The Controller of Budget has flagged Nairobi City County’s rising wage bill, warning that excessive spending on salaries and allowances is crowding out development expenditure.
In her first-quarter report for the 2025/2026 financial year, Controller of Budget Dr Margaret Nyakang’o revealed that the county spent Ksh4.7 billion, representing 69 per cent of its revenue, on staff compensation between July and September.
During the period, the Johnson Sakaja-led administration received Ksh6.6 billion, comprising Ksh3.4 billion from the national government as equitable share and Ksh2.5 billion from own-source revenue.
The report shows the county collected Ksh470 million from county-run hospitals, Ksh408 million from parking fees, and more than Ksh300 million each from building permits and business licences.
Nairobi spent Ksh5.3 billion on recurrent expenditure, including wages and operational programmes, while only Ksh202.2 million was allocated to development projects.
Employee compensation alone stood at Ksh4.79 billion, with the health sector accounting for Ksh2.03 billion, or 42 per cent of the total wage bill.
The County Assembly also spent Ksh12.7 million on committee sitting allowances for MCAs. Dr Nyakang’o has now urged the county to regulate contract and casual employment and fully adopt the HRIS system to control payroll costs.
