Exposed: Counties shun development, prioritise salaries

County governments spent two and a half times more on staff salaries than on development projects in the first nine months of the 2024-25 fiscal year, a new report reveals.

The development underscores a deepening crisis in public service delivery at the grassroots.

The county governments' budget implementation review report by Controller of Budget Margaret Nyakang’o shows the counties had only spent Sh56.87 billion by March 31, 2025.

The devolved units have an annual development budget of Sh220.20 billion. This implies that the counties had an absorption rate of just 26 per cent.

Ideally, at least Sh165.15 billion should have been utilised by the end of the third quarter.

Interestingly, as the counties shun development, they are splashing billions on personnel emoluments.

They spent Sh154.94 billion on staff emoluments, basically salaries and allowances.

The counties spent an aggregate of Sh229.62 billion, or 80 per cent of the total expenditure, on recurrent activities.

The recurrent expenditure comprised Sh154.94 billion (54 per cent) on compensation to employees and Sh74.68 billion (26 per cent) on operations and maintenance expenditure,” the report says.

Moreover, the county assemblies incurred Sh1.08 billion on MCAs’ sitting allowances against an approved annual 2024-25 budget allocation of Sh1.96 billion.

The expenditure report shows none of the 47 county governments utilised at least 50 per cent of their allocated development budgets during the period.

Shockingly, 36 counties spent less than 30 per cent of their development funds, highlighting widespread underinvestment in crucial infrastructure and services at the grassroots level.

“Analysis of development expenditure as a proportion of the approved annual development budget showed 36 county governments had an absorption rate of 30 per cent or less, and no county government had a development absorption rate exceeding 50 per cent,” the report states.

According to the report by Nyakang’o, counties performing worst include Taita Taveta under Governor Andrew Mwadime, Lamu led by Issa Timamy, Nakuru under Susan Kihika, and Kisumu led by Anyang’ Nyong’o.

These counties each spent less than 15 per cent of their development budgets.

Nakuru and Kisumu recorded the lowest development spending at just 10 per cent, followed by Lamu at 13 per cent and Taita Taveta at 14 per cent.

Other low performers include Embu (16 per cent), Nairobi (17 per cent), Nyeri (18 per cent), and Baringo (18 per cent), governed by Cecily Mbarire, Johnson Sakaja, Mutahi Kahiga and Benjamin Cheboi, respectively.

Kajiado and Kisii counties recorded a 19 per cent development budget absorption rate.

Other low spenders on development are West Pokot (23 per cent), Tharaka Nithi (22 per cent), Nyandarua (21 per cent), Nyamira (23 per cent), Meru (20 per cent) and Homa Bay (28 per cent).

Also in the list of shame are Bomet (27 per cent), Bungoma (29 per cent), Kilifi (25 per cent), Kitui (28 per cent), Machakos (28 per cent) and Mombasa (23 per cent).

The report urges counties to prioritise development spending, in line with Section 107(2)(b) of the Public Finance Management (PFM) Act of 2012, which requires at least 30 per cent of the budget to be directed towards development over the medium term.

On the brighter side, Busia county achieved a high absorption rate of its approved development budgets at 45 per cent.

Other big spenders on development are Garissa and Mandera with 41 per cent each, Narok at 39 per cent, while Siaya and Nandi counties attained 36 per cent.

Others are Nandi (36 per cent), Kericho (33 per cent), Marsabit (34 per cent), Kwale (32 per cent), Samburu (36 per cent), Siaya (36 per cent) and Makueni (30 per cent).

On payment of staff, Kisumu spent Sh4.18 billion out of the Sh5.77 billion spending over the period on personnel emolument.

Nakuru used Sh4.8 billion out of Sh8.5 billion spending for nine months on payment of staff.

Lamu spent Sh1.43 billion out of Sh2.22 billion to pay staff, while Taita Taveta spent Sh2.2 billion out of Sh3.5 billion it utilised during the period.

Embu spent Sh2.15 billion, with Nairobi splashing Sh12.83 billion to pay its more than 13,000 staff.

Other big spenders on staff emoluments are Kiambu (Sh6.38 billion), Kakamega (Sh4.98 billion), Bungoma (Sh4.70 billion), Kitui (Sh4.4 billion) and Machakos (Sh5.2 billion).

Also on the list of big spenders on staff include Narok (Sh4.5 Billion), Turkana (Sh3.9 Billion), Wajir (Sh3.2 billion), Mombasa (Sh3.9 billion), Meru (Sh3.8 billion), Nyeri (Sh3.3 billion) and Murang’a (Sh3.1 billion).

“A review of cumulative expenditures by economic classification revealed that Sh154.94 billion (54 per cent) was spent on compensation to employees, Sh74.68 billion,” the report says.