In a startling revelation that has reignited tensions between county and national governments in Kenya, a recent audit report shows that counties have spent a staggering Sh146 billion on salaries and administrative costs, leaving critical development projects underfunded and stagnating.
The report, released by the Office of the Auditor-General, paints a grim picture of fiscal management in Kenya’s 47 counties. Over 60% of their total budgets were allocated to recurrent expenditures, primarily staff salaries and administrative costs, in stark contrast to the Public Finance Management Act’s stipulation that this should not exceed 35% of total county revenue.
This excessive spending on wages has left counties with insufficient funds for crucial development projects aimed at improving residents’ lives. Key sectors such as healthcare, agriculture, and infrastructure have been hit hard, with many planned initiatives either delayed indefinitely or operating on shoestring budgets.
Governor Alex Tolgos of Elgeyo Marakwet County defended the high wage bill, stating, “We inherited bloated workforces from the former local authorities. Downsizing is a sensitive issue that could lead to social unrest.” However, critics argue that counties have been on a hiring spree, often employing based on political affiliations rather than merit.
The national government, long at loggerheads with counties over resource allocation, sees this as evidence of financial mismanagement. Treasury Cabinet Secretary Njuguna Ndung’u remarked, “This report confirms our concerns. Counties demand more funds but squander what they receive. It’s time for stricter oversight.”
Counties have been pushing for an increase in their share of national revenue from the current 15% to 35%, a move resisted by the national government. This latest report strengthens the national government’s position, suggesting that more funds might not translate to better development outcomes.
The Council of Governors (CoG) has hit back, accusing the national government of withholding funds and thereby forcing counties to prioritize salaries. CoG Chair Anne Waiguru stated, “Delayed disbursements from the Treasury often leave us with no choice but to pay salaries first. This report doesn’t tell the whole story.”