PREFACE I am pleased to present the Annual County Governments Budget Implementation Review Report (CBIRR) for the Financial Year (FY) 2017/18. The report has been prepared in conformity with Article 228 (6) of the Constitution of Kenya, 2010 and Section 9 of the Controller of Budget (COB) Act, 2016, which requires the Office of the Controller of Budget (OCOB) to submit to each House of Parliament a report on the implementation of the budgets of the National and County Governments every four month. The report also satisfies Section 39(8) of the Public Finance Management (PFM) Act, 2012, which requires the Controller of Budget to ensure that members of the public are provided with information on budget implementation. This report provides useful information on budget performance by the forty seven County Governments for the period July, 2017 to June, 2018. The data used in preparation of this report is derived from approved budgets, financial reports submitted to the Office of the Controller of Budget by the County Treasuries in line with Section 166 and 168 of the Public Finance Management (PFM) Act, 2012 and reports generated from the Integrated Financial Management Information System (IFMIS). The report also highlights the key challenges faced in budget implementation and instances where the public finance management framework was breached and proposes appropriate recommendations. Preparation of this report has been made possible through concerted efforts of staff from the County Treasuries and the OCOB. I am grateful to all staff who were involved in the preparation of this report. Information provided in this report is useful to all stakeholders involved in public financial management, such as policy makers, legislators, analysts, practitioners, and members of the public. I therefore, urge all readers of this report to engage with the County Governments in order to enhance effectiveness in budget implementation.