Among the worst offenders is Machakos County, which overshot its approved expenditure by a staggering 125%, spending Ksh 5.97 billion against an approved budget of Ksh 4.77 billion. Kilifi followed closely, exceeding its budget by 120%, while Turkana County spent 123% of its approved allocation. Other counties guilty of similar financial indiscipline include Bungoma, Homa Bay, Kwale, Samburu, Uasin Gishu, Wajir, Makueni, Meru, Migori, Nandi, Narok, Nyandarua, and Nyeri
A shocking new report by the Controller of Budget (CoB), Margaret Nyakang’o, has exposed massive financial mismanagement in county governments. It reveals a disturbing pattern of overspending, fund diversion, and idle cash reserves.
The report, covering the first half of the 2024/25 financial year, paints a grim picture of fiscal recklessness, with 16 counties spending beyond their approved budgets. This blatant disregard for financial regulations not only violates the law but also raises serious concerns about accountability in the devolved units.
Among the worst offenders is Machakos County, which overshot its approved expenditure by a staggering 125%, spending Ksh 5.97 billion against an approved budget of Ksh 4.77 billion. Kilifi followed closely, exceeding its budget by 120%, while Turkana County spent 123% of its approved allocation. Other counties guilty of similar financial indiscipline include Bungoma, Homa Bay, Kwale, Samburu, Uasin Gishu, Wajir, Makueni, Meru, Migori, Nandi, Narok, Nyandarua, and Nyeri.
Nyakang’o’s report further exposes how some counties misallocate funds intended for critical projects, violating strict budgetary guidelines. Kilifi County, for example, exceeded its exchequer releases across multiple departments, including Water, Health, Agriculture, and Education, diverting money from approved projects to unapproved expenditures.
At the same time, several counties are hoarding funds, with billions lying idle in government accounts instead of being channelled into essential development projects. Busia County, for instance, spent only 69% of its approved allocations, while Tana River, Kericho, and Vihiga also failed to utilise their funds effectively. This failure to absorb allocated resources hampers service delivery and delays much-needed development.
A major concern raised in the report is the growing crisis of pending bills, as many counties divert funds meant to settle debts. By December 2024, counties had accumulated outstanding bills amounting to Ksh 182.13 billion, worsening financial instability and affecting service providers.
In contrast, only seven counties—Nairobi, Lamu, Embu, West Pokot, Taita Taveta, Mandera, and Kitui—were found to have adhered strictly to their approved budgets, spending exactly what was sanctioned by the CoB.
Nyakang’o has sounded the alarm on the manual exchequer system, which she says is enabling counties to manipulate financial records and bypass oversight mechanisms. She has called on the National Treasury to fast-track the automation of county government financial processes to curb these irregularities and enhance accountability.
“This manual system is being exploited to divert funds and evade scrutiny. It is both illegal and dangerous in the management of public resources,” she warned.
With county governments under increasing pressure to justify their spending, the revelations in this report underscore the urgent need for stricter financial oversight and enhanced transparency in the management of public funds. The question remains—will action be taken, or will county governments continue to squander billions at the expense of taxpayers?
