Seventeen counties, including Nairobi, Mombasa, and Lamu, spent barely a fraction of their development budgets in the first half of the 2025/26 financial year, leaving billions of shillings unutilised and slowing down projects aimed at improving infrastructure and public services.
The latest report from the Controller of Budget reveals stark differences in how counties are managing their development programmes. Only Marsabit and Mandera surpassed the 30 per cent absorption mark, highlighting uneven progress across the country.
Controller of Budget Margaret Nyakang’o noted that county governments collectively spent Sh32.49 billion on development, which represents just 14 per cent of the total annual development allocation of Sh228.20 billion.
According to the report, Marsabit led the pack with a 32 per cent absorption rate, while Mandera followed closely at 30 per cent.
Conversely, 17 counties recorded utilisation rates of 10 per cent or lower. These are Laikipia, Nakuru, Mombasa, Migori, Kisii, Nyamira, West Pokot, Samburu, Nyeri, Kisumu, Vihiga, Nairobi, Kajiado, Elgeyo-Marakwet, Siaya, Tana River, and Lamu.
Nyakang’o expressed concern over the low uptake, pointing out that some counties spent as little as three per cent of their allocated funds.
“The low absorption rate is starving devolved units of critical projects,” Nyakang’o said in the half-year budget report, citing governors’ failure to prioritise development expenditure.
The report shows that during the first six months, counties were allocated Sh156 billion for recurrent expenses and Sh28.5 billion for development, but only Sh32.5 billion was spent on development projects. This raises questions about stalled initiatives across the country.
Tana River and Lamu recorded the lowest absorption rates at three per cent, while Vihiga used seven per cent of its funds. Other counties with utilisation below 10 per cent included Nairobi, Siaya, Nyeri, and West Pokot.
Overall, 17 counties posted absorption rates of 10 per cent or lower, 28 counties spent between 11 and 29 per cent, and only two counties went beyond 30 per cent during the period.
The report further shows that Mandera, Narok, and Meru each spent over Sh1 billion on development. Nairobi used Sh859 million, Kiambu and Kilifi each spent more than Sh2 billion, and Kisii spent Sh817 million.
Despite the slow uptake, Nyakang’o urged the National Treasury to release funds on time to enable counties to implement their development projects effectively.