CoB warns of funding delays as marginalised regions face problems

Controller of Budget Margaret Nyakang’o has raised concerns over persistent delays in the release of funds meant to spur development in marginalised counties.

In her latest report on utilisation of Equalization Fund money, she warned that marginalised counties are being starved of billions of shillings meant to finance critical development projects.

The report reveals that more than Sh10 billion budgeted by counties under the second marginalisation policy remains undisbursed.

She said the delays are threatening to stall projects aimed at improving access to basic services in some of the country’s poorest regions.

The report shows that 10 counties are the worst affected by the delays—Turkana, West Pokot, Wajir, Narok, Samburu, Mandera, Kilifi, Garissa, Baringo and Marsabit.

This is despite having set aside substantial budgets for projects under the programme.

The counties also budgeted Sh24 million to support operations of the Equalisation Fund secretariat.

According to the breakdown, Turkana budgeted Sh1.14 billion, West Pokot Sh1 billion, Narok Sh771.6 million, Wajir Sh730.16 million, Mandera Sh753.4 million, Samburu Sh649.6 million, Garissa Sh630.9 million, Baringo Sh595 million, Kilifi Sh539.9 million, and Marsabit Sh469.6 million.

However, the fund’s account held only Sh338.3 million in cash available for use by the 34 counties currently covered under the programme as at September 30, 2025.

The amount represents a balance brought forward from the financial year ended June 30, 2025, and was meant for the implementation of projects under the first marginalisation policy.

The CoB report shows that Nyakang’o approved the withdrawal of just Sh48 million for development projects in Samburu county—only about seven per cent of the Sh649.68 million the county had budgeted for.

The approval formed part of three requests totalling Sh116.16 million sanctioned for withdrawal from the fund.

The remaining Sh68.15 million was approved to settle pending bills for development projects implemented under the Ministry of Water and Sanitation during the first policy phase.

The report casts fresh light on long-standing disbursement challenges, noting that the national government is yet to release at least Sh48 billion owed to the fund.

So far, only Sh12.4 billion has been released under the first phase of the programme, leaving many multi-billion-shilling projects in limbo.

The slow release of funds has undermined the implementation of projects meant to uplift historically marginalised areas, significantly hampering the attainment of the Fund’s objectives.

Since its inception in 2013, marginalised areas have been entitled to about Sh64 billion, but only Sh13.6 billion has been disbursed by the Exchequer, according to the CoB.

In 2024, National Treasury Cabinet Secretary John Mbadi pledged to clear the arrears, but the latest report shows the situation remains dire.

Elgeyo Marakwet Senator William Kisang’ warned that Parliament would move to summon the National Treasury and the Commission on Revenue Allocation over the delays.

“We will have to summon both the Treasury and CRA over this issue. Otherwise, 20 years will lapse and the beneficiary counties will have nothing to show and will continue being marginalised,” Kisang’ said.

Council of Governors chairperson Ahmed Abdullahi said several projects under the first policy in 14 counties have either stalled or are yet to be handed over due to massive pending bills.

The Wajir governor said some contractors have withheld completion of projects after failing to receive payments from the National Treasury.

In 2024, the national government committed to releasing at least Sh40 billion owed to marginalised counties under the Equalisation Fund following a resolution by the Intergovernmental Budget and Economic Council.

The resolution provided that the National Treasury would release the arrears in tranches of Sh10 billion annually.

“IBEC resolves that the National Treasury commits to disburse approximately Sh10 billion annually of the arrears owed to counties in terms of the Equalisation Fund beginning the financial year ending June 30, 2025,” the then Deputy President Rigathi Gachagua said.