Nairobi Governor Johnson Sakaja is among 10 governors whose counties did not spend a single cent on the development budget in the three months ending September, a new report shows.

The other counties that have spent zero development budgets include Baringo (Benjamin Cheboi), Elgeyo-Marakwet (Wisley Rotich), Kajiado (Joseph Ole Lenku), Kisii (Simba Arati), Lamu (Issa Timamy), Nyandarua (Moses Kiarie Badilisha), Tana River county (Dhadho Godhana), Uasin Gishu (Jonathan Chelilim) and West Pokot (Simon Kachapin).

This is the second time Nairobi and West Pokot counties have failed to spend their development budgets.
The first quarter County Governments’ Budget Implementation Review Report (CGBIRR) for FY 2024/25, covering July to September 2024 released by the office of the Controller of Budget indicates that the county governments’ development expenditure amounted to Sh6.71 billion, representing an absorption rate of 3 per cent of the annual development budget of Sh205.33 billion.

All 47 counties were allocated Sh576.73 billion, comprising Sh205.33 billion (36 per cent) allocated to development expenditures and Sh371.4 billion (64 per cent) to recurrent expenditures.

Reads the report: “This represented a decline from the 4 per cent absorption rate realised in a similar FY 2023/24 period when the County Governments’ cumulative expenditure on development activities was Sh6.92 billion.”

Development budgets
The report however ranks Governor Ann Waiguru’s Kirinyaga and Paul Otuoma’s Busia as counties that achieved higher absorption rates of their respective approved development budgets, each attaining 12 per cent, followed by James Orengo’s Siaya county and Nathif Jama Garissa county each attaining 10 per cent.

On recurrent expenditure, the report shows that counties spent an aggregate of Sh48.96 billion, or 88 per cent of the total expenditure.

This expenditure represented 13 per cent of the annual County Governments’ budget for recurrent activities and was a decline from 18 per cent recorded in FY 2023/24 when expenditure stood at Sh60.56 billion.

The recurrent expenditure comprised Sh38.69 billion (79 per cent) on Compensation to Employees and Sh10.28 billion (21 per cent) on Operations and Maintenance (O&M) expenditure.

Reads the report: “During the reporting period, the County government’s development expenditure amounted to Sh6.71 billion, translating to an absorption rate of 3 percent of the annual development budget of Sh205.33 billion. This represented a decline from the 4 per cent absorption rate realised in a similar FY 2023/24 period when the County Governments’ cumulative expenditure on development activities was Sh6.92 billion.”

The move infers that citizens of the affected counties were deprived of development projects in the first three months as the bosses only focused on paying allowances and dealing with operational expenses.

For instance, in the period under review, the Nairobi City County Executive spent Sh2.57 billion on employee compensation and Sh142.49 million on operations and maintenance.

Reads the report: “The County spent Sh2.89 billion on development and recurrent programmes in the reporting period. This expenditure represented 101 per cent of the total funds released by the CoB and was entirely for recurrent programmes, representing 10 per cent of the annual recurrent expenditure budget. There was no expenditure on the development budget during the period.”

In Baringo county, the report shows that the county spent Sh599.03 million on recurrent programmes in the reporting period representing 91 per cent of the total funds released by the CoB.

Reads the report: “During the first quarter of FY 2024/25, the County Executive spent Sh448.93 billion on employee compensation and Kshs.63.69 million on operations and maintenance and did not report any expenditure on development activities.”

In Elgeyo Marakwet, the county spent Sh744.23 million on recurrent programmes in the reporting period representing 101 percent of the total funds released by the CoB.

Reads the report: “The County spent Sh744.23 million on recurrent programmes in the reporting period. This expenditure represented 101 percent of the total funds released by the CoB and comprised Sh744.23 million on recurrent programmes. Expenditure on development programmes represented an absorption rate of 0 per cent, while recurrent expenditures represented 19 per cent of the annual recurrent expenditure budget.”

In Kajiado county, governor Lenku spent Sh1.18 billion representing 99 per cent of the total funds released by the CoB entirely on recurrent programmes.

The report says that during the first quarter of FY 2024/25, the County Executive spent Sh844.44 billion on employee compensation, Sh213.24 million on operations and maintenance, and no expenditure on development activities.

Total funds released
In Kisii county, Arati spent Sh1.03 billion on recurrent programmes representing 100 per cent of the total funds released by the CoB and 11.4 per cent of the annual recurrent expenditure budget while in Lamu, Timamy spent Sh379.38 million on recurrent programs representing 95.4 per cent of the total funds released by the CoB and 12.8 per cent of the annual recurrent expenditure budget.

In Nyandarua, Badilisha spent Sh377.21 million on recurrent programmes in representing 97 per cent of the total funds released by the CoB while in Tana River, Godhana spent Sh403.29 billion on development and recurrent programmes representing 60 per cent of the total funds released by the CoB and was incurred in recurrent programmes.

In Uasin Gishu, the county government spent Sh1.08 billion on recurrent programmes in the reporting period, which represented 99.9 per cent of the total funds released by the CoB while in West Pokot, the county government spent Sh572.38 million on recurrent programmes representing 100 per cent of the total funds released, which were for recurrent programmes.

On pending bills amounts to Sh168.62 billion, comprising Sh129.15 billion for recurrent activities and Sh34.47 billion for development activities.

The counties with significant pending bills included Nairobi City at Sh121.06 billion, Garissa at Sh6.07 billion, Kiambu at Sh5.90 billion, Turkana at Sh4.78 billion, Machakos at Sh 4.42 billion, and Mombasa at Sh 3.93 billion.

This is contrary to Regulation 41(2) of the Public Finance Management (County Governments) Regulations, 2015, stipulates that “debt service payments shall be a first charge on the County Revenue Fund, and the Accounting Officer shall ensure this is done to the extent possible to prevent the County Government from defaulting on its debt obligations.”