Budget Blowout: 39 Counties Overspend Ksh220B on Salaries, Controller of Budget Raises Alarm

Budget Blowout: 39 Counties Overspend Ksh220B on Salaries, Controller of Budget Raises Alarm

A financial storm is brewing across Kenya’s counties. The Controller of Budget (CoB), Margaret Nyakang’o, has flagged a staggering Ksh220.64 billion in irregular salary payments. This overspending, revealed in the latest County Governments’ Budget Implementation Review Report, has sparked outrage and concern nationwide.

Counties Breach Legal Salary Limits

According to the report, 39 counties exceeded the legal 35% salary-to-revenue ceiling set by Regulation 25(1)(b) of the Public Finance Management (PFM) Regulations, 2015.

“Only eight County Governments adhered to the 35 per cent ceiling for employee compensation,” the report stated.

Shockingly, the Ksh220.64 billion spent on salaries represents 47% of total county expenditure and 41% of realized revenue.

Nyeri Tops the List of Overspenders

Nyeri County led the pack, spending 55% of its revenue—Ksh4.51 billion—on salaries. Machakos followed closely at 54.5%, then Baringo at 53.4%, and Tharaka Nithi at 53%.

Elgeyo Marakwet, Homa Bay, Kajiado, and Taita Taveta each spent 51%. Nairobi came ninth, using 50.8% of its revenue on salaries, while Lamu closed the top ten at 50%.

“Counties must prioritize development, not payroll expansion,” Nyakang’o warned.

Mombasa and Kisumu also overspent, using 47% and 48% of their revenue on employee compensation, respectively.

Few Counties Stayed Within Limits

Only eight counties respected the salary ceiling. Kilifi led with just 24%, followed by Siaya at 26%, and Tana River at 27%. Nakuru, Kwale, Uasin Gishu, Nandi, and Nyandarua also stayed within the legal threshold.

“These counties show that fiscal discipline is possible,” Nyakang’o noted.

Health Sector and Manual Payrolls Raise Red Flags

Besides overspending, the CoB flagged the high proportion of health sector wage bills. She urged counties to collaborate with the national government to mobilize additional funds.

Moreover, Ksh10.7 billion—5% of total salary expenditure—was processed manually, raising concerns over transparency and accountability.

“Manual payrolls expose counties to fraud and inefficiencies,” Nyakang’o emphasized.

Salaries Unpaid Despite Full Funding

Alarmingly, 16 counties failed to requisition June 2025 salaries, despite receiving their full equitable share. This has left thousands of workers unpaid and frustrated.

“This is unacceptable. Counties must honor their obligations,” Nyakang’o declared.

As Kenyans demand answers, the report has reignited calls for tighter budget controls, transparency, and accountability in county governance.

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Budget Blowout: 39 Counties Overspend Ksh220B on Salaries, Controller of Budget Raises Alarm