Nandi Tops Counties in Development Spending as Most Lag Behind, Budget Report Reveals
Nandi County has emerged as the country's leading performer in development expenditure, distinguishing itself as one of only four counties that surpassed the 50 per cent development budget absorption mark during the first nine months of the 2025/2026 financial year.
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| Nandi Governor Stephen Sang (Photo Courtesy) |
The findings are contained in the latest County Governments Budget Implementation Review Report released by the Controller of Budget, Margaret Nyakang'o. The report assesses the implementation of county budgets between July 2025 and March 2026 and paints a mixed picture of devolution, with the majority of counties struggling to convert approved budgets into tangible development projects.
According to the report, the administration of Governor Stephen Sang recorded the highest development absorption rate in the country at 55 per cent. The county spent Sh2.27 billion out of its Sh4.11 billion development allocation, outperforming all other devolved units.
Meru and Wajir counties followed closely, each registering a development absorption rate of 54 per cent, while Marsabit posted 51 per cent.
Nationally, county governments spent a combined Sh72.07 billion on development projects during the review period, representing only 31 per cent of the total annual development budget of Sh234.33 billion. The report highlights ongoing challenges in project implementation despite counties receiving substantial allocations intended to improve infrastructure and service delivery.
Of the 47 counties, 43 failed to attain a 50 per cent development absorption rate, raising concerns over delays in implementing projects and delivering services to residents.
At the lower end of the ranking, Kajiado County recorded the poorest performance, spending only nine per cent of its development budget. Lamu followed at 11 per cent, while Siaya and Uasin Gishu each posted 13 per cent. Tana River and Baringo recorded 17 per cent, Nakuru achieved 19 per cent, while Mombasa and Migori each registered 20 per cent.
The report further reveals that 19 counties recorded development absorption rates of 25 per cent or below, while 24 counties achieved rates ranging between 26 and 50 per cent.
Despite the poor uptake of development funds, counties generally performed better in recurrent expenditure. During the review period, county governments spent Sh259.57 billion on recurrent activities, equivalent to 65 per cent of the approved recurrent budget.
Overall, counties spent Sh331.65 billion out of a combined annual budget of Sh633.3 billion, translating to an overall absorption rate of 52 per cent.
Nairobi County recorded the highest overall budget absorption rate at 72 per cent, followed by Meru at 68 per cent, Marsabit at 66 per cent, and Nandi at 63 per cent.
Controller of Budget Margaret Nyakang'o attributed the low development expenditure in many counties to slow implementation of projects and urged county governments to accelerate spending during the remaining months of the financial year.
"In the first nine months of FY 2025/26, county governments spent Sh72.07 billion on development activities, equivalent to 31 per cent of the annual development budget," the report states.
Nyakang'o warned that failure to fast-track project implementation could negatively affect the delivery of critical infrastructure and other public investments envisioned in county budgets.
She further reminded counties that the Public Finance Management Act requires them to allocate at least 30 per cent of their budgets to development expenditure over the medium term, noting that actual spending should reflect this commitment.
"County governments should accelerate implementation and spending under development budgets during the remaining months of FY 2025/26 to improve absorption and support delivery of planned projects," she recommended.
The report places Nandi County among the top-performing devolved units in translating budget allocations into development spending, a key indicator used to measure the effectiveness of county governments in delivering projects and services to residents.
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