Sh48.5 billion lying idle in county funds CBK account despite cash crunch in devolved governments

Despite the financial struggles faced by many county governments, billions of shillings remain unspent in their accounts, with Kisii and Nakuru leading the list of counties sitting on idle funds.

The latest data from the National Treasury reveals that about Sh48.5 billion is lying dormant in the County Revenue Fund (CRF) account at the Central Bank of Kenya (CBK), showing a Sh6 billion increase since October 2024.

Among this, Sh1.9 billion remains untouched in the recurrent account, even as some county employees are facing delayed salaries.

The situation is especially concerning in the development accounts.

Sh434.7 million remains idle at a time when a report by the Controller of Budget, Dr Margaret Nyakang'o, highlighted the failure of 10 counties to spend a single coin on development over the past three months.

In particular, Kisii County has Sh3.46 billion sitting unused in its CRF account, with only about Sh6.8 million in its development fund. Nakuru County has Sh2.78 billion in its CRF account, waiting to be spent.

No development spending

Interestingly, Kisii is one of the counties highlighted for not spending any funds on development during the first quarter of the financial year ending June 30, 2025.

The county, led by Governor Simba Arati, is not alone. Other counties in similar situations include Tana River, Uasin Gishu, Nairobi, and West Pokot.

For example, Tana River County, under Governor Dhadho Godhana, has Sh1.23 billion in idle cash, with Sh793.4 million earmarked for development.

Nairobi, led by Governor Johnson Sakaja, has yet to claim Sh1.82 billion, including Sh108.8 million for development projects.

Counties such as Uasin Gishu, West Pokot, Baringo, Kakamega, Kiambu, Kilifi, Kitui, Kwale, Mandera, Meru, Narok, Nyeri, Turkana, and Wajir are also among those with significant amounts of unaccessed funds, with Sh900 million or more lying unused in their accounts.

The issue of idle funds was raised by National Treasury Cabinet Secretary John Mbadi in October when he revealed that counties had failed to access about Sh42 billion from their accounts at the CBK.

Mbadi explained that these funds include approximately Sh3 billion meant for recurrent expenditures and Sh969 million earmarked for development.

He stressed the need for counties to absorb the funds.

"As we speak, there is Sh42.38 billion that has not been absorbed or taken by the counties sitting in the CRF. The money is there in the account. Once the money is transferred to the CRF account, it should go to the counties to pay salaries and also go into development expenditure," Mbadi said.

He further warned that idle funds add no value to the economy and slow down economic growth, urging county chairpersons to resolve issues with the Controller of Budget to ensure that the funds are effectively utilised.

The National Treasury has since disbursed Sh158 billion to counties as of November 18, 2024, covering arrears for June as well as allocations for July through October.

The government has now caught up with its disbursements after delays linked to the failure of Parliament to pass key legislation needed for the allocation of county funds.