Counties across Kenya have been splurging on salaries and allowances while development projects struggle for funding, according to a new report by the Controller of Budget.
In the first six months of the 2025/26 financial year, county governments spent Sh160.1 billion on wages but allocated only Sh32.49 billion, or 17 percent of their total spending, to development programmes.
The report reveals a glaring imbalance between recurrent and development expenditure, showing that most counties continue to prioritize payroll over infrastructure and service delivery.
Of the total funds spent, Sh115.39 billion went to employee compensation, accounting for 60 percent of the total, while operations and maintenance consumed another Sh44.71 billion, equivalent to 23 percent.
Few counties managed to adhere to recommended spending ratios. Only Marsabit and Mandera allocated over 30 percent of their budgets to development projects, highlighting the continued disregard of the 35 percent cap on recurrent expenditure as set out in the Public Finance Management Act.
Development absorption remains low nationwide. The first six months’ expenditure represents just 14 percent of the annual Sh228.2 billion development budget, a shortfall that explains widespread delays in ongoing projects.
Seventeen counties spent 10 percent or less of their development budgets, including Laikipia, Nakuru, Mombasa, Migori, Kisii, Nyamira, West Pokot, Samburu, Nyeri, Kisumu, Vihiga, Nairobi, Kajiado, Elgeyo-Marakwet, Siaya, Tana River, and Lamu. Lamu and Tana River were the worst performers, each spending only three percent of their development funds—Sh41.6 million and Sh121 million respectively.
At the same time, recurrent spending in these counties remained high. Lamu committed Sh1.3 billion to recurrent costs, with Sh1 billion covering salaries, while Tana River spent Sh1.8 billion, including Sh1.24 billion on employee compensation. Kajiado, Elgeyo-Marakwet, Nairobi, and Siaya each used about six percent of their total budgets on development, while Vihiga managed seven percent. Mombasa, Laikipia, and Nakuru stood at 10 percent.
A handful of counties performed better on development spending. Isiolo led at 25 percent, Garissa followed at 24 percent, Kilifi and Bomet at 23 percent each, and Trans Nzoia and Wajir at 21 percent.
The report highlights ongoing challenges in county budget management, with many units ignoring legal spending limits and continuing to favor wages over essential development projects. This imbalance threatens the delivery of services and raises questions about how counties prioritize public resources under devolution.