Speaking during a county governance forum, Ottichilo said the current classification unfairly limits counties’ ability to demonstrate investment in critical sectors that directly improve the lives of residents.

“Funds spent on education and health should be considered development expenditure because they contribute directly to human capital development,” Ottichilo said.

The governor noted that county governments are often under pressure to meet statutory thresholds on development spending, yet significant resources devoted to improving healthcare services and supporting education are classified as recurrent expenditure.

According to Ottichilo, the existing framework fails to recognize the long-term economic and social benefits generated through investments in healthcare and education.

He argued that spending on medical personnel, healthcare programmes, vocational training and other education-related initiatives strengthens human capital and should therefore be regarded as development-oriented investments.

“Human capital is one of the most important pillars of development. When we invest in health and education, we are building the capacity of our people and creating the foundation for economic growth,” he said.

The proposal comes amid ongoing debates over county finances and the balance between recurrent and development expenditure.

Under current public finance management guidelines, counties are required to allocate a significant portion of their budgets to development projects, while expenditure on salaries, operations and service delivery is largely categorized as recurrent spending.

Ottichilo maintained that the classification should be reviewed to reflect modern development priorities especially as counties increasingly shoulder responsibilities in healthcare delivery and skills development.

The governor said a revised approach would provide a more accurate picture of how devolved units contribute to national development and could encourage greater investment in social sectors.

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