in public service delivery.