Controller of Budget: Counties spend more on salaries than projects
By William Muthama, September 20, 2025Counties are using the bulk of their resources on salaries and recurrent costs, leaving development projects with a much smaller share of funding.
This is according to the County Governments Budget Implementation Review Report for the financial year 2024/25, released by the Controller of Budget, Margaret Nyakang’o.
The report shows that out of Ksh 470.7 billion spent by the 47 counties during the reporting period, Ksh 346 billion, or 74 per cent, went to recurrent activities. Only Kshs 123.76 billion, representing 26 per cent, was directed to development.
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The review states, “Of the total recurrent expenditure, Ksh 220.64 billion was incurred for employee compensation, while Ksh126.34 billion (36 per cent) was incurred for operations and maintenance.”
This mirrors the pattern seen in the previous year, where recurrent absorption also stood at 91 per cent. County Assemblies alone spent Ksh 1.57 billion on MCAs’ sitting allowances, equivalent to 87 per cent of their approved budget.
Development still lagging
In contrast, development expenditure recorded an absorption rate of 57 per cent, down from 58 per cent in FY 2023/24.
Nandi County led with 90 per cent utilisation of its development budget, followed by Trans Nzoia at 77 per cent, Narok at 74 per cent, and Meru at 73 per cent.
At the bottom, Nairobi City and Kisumu counties each absorbed only 29 per cent of their approved development budgets.
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The report noted, “Development expenditures reached Kshs123.76 billion, demonstrating a 57 per cent absorption rate of the annual development budget of Kshs.218.99 billion.”
Pending bills continue to weigh heavily on devolution, despite a slight decline. As of Monday, June 30, 2025, the outstanding stock of pending bills stood at Ksh176.8 billion, down from Ksh181.9 billion the previous year. Nairobi alone accounted for Ksh 86.7 billion, followed by Kiambu at Ksh7.8 billion and Machakos at Ksh6.7 billion.