How power play in counties kills what devolved system promises

While devolution was designed to bring government closer to the people, many county leaders have become symbols of corruption, waste, and impunity.

The promise was simple: shift key services and resources to the counties to empower local leaders to drive progress and improve citizens' lives. Yet, years into the devolution experiment, the reality is marked by chest-thumping, corruption, mismanagement, and political chaos.

Counties have made some progress in healthcare, education, agriculture, and infrastructure. However, they have also become breeding grounds for the very issues devolution was meant to solve. The picture is grim, as local officials, despite their influence and resources, increasingly disregard accountability. 

“We have been urging governors to begin to recognise theft of public funds as an existential threat to devolution and to implement accountability measures as routinely advised by oversight bodies,” said Ethics and Anti Corruption Commission spokesperson Eric Ngumbi said.

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A state house statement on Monday reiterated President William Ruto's commitment to address challenges affecting counties, citing constraints within the national fiscal framework. These, he said, limit the national government’s ability to fully meet devolved units’ expectations for transfer of shareable revenue.

“This challenge cannot and should not be mistaken for a lack of commitment to devolution. Rather, it is a temporary difficulty arising from inherited fiscal vulnerabilities and the incomplete implementation of devolution,” he said.

Recent investigations into county financial management have uncovered disturbing trends. The EACC,  Controller of Budget (CoB), Auditor General, and activists have highlighted massive financial mismanagement in counties, raising alarm about the lack of transparency and failure to deliver public services.

A CoB report from September 2024 revealed that counties were operating 2,421 multiple commercial bank accounts which borders on the illegality, up from 2,000 the previous year. 

Among the counties with multiple accounts were Nakuru, with 301, followed by Bungoma (300) and Baringo (292). Nairobi, Narok, and Nyandarua were flagged for failing to disclose their commercial bank accounts altogether, putting county funds at risk of misuse and hindering transparency.

“Analysis of development expenditure as a proportion of the approved annual development budget revealed that ten county governments did not report any expenditure on development programmes,” reads the report.

Nairobi, Narok, and Nyandarua have been flagged for failing to disclose their commercial bank accounts entirely, raising concerns about potential misuse of funds.

The governors, led by CoG Chairperson Ahmed Abdullahi, dismissed the report as "sensational and misleading."

Abdullahi also downplayed the COB 's concerns about counties not spending on development, citing delays in fund disbursements from the National Treasury.

“You cannot spend that which you do not have. This has caused a misleading impression and unwarranted agitation among the members of the public and the media to the detriment of the county governors and their governments,” he stated.

“The Controller of Budget has continued to scandalize counties while she is aware of the challenges with delayed release of funds, most of which are orchestrated by her office. We condemn the unwarranted and unprofessional behaviour on the part of the Controller of Budget in the strongest terms possible. This is a facilitative office that must live up to, and respect its mandate.”

The financial mismanagement extends beyond unauthorized accounts. The Controller of Budget has also raised alarms about excessive spending on travel. In the 2023-2024 financial year, counties spent Ksh.17 billion on travel, despite a government directive freezing non-essential travel.

Notably, counties such as Turkana, Nairobi, and Machakos spent millions on international trips to Dubai, Canada, and China. Critics question the necessity of such expenses, especially when they involve large delegations simply to collect daily subsistence allowances.

Turkana County, led by Governor Jeremiah Lomorukai, allocated Ksh.943.44 million for travel, including Ksh.694.46 million for domestic trips. Nairobi County, under Governor Johnson Sakaja, spent Ksh.861.57 million, with Ksh.328.33 million on foreign travel, including a Ksh.37.23 million trip to Marrakesh with a 19-member delegation.

“Most of these trips are unnecessary. We are not convinced that this level of travel is justified,” said CoB Margaret Nyakang’o.

While travel costs have drawn criticism, the bigger issue lies in the diversion of funds that are meant for development. In the first quarter of the 2024-2025 financial year, counties received Ksh.55 billion, but many failed to allocate funds for development. Some counties, including Nairobi and Kajiado, reported zero spending on development despite receiving billions in government allocations.

The Auditor General's report for the 2022/2023 financial year exposed rampant corruption and mismanagement, with funds being diverted for personal gain or spent inefficiently. Kiambu County, for example, was flagged for Ksh.16.6 million in undelivered goods and unaccounted fertilizer bags. Baringo faced issues with irregular salary payments, while Narok was cited for unconfirmed vehicle purchases and failure to reconcile cash flows.

Deputy Auditor General Isaac Kamau acknowledged that financial mismanagement is widespread, with unqualified staff and weak internal controls across most counties. "We have observed systemic weaknesses in the financial management and staffing of county assemblies and executives," Kamau stated.

The national government has begun pushing for greater oversight. MPs are advocating for laws requiring the Auditor General to audit external revenue collection firms hired by counties, as discrepancies in reported revenues have fueled suspicions of large-scale misappropriation. “If a firm is hired to collect public revenue, its systems must be subject to public scrutiny because these are public funds,” Auditor-General Nancy Gathungu told the Senate Committee.

Pending Bills

Nyakang’o criticized counties for accumulating over Sh.181 billion in pending bills, exceeding wage bill limits, and failing to meet revenue targets in the 2023/2024 financial year.

Nairobi leads with Ksh.118 billion in pending bills, followed by Kiambu at Ksh.6.49 billion, Machakos at Ksh.4.20 billion, Mombasa at Ksh.4.4 billion, and Kisumu at Ksh.3.15 billion. Elgeyo Marakwet recorded the lowest pending bills at Ksh.1.4 million. Kiambu also exceeded the legal wage bill ceiling, spending 41.5% of its revenue on staff compensation.

Kakamega, Bungoma, Busia, and Vihiga were flagged for wage bill issues. Bungoma has Ksh.3.5 billion in pending bills and a wage bill of 47.9%. Kakamega faces Ksh.1.8 billion in pending bills despite receiving Ksh.11.8 billion from the national government. The county failed to follow its payment plan, clearing only Ksh.72 million in pending bills during the year.

Busia has Ksh.1.42 billion in pending bills and a revenue shortfall, raising only Ksh.369 million against a target of Ksh.649 million. Vihiga settled just Ksh.515.56 million of its Ksh.1.47 billion in pending bills.

Nyakang’o urged counties to address pending bills and improve revenue collection to meet budget targets. She recommended austerity measures to align spending with available revenue.

Hadijah Nganyi of the Commission for Revenue Allocation (CRA) noted that counties have the potential to raise Ksh.216 billion—significantly more than the Ksh.60 billion collected last year. She advised counties to improve planning, seal revenue leakages, and automate collection systems.

Siaya and Homa Bay also reported significant pending bills, with Siaya settling Ksh.457.34 million and Homa Bay having an outstanding Ksh.739.12 million at the end of the year. Nairobi, for example, owes Ksh.121 billion in unpaid bills, a staggering figure that highlights the financial chaos gripping many counties. Garissa, Kiambu, and Turkana are also grappling with significant debt burdens. The failure to settle these debts signals a lack of fiscal responsibility among county governments.

Nyakang’o has urged county leaders to prioritize paying off pending bills to avoid further financial strain. “Governors must take responsibility for these unpaid bills,” she said. “If counties continue to ignore their obligations, the consequences will be severe.”

Political Instability in Counties

Away from the financial woes, many counties are also embroiled in political instability.

Governors are often at odds with Members of County Assemblies (MCAs), State House operatives, or even their own political parties.

The latest political turmoil came from Meru County, where Governor Kawira Mwangaza faced impeachment proceedings over abuse of office and misconduct allegations. Although the Senate upheld the charges, the High Court temporarily suspended the decision, citing unresolved legal issues.

“This is not just about one governor,” said political analyst James Njenga. “It’s a broader issue of how county leaders perceive themselves as above the law. There is a culture of impunity, where governors feel they can defy the law and stay in power.”

In Nyandarua, a similar crisis is unfolding, with Governor Moses Kiarie (Badilisha) facing impeachment over allegations of corruption and interference in staff recruitment.

According to a motion prepared by MCA Samwel Mathu, Badilisha is accused of hiring retired civil servants without following proper procedures and demanding kickbacks from suppliers. The motion has sparked division among residents, with some accusing the MCAs of political maneuvering, while others argue that the governor’s actions harm the county’s development.

“The allegations against Badilisha are serious, but we also need to consider the political dynamics at play,” said Nyandarua resident Lucy Njoroge. “Impeachments should not be used as tools for political score-settling.”

Dr. Nyakang’o maintained her stance, insisting that the information in the first quarterly report originated from the counties.

“Each of those figures has been verified thoroughly to ensure accuracy. Granted, every once in a while, there may be a typographical error, but that is as far as it goes…we report factual figures as confirmed by the counties and IFMIS,” she said in an exclusive interview with Citizen TV on December 6.

In a report titled The Report of the Auditor-General on the Council of Governors for the Year Ended 30 June 2023, the Auditor-General outlined a qualified opinion on the financial statements.

The statement of financial position reflects a property, plant, and equipment balance of Ksh.40,533,873, as disclosed in Note 23 to the financial statements. This includes Ksh.31,288,983 for motor vehicles. However, as reported in the previous year, the asset register indicates that three motor vehicles were received by the Council from the Transforming Health Systems (THS) Project using Counter Requisition and Issue Voucher (S11) forms.

“These motor vehicles, however, did not have corresponding logbooks or transfer of ownership documents. As a result, the Auditor-General noted that the ownership of the vehicles and the accuracy of the reported motor vehicle balance of Ksh.31,288,983 could not be confirmed,” the Auditor-General said in the report.

Despite internal struggles, some governors have managed to maintain their positions. Governors Amos Nyaribo of Nyamira and Erick Mutai of Kericho have survived impeachment attempts, often due to strong alliances with local MCAs.

However, these instances of survival are becoming rarer as counties grapple with mismanagement, corruption, and political infighting.

As counties face these challenges, pundits and activists say that the future of devolution in Kenya remains uncertain. Will it become a tool for corruption and waste, or can it fulfill its promise of bringing government closer to the people?

President Ruto believes that devolution remains one of the most transformative pillars of governance in the country.

“To strengthen its foundation, we are addressing key challenges affecting counties, including inherited fiscal vulnerabilities and the incomplete implementation of devolution. To this end, we will complete the transfer of all devolved functions to county governments without delay,” said  Ruto during the 11th National and County Governments Coordinating Summit at State House, Nairobi on Monday.

Senate oversight role

On December 13, the Senate Committee on Devolution and Intergovernmental Relations, chaired by Wajir Senator Mohamed Abbas, met with the Controller of Budget Margaret Nyakang'o to discuss the status of pending bills.

Nyakang’o revealed that county executives and assemblies owe suppliers an accumulated Ksh 185 billion.
Senators have urged the CoB to ensure counties meet their obligations and settle outstanding debts. Nyakang’o explained that several factors, including delays in fund disbursements by the National Treasury, mismanagement, and underperformance in revenue collection, have contributed to the mounting debt burden.