Introduction
FY 2020/2021
This is a commentary on the most recent budget implementation reports by the county government from the Office of the Controller of Budget Kenya. The reports were prepared and released on Sep 2021.
The total budget for all the 47 counties in Kenya was Ksh. 501 billion out of which KES 186 billion was for development projects and Ksh. 314 billion was for recurrent expenditure.
Total expenditure for all counties in FY 2020/2021 was Ksh. 398 billion. This was an absorption rate of 79.3 percent of total county budgets.
A total of KES 116 billion was spent on development projects (62.1% absorption rate). This is an increase from Ksh. 105.92 billion or 55.6% in FY 2019/2020.
A total of Ksh. 176 billion was spent on salaries, wages and allowances (Personnel emoluments) ;
OWN SOURCE OF REVENUE
CGS generated Ksh. 34.44 billion which was 64.2 percent of the annual target of Ksh. 53.66 billion;
Challenges identified
- High expenditure on wages, salaries and allowances; 44.2 % of the total expenditure;
- Underperformance on OWN Source of Revenue collection; 64% of annual target;
- Low expenditure on development budget (62.1%)
- Weak budgetary controls and
- Use of revenue at source;
- High expenditure on local travel costs;
- High pending bills;- Ksh. 96 billion as at 30th June 2021;
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