Only four counties complied with the law on not overspending on employee payments and recurrent expenditure.
This is documented in last year's financial report by the Controller of Budget Margaret Nyakang’o.
Regulation 25 (1) (b) of the Public Finance Management 2015 sets a limit of the county government’s expenditure on wages and benefits at 35 per cent of the county’s total revenue.
However, only Mandera, Tana River, Isiolo and Kwale observed the cap at 28.4 per cent, 29.6 per cent, 33.1 per cent and 34.9 per cent, respectively, the report said.
The report shows counties spent Sh190.11 billion on personnel emoluments, which accounted for 47.4 per cent of the total expenditure of Sh400.96 billion.
The figure is also equivalent of 43.6 per cent of the realised revenue of Sh436.46 billion in the financial year 2021-22, the report said.
The expenditure is a rise from Sh176.03 billion reported by the county administrations in the previous financial year.
Overall, the 47 counties incurred Sh302.49 billion on recurrent expenditure, representing 88.4 per cent of the annual recurrent budget.
On development expenditure, the counties spent a paltry Sh98.47 billion, and only 50.9 per cent of the amount got absorbed.
The absorption rate is a decline from 62.1 per cent attained in the previous year, when total development expenditure was Sh116.07 billion.
Moreover, the report says a total of 17 counties recorded an absorption rate of less than 50 per cent of development expenditure.
They are Garissa (29.3 per cent), Nairobi (29.3 per cent), Kisumu (31.5 per cent), Machakos (32.6 per cent), Taita Taveta (33 per cent), Narok (33.4 per cent), Vihiga (33.5 per cent), Busia (33.8 per cent), Kilifi (35.4 per cent) and Mombasa (37 per cent).
Others are Turkana (39.5 per cent), Nyandarua (39.8 per cent), Murang’a (41.7 per cent), Baringo (43.9 per cent), Bungoma (44 per cent), Kisii (46.1 per cent), and Laikipia (47.6 per cent).
The report has also faulted the counties for not meeting the revenue collection target, overspending on MCA allowances, spending the revenue they collect at source and also accumulating high pending bills.
County governments are also still using manual systems to run salary and wage payrolls, opening up public funds for abuse, Nyakang’o said.
The report singled out 10 counties for processing Sh15.63 billion in wages manually, opening up public money for abuse.
The 10 counties include Bomet for spending Sh1.24 billion, Nakuru Sh1.06 billion, Garissa Sh1.03 billion, Vihiga Sh934.89 million and Siaya Sh792.55 million.
Others are Kiambu Sh776.11 million, Homa Bay Sh694.33 million, Laikipia Sh646.68 million, Kisumu Sh515.30 million and Murang’a Sh504.12 million.
(Edited by Bilha Makokha)
