County governments are on the spotlight after it emerged that they spent Sh17.4 billion on domestic and foreign travel alone.
Controller of Budget Margaret Nyakangó revealed that the counties' expenditure represents 4.08 per cent of the total expenditure by all the 47 devolved units in the 2022-23 financial year.
“Expenditure on domestic and foreign travel by counties for FY 2022-23 was Sh15.24 billion and Sh2.2 billion respectively,” Nyakangó said in a report.
The amount is equivalent to the budgets of Elgeyo Market, Isiolo and Lamu counties combined.
The development comes even as Nyakangó revealed that 40 counties failed to spend a minimum requirement of 30 per cent of their budgets on development, as pending bills and wage bills hit the roof.
Nyakangó tabled the report before the Senate Finance and Budget committee that had invited her to discuss the budget implementation review reports for counties for the 2022-23 financial year.
According to the report, Nairobi county led in travel expenses with the Governor Johnson Sakaja-led administration spending Sh337.20 million on travel during the year.
Baringo spent Sh184.33 million, Mombasa Sh124.84 million, Nakuru spent Sh100.60 million while Kitui spent Sh96.99 million.
Other top spenders are Meru (Sh84.48 million), Bomet (Sh81.16 million), Kiambu (Sh81.11 million), Nyeri (Sh80.18 million), Murangá (Sh78.62 million) and Nyamira (Sh71.58 million).
The least spenders on travel were Homa Bay (Sh6.23 million), Elgeyo Marakwet (Sh7.62 million), Kakamega (Sh8.15 million), Isiolo (Sh8.33 million), Garissa (Sh9.01 million) and Siaya (Sh9.41 million).
“The aggregate county expenditure on domestic and foreign travel to total operations and maintenance was 8.98 per cent,” the report states.
Consequently, the COB wants expenditures on travels by county officials curtailed to save taxpayers’ money.
“Control of recurrent expenditures such as domestic and foreign travel by counties is necessary," Nyakangó said.
She added that this can be done by curtailing the number of trips and size of delegation, as well as the frequency of travel.
As the counties blow billions on travels, only seven counties spent at least 30 per cent of their budgets on development as required in law.
They are Marsabit, Baringo, Uasin Gishu, Mandera, Kwale, Kilifi and West Pokot.
Shockingly, 11 counties spent less than 20 per cent of their total expenditures on development. They are Kisii (5.7 per cent), Kiambu (10.2 per cent), Nairobi (13.9 per cent), Machakos (16.8 per cent) and Busia (16.8 per cent).
Others are Mombasa (17.4 per cent), Tharaka Nithi (18.3 per cent), Laikipia (18.7 per cent), Migori (19.9 per cent) and Kisumu (19.9 per cent).
“The aggregate county expenditures on development which was 22.8 per cent, is low considering the required expenditure on development is set at 30 per cent ceiling,” Nyakangó said.
The CoB called for improvement of measures to implement development programmes, and ensure cash flow plans and procurement plans are adhered to by accounting officers.
“This can be done through adequate budgetary support to the OCOB to recruit more staff at the county government level, to help in the monitoring and evaluation of budget implementation,” she said.
Nyakangó revealed that some counties have become employment bureaus as they spend as high as 70 per cent of their budgets on salaries, wages and allowances of their staff.
Kisii spent 70 per cent of their budgets on personnel emolument against the legal requirement of 35 per cent.
Other high spenders on the wage bill are Kiambu (64.60 per cent), Garissa (61.40 per cent), Machakos (60.00 per cent), Nyeri (57.30 per cent) and Tharaka Nithi (56.90 per cent).
Some 11 counties spent between 50 and 60 per cent of their total expenditures on compensation of employees.
They are Meru, Murangá, Nakuru, Taita Taveta, Nyamira, Kisumu, Mombasa, Laikipia, Embu, Tharaka Nithi and Nyeri.
“The aggregate county expenditure on compensation to employees on total expenditure was 45.5 per cent,” Nyakangó said.
The COB revealed that the counties have ballooned pending bills amounting to Sh164.76 billion as at June 30, 2023 compared to Sh153.02 billion in 2022.
Nairobi is leading with Sh107.3 billion, Wajir Sh5.5 billion, Mombasa Sh4.2 billion, Kiambu Sh5.9 billion and Mandera Sh3.1 billion.
“The county leadership should address the pending bills situation to ensure genuine bills are paid promptly in the remaining financial year.
“The Controller of Budget also recommends consideration for the inclusion of crucial institutions in public finance management in the pending bills verification committees, to enhance their effectiveness,” she said.
Nyakangó revealed that only three counties hit their targets of their own source revenue, with seven devolved units recording less than 50 per cent of their targets.
Those that hit their targets are Kitui (110.6 per cent), Kirinyaga (112.3 per cent), and Lamu (119.8 per cent).