NAIROBI CITY COUNTY BUDGET ESTIMATES ANALYSIS FOR THE FY 2014/ What is the total for Nairobi City County s Budget estimate?

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1 NAIROBI CITY COUNTY BUDGET ESTIMATES ANALYSIS FOR THE FY 2014/15 1. What is the total for Nairobi City County s Budget estimate? The total proposed budget for the FY 2014/15 budget stands at Kshs billion of which 62.8 percent (18.7 billion) is financing recurrent expenditure and 9.03 billion (30.24 %) is Developmental, 2.04 billion (6.8 %) going towards debt repayment and Kshs. 24 million budgeted for the emergency fund. Figure 1: Nairobi County s total budget estimates FY 2014/15 All counties should have an emergency fund in their budgets to provide for disasters. Currently Nairobi County has budgeted for Kshs. 24 million. This is well below the Kshs. 596 million (up to 2 percent of the county revenue) the county can spend to respond to unforeseen disaster.

2 2. Where is the money coming from? Figure 2: Sources of Nairobi City County Budget As indicated in Figure 2 above, Nairobi County s 2014/15 budget will be largely financed through own revenue raising measures 1 at Kshs billion. Fig 3: Nairobi City County Own Revenue performance FY 2013/ Ks hs. (B illi on This financial year (2014/15) the county intends to raise an additional Kshs. 3.9 billion. Last Financial year, Out of the budgeted 14.8 billion own revenue, as of the third quarter (March 2014), the county had only managed to collect Kshs. 7.8 billion (52.7 per cent) 2. The low performance by the County raises concern on the ability of the County Government to meet its local revenue targets which is likely to affect the implementation of planned activities and 1 The county s own revenue raising measures will stem from Rates, Single business permits, Building permits, Car parking fees and other revenue sources 2 Nairobi City County Budget Estimates for the financial year

3 programmes. To this effect, Counties will need to look for alternative sources of funds or revise their budgets downwards if this trend is not addressed. To fund the gap between resources that county governments are able to generate through their own revenue raising capabilities, and resources required to carry out the assigned responsibilities as spelled out in the Fourth Schedule, the county envisions the national government will transfer Kshs billion. The County Allocation of Revenue Bill (CARA), 2014 shows a significant difference. The Nairobi County Fiscal Strategy Paper gives an estimate of Kshs billion while the CARA gives a total of Kshs billion (Kshs in equitable transfers and 1.97 billion in conditional grants. 3. Where is the money going? Nairobi county government is structured around the main 11 sectors 3 of service delivery. Fig 4: Nairobi City County structure and sector allocation FY 2014/15 a. Recurrent Expenditure Recurrent Expenditure are items that are used up in the process of providing services. It would include wages and salaries, stationery, drugs for health service, general office supplies and so on. 3 Governor s Office, Trade and Enterprise Development, Water Sanitation and Energy,Environment and Natural Resources, Health, Agriculture, Fisheries and Livestock Development, Education, Youth Affairs, Sports, culture and Social Services, Public Works, Roads and Transport, Physical Planning, Lands and Housing, Public Services Management, Finance and Economic Planning, and ICT, E-government and Public Communication.

4 The pie chart below shows that of the total Kshs.20.7 billion total recurrent expenditure, Kshs billion or 66.2 percent of the recurrent expenditure going towards Personnel Emoluments. Operations and maintenance 4 is expected to take 23.7 percent (Kshs. 4.9 billion), Emergency Fund 0.1 percent while Debt repayment is equivalent to 9.8 percent of the recurrent budget Fig 5: Nairobi City County Recurrent Expenditure FY 2014/15 b. Development Projects Funded in the FY 2014/15 Development expenditure is spending on assets, the purchase of items that will last and will be used time and time again in the provision of goods or services to the public such as building of a new hospital, the purchase of new computer equipment or networks, building new roads and so on Table 1: Nairobi City County Development expenditure 4 Include items such as travel costs, Accommodation, catering services, general office supplies, expenditure on Board, Committees, Seminars and conferences, purchasing office furniture and fittings, Exchanges & other communication equipment, Computers, Printers and other IT equipment, Maintainace expenses, Constituency Office Expenses, Telephone, Telex, facmile and mobile services, Subscription to newspapers, magazines and other publications, Laundry Expenses and Emergency relief

5 1 COUNTY ASSEMBLY County Assembly COUNTY PUBLIC SERVICE BOARD Purchase of Equipment Renovations (Office Partitioning), Net Working, Cabling and Security Doors TOTAL GOVERNOR'S OFFICE EXECUTIVE & ADMINSTRATION Purchase of vehicles (Fleet) / Leasing of Vehicles Rehabilitation of City Hall Annexe Modernisation of Central Registry Rehabilitation of City Hall toilets INSPECTORATE DEPARTMENT Communication Base station V.H.F equipment Construction of a new training facility (DAGORRETTI TRAINING SCHOOL) Construction of dog kennels Rehabilitation of country bus offices PUBLIC RELATIONS UNIT Radio station FIRE DEPARTMENT 3 No. Water Boozers Purchase of fire engines 3No Construction of New fire stations TOTAL DEPUTY GOVERNOR'SOFFICE DECENTRALIZATION Expansion and rehabilitation of sub county offices to house sub county administrators and other officers Furniture and fittings TOTAL

6 5 ICT,E-GOVERNMENT AND PUBLIC COMMUNICATIONS ICT Computerisation Of County Facilities TOTAL FINANCE & ECONOMIC PLANNING TREASURER DEPARTMENT Renovation of offices Purchase of Computers and other IT equipment Revaluation of asset and Asset Tagging IFMIS Implementation AUDIT Renovation of offices Purchase of Computers and other IT equipment PROCUREMENT Renovation of offices Purchase of Computers and other IT equipment IFMIS Implementation/Networking ECONOMIC PLANNING E-Promise and monitoring & evaluation Economic Survey and Development of Sector Plans TOTAL WATER,ENERGY,FORESTRY,ENVIROMENT & NATURAL RESOURCES WATER PROJECTS Rehabilitation of Nairobi Dam ENVIROMENT DEPARTMENT 40NO refuse vehicles Containers for garbage collection in informal settlements Improvement of Dandora Dumpsite

7 CAT Doxer d Backhoe Tractor & gyramower Ride on Mower TOTAL HEALTH UPGRADE OF MUTUINI HOSPITAL REHABILITATION OF 6 HEALTH CENTRES Purchase of ambulances and utility vehicles/ Leasing UPGRADE OF MAMA LUCY HOSPITAL UPGRADE OF MBAGATHI HOSPITAL PUMWANI MATERNITY HOSPITAL TOTAL PHYSICAL PLANNING,LANDS & HOUSING URBAN PLANNING, HOUSING AND LAND Intergrated City Development Masterplan E-Construction, E-Development permits & E-Inspection AD- manager Urban Renewal-Consumables Regularization of Plans HOUSING DEVELOPMENT Rehabilitation of offices (HDD) Valuation Preparation of the valuation roll Acquisation of tittles for fixed assets SURVEY AND GIS (LAND) Land resources & property management/ administration for sustainable urban development TOTAL PUBLIC WORKS AND INFRASTRUCTURE

8 Improvement of Public Transport, Traffic management, Parking & Road Safety & NMT Facility (On Going) Traffic Management Systems New Public Transport Projects Non Motorised Transport Facility Ward Development Projects (Ksh.15M per Ward) Road Projects (On Going) Roads Maintenance Roads & drainage Purchase 0f Motor Vehicle & Machineries Construction of Motorable & Foot Bridges 2 Street Lighting installations (On Going) Street Lighting installations Street Lighting Materials TOTAL EDUCATION,YOUTH,AFFAIRS,SPORTS,CULTURE & SOCIAL SERVICES SOCIAL SERVICES DEPARTMENT WELFARE & RECREATION REHABILITATION OF JOSEPH KANGETHE CENTRE TO A MODERN RESOURCE CENTRE/SPORT FACILITIES REHABILITATIN OF 6NO. SOCIAL HALLS FAMILY WELFARE SECTION CONSTRUCTION OF PERIMETER WALL AT MJI WA HURUMA RENOVATION OF OLD HOSTELS AT MJI WA HURUMA LIBRARY SECTION FACELIFT AND AUTOMATION OF MCMILLAN LIBRARY

9 SPORTS DEPARTMENT CONSTRUCTION OF ULTRA MODERN INDOOR FACILITY AT CITY STADIUM FENCING,LANDSCAPPING AND CONSTRUCTION OF CHANGING ROOMS AT WOODLEY GROUNDS EDUCATION,CHILDREN AND YOUTH TECHNICAL AND VOCATIONAL TRAINING DEPARTMENT CONSTRUCTION OF ONE TWIN WORKSHOP AT KANGEMI YOUTH POLYTECHNIC CONSTRUCTION OF 1NO. KITCHEN AND DINING HALL AT KIWANJA YOUTH POLYTECHNIC CONSTRUCTION OF 4NO. CLASSROOMS AT BAHATI TRAINING CENTRE CONSTRUCTION OF 6NO. TOILETS AT KIWANJA,KANGEMI AND WAITHAKA CENTRES INSTALLATION OF 6NO. WATER TANKS AT KIWANJA,KANGEMI AND WAITHAKA CENTRES PURCHASE OF EQUIPMENTS TECHNICAL & VOCATIONAL TRAINING CENTRES ICT College in Embakasi REHABILITATION OF OFAFA AND BAHATI TRAINING CENTRES/ NEW WORKSHOPS CHILDREN SECTION CONSTRUCTION OF A REHABILITATION CENTRE AT RUAI ONESTOP YOUTH TRAINING AND RESOURCE CENTRE RENOVATION OF YOUTH CENTRE PRIMARY AND ECD CONSTRUCTION & REHAB OF ECD CENTRES

10 TOTAL TRADE AND ENTERPRISE DEVELOPMENT Wholesale fresh produce hub Building of markets and enterprise lanes Rehabilitation of markets TOURIST INFORMATION CENTER Resettlement of NAMSIP Projects Weights and measures-calibration Equipments Trade and Investment Fund TOTAL PUBLIC SERVICE MANAGEMENT BIOMETRIC ID CARDS AND BADGES HUMAN RESOURCE CENTRE ESTABLISHMENT OF WELLNESS CENTRE (COUNSELLING UNIT) DIGITIZATION OF PERSONELL RECORDS REGISTRY TOTAL AGRICULTURE & LIVESTOCK DEVELOPMENT Rehabilitation,Construction of buildings and residential buildings GRAND TOTAL Key requirements of the PFM Act and the Constitution Key requirements Compliance Comments 1. Division of Revenue and County Allocations of Revenue bills 2. The county government's recurrent expenditure shall not exceed the county government's total revenue 3. Over the medium term a minimum of thirty percent of the Not Complied The process is still under review. Should have been approved by March 16 th Complied Recurrent Expenditure Kshs billion. County government total revenue Kshs billion Complied Recurrent Expenditure which includes the county emergency

11 county government's budget shall be allocated to the development expenditure 4. County government's expenditure on wages and benefits for its public officers shall not exceed a percentage of the county government's total revenue as prescribed by the County Executive member for finance Percentage not prescribed. PFM regulations under review fund and the debt repayment is 69 percent while Development Expenditure 30% of the county government s budget Currently the county is spending % of the county governments expenditure on compensation of employees 5. Every county government shall ensure that its level of debt at any particular time does not exceed a percentage of its annual revenue 6. Establishment of a County Emergency Fund 7. Submission of the County Fiscal Strategy Paper Percentage not prescribed. PFM regulations under review Kshs billion will be paid out this financial year leaving Kshs billion still outstanding. Complied All counties should have an emergency fund in their budgets to provide for disasters. Currently Nairobi county has budgeted for Kshs. 24 million to respond to unforeseen disaster. Complied For the FY 2014/15 Nairobi County had this plan before the drafted budget 8. Publishing and publicising the County Fiscal Strategy Paper within seven days after it has been submitted to the county assembly 9. Submission of the Integrated Development Plan Not Complied Not Complied The Public not able to access this information timely For the FY 2014/15 Nairobi County has not submitted this plan before the drafted budget 10. Publishing and Publicising of the Development Integrated Plan 11. Submission of budget estimates by the 30th April in that year Not Complied To be done within seven days after its submission to the County Assembly Complied Submitted on the 30 th April Publishing and Publicising of budget estimates Not Complied The budgets are not readily accessible to the public Although the county did prepare the County Fiscal Strategy Paper (CFSP), which specifies the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the next three years,

12 Prioritization of resources is supposed to be based on the County Integrated development Plan (CIDP). Even with the county wide public consultation forums, Without the 5-year plan that informs the investment initiatives of the county, any development initiatives, and all known projects to be implemented within the county begs the question on how the county will comprehensively identify priorities in the budget estimates for the financial year 2014/15.