County governments have once again come under scrutiny after a new report from the Office of the Controller of Budget (CoB) revealed that they spent nearly half of their expenditure on employee compensation in the 2024/25 financial year, flouting legal limits.
According to the report on budget implementation, counties spent KSh 220.64 billion on wages and benefits, up from KSh 209.84 billion in the 2023/24 fiscal year. This accounted for 47 per cent of total expenditure, well above the legal ceiling of 35 per cent of actual revenue.
The report shows that 39 counties breached the threshold, with only eight meeting the requirement. The compliant counties include Kilifi (24 per cent), Siaya (26 per cent), Tana River (27 per cent), Nakuru (30 per cent), Kwale (31 per cent), Nandi (33 per cent), and Nyandarua (33 per cent).
The CoB, led by Dr. Margaret Nyakang’o, expressed concern that the wage bill trends undermine fiscal discipline and go against a resolution made at the Third National Wage Bill and Productivity Conference in 2024, which urged public service institutions to gradually reduce their wage bills to 35 per cent by June 2028.
Additional concern is that KSh 10.7 billion, equivalent to 5 per cent of the total compensation expenditure was processed manually and paid outside the government payroll system, raising accountability questions.
The report further revealed that 16 counties failed to requisition their employees’ June 2025 salaries. The CoB has advised counties to make adequate allocations for wages in the 2025/26 financial year to cover 12 months of salaries and settle any arrears.
The watchdog has urged devolved units to align their expenditure with legal requirements and adopt sustainable wage management practices to safeguard service delivery.
