Nandi tops counties in development spending as most lag behind, budget report reveals

Nandi County has emerged as the top performer in development spending, standing out as one of only four counties to surpass the 50 per cent development budget absorption mark.

The revelations are contained in the latest County Governments Budget Implementation Review Report by Controller of Budget, Margaret Nyakang'o.

The report, which reviews implementation of county budgets for the first nine months of the 2025-26 financial year, paints a mixed picture of devolution, with most counties struggling to translate approved budgets into development projects.

According to the report, Governor Stephen Sang-led county recorded a development absorption rate of 55 per cent, the highest in the country, after spending Sh2.27 billion of its Sh4.11 billion development allocation.

It was followed closely by Meru and Wajir, which each posted a 54 per cent absorption rate, while Marsabit achieved 51 per cent.

The report shows county governments collectively spent Sh72.07 billion on development projects during the review period, representing just 31 per cent of the total annual development budget of Sh234.33 billion.

The findings underscore persistent challenges in implementing development programmes despite counties receiving billions of shillings annually to improve infrastructure and public services.

According to the report, 43 of the country's 47 counties failed to attain a 50 per cent development absorption rate, raising concerns over delays in project implementation and service delivery.

At the bottom of the ranking was Kajiado, which managed to spend only nine per cent of its development budget. Lamu followed with 11 per cent, while Siaya and Uasin Gishu each recorded 13 per cent.

Others included Tana River and Baringo, both at 17 per cent, Nakuru at 19 per cent, and Mombasa and Migori at 20 per cent each.

The report further reveals that 19 counties posted development absorption rates of 25 per cent or below, while another 24 counties recorded rates ranging between 26 and 50 per cent.

Despite the poor uptake in development spending, counties generally performed better in recurrent expenditure, spending Sh259.57 billion, equivalent to 65 per cent of the recurrent budget.

Overall, counties spent Sh331.65 billion out of a combined annual budget of Sh633.3 billion, translating to an overall absorption rate of 52 per cent.

Nairobi County recorded the highest overall budget absorption rate at 72 per cent, followed by Meru at 68 per cent, Marsabit at 66 per cent and Nandi at 63 per cent.

The Controller of Budget attributed the low development expenditure to slow implementation of projects in many devolved units and urged county governments to fast-track spending during the remaining months of the financial year.

"In the first nine months of FY 2025-26, county governments spent Sh72.07 billion on development activities, equivalent to 31 per cent of the annual development budget," the report says.

Nyakang'o warned that failure to accelerate implementation could affect delivery of critical infrastructure and other public investments envisioned in county budgets.

She reminded counties that the Public Finance Management Act requires them to allocate at least 30 per cent of their budgets to development expenditure over the medium term, with actual spending expected to reflect that commitment.

"County governments should accelerate implementation and spending under development budgets during the remaining months of FY 2025-26 to improve absorption and support delivery of planned projects," the Controller of Budget recommends.