By David Bogonko Nyokang’i
Kisii County has come under scrutiny over poor revenue collection, a bloated wage bill, pending bills and low absorption of development funds.
A review by Controller of Budget Margaret Nyakang’o on budget implementation during the first nine months of the 2025/26 financial year found that the county collected only Sh352.49 million in own-source revenue against an annual target of Sh1.47 billion, representing just 24 per cent of the projected revenue.
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According to Nyakang’o’s Budget Implementation Review Report for the period ending March 31, 2026, the weak revenue performance constrained budget implementation and financing of county programmes, prompting calls for stronger revenue mobilisation and prudent expenditure management.
“The County should address its own-source revenue performance to ensure the approved budget is fully financed. Appropriate austerity measures should be implemented to ensure expenditure commitments are aligned with available revenue,” Nyakang’o said.
The report shows that Kisii County spent Sh2.36 billion on development programmes during the review period, up from Sh1.16 billion spent during a similar period in the previous financial year. However, the expenditure translated into a development absorption rate of only 27 per cent.
Nyakang’o attributed the low absorption rate to delays arising from the transition between the Integrated Financial Management Information System (IFMIS) and the Electronic Government Procurement (e-GP) system, which slowed implementation of development projects.
The Controller of Budget also flagged outstanding trade payables amounting to Sh591.05 million as of March 31, 2026, noting that the County Treasury had failed to adhere to its own payment plan despite committing to clear pending bills during the financial year.
“The County leadership should address the situation of trade payables to ensure that genuine bills are paid promptly in the remaining financial year. Further, compliance with the Trade Payables Action Plan should be enforced,” she said.
The report further highlights concerns over the county’s wage bill, which stood at Sh4.84 billion, accounting for 43 per cent of total county revenue—well above the 35 per cent ceiling stipulated under the Public Finance Management (County Governments) Regulations, 2015.
“The Controller of Budget recommends that county governments maintain their employee compensation expenditure at sustainable levels and comply with Regulation 25(1)(b) of the Public Finance Management (County Governments) Regulations, 2015,” Nyakang’o stated.
She also raised concerns over the continued use of a manual payroll system by the County Assembly. Personnel emoluments amounting to Sh14.79 million for newly recruited staff, including salary arrears, were processed outside the Government’s Human Resource Information System (HRIS).
Nyakang’o urged the county to expedite migration to the automated payroll platform and strengthen human resource management.
“The Government requires that salaries be processed through the HRIS system, and the County is advised to fast-track the acquisition of Unified Personnel Numbers for its staff. The County Public Service Board should regulate staff engagement on contract and casual terms as provided under Section 74 of the County Governments Act, 2012,” she said.
The report also revealed that the county’s Bursary Fund had exceeded its legally prescribed lifespan under Public Finance Management regulations, rendering it ineligible for further withdrawals unless its legal status is renewed.
“The County should ensure timely review and extension of public funds whose lifespans are nearing expiration or have lapsed to prevent operational disruptions. Additionally, any expenditure from lapsed funds should cease immediately, and legal mechanisms should be followed to re-establish or wind up such funds in compliance with the Public Finance Management Act,” Nyakang’o said.
Further compounding the county’s revenue challenges, the report shows that Kisii had uncollected own-source revenue receivables amounting to Sh621.78 million as of March 31, 2026.
“The Controller of Budget recommends that the County Government institute measures to collect the outstanding receivables in order to meet revenue targets and implement budgeted programmes,” she said.
Despite the concerns, the report noted strong performance in several programmes. Village Roads Services under the Department of Roads and Public Works recorded a development budget implementation rate of 105 per cent, while the Purchase of Machinery programme achieved 94 per cent. On the recurrent side, ECDE Services attained a 100 per cent absorption rate.
However, programmes such as Veterinary Services, Fisheries, Housing Management, Trade and Investment Promotion, and Devolved Services recorded minimal or no budget absorption, largely due to procurement delays linked to the transition from IFMIS to the e-GP system.
Nyakang’o urged the county government to strengthen financial management, improve revenue mobilisation, accelerate implementation of development projects, clear pending bills and fully comply with public finance laws to enhance service delivery and safeguard public resources.
