A report by the Controller of Budget has revealed counties that had huge wage bills in the 2016/2017 financial year.
The report, which analysed the last financial year’s budget implementation, revealed counties’ expenditure on salaries and allowances soared to Sh130 billion from Sh118 billion reported in 2015-16 financial year.
The report released last week shows 34 counties spent above the 35 per cent of their total expenditure on personnel emoluments, against the Public Finance Management Act (County Governments) Regulations.
Eight counties
A further analysis of the report shows eight counties spent more than 50 per cent of the total expenditure on salaries and allowances to county staff in 2016-2017.
Tharaka Nithi, Taita Taveta, Nairobi, Kisii, Elgeyo Marakwet, Nyeri, Kirinyaga and Homa Bay counties recorded more than 50 per cent expenditure on personnel emoluments.
This, according to Controller of Budget Agnes Odhiambo, negatively affects spending on development projects as it shifts crucial funds to recurrent expenditure.
“County governments should ensure expenditure on personnel emoluments is contained within sustainable levels in compliance with Regulation 25 (1) (b) of the Public Finance Management (CountyGovernments) Regulations, 2015,” she noted.
Nairobi County reported the highest expenditure on personnel emoluments at Sh13.42 billion, followed by Kiambu and Nakuru counties at Sh5.31 billion and Sh5.17 billion respectively.
The report shows counties like Siaya saw expenditure on wages rise from Sh1.68 billion to Sh2.31 billion while Homa Bay also reported a 37.4 per cent rise in its wage bill.
Other counties that had a rising wage bill were Vihiga, Nyamira and Meru, which reported more than 15 per cent rise in personnel costs.
A report by the International Budget Partnership-Kenya in May revealed that the high wage bill reported in counties was due to staff inherited from national government and defunct local authorities.
The spending on development during the 2016-17 financial year was also below the 30 per cent limit provided in the Public Finance Management (PFM) Act in 21 counties.
Taita Taveta County, during the period under review, spent Sh405 million on development which represented a paltry 11 per cent of its total expenditure. The overall spending on development for the 47 counties dropped slightly to Sh103.34 billion from Sh103.45 billion in the financial year under review as counties faced challenges absorbing funds allocated for development.
The National Treasury was put on the spot for delays in disbursement of the equitable share of revenue to counties, thereby affecting the implementation of development projects.
Lamu, Nakuru, Nairobi and Taita Taveta counties reported the lowest absorption rate of their development budget at 38.3 per cent, 35.1 per cent, 33.4 per cent and 28.6 per cent respectively.
