The report on county spending by the Controller of Budget Margaret Nyakang’o shows that for every Sh4 sent to counties, Sh3 goes to payment of wages and salaries.
Only Sh1 goes to development.
The budget implementation review for the first nine months of the 2020-21 financial year shows that counties spend an average of Sh16 billion per month on employee emoluments, Sh8 billion on operations, and a paltry Sh5 billion on development.
This implies counties largely shun development as they incur less than 20 per cent of their income from development.
The revelations lift the lid on underdevelopment and public dissatisfaction with the performance of the county governments.
Besides high wage bills, dwindling own source revenue and huge pending bills are shrinking cash meant for development.
“During the reporting period, county governments generated Sh27.09 billion from their own source revenue, which was 46.1 per cent of the annual target of Sh58.78 billion,” the report states.
It reveals that 21 out of 47 counties recorded below 50 per cent performance.
They include Uasin Gishu, Machakos, Kilifi, Kisii, Marsabit, Nyamira, Elgeyo Marakwet, Makueni, Nandi, Wajir, Meru, Kisumu, Nairobi City and Bungoma.
Others are Kitui, Embu, Garissa, Kajiado, Murang’a, Trans Nzoia, and Busia.
Homa Bay, Migori, and Turkana had the highest performance of 92.4 per cent, 90.7 per cent, and 83.9 per cent, respectively,
“The OCOB recommends that the 21 counties that recorded under-performance of OSR in the period under review should develop strategies to ensure the target is achieved and control expenditure to avoid the occurrence of pending bills in the coming financial year,” Nyakang’o recommended.
The report shows the county government has accumulated Sh155.45 billion in pending bills.
“County governments are advised to settle the eligible pending bills as a first charge on the budget in line with Regulation 41 (2) of the Public Finance Management (County Governments) 2015,” the report states.
The Act states, "Debt service payments shall be a first charge on the County Revenue Fund and the Accounting Officer shall ensure this is done to the extent possible that the county government does not default on a debt obligation."
The report shows counties spent Sh139.57 billion on staff payments compared with Sh44.3 billion incurred on development.
The development expenditure dropped by 25.1 per cent compared to the same period last year when development expenditure was Sh48.46 billion.
“Analysis of development expenditure as a proportion of the approved annual development budget shows that only three counties attained an absorption rate above 50 percent,” the report shows.
They include Kitui at 53 per cent, Mombasa at 51.5 per cent, and Marsabit at 50.6 per cent.
Shockingly, 19 counties recorded a below 20 per cent absorption rate of development expenditure over the period.
They include Taita Taveta Machakos, Baringo, Nairobi City, Lamu, Narok, Wajir, Nyandarua, Kisumu, Kiambu and Turkana.
Others are West Pokot, Trans Nzoia, Siaya, Garissa Kilifi, Elgeyo Marakwet, Vihiga and Migori.
In contrast, the counties spent Sh212.18 on recurrent expenditures.
This comprised Sh139.57 billion or 54.3 per cent on personnel emoluments, Sh73.31 billion or 28.5 per cent on operations and maintenance and Sh.44.3 billion or 17.2 per cent on development.
-Edited by SKanyara
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