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Originally published by Nation Counties
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February 4, 2026
4d ago

How counties blow budgets on salaries, starve development

How counties blow budgets on salaries, starve development

CRA flags Nairobi, Kisumu and Kisii counties as the worst culprits...

✨ Key Highlights

A new report by the Commission on Revenue Allocation (CRA) reveals that Kenyan counties are mismanaging budgets by spending excessive amounts on salaries, severely hindering development projects. This issue is primarily attributed to manual payrolls, unregulated contract staff, and non-compliance with approved staffing levels, turning many devolved units into "employment bureaus."

  • Nairobi, Kisumu, and Kisii counties are cited as the worst offenders, allocating over 80 percent of their budgets to salaries and wages, with Nairobi spending only 13.1 percent on development.
  • The law mandates a minimum of 30 percent of a county's budget for development and a maximum of 35 percent on the wage bill.
  • Only eight counties, including Marsabit (39.5 percent development expenditure), met the legal development spending requirements.
  • The Public Service Commission (PSC) recommends reforms, including granting PSC oversight over inter-county transfers, to address inconsistent recruitment standards and rising appeal cases.

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