• Counties spent Sh39.6 on operations and maintenance, making 27 per cent, with only Sh22.7 billion spent on development.
• Despite expending the amounts, they collected Sh15.3 billion from own-source revenue streams, making 28 per cent of the Sh54.3 billion annual target.
Image: COURTESY
Governors are on the spot for breaching the law stating that payment of salaries should not exceed 35 per cent of county revenue.
The county bosses spent Sh80.9 billion on salaries – 56 per cent of the funds disbursed to the devolved units in the first six months of the financial year 2019-20.
Counties spent an additional Sh39.6 billion on operations and maintenance – which is 27 per cent, with only Sh22.7 billion spent on development at that time.
They withdrew Sh149.7 billion during that period, out of which Sh134.7 billion was for the Executive and Sh14.9 billion for assemblies.
Despite expending the amounts, they collected Sh15.3 billion from own-source revenue streams, making 28 per cent of the Sh54.3 billion annual target.
Narok, Samburu, and Isiolo collected the highest proportion of their revenue targets while Trans Nzoia, Kajiado, and Kericho collected the lowest.
Controller of Budget Margaret Nyakang’o, in her review for the first six months of the financial year, said the extreme expenditures are a challenge as they affect budget execution.
She raised concerns that counties’ own-revenue sources continue to perform poorly, adding that this implies planned activities may not be implemented.
Treasury’s delays in disbursement of county cash were also flagged amid revelations it had only paid out Sh117 billion against the approved Sh140 billion.
Nyakang’o said the issue of low development expenditure - a decline of about Sh2 billion compared with last year - needs to be reversed.
"To address these challenges, we recommend that counties should ensure expenditure on personnel emoluments is contained at sustainable levels.”
She said effective budget execution would mean counties have to comply with Regulation 25 of the Public Finance Management (County Governments) Regulations, 2015.
The law sets a limit for expenditure on wages and benefits for county officers at not more than 35 per cent of the revenue.
“The National Treasury should ensure that the equitable share of revenue raised nationally is released in line with the County Allocation of Revenue Act, 2019 Disbursement Schedule,” the Budget boss said.
Nairobi spent the highest amount on salaries at Sh5.9 billion followed by Kiambu at Sh3.7 billion; Machakos at Sh3.04 billion and Kakamega at Sh2.6 billion.
Their development spending was Sh625 million; Sh1.05 billion, Sh709 million, and Sh1.7 billion respectively.
Other top salary spenders are Kisii at Sh2.5 billion; Kitui (Sh2.5 billion), Kisumu (Sh2.4 billion), Nakuru (Sh2.4 billion), Garissa (Sh2.3 billion), Bungoma (Sh2.4 billion), Meru (Sh2.3 billion) and Turkana (Sh2 billion).
Only Kakamega, Kiambu, Kisii, Kwale, Mandera, and Murang'a spent more than Sh1 billion on development.
Some spent paltry amounts such as Sh30 million for Taita Taveta, Sh92 million in Vihiga; Sh95 million in Nyandarua and Sh140 million in Embu.
Samburu and Lamu counties did not spend anything on development for the first half of the financial year.
In this regard, Nyakang’o wants counties to ensure expenditure on development activities takes up over 30 per cent of their budgets.
“The office recommends that counties should prioritise implementation of development projects in order to improve the standard of living for their citizens,” the report reads.
The alarming spending spree was also flagged in county assemblies where MCAs' sitting allowances increased from Sh1.08 billion last year to Sh1.2 billion.
The budget review report reveals that Homa Bay, Meru, Kisii, Kisumu, and Kakamega county assemblies reported higher expenditure on sitting allowance.
MCAs in the counties earned more than the Salaries and Remuneration Commission-recommended monthly ceiling of Sh124,800.
For instance, Homa Bay MCAs earned an average of Sh204,000 monthly; Kakamega (Sh155,394 ); Meru (Sh127,000 ); Kisii (Sh136,000 ) and Kisumu (Sh133,000).
The Mombasa county assembly did not report any expenditure on MCAs’ sitting allowance for the review period.
The report also reveals that governors still spend hefty amounts on foreign trips despite austerity measures.
On this, Baringo expended Sh13.6 million, Bomet (Sh19 million), West Pokot (Sh23.2 million), Bungoma (Sh27 million) and Busia (Sh30 million).
Elgeyo Marakwet spent Sh15.3 million, Garissa (Sh20 million), Isiolo (Sh13.5 million), Kajiado (Sh24 million), Kericho (Sh36 million), Kiambu (Sh102 million) and Kilifi (Sh28 million).
Kirinyaga’s spending on foreign travel was Sh24.8 million, Kisii (Sh22.3 million), Kisumu (Sh20 million), Kitui (Sh26 million), Kwale (Sh10 million) and Laikipia (Sh32 million).
Alfred Mutua’s Machakos county spent Sh55 million on foreign trips; Mombasa (Sh24 million), Marsabit (Sh16 million), Meru (Sh11 million) and Nairobi (Sh49 million).
Nakuru spent Sh24 million, Nandi (Sh16 million), Narok (Sh18 million), Nyamira (Sh25 million), Nyandarua (Sh15 million), Tana River (Sh18 million) and Uasin Gishu’s Sh20 million.
Edited by R.Wamochie