The Controller of Budget has revealed how some counties failed to utilise money allocated for development.
The report, which covers the first nine months of this financial year, shows that Nairobi, Bungoma, Mombasa and Taita Taveta had the lowest absorption rates.
Governor Johnson Sakaja’s administration spent only Sh1.25 billion on development out of the Sh11.35 billion budget (9 per cent), while Bungoma used Sh660 million of Sh4.48 billion (11.7 per cent), and Mombasa Sh369million against a budget of Sh4.4 billion (7.7 per cent).
Taita Taveta had set aside Sh2.19 billion for development but only spent Sh163 million (7 per cent).
“The total expenditure by county governments in the first nine months of Financial Year 2023/24 was Sh274.08 billion, representing an absorption rate of 48.5 per cent of the total annual county governments’ budget of Sh564.53 billion,” said Dr Margaret Nyakango in the report released yesterday.
Absorption rate for development budget, however, stood at 22.1 per cent.
A review of cumulative expenditure by economic classification showed that Sh146.53 billion (53.5 per cent) was spent on personnel emoluments, Sh82.65 billion (30.2 per cent) on operations and maintenance, and Sh44.89 billion (16.4 per cent) on development.
However, Narok, Bomet, Uasin Gishu, Mandera and Kitui counties achieved higher absorption rates at 54.4 per cent, 48.8 per cent, 41.5 per cent, 38 per cent and 36.6 per cent respectively.
“The county governments’ recurrent expenditure during the period amounted to Sh229.18 billion, which was an improvement of 9.2 per cent compared to a similar period in 2022/23 financial year,” said the report.
It showed that Sh146.53billion (63.9 per cent) was used for personnel emoluments, Sh82.65 billion (36.1 per cent) for operations and maintenance while MCAs pocketed Sh1.09 billion in sitting allowances.
The total expenditure by the county governments in the period amounted to Sh274.08 billion, including Sh229.18 billion (83.6 per cent) for recurrent activities and Sh44.89 billion (16.4 per cent) for development. The expenditure represented 48.5 per cent of the annual county governments’ budget and showed improvement compared to the same period in 2022/23 when the cumulative expenditure was Sh239.67billion.
Uasin Gishu expenditure was 59.9 per cent, Kitui (59.8 per cent), Narok (58.8 per cent), Bomet (58.6 per cent), Nandi (57.9 per cent), and Isiolo (57.5 per cent).
Counties that recorded the lowest aggregate absorption rates were Garissa at 43.5 per cent, Kisumu (43.1 per cent), Migori (42.9 per cent), Siaya (42.8 per cent), Bungoma (38.3 per cent), and Kisii (37.3 per cent).
“Based on the findings, the Controller of Budget now recommends that to improve budget implementation, county governments should ensure that 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,” said Nyakango.
The CoB recommended that CECs responsible for Finance should follow up and ensure compliance with the law by maintaining bank accounts at the Central Bank of Kenya for accountable spending.
