Only two counties Nairobi and Kisii have submitted approved budgets for the 2025/26 financial year, raising alarm over non-compliance with the Public Finance Management (PFM) Act, according to Controller of Budget Margaret Nyakang’o.
The PFM Act requires all 47 counties to submit their approved budgets by June 30 to facilitate Treasury funding. However, 13 counties including Kitui, Makueni, Machakos, Kakamega, Kirinyaga, Nyeri, West Pokot, Vihiga, Samburu, Kajiado, Laikipia, and Lamu are still under review. This delay renders them unable to access funds from the Exchequer, effectively paralyzing essential services.
Nyakang’o condemned the delays, terming them a clear violation of the law. “They should submit immediately after June 30. They are already breaking the law if the assembly does not pass the budget by that date,” she stated.
The budget boss attributed the holdups to a combination of poor coordination, political wrangles between governors and county assemblies, and, in some cases, deliberate sabotage. “In some cases, assemblies engage in what can only be described as political blackmail deliberately delaying, rewriting, or rejecting proposals to extract concessions from governors, assert power, or settle scores,” she added.
The consequences are dire: without approved budgets, counties cannot pay salaries, finance development projects, or settle debts to contractors. This leaves crucial public services such as healthcare, education, and infrastructure at a standstill.
In contrast, the national government has demonstrated improved compliance. The Ministry of Interior received approval for a Sh32.6 billion allocation, a significant turnaround after previous disputes with the Controller of Budget over overspending. The National Police Service secured Sh125 billion, while the executive arm was allocated Sh2.42 trillion.
Nyakang’o confirmed that national budget approvals were completed within a month of the new fiscal year, a stark contrast to the ongoing dysfunction at the county level.
Governors have attempted to shift the blame to Treasury delays, but Nyakang’o insists the root cause lies in counties’ own failure to meet legal deadlines.
With operations grinding to a halt, urgent reforms and political goodwill are needed to restore fiscal order at the devolved level.
