Only a dozen of Kenya’s 47 counties managed to spend more than 70 per cent of their development budgets in the 2024/2025 financial year, according to the latest report by the Controller of Budget.
The twelve counties; Nandi, Trans Nzoia, Narok, Meru, Kericho, Mandera, Kirinyaga, Makueni, Marsabit, Murang’a, Samburu and Wajir; collectively used Sh35.2 billion on development projects out of the Sh123.76 billion spent across all devolved units.
The report shows Nandi had the highest development absorption rate at 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 closed the list at 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,” reads part of the report.
The figures mean counties channelled Sh346.98 billion, or 74 per cent, of their total Sh470.74 billion expenditure into recurrent costs, leaving just 26 per cent for development. This represented an increase of Sh10.98 billion in recurrent spending compared to the 2023/2024 financial year.
Detailed data shows Nandi spent Sh3.3 billion on development from its Sh3.6 billion allocation. Trans Nzoia used Sh3.4 billion out of Sh4.3 billion, Narok spent Sh3.96 billion of Sh5.3 billion, and Meru utilised Sh2.8 billion.
Kericho allocated 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.
Counties with the lowest absorption rates included Kisii at 40 per cent, Elgeyo Marakwet at 39 per cent, Kiambu and Nyamira at 37 per cent, and Kisumu and Nairobi, which recorded only 29 per cent.
In Nairobi, Governor Johnson Sakaja’s administration spent Sh4 billion on development out of a Sh14.2 billion budget. Kisii Governor Simba Arati spent Sh2.4 billion of the Sh6.1 billion allocated to development. However, Nairobi’s development spending showed an increase from the Sh2.72 billion used in 2023/2024, marking a 50.6 per cent rise.
Despite the low overall performance, the report highlights that 12 counties met or exceeded their annual revenue targets.
These were Kisii at 178 per cent, Tana River at 133 per cent, Mandera and Wajir both at 123 per cent, Kirinyaga at 122 per cent, Garissa at 120 per cent, Vihiga at 117 per cent and Samburu at 110 per cent.
Collectively, county governments generated Sh67.30 billion in own-source revenue, equivalent to 77 per cent of the Sh87.67 billion annual target. This was an improvement compared to Sh41.40 billion collected in 2023/2024.
The report cautions counties to rein in rising wage bills. “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,” it states.
A review of spending showed Sh220.64 billion went to salaries, Sh126.34 billion to operations and maintenance, and Sh123.76 billion to development. The report also reveals that by the end of June 2025, counties had pending bills of Sh176.90 billion.
Nairobi alone accounted for Sh86.77 billion, or nearly half of the total outstanding bills, a situation the report warns is stalling progress.
Governors have attributed the low development absorption to high wage bills, inherited debts from defunct local authorities, and stalled projects from previous administrations. Many counties have turned to audit committees to review pending bills before settling payments.
