Chairperson of the Commission on Revenue Allocation Mary Wanyonyi (left) and Controller of Budget Dr Margaret Nyakang'o during the Intergovernmental Budget and Economic Council (IBEC) at the Deputy President's residence in Karen Nairobi on June 23, 2025.
County governments are facing a cash crunch as 21 of them delay paying their workers for two months.
The salary delays have hit both the county executives and assemblies, with workers in several counties saying they have been forced to borrow money to meet their needs.
The crisis has come at a particularly difficult time, with most schools reopening this week and parents required to pay fees and meet other expenses.
However, some counties, including Mombasa, Kisumu, Nyandarua, Kirinyaga, Nyeri, Marsabit, Kilifi and Embu, have paid their workers their June and July salaries.
The crisis has emerged due to disputes over budget approvals and compliance requirements that have affected counties’ access to funds through the Integrated Financial Management Information System (IFMIS).
“The county governments should be allowed to draw salaries for their workers even when there are outstanding budgetary issues for the other vote-heads. They should not be punished for the mistakes that are not of their own making,” Mr Roba Duda, the secretary-general of the Kenya County Government Workers Union (KCGWU), said in an interview in Bomet.
Some of the counties had entered into agreements with commercial banks to advance them salaries for their employees, but some of the lenders have ended the deals after the devolved units failed to repay the money or transferred their accounts to rivals.
On Monday, during the 30th ordinary session of the Intergovernmental Budget and Economic Council, Controller of Budget Margaret Nyakang’o revealed that, as of August 19, 41 county governments had submitted their 2026/27 budgets to her office for approval.
Controller of Budget Dr Margaret Nyakang’o.
She said 32 of the 41 budgets had been cleared, while seven counties were yet to submit their budget documents for approval. These are Embu, Kisumu, Machakos, Meru, Siaya, Tana River and Trans Nzoia.
Dr Nyakang’o said her office was still analysing the budgets or responses to comments of four counties, while five others had been issued with comment letters and were yet to respond. She did not name the counties.
“The continued delay in the submission of the FY 2026/27 budgets poses significant risk of financial paralysis – hinders the approval of withdrawals from the County Revenue Funds and County Assembly Funds. It also impedes effective budget implementation and disrupts the delivery of essential public services,” she said.
She added: “To facilitate the smooth implementation of the FY 2026/27 budgets, counties should submit all approved budget estimates, planning documents and other statutory documents required for the approval of withdrawals from the County Revenue Funds and County Assembly Funds at the beginning of the financial year. Timely submission of these documents to the OCoB will facilitate IFMIS clearance, expedite approval of exchequer withdrawals, and ensure uninterrupted implementation of approved programmes and service delivery.”
Council of Governors Chairperson Ahmed Abdullahi said last week that counties facing budget stalemates should still be able to access part of their allocations to meet essential obligations, including paying workers.
Council of Governors Chairperson Ahmed Abdullahi.
“Even as the counties seek to streamline the budgetary issues, they should be able to access part of the money to pay workers their salaries and deal with promotions like those of health workers,” Mr Abdullahi said during the Health Summit.
According to Deputy President Kithure Kindiki , the government had released all monthly allocations due to the 47 counties up to August.
“I am happy to note that, despite the fiscal constraints we are facing as a country, the National Treasury disbursed all the amounts due to county governments as part of the equitable share by the close of the financial year,” he said.
He added in a statement after the meeting: “We have also released July and August allocations. This demonstrates the commitment of Kenya Kwanza to support devolution.”
A spot check by the Nation yesterday revealed employees in several counties had gone without salaries for one or two months.
In Siaya, the stalemate is particularly complex. A bitter dispute between the county executive and the county assembly has delayed the payment of July salaries.
The county’s budget process has been complicated by the absence of a substantive Finance executive, disputed pending bills and the rollover of development projects that were not completed in the previous financial year.
As anxiety grew among employees, the administration of Governor James Orengo sought to explain the delay through an internal memo dated August 19. The memo signed by acting County Secretary and Head of Public Service Elizabeth Adongo attributed the delay to challenges in finalising the budget.
She acknowledged the inconvenience caused by the delay.
“The county government recognises the considerable inconveniences occasioned by the delay and sincerely appreciates the patience and understanding of all staff during this period. Payment of salary remains an immediate priority, and the government will move with urgency to regularise the position upon completion of the budget process,” she said.
Siaya’s Sh11 billion budget was passed with amendments, but questions remain over its implementation, particularly the development component.
The finance docket is without a substantive holder after the county assembly rejected the nomination of George Nying’iro, who had been acting. Chief Finance Officer Jack Odinga is reportedly on leave.
Recently, Yimbo East Ward Rep Francis Otiato, who sits on the Budget Committee, warned the county was facing one of its most severe financial crises in years, with much of the 2026/27 budget already committed to salaries, operational costs and pending bills.
Kisii is among the counties yet to fully settle July salaries. On August 12, County Secretary Ernest Osoro informed employees that payment of July salaries would be delayed because of delays in approving and uploading the county budget.
“This has affected the processing and release of funds. As the county government, we urge all of you to be patient as the process is ongoing to facilitate the release of the funds,” he said in a memo.
Speaking last Friday at the Farmers Training Centre in Kisii Town, Governor Simba Arati acknowledged the delay and promised that all his more than 6,000 employees would have received their July salaries by yesterday.
“I know people have not been paid salaries as I am speaking because of the budget approvals. Actually, we are among the first counties whose budgets have been approved by the Controller of Budget. Therefore, I want to assure all my workers that today some banks will pay and all the rest will get theirs by Monday next week,” Mr Arati said.
However, some employees who spoke to the Nation yesterday said the money had not yet reached their accounts.
“We hope what the governor promised will come to fruition. We are pressed with responsibilities and largely depend on our salaries, especially now that our children are reopening schools,” said a county enforcement officer who requested anonymity.
In the South Rift, Nakuru, Bomet and Kericho have not paid their workers, while Nyandarua and Narok have done so.
In Bomet, workers said they had gone without pay for two months, describing the situation as an annual occurrence.
“Workers have unfortunately not received their salaries for the last two months. But we have to remember that there are those who have not been reinstated or paid despite several court orders in the last three years,” said David Rono, the KCGWU Bomet branch secretary.
At the Coast, Mombasa has paid its workers while employees in Taita-Taveta, Tana River and Lamu reported delays in receiving their July and August salaries.
In Taita-Taveta, some workers said they had been informed that the delay was linked to the approval of the county budget. However, Finance Executive Elijah Mwazo said the problem had been resolved, and workers would receive their July salaries this week.
Tana River County workers have not received their July salaries, with officials attributing the delay to the late submission of the county budget.
The situation in Lamu was mixed, with some employees confirming that they had received their July salaries while others were still waiting.
In Kilifi, there have been no delays in salary payments.
In Homa Bay, county employees are waiting for their July salaries, with the county government yet to fully explain the delay.
“We have not received any communication from the government explaining why there are delays. We should have been waiting for our August salaries and not July,” a county employee said.
Kenya National Union of Nurses and Midwives Secretary Emmadick Okeyo said members had not been given an explanation for the delays.
“We are still waiting for July salaries. No one has communicated with us to let us know why there are delays,” he said.
The county finance office attributed the delay to pending approvals CoB.
The same situation was reported in Turkana, Trans Nzoia, Baringo, Isiolo, Meru and Tharaka-Nithi.
In Turkana, a notice dated August 10 and signed by County Secretary and Head of County Public Service Richard Ekai said efforts were under way to expedite the payments.
“You are urged to remain patient as the process is finalised. We apologise for the inconvenience caused,” Dr Ekai said.
Catherine Loreng, a county employee, said she had no money to pay her child’s school fees or buy a new school bag.
In Trans Nzoia, more than 3,000 county employees are yet to receive their July salaries as the devolved unit works to meet budget approval requirements.
“It’s true we have not paid workers, but we had sent a letter to notify them of the delay. We are doing verification and confirmation of the budget figures as we wait for clearance letters from the National Treasury and the Controller of Budget,” Finance Executive Pepela Wanjala said yesterday.
He said the budget process had earlier been delayed at the county assembly.
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Additional reporting by Brian Ocharo, George Odiwuor, Sammy Lutta, Evans Jaola, Florah Koech, Pius Maundu and David Muchui.
