NAIROBI, Kenya — At least 17 counties, including Nairobi, Mombasa, and Lamu, failed to utilise more than 10 per cent of their development budgets in the first half of the 2025/26 financial year, leaving billions of shillings idle and delaying key public projects.
A report by the Controller of Budget shows that counties collectively spent Sh32.49 billion on development, translating to an absorption rate of just 14 per cent of the total annual development allocation of Sh228.20 billion.
Controller of Budget Margaret Nyakang’o raised concern over the persistently low uptake, warning that stalled spending is undermining service delivery and infrastructure growth at the devolved level.
“The low absorption rate is starving devolved units of critical projects,” Nyakang’o said in the half-year budget implementation report, attributing the trend partly to weak prioritisation of development spending by county administrations.
The data reveals stark disparities across counties. Marsabit County and Mandera County recorded the highest absorption rates at 32 per cent and 30 per cent respectively, making them the only devolved units to surpass the 30 per cent threshold.
In contrast, 17 counties—including Laikipia, Nakuru, Migori, Kisii, Nyamira, West Pokot, Samburu, Nyeri, Kisumu, Vihiga, Kajiado, Elgeyo-Marakwet, Siaya, Tana River, and Lamu—posted absorption rates of 10 per cent or lower. Some counties, including Tana River County and Lamu County, recorded the lowest uptake at just three per cent, while Vihiga County managed only seven per cent.
The report indicates that while Sh156 billion was allocated to recurrent expenditure, only a fraction of development funds were utilised.
Counties spent about Sh32.5 billion on development during the six-month period, raising concerns over delayed or stalled infrastructure, healthcare, and service delivery projects.
Overall, 28 counties recorded moderate absorption rates of between 11 and 29 per cent, underscoring widespread inefficiencies in budget execution across devolved units.
Spending patterns also varied significantly. Mandera County, Narok County, and Meru County each spent more than Sh1 billion on development. Meanwhile, Nairobi spent Sh859 million, while Kiambu County and Kilifi County each exceeded Sh2 billion in development expenditure. Kisii spent Sh817 million.
Despite the weak absorption rates, Nyakang’o called on the National Treasury to ensure timely disbursement of funds, noting that delays in releasing allocations also contribute to slow project implementation.
The findings highlight ongoing challenges in Kenya’s devolution framework, where counties are expected to drive grassroots development but continue to face bottlenecks in planning, procurement, and execution.
