NAIROBI, Kenya – A new report from the Salaries and Remuneration Commission (SRC) has revealed ongoing financial mismanagement by county governments, with 41 devolved units still breaching legal limits on salary expenditures.
The SRC’s Second Quarter Wage Bill Bulletin for the 2024/2025 financial year, covering the period from October to December 2024, shows a sharp rise in county salary and allowance spending, reaching Sh52.16 billion — a 34.8% increase from the Sh38.69 billion spent in the first quarter.
Under the Public Finance Management (PFM) Act, counties are legally restricted from spending more than 35% of their ordinary revenue on salaries.
However, the SRC report highlights widespread non-compliance, with only six counties—Nakuru, Kwale, Busia, Tana River, Narok, and Kilifi—staying within the legal cap.
The other counties exceeded this threshold, sparking concern over the long-term sustainability of county wage bills and their ability to fund essential services and development projects.
The report reveals that while the ratio of salary expenses to total county expenditure dropped slightly from 69.5% in the first quarter to 61.9% in the second quarter, it remains significantly above the legal limit.
The percentage of ordinary revenue spent on salaries also slightly decreased from 44.01% to 41.13%, still well over the mandated cap.
This continued breach, the SRC warned, is placing a strain on counties’ ability to invest in infrastructure and other key areas that directly impact citizens.
The SRC has called for counties to restructure their budgets and implement stricter spending controls.
It stressed that the overspending on salaries is “crowding out” vital funding for projects that could benefit local communities.
The Commission’s warning comes as the national government continues to manage its personnel costs more efficiently, with the national wage bill projected to rise from Sh170.29 billion to Sh212.53 billion by the end of the 2024/2025 year, yet the share of revenue allocated to salaries is expected to decrease from 31.7% to 25.7%, remaining within the legal threshold.
The SRC reiterated the importance of financial discipline at both the national and county levels, underscoring that sustainable wage bill management is essential for protecting public service delivery and ensuring adequate funding for development.
