Controller of Budget has identified 16 counties for allegedly concealing their actual staff expenditures

According to Controller of Budget Margaret Nyakang’o, at least 16 counties are currently being investigated for intentionally misrepresenting their wage expenditures to create the illusion of compliance with legal spending limits.

  These counties are reportedly delaying salary payments for one or two months, which allows them to present a lower annual employee compensation figure than what is accurate. Nyakang’o clarified that this strategy enables counties to assert adherence to the Public Finance Management (PFM) Regulations, which cap wage and benefits expenditures at 35 percent of total revenue. "Certain counties are becoming increasingly cunning by engaging in deceptive budgeting practices. They are intentionally refraining from requisitioning salaries for a month or two, so that by the end of the fiscal year, they can report expenditures for fewer months," she stated. The payments that are withheld are subsequently reported in the following financial year, thereby crafting a misleading narrative of fiscal responsibility. This practice reportedly began in the previous financial year as counties sought to appear compliant despite rising wage costs. In spite of these manipulations, numerous counties still exceeded the 35 percent threshold. Nyakang’o cautioned that if complete disclosures were made for the entire year, some counties might be allocating as much as 70 percent of their revenue to salaries. The review of the 2023–2024 budget implementation has identified Bungoma, Narok, Turkana, Bomet, Kilifi, Kisumu, Machakos, Makueni, Mandera, Marsabit, Meru, Murang’a, Nyandarua, Tharaka Nithi, and Mombasa as the most significant offenders. Bungoma and Narok failed to account for salary payments in May and June, while the other counties omitted June payments. This occurred despite all counties receiving complete funding from the National Treasury for salary payments during the fiscal year.