Kenya: Petitioner Moves to Block Nairobi County-Sidian Bank Payroll Deal

Nairobi — A petitioner has moved to court seeking to halt a payroll support services partnership between the Nairobi City County Government and Sidian Bank Limited, arguing that the agreement was reached in violation of constitutional provisions on public participation, governance, and administrative fairness.

In the petition filed before the court, the petitioner seeks multiple declarations and orders nullifying the Memorandum of Understanding (MOU) and the subsequent approval process by the County Assembly committee, terming it unprocedural, unconstitutional, and void.

At the centre of the dispute is the claim that the county government failed to subject the MoU on payroll support services to adequate public participation as required under Article 196 of the Constitution, alongside alleged breaches of principles of equity, transparency, and accountability in public finance management.

The petitioner argues that the agreement undermines the right to dignity and fair administrative action and violates legitimate expectations of affected parties, calling on the court to permanently restrain the implementation of the arrangement.

The court has also been asked to quash the County Assembly committee's 38th report that endorsed the MoU and issue an injunction preventing any further steps toward its implementation pending determination of the case.

"The Respondents acted in disregard of constitutional safeguards on public participation and transparency in public decision-making."

"The Memorandum of Understanding was implemented in a manner that undermines the principles of equity, accountability, and fair administrative action."

The case comes against the backdrop of Nairobi County's broader banking shift, which began in late 2025 when the county government moved to designate Sidian Bank as a key financial services partner for select operations, including banking services for health facilities.

The decision, communicated through internal circulars following an executive resolution, saw several county institutions instructed to migrate accounts to Sidian Bank, a move the county defended as aimed at improving efficiency in salary processing and financial management.

Read the original article on Capital FM.