CoB flags poor utilisation of development funds in counties, says only 12 met threshold
The figures point to an imbalance in county spending, with Sh346.98 billion, or 74 per cent of the overall Sh470.74 billion used for recurrent expenditure such as salaries and operations.
A new report by the Controller of Budget, Margaret Nyakang'o, has revealed that only 12 counties managed to utilise more than 70 per cent of their funds for development in the 2024/2025 financial year, with the rest falling short and directing most of their budgets to recurrent expenses.
The report lists Nandi, Trans Nzoia, Narok, Meru, Kericho, Mandera, Kirinyaga, Makueni, Marsabit, Murang’a, Samburu and Wajir as the best performers in development spending.
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Together, they absorbed Sh35.2 billion of the total Sh123.76 billion spent by all counties on development activities.
Nandi topped the list with an absorption rate of 90 per cent, followed by Trans Nzoia at 77 per cent, Narok at 74 per cent and Meru at 73 per cent. Kericho, Mandera and Kirinyaga each stood at 72 per cent, while Makueni, Marsabit, Murang’a, Samburu and Wajir all recorded 71 per cent.
“During the period under review, all county governments spent Sh123.76 billion on development activities, representing an absorption rate of 57 per cent of the annual development budget of Sh218.99 billion,” states the report.
The figures point to an imbalance in county spending, with Sh346.98 billion, or 74 per cent of the overall Sh470.74 billion used for recurrent expenditure such as salaries and operations.
Development was left with only 26 per cent of the budget. Compared to the 2023/2024 financial year, counties increased their recurrent spending by Sh10.98 billion.
The breakdown shows Nandi spent Sh3.3 billion on projects against a Sh3.6 billion budget, while Trans Nzoia spent Sh3.4 billion out of Sh4.3 billion.
Narok used Sh3.96 billion of its Sh5.3 billion allocation, and Meru absorbed Sh2.8 billion.
Kericho spent Sh2.6 billion, Mandera Sh4 billion, Kirinyaga Sh2.1 billion, Makueni Sh2.6 billion, Marsabit Sh3 billion, Murang’a Sh2.3 billion, Samburu Sh1.5 billion and Wajir Sh3.6 billion.
On the opposite end, Kisii absorbed only 40 per cent of its development budget, Elgeyo Marakwet 39 per cent, Kiambu and Nyamira 37 per cent, while Kisumu and Nairobi registered the lowest rates at 29 per cent each.
In Nairobi, Governor Johnson Sakaja’s administration used Sh4 billion on development out of the Sh14.2 billion budgeted for projects.
Kisii Governor Simba Arati spent Sh2.4 billion out of Sh6.1 billion. Still, Nairobi posted growth compared to the previous year when it spent Sh2.72 billion, marking a 50.6 per cent rise.
The report further indicates that a dozen counties exceeded their local revenue targets, with Kisii collecting 178 per cent, Tana River 133 per cent, Mandera and Wajir 123 per cent, Kirinyaga 122 per cent, Garissa 120 per cent, Vihiga 117 per cent and Samburu 110 per cent.
In total, counties raised Sh67.30 billion in own-source revenue, achieving 77 per cent of the Sh87.67 billion target. This was a jump from the Sh41.40 billion collected in 2023/2024.
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Spending by classification showed Sh220.64 billion went to personnel emoluments, Sh126.34 billion to operations and maintenance, and Sh123.76 billion to development.
“The Controller of Budget now recommends that to improve budget implementation, county governments should ensure that expenditure on personnel emoluments is contained at sustainable levels and in compliance with Regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations, 2015,” the report advises.
The findings also revealed that pending bills remain a major challenge, with outstanding amounts standing at Sh176.90 billion by the close of June 2025. Nairobi accounted for the largest share at Sh86.77 billion, nearly half of the total.
Governors say bloated wage bills, debts carried over from defunct local authorities, and stalled projects inherited from past administrations have limited new development programmes. Most counties have relied on audit committees to verify old debts before clearing payments.
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