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A majority of counties spent a huge amount of their budgets on personnel emoluments, sitting allowances and on local and foreign travels thus hindering effective service delivery, the report shows.

Report from the Controller of Budget (CoB) also cites underperformance of own-source revenue collection, low expenditure on development budget, high level of pending bills, delay in submission of financial and non-financial reports to the Controller of Budget, and failure by Fund Administrators to submit quarterly financial statements to CoB as contributing factors towards effective implementation of the budgets by counties.

According to the report, counties spent Sh195.09 billion (45.5 per cent) on personal emoluments, Sh135.83 billion (31.8) on operations and maintenance, Sh330.92 billion on recurrent expenditure while only 97.97 billion (22.8 per cent) was spent on development expenditure.

Only five counties; Turkana, Tana River, Mandera, Kwale, and Samburu had personnel expenditure within the 35 per cent ceiling. “The CoB recommends that county governments should ensure expenditure on personnel emoluments is contained at sustainable levels and in compliance with Regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations, 2015,” the report.

This e even as the report shows that combined county governments expenditure amounted to Sh428.90 billion, representing an absorption rate of 83.3 per cent with recurrent expenditure being Sh 330.92 billion, (93.3 per cent) while development expenditure amounted to Sh97.98 billion, (61 per cent).

“County governments that attained the highest expenditure in absolute terms were: Nairobi at Sh33.24 billion, Turkana (Sh14.51 billion), and Kakamega (Sh14.13 billion). The lowest expenditure was recorded by Lamu, Elgeyo Marakwet and Tharaka Nithi at Sh3.51 billion, Sh5.16 billion and Sh5.20 billion,” the report.

Budget allocation

Further, report shows the devolved units spent Sh1.34 billion on MCA’s sitting allowances against an approved budget allocation of Sh1.68 billion.

Controller of Budget further states that the said expenditure translates to 79.9 per cent of the approved MCAs’ sitting allowance budget, a decline from Sh2.01 billion spent in 2021/22 Financial Year.

County Assemblies that had the highest average monthly sitting allowance per MCA were Busia at Sh101,533 million and Mombasa at Sh100,651 million. Others include Homabay with Sh93.9 million, Nyeri (Sh79,453 million), Samburu (Sh78,173) Kakamega (Sh71,777), Meru (68,498), Machakos (Sh66,479), Makueni (Sh66,478) and Tharaka Nithi (Sh62,124)

“During the reporting period, the County Assemblies spent Sh1.34 billion on MCA sitting allowances against an approved budget allocation of Sh1.68 billion,” report adds.

Expenditure on domestic travel amounted to Sh254.99 million, comprising Sh121.51 million by the Assembly and Sh133.48 million by the Executive. Expenditure on foreign travel amounted to Sh81.16 million and comprised Sh47.34 million by the Assembly and Sh33.83 million by Executive.

Counties that attained the highest expenditure in absolute terms were Nairobi City at Sh33.24 billion, Turkana (Sh14.51) and Kakamega at Sh14.13 billion while the lowest expenditure was recorded by Lamu, Elgeyo Marakwet and Tharaka Nithi at Sh3.51 billion, Sh5.16 billion and Sh5.20 billion.

Absorption rate

With regards to absorption of development funds, the report notes that an analysis of development expenditure as a proportion of the approved annual development budget shows only West Pokot, Mandera, Samburu, Kericho, Nandi and Homa Bay counties had the highest absorption rates above 80 per cent.

Five counties including Kisii, Kiambu, Nakuru, Busia and Machakos had below 50 per cent absorption rate for their development budgets.

With regards to own source revenue, devolved units generated a total of Sh37.81 billion, representing 65.9 per cent of the annual target of Sh57.37 billion.

Twenty-eight counties recorded below 75 per cent performance, namely Nyamira, Marsabit, Mandera, Murang’a, Wajir, Kisumu, Kericho, Kajiado, Nandi, Nairobi City, Vihiga, Homa Bay, Laikipia, Makueni, Kilifi, Tharaka-Nithi, Kisii, Busia, Uasin Gishu, Tana River, Kakamega, Migori, Taita-Taveta, Siaya, Meru, Nakuru, Kiambu, and Narok.

Only Lamu, Kirinyaga and Kitui outperformed their annual targets at 119.8 per cent, 112.3 and 110.6 respectively as compared to seven other counties including Nyamira, Marsabit, Mandera, Murang’a, Wajir, Kisumu and Kericho that recorded below 50 per cent.