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1
COUNTY GOVERNMENT OF VIHIGA
BUDGET IMPLEMENTATION REPORT
For
1st Quarter
FY 2018/2019
OCTOBER, 2018
2
ACRONYMS
AIE Authority to Incur Expenditure
ADP Annual Development Plan
CA County Assembly
CARA County Allocation of Revenue Act
CE County Executive
CEC County Executive Committee
CIDP County Integrated Development Plan
CK Constitution of Kenya
COB Controller of Budget
COK Constitution of Kenya, 2010
CRA
FMS
Commission on Revenue Allocation
Financial Management System
FY Financial Year
G-PAY Government Payment System
IBEC Intergovernmental Budget and Economic Council
IFMIS Integrated Financial Management Information System
KNBS Kenya National Bureau of Statistics
MCA Members of County Assembly
MDA Ministries, Departments and Agencies
MTEF Medium Term Expenditure Framework
OCOB Office of the Controller of Budget
PBB Program Based Budget
PFM Public Finance Management
PFMA Public Finance Management Act
SRC Salaries and Remuneration Commission
TA Transition Authority
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Table of Contents
FORWARD ....................................................................................................................................................... 5 1.0 INTRODUCTION ......................................................................................................................................... 6 1.1 Revenue Analysis ...................................................................................................................................... 7 1.2 Overall Expenditure Review .................................................................................................................... 10 Development Expenditure Analysis............................................................................................................... 11 2.0 DEPARTMENTAL EXPENDITURE ANALYSIS .............................................................................................. 13 2.1 DEPARTMENT OF AGRICULTURE, LIVESTOCK, FISHERIES AND COOPERATIVES ...................................... 13 2.1.1 Departments Financing ........................................................................................................................ 13 2.1.3 Departments Expenditure by Economic Classification ......................................................................... 14 2.2 PHYSICAL PLANNING LANDS AND HOUSING .......................................................................................... 15 2.2.1 Department of Physical Planning Lands and Housing Financing ......................................................... 16 2.2.2 Department of Physical Planning Lands and Housing Expenditure ..................................................... 16 2.2.3 Departments Expenditure by Economic Classification ......................................................................... 17 2.3 DEPARTMENT OF TRANSPORT AND INFRASTRUCTURE .......................................................................... 18 2.3.1 Sector Strategic Objectives .................................................................................................................. 18 2.3.2 Departments Financing ........................................................................................................................ 18 2.3.3 Department of Transport and Infrastructure Expenditure ................................................................... 18 2.3.4 Expenditure by Economic Classification ............................................................................................... 19 2.4 TRADE, INDUSTRY, TOURISM AND ENTREPRENUERSHIP ....................................................................... 20 2.4.1 Sector strategic objectives ................................................................................................................... 20 2.4.2 Trade, Industry, Tourism and Entrepreneurship Financing .................................................................. 20 2.4.3 Trade, Industry, Tourism and Entrepreneurship Expenditure .............................................................. 21 2.4.4 Expenditure by Economic Classification ............................................................................................... 21 2.5 DEPARTMENT OF HEALTH SERVICES ....................................................................................................... 22 2.5.1 The strategic priorities of the sector ................................................................................................ 22 2.5.2 Department of Health Services Financing ............................................................................................ 22 2.5.2 Department of Health Services Expenditure ........................................................................................ 23 2.5.3 Departments Expenditure by Economic Classification ......................................................................... 23 2.6 EDUCATION SCIENCE AND TECHNICAL VOCATIONAL TRAINING ............................................................ 24 2.6.1 Strategic Objectives ............................................................................................................................. 24 2.6.2 Departments Financing ........................................................................................................................ 24 2.6.3 Department of Education, Science and Technology Expenditure ........................................................ 25 2.6.4 Departments Expenditure by Economic Classification ......................................................................... 25 2.7 OFFICE OF THE GOVERNOR ..................................................................................................................... 26 2.7.1 Strategic Objectives ............................................................................................................................. 27 2.7.2 Office of the Governor Financing ......................................................................................................... 27 2.7.3 County Executive Expenditure .............................................................................................................. 27 2.7.4 County Executive Expenditure by Economic Classification .................................................................. 28 2.8 COUNTY ASSEMBLY................................................................................................................................. 29 2.8.1 Introduction ......................................................................................................................................... 29 2.8.2 Strategic objectives .............................................................................................................................. 29 2.8.3 County Assembly Financing ................................................................................................................. 29 2.8.4 County Assembly Expenditure .............................................................................................................. 30 2.8.5 County Assembly Expenditure by Economic Classification .................................................................. 30 2.9 DEPARTMENT OF FINANCE AND ECONOMIC PLANNING........................................................................ 31 2.9.1 Department of Finance and Economic Planning Financing ................................................................. 31
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2.9.2 Department of Finance and Economic Planning Expenditure .............................................................. 32 2.9.3 Departments Expenditure by Economic Classification ......................................................................... 32 2.10 COUNTY PUBLIC SERVICE BOARD ......................................................................................................... 33 2.10.1 Sector Strategic Objective .................................................................................................................. 33 2.10.2 Boards Financing ............................................................................................................................... 33 2.10.3 Public Service Board Expenditure ....................................................................................................... 34 2.10.4 Public Service Board Expenditure by Economic Classification............................................................ 34 2.11 ADMINISTRATION AND COORDINATION OF COUNTY AFFAIRS ............................................................ 35 2.11.1 Sector Strategic Objectives ................................................................................................................ 35 2.11.2 Departments Financing ...................................................................................................................... 35 2.11.3 Department of Public Service and Administration ............................................................................. 36 2.11.4 Departments Expenditure by Economic Classification ....................................................................... 36 2.12 GENDER, CULTURE, YOUTH, SPORTS AND SOCIAL SERVICES ................................................................ 37 2.12.1 Sector Strategic Objectives ................................................................................................................ 37 2.12.2 Departments Financing..................................................................................................................... 38 2.12.3 Department of Gender, Culture, Youth & Sports Expenditure ......................................................... 38 2.12.4 Departments Expenditure by Economic Classification ....................................................................... 38 2.13 DEPARTMENT OF ENVIRONMENT, WATER, NATURAL RESOURCES AND FORESTRY ............................ 39 2.13.1 Sector strategic objectives ................................................................................................................. 40 2.13.2 Departments Financing..................................................................................................................... 40 2.13.3 Department of Environment, Water, Natural Resources and Forestry Expenditure .......................... 41 2.13.4 Departments Expenditure by Economic Classification ....................................................................... 41 3.0 OBSERVATIONS AND RECOMMENDATIONS ........................................................................................... 42
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FORWARD
I am pleased to present the 1st Quarter Budget Implementation Review Report for the FY
2018/19 period for Government of Vihiga. It presents the fiscal performance of the County for
the first three months of 2018/19 FY. This report will compare the performance of the County
Government by analyzing budget estimates, actual expenditure and realized revenue during the
period under review.
The report discusses revenue and expenditure estimates against actual realized revenues and
expenditures. Key observations, challenges and recommendations during the period under review
have been highlighted in the report.
This report will be submitted to the County Assembly in accordance with Article 228(6) of the
Constitution to discuss the report by its committee with respect to this Budget Implementation
report. Once the Committee’s report is adopted by the County Assembly, section 149 (3) of the
PFMA requires the accounting officer, for each entity to prepare a report on actions taken to
implement the recommendations made in the adopted committee’s report which shall be
published and publicized.
Finally, this report is intended for the consumption of all tax payers in the County. The County
citizenry is encouraged to read this report and to continue debating and seeking clarity on all
public expenses in order for the Constitution aspirations, Vision 2030 and the Big Four Agenda
dreams to be actualized. The Vihiga Residents should not shy from seeking information from
Government offices and demand for accountability and openness from all public officers.
Hon. Alfred Indeche
CECM, Finance & Economic Planning
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1.0 INTRODUCTION
The objective of the Budget Implementation report is to provide a review of the budget execution
status of the County Government. This report covers the performance of County government in
the implementation of the annual budget and is prepared in conformity to Article 228(4) and 228
(6) of the Constitution.
County Assembly are expected to approve budget estimates and appropriation bills to be
implemented the following financial year by 30th June. The PFMA provides an elaborate
framework for the formulation of budgets and assigns specific responsibilities to each arm of the
County Government in the budgeting process. For the budgets to be in compliance with law,
strictly adherence to the budgeting framework: Prepared on the Program Based Budgeting (PBB)
framework; be aligned to the approved County Integrated Development Plans (CIDP); Annual
Development Plans (ADP) and the County Fiscal Strategy Papers (CFSP); be a product of public
participation; and be balanced based on realistic local revenue targets among other legal
requirements.
The County Government Approved Budget for FY 2018/19 was Kshs.7.00 billion, comprising of
Kshs.4.48 billion (63.95 per cent) and Kshs.2.52 billion (36.05 per cent) allocation for recurrent
and development expenditure respectively.
To finance the budget, the County was expected to receive Kshs.4.46 Billion (63.67 per cent) as
equitable share of revenue raised nationally, Kshs.1.06 Billion (15.08 per cent) as total
conditional grants, generate Kshs.153.67 million (2.19 per cent) from own source revenue, and
Kshs.1.33 Billion (19.05 per cent) cash balance brought forward from FY 2017/18.
Figure1: Vihiga Expected Sources of Budget Financing in FY 2018/19(Kshs.)
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ANALYSIS OF CONDITIONAL GRANTS
Conditional Grants Amount(Kshs.) %
Compensation for User fees Foregone 19,158,582 1.8
Road Maintenance Levy 212,686,815 20.1
Loans and Grants (Danida) 20,930,173 2.0
Conditional for Youth Polytechnics 70,891,386 6.7
World Bank for Health Systems 73,172,815 6.9
World bBank loan for Agriculture and Rural inclusive Growth
project
193,368,318 18.3
Kenya Devolution Support Programme 75,302,439 7.1
Kenya Urban Support Programme 250,950,700 23.8
EU-Water Tower project Grants 80,000,000 7.6
ASDSP 18,161,321 1.7
Urban Industrial Grant 41,200,000 3.9
Total 1,055,822,549 100
The conditional grants contained in the CARA, July 2018 and B/F from FY 2017/18 comprised
of Kshs.212.69 million (20.14 per cent) from the Road Maintenance Levy Fund, Kshs.19.16
million (1.81 per cent) as Compensation for User Fee Foregone, Kshs.20.93 million (2.0 per
cent) from DANIDA, Kshs.75.30 million (7.1 per cent) for the World Bank Kenya Devolution
Support Programme, Kshs.70.89 million (6.7 per cent) for Development of Youth Polytechnics,
Kshs.193.37 million (18.3 per cent ) for the World Bank Loan on National Agriculture & Rural
Inclusive Initiative, Kshs.73.17 million (6.9 per cent) as World Bank loan for Transforming
Health System for Universal Care Project, Kshs. 250.95 Million(23.8 per cent) as Kenya Urban
Support Urban Programme, Kshs. 80 million(7.6 per cent) as EU-Water Tower Project Grants,
kshs 18.16 Million(1.7 per cent) as ASDP and Kshs.41.2 Million (3.9 per cent) as Urban
Industrial Grant.
1.1 Revenue Analysis
During the first Three Months FY 2018/19, the County received Kshs.2.61 billion as equitable
share of revenue raised nationally, Kshs.331.32 million as total conditional grants and raised
Kshs.121.53 million from own source revenue. The total available funds during the period under
review amounted to Kshs.3.06 billion.
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Table showing quarterly trend in own source revenue collection for FY 2018/19
COUNTY OWN GENERATED REVENUE
APPROVED BUDGET
FIRST QUARTER
TOTAL COLLECTION
% REALISATION
Parking Fees
49,885,275.0
9,084,680 9,084,680 18
Matatu Stickers
-
- - 0
BodaBoda Sitickers
-
- - 0
Land Rates
830,881.50
88,352 88,352 10.63
Plot, Stall Rent
3,299,326.50
723,807 723,807 21.94
Single Business Permits
20,378,551.50
1,481,797 1,481,797 7.27
Plans Inspection/Approval
535,155.00
515,933 515,933 96.4
Advertising (Billboards)
1,802,108.00
136,356 136,356 7.56
Rent ( County Houses, Market
stalls, County commercial buildings
and hall hire)
379,312.50
10,000 10,000 2.63
Hire of Machines ( Lease and rental
of Machines)
858,616.50
1,482,685 1,482,685 172.68
Fertiliser
12,321,330.0
10,400 10,400 0.084
Market and Trade Fees
20,488,452.0
3,031,900 3,031,900 14.79
slaughter House Management Fees
383,970.00
1,198,180 1,198,180 312.05
Tea Cess
10,006,321.5
265,360 265,360 2.65
Livestock Cess
2,532,156.00 0
Hospital Fees
- 0
Sale of Tender Documents
-
- - 0
Public Health Service
2,763,907.50
358,520 358,520 12.97
Plans Inspection fees
-
103,920 103,920 0
Weights and Measures 0
Way Leave 0
Search fees 0
Renovation fees 0
Facility Improvement Fund
22,332,253.5
11,108,066 11,108,066 49.74
Group registration 45,870 0
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COUNTY OWN GENERATED REVENUE
APPROVED BUDGET
FIRST QUARTER
TOTAL COLLECTION
% REALISATION
- 45,870
Licences
- 0
Sale of Fertiliser
- 0
Sand And Murram
118,350.00
39,065 39,065 33.01
Fines, Penalties and Forfeiture
121,797.00
678,605 678,605 557
Misceleneous Income
158,970.00
1,566,059 1,566,059 985.13
Electrical and Electrical inspection
of Buildings
- 0
Land Boundary Disputes
670,740.00
225,331 225,331 33.59
Noise Emmission
13,200.00 0
Veterinary Services
- 0
Water supply adminstration Fees
2,060,760.00
494,710 494,710 24.01
Liquor licence
1,727,250.00 0
Inspection and Impound Fees 0
20,875 20,875 0
Conservancy 0 0
TOTAL COLLECTIONS 153,668,684 32,670,471 32,670,471 21.26
Source: Vihiga County Treasury
Figure 2: Vihiga County, Trend in Own Source Revenue Collection by Quarter from FY
2015/16 to Q2 FY 2018/19.
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The total own source revenue collected in first three months of FY 2018/19 amounted to
Kshs.32.67 million, representing an increase of 6.84 per cent compared to Kshs.30.58 million
generated in the same period of FY 2017/18. This represented 21.26 per cent of the annual own
source revenue target.
Exchequer Issues
During the period, the Controller of Budget authorized withdrawal of Kshs.1.08 billion from the
CRF account, which was 15.42 per cent of the Approved Budget.
1.2 Overall Expenditure Review
The County spent Kshs. 979.27 million, which was 90.03 per cent of the total funds released for
operations.
A total of Kshs.860.7 million was spent on recurrent activities while Kshs.118.57 million was
spent on development activities. The recurrent expenditure was 79.13 per cent of the annual
recurrent budget, while development expenditure was 10.9 per cent of annual development
budget.
.
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Figure 2: Vihiga County, Expenditure by Economic Classification in the FY 2017/18 and
the FY 2018/19
Source: Vihiga County Treasury
Analysis of Recurrent Expenditure
The total recurrent expenditure of Kshs.860.7 million consisted of Kshs.550.85 million (64.0 per
cent) incurred on personnel emoluments and Kshs.309.85 million (36.0 per cent) on operations
and maintenance.
1.3 Development Expenditure Analysis
The total development expenditure of Kshs. 541.93 million represented 21.5 per cent of the
annual development budget of Kshs.2.52 billion. Whereas during the similar period in FY
2017/18, the total development expenditure of Kshs.152.42 million which represented 9.0 per
cent of the annual development budget of Kshs.1.7 billion.
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1.4 Budget and Budget Performance Analysis by Department
Shows a summary of first three months of FY 2018/19 budget estimates and budget performance
by department.
Table 4: Vihiga County, First three months of FY 2018/19 Budget Performance by
Department
S/No.
Department Budget Allocation
(Kshs. Million)
Expenditure in the first three months of FY 2018/19 (Kshs.
Million)
Exchequer Issues for three Months of FY 2018/19(Kshs. Million)
Absorption rate
(%) three months
of FY 2018/19
Dev Rec Dev Rec Dev Rec Dev Rec
1. Agriculture,
livestock, fisheries
and cooperatives
380.16 165.35 15.2 29.01 14.5 34.1 17.0 52.6
2. Physical Planning, Lands and Housing
347.95 112.41 2.1 7.66 17.2 14..3 3.5 20.4
3. Transport, Infrastructure and Communication
657.53 177.66 56.2 26.32 45.3 38.3 36.6 44.4
4. Trade, industry, Tourism and Entreprenuership
53.90 111.41 0 9.2 0.8 18.56 3.2 23.6
5. Health Services 289.76 1268.49 23.5 285.67 28.79 281.67 37.3 67.1
6. Education, Science, Technical and Vocational Training
282.19 433.34 7.5 114.25 8.3 135.78 11.8 75.4
7. Office Of the Governor
15.00 427.58 0.00 69.3 0.00 96.2 0.0 48.8
8. County Assembly 94.03 607.25 2.32 145.89 1.32 135.67 2.5 69.7
9. Finance and Economic Planning
130.00 517.44 0 29.3 0.00 75.63 23.1 17.1
10. County Public Service Board
0.00 50.92 0.00 5.6 0.00 12.43 0.0 32.7
11. Administration and Coordination of County Affairs
24.86 374.78 2.3 89.3 1.05 81.89 40.2 67.6
12. Gender, Culture, Youth, Sports and Social Services
87.00 151.18 0.00 31.5 0.00 34.33 0.0 61.4
13. Environment, Water, Energy and Natural Resources
162.11 80.25 9.45 17.7 11.3 14.57 24.3 71.0
Total 2,524.49 4,478.06 118.57 860.7 128.56 959.13 4.7 19.22
13
Analysis of budget performance by department shows that the Department of Administration and
Coordination of County Affairs attained the highest absorption rate of development budget at
40.2 per cent while the County Assembly had the lowest development expenditure at 2.5 per
cent. Department of Education, science & technology had the highest percentage of recurrent
expenditure to its recurrent budget at 75.4 percent while the County Treasury had the lowest
absorption rate at 17.1 per cent. The Overall development and recurrent expenditure for the
County is 4.7 and 19.22 per cent respectively.
2.0 DEPARTMENTAL EXPENDITURE ANALYSIS
2.1 DEPARTMENT OF AGRICULTURE, LIVESTOCK, FISHERIES AND
COOPERATIVES
The Department of Agriculture, Livestock, Fisheries and Cooperatives is mandate to implement
functions related to Agriculture as assigned in the fourth schedule of the constitution.
2.1.1 Department strategic priorities
Institutional reforms in agricultural sector
Promote Food and Nutrition Security for Sustainable livelihoods;
Enhance Crop, Livestock and Fisheries production and productivity;
Promote Sustainable Land use practices and Conservation of Natural Resources for
Agriculture
Promote value addition and agro-processing
Strengthen Agricultural market access and linkages
Provision of innovative Agricultural technology transfer and extension services
Revitalize cooperative movement
2.1.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.545.51 million
comprising of Kshs.165.35 million for recurrent expenditure and Kshs.380.16 million for
development expenditure. During the period under review, the Department received total
exchequer issues amounting to Kshs. 48.6 Million representing 8.9 per cent of the total budget
estimates as shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent Development Total
14
Approved budget (Kshs. Millions) 165.35 380.16 545.51
Exchequer issues (Kshs. Millions) 34.1 14.5 48.6
% of exchequer issues to approved budget 20.62 3.81 8.9
Source: County Treasury
2.1.3 Department of Agriculture, Livestock, Fisheries and Cooperatives Expenditure
Table 2 shows Departments recurrent and development expenditure verse the budget estimates.
Total recurrent expenditure during the period under review amounted to Kshs29.01 Million
representing a performance of 17.54 per cent while the development expenditure amounted to
Kshs. 15.2 Million representing a performance of 3.99 percent.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Millions) 165.35 380.16 545.51
Actual expenditure (Kshs. Millions) 29.01 15.2 44.21
Absorption rate (%) 17.54 3.99 8.1
Source: County Treasury
2.1.4 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs.87.03 Million representing a performance of 52.6 per cent while
the development expenditure amounted to Kshs. 64.55 Million representing a performance of
17.0 percent.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of the third quarter of 2018/19
Financial Year.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget (Kshs.
Millions)
112.39 52.96 165.35 380.16 545.51
15
Actual expenditure (Kshs.
Millions)
72.70 14.33 87.03 64.55 151.58
Absorption rate (%) 64.7 27.1 52.6 17.0 27.8
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 27.1 per
cent and 27.1 per cent respectively based on the annual estimates. The absorption rate of
development expenditure was 17.0 percent based on annual estimates.
Table 4 shows that the Department spent Kshs.44.21 million against exchequer issues of
Kshs.48.6 million which was a performance of 90.97 per cent.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Millions) 34.1 14.5 48.6
Actual expenditure (Kshs. Millions) 29.01 15.2 44.21
% of actual expenditure to
exchequer issues 85.07 104.83 90.97
Source: County Treasury
2.2 PHYSICAL PLANNING LANDS AND HOUSING
The Department of Lands, Housing is mandate to implement functions related to lands, housing
and urban and physical planning as assigned in the fourth schedule of the constitution and other
enabling legislation.
The strategic priorities of the sector
To formulate policy, Legislative and Institutional Reforms.
To Promote modern housing technology in a sustainable environment
To Promote efficient, sustainable and equitable land use
To promote an integrated institutions and urban planning management.
To Streamline and strengthen surveying and mapping systems
To provide and maintain housing infrastructure for the county government to enhance
service delivery
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2.2.1 Department of Physical Planning Lands and Housing Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.460.37 Million
comprising recurrent allocation of Kshs.112.41 Million and development allocation of
Kshs.347.95 Million. During the period under review, the Department of Physical Planning
Lands and Housing received total exchequer issues amounting to Kshs.31.5 Million representing
6.84 per cent of the total approved budget as shown in the table below.
Table 1: Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 112.41 347.95 460.36
Exchequer issues (Kshs. Million) 14.3 17.2 31.5
% of exchequer issues to approved budget 12.76 4.94 6.84
Source: County Treasury
2.2.2 Department of Physical Planning Lands and Housing Expenditure
The Departments expenditure compares the annual expenditure verses the approved budget.
Total recurrent expenditure during the period under review amounted to Kshs.7.66 Million
representing a performance of 6.81 per cent while development expenditure during the period
under review amounted to 2.1 Million representing absorption of 0.6 per cent. The overall
absorption rate for the Department against approved budget was 21.2 per cent as shown in table
2.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 112.41 347.95 460.36
Actual expenditure (Kshs. Million) 7.66 2.1 9.76
17
Absorption rate (%) 6.81 0.603 21.2
Source: County Treasury
2.2.3 Departments Expenditure by Economic Classification
This compares amount allocated in terms of Personnel Emoluments and Operations &
Maintenance and development. Total recurrent expenditure during the period under review
amounted to Kshs.22.98 Million representing a performance of 20.4 per cent while development
expenditure during the period under review amounted to 12.30 Million representing an
absorption of 3.5 per cent. Personnel emolument (PE) and Operation and Maintenance had an
absorption rate of 62.3 per cent and 8.3 per cent respectively based on the approved budget.
Table 3 shows Departments expenditure by economic classification for the period under review.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget
(Kshs. Million)
25.15 87.26 112.41 347.95 460.36
Actual expenditure
(Kshs. Million)
15.68 7.30 22.98 12.30 35.28
Absorption rate (%) 62.3 8.3 20.4 3.5 7.7
Source: County Treasury
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 14.3 17.2 31.5
Actual expenditure (Kshs. Million) 7.66 2.1 9.76
% of actual expenditure to exchequer issues 53.5 12.21 30.98
Table 4 shows that the Department spent Kshs.9.76 Million against exchequer issues of Kshs.
31.5 million which was a performance of 30.98 per cent.
18
2.3 DEPARTMENT OF TRANSPORT AND INFRASTRUCTURE
The Department of Transport and Infrastructure is mandate to implement functions related to
transport and county roads as assigned in the fourth schedule of the constitution and other
enabling legislation.
2.3.1 Sector Strategic Objectives
Institutional reforms
Develop and maintain an integrated safe and efficient transport system
Develop and maintain quality and safe infrastructure
2.3.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.835.19 Million
comprising of Kshs.177.66 Million for recurrent and Kshs.657.54 Million for development
expenditure. During the period under review, the Department received total exchequer issues
amounting to Kshs.83.6million representing 10.01 per cent of the total budget estimates as
shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 177.66 657.53 835.19
Exchequer issues (Kshs. Million) 38.3 45.3 83.6
% of exchequer issues against approved
budget
21.55 6.88 10.01
Source: County Treasury
2.3.3 Department of Transport and Infrastructure Expenditure
The table below shows Departments recurrent and development expenditure verses the budget.
Total recurrent expenditure during the period under review amounted to Kshs.26.32 Million
representing a performance of 14.81 per cent while the development expenditure incurred was
Kshs. 56.2 Million representing a performance of 8.54 per cent.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 177.66 657.53 835.19
Actual expenditure (Kshs. Million) 26.32 56.2 82.52
Absorption rate (%) 14.81 8.54 9.88
19
Source: County Treasury
2.3.4 Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs.78.96 Million representing a performance of 44.4 per cent while
the development expenditure incurred was Kshs. 240.42 Million representing a performance of
36.6 per cent.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end 2018/19 Financial Year.
Table 3. Expenditure by Economic Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations
&
Maintenance
Total
Approved budget (Kshs. Million) 55.44 122.22 177.66 657.53 835.19
Actual expenditure(Kshs. Million) 29.69 49.27 78.96 240.41 319.38
Absorption rate (%) 53.6 40.3 44.4 36.6 38.2
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 53.6 per
cent and 40.3 per cent respectively based on the annual estimates. The absorption rate of
development expenditure was 36.6 percent based on annual estimates.
Table 4 shows that the Department spent Kshs.82.52 Million against exchequer issues of
Kshs.83.6 million which was a performance of 98.71 per cent.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 38.3 45.3 83.6
20
Actual expenditure (Kshs. Million) 26.32 56.2 82.52
% of actual expenditure to exchequer
issues
68.72 124.06 98.71
2.4 TRADE, INDUSTRY, TOURISM AND ENTREPRENUERSHIP
The Department of Trade, Industry & Tourism is mandated to implement functions related to
trade, tourism and industry as assigned in the fourth schedule of the constitution and other
enabling legislation.
2.4.1 Sector strategic objectives
Institutional reforms on enterprise and tourism development
Increase tourism earnings and product diversification
Improve supply chain of small operators retail access
Promote value addition, standardization and expand market access
To create a conducive environment for doing Business.
To collect, process and disseminate Business Information to the Citizens.
To Provide Financial Support and skills to the entrepreneurs.
To Promote inter cross boarder and export trade.
To Promote Tourism Development in the County.
To Promote Innovation and Creativity to our Citizens for Entrepreneurship growth
2.4.2 Trade, Industry, Tourism and Entrepreneurship Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs. 165.31 Million
comprising of Kshs.111.41 Million recurrent and Kshs.53.90 Million development expenditure.
During the period under review, the Department received total exchequer issues amounting to
Kshs.19.36 million representing 11.71 per cent of the total budget estimates as shown in table 1.
Table 1. Exchequer issues against approved budget.
Details Recurrent Development Total
Approved budget (Kshs. Million) 111.41 53.90 165.31
Exchequer issues (Kshs. Million) 18.56 0.8 19.36
% of exchequer issues to approved budget 16.65 1.48 11.71
Source: County Treasury
21
2.4.3 Trade, Industry, Tourism and Entrepreneurship Expenditure
Table 2 shows Departments recurrent and development expenditure verses the budget. Total
recurrent expenditure during the period under review amounted to Kshs.9.2 Million representing
a performance of 8.25 per cent while development expenditure was not incurred by the
department.
Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 111.41 53.90 165.31
Actual expenditure (Kshs. Million) 9.2 0 9.2
Absorption rate (%) 8.25 0 5.57
Source: County Treasury
2.4.4 Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs.26.33 Million representing a performance of 23.6 per cent while
development expenditure incurred by the department was 1.72 Million representing an
absorption rate of 3.2 per cent during the period under review.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of 2018/19 Financial Year.
Table 3: Expenditure by Economics Classification
Details Recurrent expenditure Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget
(Kshs. Million)
15.28 96.13 111.41 53.90 165.31
Actual expenditure
(Kshs. Million)
8.89 17.35 26.24 1.72 28.05
Absorption rate (%) 58.2 18.1 23.6 3.2 17.0
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 58.2 per
cent and 18.1 per cent respectively based on the approved budget.
Table 4 shows that the Department spent Kshs.9.2 Million against exchequer issues of
Kshs.19.36 million which was a performance of 47.52 per cent.
22
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 18.56 0.8 19.36
Actual expenditure (Kshs. Million) 9.2 0 9.2
% of actual expenditure to exchequer issues 49.6 0 47.52
2.5 DEPARTMENT OF HEALTH SERVICES
The County Health Services is mandated to implement functions related to Health as assigned in
the fourth schedule of the constitution and other enabling legislation.
2.5.1 The strategic priorities of the sector
Institutional reforms
Scale up of high impact interventions at Level 1 facilities in order to reduce maternal and
neonatal mortality and morbidity.
Strengthen referral system
Provide a functional and sustainable infrastructure for comprehensive health services
Provide health care subsidy for social health protection
Re-engineering human resource for health
2.5.2 Department of Health Services Financing
In the FY 2018/19 budget estimates, the Department of Health Services was allocated Kshs.1,
558.26 million comprising recurrent allocation of Kshs.1, 268.49 million and development
allocation of Kshs.289.76 million. During the period under review, the Department of Health
Services received total exchequer issues amounting to Kshs.310.46 million representing 19.92
per cent of the total budget estimates as shown in table below
Table 1: Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 1268.49 289.76 1558.26
Exchequer issues Kshs. Million) 281.67 28.79 310.46
% of exchequer issues to approved budget 22.21 9.94 19.92
Source: County Treasury
23
2.5.2 Department of Health Services Expenditure
Department of Health Services expenditure compares the annual expenditure verses the approved
budget. Total recurrent expenditure during the period under review amounted to Kshs.285.67
Million representing a performance of 22.52 per cent while the total development expenditure
during the period under review was Kshs. 23.5 million representing a performance of 19.84 per
cent.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 1268.49 289.76 1558.26
Actual expenditure (Kshs. Million) 285.67 23.5 309.17
Absorption rate (%) 22.52 8.11 19.84
Source: County Treasury
2.5.3 Departments Expenditure by Economic Classification
This compares amount allocated in terms of Personnel Emoluments and Operations &
Maintenance and development. Total recurrent expenditure during the period under review
amounted to Kshs.851.27 Million representing a performance of 67.1 per cent while the total
development expenditure during the period under review was Kshs. 107.99 million representing
a performance of 37.3 per cent.
Table 3 shows the departments expenditure by economic classification for the period under
review.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget
(Kshs. Million)
934.43 334.06 1268.49 289.76 1.558.26
Actual expenditure
(Kshs. Million)
680.63 170.64 851.27 107.99 959.26
Absorption rate (%) 72.8 51.1 67.1 37.3 61.6
Source: County Treasury
24
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 72.8 per
cent and 51.1 per cent respectively based on the approved budget. There was an absorption rate
of 37.3 per cent of development expenditure based on approved budget.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues
(Kshs. Million)
281.67 28.79 310.46
Actual expenditure
(Kshs. Million)
285.67 23.5 309.17
% of actual expenditure to exchequer
issues
101.42 81.63 99.58
Table 4 shows that the department of health services spent Kshs.309.17 million against
exchequer issues of Kshs. 310.46 million which was a performance of 99.58 per cent.
2.6 EDUCATION SCIENCE AND TECHNICAL VOCATIONAL TRAINING
The Department of Education, Science and Technology is mandate to implement functions
related to Education as assigned in the fourth schedule of the constitution and other enabling
legislation.
2.6.1 Strategic Objectives
Institutional reforms
Improve access to Early Childhood Education and Child Care services
Improve access to and provision of quality education and technical skills
Enhance education support programmes
Introduction of Home Craft Centres
2.6.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.715.53 Million
comprising of Kshs.433.34 Million for recurrent and kshs.282.19 Million for development
expenditure. During the period under review, the Department received total exchequer issues
25
amounting to Kshs.144.08 million representing 20.14 per cent of the total budget estimates as
shown in table 1.
Table 1. Exchequer issues against approved budget.
Details Recurrent Development Total
Approved budget (Kshs. million) 433.34 282.19 715.53
Exchequer issues(Kshs. million) 135.78 8.3 144.08
% of exchequer issues to budget estimates 31.33 2.94 20.14
Source; County Treasury
2.6.3 Department of Education, Science and Technology Expenditure
Table 2 shows Departments recurrent and development expenditure. Total recurrent expenditure
during the period under review amounted to Kshs.114.25 Million representing a performance of
26.36 per cent while the development expenditure incurred by the department amounted to Kshs.
7.5 Million representing performance of 2.66 per cent.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 433.34 282.19 715.53
Actual expenditure (Kshs. Million) 114.25 7.5 121.75
Absorption rate (%) 26.36 2.66 17.01
Source: County Treasury
2.6.4 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Table 3 indicates expenditure in terms of,
Personnel Emoluments, Operation and Maintenance and development expenditure for funds
received as at the end 2018/19 Financial Year.
Table 3 shows the department expenditure by economic classification. Total recurrent
expenditure during the period under review amounted to Kshs.326.57 Million representing a
performance of 75.4 per cent while the development expenditure incurred by the department
amounted to Kshs. 33.18 Million representing performance of 11.8 per cent.
26
Table 3. Department’s Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget (Kshs.
Million)
247.08 186.26 433.34 282.19 715.53
Actual expenditure
(Kshs. Million)
163.33 163.25 326.58 33.18 359.75
Absorption rate (%) 66.1 87.7 75.4 11.8 50.3
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 66.1 per
cent and 87.7 per cent respectively based on the annual estimates. The absorption rate of
development expenditure was 11.8 percent based on annual estimates.
Table 4 shows that the Department spent Kshs.121.75 Million against exchequer issues of Kshs.
144.08 million which was a performance of 84.5 per cent.
Table 4: Exchequer Issues against actual expenditure
2.7 OFFICE OF THE GOVERNOR
The Executive Authority of the County is vested in the County Executive as stated in Article 179
of the Constitution. The mandate of the executive is to supervise and administer the delivery of
services in the County and in all decentralized units.
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 135.78 8.3 144.08
Actual expenditure (Kshs. Million) 114.25 7.5 121.75
% of actual expenditure to
exchequer issues
84.14 90.36 84.5
27
2.7.1 Strategic Objectives
To link the county government to investment opportunities both locally and overseas that
will deliver development to the people of Vihiga County
To offer legal support to the County Government departments and the public.
Coordination of County Public Service to ensure effective implementation of County
Government policies, projects and programmes
To ensure prudent management of financial resources
2.7.2 Office of the Governor Financing
In the FY 2018/19 budget estimates, the County Executive was allocated Kshs.442.58 Million
comprising recurrent allocation of Kshs.427.58 Million and development allocation of Kshs.15
Million. During the period under review, the County Executive received total exchequer issues
amounting to Kshs.96.2 million representing a performance of 21.7 per cent of the total budget
estimates as shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 427.58 15.0 442.58
Exchequer issues (Kshs. Million) 96.2 0 96.2
% of exchequer issues to approved budget 16.2 0 21.7
Source: County Treasury
2.7.3 County Executive Expenditure
County Executive expenditure compares the annual expenditure verses the budget estimates.
Total recurrent expenditure during the period under review amounted to Kshs.69.3 Million
representing a performance of 16.21 per cent while there was no development expenditure
incurred during the period under review.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 427.58 15 442.58
Actual expenditure (Kshs. Million) 69.3 0 69.3
Absorption rate (%) 16.21 0 15.66
28
Source: County Treasury
2.7.4 County Executive Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development.
Table 3 shows County Executive expenditure by economic classification. Total recurrent
expenditure during the period under review amounted to Kshs.208.75 Million representing a
performance of 48.82 per cent while there was no development expenditure incurred during the
period under review.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget
(Kshs. Million)
125.36 302.22 427.58 15 442.58
Actual expenditure
(Kshs. Million)
99.05 109.71 208.75 0 208.75
Absorption rate (%) 79.0 36.3 48.8 0 47.2
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 79.0 per
cent and 36.3 per cent respectively based on the annual estimates. There was no absorption of
development expenditure based on annual estimates.
Table 4 shows that the County Executive spent Kshs.69.3 Million against exchequer issues of
Kshs. 96.2 million which was a performance of 72.04 per cent.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 96.2 0 96.2
Actual expenditure (Kshs. Million) 69.3 0 69.3
29
% of actual expenditure to exchequer
issues
72.04 0 72.04
2.8 COUNTY ASSEMBLY
2.8.1 Introduction
Vihiga County Assembly is composed of 38 members (25 elected, 13 nominated), the speaker,
and 88 other staff. The mandate of the County Assembly is to vet and approve nominees for
public offices, approve the budget and expenditure for the County Government, approve
borrowing, approve County development planning and perform any other roles set out under
Article 185 of the Constitution.
2.8.2 Strategic objectives
To Vet and approve nominees for appointment to county public offices as provided for in
the County Government Act No. 17 of 2012.
To approve the budget and expenditure of the county government in accordance with Article
207 of the Constitution.
To approve the borrowing of the County government in accordance with article 212 of the
Constitution and county development planning.
To legislate as contemplated in Article 220(2) of the constitution, guided by Articles 201
and 203 of the constitution.
To Oversight the county executive committee and any other county executive organs.
To represent the electorate.
2.8.3 County Assembly Financing
In FY 2018/19 budget estimates, as tabulated in table below, the County Assembly was allocated
Kshs.701.28 million comprising of Kshs.607.25 million for recurrent expenditure and
Kshs.94.03 million for development expenditure. During the period under review, the County
Assembly received total exchequer issues amounting to Kshs.136.99 million representing 19.5
per cent of the C.A. total budget estimate.
Table 1. Exchequer issues against approved budget.
Details Recurrent Development Total
Approved budget (Kshs. Million) 607.25 94.03 701.28
Exchequer issues (Kshs. Million) 135.67 1.32 136.99
% of exchequer issues to approved budget 22.34 1.4 19.5
30
Source: County Treasury
2.8.4 County Assembly Expenditure
Table 2 shows County Assembly’s recurrent and development expenditure. Total recurrent
expenditure during the period under review amounted to Kshs.145.89 Million representing a
performance of 24.02 percent whereas the development expenditure amounted to Kshs. 2.32
Million Representing performance of 2.47 per cent.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Approved budget (Kshs
.Million)
607.25 94.03 701.28
Actual expenditure
(Kshs. Million)
145.89 2.32 148.21
Absorption rate (%) 24.02 2.47 21.13
Source: Vihiga County Treasury
2.8.5 County Assembly Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs.423.45 Million representing a performance of 69.7 per cent
while the development expenditure was 2.32 Million representing performance of 2.5 per cent.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of 1st Quarter of 2018/19 Financial
Year.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emolument
Operations &
Maintenance Total
Approved budget
(Kshs. Million)
322.39 284.86 607.25 94.03 701.28
Actual expenditure
(Kshs. Million)
225.21 198.24 423.45 2.32 425.77
Absorption rate
(%)
69.9 69.6 69.7 2.5 60.7
Source: County Treasury
31
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 69.9 per
cent and 69.7 per cent respectively based on the annual estimates. There was an absorption rate
of 2.5 per cent of development expenditure based on annual estimates.
Table 4 shows that the CA spent Kshs.148.21 million against exchequer issues of Kshs.136.99
million which was a performance of 108.19 per cent.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 135.67 1.32 136.99
Actual expenditure (Kshs. Million) 145.89 2.32 148.21
% of actual expenditure to exchequer issues 107.5 175.76 108.19
Source: County Treasury
2.9 DEPARTMENT OF FINANCE AND ECONOMIC PLANNING
The County Treasury is vested with the mandate of public finance management as per the PFMA
2012 Act. It ensures the principles of public finance management are adhered to as contained in
the constitution and PFMA.
2.9.1 Department of Finance and Economic Planning Financing
In the FY 2018/19 budget estimates, the County Treasury was allocated Kshs.647.44 million
comprising of Kshs.517.44 million for recurrent expenditure and Kshs.130 million for
development expenditure. During the period under review, the County Treasury received total
exchequer issues amounting to Kshs.75.63 million representing 11.7 per cent of the total budget
estimates as shown in table 1.
Table 1: Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. million) 517.44 130 647.44
Exchequer issues(Kshs. million) 75.63 0 75.63
% of exchequer issues to approved
budget 14.6 0 11.7
Source: County Treasury
32
2.9.2 Department of Finance and Economic Planning Expenditure
Table 2 shows the Department of Finance and Economic Planning expenditure verses the
approved budget. Total recurrent expenditure during the period under review amounted to
Kshs.29.3 Million representing a performance of 5.7 per cent.
Table 2. Actual expenditure against approved budget
Details Recurrent
expenditure
Development
Expenditure Total Expenditure
Approved budget(Kshs. Million) 517.44 130 647.44
Actual expenditure (Kshs. Million) 29.3 0 29.3
Absorption rate (%) 5.7 0 4.5
Source: County Treasury
2.9.3 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs.88.33 Million representing a performance of 17.1 per cent while
the development expenditure incurred by the department amounted to 30 million representing a
performance of 23.1.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received at the end of third quarter of 2018/19 Financial
Year.
Table 3. Expenditure by Economics Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget.(Kshs.
Million)
118.11 399.33 517.44 130 647.44
Actual expenditure (Kshs.
Million)
61.52 26.81 88.33 30.00 118.33
Absorption rate (%) 52.1 6.7 17.1 23.1 18.3
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 52.1 per
cent and 6.7 per cent respectively based on the annual estimates. The development budget had an
absorption of 23.1 per cent.
33
Table 4 shows that the Department spent Kshs.29.3 million against exchequer issues of
Kshs.75.63 million which was a performance of 38.7 per cent.
Table 4. Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 75.63 0 75.63
Actual expenditure (Kshs. Million) 29.3 0 29.3
% of actual expenditure to exchequer issues 38.7 0 38.7
2.10 COUNTY PUBLIC SERVICE BOARD
The Public Service Board is mandate to implement functions related to human resource matters
in the county government as assigned in the County Government Act and other enabling
legislation.
2.10.1 Sector Strategic Objective
To Facilitate recruitment and promotion of staffs in varous County department
To institute organizational framework of departments
To develope County public service human resource .
2.10.2 Boards Financing
In the FY 2018/19 budget estimates, the Board was allocated Kshs.50.92 million comprising
only of Kshs.12.43 million recurrent expenditure. During the period under review, the Board
received total exchequer issues amounting to Kshs.12.43 million representing 24.4 per cent of
the total budget estimates as shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent Development Total
Approved budget (Kshs. Million) 50.92 0 50.92
Exchequer issues (Kshs. Million) 12.43 0 12.43
% of exchequer issues to approved budget 24.4 0 24.4
Source: County Treasury
34
2.10.3 Public Service Board Expenditure
Table 2 shows Departments recurrent and development expenditure verses the budget. Total
recurrent expenditure during the period under review amounted to Kshs.5.6 Million representing
a performance of 10.9 per cent while there was no development expenditure incurred by the
department.
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total
Budget Estimates (Kshs. Million) 50.92 0 50.92
Actual expenditure (Kshs. Million) 5.6 0 5.6
Absorption rate (%) 10.9 0 10.9
Source: County Treasury
2.10.4 Public Service Board Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance. Total recurrent expenditure during the period under review
amounted to Kshs.16.66 Million representing a performance of 32.7 per cent.
Table 3 indicates expenditure in terms of, Personnel Emoluments and Operation and
Maintenance expenditure for funds received as at the end of 1st Quarter of 2018/19 Financial
Year.
Table 3. Expenditure by Economic Classification
Details
Recurrent expenditure
Development Total Personnel
Emoluments
Operations &
Maintenance Total
Approved budget ( Kshs. Million) 23.84 27.08 50.92 0 50.92
Actual expenditure (Kshs. Million) 9.07 7.59 16.66 0 16.66
Absorption rate (%) 38.1 28.0 37.7 0 37.7
Source; County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 38.1 per
cent and 28.0 per cent respectively based on the annual estimates.
Table 4 shows that the Board spent Kshs.5.6 million against exchequer issues of Kshs.12.43
million which was a performance of 45.05 per cent.
Table 4. Exchequer Issues against actual expenditure
35
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 12.43 0 12.43
Actual expenditure (Kshs. Million) 5.6 0 5.6
% of actual expenditure to exchequer issues 45.05 0 45.05
2.11 ADMINISTRATION AND COORDINATION OF COUNTY AFFAIRS
The Department is mandate to implement functions related to public service, administration and
coordination of county affairs as assigned in the Kenyan Constitution, 2010 and County
Government act 2012.
2.11.1 Sector Strategic Objectives
To formulate legal and institutional framework to enhance effective service delivery in
Public Service, Administration and Coordination of County Affairs.
Enhance management of human resource in the County Public Service;
To enhance Coordination, dissemination and management of information
To establish and strengthen infrastructure necessary for effective service delivery
To establish and operationalize County performance management and development systems.
2.11.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.399.64 million
comprising of Kshs.374.78 million for recurrent and Kshs.24.86 for development expenditure
During the period under review, the Department received total exchequer issues amounting to
Kshs 82.94 million representing 20.8 per cent of the total budget estimates as shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent Development Total
36
Approved budget (Kshs. Million) 374.78 24.86 399.64
Exchequer issues (Kshs. Million) 81.89 1.05 82.94
% of exchequer issues to budget estimates 21.9 34.2 20.8
Source: County Treasury
2.11.3 Department of Public Service and Administration
The table 2 below shows Departments recurrent and development expenditure verses the budget.
Total recurrent expenditure during the period under review amounted to Kshs.89.3 Million
representing a performance of 23.8 per cent while the development expenditure incurred by the
department was kshs.2.3 million representing performance of 9.3 per cent.
Table 2. Actual expenditure against approved budget
Details Recurrent expenditure Development Expenditure Total Expenditure
Approved budget (Kshs. Million) 374.78 24.86 399.64
Actual expenditure (Kshs. Million) 89.3 2.3 91.6
Absorption rate (%) 23.8 9.3 22.9
Source: County Treasury
2.11.4 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Total recurrent expenditure during the period
under review amounted to Kshs 253.22 Million representing a performance of 67.6 per cent
while the development expenditure incurred by the department was 10 million representing a
performance of 40.2 per cent.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of 1st Quarterof 2018/19 Financial
Year.
Table 3: Expenditure by Economics Classification
Details Recurrent Development Total
37
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget (Kshs.
Million)
247.80 126.98 374.78 24.86 399.64
Actual expenditure
(Kshs. Million)
219.68 33.54 253.22 10 263.22
Absorption rate (%) 88.7 26.4 67.6 40.2 65.9
Source: County Treasury
Personnel emolument (PE) and Operation and Maintenance had an absorption rate of 88.7 per
cent and 26.4 per cent respectively based on the annual estimates. The absorption rate of
development expenditure was 40.2 percent based on the annual estimates.
Table 4 shows that the Department spent Kshs.82.95 million against exchequer issues of
Kshs.86.2 million which was a performance of 103.9 per cent.
Table 4. Exchequer Issues to the Department against actual expenditure
Details Recurrent
expenditure (Kshs.
Million)
Development
expenditure (Kshs.
Million)
Total
expenditure(Kshs.
Million)
Exchequer issues 81.9 1.05 82.95
Actual expenditure 83.9 2.3 86.2
% of actual expenditure to
exchequer issues
109.04 219.04 103.9
2.12 GENDER, CULTURE, YOUTH, SPORTS AND SOCIAL SERVICES
The Department of Gender, Culture, Youth and Sports is mandate to implement functions related
to Gender, culture and sports as assigned in the fourth schedule of the constitution and other
enabling legislation.
2.12.1 Sector Strategic Objectives
To promote, preserve and develop all functional aspects of Culture for Sustainable
development;
To develop and promote sports activities in the County;
Youth mainstreaming and empowerment
Gender Mainstreaming
Child development and protection
38
2.12.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.238.18 million
comprising of Kshs.151.18 million recurrent and Kshs.87 million for development expenditure.
During the period under review, the Department received total exchequer issues amounting to
Kshs.34.33 million representing 22.7 per cent of the total budget estimates as shown in table 1.
Table 1. Exchequer issues against approved budget
Details Recurrent) Development Total
Approved budget (Kshs. Million) 151.18 87.00 238.18
Exchequer issues (Kshs. Million) 34.33 0 34.33
% of exchequer issues to approved budget 22.7 0 14.4
Source: County Treasury
2.12.3 Department of Gender, Culture, Youth & Sports Expenditure
Table 2 shows Departments recurrent and development expenditure verses the budget. Total
recurrent expenditure during the period under review amounted to Kshs.31.5 Million
representing a performance of 20.8 per cent while there was no development expenditure
incurred by the department during the period under review.
Table 2. Actual expenditure against approved budget
Details Recurrent expenditure Development Expenditure Total Expenditure
Budget Estimates(Million) 151.18 87.00 238.18
Total expenditure(Million) 31.5 0 31.5
Absorption rate (%) 20.8 0 13.2
Source: County Treasury
2.12.4 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Personnel emolument (PE) and Operation and
Maintenance had an absorption rate of 64.8 per cent and 60.7 per cent respectively based on the
annual estimates. There was nil absorption of development expenditure based on annual
estimates.
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Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of 1st Quarterof 2018/19 Financial
Year.
Table 3. Expenditure by Economic Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations &
Maintenance
Total
Approved budget
(Kshs. Million)
27.43 123.75 151.18 87.00 238.18
Total expenditure (Kshs. Million) 17.76 75.06 92.82 0 92.82
Absorption rate (%) 64.7 60.7 61.4 0 39.0
Source: County Treasury
Table 4 shows that the Department spent Kshs. 92.82 million against exchequer issues of
Kshs.106.36 million which was a performance of 87.3 per cent. This implies that the department
did not spend 12.7 per cent of money it requested.
Table 4 Exchequer Issues against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 34.33 0 34.33
Actual expenditure (Kshs. Million) 31.5 0 31.5
% of actual expenditure to
exchequer issues 91.7 0 91.7
2.13 DEPARTMENT OF ENVIRONMENT, WATER, NATURAL RESOURCES AND
FORESTRY
The Department of Department of Environment, Water, Natural Resources and Forestry is
mandate to implement functions related to water and environment as assigned in the fourth
schedule of the constitution.
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2.13.1 Sector strategic objectives
To rehabilitate the existing water supplies in the County in order to restore optimum
production to meet the demand within their service area through County and development
partners’ funds.
To expand the major water supplies in the county to serve additional population of
approximately 270,000 people through the Belgian funded project.
To reduce production costs by constructing solar farm for the three major water schemes of
Kaimosi, Maseno and Mbale under Belgian funded project
To improve sanitation in major urban centres of Mbale, Luanda, Chavakali, Hamisi and
Kaimosi by setting up an elaborate sewerage system and proper management of solid waste.
To complete the on-going projects, revive stalled rural water projects, and implement new
projects so as to increase water coverage from the current 16.5% to 45% in the next 3years
through County funds.
To restore degraded land and improve social livelihood through reclamation and
conservation by the help of strategic partners.
To conserve water, control flooding and soil erosion through construction of roof water
catchments, storm water management, construction of small dams and pans by the help of
County government and other partners and donor funding.
To reduce production costs and increase water coverage to about 90% by implementing a
long-term solution of a greater Vihiga gravity scheme with source at Chepsonoi in Nandi
County or through exploration of deep wells in the next 10 years. Strategic partners sought
(Hydro source International had shown interest in the deep wells)
To create jobs and improve livelihoods through setting up of a mining(granite)factory in the
county.
To improve the environment through encouragement of use of clean energy and encourage
planting of fast growing environment friendly trees on community hill tops and farms.
Strategic partners sought.
2.13.2 Departments Financing
In the FY 2018/19 budget estimates, the Department was allocated Kshs.242.36 million
comprising of Kshs.80.25 million for recurrent and Kshs.162.11 million for development
expenditure. During the period under review, the Department received total exchequer issues
amounting to Kshs.25.87 million representing 10.7 per cent of the total budget estimates as
shown in table 1.
Table 1. Exchequer issues against approved budget.
Details Recurrent Development Total
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Approved budget (Kshs. Million) 80.25 162.11 242.36
Exchequer issues (Kshs. Million) 14.57 11.3 25.87
% of exchequer issues to approved budget 87.4 95.9 87.2
Source: County Treasury
2.13.3 Department of Environment, Water, Natural Resources and Forestry Expenditure
Table 2 shows Departments recurrent and development expenditure verses the budget. Total
recurrent expenditure during the period under review amounted to Kshs.80.25 Million
representing a performance of 22.1 per cent while the development expenditure incurred by the
department amounted to Kshs. 9.45 Million representing performance of 5.8 percent
Table 2. Actual expenditure against approved budget
Details Recurrent Development Total Expenditure
Approved budget (Kshs. Million) 80.25 162.11 242.36
Actual expenditure (Kshs. Million) 17.7 9.45 27.15
Absorption rate (%) 22.1 5.8 11.2
Source: County Treasury
2.13.4 Departments Expenditure by Economic Classification
The Departments expenditure compares amount allocated in terms of Personnel Emoluments and
Operations & Maintenance and development. Personnel emolument (PE) and Operation and
Maintenance had an absorption rate of 71.5 per cent and 70.7 per cent respectively based on the
annual estimates. The absorption rate of development expenditure was 24.3 percent based on the
annual estimates.
Table 3 indicates expenditure in terms of, Personnel Emoluments, Operation and Maintenance
and development expenditure for funds received as at the end of 1st Quarterof 2018/19 Financial
Year.
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Table 3 Department’s Expenditure by Economic Classification
Details Recurrent Development Total
Personnel
Emoluments
Operations
&
Maintenance
Total
Approved budget (Kshs. Million) 28.29 51.96 80.25 162.11 242.36
Actual expenditure (Kshs. Million) 20.24 36.72 56.96 39.45 96.41
Absorption rate (%) 71.5 70.7 71.0 24.3 39.8
Source: County Treasury
Table 4 shows that the Department spent Kshs.27.15 million against exchequer issues of
Kshs.25.87 million which was a performance of 95.28 per cent. Table 4. Exchequer Issues
against actual expenditure
Details Recurrent Development Total
Exchequer issues (Kshs. Million) 14.57 11.3 25.87
Actual expenditure (Kshs. Million) 17.7 9.45 27.15
% of actual expenditure to exchequer issues 121.5 83.6 95.28
3.0 OBSERVATIONS AND RECOMMENDATIONS
The County has made progress in addressing some of the challenges previously identified as
affecting budget implementation. Some of the progress made include:
Improvement in own revenue collection by 28.3 per cent from the same period of FY 2017/18
where Kshs 121.53 Million compared to Kshs. 94.76 Million Collected during similar period
in FY 2017/18.
A total of Kshs.541.93 Million was spent on development activities, an increase of 255.5%
compared 152.42 Million spent during similar period of FY 2017/18.
Despite the above progress, the following challenges continued to hamper effective budget
implementation;
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Increase in personnel emolument from Kshs. 1.32 Million spent during the first three months
of FY 2017/18 compared to Kshs. 1.62 Million Spent during the first three months of FY
2018/19.
Delay by National Treasury to disburse to the county in a timely manner.
Failure by county to plan for ongoing and pending bills
The County should implement the following recommendations in order to improve budget
execution;
Departments should strictly adhere to the cash disbursement as approved by the office of
controller of Budget (OCOB).
The county treasury should liaise with the National treasury to ensure that funds allocated to
the county are released in a timely manner in line with CARA 2018 disbursement schedule.
The county department to plan for all ongoing and pending bills.