20 counties report zero expenditure on development, Audit
20 counties report zero expenditure on development in the First Quarter of the Financial Year 2022/2023
20 counties report zero expenditure on development in the First Quarter of the Financial Year 2022/2023.
An audit by the Controller of Budget revealed that at least 20 counties failed to declare any expenditure on development activities.
The counties did not report any expenditure on development activities, possibly as a result of the difficulties in establishing new county administration following the August elections, according to the County Government’s Budget Implementation Review Report for the First Quarter of the Financial Year 2022/2023.
Dr. Margaret Nyakang’o did point out that the largest ratio of development expenditure to authorized yearly development budgets was reported in the counties of Narok, Vihiga, and Nyamira.
“County governments reported expenditures of Sh2.22 billion towards development activities, representing an absorption rate of 1.4 per cent of the cumulative annual development expenditure budget of Sh160.58 billion. Twenty-three counties did not report any expenditure on development activities during the period under review,” read the audit in part.
The development budget for Baringo County was Sh4.49 billion. However, it did not spend any costs for the development programs in the first quarter of FY 2022/23.
In contrast to a comparable time in FY 2021–2022, when the county spent Sh154.24 million, Bomet County did not record any expenditures on development programs.
Despite having a budget of Sh3.84 billion for development during the reporting year, Bungoma County did not disclose any expenditures on development programs.
Busia County also did not report any expenditure on development programmes.
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Other counties that reported zero expenditure on development projects include Elgeyo Marakwet, Embu, Garissa, Isiolo, Kakamega, Kilifi, Kisumu, Makueni, Mandera, Marsabit, Migori, Nairobi, Nandi, Siaya, Tharaka Nithi, Trans Nzoia, and Uasin Gishu.
The Controller of Budget recommended county governments to create and put into action plans to maximize the use of money designated for development activities in the remaining fiscal year.
She added that county governments should make sure that the minimum established ceiling of 30% of their budgets is met for spending on development programs.
According to the audit, county governments generated Sh6.17 billion in own-source revenue in the first quarter of FY 2022–23, which was 10% of the yearly objective of Sh57.01 billion and below expectations of 25% of the annual target.
Counties as of September 30, 2022, reported pending bills amounting to Sh161.36 billion.
These comprised Sh127.38 billion for recurrent expenditure and Sh33.98 billion for development expenditure.
The Controller of Budget noted that the National Treasury delayed in disbursing the equitable share of revenue to counties.
County governments as per the audit were allocated Sh370 billion as the equitable share of revenue raised nationally to finance their budgets in the FY 2022/23.
“As of September 30 2022, the National Treasury had disbursed a total of Sh40.74 billion as equitable share for the FY 2022/23 and Sh29.6 billion, which was arrears of equitable share from the previous financial year,” read the report.
The Sh40.74 billion disbursed by the National Treasury audit revealed represented 11 per cent of the allocation for the FY 2022/23 of the Sh370 billion.
At the end of the First Quarter, counties had not received Sh20.31 billion, which was the allocation for August 2022.
Also read,
List of Counties that spend zero funds on Development in 2021/2022 First Quarter
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