Controller of Budget Margaret Nyakang’o has raised the alarm over county governments diverting funds meant for approved projects, with a new report showing that 43 devolved units failed to adhere to their expenditure plans.

Her latest review, covering the first half of the 2024/25 financial year, found that only Lamu, Mandera, Taita Taveta, and West Pokot stuck to their approved work plans.

The rest withdrew funds for specific purposes but later redirected them elsewhere, raising concerns about weak financial controls.

“While the approved requests for withdrawals from the relevant CRFs are well supported, the CoB has noted frequent non-adherence to the Exchequer work plans by county governments, which results in weak fiscal discipline,” Nyakang’o stated.

The report highlights how counties obtain approvals after submitting payrolls for salaries and project details for development spending.

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However, once the money is withdrawn, it is often reallocated to other uses.

“Further, given that the exchequer process is mainly manual, it is challenging to tie approved requests and supporting work plans to actual expenditures,” she added.

Between July and December 2024, all 47 counties sought approval to withdraw Sh182.05 billion from their revenue accounts, yet their reported spending stood at Sh184.83 billion—exceeding the approved limits.

Recurrent expenditure was set at Sh150.22 billion, but counties spent Sh151.26 billion, while development allocations of Sh31.82 billion were surpassed, hitting Sh33.56 billion.

The report does not explain how counties managed to spend beyond the approved limits or whether these figures include balances from previous financial years.

Nairobi City County apparently had approval for Sh13.7 billion but recorded spending Sh13.67 billion by the end of December.

These findings have put a spotlight on financial accountability at the county level, raising questions about expenditure tracking and the effectiveness of budget oversight mechanisms.