Kenya's CoB Exposes Counties with Lowest Development in First 9 Months of 2024/2025 FY

• Controller of Budget Margaret Nyakang'o unveiled the county governments' budget implementation review report for the first nine months of the 2024/2025 FY
• Counties spent KSh 286.49 billion during the reporting period, with only 20% (KSh 56.87 billion) allocated to development projects
• Nairobi, Kisumu and Nakuru were among the devolved units with the lowest development absorption rates

Japhet Ruto, a journalist at TUKO.co.ke, brings over eight years of experience in finance, business, and technology, offering in-depth analysis of Kenyan and global economic trends.

Kenya's Controller of Budget (CoB), Margaret Nyakang'o, has released a new report showing the expenditure of counties in the first nine months of the 2024/2025 financial year (FY).

How much did Kenyan counties spend?

In her report, Nyakang'o revealed that the 47 devolved units spent a total of KSh 286.49 billion during the reporting period, of which KSh 229.62 billion (80%) went toward recurrent expenses.

The CoB noted that only 20% (KSh 56.87 billion) was allocated to development projects.

"The expenditure reflected an absorption rate of 48% of the annual county governments’ budget, a slight decline compared to an absorption rate of 49% realised in a similar period of FY 2023/24," she disclosed.

Which counties spent the least on development?

The county governments' development expenditures for the first nine months of FY 2024/2025 totalled KSh 56.87 billion.

This translates to a 26% absorption rate and an improvement from the KSh 44.89 billion spent during a similar period in the 2023/2024 FY.

Nyakang'o disclosed that Kenya's three cities (Nairobi, Kisumu and Nakuru) were among the devolved units with the lowest development absorption rates.

"Counties that had the lowest absorption rates of their respective approved development budgets included Nairobi at 17%, Embu at 16%, Taita Taveta at 14%, Lamu at 13%, and Nakuru and Kisumu each at 10%," she revealed.

On the other hand, Busia achieved a high absorption rate of its approved development budget at 45%, followed by Garissa and Mandera at 41% each.

Narok attained 39%, while Siaya and Nandi counties attained 36 per cent each.

Which counties had the highest budget absorption rates?

The counties of Narok (67%), Nandi (58%), Kitui (57%), Machakos (55%), Busia (55%), and Nyeri (54%), respectively, had the highest total absorption rates of their respective authorised annual county government budgets.

At 40% and 39%, respectively, Garissa and Kilifi counties had the lowest aggregate absorption rates.

Nakuru had the lowest absorption rate, at 36%, while Kisumu, Kisii, and Embu all recorded 38%.

Meanwhile, all the 47 counties reported KSh 172.51 billion in outstanding pending bills, of which KSh 32.63 billion was for development activities and KSh 139.88 billion was for recurring expenditures.

Which counties spent zero on development?

An earlier report by TUKO.co.ke showed that 10 counties, including Nairobi, Lamu, and Kajiado, spent zero on development programmes in the first quarter of the 2024/2025 FY.

The annual development budget was absorbed at a rate of 3%, with just KSh 6.71 billion of the total spending going toward development.

The highest development absorption rates were reported in Kirinyaga and Busia counties (12%), followed by Siaya and Garissa (10%).

Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.

Source: TUKO.co.ke