County Budget Allocates Sh1,000 Million for manufacturing Development in Nairobi

Nairobi County Revises Budget, Earmarks KSh 1.3 Billion for Pending Bills
NAIROBI, Kenya — Nairobi City County has revised its 2024/25 budget upwards by KSh 905 million, bringing total estimates to KSh 44.7 billion, up from the original KSh 43.6 billion. The supplementary budget allocates KSh 32.9 billion to recurrent expenditure and KSh 12.08 billion to development projects, reflecting a KSh 3.09 billion increase in recurrent spending alongside a KSh 2.1 billion reduction in development allocations. The county has earmarked KSh 1.3 billion to begin clearing a substantial backlog of pending bills, which stood at KSh 121.06 billion as of September 2024, accounting for 62% of total pending obligations across all counties.
The revised budget will be financed through multiple channels, including an expected KSh 20.85 billion from equitable revenue shares from the national government, KSh 1.3 billion in conditional grants, KSh 351 million from the liquor board, KSh 1.9 billion from previous year cash balances, and projected own-source revenue of KSh 20.06 billion. Nairobi County’s Finance Committee noted that while the supplementary estimates did not provide a full rationale, the reallocations within sectors aim to ensure uninterrupted service delivery. Key adjustments include KSh 150 million for the emergency fund, KSh 400 million for the school feeding programme, and KSh 300 million for the procurement of essential health commodities.
Analysts highlight that Nairobi, along with nine other counties, faced significant challenges in development expenditure in the first quarter of the year, with absorption rates dropping to 3%, down from 4% the previous year. The revised budget seeks to balance debt servicing and operational needs while maintaining investment in development projects. Other counties with large pending bills include Garissa (KSh 6.07 billion), Kiambu (KSh 5.9 billion), Turkana (KSh 4.78 billion), Machakos (KSh 4.42 billion), and Mombasa (KSh 3.93 billion). County officials have underscored that the reallocation is critical for ensuring that departments function smoothly and meet the city’s service delivery obligations.