A recent report by the Controller of Budget, Margaret Nyakang'o, has shed light on the utilization of development funds by counties in Kenya for the 2025/2026 financial year. The report indicates that only 10 counties have managed to utilize over 70% of their allocated development funds. These counties have demonstrated a high level of commitment to implementing development projects. The report highlights the need for other counties to emulate these leaders.
The top-performing counties, in terms of development fund utilization, are Kilifi, Wajir, Mandera, Meru, Trans Nzoia, Kirinyaga, Marsabit, Samburu, Kericho, and Vihiga. Kilifi leads the pack with a utilization rate of 84.52%, followed closely by Wajir at 83.03% and Mandera at 80%. These counties have effectively managed their development budgets, ensuring that a significant portion of their allocated funds is used for development projects.
The report further reveals that these 10 counties collectively utilized Sh34 billion out of the Sh126.69 billion spent by all 47 counties on development projects. This represents a significant portion of the total development funds used by counties. The Controller of Budget's report emphasizes the need for counties to prioritize development projects and ensure effective utilization of allocated funds.
In contrast, 13 counties have been identified as having low utilization rates for development funds. These counties include Nakuru, Kajiado, Baringo, Mombasa, Laikipia, Kiambu, Kisii, Uasin Gishu, Narok, Elgeyo-Marakwet, Nairobi, Siaya, and Kisumu. Nairobi, for instance, utilized only Sh3.8 billion out of Sh13.4 billion allocated for development projects. Similarly, Siaya and Kisumu utilized Sh1.6 billion and Sh1.7 billion, respectively, out of their allocated funds.
The report also raises concerns about counties' high expenditure on salaries and operations, which often surpasses their spending on development projects. Counties collectively spent Sh235.96 billion on salaries, allowances, and other operational costs. In comparison, they spent Sh133.92 billion on development projects. The Controller of Budget has urged counties to manage their salary expenses and adhere to regulations that require them to maintain sustainable levels of expenditure.
On a positive note, counties have demonstrated an improvement in collecting revenue from internal sources. They collected Sh96.08 billion, representing 89.99% of their annual target. This marks an increase from Sh67.3 billion collected in the previous financial year. Additionally, counties received Sh415 billion as equitable share from the national government.
The report highlights that 189 projects worth Sh10.51 billion are stalled in various counties. Furthermore, counties reported outstanding debts amounting to Sh172.53 billion as of June 30, 2026. Nairobi accounted for the largest share of the debt, with Sh86.9 billion. The Controller of Budget has emphasized the need for counties to prioritize development projects and manage their finances effectively.
Key points
- Only 10 counties in Kenya have utilized over 70% of their development funds for the 2025/2026 financial year.
- The top-performing counties in terms of development fund utilization are Kilifi, Wajir, Mandera, Meru, Trans Nzoia, Kirinyaga, Marsabit, Samburu, Kericho, and Vihiga.
- 13 counties have been identified as having low utilization rates for development funds, including Nakuru, Kajiado, Baringo, Mombasa, Laikipia, Kiambu, Kisii, Uasin Gishu, Narok, Elgeyo-Marakwet, Nairobi, Siaya, and Kisumu.
