Kenyan county governments allocated 87.3% of their total budgets to recurrent expenses such as salaries and personal benefits during the 2017-18 fiscal year, according to presidential remarks at the 6th Devolution Conference. This left only 12.7% for development projects, falling far below the legal requirement of 30% for growth-oriented spending.
President Uhuru Kenyatta criticized county leaders for prioritizing operational costs over infrastructure and service delivery, citing data showing Nairobi spent Sh4.27 billion on salaries alone in 2018-19. The capital was followed by Machakos and Kisumu, which allocated Sh1.96 billion and Sh1.69 billion respectively for personnel costs.
A 2018-19 budget analysis revealed 24 counties failed to allocate any funds to development, while the remaining 23 spent a combined Sh3.51 billion—just 6.9% of total budgets. This marked an increase from Sh1.15 billion in 2017-18 but still fell short of statutory targets.
Counties with the highest salary-to-expenditure ratios included Garissa (91.8%), Baringo (91.7%), and Nakuru (90.4%). Controller of Budget Agnes Odhiambo noted that local governments generated only Sh7.41 billion in own-source revenue during the first quarter of 2018-19, far below the Sh50 billion target. Nairobi led collections with Sh1.79 billion, while Wajir, Tana River, and Lamu reported the lowest at Sh12.69 million, Sh9.52 million, and Sh6.35 million respectively.
The Commission on Revenue Allocation attributed poor collection to manual systems, unreported income, and unrealistic forecasting. Its report highlighted persistent volatility in county revenue, with many failing to meet targets and experiencing declining collections over subsequent years.
