Kenyan counties are spending more money on salaries than on development projects. This is the latest finding from the Controller of Budget, Margaret Nyakang’o.
In the County Governments Budget Implementation Review Report for the financial year 2024/25, counties spent Ksh 470.7 billion. Out of this amount, Ksh 346 billion (74%) went to recurrent costs such as salaries and operations. Only Ksh 123.76 billion (26%) was directed to development.
Salaries Take the Largest Share
Employee compensation consumed Ksh 220.64 billion, while Ksh 126.34 billion went to operations and maintenance.
County Assemblies also spent heavily on allowances. They used Ksh 1.57 billion on MCAs’ sitting allowances, which was 87% of their approved budget.
Development Spending Still Weak
Development absorption remained low. It stood at 57%, a slight drop from 58% in 2023/24.
Some counties performed better than others. Nandi led with 90% utilisation of its development budget. It was followed by Trans Nzoia (77%), Narok (74%), and Meru (73%).
At the bottom, Nairobi City and Kisumu used only 29% of their development budgets.
The report noted: “Development expenditures reached Ksh 123.76 billion, demonstrating a 57 percent absorption rate of the annual development budget of Ksh 218.99 billion.”
Pending Bills Still a Burden
Counties are also struggling with unpaid bills. As of June 30, 2025, pending bills stood at Ksh 176.8 billion, down slightly from Ksh 181.9 billion the year before.
Nairobi alone owed Ksh 86.7 billion. Kiambu followed with Ksh 7.8 billion, while Machakos had Ksh 6.7 billion in pending bills.
The Big Picture
The report shows that most counties continue to prioritise salaries over development. This trend slows down projects meant to improve services for citizens and weakens the promise of devolution.
