Controller of Budget Margaret Nyakang’o told the 30th Intergovernmental Budget and Economic Council session that of 47 counties, only 32 of 41 submitted budgets have been cleared. Seven counties are yet to submit, and five received comment letters they have not answered.
Mombasa, Kisumu, Nyandarua, Kirinyaga, Nyeri, Marsabit, Kilifi, and Embu have paid June and July salaries, but the rest have not, forcing some employees to borrow.
Several counties had relied on commercial bank facilities to cover salaries, but these arrangements are collapsing as banks withdraw due to unpaid balances or shift accounts to rival lenders.
In Siaya, a standoff between the executive and county assembly over Finance CEC nominee George Nying’iro delayed the July payroll.
In Kisii, County Secretary Ernest Osoro attributed delays to issues in approving and uploading the budget.
Council of Governors chairperson Ahmed Abdullah argued that counties facing budget stalemates should still access funds for essential obligations, such as salaries, even before full budget clearance.
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The recurring crisis suggests a structural issue rather than a one-time administrative error. IFMIS access is tied to budget compliance as a public finance safeguard. The law requires Controller of Budget approval before counties can access funds, preventing unauthorized spending.
However, the current system creates a binary outcome: full compliance unlocks all funds, including salaries, while any unresolved budget dispute halts workers’ pay entirely. This approach is disproportionate.
This separation-of-powers issue is not clearly addressed in the County Governments Act.
A potential solution lies in Abdullah’s proposal: protect statutory and payroll obligations for partial release, even when a county’s broader budget is unresolved, while maintaining the full IFMIS freeze for discretionary spending.
Without such reform, this issue will likely recur in 2027, and workers with little influence over county-level budget politics will continue to bear the cost.
