A growing wage bill and mounting debts are eating into county budgets, leaving hundreds of development projects unfinished even after billions of shillings have already been spent, a new report by the Controller of Budget has revealed.
The latest County Governments Budget Implementation Review Report shows that county administrations spent Sh259.57 billion on recurrent expenditure during the first nine months of the 2025/26 financial year, accounting for 65 per cent of total spending. Out of this amount, Sh171.36 billion went to salaries and wages.
Development spending, however, remained low. Counties utilised only Sh72 billion of their planned Sh234.33 billion development allocation by March 31, 2026, translating to an absorption rate of 31 per cent.
The report paints a picture of delayed projects, rising pending bills and financial management challenges that continue to slow service delivery across the devolved units.
Controller of Budget Margaret Nyakang’o urged counties to focus on completing projects that have remained unfinished instead of allowing them to drag on for years.
“County governments should prioritise stalled projects that can be completed and operationalised in subsequent budget cycles, allocate adequate resources for completion and resolve outstanding contractual issues in accordance with the law,” she said.
Nine counties were singled out for spending less than a fifth of their annual budgets on development. They include Baringo, Kajiado, Lamu, Siaya, Uasin Gishu, Tana River, Nakuru, Migori and Mombasa.
Baringo emerged as one of the counties struggling with stalled projects. According to the report, contractors walked away from the construction of 11 pre-primary school classrooms after the county failed to settle outstanding payments estimated at Sh6 million.
The affected classroom projects are located in Kaplop, Kaburwo, Chesakam, Chemayes, Noswo, Borokwo, Sau, Mwal, Ketukoi and Toplen.
Even as some projects remained incomplete, the county spent Sh9 million on airtime, Sh510,000 on a pit latrine in Maji Mazuri and Sh500,000 on two boda boda sheds.
The report shows that Baringo spent Sh3.45 billion on recurrent expenditure compared to Sh640.4 million on development activities. The county also reported 24 stalled projects and pending bills amounting to Sh1.19 billion.
Among the projects awaiting completion are Kipsaraman Museum and Mogotio Information Centre, which require an additional Sh47.6 million. Construction of Kabarnet Stadium has also slowed down, with only Sh47 million having been paid from a contract valued at Sh1.16 billion.
Across the country, 22 counties reported a total of 237 stalled projects valued at Sh13.66 billion. Of that amount, contractors had already received Sh5.11 billion.
The report further reveals that counties are carrying pending bills amounting to Sh156.84 billion, with Sh40.34 billion linked to development projects.
Nairobi City County recorded the highest trade payables at Sh81.79 billion. Other counties with large outstanding obligations include Kilifi, Kiambu, Machakos and Turkana.
Dr Nyakang’o noted that county governments registered mixed performance in implementing their budgets, pointing to project delays, weak financial controls and poor coordination among institutions.
She also raised concern over the failure by some counties to honour agreed payment plans for outstanding debts as required under public finance regulations, a situation that continues to pile pressure on contractors and suppliers.