COUNTY GOVERNMENT OF NAKURU COUNTY ASSEMBLY OF NAKURU FIRST ASSEMBLY THIRD SESSION ----------------------------- THE FINANCE, BUDGET AND APPROPRIATION COMMITTEE REPORT ON THE 2015 COUNTY FISCAL STRATEGY PAPER ------------------------ MARCH, 2015 1
Introduction Madam Speaker, on behalf of the Members of the Finance, Budget and Appropriation Committee and as required under standing order 209(5) as well as section 117 of the Public finance management Act 2012. I hereby present to the House, the Committee s Report on the 2015 county fiscal strategy paper which was submitted to this house on 27 th February, 2015 Madam Speaker the Finance, Budget and appropriation Committee as currently constituted comprises the following members 1. Hon. Moses Ndungu Kamau, M.C. A Chairperson 2. Hon. Lucy Kihumba, M.C.A Vice chairperson 3. Hon. Jonathan Warothe, M.C.A 4. Hon. Irene Njeri Paul, M.C.A 5. Hon. Beatrice Nyawera, M.C.A 6. Hon. Peter Nderitu Mwangi, M.C.A 7. Hon. Peter Kangethe, M.C.A 8. Hon Eunice Mureithi, M.C.A 9. Hon. Mwaura Njenga, M.C.A 10. Hon. Jane Simita, M.C.A 11. Hon. Leah Serem, M.C.A 12. Hon Rosemary Okwemwa, M.C.A 13. Hon James Tuei, MCA 2
MANDATE OF THE COMMITTEE The Finance, Budget and Appropriation Committee is established under standing order 189 and is mandated to: a) Investigate, inquire into and report on all matters related to coordination, control and monitoring of the County Budget; b) Discuss and review the estimates and make recommendations to the House; c) Examine the County Fiscal Strategy Paper presented to the House; d) Examine Bills related to the County Budget including appropriation Bills and; e) Evaluate tax estimates, economic and budgetary policies and programmes with direct budget outlays. The Finance, Budget and Appropriation Committee is further given legal backing under the Public finance Management Act, 2012 and the constitution article 221. Pursuant to standing order 209 (3), upon being before the House the 2015 County Fiscal Strategy Paper (CFSP) was committed to each Sectoral Committee to deliberate upon and make recommendations to the Finance, 3
Budget and appropriation Committee in relations to their respective mandates. In considering the statement, the Committee consulted each Sectoral Committee and hereby tables a report containing its recommendations on the CFSP to the House for consideration. Further Madam Speaker, pursuant to standing order 209 The Finance, Budget and Appropriation Committee examined and discussed the 2015 county fiscal strategy paper and made recommendations taking into account the provisions of the Article 218 (b) of the constitution 2010 as well as 117 of the Public Finance Management Act, 2012. ACKNOWLEDGEMENT Madam Speaker, The Committee wishes to thank the Office of the Speaker and the Clerk of the County Assembly for the support extended to it in the execution of its mandate as well as to the Members of County Assembly who participated in the process and worked tirelessly to ensure that the work was accomplished within the stipulated timeframe. Further Madam Speaker, the committee is grateful to the representatives from the county treasury who appeared before the committee to shed insight into the sector priorities and there attendant proposed ceilings 4
Lastly Madam Speaker, the Committee is also grateful to the Budget Secretariat for the support received as it discharged its mandate of examining the 2015 county fiscal strategy paper. Madam Speaker, It is therefore my pleasant duty and privilege, on behalf of the Finance, Budget and Appropriation Committee to table this Report and recommend it to the House for adoption. Signed HON. MOSES NDUNGU KAMAU, M.C. A CHAIRMAN, FINANCE, BUDGET AND APPROPRIATION COMMITTEE Date: 17 th March, 2015. 5
OVERVIEW 1) Madam Speaker, the county fiscal strategy paper set out 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 medium term. 2) Therefore Madam Speaker, the 2015 county fiscal strategy paper created a valuable platform for review of the fiscal policy in light of the emerging opportunities and challenges for the county government with a view of improving the efficiency and effectiveness of service delivery to the residents of this county. REVIEW OF THE 2015 COUNTY FISCAL STRATEGY PAPER 3) Madam Speaker, section 117 (1) of the Public Finance Management Act, 2012 requires that the county treasury submit the county fiscal strategy paper to the county assembly by 28 th February of each year. The county fiscal strategy paper submitted shall; i. Have been aligned with the National objectives in the budget policy statement. ii. Specify 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 medium term. 6
iii. iv. Include in its County Fiscal Strategy Paper the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term. Have taken into account the views of the Commission on Revenue Allocation; the public; any interested persons or groups; and any other forum that is established by legislation. LEGAL COMPLIANCE OF THE 2015 COUNTY FISCAL STRATEGY PAPER 4) Madam speaker, in reviewing the compliance of the 2015 County Fiscal Strategy Paper to the provision of the public finance management Act 2012, the Committee established that the document had adhered to the legal threshold set out in the Act. Strategic priorities in the 2015 county fiscal strategy paper 5) Madam Speaker, The 2015 County Fiscal Strategy Paper is the second to be prepared under the devolved government and it seeks to reaffirm the broad policies and strategies outlined in the 2014 county fiscal strategy paper themed as sustaining economic excellence. The six strategic priorities sustained in 2014 County Fiscal Strategy Paper include. i. Creating an enabling environment for business in order to encourage investment growth and expansion of economic opportunities; ii. Development of key infrastructure facilities including roads, water, energy, ICT countywide to stimulate growth, create employment and reduce poverty; 7
iii. Promotion of health services; iv. Promotion of value addition for agricultural produce, environment management and food security; v. Promotion of equitable county and social development for stability and vi. Enhancing governance, transparency and accountability in the delivery of public good and service. SUSTAINING ECONOMIC EXCELLENCE 6) Madam Speaker, Sustaining the economic excellence in 2015/16 requires an ideal environment, in this regard the broad strategic priorities for 2015/16 contained in the 2015 County Fiscal Strategy Paper will provide a framework to consolidate the gains and opportunities realized while at the same time mitigating against challenges and weakness in the fiscal framework experienced in the last two years. This is intended to protect our fiscal position and supports inclusive sustainable growth designed that will bolster economic growth, create opportunities for jobs and secure livelihood of the residents of this county. a) Strategic priority 1: Creating an enabling environment for business and private sector participation in County Economic growth and development. Business Regulatory reforms 8
7) Madam Speaker, the county intends to continue spearheading reforms in policy and legislative framework covering licensing, revenue sharing, taxation and sustainable use of the National resources within the County to ensure that there is a conducive environment that nurtures business startups, eliminate bottlenecks in regulatory frameworks and promote a market driven business environment. Madam speaker this is not feasible in an insecure environment, therefore the county will continue complimenting the national government effort through investment in street lighting and other effective strategies to curb insecurity 8) Further Madam Speaker, the County will endeavor to create a business space that is favourable to all businesses through planning and control. In this regard the county will designate market location for small traders in addition to controlling developments in urban areas. Tax and revenue reforms 9) Madam Speaker, as outlined in the 2015 county fiscal strategy paper, the county will structure tax policy and revenue reforms to reduce the burden of tax collection through offering more innovative and efficient procedures for tax collection. Further the County will accelerate automation of revenue collection and seek to explore ways of harmonizing taxes through consolidating fees and charges to avoid unnecessary time taken to obtain various licenses without raising the levels of taxes. 9
10) Madam speaker, county will move with speed to formulate regulation for the various revenue items that are pending for adoption by this house to ensure that our tax regime is comprehensive and responsive, going forward the county will entrench participatory reforms in tax and revenue as envisaged in law b) Strategic priority 2: Development of County physical and social infrastructure facilities including feeder roads, water, ICT to stimulate growth 11) Madam Speaker, the county government plans to prioritize development of infrastructures taking into consideration disaster risk mitigation and climate change implications. In this financial year 2014/2015, the county is implementing rehabilitation and maintenance of the feeder roads, installation of streetlights in towns and major centres and upgrade of the water supply systems across our expansive county. 12) Madam Speaker, the county will continue engaging the donor in high impact project implementation like the ongoing Project infrastructure donor project for KISSIP and KMP which are well on course and which are expected to greatly improve urban infrastructure in Nakuru and Naivasha towns 10
c) Strategic priority 3: Promotion of health services through investing in quality and affordable health services. 13) Madam Speaker, The County Government has continued to invest in improving healthcare infrastructure and supply of drugs to medical facilities. The focus has in controlling communicable diseases (tuberculosis, HIV/AID Sand malaria) and attaining marked decrease in child mortality. 14) Madam Speaker, The County Government expect to improve access to modern and well-equipped health facilities through the leasing of medical equipment in two facilities (namely Nakuru and Naivasha) as envisaged in the National BPS 2015. 15) Madam Speaker, the county cannot provide quality health services without the key specialist and personnel in our hospital and health centres, therefore the county will recruit and retain the medical specialist inorder to raise the quality of health care. d) Strategic priority 4: Promotion of value addition for agricultural produce, food security and environmental conservation. 16) Madam Speaker, the county will encourage and promote investments in agriculture to spur an inclusive economic growth with multiplier effects on related sectors of the economy such as agro- processing; storage and transport; wholesale and retail; construction; financial services as well as export diversification and growth. Investment in agriculture Madam Speaker, will boost output consequently increasing food supply, reduce 11
food related prices and bring down the cost of living, create employment and promote overall rural development for our people. 17) Madam Speaker, in the current financial year 2014/2015 the county has supported 11,000 vulnerable farmers with farm inputs and a further 349 farmers with pyrethrum planting materials. It is worth noting Madam Speaker, that this sector faces myriads of challenges key among them includes unfavorable climate changes with the rainfall pattern being erratic and highly unpredictable, Crop pest and diseases like the Maize Lethal Necrosis Disease and Tomato leaf miner. Livestock pest and diseases outbreaks, Fish Poaching which the county will strive to address in the medium term. 18) Madam Speaker, county is in the process of finalising the County Environment Strategic Action Framework for implementation. This will go along way in addressing the negative impacts of climate change. e) Strategic priority 5: Promotion of equitable social economic development for county stability 19) Madam speaker, the county in the 2015 county fiscal strategy paper intends to promote development with an aim of reducing income inequality as well as reducing the poverty indices for our people. The county will mainly focus on 12
i. Carry on our investment in vocational and formal education through bursary programme and investment Vocational training institutes. ii. Sustain investment in health with the primary focus on prevention and promoting its linkages to nutrition, sports and physical activity; iii. Investment on sport and recreation to empower the youthful population and nurture talents at the lower levels including wards iv. Enhance the kitty for supporting the vulnerable in the Community from the 55 million allocated in the Current MTEF 2014/15 budget. v. Providing alternative building technology through the Housing Technology transfers to promote decent housing for all. 20) Madam Speaker, the County Government has also embarked on relocating small scale traders to alternative sites and this has greatly improved the attractiveness of Nakuru as safer and cleaner town for investment. f) Strategic priority 6: Enhancing governance, transparency and accountability in the delivery of public goods and service 21) Madam Speaker, In the current FY 2014/2015 the County Government has through the Department of Public Service conducted job evaluation, skill audit and initiated the background preparatory process of 13
Performance management as envisaged in Section 47 County Government Act 2012. Further the County Government has facilitated the biometric Capacity Assessment and Rationalization Programme (CARPS) led by the State Ministry of Planning and Devolution. Going forward Madam Speaker, the county will enhance training, terms of service and public service reforms for better improved performance and service delivery. 22) Madam Speaker, the county will put in place checks and control to enhance accountability and transparency in all county operations and processes and also strengthen county asset management systems. RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK 23) Madam Speaker, in the 2015 budget policy statement, it is projected that the economy will grow by 5.3 percent in 2014, 6.9 percent in 2015 and 7.0 percent over the medium term. The key growth factors are likely to face downside risks such as unpredictability in development spending by county government, low absorption capacity of development expenditure especially infrastructural projects, reliance on rain-feb agriculture which fosters food insecurity and state of insecurity. 24) Madam Speaker, Kenya is now placed at a lower middle income economy after the completion of rebasing of our country real GDP based on the 2010 National accounts statistics. May I remind this house that this 14
will influence the level of service expected of us by the residents of this county. County Revenue 25) Madam speaker, in the last six months July December, 2014 the county manage to collect local revenue of Kshs. 895,574,847. This amount is composed of Kshs. 674,924,904 local revenue and Kshs. 220, 649,943 as facility improvement fund collected by the county hospitals. Further Madam Speaker, the county received kshs. 3,403,996,354 from the national treasury and Kshs. 11,440,000. The committee decried the poor performance of local revenue collection at Kshs. 674,924,904 and the Committee noted that the county managed to collect 33% of the annual target in the first half of the year. Though revenue collection in the second half is expected to improve, the overall revenue collection may be lower than earlier envisaged and the county risk failing to realize it local revenue collection target. County expenditure 26) Madam Speaker, The total spending by ministries, executive and county assembly amounted to kshs. 3, 833,280,536 for the first half of 2014 / 2015 financial year. The above expenditure compared with the county total budget of Kshs. 10,616,517,883 translates to 36.1 percent of budget absorption. It is important to note Madam Speaker that the county revenue for the same period (July-December 2014) was Kshs. 4,311,011,201. 15
27) Madam Speaker, development expenditure for the first six months experienced the lowest absorption rate of 18.12 percent (Kshs. 698,408,997) of the total expenditure (Kshs 3, 833,280,536) in the same period. While the bulk of the expenditure went to personnel emolument of Kshs. 2,131,951,968 equivalent to 55.62 percent while operation and maintenance stood at Kshs. 1,002,919,571 equivalent to 26.12 percent of the total expenditure. 28) Madam Speaker, it must be appreciated that the first disbursement from the national treasury was in August, this has affected the absorption of fund during the first half as most programs were delayed pending availability of fund. In addition many incomplete projects from financial year 2013/14 were rolled over to year 2014/15 and more focus was on ensuring the completion of this project. This delayed the implementation of new project and absorption of development expenditure as various ministries concentrated on existing project. In addition the procurement process for new project has taken a long period of time thus affecting the roll out of new project. FISCAL POLICY AND BUDGET FRAMEWORK 29) Madam speaker, the 2015 county fiscal strategy paper aims at enhancing our revenue collection through formulation of efficient collection strategies and widening of revenue bases and also containing growth of total recurrent expenditure to devote more resources to 16
development. Over the medium term, a minimum of 30% of the county budget shall be allocated to development expenditure and the wage bill is expected to stabilize at 43 percent of total expenditure in the FY2015/16 30) Madam Speaker, in the current financial year 2014/2015, the overall fiscal deficit is projected at Ksh 1.5 billion against the county budget of Ksh 10 billion. This translates to 1.5 percent of the targeted total expenditure. This stance means that the county will be forced to borrow or forfeit some expenditure so as to undertake development projects. 31) Madam Speaker, in terms of debt sustainability, the 2015 county fiscal strategy paper reaffirms its commitment in the reduction of the county debt to sustainable levels which now stand at Kshs1.5 Billion. In the last two years efforts have been concentrated in servicing existing debts, majority of which were inherited from the defunct local authorities, debt repayments are expected to increase relative to total expenditure to 3.8 percent in 2015/16 from 1.8 percent in 2014/15. All subsequent County Government s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure. 32) Madam Speaker, the total envisaged overall expenditure for FY 2015 /2016 as outlined in the 2015 county fiscal strategy paper is Kshs.11,667,297,717 and is set to increase to Kshs. 12 billion over the medium term. 17
33) Madam Speaker, in the 2015 budget policy statement, the Nakuru county government projects in the FY 2015 /2016 to receive a total of Kshs. 8,758,528,029 from the national government. Further Madam Speaker, the county project to collect local revenue totaling Kshs. 2,361,149,650 and facility improvement fund of Kshs. 550,000,000. 34) Madam Speaker, the County will sustain allocation of Ksh.1.375 Billion to cater for the Ward Resource Envelope for the Financial Year 2015/2016 under the department of Finance and Economic Planning for the purposes development Projects in the county wards. Further Madam Speaker, An emergency provision of Kshs 50 million and Kshs 30million for renewal of assets will be provided in the budget for 2015/16. INTERGOVERNMENTAL FISCAL RELATIONS AND DIVISION OF REVENUE 35) Madam Speaker, the county government continues facing a number of challenges primarily centred on the budget ceilings for county assemblies issued by the Commission on Revenue Allocation, these disputes have created uncertainty over the implementation of plans and budgets of the affected County Governments and consequently may result into delay in the realisation of the full benefits of devolution 36) Madam Speaker, in refer to the 2015 budget policy statement, the national treasury has added the following items to the 2015 /2016 equitable share of revenue to counties. The following Additional 18
Conditional Allocations to County Governments relates to the county government of Nakuru. Allocation for Free Maternal Health Care of Ksh 219,627,800 million. This grant is to be transferred to County Governments on a reimbursement basis, upon confirmation that the County Government provided maternal health care services in their health facilities in accordance with agreed specifications. However, past experience has shown that the amount allocated is far much lower than that expended by the County previously. Conditional Grant of Kshs. 37,373,449 to compensate County Health facilities for forgone user fees. It is the intention of Government to sustain the Government policy of not charging user fees in public health facilities. In this regard, the National Government has allocated Kshs. 37,373,449 to compensate County governments for revenue forgone by not charging user fees in the County health facilities. Allocation for leasing medical equipment of Ksh. 95,744,681 million. This grant is intended to facilitate the purchase of modern specialized health care equipment in at least two health facilities in each County Government over the medium term. This will facilitate easy access to specialized health care services and significantly reduce the distance that Kenyans walk in search of such services today. 19
Allocation for level-5 hospital of Kshs. 216,278,857 million, as a conditional grant. Level-5 hospitals continue to play a significant role in providing specialized health care services. These hospitals provide health care services to citizens residing outsides their host County Governments. Allocation from the Fuel Levy Fund of Kshs. 103,104,393 million. In order to enhance County Governments capacity to repair and maintain county roads the National Government proposes to transfer 15 percent of the Road Maintenance Fuel Levy Fund to the County Governments. This proposal should be fast tracked and more road funds devolved to counties. 37) Madam Speaker, the projected equitable share from the commission on revenue allocation (CRA) is for the FY 2015/2016 is Kshs. 8,061,138,849 and conditional allocation of loans and grants of Kshs. 25,260,000. Therefore Madam Speaker, the total projected revenue from CRA is Kshs. 8,758,528,029. (appendix II) 38) Madam Speaker, The County Key focus in the FY 2015/16 Medium Term Budget will be guided by the County s medium term plans, departmental strategic plans and the Annual sectoral reports as prepared by the various Sector Working Groups (SWG). Respective sector reports have been prepared with a keen inputs from the Public participation 20
MEDIUM TERM SPENDING PRIORITIES IN THE 2015 COUNTY FISCAL STRATEGY PAPER Sectoral Expenditure ceilings 39) Madam Speaker, the committee received recommendations from the various sector on the proposed budgetary allocation as contained in the 2015 county fiscal strategy paper. SECTORAL RECOMMENDATIONS. i. The funding of the office of the governor and deputy Governor is reduced by a total of Kshs. 71,813,407 in the following expenditure Compensation to staff promotion Kshs. 367,762 Other recurrent Kshs. 40,000,000 Development expenditure Kshs. 31,445,644 ii. The ceiling of the county treasury is reduced by Kshs. 55,900,861 in the following expenditure category Compensation to staff promotion Kshs. 14,672,392 Development expenditure Kshs. 41,228,469 The ceiling of the ministry of public service management is reduced by Kshs. 43,138,407 in the following expenditure to release monies to ward resource envelope. Compensation to staff promotion Kshs. 11,789,139 Development expenditure of Kshs. 31,349,268 21
iii. The ceiling of the county public service board is reduced by a total Kshs. 10,269,140 being compensation to staff of Kshs. 10,163,126 which the committee noted to be excessive and development of Kshs. 106,014 iv. The ceiling of the ministry of Health is reduced by 43,069,952 to release funds to other pressing needs. v. The ceiling of the ministry of Roads, Transport and public works is reduced by a total of Kshs. 159,540,135 from the following expenditure category; development of Kshs. 154,493,148 and projected promotion for staffs of Kshs. 5,046,987 this will release funds to other pressing needs. vi. The ceiling of the ministry of ICT and E-government is reduced by Kshs. 1,713,141. In the following expenditure Compensation to staff Kshs. 556,626 Development Kshs. 1,156,516 vii. The ceiling of the ministry of Agriculture, Livestock and fisheries is reduced by Kshs. 88,420,130 in the following expenditure category. Compensation to staff Kshs. 12,528,841 Other recurrent Kshs. 43,000,000 Development KShs. 32,891,289 viii. The ceiling of the ministry of lands, Housing and Urban Development is reduced by Kshs. 5,784,187 in the following expenditure category. Staff promotion Kshs. 2,314,640 Development Kshs. 3,469,547 22
ix. The ceiling of the ministry of education, Youth affairs, and social services is reduced by Kshs. 66,896,785 in the following expenditure category. Compensation to staff Kshs. 4,969,259 Development Kshs. 61,927,526 x. The ceiling of the ministry of Trade, Tourism and Cooperatives is reduced by a total Kshs.23, 384,317 in the following expenditure category. Compensation to staff promotion Kshs. 1,456,791 Development expenditure Kshs. 21,927,526 xi. The ceiling of the ministry of environment, water and natural resources is reduced by a total Kshs.59,714,450 in the following expenditure category. Compensation to staff promotion Kshs. 7,786,924 Development expenditure Kshs. 51,927,526 Madam speaker, the following adjustments released Kshs. 729,644,948 which have been allocated as listed below i. An addional allocation of Kshs. 275,000,000 for ward resource envelope. this is an additional Kshs. 5,000,000 for each ward to translate into a total of Kshs. 30,000,000 for ward project at 23
mashinani. This is placed under the county treasury awaiting public participation so that the resulting project proposals can be rightly placed in the relevant ministry. ii. An allocation of Kshs. 95,000,000 for the staff medical scheme to be budgeted under the ministry of public service management. iii. An allocation of Kshs. 1,000,000 for medical insurance for staffs in the county public service board. iv. An allocation of Kshs. 55,000,000 for bursary in the ministry of Education, this Madam speaker raises the bursary for the needy students to Kshs. 3,000,000 for each of the 55 wards. v. An allocation of Kshs. 33,000,000 for the recruitment of ECDE teacher in the second half of the financial year 2015/2015 under the ministry of education, youth affairs and culture vi. An allocation of a total of Kshs. 44,500,000. This is in respect of village administrator Kshs 24,500,000 and village council allowance Kshs. 20,000,000 in the ministry of public service management. Madam Speaker it is recommended that this recruitment be effected in the second half of the financial year 2015/2016. 24
vii. An allocation of Kshs. 30,000,000 in the ministry of land as recurrent expenditure so that they can effectively initiate the process of establishing a spatial plan for this county. viii. An allocation of Kshs. 150,000,000 and Kshs. 46,144,948 for recurrent and development respectively for the county assembly in line with the anticipated revised ceilings after the ongoing negotiations. Other Recommendations Madam Speaker, the committee recommends that a mortgage for the CECs and office of the Governor be provided at Kshs. 60,000,000. To create this fund, it is recommended that the debt resolution of Kshs. 432,000,000 be reduced by Kshs. 60,000,000 which should be used to create the mortgage fund. Madam Speaker, the committee noted the provision for purchase of agricultural inputs of Kshs. 100,000,000 in the ministry of agriculture. It is recommended that this be provision be used as a seed money for agriculture development fund to shared equally to agricultural ward. I beg to move 25
APPENDIX I: MEDIUM TERM EXPENDITURE ESTIMATE MTEF Sector Ceilings 2015/2016 2017/2018 with Indicative Projections SECTOR Approved 2014/15 CBROP Ceilings 2015/16 CFSP Ceilings 2015/16 %SHARE OF TOTAL EXPENDITURE PROJECTIONS PROJECTIONS 2016/17 2017/18 Approved CFSP 2016/ 2014/15 Ceilin 17 gs 2015/ 16 1.AGRICULTURE, RURAL AND URBAN DEVELOPMENT SECTOR a) AGRICULTURE LIVESTOCK AND FISHERIES SUB-TOTAL 635,433,021 789,737,172 701,317,042 868,710,889 955,581,978 6.0% 6.0% 6.9% 6.9% Rec. Gross 503,915,018 609,737,172 554,208,331 670,710,889 737,781,978 4.7% 4.8% 5.3% 5.3% Dev. Gross 131,518,003 180,000,000 147,108,711 198,000,000 217,800,000 1.2% 1.3% 1.6% 1.6% b) LAND SUB-TOTAL 241,159,477 277,756,492 301,972,305 305,532,141 336,085,355 2.3% 2.6% 2.4% 2.4% Rec. Gross 80,790,489 97,756,492 125,441,852 107,532,141 118,285,355 0.8% 1.1% 0.9% 0.9% Dev. Gross 160,368,988 180,000,000 176,530,453 198,000,000 217,800,000 1.5% 1.5% 1.6% 1.6% 2017/ 18 2. ENERGY, PHYSICAL INFRUSTRUCTURE AND ICT SECTOR a) ROADS SUB-TOTAL 1,258,798,756 567,285,309 510,849,567 737,428,672 811,171,540 11.9% 4.4% 5.8% 5.8% Rec. Gross 237,425,875 287,285,309 282,238,322 316,013,840 347,615,224 2.2% 2.4% 2.5% 2.5% Dev. Gross 1,021,372,881 280,000,000 125,506,852 308,000,000 338,800,000 9.6% 1.1% 2.4% 2.4% RML Fund 103,104,393 113,414,832 124,756,316 0.0% 0.9% 0.9% 0.9% b) ICT SUB-TOTAL 84,584,811 97,227,357 95,514,215 106,950,093 117,645,102 0.8% 0.8% 0.8% 0.8% Rec. Gross 30,766,411 37,227,357 36,670,731 40,950,093 45,045,102 0.3% 0.3% 0.3% 0.3% Dev. Gross 53,818,400 60,000,000 58,843,484 66,000,000 72,600,000 0.5% 0.5% 0.5% 0.5% 26
3. GENERAL ECONOMIC AND COMMERCIAL AFFAIRS SECTOR TRADE SUB-TOTAL 352,192,281 244,654,522 221,270,205 269,119,974 296,031,971 3.3% 1.9% 2.1% 2.1% Rec. Gross 103,892,281 124,654,522 123,197,731 137,119,974 150,831,971 1.0% 1.1% 1.1% 1.1% Dev. Gross 248,300,000 120,000,000 98,072,474 132,000,000 145,200,000 2.3% 0.8% 1.0% 1.0% 4. EDUCATION, CULTURE, YOUTH AFFAIRS, SPORTS AND SOCIAL SERVICES SECTOR EDUCATION SUB-TOTAL 990,219,116 597,194,637 618,297,852 656,914,101 722,605,511 9.3% 5.3% 5.2% 5.2% Rec. Gross 416,317,882 437,194,637 520,225,378 480,914,101 529,005,511 3.9% 4.5% 3.8% 3.8% Dev. Gross 573,901,234 160,000,000 98,072,474 176,000,000 193,600,000 5.4% 0.8% 1.4% 1.4% 5. ENVIRONMENT, NATURAL RESOURCES, WATER AND ENERGY SECTOR ENVIRONMENT SUB-TOTAL 549,750,481 458,436,871 398,722,421 504,280,558 554,708,614 5.2% 3.4% 4.0% 4.0% Rec. Gross 254,906,505 308,436,871 300,649,947 339,280,558 373,208,614 2.4% 2.6% 2.7% 2.7% Dev. Gross 294,843,976 150,000,000 98,072,474 165,000,000 181,500,000 2.8% 0.8% 1.3% 1.3% 6. HEALTH SECTOR HEALTH SUB-TOTAL 3,457,382,514 3,362,184,309 3,677,840,467 3,977,395,693 4,375,135,261 32.6% 31.5% Rec. Gross 2,179,500,184 2,562,184,309 2,664,816,974 2,818,402,740 3,100,243,013 20.5% 23.0% 31.5 % 31.5% 22.3 % 22.3% FIF Recc 652,822,673 500,000,000 500,000,000 550,000,000 605,000,000 6.1% 4.3% 4.4% 4.4% CA forgone user fees 37,373,449 CFL Med Eq 95,744,681 68,048,900 74,853,790 0.0% 0.8% 0.5% 0.5% CF Free M.H 219,627,800 210,944,053 232,038,458 0.0% 1.9% 1.7% 1.7% Dev. Gross 533,539,657 250,000,000 110,277,563 275,000,000 302,500,000 5.0% 0.8% 2.2% 2.2% DEV FIF 91,520,000 50,000,000 50,000,000 55,000,000 60,500,000 0.9% 0.4% 0.4% 0.4% 27
7.ADMINISTRATION AND INTERNAL RELATIONS SECTOR a) EXECUTIVE SUB-TOTAL 272,457,766 374,173,897 302,360,492 411,591,287 452,750,415 2.6% 2.6% 3.3% 3.3% Rec. Gross 222,457,766 269,173,897 228,806,135 296,091,287 325,700,415 2.1% 2.0% 2.3% 2.3% Dev. Gross 50,000,000 105,000,000 73,554,357 115,500,000 127,050,000 0.5% 0.6% 0.9% 0.9% 23.0 b) FINANCE SUB-TOTAL 867,863,288 2,637,113,907 2,840,145,092 2,900,825,298 3,190,907,828 8.2% 24.3% % 23.0% Rec. Gross 661,663,288 757,113,907 742,441,515 832,825,298 916,107,828 6.2% 6.4% 6.6% 6.6% Dev. Gross 206,200,000 1,880,000,000 2,097,703,577 2,068,000,000 2,274,800,000 1.9% 18.0% 16.4 % 16.4% c) COUNTY PUBLIC SERVICE BOARD SUB-TOTAL 77,193,432 84,912,775 75,643,635 93,404,053 102,744,458 0.7% 0.6% 0.7% 0.7% Rec. Gross 72,193,432 79,412,775 70,249,649 87,354,053 96,089,458 0.7% 0.6% 0.7% 0.7% Dev. Gross 5,000,000 5,500,000 5,393,986 6,050,000 6,655,000 0.0% 0.0% 0.0% 0.0% d) PUBLIC SERVICE MANAGEMENT SUB-TOTAL 574,873,937 780,857,883 877,219,476 858,943,671 944,838,038 5.4% 7.5% 6.8% 6.8% Rec. Gross 564,873,937 680,857,883 808,568,744 748,943,671 823,838,038 5.3% 6.9% 5.9% 5.9% Dev. Gross 10,000,000 100,000,000 68,650,732 110,000,000 121,000,000 0.1% 0.6% 0.9% 0.9% e) COUNTY ASSEMBLY SUB-TOTAL 1,254,609,003 850,000,000 1,046,144,948 935,000,000 1,028,500,000 11.8% 9.0% 7.4% 7.4% Rec. Gross 980,887,041 700,000,000 850,000,000 770,000,000 847,000,000 9.2% 7.3% 6.1% 6.1% Dev. Gross 273,721,962 150,000,000 196,144,948 165,000,000 181,500,000 2.6% 1.7% 1.3% 1.3% TOTAL 10,616,517,883 11,121,535,131 11,667,297,717 12,626,096,430 13,888,706,071 100.0% TOTAL REC. GROSS 6,962,412,782 7,451,035,131 8,160,261,239 8,475,131,598 9,322,644,755 65.6% 70.1% TOTAL DEV. GROSS 3,654,105,101 3,670,500,000 3,507,036,478 4,150,964,832 4,566,061,316 34.4% 30% 100.0 % 100.0 100.0 % % 67.1 % 67.1% 32.9 % 32.9% 28
Appendix ii: county revenue projection ANNEX TABLE 1: NAKURU COUNTY GOVERNMENT INCOMES 2014/2015 TO 2017/2018 TOTAL REVENUE 2014/2015 2015/2016 2015/2016 2016/2017 2017/2018 APPROVED CBROP CFSP PROJECTIONS PROJECTIONS BUDGET Property tax (plot rent and land rates) 894,720,000 984,192,000 984,192,000 1,082,611,200 1,190,872,320 Single Business Permit 254,300,000 279,730,000 379,730,036 307,703,000 338,473,300 Market Fees 132,770,000 146,047,000 146,047,000 160,651,700 176,716,870 Building Approval 66,385,000 73,023,500 73,023,500 80,325,850 88,358,435 Cess 78,100,000 85,910,000 85,910,000 94,501,000 103,951,100 Royalties 93,720,000 103,092,000 103,092,000 113,401,200 124,741,320 Stock/ Slaughter fees 12,923,841 14,216,225 14,216,225 15,637,848 17,201,632 House Rent 39,050,000 42,955,000 42,955,000 47,250,500 51,975,550 Advertising 66,385,000 73,023,500 73,023,500 80,325,850 88,358,435 Parking fees 203,875,000 224,262,500 224,262,500 246,688,750 271,357,625 Liquor Licensing 23,430,000 25,773,000 25,773,000 28,350,300 31,185,330 County Park Fees 19,525,000 21,477,500 21,477,500 23,625,250 25,987,775 Water And Sewerage 3,905,000 4,295,500 4,295,500 4,725,050 5,197,555 Other Fees and Charges 166,501,750 183,151,925 183,151,925 201,467,118 221,613,829 Total Local Sources 2,055,590,591 2,261,149,650 2,361,149,686 2,487,264,615 2,735,991,077 Government Funding FIF 500,000,000 550,000,000 550,000,000 605,000,000 665,500,000 Donor Grants 88,000,000 96,800,000 22,880,000 25,168,000 27,684,800 Loans and Grants CRA Conditional grant for forgone user fees 33,373,449 Conditional Fund Leasing of Medical Equipment 95,744,681 68,048,900 74,853,790 Conditional Fund Free Maternal Health - - 219,627,800 210,944,053 232,038,458 29
TOTAL REVENUE 2014/2015 2015/2016 2015/2016 2016/2017 2017/2018 APPROVED CBROP CFSP PROJECTIONS PROJECTIONS BUDGET Road Maintenance Fuel Levy Fund - - 103,104,393 113,414,832 124,756,316 Conditional C.R.A 620,000,000 382,000,000 216,278,857 385,985,135 424,583,648 C.R.A equitable Share 6,290,337,606 7,831,585,481 8,061,138,849 8,712,596,145 9,583,855,760 Sub-Total 7,498,337,606 8,860,385,481 8,729,268,029 10,121,157,065 11,133,272,771 Total 9,553,928,197 11,121,535,131 11,667,297,717 12,608,421,680 13,869,263,848 30
Annex II: MTEF ceiling by expenditure category. MINISTRY / DEPARTMENT Compensation to employees OTHER RECURRENT Development Office of The Governor & Deputy Governor 60,429,140 168,376,996 73,554,356 County Treasury 464,827,628 277,613,886 2,097,703,577 Ministry of Public Service Management 659,929,874 148,638,870 68,650,732 Public Service Board 30,516,419 39,733,230 5,393,986 County Assembly 280,800,000 569,200,000 196,144,948 Ministry of Health 2,318,891,675 1,198,671,229 160,277,563 Ministry of Roads, Transport & Public Works 159,890,708 122,347,613 228,611,246 Ministry of ICT & e-government 17,634,138 19,036,593 58,843,484 Ministry of Agriculture, Livestock & Fisheries 403,269,625 150,938,707 147,108,711 Ministry of Land, Housing And Urban Development 73,340,774 52,101,078 176,530,454 Ministry of Education, Culture, Youth Affairs, Sports And Social Services 190,428,236 329,797,142 98,072,474 Ministry of Trade, Tourism & Cooperatives 46,151,769 77,045,961 98,072,474 TOTAL 302,360,492 2,840,145,091 877,219,476 75,643,635 1,046,144,948 3,677,840,467 510,849,567 95,514,215 701,317,043 301,972,306 618,297,852 221,270,204 398,722,421 Ministry of Environment, Water & Natural Resources 246,693,058 53,956,889 98,072,474 GRAND TOTAL 4,952,803,044 3,207,458,194 3,507,036,479 11,667,297,717 % of Total 42.45% 27.49% 30.06% 100.00% 31
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