For some county governments, development money moved into projects at a much faster pace than elsewhere, with 10 administrations using at least 70 per cent of their allocations in the 2025/26 financial year.
Kilifi set the pace after using 84.52 per cent of its development budget, followed by Wajir at 83.03 per cent and Mandera at 80 per cent, according to a review by the Controller of Budget.
The figures place the three counties at the top of the national list, while Meru, Trans Nzoia, Kirinyaga, Marsabit, Samburu, Kericho and Vihiga also recorded development absorption rates above 70 per cent.
The County Governments Implementation Review Report for the 2025/26 financial year shows that Meru used 79.04 per cent of its development allocation, while Trans Nzoia and Kirinyaga recorded 73.94 per cent and 73.89 per cent respectively.
Marsabit followed at 73.79 per cent, with Samburu recording 73.24 per cent. Kericho posted 71.70 per cent while Vihiga closed the top 10 at 70.16 per cent.
Combined, the 10 counties spent about Sh34 billion on development from a total Sh126.69 billion spent by all 47 counties during the financial year.
The money went largely towards infrastructure and other projects expected to provide long-term benefits to residents.
The national picture, however, was much lower, with counties absorbing just over half of their development budgets.
"In the 2025/26 financial year, all the 47 county governments spent Sh126.69 billion on development activities, representing an absorption rate of 54 per cent of the annual development budget of Sh233.69 billion," the report released on Friday says.
The total development budget for the 47 counties stood at Sh233.69 billion, meaning a substantial portion remained unspent by the end of the financial year.
County spending continued to favour recurrent activities, with Sh369.89 billion, or 89.23 per cent of total expenditure of Sh496.58 billion, going towards recurrent expenses.
Development spending, at Sh126.69 billion, accounted for 25.51 per cent of total expenditure.
Meru and Wajir were also among the counties with strong recurrent expenditure absorption, recording rates of 91.85 per cent and 90.23 per cent respectively.
Development expenditure increased by about Sh3 billion compared with the previous financial year.
In 2024/25, counties spent Sh346.98 billion on recurrent expenditure and Sh123.76 billion on development, with development accounting for 26 per cent of total spending.
Kilifi used Sh6.3 billion of its Sh7.4 billion development budget, while Wajir spent Sh4 billion from an allocation of Sh4.9 billion.
Mandera used Sh4.3 billion of its Sh5.4 billion development allocation, while Meru spent Sh4.2 billion.
Trans Nzoia spent Sh2.9 billion, Kirinyaga Sh2.4 billion, Marsabit Sh3.2 billion and Samburu Sh1.9 billion.
Kericho used Sh2.7 billion on development, while Vihiga spent Sh1.9 billion.
Counties that lagged behind
While the 10 counties recorded relatively high absorption, 13 others used less than half of their development budgets during the year.
Nakuru recorded an absorption rate of 48.97 per cent, followed by Kajiado at 48.05 per cent and Baringo at 47.76 per cent.
Mombasa posted 45.75 per cent, Laikipia 45.49 per cent and Kiambu 43.10 per cent. Kisii recorded 41.01 per cent while Uasin Gishu stood at 40.10 per cent.
Narok and Elgeyo Marakwet recorded 34.42 per cent and 34.17 per cent respectively.
The three lowest rates were recorded in Nairobi at 28.47 per cent, Siaya at 26.53 per cent and Kisumu at 25.92 per cent.
In Nairobi, Governor Johnson Sakaja's administration spent Sh3.8 billion from the Sh13.4 billion development budget.
Siaya, under Governor James Orengo, used Sh1.6 billion out of the Sh6 billion development allocation.
In Kisumu, the administration of Governor Anyang' Nyong'o spent Sh1.7 billion from the Sh6.7 billion set aside for development.
The report also pointed to the continued pressure created by recurrent expenditure, particularly salaries, wages and other operating costs.
County assemblies spent Sh1.61 billion on sitting allowances for Members of County Assemblies during the year.
Counties also spent Sh235.96 billion on personnel emoluments, covering salaries, wages and allowances, while Sh133.92 billion went to operations and maintenance.
At the same time, counties raised Sh96.08 billion through their own-source revenue during the financial year, representing 89.99 per cent of their combined annual target.
The amount was an increase from the Sh67.3 billion collected in 2024/25.
The 47 county governments also received Sh415 billion from the national government as equitable share during the period.
The Controller of Budget recommended that counties keep personnel costs at sustainable levels in the 2026/27 financial year and comply with Regulation 25(1)(b) of the Public Finance Management (County Governments) Regulations, 2015.
She further called for greater focus on development as counties work to improve their own-source revenue collection.
Wage bills, debts slow development
The report comes against a backdrop of growing financial pressure on county governments, with high wage bills, old debts and incomplete projects taking up resources that could otherwise be used for new development work.
High salary costs, which account for more than half of the annual budgets in some counties, have limited the ability of governors to begin major development projects.
Counties are also dealing with unpaid debts that have remained outstanding for more than five years, as well as projects inherited from previous administrations that have stalled.
The report identified 189 stalled projects across the counties with a combined value of Sh10.51 billion.
Four years ago, most of the 47 county governments established audit committees to examine pending bills before payments were made.
Despite that step, counties had reported outstanding bills amounting to Sh172.53 billion by June 30, 2026.
Nairobi had the largest amount of pending bills at Sh86.9 billion, accounting for 50.35 per cent of the total pending bills reported by counties in the 2025/26 financial year.
The Controller of Budget and Auditor-General have previously raised concerns over the amount counties spend on salaries.
The two public finance watchdogs have cited unauthorised payments, overstaffing and unsupported payments among issues contributing to waste in county wage bills.
"There is wastage in counties through bloated wage bills. Some counties use up to 70 per cent of cash to pay salaries and only 30 per cent is utilised on development," Ms Nyakang'o said in her latest report.
Data from the Auditor-General and Controller of Budget shows that most county governments have exceeded the recommended 35 per cent limit on salaries and wages expenditure for the past four years.
The Public Finance Management Act, 2015, sets the limit for county government spending on wages and benefits at 35 per cent of total revenue.