Nakuru County had an approved supplementary budget of Sh25.65 billion for the 2025/26 financial year, with Sh8.83 billion allocated for development and Sh16.81 billion for recurrent programmes. This represented a 6.96 per cent increase from the previous financial year. Despite the larger budget, the county's development spending was significantly lower than expected.
The county collected a total of Sh25.38 billion in revenue during the year, exceeding its target by 16.74 per cent. This was an improvement from Sh21.74 billion in the comparable period of 2024/25. Own-source revenue rose by 47.95 per cent to Sh5.40 billion from Sh3.65 billion the previous year, representing 109.37 per cent of the annual target.
The increase in revenue was attributed to improved SHA reimbursements, automated revenue collection, and integration of payment systems with the County Integrated Financial Operations Management System. Health and hospital fees through Facilities Improvement Financing generated Sh3.57 billion, accounting for 66.15 per cent of total own-source revenue.
Despite improved revenue collection, Nakuru County spent only Sh4.33 billion on development programmes, achieving a 48.97 per cent absorption rate. Recurrent expenditure, meanwhile, reached Sh14.96 billion, representing 88.95 per cent of the recurrent budget. The Controller of Budget identified low development performance as one of the challenges that hampered effective budget implementation.
The county's spending pattern favoured recurrent commitments, with employee compensation accounting for Sh8.51 billion, while operations and maintenance consumed Sh5.02 billion. Domestic travel amounted to Sh548.93 million, while foreign travel totalled Sh106.73 million. The county also ended the year with Sh3.14 billion in trade payables.
The Controller of Budget's report also raised concerns about the county's financial controls, including the operation of 280 commercial bank accounts without submitting copies of authorisation letters. The report recommended submission of the letters to enhance accountability and oversight. Additionally, personnel emoluments worth Sh1.86 billion were processed through a manual payroll, representing 21.80 per cent of total payroll costs.
The Controller of Budget has recommended that the county implement strategies to increase development expenditures in FY 2026/27, promptly pay genuine bills, and tighten payroll controls. The county is also advised to regularise commercial bank accounts and ensure timely financial reporting.
Key points
- Nakuru County collected more revenue than targeted in 2025/26 but spent less than half of its development budget.
- The county's development spending was Sh4.33 billion, representing 48.97 per cent of the development budget.
- Revenue arrears rose from Sh12.20 billion to Sh16.84 billion, with Sh12.57 billion being own-source revenue.
