The Commission on Revenue Allocation has urged counties to contain staffing costs and strengthen payroll management, warning that recurrent spending can squeeze the resources available for development.
Its review of county fiscal strategy papers for 2026/27 recommends expenditure controls and workforce management for counties exceeding the personnel-cost threshold. It also calls for staffing frameworks grounded in evidence about the employees each county needs.
The report describes measures proposed by counties themselves, including payroll audits, recruitment restrictions, redeployment and automation. These county proposals should be distinguished from the commission’s overarching recommendations.
CRA also calls for more predictable transfers from the national government and stronger collection of county revenue. Delayed transfers and unrealistic revenue forecasts can disrupt services even where an approved budget appears balanced.
The review does not announce a nationwide retrenchment exercise or identify employees who have been dismissed. The next decisions rest with the responsible county institutions and must be assessed against their actual budgets and staffing plans.
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WHAT TO WATCH NEXT
- County budget and payroll measures responding to the CRA recommendations.
- The timing of national transfers and county own-source revenue.