Money meant to improve services in Kenya’s capital is increasingly being used to meet wage obligations, raising concern about the financial direction of Nairobi County.
A recent expenditure review by the Controller of Budget shows that a large share of the county’s income is going to salaries and allowances, leaving very little for development and basic services that residents depend on every day.
During the period between July and September, Nairobi County received a total of Ksh6.6 billion from the National Treasury and its own revenue sources. Out of this amount, Ksh4.7 billion was spent on staff compensation. This means close to seven shillings out of every ten were used to pay workers.
As a result, only a small portion of the budget was left to address key needs such as road repairs, waste collection, health services, and other development projects. Records show that just Ksh202.2 million was directed to development during the same period, while overall recurrent spending rose to Ksh5.3 billion.
The Controller of Budget, Margaret Nyakang’o, warned that this pattern of spending is not sustainable. She noted that if the county continues to prioritise wages over investment, it may find itself trapped in a cycle where salaries consume most of the budget year after year. This situation has increased pressure on Governor Johnson Sakaja to explain how his administration plans to restore balance in county finances without disrupting service delivery.
The health sector stands out as one of the biggest drivers of the wage bill. In only three months, salaries in the health department reached Ksh2.03 billion, accounting for 42 per cent of the county’s total wage spending. Yet county hospitals and health facilities generated only Ksh470 million in revenue during that time.
While health workers are essential, the gap between wage costs and available funds has raised questions about staffing levels, allowances, and payroll controls. The report also points to weak management of contract and casual workers, which may be pushing salary costs beyond approved limits.
Spending by the county assembly has also drawn criticism. Members of the County Assembly spent Ksh12.7 million on committee sitting allowances in one quarter. Critics argue that such expenses show poor prioritisation, especially when many neighbourhoods continue to struggle with poor services.
Apart from salaries, Nairobi County has seen a sharp rise in operational and maintenance costs. These expenses increased by more than 200 per cent compared to the same period last year, putting further strain on limited resources. More than half of the small development budget was used in the environment and sanitation sector, including the purchase of heavy machinery worth Ksh150 million.
Although sanitation is important, some observers question whether such spending brings quick relief to residents facing daily challenges.
The county’s financial troubles are made worse by huge pending bills. Nairobi owes contractors and suppliers Ksh82.8 billion, the highest among all counties.
A large portion of this debt is from past administrations, but Ksh20.5 billion has accumulated under the current leadership. Revenue collection remains weak, with unpaid land rates forming a major problem. Out of about 250,000 land parcels, only a fraction regularly pays rates.
Unpaid statutory deductions such as PAYE, NHIF, and NSSF, amounting to Ksh5.25 billion, have added to the pressure. The Controller of Budget has urged the county to tighten payroll controls, clean up staff records, and follow approved staffing levels.
The debate over Nairobi County salaries is now expected to shape decisions on whether the city can shift its focus toward development, accountability, and better services for residents.
