16 counties on the spot for failing to pay staff despite receiving full Treasury funds
The wage bill continues to strain devolved units. Counties spent Sh220.6 billion on salaries and allowances in the year, a rise from Sh209.8 billion the previous year.
16 county governments have been put on the spot for failing to pay employees in May and June despite having received their full annual share from the Treasury, according to a new report from the Controller of Budget (CoB).
CoB Margaret Nyakang’o disclosed that several counties, including Nairobi, Mombasa, Nyandarua, Turkana, Narok and Bungoma, did not make salary withdrawal requests to the Central Bank of Kenya.
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Records show that Turkana, Narok and Bungoma last drew salaries in April, while Bomet, Kilifi, Kisumu, Machakos, Makueni, Mandera, Marsabit, Meru, Murang’a, Nyandarua, Tharaka Nithi and Mombasa last processed May salaries.
“Notably, out of the 47 county governments, 16 did not request their June 2025 salaries,” said Dr Nyakang’o.
The Controller pointed out that the situation occurred even after counties had received a total of Sh533.1 billion for the year.
This included Sh387.43 billion in equitable share, Sh30.83 billion in arrears from 2023/24, Sh24.86 billion as additional funding, Sh22.69 billion in carried forward balances, and Sh67.3 billion from own-source revenue.
“For those county governments that did not requisition their June 2025 salaries, the controller advises them to ensure adequate allocation for employee compensation in the 2025/26 fiscal year to cover wages for 12 months, as well as any arrears,” she added.
The wage bill continues to strain devolved units. Counties spent Sh220.6 billion on salaries and allowances in the year, a rise from Sh209.8 billion the previous year.
This accounted for 41.4 per cent of their total revenues, well above the 35 per cent ceiling provided by law.
Only seven counties kept their wage bills within the legal limit: Kilifi at 24 per cent, Siaya at 26 per cent, Tana River at 27 per cent, Nakuru at 30 per cent, Kwale at 31 per cent, Nandi at 33 per cent and Nyandarua at 33 per cent.
The report also flagged weaknesses in payroll management. “Further analysis also indicates that Sh10.7 billion, five per cent of the total expenditure on employee compensation, was processed manually and paid outside the government payroll system,” Nyakang’o said.
Although lower than the Sh15.9 billion reported in the previous year, she warned that such practices leave public funds exposed to misuse.
The health sector wage bill remains a major pressure point for counties. By the end of June, counties had spent Sh141.78 billion on health, nearly a third of their combined expenditure of Sh470.74 billion. Out of this, Sh97.45 billion went to salaries of health staff.
Some counties reported an especially heavy burden. Baringo allocated more than two-thirds of its wage bill to health salaries, Nyeri spent 56 per cent, Trans Nzoia 55 per cent, and Taita Taveta 54 per cent.
CoB Nyakang’o noted that while directing more money to health strengthens service delivery, it also eats into resources meant for other areas.
“County governments should mobilise additional funds for the health sector in collaboration with other stakeholders. This strategy would help alleviate the financial burden and free up resources for other sectors,” she said.
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