Kenya’s Controller of Budget has revealed that a significant number of counties failed to spend any money on development projects in the first quarter of the 2025/26 financial year, underscoring persistent concerns over how devolved funds are being utilised.
In the County Governments’ Budget Implementation Review Report covering July to September 2025, Controller of Budget Margaret Nyakang’o examined how county administrations allocated resources between development and recurrent expenditure during the period.
The report shows that counties collectively spent just KSh 3.69 billion on development, representing a mere two per cent absorption of their combined annual development budget.
County governments had approved total budgets of KSh 603.72 billion for the 2025/26 financial year. Of this, KSh 217.80 billion, or 36 per cent, was earmarked for development projects, while KSh 385.92 billion, equivalent to 64 per cent, was set aside for recurrent spending.
Despite this allocation, Nyakang’o noted that development spending in the first quarter remained extremely low. She attributed the weak absorption largely to a preference for recurrent costs, particularly salaries and allowances, at the expense of capital projects.
Among the high-profile county leaders named for recording zero development expenditure were Trans Nzoia Governor George Natembeya, Kisumu’s Anyang’ Nyong’o, Uasin Gishu’s Jonathan Bii, Kisii’s Simba Arati, Siaya’s James Orengo and Mombasa’s Abdullswamad Sheriff Nassir.
Other counties that failed to spend on development during the quarter included Kericho, Tana River, Turkana, Bomet, Baringo, Kilifi, Kwale, Kajiado, Vihiga, Busia, West Pokot, Bungoma, Wajir and Laikipia.
While development spending stalled, recurrent expenditure surged. All 47 counties spent more than KSh 51 billion on recurrent items during the three-month period. Of this amount, KSh 43.7 billion went to employee compensation, while KSh 7.76 billion was used for operations and maintenance.
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Nyakang’o noted that total recurrent expenditure of KSh 51.47 billion accounted for 13 per cent of the counties’ annual recurrent budgets, a level consistent with spending patterns recorded over a similar period in the previous financial year.
County assemblies also incurred KSh 289.61 million on members of county assembly sitting allowances, equivalent to 14 per cent of the KSh 2 billion budgeted for this item.
The report further highlighted rising short-term debt among some devolved units, with Nairobi recording the highest at KSh 82.89 billion, followed by Kilifi at KSh 9.70 billion, Kiambu at KSh 6.47 billion and Machakos at KSh 5.80 billion.
Overall, the findings paint a picture of counties prioritising day-to-day expenses over development projects, raising fresh questions about the effectiveness of devolution in driving tangible economic transformation at the local level.
