Governor Johnson Sakaja is facing mounting political and public scrutiny following fresh revelations that Nairobi County salaries consumed nearly 70 per cent of all revenue collected within just three months.
A damning report by Controller of Budget Margaret Nyakang’o paints a troubling picture of a county government prioritising payroll obligations over development, service delivery, and debt management.
The findings raise serious questions about hiring practices, payroll controls, and fiscal discipline at City Hall, deepening concerns over Nairobi’s long-standing financial crisis.
Nairobi County Salaries Drain Development Funds Under Sakaja Administration
The Controller of Budget’s latest expenditure review has placed Nairobi County under an unforgiving spotlight. Between July and September, the county received Ksh6.6 billion from the National Treasury and its own revenue streams. Out of this amount, Ksh4.7 billion, equivalent to 69 per cent, was channelled into staff compensation alone.
This level of spending left little room for development or improvement of essential services in Kenya’s capital. While residents grapple with deteriorating roads, unreliable waste collection, and overstretched health facilities, only Ksh202.2 million was allocated to development projects during the same period. In contrast, recurring expenditures, dominated by salaries and allowances, ballooned to Ksh5.3 billion.
Nyakang’o flagged Nairobi County’s salary spending patterns as unsustainable, warning that the county risks locking itself into a vicious cycle of wage obligations that crowd out meaningful investment. The report has intensified pressure on Governor Sakaja to explain how his administration intends to restore fiscal balance without crippling service delivery.
Health Sector Wage Bill Raises Red Flags
A closer look at the numbers reveals that the health sector alone consumed Ksh2.03 billion in salaries within three months, accounting for 42 per cent of the total wage bill. County hospitals and health facilities received Ksh470 million in revenue, yet staff compensation far outpaced operational funding.
While health workers play a critical role in service delivery, the disproportionate allocation has raised questions about staffing levels, allowances, and the effectiveness of payroll oversight. The Controller of Budget noted that weaknesses in managing contract and casual workers may be inflating Nairobi County Salaries beyond approved limits.
The county assembly also came under scrutiny after spending Ksh12.7 million on committee sitting allowances for 124 Members of the County Assembly in just one quarter. Critics argue that such expenditures reflect misplaced priorities at a time when basic services remain underfunded.
Operational Costs Surge Deepens Fiscal Strain
Beyond salaries, Nairobi County’s operational and maintenance costs jumped by a staggering 207 per cent compared to a similar period in the previous financial year. This sharp rise further squeezed the county’s limited resources, compounding concerns over financial discipline.
More than half of the modest development budget was absorbed by the environment and sanitation docket, including the procurement of heavy machinery worth Ksh150 million. While investment in sanitation is necessary, analysts question whether such capital purchases deliver immediate relief to residents struggling with daily service failures.
The Controller of Budget warned that unchecked growth in operational expenses, combined with runaway Nairobi County salaries, could derail any attempt to stabilise the county’s finances. Without tighter controls, the county risks perpetuating a system where spending grows faster than revenue.
Pending Bills and Revenue Arrears Fuel Crisis
Nairobi County’s wage bill challenges are further complicated by its massive debt burden. The county remains the largest contributor to pending bills nationwide, owing contractors and suppliers Ksh82.8 billion. Of this, Ksh62.3 billion is historical debt inherited from previous administrations, while Ksh20.5 billion has accumulated under the current leadership.
Equally troubling is the county’s poor revenue performance. Nairobi accounts for 43 per cent of all county revenue arrears nationally, totalling Ksh67.01 billion. Weak land rate compliance is a major factor, with only 50,000 to 60,000 out of 250,000 land parcels actively paying rates.
Unremitted statutory deductions have added another layer of pressure. Nairobi County owes Ksh5.25 billion in PAYE, NHIF, and NSSF contributions, nearly half of the national total. This failure not only exposes workers to risk but also signals deeper governance gaps within payroll management.
In her recommendations, Nyakang’o urged Governor Sakaja’s administration to enforce strict payroll controls by fully integrating salaries into the Human Resource Information System and ensuring every employee holds a Unified Personnel Number. She also called on the County Public Service Board to rein in the hiring of contract and casual workers and adhere strictly to approved staffing levels.
With Nairobi County salaries now dominating public debate, the coming months will test whether City Hall can shift from wage-heavy spending toward development, accountability, and sustainable service delivery.
