Sixteen county governments are in the spotlight after failing to pay staff salaries for May and June 2025, despite receiving their full equitable share allocations from the National Treasury. The revelations, contained in the latest report by Controller of Budget (CoB) Dr. Margaret Nyakang’o, have sparked outrage among workers and raised questions about the financial stewardship of devolved units.
Full Treasury Transfers, Empty Payrolls
According to the CoB, counties collectively received Sh533.1 billion during the 2024/25 financial year. This included Sh387.43 billion in equitable share, Sh30.83 billion in arrears from 2023/24, Sh24.86 billion in additional funding, Sh22.69 billion in carried forward balances, and Sh67.3 billion in own-source revenues. Yet, despite these allocations, 16 counties—including Nairobi, Mombasa, Turkana, Narok, Nyandarua, Bungoma, Kisumu, Machakos, Makueni, Mandera, Marsabit, Meru, Murang’a, Tharaka Nithi, Bomet, and Kilifi—failed to requisition salary withdrawals from the Central Bank for May or June.
Turkana, Narok, and Bungoma last processed salaries in April, while others such as Kisumu, Makueni, and Machakos stopped after May. “Notably, out of the 47 county governments, 16 did not request their June 2025 salaries,” Nyakang’o disclosed.
Wage Bill Crisis Deepens
The crisis reflects a deeper structural problem: unsustainable county wage bills. Counties spent Sh220.6 billion on salaries and allowances in 2024/25, up from Sh209.8 billion the previous year. This consumed 41.4 per cent of county revenues, well above the legal ceiling of 35 per cent set under the Public Finance Management (PFM) regulations.
Only seven counties managed to keep their wage bills within legal limits—Kilifi (24%), Siaya (26%), Tana River (27%), Nakuru (30%), Kwale (31%), Nandi (33%) and Nyandarua (33%). The rest, particularly Nairobi and Mombasa, are battling bloated payrolls that leave little room for development expenditure.
A senior Treasury official, speaking on condition of anonymity, told SIAYA TODAY that some counties deliberately deferred salaries to create “artificial crises” that they could later use to lobby for higher allocations from the national government.
Poor Payroll Management, Misuse Risks
The CoB report also flagged weak payroll controls, revealing that Sh10.7 billion (5% of total employee compensation) was processed manually, outside the government payroll system. Although an improvement from Sh15.9 billion last year, Nyakang’o warned that such practices expose public funds to fraud, ghost workers, and diversion.
Union officials now suspect that part of the delayed salaries may have been diverted to pay pending bills, finance political activities, or cover ballooning travel budgets. Notably, governors and MCAs collectively spent Sh16 billion on travel in 2024/25, almost enough to cover a full month of salaries for all 16 delinquent counties.
Health Sector Strain
The health sector remains the single largest drain on county payrolls. Out of Sh141.78 billion spent on health in 2024/25, Sh97.45 billion went to staff salaries alone. Counties such as Baringo, Nyeri, Trans Nzoia, and Taita Taveta allocated more than half of their entire wage bill to health salaries, leaving little for drugs, equipment, or development.
“This explains why health strikes have become frequent—the counties are paying salaries late, yet frontline staff account for the biggest proportion of their workforce,” noted an analyst from the Institute of Public Finance.
Political and Governance Failures
Analysts argue that the salary arrears are not just a cash flow issue but a symptom of poor governance and misplaced priorities. County assemblies, which should exercise oversight, often collude with executives in budget manipulation. Meanwhile, the CoB lacks enforcement powers beyond issuing warnings.
The situation has left thousands of workers—including doctors, nurses, and county support staff—struggling with rent arrears and loan defaults. For some, two months without pay has pushed them into debt traps with shylocks.
The 16 counties’ failure to pay salaries despite receiving full allocations exposes structural weaknesses in Kenya’s devolved governance model. As the 2025/26 fiscal year begins, Nyakang’o has warned counties to “adequately allocate for employee compensation to cover wages for 12 months, as well as any arrears.”
But unless political leaders rein in ballooning wage bills, seal payroll loopholes, and prioritize salaries over perks, the problem could escalate into a full-blown labor crisis.
“The tragedy is not lack of money—it is lack of accountability,” said a governance expert.
For now, the unpaid county workers remain the biggest casualties of a system where politics continues to override service delivery.
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