Controller of Budget Flags 16 Counties for Salary Delays Despite Full Treasury Disbursements

Nairobi, Kenya – September 21, 2025 (EAT).

The Controller of Budget (CoB) has named 16 county governments that failed to pay staff salaries for May and June 2025, even after receiving full disbursements from the National Treasury, sparking concerns over mismanagement and potential service disruptions.

Key Findings from the CoB Report

• Counties involved: Nairobi, Mombasa, Nyandarua, Turkana, Nyamira, among others

• Expenditure: Counties collectively spent Sh220.6 billion on wages and allowances

• Compliance: Only seven counties kept wage bills within the legal threshold set by the Public Finance Management (PFM) Act

• Payroll irregularities: Multiple payrolls processed outside the government’s IFMIS system raised red flags over accountability

CoB’s Concerns & Warnings

Controller of Budget Margaret Nyakang’o criticised county administrations for:

• Violating labour rights through delayed salaries

• Risking a collapse of critical services such as health, waste management, and water supply

• Failing to adhere to the PFM Act, which prioritises essential payments like wages

She noted that the health sector alone accounts for nearly one-third of county wage bills, meaning salary delays directly affect frontline medical workers.

Counties Defend Themselves

Some county executives cited:

• Cash-flow challenges

• Transition issues to a new financial management system

• Delays in processing third-party remittances such as pensions and loan deductions

However, critics accuse county bosses of diverting funds to non-essential expenditures, including lavish foreign trips and recurrent costs flagged in previous budget reviews.

Next Steps & Accountability

• The Senate Finance and Labour Committees plan to summon governors and finance executives for explanations.

• Labour unions have threatened industrial action if salaries remain unpaid.

• Treasury officials are under pressure to enforce strict payroll audits and consider withholding future disbursements until compliance improves.

Wider Context

This revelation follows recent reports of:

• Counties overspending on travel allowances while neglecting development projects

• Underinvestment in health, education, and infrastructure despite increasing county budgets

• Rising calls for financial reforms in Kenya’s devolved governance system

What to Watch

• Senate hearings on county payroll accountability

• Potential nationwide strikes by county workers

• Treasury’s response on enforcement mechanisms for errant counties