Controller of Budget Margaret Nyakang’o.
Ten counties spent nothing on development projects in the first quarter of 2024/2025 financial year. This is according to the latest audit report by Controller of Budget Margaret Nyakang’o.
The report highlights how development expenditure continues to suffer with counties spending up to 70 per cent of their budgets on salaries, allowances and other recurrent expenses.
During the review of the expenditure from July to September, this year, counties collectively spent Sh6.71 billion on development projects, an absorption rate of just 3 per cent of the annual development budget of Sh205.33 billion.
This was a decline from the 4 per cent recorded in the same period of the previous financial year.
"The county governments spent Sh6.71 billion on development activities. The expenditure was a decrease from an absorption rate of 4 percent reported in the first quarter of the previous year 2023/2024," the report states.
Nairobi City County leads the list of 10 counties that did not spend a single coin on development. Others include Baringo, Elgeyo-Marakwet, Kajiado, Kisii, Lamu, Nyandarua, Tana River, Uasin Gishu and West Pokot.
The report shows that the 47 counties were allocated Sh576.7 billion, comprising Sh205.33 billion (36 per cent) allocated to development expenditures and Sh371.4 billion (64 per cent) to recurrent expenditures.
In Nairobi, despite the devastating effects of floods that exposed poor road networks and drainage systems, Governor Johnson Sakaja’s administration did not spend on development during the period.
The county spent Sh2.89 billion on salaries and other recurrent operations.
However, Governor Sakaja disputed the report, insisting the county had spent Sh844 million.
“The statement by the COB on zero spend on development expenditure from July is misleading. We have so far (July 2024 to date) paid up to Sh844million in development expenditure,” Mr Sakaja said.
The Governor attached a schedule of disbursement in a statement published on his X account.
Baringo County government led by Governor Benjamin Cheboi spent Sh599million on salaries and other expenses but did not spend a penny on development during the period.
Others that splashed millions on salaries, allowances and other operations, but nothing on development include Elgeyo-Marakwet which spent Sh 744million , Kajiado(Sh1.18billion), Kisii( Sh 1.02billion) Lamu(Sh 379 million), Nyandarua( Sh 377million), Tana River(Sh403million), Uasin Gishu(Sh1.2billion), and West Pokot(Sh572million).
Narok, Kirinyaga, Busia, and Garissa stood out for prioritizing development expenditure.
Narok County, under Governor Patrick Ole Ntut led with Sh477 million spent on development followed by Siaya at Sh475 million and Garissa at Sh428 million. Kirinyaga spent Sh378 million while Busia spent Sh328 million.
"The counties achieved higher absorption rates of their respective approved development budgets, each attaining 12 percent," the report notes.
Other counties that prioritised development were Kiambu (Sh401millllion against an expenditure of Sh1.88million on salaries and operations, Kwale (Sh333million),Turkana (Sh320million),Trans Nzoia (Sh304million), Meru (Sh290million), Mombasa (Sh255million), Kilifi (Sh236million), Mandera (Sh229 million), Homa bay (Sh222million),Wajir (Sh209 million), Machakos (Sh193million), Migori (Sh172million) and Murang'a (Sh170million).
In total recurrent expenditure by all the 47 county governments was Sh48.96 billion, representing 13 per cent of the annual recurrent budget.
The report also raised concerns about the growing trend of counties operating numerous bank accounts, a practice that violates the Public Finance Management (PFM) Act and is seen as a potential avenue for fund mismanagement.
Baringo County was flagged for operating 292 bank accounts, 256 of which are tied to health facilities. Bungoma County had 300 accounts, many outside the Central Bank of Kenya, raising suspicions of irregular spending.
Other counties flagged include Elgeyo-Marakwet (155 accounts), Kajiado (50), Embu (46), Kakamega (44), Kwale (64), and Migori (76).
Ms Nyakang’o criticised this practice calling it a conduit for looting county funds.
