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**A damning report from the Controller of Budget reveals nearly half of Kenya's devolved governments failed to fund any new projects between July and September 2025, raising urgent alarms over service delivery and fiscal priorities.**

Nearly half of Kenya's counties failed to spend a single shilling on new development projects in the first three months of the financial year, a shocking report from the Controller of Budget (CoB) has revealed. The disclosure paints a grim picture of stalled projects and questionable priorities within the devolved units.
The analysis by CoB Margaret Nyakang'o exposes how, for millions of Kenyans, the promise of grassroots development remains on paper. This paralysis in spending directly impacts the delivery of crucial services like new health clinics, water projects, and local roads, stalling economic progress before the fiscal year has barely begun.
According to the County Governments' Budget Implementation Review Report, the 47 counties collectively spent a paltry KSh 3.69 billion on development between July and September 2025. This represents a meager 2% absorption rate of their total annual development allocation of KSh 217.80 billion.
The report specifically names 20 counties that recorded zero expenditure on development, effectively halting all new capital projects in their jurisdictions. Citizens in these regions, including major hubs like Kisumu and Mombasa, saw no new investment in their future during this period.
The counties that registered zero development spending are:
Analysts and the CoB's office point to several systemic issues hindering the use of development funds. Dr. Nyakang'o highlighted persistent challenges including delays by counties in submitting essential budget documents and warrants, which slows down the release of funds. Furthermore, many counties struggle with underperformance in collecting their own-source revenue, making them heavily reliant on delayed disbursements from the National Treasury.
The rollout of a new national e-Government Procurement (e-GP) system has also been cited as a cause for delays, with county officials still on a learning curve with the new platform. This has reportedly slowed down procurement processes for new projects across the country.
While the zero-spending figures are stark, some leaders caution against a simplistic interpretation. Murang'a Governor Irungu Kang'ata, whose county was not on the zero-spend list, argued that some crucial expenditures like bursaries and hospital drugs are classified as recurrent, not development, yet have a significant public impact.
The report now places immense pressure on the Council of Governors to address the underlying causes of this fiscal paralysis. As the financial year progresses, citizens and watchdog agencies will be closely monitoring whether these counties can reverse the trend and translate their billion-shilling budgets into tangible progress on the ground.
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