This archive report was first published on 7 October 2019.
Between July 2018 and June 2019, County Governments allocated a staggering Kshs.162.77 billion to personnel emoluments, accounting for 60.5% of the total recurrent expenditure, according to a report by the Controller of Budget. This represents a significant increase from the Kshs.151.09 billion spent in FY 2017/18, when personnel expenditure accounted for 49.7% of the total expenditure.
As a percentage of the total expenditure, Nakuru (58.4%), Baringo (57.5%), Nyamira (56%), and Homa Bay (54.5%) recorded the highest percentages in personnel emoluments. In contrast, only five counties - Tana River, Marsabit, Turkana, Mandera, and Kilifi - reported expenditure on personnel emoluments within the maximum allowed limit of 35% of their total expenditure.
Furthermore, MCAs took home an additional Sh2.2 billion in allowances in the Financial Year (FY) 2018/19, with the County Assemblies spending Kshs.2.2 billion on MCAs Sitting allowances against an approved budget allocation of Kshs.2.58 billion. This expenditure translates to 85.7% of the approved MCAs sitting allowance budget, and an increase from 62.3% attained in FY 2017/18.
Unfortunately, the County Governments only spent Kshs.107.44 billion on development activities, a whopping Kshs.55 billion less than the amount spent on personnel emoluments. This represents 57.8% of the annual development budget.
The report identified high expenditure on Personnel Emoluments, late submission of quarterly financial reports to the Controller of Budget, and high expenditure on travel costs as key challenges that hampered effective budget execution during the reporting period. The CoB further stated that the increase in wage bill is unsustainable and will crowd out spending on key development activities.
“The Office recommends that expenditure on personnel emoluments be contained at sustainable levels in compliance with Regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations, 2015,” the report stated.
