Sh48.5 billion county funds remain unused at CBK as devolved units struggle with finances
Counties with the highest amounts of unspent funds include Kisii, which has Sh3.46 billion sitting idle in the CRF account, while its development fund only holds about Sh6.8 million.
The Senate Committee on Finance and Budget has been put under pressure to explain why Sh48.5 billion of county funds remains dormant in the County Revenue Fund (CRF) account at the Central Bank of Kenya (CBK).
The matter was brought to the Senate's attention on Wednesday after nominated Senator Esther Okenyuri sought a statement following a National Treasury report that counties showed that had left substantial funds unspent despite ongoing financial struggles at the devolved units.
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In her request, Okenyuri demanded that the committee provide a breakdown of the funds currently held in county recurrent accounts at CBK as of January 2025.
She also called for an assessment of the economic consequences resulting from the failure of counties to absorb the funds, especially since most of the money was allocated for development projects.
In his response, Deputy Speaker Murungi Kathuri applauded Okenyuri's initiative but called for her to engage Treasury CS John Mbadi for more concrete answers.
" I wish maybe this could also go through a question to the CS Treasury because you could get answers faster than our statements. Although senators must be interested to know the amount spent in their counties, there are so many challenges in the counties that we represent. As such, I think that is enough of the work that we are supposed to do as senators," he said.
The latest report by the National Treasury indicated that since October 2024, dormant funds in the CRF account had increased by Sh6 billion, signalling a lack of absorption by county governments.
Counties with the highest amounts of unspent funds include Kisii, which has Sh3.46 billion sitting idle in the CRF account, while its development fund only holds about Sh6.8 million. Nakuru follows closely with Sh2.78 billion in its CRF account, awaiting allocation to various projects.
Other counties with over Sh900 million in unutilised funds include Uasin Gishu, West Pokot, Baringo, Kakamega, Kiambu, Kilifi, Kitui, Kwale, Mandera, Meru, Narok, Nyeri, Turkana, and Wajir.
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