The Controller of Budget has raised concerns over Nairobi City County’s rising expenditure on salaries and allowances, urging tighter controls on staffing and payroll management. The concerns are outlined in the first quarter budget implementation report for the 2025 2026 financial year, covering the period between July and September.
According to the report by Controller of Budget Dr Margaret Nyakang’o, Nairobi County spent a significant portion of its available resources on employee compensation during the three month period. The county used 69 percent of its total revenue on salaries and allowances, amounting to Ksh 4.7 billion. The Controller of Budget noted that this level of spending places pressure on the county’s finances and limits resources available for development and service delivery.
During the first quarter, the Nairobi County government, under Governor Johnson Sakaja, received a total of Ksh 6.6 billion. This amount included Ksh 3.4 billion from the national government as equitable share and Ksh 2.5 billion generated from the county’s own sources. Revenue collection during the period came from several key sectors, with county run hospitals generating Ksh 470 million and parking fees contributing Ksh 408 million. Income from building permits, unified business permits and single business permits exceeded Ksh 300 million each.
The report shows that the county spent Ksh 5.3 billion on recurrent expenditure, which covered staff emoluments and other recurring programmes. In comparison, spending on development projects stood at Ksh 202.2 million during the same period, highlighting a wide gap between operational costs and development investment.
Employee compensation alone totalled Ksh 4.79 billion, representing 69 percent of total expenditure for the quarter. Of this amount, Ksh 2.03 billion was paid to health sector employees, accounting for 42 percent of the county’s overall wage bill. The Controller of Budget pointed out that the health sector remains the largest contributor to personnel costs within the county administration.
The Nairobi County Assembly also incurred expenditure on allowances, spending Ksh 12.7 million on committee sitting allowances for 124 Members of County Assembly. This was drawn from an annual allocation of Ksh 70 million for such allowances.
Operational costs continued to rise, with spending on operations and maintenance reaching Ksh 519.15 million. This represented a 207 percent increase compared to a similar period in the 2024 2025 financial year. The report further indicated that the environment and sanitation department accounted for more than half of the development expenditure. Key purchases included the supply of a medium tracked dozer with a tipper at a cost of Ksh 75 million, alongside another Ksh 75 million for the supply and delivery of an additional medium tracked dozer.
In response to these findings, Dr Nyakang’o called on the county government to improve payroll management. She recommended that all salaries be processed through the Human Resource Information System and that the county fast track the acquisition of unified personnel numbers for all staff to enhance efficiency and accountability. The Controller of Budget also urged the County Public Service Board to regulate the engagement of contract and casual workers and to strictly adhere to the approved staff establishment as required by law.
