Counties risk losing billions as Nyakang'o flags expired funds
Counties
By
Edwin Nyarangi
| Sep 19, 2025
The Controller of Budget, Margaret Nyakang’o, has said that 28 county governments have up to the end of the year to either extend the established funds or create new ones after those initiated in 2014 have elapsed.
In the latest County Governments Budget Implementation Review Report by the Controller of Budget for the Financial Year 2024/25, Nyakang’o said that the devolved units established some funds dating back 10 years ago, which have now lapsed.
The Controller of Budget stated that the 47 county governments have no option but to either extend the period of the established funds if they are to salvage millions of taxpayers’ funds, which are now at risk of being lost.
“Section 116 of the Public Finance Management (PFM) Act 2012 permits county governments to establish additional public funds, provided that these are approved by both the County Executive Committee and the County Assembly,” said Nyakang’o.
According to Regulation 197(1)(i) of the Public Finance Management (County Governments) Regulations 2015, county governments can create public funds with a lifespan of up to 10 years, unless the County Assembly extends this period.
The Controller of Budget noted that in the Financial Year 2024/25, 45 pieces of fund legislation have either lapsed or are nearing lapse in accordance with Regulation 197(1)(i) of the PFM (County Governments) Regulations.
The counties whose funds have lapsed are Bomet, Bungoma, Busia, Elgeyo Marakwet, Embu, Homa Bay, Isiolo, Kajiado, Kakamega, Kiambu, Kilifi, Kirinyaga, Kisii, Kisumu, Kitui, Machakos, Mandera, Marsabit, Migori, Murang’a, Nakuru, Narok, Nyamira, Trans Nzoia, Turkana, Uasin Gishu, Vihiga and Wajir.
“Bomet County Assembly Car Loan and Mortgage Fund, which was established in 2014, has since expired and the County Assembly should enact a new law if the fund is to continue. For Bungoma County, the Youth Women Fund is expiring at the end of this year, which is three months away,” said Nyakang’o.
The Controller of Budget further revealed that the Busia Agriculture Development Fund, County Assembly Revolving Fund and the County Executive Revolving Fund have since expired.
During the examination report by the Senate County Public Investment and Special Funds Committee, it was revealed that the Busia County Agriculture Development Fund has loans that were advanced to farmers and employees and have not been recovered.
Busia County Government is staring at a loss of Sh130 million after it offered loans to some of its employees and cooperative societies, with the county struggling with repealing the law that provided a loophole in disbursing the loans without security and with plans to recover loans whenever defaulted.
The report further lists Kisii County Bursary Fund, Health Fund, MCAs Car Loan and Mortgage and Staff Car Loan and Mortgage Fund as having elapsed, with the funds having been established in 2014.
In Marsabit County, the Enterprise Fund, Car Loan Executive, Executive Mortgage and County Assembly Car Loan Mortgage Fund-Members have since elapsed, as they were all established in 2014.
In Turkana County, the Biashara Fund, County Youth and Women Empowerment Fund, County Cooperatives Enterprise and Development Fund and County Assembly Car Loan and Mortgage Scheme Fund-Members have all elapsed, sinking with them millions of shillings of taxpayers’ money.
Turkana County Government has been unable to recover loans worth more than Sh500 million advanced to women, youth and employees of the county dating back more than four years.
In Narok, the County Bursary Management Fund needs to be extended or a new one established. In Trans Nzoia, the Nawiri Fund has expired. In Vihiga, the Education Fund needs to be extended, while in Wajir, the County Revolving Fund has expired.
In Kakamega County, the County Alcoholic Drinks Control Fund and County Assembly Members’ Car Loan and Mortgage Fund have elapsed, while in Kiambu, the County Executive Mortgage and Car Loan Fund has expired.