At least 10 counties emerged as the top performers in development expenditure, using more than 70 per cent of their allocations in 2025/26.
A report by the Controller of Budget released last week shows that Kilifi, Wajir, Mandera, Meru, Trans Nzoia, Kirinyaga, Marsabit, Samburu, Kericho and Vihiga achieved the highest development expenditure absorption.
According to the County Governments Implementation Review Report for the 2025/26 financial year by Controller of Budget Margaret Nyakang’o, Kilifi, Wajir and Mandera recorded development absorption rates of more than 80 per cent.
The 10 counties spent a combined Sh34 billion of the Sh126.69 billion spent by all 47 counties on development during the year under review. The counties devoted a larger share of their development budgets to infrastructure and other long-term investment projects.
Kilifi had the highest development absorption rate at 84.52 per cent, followed by Wajir at 83.03 per cent and Mandera at 80 per cent. Meru recorded 79.04 per cent, Trans Nzoia 73.94 per cent, Kirinyaga 73.89 per cent, Marsabit 73.79 per cent and Samburu 73.24 per cent. Kericho and Vihiga closed the list at 71.70 per cent and 70.16 per cent respectively.
“In the 2025/26 financial year, all the 47 county governments spent Sh126.69 billion on development activities, representing an absorption rate of 54 per cent of the annual development budget of Sh233.69 billion,” the report released on Friday says.
However, the 47 counties spent Sh369.89 billion (89.23 per cent of the total Sh496.58 billion expenditure) on recurrent expenditure, compared to Sh126.69 billion, or 25.51 per cent, on development. Meru at 91.85 per cent and Wajir at 90.23 per cent demonstrated strong absorption rates for recurrent expenditure.
In 2024/25, counties spent Sh346.98 billion on recurrent expenditure and Sh123.76 billion on development, representing 26 per cent of the total expenditure.
Kilifi spent Sh6.3 billion on development out of a Sh7.4 billion development budget, while Wajir spent Sh4 billion out of Sh4.9 billion. Mandera spent Sh4.3 billion out of the Sh5.4 billion set aside for development.
Meru spent Sh4.2 billion on development, while Trans Nzoia spent Sh2.9 billion, Kirinyaga Sh2.4 billion, Marsabit Sh3.2 billion, Samburu Sh1.9 billion, Kericho Sh2.7 billion and Vihiga Sh1.9 billion.
At the other end of the scale, the Controller of Budget flagged 13 counties for recording low development expenditure absorption.
The counties were Nakuru (48.97 per cent), Kajiado (48.05 per cent), Baringo (47.76 per cent), Mombasa (45.75 per cent), Laikipia (45.49 per cent), Kiambu (43.10 per cent), Kisii (41.01 per cent), Uasin Gishu (40.10 per cent), Narok (34.42 per cent), Elgeyo Marakwet (34.17 per cent), Nairobi (28.47 per cent), Siaya (26.53 per cent) and Kisumu (25.92 per cent).
Governor Johnson Sakaja’s administration, for instance, spent only Sh3.8 billion on development out of a Sh13.4 billion development budget.
In Siaya, Governor James Orengo’s administration spent Sh1.6 billion out of a Sh6 billion development budget, while Kisumu’s Prof Anyang’ Nyong’o spent Sh1.7 billion out of the Sh6.7 billion allocated for development.
The report also raised concerns about counties spending heavily on recurrent and other expenditures while allocating less to development. “A review of cumulative expenditure showed that county assemblies spent Sh1.61 billion on sitting allowances for Members of County Assemblies during the year under review.”
During the period, counties spent Sh235.96 billion on personnel emoluments, including salaries, wages and allowances, and Sh133.92 billion on operations and maintenance.
County governments collectively generated Sh96.08 billion in own-source revenue during the year, representing 89.99 per cent of their cumulative annual target. This was a significant increase from the Sh67.3 billion collected in 2024/25. The 47 counties also received Sh415 billion as equitable share from the national government during the period.
The Controller of Budget has recommended that in 2026/27, counties should contain personnel emoluments at sustainable levels and comply with Regulation 25(1)(b) of the Public Finance Management (County Governments) Regulations, 2015. She also wants counties to prioritise development as they broaden their own-source revenue collection.
The Nation has established that high wage bills, which consume more than half of some counties’ annual budgets, unpaid debts dating back more than five years, and stalled projects inherited from previous administrations have constrained governors’ ability to initiate meaningful development projects.
Four years ago, the majority of the 47 counties enlisted audit committees to scrutinise pending bills before embarking on payments. However, as of June 30, 2026, counties had reported outstanding bills amounting to Sh172.53 billion.
Nairobi leads with pending bills totalling Sh86.9 billion, accounting for 50.35 per cent of the total pending bills reported by counties in the 2025/26 financial year.
The Controller of Budget and the Auditor-General have in previous reports flagged several county governments for spending huge amounts on salaries.
The two public finance watchdogs have cited unauthorised payments, overstaffing and unsupported payments among factors contributing to wastage in the public wage bill.
“There is wastage in counties through bloated wage bills. Some counties use up to 70 per cent of cash to pay salaries, and only 30 per cent is utilised on development,” Ms Nyakang’o said in her latest report.
Data from the Auditor-General and the Controller of Budget show that most county governments have exceeded the recommended 35 per cent limit on salaries and wages expenditure for the past four years.
The Public Finance Management Act, 2015, sets the limit for county government expenditure on wages and benefits at 35 per cent of total revenue.
