- Nairobi County spent 69% of its revenue on salaries in three months
- Total revenue received was Ksh. 6.6 billion
- Employee compensation stood at Ksh. 4.79 billion
- Health workers took 42% of the wage bill
- Development spending remained low at KSh. 202.2 million
The Controller of Budget, Dr Margaret Nyakang’o, has warned Nairobi City County over its growing wage bill, urging tighter controls on the hiring of contract and casual workers to rein in spending on salaries and allowances.
In her first quarter report for the 2025/2026 financial year, Nyakang’o noted that the county spent a worrying 69 per cent of its total revenue on staff compensation alone, a trend she says is not sustainable.
Between July and September, Governor Johnson Sakaja’s administration received KSh. 6.6 billion, comprising Ksh. 3.4 billion from the national government and Ksh. 2.5 billion from its own revenue sources.
Out of this amount, Ksh. 4.7 billion was spent on paying workers, leaving limited room for development and service delivery.
The report shows that Nairobi County continued to rely heavily on a few revenue streams, and county-run hospitals brought in KSh. 470 million, while parking fees generated Ksh. 408 million.
In addition, building permits and business permits each contributed over Ksh. 300 million, highlighting their importance in the county’s revenue mix.
During the same period, the county spent Ksh. 5.3 billion on recurrent expenditure, which includes salaries and operational programmes. In contrast, only Ksh. 202.2 million was directed towards development projects.
Employee compensation alone stood at Ksh. 4.79 billion, accounting for 69 per cent of total spending in the quarter.
Health workers accounted for the biggest portion of the wage bill. According to the report, Ksh. 2.03 billion was paid to health sector employees, representing 42 per cent of total staff compensation.
The Nairobi County Assembly spent Ksh. 12.7 million on committee sitting allowances for its 124 MCAs, against an annual budget of KSh. 70 million.
Meanwhile, spending on operations and maintenance jumped sharply to Ksh. 519.15 million, marking a 207 per cent increase compared to the same period in the previous financial year.
More than half of the development budget went to the environment and sanitation department. This included Ksh. 75 million for the supply of a medium tracked dozer with a tipper, and another Ksh. 75 million for a similar machine.
Dr Nyakang’o has called on Governor Sakaja’s administration to tighten systems and improve efficiency. She wants: Salaries processed strictly through the HRIS system, Faster issuance of unified personnel numbers for all staff, Regulation of contract and casual staff hiring Strict adherence to the approved staff establishment
She also directed the County Public Service Board to ensure all hiring complies with the law.
