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More counties increase development spending

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More counties increase development spending


The Secretary of the Cabinet of the National Treasury, Ukur Yatani, during the launch of the Economic Study Report 2021 on September 9, 2021. PHOTO NMG

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Summary

  • More counties spent money on development during the first nine months of the financial year ending June 30, 2021, compared to a similar period a year earlier, a Treasury report shows, raising expectations for growth in units transferred. .
  • Kajiado, Kakamega, Kitui, Mandera, Makueni, Marsabit, Mombasa, Murang’a, and Wajir spent more than 30 percent of their budgets on projects in the first three quarters of fiscal 2020/2021, an improvement over the previous year.

More counties spent money on development during the first nine months of the financial year ending June 30, 2021, compared to a similar period a year earlier, a Treasury report shows, raising expectations for growth in units transferred. .

Kajiado, Kakamega, Kitui, Mandera, Makueni, Marsabit, Mombasa, Murang’a, and Wajir spent more than 30 percent of their budgets on projects in the first three quarters of fiscal 2020/2021, an improvement over the previous year.

“Compared to the 2019/20 financial year, this is an increase from the five county governments that had exceeded 30 percent in actual development spending during the first nine months,” Treasury said.

Marsabit topped the list of actual development spending with 37.4 percent, followed by Kajiado (35.5 percent), Mandera (33.6 percent), Kakamega (33.4 percent), Murang’a ( 33.1 percent), Makueni (32.5 percent), Mombasa (31.3 percent). ), Wajir (31 percent) and Kitui (30.4 percent).

Baringo, Lamu and Nairobi were the biggest spenders during the period with 7.9, 7.7 and 1 percent, respectively.

The report also showed an improvement in the allocation of development budgets by counties, countering a trend in previous years when more funds were spent on recurring expenses.

The Treasury said that all counties except Nairobi complied with the legal requirement on allocating budgets for development during the review period.

Section 107 (b) of the Public Finance Management Act of 2012 requires that in the medium term, a minimum of 30 percent of each county’s government budget be allocated to development expenditures.

The report also shows that the overall absorption rate (actual spending on budget) for county governments combined for the first nine months of fiscal year 2020/21 was 44.2 percent, which is lower than the rate. absorption in fiscal year 2019/20. by 4 percent.

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