Billions meant for county development projects remained untouched by March, even as governments improved their spending compared with the previous financial year, highlighting the gap between approved plans and actual project implementation.
County governments absorbed Sh72 billion of the Sh234.3 billion development budget during the first nine months of the 2025/26 financial year, translating to an absorption rate of 30.8 per cent.
The figure was higher than the 25.6 per cent recorded during a similar period in the previous financial year. However, the pace of spending means counties had utilised only about a third of the money set aside for development projects with only three months left before the close of the financial year.
The National Treasury said the rise in spending pointed to better implementation of programmes and projects but warned that counties still needed to move faster to ensure allocated funds are put to use.
“The improvement reflects enhanced implementation of development programmes and projects, while the overall absorption rate remains relatively low suggesting the need to accelerate project execution during the remaining quarter of the financial year,” the Treasury said.
Nandi was the best performer, using 55.3 per cent of its development allocation, followed by Meru at 54.5 per cent and Wajir at 53.5 per cent. Marsabit also recorded more than half of its development budget in spending, with an absorption rate of 51 per cent.
The situation was different in Siaya, Lamu and Kajiado, which recorded the lowest rates. Siaya had used 13.1 per cent of its development budget, Lamu 11.2 per cent and Kajiado just nine per cent.
The figures show a wide gap in the pace at which counties are implementing capital projects, despite the legal requirement for county governments to dedicate at least 30 per cent of their budgets to development.
The slow pace of development spending also came as counties continued to prioritise recurrent expenditure. By the end of March, counties had spent Sh331.6 billion, representing 65.1 per cent of their approved recurrent budgets.
Nairobi led in recurrent budget absorption at 85.8 per cent, followed by Meru at 77.2 per cent and Machakos at 75.4 per cent. Kericho recorded 53.8 per cent, Uasin Gishu 53.7 per cent and Embu 52.3 per cent, placing them at the bottom of the recurrent spending list.
Recurrent expenditure covers salaries, allowances and the routine running of county governments, while development funds are directed towards long-term investments such as roads, health facilities, water projects and other infrastructure.
Treasury said counties must avoid allowing recurrent spending to crowd out investment in projects needed to support economic and social development.
“While sustained funding of recurrent expenditure is essential for government operations, counties should continue to balance recurrent spending with investment in development programmes to support long-term socio-economic growth,” said the Treasury.
The spending pattern has also drawn the attention of the Controller of Budget Margaret Nyakang’o, who last week raised concerns over the amount counties were directing towards salaries, allowances and operations.
Between July 2025 and March 2026, salaries and wages alone consumed Sh171.36 billion, with nearly two-thirds of county budgets going towards recurrent needs.
Nyakang’o urged counties to shift attention to projects that have already been started but remain incomplete, saying resources should be provided to ensure they are completed and put into use.
“County governments should prioritise stalled projects that can be completed and operationalised in subsequent budget cycles, allocate adequate resources for completion and resolve outstanding contractual issues in accordance with the law,” she said.
Baringo, Kajiado, Lamu, Siaya, Uasin Gishu, Tana River, Nakuru, Migori and Mombasa were among counties that spent less than 20 per cent of their annual budgets on development by March.
The slow implementation has contributed to a growing list of unfinished projects. A total of 237 stalled projects worth Sh13.66 billion were reported in 22 counties, while Sh5.11 billion had already been paid towards the projects.
Overall county spending stood at Sh331.65 billion during the first nine months, against actual revenue of Sh387.35 billion. This resulted in an overall budget absorption rate of 52 per cent, an improvement from 47.7 per cent recorded during the same period of the previous financial year.
Nairobi had the highest overall absorption rate at 72 per cent, followed by Meru at 68.4 per cent and Marsabit at 66.3 per cent.
At the lower end were Uasin Gishu at 36.5 per cent, Lamu at 38.4 per cent and Tana River at 39.2 per cent.
Treasury linked the slow execution of county budgets to procurement delays, slow implementation of projects, late release of funds, administrative inefficiencies and limited institutional capacity.