Nairobi County among 10 counties with zero funds allocated for development- CoB

Nairobi County, under Governor Johnson Sakaja, is among 10 devolved units where no funds were allocated for development in the first quarter of the 2024-2025 financial year, according to a report by Controller of Budget (CoB) Margaret Nyakang'o.

The report, covering the period from July to October, lists Kajiado, Baringo, Lamu, Uasin Gishu, and West Pokot counties alongside Nairobi as having recorded zero expenditure on development projects.

In contrast, Narok Governor Patrick Ole Ntutu and Kirinyaga Governor Anne Waiguru led in development spending, allocating Sh477 million and Sh378 million respectively.

Busia County, under Governor Paul Otuoma, followed closely with Sh328 million spent on development.

"During the reporting period, the County government’s development expenditure amounted to Sh6.71 billion, translating to an absorption rate of three per cent of the annual development budget of Sh205.33 billion. This represented a decline from the four per cent absorption rate realised in a similar FY 2023/24 period when the County Governments’ cumulative expenditure on development activities was Sh6.92 billion," reads the report.

"Kirinyaga and Busia counties achieved higher absorption rates of their respective approved development budgets, each attaining 12 per cent, followed by Siaya and Garissa counties, each attaining 10 per cent. Conversely, the following counties did not report any expenditure on development programmes in the reporting period under review - Baringo, Elgeyo-Marakwet, Kajiado, Kisii, Lamu, Nairobi City, Nyandarua, Tana River, Uasin Gishu

and West Pokot counties."

The CoB report also highlighted the persistent issue of pending bills, with Nairobi County burdened by Sh121 billion in unpaid dues. Garissa County owes Sh6 billion, while Kiambu and Turkana counties have pending bills of Sh5.9 billion and Sh4.8 billion respectively.

Nyakang’o urged county governments to prioritise the settlement of pending bills, as recommended by the Senate.

"Counties need to enhance financial accountability and prioritise development spending to fulfil their mandates effectively," Nyakang’o said.

The report further flagged counties for poor performance in revenue collection. While Tana River collected 81 per cent of its revenue target, banking Sh78 million, other counties fell short.

Narok achieved 60 per cent of its target with Sh2.9 billion collected, while Samburu and Garissa recorded dismal performances at 36 per cent and 27 per cent of their respective targets.

In total, the 47 counties received Sh55 billion in the first quarter of the financial year, with Sh7.3 billion allocated for development and Sh47.8 billion for salaries and other recurrent expenditures.

Nyakang’o also criticised the growing trend of counties operating multiple bank accounts, a practice she said violates the Public Finance Management (PFM) Act.

Baringo County was cited for operating 292 bank accounts, 256 of which are reportedly linked to health facilities.

Bungoma County was found to have 300 accounts, many of which are not under the Central Bank of Kenya, raising suspicions of irregular spending.

Other counties flagged for operating numerous accounts include Elgeyo Marakwet (155 accounts), Kajiado (50), Embu (46), Kakamega (44), Kwale (64), and Migori (76).

Bomet Governor Hillary Barchok was also highlighted for paying Sh27 million in personal emoluments through a manual payroll system, a process deemed susceptible to abuse.