THE REPUBLIC OF KENYA COUNTY GOVERNMENT OF NYAMIRA COUNTY ASSEMBLY FIRST ASSEMBLY FOURTH SESSION

Transcription

1 THE REPUBLIC OF KENYA COUNTY GOVERNMENT OF NYAMIRA COUNTY ASSEMBLY FIRST ASSEMBLY FOURTH SESSION THE FINANCE AND ECONOMIC PLANNING COMMITTEE REPORT ON THE COUNTY BUDGET ESTIMATES FOR THE FINANCIAL YEAR 2016/2017 JUNE, 2016

2 PREFACE Mr. Speaker Sir, on behalf of the members of Finance and Economic Planning Committee and as required under Standing Order No. 207(5) and Section 131 of the Public Finance Management Act, 2012, it is my pleasant duty and privilege to present to this House the committee s report on the County Budget Estimates of Revenue and Expenditure for the financial year 2016/17 as submitted to this House on 29 th April Mr. Speaker Sir, this is the fourth report of the committee on Finance and Economic Planning on County Annual Estimates. Hon. Members, this report is a key instrument in the budget process as it seeks the approval, of this House, of the county expenditure for the financial year 2016/17. Mr. Speaker Sir, in accordance with Standing Order 207 (3 & 4), the Estimates having been tabled were deemed to have been committed to the County Assembly Sectoral Committees to deliberate upon according to their respective mandates, which they did and made their recommendations to the Committee on Finance and Planning. Mr. Speaker Sir, pursuant to Standing Order 207 (5), Section 125(2) and 131(2) of the Public Finance Management Act, 2012 and Article 201 of The Constitution of Kenya (2010), the committee conducted a public participation exercise on the budget estimates in our sub-counties (Kitutu Masaba, North Mugirango, West Mugirango and Borabu) on 20 th May, The views of the public are incorporated. The committee continues to urge the citizenry to proactively participate in all county financial matters as provided for in the Constitution of Kenya (2010). Mr. Speaker Sir, once approved, this report shall not only inform the preparation of the Nyamira County Appropriation Bill, 2016,but also guide the implementation of development programmes and provision of in the financial year 2016/17. Page 1 of 27

3 Committee Membership Mr. Speaker Sir, the current membership of the Finance and Economic Planning committee is as follows; 1. Hon. James K. Sabwengi Chairperson 2. Hon. Zipporah K. Osoro Vice Chairperson 3. Hon. Andrew J. Magangi Member 4. Hon. James Peter Maroro Member 5. Hon. Samuel N. Nyanchama Member 6. Hon. Beauttah N. Omanga Member 7. Hon. Kenneth Nyameino Member 8. Hon. Benson Sironga Member 9. Hon. Robinson B. Mocheche Member 10. Hon. Thaddeus M. Nyabaro Member 11. Hon. James N. Mating a Member 12. Hon. Alfayo M. Ngeresa Member 13. Hon. Fred N. Omayio Member 14. Hon. Naomi N. Ondieki Member 15. Hon. Jane M. Nyamache Member Page 2 of 27

4 Table of Contents PREFACE... 1 Committee Membership... 2 Table of Contents... 3 Mandate of the Committee... 5 Examinations of the Annual Estimates... 5 Acknowledgements... 6 I. INTRODUCTION... 7 a. Overview... 7 b. Review of Compliance of the Budget Estimates to existing Legislation... 7 c. Legal Compliance of the 2016/17 Budget Estimates... 7 d) Recent Economic Developments... 8 e. Key Highlights in the 2016/17 Budget... 9 II. REVIEW OF BUGET ESTIMATES b. Departmental allocations as Submitted by the County Treasury III. PROPOSED BUDGET ESTIMATES PER DEPARTMENT a. THE COUNTY ASSEMBLY b. THE COUNTY EXECUTIVE c. DEPARTMENT OF FINANCE AND ECONOMIC PLANNING d. AGRICULTURE, LIVESTOCK AND FISHERIES e. ENVIRONMENT, WATER, ENERGY AND NATURAL RESOURCES f. EDUCATION AND ICT g. HEALTH SERVICES h. DEPARTMENT OF LAND, HOUSING AND URBAN DEVELOPMENT i. TRANSPORT, ROADS AND PUBLIC WORKS j. TRADE, COOPERATIVE DEVELOPMENT, TOURISM AND INVESTMENT k. YOUTH, GENDER, SPORTS, CULTURE AND SOCIAL SERVICES l. COUNTY PUBLIC SERVICE BOARD m. PUBLIC ADMINISTRATION AND CO-ORDINATION OF DECENTRALIZED UNITS IV. SUMMARY OF BUDGET ESTIMATES V. RECOMMENDATIONS Page 3 of 27

5 LIST OF TABLES Table 1: Total County Revenue Table 2: Allocations as Submitted by the County Treasury Table 3: Vote Table 4: Vote Table 5: Vote Table 6: Vote Table 7: Vote Table 8: Vote Table 9: Vote Table 10: Vote Table 11: Vote Table 12: Vote Table 13: Vote Table 14: Vote Table 15: Vote Table 16: Proposed Estimates Page 4 of 27

6 Mandate of the Committee Mr. Speaker Sir, the Finance and Economic Planning Committee was established under Standing Order No.187 and is mandated to do the following; (a) investigate, inquire into and report on all matters related to coordination, control and monitoring of the of the county budget, (b) discuss and review the estimates and make recommendations to the County Assembly; (c) examine the County Budget Policy Statement presented to the County Assembly; (d) examine Bills related to the national budget, including Appropriations Bills; and (e) Evaluate tax estimates, economic and budgetary policies and programmes with direct budget outlays. Mr. Speaker Sir, pursuant to Standing Order No. 207(5), the Committee discussed and reviewed the Budget Estimates of Revenue and Expenditure for the financial year 2016/17 and has made recommendations taking into account the provisions of the Constitution of Kenya (2010), The Public Finance Management Act, 2012 and the Allocation of Revenue Bill, Examinations of the Annual Estimates Mr. Speaker Sir, in reviewing the Estimates of Revenue and Expenditure for the financial year 2016/17, the committee held two workshops during which the County Executive Committee member for Finance and Economic Planning and other County Executive Committee Members were invited to submit their views and clarify on specific issues as pointed out by the committee. Mr. Speaker Sir, the committee also received submissions from the County Assembly Sectoral Committees and held extensive discussions with their chairpersons on the budgetary requirements and allocations of county departments within their purview. The recommendations arising from these deliberations are included in this report. Page 5 of 27

7 Acknowledgements Mr. Speaker Sir, the committee extends sincere gratitude to all representatives from the Executive arm of the County Government and in particular the County Budget & Planning Unit who appeared before the committee and also acknowledges the insightful contributions by various stakeholders and the general public. The committee is particularly grateful to all the Members of the County Assembly who participated in the process and worked tirelessly to ensure that the work was accomplished within the stipulated timeframe. Lastly, the committee wishes to thank the Offices of the Speaker, the Clerk of the County Assembly as well as the County Assembly Budget Office for the support received as it discharged its mandate of reviewing the budget estimates. Mr. Speaker Sir, it is therefore my pleasant duty and privilege, on behalf of the Finance and Economic Planning Committee, to table this Report and recommend it to the House for adoption. Signed Hon. James K. Sabwengi, Chairperson, Finance and Economic Planning Committee. Date:. Page 6 of 27

8 I. INTRODUCTION a. Overview 1. Mr. Speaker Sir, the budget presents the final stage of planning with a clear blue print detailing the programmes, sub-programmes, work plans and itemized summaries for every county department for the purpose of delivery of the much needed to the people of Nyamira in the financial year 2016/17 and over the medium term. b. Review of Compliance of the Budget Estimates to existing Legislation 2. Mr. Speaker Sir, Standing Order No. 207(1) and Section 129(2a) of the Public Finance Management Act, 2012, requires that the County Treasury submits to the County Assembly, county budget estimates and supporting documents by 30 th April of each year. Similarly, by the same date, the Clerk of the County Assembly is also required to prepare and submit to the County Assembly the budget estimates for the County Assembly. 3. Mr. Speaker Sir, indeed, both the County Treasury and the Clerk of the County Assembly did submit their budget estimates on the 29 th April, 2016 and therefore did comply with the said sections. However, the committee observes that even though the County Treasury conformed to the legal requirement on the deadline of submission of the budget estimates, in future, the County Treasury should consider submitting the estimates earlier. This will enable the County Assembly to have ample time to review the estimates. c. Legal Compliance of the 2016/17 Budget Estimates 4. Mr. Speaker Sir, in reviewing the compliance of the 2016/17 budget estimates to the provisions of the Constitution of Kenya (2010) and the Public Finance Management Act, 2012, the committee established that broadly, the document had adhered to the legal requirements save for a few which include inter alia, i. It is not stated within the programmes what is recurrent and what is development expenditure ii. In his submissions, the Executive Committee member for Finance and Economic Planning failed to specify measures taken by the county government to implement any recommendations made by the county assembly with respect to the budget for the previous financial year Page 7 of 27

9 iii. The County Treasury, to a large extent, failed to submit crucial documents to support the budgetary estimates despite various attempts from the Committee requesting for the same. 5. Mr. Speaker Sir, when such information is lacking, it makes it difficult for Members of the County Assembly to make informed decisions on the budget. It is our considered view, that the County Treasury must live up to its obligations for us to be able to synergize. d) Recent Economic Developments 6. Mr. Speaker Sir, the committee takes cognizance of recent local, national and international economic developments and of major concern in the international scene is the exit of Britain from the European Union. As you are aware, Nyamira County is by and large an agricultural economy and among the leading exporters of tea. This exit means Kenyan exporters of products like horticulture, coffee and tea are now likely to earn less. To good news though, Kenya and other tea exporters may now have increased demand to export tea directly to other countries within European Union and with the shilling appreciating against the pound, British goods will be cheaper to buy. However, this exit has sent shocks to all major economies and its volatility will have to be monitored closely by the national government to safeguard our local economies from unprecedented effects. 7. Mr. Speaker Sir, in the national scene, the ongoing construction of the standard gauge railway and upgrade of national trunk roads to bitumen standard is geared towards ease of movement of goods throughout the country. Once completed, our county will also enjoy great returns from the quick movement of agricultural products from our farms to value addition sites and subsequently to local and international markets. 8. Mr. Speaker Sir, locally, the county government has embarked on a comprehensive plan towards upgrading Nyamira town and other major towns with the ongoing construction of parking slots along our main roads and the addition of more street lights to promote a 24-hour economy. The department of health has also commenced the construction of an 80-bed amenity wing that shall substantially improve access to healthcare for the people of Nyamira. Page 8 of 27

10 e. Key Highlights in the 2016/17 Budget Mr. Speaker Sir, the committee has earmarked funds for the following core interventions inter alia, Oxygen Plant Banana Tissue Culture Laboratory Manga Stadium Nyamaiya Stadium Fish Hatcheries Youth Economic Empowerment Stimulus Programme Education Bursary Fund Mainstreaming of Special Interest Groups (the elderly and people living with disabilities) Page 9 of 27

11 II. REVIEW OF BUDGET ESTIMATES a. County Revenue 8. Mr. Speaker Sir, in reviewing these estimates, the committee took note of the following; The total amounts indicated as revenue sources do not represent a true picture of our total revenues. The committee, in further consultation with the County Treasury, communications from the Commission on Revenue Allocation and The Senate of the Republic of Kenya, established the correct revenue amounts as captured in Table 1 below; Table 1: Total County Revenue REVENUE SOURCES 2015/16 AS SUBMITTED (Kshs.) CORRECT AMOUNTS Unspent Balances 788,732, ,294, ,722,791 Equitable Shareable Revenue 4,154,538,019 4,482,799,531 4,482,799,531 DANIDA 23,920,000 23,920,000 11,960,000 Compensation User fee forgone 13,945,233 11,578,458 11,578,458 Free Maternal Health Care 79,942,800 82,174,925 82,174,925 Roads Maintenance Levy Fund 52,776,448 68,878,185 68,878,185 Leasing of Medical Equipment 95,744,681 95,744,681 95,744,681 Loans and Grants - 11,960,000 - Local Revenue 240,958, ,983, ,983,801 Kenya Devolution Support Programme - World Bank ,275,445 TOTAL REVENUE 5,450,558,859 5,854,334,444 5,935,117, Mr. Speaker Sir, the committee observed that the County Treasury has consistently over the years set low revenue targets that they hardly ever achieve. This is a worrisome trend as the county has to undergo a perennial budget deficit leaving crucial programmes underfunded year in year out. With the likelihood of our share of the revenue raised nationally being pegged on our local revenue, the county stands to lose either way. The county directorate of Revenue MUST now ensure that proper strategies and measures are put in place for the county to meet its local revenue targets. Page 10 of 27

12 b. Departmental allocations as Submitted by the County Treasury A closer scrutiny of the departmental allocations revealed serious computational errors in some of the departments total allocations, as captured in Table 2 below; Table 2: Allocations as Submitted by the County Treasury NO DEPARTMENT AS CORRECT VARIANCE SUBMITTED TOTAL 1 County Assembly 540,275, ,275,000-2 County Executive 422,188, ,188,775-3 Public Service, 239,206, ,206,387 4,999,900 Administration and coordination 4 Finance & Economic 669,941, ,941,429 - Planning 5 Agriculture, Livestock and 296,027, ,027,090 - Fisheries 6 Environment, Water, Energy 312,263, ,263,743 6,000,000 & Natural Resources 7 Education and ICT 447,566, ,566,227-8 Health Services 1,585,765,561 1,821,143, ,378,146 9 Lands, Housing and Urban 116,740, ,740,165 - Development 10 Roads, Transport and Public 601,922, ,827,489 7,905,102 Works 11 Trade, Cooperative 127,817, ,817,109 - Development, Tourism & Investments 12 Youths, Gender, Sports, 214,800, ,800,938 - Culture & Social Services 13 County Public Service Board (CPSB) 55,041,387 55,041,378 - Totals 5,629,556,298 5,883,839, ,283, Mr. Speaker Sir, with the variance in the Table 2 above, the efficacy of the estimates could not be established. The committee through the County Assembly Budget office conducted a detailed analysis of the amounts allocated to programmes and made appropriate adjustments as it deemed fit. Page 11 of 27

13 III. PROPOSED BUDGET ESTIMATES PER DEPARTMENT 11. Mr. Speaker Sir, having reviewed the budget estimates, the following is a summary of the proposed allocations to programmes under every county department. a. THE COUNTY ASSEMBLY Table 3: Vote 5261 S/N PROGRAMMES OBJECTIVES SUB-PROGRAMMES 2016/ CP 1.1 Policy planning, general administration and support CP 1.2 Oversight CP 1.3 Legislation and Representation Improve service delivery Ensure that there is value for money allocated to each County department Appropriate legislation and representation CSP Administration and support CSP Policy and planning CSP Infrastructural development CSP Monitoring, Evaluation & Coordination CSP Legislation and representation 352,714,085 33,071,500 55,000,000 90,240,040 12,685,000 TOTALS 543,710,625 Page 12 of 27

14 b. THE COUNTY EXECUTIVE Table 4: Vote 5262 S/N PROGRAMME SUB- PROGRAM 1 Policy Advisory and planning, Press support general. administration and support Legal 2 Governance and coordination General administration and support County results and Liaison Services Executive Function management and liaison Activities 2016/2017 County branding, publicity and 18,980,000 awareness campaigns, Political research, economic research and advises Dealing with litigation issues in the county, 14,190,759 providing legal advisory, Court attendances and Process servings Facilitation of office operation activities, 326,838,904 Policy planning and development Tracking the performance of various 13,308,799 county entities Coordinating all county executive affairs 31,746,718 TOTAL 405,065,180 Page 13 of 27

15 c. DEPARTMENT OF FINANCE AND ECONOMIC PLANNING Table 5: Vote 5263 S/N PROGRAMME OBJECTIVES SUB-PROGRAMMES 2016/ Policy planning, General administration and Support Economic planning, Budgeting and Co-ordination County Financial Management and Control Services Enhancing institutional efficiency and effectiveness in service delivery Strengthen policy formulation, planning, community awareness and resource allocation. General administration and Support Services 239,160,768 Policy development and planning 8,070,700 Economic Planning 30,032,200 Budget formulation and management 40,000,000 Community development and special funding 61,148,218 Accounting and To ensure quality Financial Services 8,890,000 financial resources enhancement, Quality Assurance/Audit Services 10,854,800 control and Supply Chain advisory Management 4,510,000 Resources Mobilization 45,540,000 TOTAL 448,206,686 Page 14 of 27

16 d. AGRICULTURE, LIVESTOCK AND FISHERIES Table 6: Vote 5264 S/N PROGRAMMES OBJECTIVES SUB-PROGRAMMES 2016/ CP 1.1 Policy planning, general administration and support CP 1.2 Crop, agribusiness and land management CP 1.3 Fisheries development and promotion CP 1.4 Livestock promotion and development Improve customer service delivery by 20% of the performance Improve the food security status by 10% and contribute to poverty reduction among 20,000 farmers in the county Increase fish farming and consumption and making it an economic enterprise in the county Improve livestock productivity by 30% and ensure safe animal products for human consumption CSP General administration and support 144,875,052 CSP Policy and planning 31,686,000 CSP Crop development 98,015,538 CSP Aquaculture promotion CSP Livestock products value addition and marketing CSP Animal health disease and management 24,393,000 32,100,000 21,075,600 TOTALS 352,145,190 Page 15 of 27

17 e. ENVIRONMENT, WATER, ENERGY AND NATURAL RESOURCES Table 7: Vote 5265 NO PROGRAMME OBJECTIVES SUB-PROGRAMME 2016/ Policy Planning Enhancing institutional General Administration and 120,622,579,General Administration and Support Services efficiency and effectiveness service delivery. Support Services Policy and Planning 3,879,000 2 Water Supply and Management Services 3 Environmental Protection and Management. 4 Energy and Mineral Resources Improve and Sustain Access to Water Supply and Services for Productivity and Sustenance To promote the rehabilitation, reclamation, conservation and protection of urban area catchments and natural resources for sustainable development Promote development through energy development Rural Water Services (Water Supply Infrastructure) Major town water management. 140,881,208 11,676,380 Pollution and Waste Management 7,026,800 Agro forestry Promotion (Forest Conservation and Management ) 7,424,600 Energy resources development 37,360,000 Mineral Exploration and Mining Promotion 554,400 TOTAL 329,424,967 Page 16 of 27

18 f. EDUCATION AND ICT Table 8: Vote 5266 NO PROGRAMME 1. GENERAL ADMINISTARTIVE SUPPORT SERVICES & POLICY PLANNING AND SUPPORT SERVICES 2. INFORMATION AND COMMUNICATION TECHNOLOGY 3. VOCATIONAL EDUCATION AND TRAINING 4. ECDE AND CCC DEVELOPMENT SERVICES OBJECTIVES Enhancing institutional efficiency and effectiveness in Policy implementation and service delivery. Embracing ICT in all government operations To establish and improve infrastructure and strengthen collaboration and partnership in Vocational institutions To establish and improve infrastructure and strengthen collaboration and partnership in ECDE and CCC centers TOTAL SUB 2016/17 PROGRAMME General Administrative Support 260,556,418 Policy Planning and Support Services Infrastructure Development Improved Informal Employment ECDE Management and Infrastructure Support Services 19,150,400 20,963, ,303,583 72,045, ,018,901 Page 17 of 27

19 g. HEALTH SERVICES Table 9: Vote 5267 PROGRAMMES OBJECTIVES SUB-PROGRAMMES 2016/17 CP 1.1 Preventive and promotive health CSP Disease surveillance and response CSP Environmental Health 13,611,300 7,565,500 CP 1.2 Curative health CP 1.3 Policy planning,general administration and support To provide effective framework and environment that supports implementation of health by 90% To provide quality diagnostic, curative and rehabilitative by 80% Enhancing institutional efficiency and effectiveness in service delivery by 80% CSP Health promotion 1,431,500 CSP community Health 925,000 CSP Malaria control 12,122,850 CSP Tuberculosis and Lung disease 7,925,350 CSP HIV Control 5,867,722 CSP Maternal and Child Health 275,377,600 CSP Medical Services CSP General Administration and Support Services CSP Policy Development and Planning 525,715, ,995,211 23,951,200 TOTALS 1,844,489,197 Page 18 of 27

20 h. DEPARTMENT OF LAND, HOUSING AND URBAN DEVELOPMENT Table 10: Vote 5268 PROGRAMME OBJECTIVES SUB PROGRAMMES 2016/2017 CP 1.1 Policy To strengthen delivery CP 1.1 General planning, and quality of administration and 36,897,138 general support administration CSP 1.2 Policy and and support Planning 2,836,000 CP 1.2 Lands, Physical planning and surveying CP 1.3 Urban development & Housing To provide a spatial framework for socioeconomic development of the county Ensure proper management and improved infrastructure for service delivery in towns TOTAL CSP 1.3 Physical planning 9,740,400 CSP 1.3 Lands and Surveying 11,875,716 CSP 1.3 Town management and coordination CSP 1.4 Housing improvement 48,732,000 25,668, ,750,166 Page 19 of 27

21 i. TRANSPORT, ROADS AND PUBLIC WORKS Table 11: Vote 5270 PROGRAMME OBJECTIVES SUB PROGRAMME 2016/2017 P.1 General Administration, Policy Planning Enhancing institutional efficiency and SP.1.1 Administration and Support Services 116,779,436 and Support effectiveness in Services service delivery SP.1.2 Policy and 15,865,000 P.2 Road Transport Services Improvement of transportation, safety and access to road network for goods & mankind planning SP. 2.1 Construction of Roads and Bridges 52,309,683 SP. 2.2 Rehabilitation & Maintenance of Roads 340,910,402 TOTAL 525,864,521 Page 20 of 27

22 j. TRADE, COOPERATIVE DEVELOPMENT, TOURISM AND INVESTMENT Table 12: Vote 5271 NO PROGRAMMES OBJECTIVES SUB- 2016/17 PROGRAMMES 1 CP 1.1 general Improve customer service CSP administration, delivery by 20% of the support 2017 performance General administration 37,998,650 and Policy planning, and support CSP Policy and planning 4,748,000 2 CP 1.2' Trade,Cooperative and Investment development and promotion Entrenchment of good governance and best business management practices in CSP 1.1.1Cooperative promotion 21,382,742 cooperative societies and SMEs Enhance access to affordable credit facility and improve on entrepreneurial skills CSP Trade promotion 33,052,900 3 CP 1.3 Tourism promotion and Development Enhance good trade practices through inspection of weighing machines, trading premises and market products Enhance revenue collection and market sanitation To Deepen Tourism Management and marketing To map and protect tourism sites CSP Consumer protection 1,993,000 CSP Market development 22,920,000 CSP Tourism promotion and management CSP Tourism development 6,787,300 1,580, ,462,592 Page 21 of 27

23 k. YOUTH, GENDER, SPORTS, CULTURE AND SOCIAL SERVICES Table 13: Vote 5272 S/N PROGRAMME OBJECTIVES SUB PROGRAMMES 1 POLICY Personnel General PLANNING, emoluments, administration GENERAL operations & and support ADMINISTRATION maintenance. AND SUPPORT SERVICES 2 CULTURAL DEVELOPMENT AND PROMOTION 3 PROMOTION AND MANAGEMENT OF SPORTS Enhancing institutional efficiency and effectiveness in implementation and service delivery. Adherence to set up legal framework To appreciate cultural expression, and promotion of a reading culture. To increase safety in alcohol consumption To promote and develop talent. Policy and planning. Mainstreaming of Special interest groups 2016/17 64,347,603 1,399,500 87,956,000 Cultural Promotion Heritage. 14,856,971 Alcohol licensing and 1,542,000 control Sports talents development and promotion. 147,476,900 TOTAL 317,578,974 Page 22 of 27

24 l. COUNTY PUBLIC SERVICE BOARD Table 14: Vote 5273 S/N PROGRAMME OBJECTIVES SUB-PROGRAMMES 2016/17 1 Policy planning, Enhancing General General institutional administration and administration efficiency and Support Services 49,998,164 and Support effectiveness in service delivery Policy development and planning 20,811,200 TOTAL 70,809,364 Page 23 of 27

25 m. PUBLIC ADMINISTRATION AND CO-ORDINATION OF DECENTRALIZED UNITS Table 15: Vote 5274 NO PROGRAMME OBJECTIVES SUB PROGRAMMES Policy Personnel General planning, emoluments, administration general operations & and support administration maintenance. and support Enhancing Policy and institutional planning. efficiency and effectiveness in implementation and service delivery. Adherence to set up Human Resource Management and Development legal framework Improve resourcing, competencies and capacity of staff 2016/17 182,107,936 15,808,800 Human Resource Management and 22,674,719 Field coordination and administration 70,000,000 TOTAL 290,591,455 Page 24 of 27

26 IV. SUMMARY OF BUDGET ESTIMATES Table 16: Proposed Estimates Vote No. Department Recurrent Development Total % 5261 County Assembly 488,710,625 55,000, ,710,625 9% 5262 County Executive 405,065, ,065,179 7% 5263 Finance and 413,333,913 34,872, ,206,686 8% Economic Planning Agriculture, Livestock 184,524, ,620, ,145,190 6% and Fisheries 5265 Environment, Water, 138,594, ,830, ,424,967 6% Energy & Natural Resources 5266 Education & ICT 391,424, ,594, ,018,901 9% 5267 Health Services 1,347,335, ,153,400 1,844,489,197 31% 5268 Land, Physical 49,652,854 86,097, ,750,166 2% Planning, Housing and Urban Development 5270 Transport & Public 150,338, ,525, ,864,521 9% Works, 5271 Trade, Tourism and 64,129,392 72,333, ,462,592 2% Co-operatives Development 5272 Youth, Gender, 163,584, ,994, ,578,974 5% Culture and Social 5273 County Public 70,809,364-70,809,364 1% Service Board 5274 Public Administration & Coordination of Decentralized Units 214,591,455 76,000, ,591,455 5% TOTAL 4,082,095,098 1,853,022,719 5,935,117, % 69% 31% Page 25 of 27

27 V. RECOMMENDATIONS 12. Mr. Speaker Sir, all County Departments must now embark on timely implementation of key county programmes and more especially development projects to avoid last minute rush and lengthy procurement processes towards the end of the financial year. The county department of Roads, Transport and Public Works is particularly put on notice for having failed to deliver its mandate during the financial year 2015/16. Executive Committee Members and Chief Officers that demonstrate inability to deliver key programmes shall be brought to account. 13. Mr. Speaker Sir, the review of the budget estimates has been quite a challenge due to lack of enough information on the status of 2015/16 budget implementation. The Integrated Financial Management Information system (IFMIS) is operational and the County Treasury has direct access to this information and therefore there should be no delays when submitting this information. The committee recommends that the Office instills immediate measures of complying with Constitutional timelines or the County Assembly will be left with no option but to exact relevant sanctions. 14. Mr. Speaker Sir, going forward the County Treasury MUST strive to come up with a realistic budget and avoid the overestimation of revenues and expenditures. This, Hon. Members, reduces the credibility of budget. Having a realistic macro-economic framework is vital for ensuring there is predictability in the budget. In 2016/17 it is obvious that the County Treasury did not base its budget on a solid basic assumption. 15. Mr. Speaker Sir, during sectoral committees meetings with their line departments, it was noted that a number of officials in the line ministries were not aware of the changes in the budget estimates. The committee therefore recommends that the County Treasury builds adequate capacity and better consultation before making their presentations to the County Assembly. 16. Mr. Speaker Sir, there s need for the County Executive and in particular the County Treasury to familiarize itself with the Public Finance Management Act, 2012, the County Budget making cycle/timeframes, the Page 26 of 27

28 format of budget estimates and the roles of the County Executive vis-à-vis the County Assembly for ease of processing of budget estimates. 17. Mr. Speaker Sir, the passage of this budget estimates marks a phenomenal day on county governance and in particular on the management of public finances. We are now on the fourth year of devolution and the achievements witnessed cannot be naysaid. The 47 devolved governments received a fair share of functions from the central government albeit with limited resources. There has always been a push for decentralization of more resources to the county governments. So far, this pressure has borne no fruit and as counties we must continue piling pressure for more resources. 18. Mr. Speaker Sir, the committee was at pains to approve projected employment in the coming financial year given the limited resources. For the purpose of improving service delivery to our people, the committee resolved to allow the recruitment of only core positions. 19. Mr. Speaker Sir, That said, as a House, we cannot relent on our oversight role. We must continue, as we have always done, to closely monitor the implementation of the county budget with mutual cooperation while respecting the principle of separation of powers. The County Assembly Sectoral Committees are therefore reminded to oversee the implementation of these estimates upon the adoption of this report. 20. Mr. Speaker Sir, The Committee recommends that this House resolves:- i. To approve the Finance and Economic Planning (Budget & Appropriations) Committee Report on the County Budget Estimates for the Financial Year 2016/17. ii. To approve a total expenditure of Kshs.5,935,117,817to meet the expenditure during the Financial Year 2016/2017 in respect of votes in Table 16. Page 27 of 27