By James Murimi - Reporter
Kenya, December 16 2025 - Isiolo, Kitui, Machakos, Nyeri, and Uasin Gishu are leading counties in development budget utilization during the first quarter of Financial Year 2025/26, according to the latest County Budget Implementation Review Report (CBIRR).
Isiolo recorded the highest absorption rate at 21 percent, followed by Kitui at 18percent, while Machakos, Nyeri, and Uasin Gishu each posted 14 percent. Conversely, 20 counties reported zero absorption on development expenditure, with Turkana and Laikipia recording the lowest at 5 percent each, followed by Tana River, Nyandarua, and Kericho at 4 percent.
“The figures show a worrying trend of low absorption of development budgets, which affects the pace of service delivery and county development,” said Controller of Budget Margaret Nyakang’o in the report. “Counties must prioritize implementing development projects to ensure that allocated funds translate into tangible benefits for residents.”
The report indicates that county governments collectively spent Sh55.15 billion in the period under review, with Sh51.46 billion (93%) allocated to recurrent activities and only Sh3.69 billion (7%) to development projects. Overall, the absorption rate of 9% of the annual county budget is slightly lower than the 10% recorded during the same period last year.
Nyakang’o highlighted several challenges affecting budget implementation. “Delays in submitting County Appropriation Acts, Budget Books, and Governors’ Warrants have slowed down fund releases,” she said. “Underperformance in own-source revenue collection and overreliance on single funding streams also limit counties’ ability to execute their budgets effectively.”
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High trade payables remain a major concern, with Nairobi City reporting Sh82.89 billion in outstanding bills. Other obstacles include late enactment of the County Governments Additional Allocations Bill 2025, delayed disbursement of the Equitable Share of Revenue by the National Treasury, and lapsing of established fund regulations.
To address these issues, Nyakang’o recommended concrete steps for counties. Counties must ensure timely submission of budget documents, strengthen revenue collection, prioritize settling trade payables, and extend regulations on lapsing funds,” she said. “Compliance with reporting requirements is also critical to improving transparency and accountability.”
County Assemblies spent Sh289.61 million on MCAs’ sitting allowances, representing 14 percent of the approved Sh2.00 billion annual allocation – a slight decline from 15 percent in the same period last year. Of the first quarter recurrent expenditure of Sh51.47 billion, 85 percent went to employee compensation and 15 percent to operations and maintenance, while development spending remained low at Sh3.69 billion.
Nyakang’o warned that without urgent action, “counties risk slowing down development and failing to deliver on the promises made to their citizens.” She urged county governments to adopt the recommended measures to enhance budget absorption and accelerate development across the country.
