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Counties breach wages spend limit by Sh32bn, development hit

Raila Odinga

Council of Governors Chairperson Ann Waiguru (right), Uasin Gishu County Governor Jonathan Bii second (right), and other leaders listen to Azimio Leader Raila Odinga during the Biennial Devolution Conference at Eldoret Sports Club in Uasin Gishu County on August 17, 2023.

Photo credit: Jared Nyataya I Nation Media Group

What you need to know:

  • 12 counties spent more than half of their revenue on wages, led by Laikipia (59.1 percent), Tharaka Nithi (57.2 percent) Embu (56 percent), and Meru (55.5 percent).
  • Others spending between 50 and 55 percent were Kisii, Mombasa, Nyeri, Machakos, Taita Taveta, Garissa, Kajiado and Murang’a counties.

Counties exceeded their wage ceiling by Sh32 billion in the year ended June 2023, hurting their ability to fund development and settle pending bills owed to suppliers and contractors.

The latest data published by the National Treasury in the Draft 2023 Budget Review and Outlook Paper (BROP) shows the devolved units spent Sh195.1 billion on wages in the 2022/2023 fiscal year, against Sh466 billion revenues.