Counties leave Sh107bn development cash idle
A report by the Controller of Budget reveals that Kenyan counties spent only 54 percent of their development budgets in the 2025-26 financial year. The data highlights a significant failure to translate public funds into infrastructure and economic growth, with most counties failing to meet absorption targets.
Why it matters
Low development budget absorption directly impacts the delivery of essential services and infrastructure projects intended to stimulate local economic growth.
Controller of Budget Margaret Nyakang'o/ FILE
County governments spent barely half of their development budgets in the 2025-26 financial year, exposing the scale of stalled development as salaries and recurrent expenditure continue to burn counties billions.
A new report by Controller of Budget Margaret Nyakang’o reveals that counties spent Sh126.69 billion on development, representing 54.21 per cent of the approved development budget of Sh233.69 billion.
The expenditure accounted for just 25.51 per cent of total county spending, highlighting the slow pace of investment in projects meant to improve livelihoods and stimulate economic growth.
The report paints a picture of counties struggling to translate billions of shillings in public resources into tangible development, with 42 counties recording development budget absorption rates below 75 per cent.
According to the report, Kisumu, Elgeyo Marakwet, Siaya, Narok, Laikipia, Nakuru and Kisii recorded the lowest absorption rates for development.
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