Twenty Counties did not utilize their development budget in the first quarter of the 2025/2026 financial year. The office of the controller of budget has reported.
The counties include Kericho, Bomet, Siaya, Kisumu, Mombasa, Trans Nzoia, Bungoma among others.
During the period, CoB says counties such as Samburu, Garissa, Narok, Homa Bay and Lamu, recorded higher proportion of local revenue than their annual targets.
On the other hand, Uasin Gishu, Kisumu, Siaya, Nandi, Kericho and Kwale recorded a lower proportion of their own sourced revenue in comparison to their annual target.
“This is attributed to shortfall in OSR collection except for Kisumu County, which experienced significant revenue losses from FIF owing to the elevation of Jaramogi Oginga Odinga Teaching and Referral Hospital to Level Six, which has since been handed over to the National Government.,” says the report.
During the reporting period, the County Governments received a total of Kshs.13.9B from own revenue sources, which accounted for 15 per cent of the annual own revenue target of Kshs.93.9B. This represented an increase of 10 per cent compared to a similar period of FY 2024/25, when the County Governments cumulatively received a total of Kshs.12.7B.
The total outstanding revenue arrears as at 30th September, 2025, amounted to Kshs.156.23 billion. This included Kshs.113.9B in ordinary Own Source Revenue arrears, Kshs.7B in Facility Improvement Financing arrears, and Kshs.35.3B related to the September equitable share.
“The situation significantly impedes liquidity, making it challenging for the Counties to implement the FY 2025/26 budget effectively.” Noted Margaret Nyakang’o, the controller of budget.