Controller of Budget Report Shows Only Five Counties Met Development Spending Target as Project Delays Persist

A new budget implementation report by the Office of the Controller of Budget (CoB) has revealed that only five of Kenya’s 47 counties met the legal requirement to allocate at least 30 per cent of their expenditure to development during the first nine months of the 2025/26 financial year.The findings highlight growing concerns over the pace of development under Kenya’s devolved system, with most county governments continuing to spend a significant share of their budgets on recurrent expenses such as salaries, operations, and administration. For residents, this means fewer completed roads, health facilities, water projects, and other essential public services despite continued public spending.

According to the report, Kilifi County recorded the highest development expenditure at 35.9 per cent, followed by Nandi (33.7 per cent), Wajir (30.9 per cent), Bomet (30.4 per cent) and Garissa (30.0 per cent). The Public Finance Management (PFM) Act requires county governments to dedicate at least 30 per cent of their expenditure to development in order to promote long-term economic growth and improve public service delivery.Several counties narrowly missed the statutory threshold, including Kwale (29.7 per cent), Trans Nzoia (29.6 per cent), Kirinyaga (28.6 per cent), Narok (28.6 per cent) and Marsabit (27.3 per cent).Despite leading the country in development spending, Kilifi also faces a significant implementation challenge.

The report indicates that the county has the highest number of stalled development projects, highlighting that allocating funds alone does not necessarily translate into completed infrastructure or improved services for residents.Other counties also continue to grapple with delayed projects, reflecting broader challenges in project implementation, procurement, and financing. Analysts say delays in exchequer disbursements, pending bills, and ambitious revenue projections have slowed the completion of many county-funded projects across the country.Public finance experts argue that successful devolution depends not only on budgeting for development but also on ensuring projects are completed on time and deliver value to taxpayers

“Budget allocations are important, but citizens ultimately judge county governments by completed roads, functioning hospitals, reliable water systems, and other services that improve everyday life,” said a governance expert familiar with county public finance.Contractors working on county projects have also expressed concerns over delayed payments, saying prolonged settlement periods increase borrowing costs and disrupt project timelines. Many warn that persistent cash-flow challenges discourage contractors from taking up public projects, ultimately slowing development.The CoB report comes as county governments face increasing pressure to demonstrate prudent financial management amid rising public demand for accountability and improved service delivery. Oversight institutions, including county assemblies and the Senate, are expected to use the findings to evaluate fiscal performance and monitor compliance with public finance laws.

What It Means

The report suggests that while some counties are meeting legal development spending thresholds, many continue to struggle with translating budget allocations into completed projects. For citizens, this can mean delayed access to healthcare, poor road networks, unreliable water infrastructure, and slower local economic growth.The findings also reinforce the importance of accountability in county spending. Development is measured not only by the amount of money allocated but by whether projects are completed on time, deliver quality services, and improve the lives of residents.

What’s Next

As counties enter the final quarter of the financial year, attention is expected to shift toward accelerating project completion, clearing pending bills, and improving budget implementation. The Controller of Budget’s findings are also likely to inform discussions within county assemblies, the Senate, and other oversight institutions on strengthening financial management and ensuring devolved funds achieve their intended impact.