Nairobi County has been identified as the county allocating the smallest portion of its budget to development projects, according to the latest County Governments Budget Implementation Review Report (CGBIRR) released by the Controller of Budget.
The report reveals that out of Sh14 billion earmarked for development, Nairobi spent just Sh4 billion, raising concerns over compliance with legal requirements.
Section 107(2)(b) of the Public Finance Management Act of 2012 requires that counties dedicate at least 30 per cent of their budgets to development expenditure over the medium term.
Regulation 25(1)(g) of the PFM (County Governments) Regulations 2015 further specifies that actual spending on development should align with this threshold.
Controller of Budget Margaret Nyakang’o noted that Nairobi’s expenditure on development stood at only 12 per cent of its total spending, giving it the lowest ranking among counties, alongside Kajiado, Kiambu, and Kisumu.
The county also recorded a development budget absorption rate of just 28.7 per cent.
This is not the first time Nairobi has been criticized for low development spending.
In the COB report for the year ending June 2024, the county failed to spend any portion of its over Sh200 billion development budget, placing it in the red zone with counties such as Baringo, Elgeyo-Marakwet, Kisii, Lamu, Nyandarua, Tana River, Uasin Gishu, and West Pokot.
Machakos County followed Nairobi with Sh1.9 billion spent on development projects, representing 16 per cent of its Sh4.9 billion allocation. The county attributed the low expenditure to budget revisions caused by cash-flow constraints.
Kisumu County spent only 17 per cent of its development budget, equivalent to Sh1.5 billion of the Sh5.4 billion set aside. The county explained that Sh1.3 billion went toward settling pending bills.
Kiambu and Kajiado counties were tied, each spending 18 per cent of their allocated development funds.
Kiambu used Sh2.9 billion of its Sh7.8 billion allocation, citing delays in receiving its equitable share. Kajiado spent Sh1.7 billion of Sh3.8 billion, with low disbursement of additional funds reported as the reason.
