Wednesday 19th February, 2025 07:20 AM|

National Treasury has put the county governments on the spot over extravagant spending on recurrent expenditures ignoring development activities during the financial year 2023/2024.

Counties of Nairobi, Kisii, Mombasa, Kisumu and Taita Taveta topped the list of counties that are least concerned with positively impacting their residents with development projects despite a 30 per cent provision on each allocation by the national government.

The National Treasury and Economic Planning Cabinet Secretary John Mbadi, through the latest budget policy Statement, highlighted that Nairobi, Kisii and Mombasa spent Sh10.8 billion, Sh14.4 billion and 17.1 billion representing 10.3, 13.7, 16.2, of the total revenue respectively.

Kisumu and Taita Taveta on the other hand, spent Sh18.4 billion and 19.6 billion, representing 17.5 and 18.6 per cent respectively,” he added.

In terms of the actual expenditures on wages and benefits as a percentage of the total actual revenue for the financial spent, the quoted counties splurged 58, 62.1,49.3, 51.2 and 54.8 per cent of the total revenue.

According to Section 107 (2) (b) of the Public Finance Management Act (PFMA) provides County Governments are required to spend a minimum of 30 per cent of their budget for development expenditures over the medium term but the only nine counties adhered to the stipulation, painting a picture of how government officials, country executives in particular, put their interests first, less focusing on benefiting their electorates.

From this analysis, Mbadi said it is evident that most counties allocate expenditures just for approval by the respective county assemblies in line with the legal requirement.

However, most counties do not adhere to this provision during budget execution. “Over the medium term, there are notable fluctuations in consistently meeting the 30 percent minimum expenditures on development,” Mbadi said.

This also implies that county development and service delivery may be negatively hampered as counties spend more on recurrent expenditures as opposed to development expenditures.

The factor is one of the factors that makes the majority of Kenyans lose trust in the government as the heavy taxation that results in the high cost of leaving does not benefit them much.

Economists such as Prof Samuel Nyandemo of University of Nairobi term these tendencies as having the wrong priorities.

Other counties that spent less on development during the medium term include, Kiambu, 19.4 per cent, Kakamega , 20.2 per cent, Vihiga , 21.2 per cent , Nyamira ,21.4 per cent, and Nandi , 21.5 per cent, all below the 30 per cent threshold. Also spending big on wages and benefits were Machakos which topped the list at 62.6 per cent, Embu at 57.1 per cent, Tharaka-Nithi at 54.5 per cent, Nyeri and Laikipia at 54 and 53.7 per cent respectively exceeding the 35 per cent limit by the PFM.

The total expenditure on wages and benefits during the financial year amounted to Sh209.8 billion, accounting for 47.6 per cent of the total revenue of Sh440.7 billion.

“Most County Governments are spending a larger portion of their revenue on wages than the recommended threshold. Three Counties namely: Tana River, Narok, and Kilifi were able to maintain their allocation to wages and salaries below the threshold, the statement reads in part.

“Relevant institutions, including the Controller of Budget, need to enhance compliance to this legal provision. Counties have not reported any borrowing to finance their development expenditure.”

At the same time, the counties of Marsabit, and Narok performed better on the development allocations, taking 38.6 and 34 per cent of the total revenue respectively with Homa Bay and Mandera tying at 33.3 per cent.