Nairobi County Budget: 2026/27 Allocation, Revenue, Pending Bills and Audit

Updated 17 October 2026

Nairobi City County runs the biggest county budget in Kenya, but it also carries by far the largest pile of unpaid bills. This page pulls together the official numbers: the 2026/27 allocation from the national government, how the county collected and spent money in 2025/26 according to the Controller of Budget, and what the Auditor-General queried in the county’s most recent audited accounts.

Nairobi’s Allocation for 2026/27

Under the County Allocation of Revenue Act, 2026, Nairobi City gets an equitable share of KSh 22.11 billion for 2026/27, the largest of any county. National government grants add KSh 0.68 billion and development partner grants KSh 0.15 billion, for a total of KSh 22.94 billion. In 2025/26 the equitable share was KSh 21.42 billion. See how this compares with the other 46 counties on our county allocations 2026/27 page.

The 2025/26 Budget in Numbers

The Controller of Budget’s annual county report for 2025/26 (published August 2026) shows:

• Approved budget: KSh 44.62 billion, of which KSh 13.42 billion (30 per cent) was for development and KSh 31.2 billion for recurrent spending.
• Total revenue received: KSh 37.92 billion, 85 per cent of the budget, up 5.3 per cent on 2024/25.
• Own-source revenue: KSh 15.54 billion against a target of KSh 21.58 billion, about 72 per cent. That was 14.9 per cent more than the KSh 13.53 billion collected in 2024/25.
• Total spending: KSh 33.10 billion, of which only KSh 3.82 billion went to development. That is 28.5 per cent of the development budget.

Where Nairobi’s Own Revenue Comes From

Unlike most counties, Nairobi raises almost as much money itself as it receives from the national government. The largest streams in 2025/26 were:

• Land rates: KSh 3.42 billion collected against a KSh 6.75 billion target (50.7 per cent).
• Single business permits: KSh 2.73 billion against KSh 3.2 billion (85.4 per cent).
• Hospital collections under Facility Improvement Financing: KSh 2.87 billion, more than double the KSh 1.24 billion target.
• Parking fees: KSh 1.80 billion against KSh 3 billion (60 per cent).
• Building plans and inspections: KSh 1.67 billion against KSh 3.07 billion (54.4 per cent).
• Billboards and adverts: KSh 748 million. House rents: KSh 654 million, the only major stream above target.

The county also reported revenue arrears of KSh 59.09 billion at 30 June 2026, of which KSh 51.34 billion (87 per cent) is unpaid land rates and KSh 5.64 billion is wayleave charges owed by Kenya Power.

Wages and Unpaid Bills

Salaries are Nairobi’s single biggest cost. Personnel costs came to KSh 17.82 billion in 2025/26, or 51.3 per cent of total revenue, well above the 35 per cent ceiling in the county finance regulations. The Controller of Budget notes that the county processed salaries for only 10 months of the year, leaving May and June 2026 unpaid, and that the executive used a bank overdraft with a balance of KSh 3.26 billion at year end to cover salaries.

Unpaid bills to suppliers and others (trade payables) stood at KSh 83.10 billion at the start of the year. The county executive paid KSh 8.41 billion during 2025/26, but the total still rose to KSh 86.90 billion by 30 June 2026 (KSh 85.78 billion for the executive and KSh 1.12 billion for the County Assembly). About 73 per cent of the executive’s bills are more than two years old, and KSh 44.36 billion of them relate to staff costs. The county also reported 57 stalled projects worth KSh 2.24 billion.

What the Auditor-General Queried

The Auditor-General gave the Nairobi City County Executive a qualified opinion on its accounts for the year ended 30 June 2025, the same opinion given to 44 of the 47 county executives. The summary report on county governments for 2024/25 lists these queries against Nairobi:

• Pending bills of KSh 88.01 billion at 30 June 2025, 40 per cent of all county pending bills in Kenya.
• Voided transactions of KSh 6.21 billion, the highest of any county.
• Payments of KSh 8.37 billion classed as avoidable or wasteful, such as penalties and interest.
• Procurement irregularities on contracts valued at KSh 2.77 billion.
• Imprests of KSh 612.77 million not surrendered on time, and bank balances of KSh 524.56 million without supporting documents.
• No up-to-date fixed assets register, and ownership documents for land and motor vehicles not provided.

An audit query is a matter the county must explain. It does not mean money was stolen. The county responds to the County Assembly and the Senate’s public accounts committee, which can clear a query or recommend action.

What the Controller of Budget Recommends

The Controller of Budget asked Nairobi to set realistic revenue targets, treat pending bills as a first charge on the 2026/27 budget and pay them oldest first, move every worker onto the government payroll system (it says it will not approve manual payroll in 2026/27), stop recording spending under the catch-all “other operating expenses” line, and finish viable stalled projects.

If you supply the county, check open Nairobi tenders on our tenders in Kenya today page. For county health facilities, see SHA hospitals in Nairobi.

Frequently Asked Questions

What is Nairobi County’s budget?

Nairobi’s approved budget for 2025/26 was KSh 44.62 billion. For 2026/27 it receives KSh 22.94 billion from the national government and development partners, and adds its own revenue on top.

How much does Nairobi County collect in revenue?

KSh 15.54 billion in own-source revenue in 2025/26, including KSh 2.87 billion of hospital collections, according to the Controller of Budget.

How much does Nairobi County owe in pending bills?

KSh 86.90 billion at 30 June 2026, according to the Controller of Budget.

What audit opinion did Nairobi get?

A qualified opinion for the year ended 30 June 2025.

Sources: Controller of Budget, County Governments Budget Implementation Review Report for FY 2025/26 (August 2026); Auditor-General, Summary Report on County Governments 2024/2025; Parliamentary Budget Office, Budget Explainer FY 2026/27.