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A damning new report by the Controller of Budget (CoB) has exposed a troubling disparity in spending priorities among county governments, revealing chronic underinvestment in development projects critical for the nation’s progress.
According to the report, close to Ksh20 billion allocated to four counties for development is gathering dust just days to the end of the financial year. The report shows a very low uptake of development funds in counties with a spotlight on Nairobi, Bungoma, Mombasa, and Taita Taveta Counties.
The report released on Tuesday, June 4, gives weight to the claims by Members of Parliament that county governments barely manage to prudently spend their financial allocations every year. The allegations were levelled during the heated standoff over the allocation of equitable shares to counties for the next financial year. MPs had rejected a proposed increase of Ksh28 billion but settled on an equitable share of  Ksh400.1 billion up from Ksh391 billion in this financial year.
Bungoma, Nairobi, Mombasa, and Taita Taveta are revealed to have shockingly low absorption rates in their development budgets, indicating a significant failure in utilising allocated funds for development projects.
According to the latest County Governments Implementation Review Reports for the last nine months of the 2023-2024 financial year, Bungoma recorded a meagre 11.7 per cent expenditure on development, while Nairobi County stood at a mere 9 per cent. Mombasa and Taita Taveta followed suit with 7.7 per cent and 7 per cent respectively.In concrete figures, the report unveils stark numbers. Nairobi spent only Ksh1.25 billion out of Ksh11.35 billion allocated for development, while Bungoma utilised a paltry Ksh660 million against a budget of Ksh4.48 billion. Similarly, Mombasa managed to spend just Ksh369 million out of Ksh4.4 billion, and Taita Taveta a mere Ksh163 million against a budget of Ksh2.19 billion.
The total amount of allocation for development to the counties was set at Ksh22.42 billion, with only Ksh2.44 billion spent.
These revelations emerge amidst the broader context of county governments’ expenditures. While the total expenditure by county governments in the first nine months of FY 2023/24 reached a staggering Ksh274.08 billion, indicating an absorption rate of 48.5 per cent of the total annual budget, the development expenditure paints a grim picture.
Development expenditure for the County Governments during this period amounted to Ksh44.89 billion, representing a dismal absorption rate of 22.1 per cent, the report notes.
However, amidst these dismal statistics, some countries stand out for better performance. Narok, Bomet, Uasin Gishu, Mandera, and Kitui are noted to have achieved higher absorption rates of their respective development budgets, offering a glimmer of hope.
CoB Margaret Nyakang’o’s report points to the need for stringent measures to improve budget implementation. She recommends containment of expenditure on personnel emoluments, compliance with financial regulations, and enhancing revenue collection capacity as key areas for improvement.
Moreover, Nyakang’o calls for proper internal control mechanisms to ensure expenditures align with approved budgets and work plans. Settlement of pending bills is also highlighted as a priority, urging County Governments to address these as a first charge on the budget in line with the law.
During the reporting period, county governments managed to generate Ksh41.40 billion from their own source revenue (OSR), representing a significant improvement from the previous financial year. However, challenges persist, with several counties failing to meet revenue targets.
