Controller of Budget (CoB) Margaret Nyakang’o has exposed county governors for spending zero on development and operating multiple bank accounts, allegedly to conceal misuse of funds.
During the first quarter of the Financial Year (FY) 2024/25 covering July 2024 to September 2024, Nyakang’o stated the 47 devolved units received Ksh. 55 billion.
Ksh. 7.3 billion was allocated for development and Ksh. 47.8 billion for salaries and other expenditures.
Among the shocking revelations is that Bungoma County, led by Governor Kenneth Lusaka, operates 300 accounts with commercial banks.
Many of these accounts are not under the Central Bank of Kenya, raising suspicions of irregular spending.
Of these, 145 were for sub-county hospitals, 14 for level four and five hospitals, and 115 for tertiary institutions.
Bungoma Governor Kenneth Lusaka. Photo/ Lusaka
Counties With Multiple Bank Accounts
Baringo County on the other hand operated 292 accounts with commercial banks, 256 of which were for health centres, dispensaries and hospitals.
CoB stated that this is contrary to Regulations 82(1)(b) of the PFM (County Governments) Regulations, 2015, which requires that County government bank accounts be opened and maintained at the Central Bank of Kenya.
“The only exemption is for imprest bank accounts for petty cash and revenue collection bank accounts,” CoB said.
Other counties operating unlawful accounts in multiple commercial banks include Elgeyo Marakwet with 155 accounts, Kajiado with 50, Embu with 46, Kakamega with 44, and Kwale and Migori with 64 and 76 accounts, respectively.
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CoB Exposes Sakaja for Spending Zero on Development
It was also revealed that Governor Johnson Sakaja-led Nairobi County is among 10 devolved units that spent zero shillings on development during the period.
The report, covering the period from July to October, also lists Kajiado, Baringo, Lamu, Uasin Gishu, and West Pokot counties as having recorded zero expenditure on development projects.
In contrast, Kirinyaga and Busia counties achieved higher absorption rates of their respective approved development budgets, each attaining 12 per cent, followed by Siaya and Garissa counties, each attaining 10 per cent.
Counties That Spent High on Development
Narok Governor Patrick Ole Ntutu and Kirinyaga Governor Anne Waiguru led in development spending, allocating Ksh477 million and Ksh378 million respectively.
During the same period, Busia’s Paul Otuoma absorbed Ksh.328 million to development during the four months.
“During the reporting period, the County government’s development expenditure amounted to Ksh6.71 billion, translating to an absorption rate of three per cent of the annual development budget of Ksh205.33 billion. This represented a decline from the four per cent absorption rate realised in a similar FY 2023/24 period when the County Governments’ cumulative expenditure on development activities was Sh6.92 billion,” reads the report.
In addition to operating 17 bank accounts, Bomet Governor Hillary Barchok has been flagged for using a manual payroll to pay personal emoluments totaling Ksh. 27 million, a process prone to abuse.
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Pending Bills
The CoB report also reveals that the issue of pending bills remains unresolved.
The County Governments reported outstanding pending bills of Kshs.168.62 billion, comprising Kshs.129.15
billion for recurrent activities and Kshs. 34.47 billion for development activities.
Nairobi County leads with pending bills amounting to Ksh. 121 billion, followed by Garissa at Ksh. 6 billion owed to service providers.
Kiambu County owes Ksh. 5.9 billion, while Turkana’s pending bills total Ksh. 4.8 billion while Machakos and Mombasa at Ksh.4.42 billion and Ksh.3.93 billion respectively.
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