The Senate has released its inaugural County Financial Performance Measurement Index (CFPMI), exposing widespread fiscal imbalance across the country’s decentralized governance units. The landmark report, developed by the Parliamentary Budget Office, reveals that only six out of Kenya’s 47 counties complied with the Public Finance Management (PFM) Act’s legal requirement to dedicate at least 30% of their annual budgets to capital development during FY 2024/25.
The findings highlight a stark divide between a small group of financially disciplined devolved units and a broader landscape where rising administrative costs and payroll expenses continue to crowd out critical public investments.
Leading the nation in financial compliance was Kwale County, which achieved a top performance score of 1.000. It was followed by Embu (0.916), Kericho (0.849), Mandera (0.815), Siaya (0.814), and Uasin Gishu (0.813). These top-performing “Grade A” counties were commended for maintaining strict fiscal management and prioritizing long-term infrastructure and essential public services over operational overhead.
Conversely, the report outlines severe budget mismanagement across much of the country. While seven counties narrowly missed the mandatory 30% development spending mark, 27 counties received a “Grade D” rating due to insufficient capital allocations.
More concerningly, seven counties allocated less than 15% of their total budgets less than half the legally required minimum to development projects. These bottom performers include Nandi, Vihiga, Kisumu, Elgeyo Marakwet, Nairobi City, Nyamira, and Taita Taveta, which recorded the lowest score nationwide at just 7.82%.
Nairobi ranked among the worst performers for the second consecutive year, driven primarily by persistent high recurrent expenditure.
Unveiling the annual report, top Parliamentary leaders emphasized that the CFPMI introduces a data-driven accountability framework designed to move public finance oversight beyond political debate.
Senate Majority Leader Aaron Cheruiyot, Senate Speaker Amason Kingi, and Senate Clerk Jeremiah Nyegenye called on county leadership to ensure that increased national revenue allocations which rose from KSh 370 billion in FY 2022/23 to KSh 428 billion translate directly into visible public infrastructure and improved service delivery for local communities.
