Home Business Counties Spend Big on Wages as Development Stalls, New Report Shows

Counties Spend Big on Wages as Development Stalls, New Report Shows

Sh30.99B Rush: Counties Race Time After Treasury’s Last-Minute Release
Sh30.99B Rush: Counties Race Time After Treasury’s Last-Minute Release
  • Counties spent less than a quarter of their budgets in the first three months.
  • Salaries, allowances and travel took priority over development projects.
  • Several counties recorded zero development spending despite receiving billions.

Kenya’s devolved units are once again under scrutiny after fresh data showed that billions of shillings released to counties are largely being consumed by recurrent expenditure, leaving development projects stalled.

According to the Controller of Budget’s latest quarterly report, no county managed to spend even 25 per cent of its approved annual budget in the first quarter.

Isiolo County emerged as the top spender, but even then, it only absorbed 21 per cent of its budget. Kitui followed at 18 per cent, while Machakos, Nyeri and Uasin Gishu each stood at 14 per cent.

At the bottom were Turkana and Laikipia at 5 per cent, with Tana River, Nyandarua and Kericho performing worst at just 4 per cent, despite having already received funds.

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A closer look at spending patterns paints a worrying picture. In Baringo County, Sh1.64 billion was received in the first quarter, yet Sh649 million went to salaries and operational expenses. The county assembly also spent Sh7.2 million on sitting allowances. No money was directed to development projects.

West Pokot County followed the same path. After receiving Sh1.4 billion, the county reported zero development spending. The executive used Sh750 million on employee compensation, while the assembly spent Sh95 million on staff costs.

Vihiga County also failed to invest in development despite receiving more than Sh1 billion in equitable share and local revenue. Instead, the county spent Sh45 million on domestic travel, mostly by the county assembly, and an additional Sh10 million on foreign travel.

Turkana County, which received Sh3.8 billion, allocated nearly Sh1 billion to employee salaries. Like several others, it recorded no development expenditure during the quarter.

Not all counties performed poorly. Kisii County reported a 22.8 per cent growth in revenue compared to the same period last year and spent Sh13.6 million on development projects.

Trans Nzoia received Sh1.9 billion and spent Sh575 million on salaries, while notably reporting no travel expenses during the quarter.

On own-source revenue, Samburu led by collecting 40 percent of its annual target. Lamu followed with 36 per cent, while Narok achieved 35 per cent.

At the lower end, Kwale, Nandi and Siaya each collected less than 10 per cent of their projected local revenue.

The report once again raises concerns about whether counties are delivering the promise of devolution, as residents continue to wait for roads, health facilities and water projects while funds are largely absorbed by wages and allowances.

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