A fiscal crisis is looming over Kenya’s devolved governments, with Controller of Budget (CoB) Dr. Margaret Nyakang’o confirming that numerous counties are illegally operating without approved budgets for the 2025/2026 financial year. This delay blocks them from accessing billions of shillings from the National Treasury, placing essential services like healthcare and infrastructure projects in jeopardy.

The core issue is the widespread failure to meet the legal deadline of June 30 for budget submission, a violation of the Public Finance Management Act. This paralysis means that for many Kenyans, the promise of devolution—be it a new local clinic, a paved road, or timely county staff salaries—remains an unfunded promise, directly impacting their livelihoods and well-being.

A Pattern of Non-Compliance

Dr. Nyakang’o’s office has been forced to reject or return budget proposals from multiple counties due to glaring legal and procedural flaws. These are not minor clerical errors; the CoB has flagged serious issues that undermine the very foundation of public finance management.

Key reasons for the rejections include:

• Flawed Submissions: Many counties submitted budgets that disguised recurrent expenses, like administrative costs, as development projects.
• Missing Links: Budgets were presented without clear links to county planning documents such as the County Integrated Development Plan (CIDP), making it impossible to track spending against long-term goals.
• Political Stalemate: In some devolved units, bitter wrangles between governors and Members of County Assembly (MCAs) have led to assemblies deliberately delaying budget approvals, a tactic Dr. Nyakang'o has described as "political blackmail."

This administrative dysfunction has real-world consequences. Without an approved budget loaded into the government's Integrated Financial Management Information System (IFMIS), counties cannot legally requisition for any funds, including money for salaries, medicine, or contractor payments.

Service Delivery on the Line

The timing could not be worse. The budget impasse comes on the heels of a damning CoB report for the first quarter of the financial year (July-September 2025), which revealed a worrying trend. The report noted that counties collectively spent a paltry 2% of their annual development budget.

Even more alarmingly, 20 counties recorded zero expenditure on development projects during that period. Instead, over KES 1.5 billion was spent on domestic and foreign travel, raising sharp questions about the priorities of county leadership while critical local projects remain stalled. This pattern of prioritizing perks over progress fuels public distrust and undermines the core purpose of devolution.

While some governors have previously accused the CoB's office of bureaucratic delays in releasing funds, Dr. Nyakang'o has consistently maintained that the blame lies with the counties' failure to adhere to the law. Analysts note that this recurring cycle of delayed budgets, rejected proposals, and stalled projects points to systemic challenges in capacity, political will, and accountability at the county level.

With a new County Public Finance Laws (Amendment) Bill recently passed to enforce stricter timelines, the pressure is mounting. For now, millions of Kenyans are left waiting, as the funds meant to build their communities are held up by the very leaders elected to serve them.