Narok County, under the leadership of Governor Patrick Ole Ntutu, and Homa Bay County, led by Governor Gladys Wanga, have emerged as top performers in development budget utilization for the financial year 2023/24. This is according to the latest Annual County Budget Implementation Review Report (CBIRR) released by the Controller of Budget, which outlines the performance of counties in utilizing their allocated development funds.
Narok County achieved the highest absorption rate of its development budget, standing at 90.3%. Homa Bay County followed closely with an absorption rate of 86.3%, showcasing commendable fiscal discipline and efficiency in implementing development projects. This achievement underscores the efforts by both counties to ensure that allocated funds are effectively used to improve infrastructure, healthcare, education, and other essential services that directly benefit residents.
Other counties also demonstrated strong performance in development expenditure utilization. Wajir County achieved an absorption rate of 83.4%, while Mandera County followed with 82.6%. Meru and Bomet counties rounded out the top five with absorption rates of 79.3% and 76.2%, respectively. These counties have shown a commitment to driving development through effective use of their allocated budgets, setting an example for other regions to follow.
However, not all counties fared well in budget absorption. Nyandarua, Garissa, and Mombasa reported the lowest absorption rates, with figures of 45.9%, 44.8%, and 43.4%, respectively. Nairobi City, Kisumu, and Kisii counties also faced significant challenges, with absorption rates of 38.7%, 37.0%, and 29.2%, respectively. These low absorption rates suggest potential inefficiencies in project implementation, delays in fund disbursement, or challenges in planning and executing development activities.
The CBIRR report highlights that the total development expenditure across all counties amounted to Ksh.109.23 billion, achieving an overall absorption rate of 57.5% of the allocated Ksh.189.93 billion. This represents a decline from the previous year’s absorption rate of 61.0%, indicating a need for improvement in how counties utilize development funds.
In terms of overall expenditure, counties spent Ksh.446.76 billion, representing 79.5% of the total annual budget. This includes Ksh.337.53 billion for recurrent expenditures and Ksh.109.23 billion for development activities. The overall absorption rate of 79.5% marks a decline from the previous year’s rate of 83.3%, reflecting broader challenges in county budget execution.
Controller of Budget Margaret Nyakango noted several challenges hindering effective budget implementation, including delays in disbursements from the National Treasury, high personnel costs, and underperformance in local revenue collection. These challenges have contributed to the declining absorption rates and have hindered the effective execution of development projects across various counties.
To enhance future budget execution, the report recommends several measures, including developing strategies to increase development expenditures, ensuring timely disbursements of funds from the National Treasury, and improving adherence to financial reporting requirements. Additionally, the report advises counties to minimize unnecessary travel expenses and to prioritize settling pending bills promptly to avoid budgetary constraints.
The report emphasizes the importance of addressing these challenges to improve budget absorption rates and ensure that development funds are used effectively to benefit the residents of each county. The success of counties like Narok and Homa Bay serves as a benchmark for others, demonstrating that with the right strategies and commitment, efficient utilization of development budgets is achievable.
As counties strive to improve their performance, it is essential for both national and county governments to collaborate and address the challenges highlighted in the CBIRR report. By doing so, counties can better utilize their budgets to drive growth, enhance service delivery, and ultimately improve the quality of life for their citizens.
