By James Murimi - Reporter
Kenya, June 30 2026 - Nyeri County has unveiled a Sh8.694 billion budget for the 2026/2027 financial year, with a dominant share of the spending plan allocated to recurrent expenditure, underscoring the fiscal pressure facing devolved units amid rising operational costs.
Governor Dr Mutahi Kahiga on Tuesday assented to the Nyeri Appropriation Bill, 2026, authorising implementation of the budget that will finance both county operations and development programmes over the year.
The spending framework shows Sh6.02 billion, or 69 per cent, will go towards recurrent expenditure — covering salaries, administrative operations and day-to-day running of the county government. Development expenditure has been allocated Sh2.67 billion, representing 31 per cent of the total budget.
The structure highlights the persistent imbalance in county fiscal frameworks, where wage bills and operational costs continue to consume the bulk of revenue, leaving limited fiscal space for capital investment.
“I have today assented to the Nyeri Appropriation Bill, 2026 into law, paving the way for implementation of the Sh8.694 billion budget,” Governor Kahiga said.
He was accompanied by Deputy Governor David Kinaniri, Finance CECM Robert Thuo, Nyeri County Assembly Majority Leader James Kanyugo, and Budget Committee Chairperson Erastus Muriuki, among other senior officials.
Capital spending targets infrastructure, jobs and service delivery
Despite the heavy recurrent allocation, the Sh2.67 billion development budget has been directed toward infrastructure expansion and economic stimulation projects across key sectors.
Health has been allocated Sh305 million, including Sh100 million for drugs and medical supplies, Sh56 million for the Karatina Accident and Emergency block, and Sh50 million for the Mukurwe-ini outpatient department upgrade.
Roads and energy infrastructure take Sh471 million, with Sh162 million allocated to countywide access roads and Sh90 million for street lighting projects expected to support night-time economic activity and urban security.
Education receives Sh434 million, anchored on Sh352 million under the KDSP II Investment Grant, alongside funding for technical institutions and ECDE infrastructure upgrades aimed at strengthening human capital development.
Water and climate resilience programmes have been allocated Sh288 million under the FLLoCA framework and related initiatives, targeting climate adaptation projects, dam lining and resilience financing.
Nyeri Municipality will receive Sh259 million under the Kenya Urban Support Programme (KUSP) for urban infrastructure and municipal roads, reinforcing ongoing urban expansion and service delivery upgrades.
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The agriculture sector has been allocated Sh254 million, including funding under the National Agricultural Value Chain Development Project (NAVCDP) and livestock breeding stock improvement programmes aimed at boosting productivity and agribusiness output.
Trade and industrialisation has been allocated Sh177 million, with Sh150 million directed toward the development of an industrial park — a flagship investment expected to anchor manufacturing growth and job creation in the county.
Youth, gender and sports programmes will receive Sh182 million, including enterprise support for youth, women and persons with disabilities, as well as funding for emergency response equipment including a fire engine.
Fiscal pressure and budget efficiency in focus
The budget underscores the ongoing challenge for county governments in balancing rising recurrent obligations with development financing needs.
Officials noted that each of Nyeri’s 30 wards will receive at least Sh15 million for development, a move aimed at improving equitable distribution of resources and boosting grassroots economic activity.
Governor Kahiga said timely approval of the budget was critical to improving absorption rates and ensuring faster rollout of development projects.
He also praised the County Assembly, led by Speaker Gichuhi Mwangi, for supporting the budget process, saying collaboration between the executive and legislature was key to strengthening fiscal discipline and execution.
Those present included MCAs David Kabatha (Iria-ini, Mathira), Julius Kamiri (Konyu), Charity Wangui (Gakawa), nominated MCAs Agnes Wachira and Janet Kamiru, County Secretary Edward Mwangi, Chief of Staff Paul Wambugu, and Legal Advisor Beatrice Maina.
The budget now sets the stage for county spending over the next financial year, with focus shifting to implementation and efficiency in the use of public funds.