samburu county government - ipf kenya … county/2016-2017... · table 1: county revenue sources...

Minus Zer o draft

SAMBURU COUNTY GOVERNMENT

MEDIUM TERM

COUNTY FISCAL STRATEGY PAPER

FEBRUARY 2016

Minus Zer o draft

ii

Information in this publication may be reproduced without restriction provided that dueacknowledgement of the source is made.

Enquiries covering the publication should be addressed to:

Chief Finance Officer

County Treasury

P.O. Box3-20600 Maralal, Kenya

Tel: (065) 624569

Fax: (065) 62075

Email: [email protected]

This publication is available at the County Website : www.samburu.go.ke

Minus Zer o draft

iii

Table of Contents Page

Acknowledgement...................................................................................................................................v

Legal Basis..........................................................................................................................................vi

Fiscal Responsibility ........................................................................................................................ vii

CHAPTER ONE: OVERVIEW.............................................................................................................1

Introduction: .......................................................................................................................................1

Outline of the 2016 County Fiscal Strategy Paper.............................................................................4

CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK ...........5

Overview of Recent Economic Performance......................................................................................5

Development Challenges.....................................................................................................................6

County Economy.................................................................................................................................6

Update on Fiscal Performance and Emerging Challenges ................................................................9

National Growth Update...................................................................................................................11

CHAPTER THREE: FISCAL POLICIES AND BUDGET FRAMEWORK....................................12

Overview............................................................................................................................................12

Observing Fiscal Responsibility Principles ......................................................................................13

Fiscal structural reforms ..................................................................................................................14

Budget Framework ...........................................................................................................................16

CHAPTER FOUR: MEDIUM TERM EXPENDITURE FRAMEWORK........................................18

Resource Envelope ............................................................................................................................18

Spending Priorities............................................................................................................................18

Details of Sector Priorities ................................................................................................................20

CHAPTER FIVE – CONCLUSION ....................................................................................................35

Annexes

Table 1: County Revenue Sources 2015-16 ..............................................................................................................................36

Table 2: Revenue Analysis by departments (31-12-2015) ......................................................................................................36

Table 3 :Comparison of Budget Estimates and Actual Expenditure.( 31-12-2015)..............................................................37

Table 4:Economic Classification of Expenditure (31-12-2015) ..............................................................................................37

Table 5: Revenue Estimates for the period................................................................................................................................38

Table 6:MTEF Sector Ceilings 2016/2017 – 2018/2019 with Indicative Projections.............................................................39

Figure 1: County Revenue Sources...........................................................................................................................................40

Minus Zer o draft

iv

Foreword

This fiscal strategy paper, the third to be prepared by the Samburu County Government sets out

the policy priority programs to be implemented in the Medium Term Expenditure Framework

(MTEF) under the devolved system of Government. It sets out county policy goals and strategic

priorities that will be the basis for formulation of County’s Financial Year 2016/17 budget. The

Paper is prepared in accordance with the Public Finance Management Act, 2012.

The fiscal strategy paper takes cognizance of the reality of scarce resource and the fact that there

is need to invest on high impact programmes within a framework of sustainable fiscal stance. We

are alive to the fact that, the county faces myriad challenges among them high illiteracy levels,

water shortages, access to healthcare, poor road network, environmental degradation, and

insecurity among others. To address these challenges the government presents this county fiscal

strategy paper on the basis of laying a solid foundation for faster socio-economic development

and sustainable growth.

The County priorities and goals outlined herein are based on the County Integrated Development

Plan with emphasis on investment in: Creating conducive business environment, investing in

Agriculture transformation and food security, investing in quality and accessible health care and

education, scaling up investment in infrastructure development and Maximizing the use of county

natural resources. These priorities shall form the basis for formulation of FY 2016/17 budget.

The paper covers the following broad areas; review of the fiscal performance of financial year

2015/2016; highlights of the recent economic developments and the economic outlook; broad

strategic priorities and policies for the Medium Term and the Medium Term Fiscal Framework.

The fiscal framework presented in the paper ensures a sustainable financing while allowing

continued spending on priority programmes. Achievement of the set objectives calls for greater

transparency, effectiveness and efficiency in public financial management in order to ensure

fiscal discipline.

Minus Zer o draft

v

Acknowledgement

This is the third County Fiscal Strategy Paper (CFSP) to be prepared for tabling in the County

Assembly under the Public Finance Management Act (PFMA) 2012. It outlines the broad

strategic issues and fiscal framework together with summary of government revenues and

spending, as a basis for 2016/17 budget and in the medium term. It is expected that this document

will create and improve the understanding of the public finances. It is also expected to inform and

guide the public debate on the county development matters.

The overriding policy thrust of 2016 Fiscal Strategy Paper, therefore, is to sustain economic

growth by focusing on economic policies aimed at facilitating private sector to expand and

promote productivity for wealth creation and poverty reduction.

The preparation of the 2016 CFSP was achieved through consultation and co-operation between

county treasury and all county departments. We are grateful for the input from the County

Executive Committee Members,County chief officers, County directors, county sector working

group, the general public, Commission on Revenue Allocation (CRA) , The National Treasury

(TNT) and other stakeholders.

A core team in the county treasury dedicated significant amount of time putting together this

paper. Special thanks go to the following members of the county treasury who met and worked

tirelessly to prepare this document under the leadership of the County Executive Committee-

Finance and planning- Mr. Jonathan Leisen , Chief Finance Officer- Mr. Daniel Lenolkirna, Head

of Economic Planning- Mr Kenneth Malel ,Head of Revenue -Mr. Sammy Lenanyokie, Head of

Accounting -Mr Joseph Lekalkuli and Head of Budget -Mr David Njenga. Additionally, I would

like to take this opportunity to thank the entire team of county treasury for their commitment,

sacrifice and dedication to public service.

Minus Zer o draft

vi

Legal Basis

.

Legal Basis for the Publication of the CFSP.

The county fiscal strategy paper is prepared in accordance with Section 117of the PFMA. The law states that:The County Treasury shall prepare and submit to the County ExecutiveCommittee the CFSP for approval and the County Treasury shall submit theapproved CFSP to the County Assembly, by the 28th February of each year.(2) The County Treasury shall align its CFSP with the national objectives inthe BPS.(3) In preparing the CFSP, the County Treasury shall specify the broadstrategic priorities and policy goals that will guide the county government inpreparing its budget for the coming financial year and over the medium term.(4) The County Treasury shall include in its CFSP the financial outlook withrespect to county government revenues, expenditures and borrowing for thecoming financial year and over the medium term.(5) In preparing the CFSP, the County Treasury shall seek and take intoaccount the views of —(a) the CRA;(b) the public;(c) any interested persons or groups; and(d) any other forum that is established by legislation.(6) Not later than fourteen days after submitting the CFSP to the countyassembly, the county assembly shall consider and may adopt it with orwithout amendments.(7) The County Treasury shall consider any recommendations made by thecounty assembly when finalizing the budget proposal for the financial year2015/16.(8) The County Treasury shall publish and publicize the CFSP within seven

days after it has been submitted to the county assembly.

Minus Zer o draft

vii

Fiscal Responsibility

Fiscal Responsibility Principles in the PFM Law

In line with the Constitution, the PFM, sets out the fiscal responsibilityprinciples to ensure prudency and transparency in the management ofpublic resources. The PFM law (Section 107) states that:

(a) The county government’s recurrent expenditure shall not exceedthe county government’s total revenue;(b) Over the medium term a minimum of thirty percent of the countygovernment’s budget shall be allocated to the developmentexpenditure;(c) The county government’s expenditure on wages and benefits for itspublic officers shall not exceed a percentage of the countygovernment’s total revenue as prescribed by the County Executivemember for finance in regulations and approved by the CountyAssembly;(d) Over the medium term, the government’s borrowings shall be usedonly for the purpose of financing development expenditure and not forrecurrent expenditure;(e) The county debt shall be maintained at a sustainable level asapproved by county assembly;(f) The fiscal risks shall be managed prudently; and(g) A reasonable degree of predictability with respect to the level oftax rates and tax bases shall be maintained, taking into account any taxreforms that may be made in the future.

Minus Zer o draft

viii

ABBREVIATIONS AND ACRONYMS

ADP Annual Development Plan

BPS Budget Policy Statement

CFSP County Fiscal Strategy Paper

CRA Commission on Revenue Allocation

CIDP County Integrated Development Plan

ECD Early Childhood Education

FY Financial Year

ICT Information,Communication and Technology

IFMIS Integrated Financial Management Information System

IMF International Monetary Fund

IPPD Integrated Payroll and Personnel Data

KSH Kenya Shillings

MTEF Medium Term Expenditure Framework

MTP Medium Term Plan

PBB Programme Based Budget

PFMA Public financial Management Act 2012

Minus Zer o draft

1

CHAPTER ONE: OVERVIEW

Introduction:

1. The third County government Medium Term Expenditure Framework (MTEF) budget for the

FY 2016/17 will be prepared in the face of challenging economic environment. Generally the

Kenyan economy faces a range of challenges as the projected annual growth of 10% expected to

lead to sustainable development has not been achieved due to a number of reasons including

failure to meet the targeted annual investment growth. This coupled with the need to implement

the Constitution and kick start an expansive devolution exercise has squeezed the national

government resources. Other external factors impactin g on the economy e.g al-shabaab threat

and associated security concerns that has affected tourism earnings- there has been a decline in

revenue collections from Sambru National Reserve due to insecutrity .

2. Beyond our borders, the IMF, World economic outlook releases paint a weakening global

environment. The County government of Samburu operating under this challenging economic

environment has seen resources transferred from the national government not meeting the

resource requirements for the functions transferred and locally we witness sluggish economic

performance leading to a below par collection of local revenue.

In the wake of the various economic challenges, there is need to exercise strict fiscal discipline

while focusing on areas that will ignite the economic potential of our county. This calls for

support of the productive, private sector investment and wealth generating sectors of the economy

while at the same time strengthening investment in economic infrastructure for sustainable long

term growth. The county will thus focus on strengthening the potential it is endowed with to

stimulate economic growth and development across all sectors.

3. The key policy for the county in implementing the 2016/17 budget will focus on investing in

sectors that will lead to further economic investments in the County, improve local revenue and

employment creation. The county will therefore focus on strategic physical infrastructure to

facilitate the productive sectors and facilitate the private sector to expand and promote

productivity.

4. Priority areas will include investment in agriculture, roads and water infrastructure, transport,

trade, investment, tourism, youth and sports as well as social-economic sectors such as health,

and education. This will be implemented within the available resource envelope.

Minus Zer o draft

2

5. The implementation of programs under the four pillars, as expounded in 2015 CFSP, is

expected to raise economic efficiency, productivity and in turn, make Samburu County

competitive, thus creating vast opportunities and securing livelihoods. The progress made under

each pillar of the strategic plan follows;

6. Pillar 1: Infrastructure: - The County lacks basic infrastructure for its residents and for

delivery of services. As a matter of priority, the County shall focus on providing basic

infrastructure to facilitate delivery of other services. These shall include roads, water, and other

related public works.

7. Much progress has been achieved in the implementation of road rehabilitation and construction

program. To date, the County Government has upgraded 10 kilo meters of Maralal town roads to

probase roads, designed the construction of Seyia Bridge, done road grading and maintenance in

different roads and installed street lights in 5 major urban roads. Going forward, the county

Government will continue to invest in expansion of road network to open up rural areas, ease

movements of goods and passengers and encourage growth of commerce throughout the county.

8. Safe drinking water and sanitation also complement efforts towards improved primary health

care and productive of labor force. For this reason, Government has sunk 26 boreholes,

rehabilitated 9 water supplies, disilting of various water pans and supported the boreholes running

costs in the current financial year. In addition the County Government has supported the water

company with ksh 65 million in the current financial year. The county Government has invested

significantly to enhance access to sustainable water supplies.

9. Pillar 2: Economic Development: - To improve the lives of its residents, the county shall

provide economic development services that shall increase economic activities as well as attract

investments and provide employment. Key areas of intervention shall include promotion of

agribusiness, agriculture, trade, tourism, microenterprises and cooperative development.

The County Government increased investment towards expansion of irrigation infrastructure in

various schemes throughout the county to facilitate smart agriculture, improve crop yields and

sustain rural livelihoods.

Minus Zer o draft

3

10. Culture and heritage remains the cornerstone of our tourism strategy. Therefore, the strategy

to transform tourism as a key driver of employment, will focus on preservation and protection of

our culture, encourage growth of youth talents in sports and arts and nurture them as catalyst for

growth and development.

11. Pillar 3: Social Development:-The County shall also focus on improving the quality of life

for its residents as well as ensure the rights of the vulnerable members of the community are

protected. These shall include providing essential services in ECD, polytechnic training, health,

culture, and sports.

12. The County Government remains committed to addressing unemployment, especially among

the youth, women and persons with disability so as to secure sharing in prosperity. Therefore, the

County Government will build on on-going youth and women support programs to tap the

creativity and knowledge of the young people so as to encourage entrepreneurship and

innovation. Priority will also be given to skills development and accesses to credit to enable these

groups are dynamic drivers of growth and employment creation. The requirement for at least 30

percent of all public procurement to be reserved for the youth, women and persons with disability

is entrenched in law and currently being enforced by the county government. In addition, Ksh

37.8 million was disbursed to women through the women enterprise fund over the last one year.

13. The County Government strategy on health care reforms aims to build a lasting healthy

Kenya with higher productivity for sustained economic transformation and long term

development. This strategy builds on notable progress achieved thus far, especially in controlling

communicable diseases and attaining marked decrease in child mortality. To date, the County

Government has been running free maternity program in health facilities and free primary health

care in health facilities. However, there are outstanding and emerging health challenges

associated with affluence putting pressure on our health care system. Further, inefficiency in our

health care system emanates from skewed distribution of resources, knowledge practice gaps as

well as stock outs of drugs and medical supplies. The County can, therefore, achieve better health

outcomes with the current level of spending.

Minus Zer o draft

4

14. Tremendous progress has been achieved, over the recent past, on ECD access, largely due to

increased enrolment. Construction of 51 ECD classrooms is in the process and recruitment of 90

teachers is also underway. In its effort to impact youth with skills Ksh 14million have been set

aside in revamping our youth polytechnic where 5 tutors have been engaged.

15. Pillar 4: Sustainable Environment- This is guided by the sustainability principles which

includes right to a clean and healthy environment and development, polluter pays principle and

joint management of trans-boundary environmental resources. The County Government have

invested resources to protect and conserve natural environment in different areas like tree

planting, construction of various gabbions and in range land management. The eatablishment of

various consevancies further promotes preservation of the current natural environment. The

forest cover in the county is 12.5 % which is above the countrys desire of 10% .The county have

invested ksh 5 million in afforestation programmes in the last one year and intends to continue

with the investment to ensure the coverage is maitained.

16. Outline of the 2016 County Fiscal Strategy Paper

Recent economic developments and policy outlook

Section II outlines the economic context in which the 2016/17 MTEF budget is prepared. It

provides an overview of the recent economic developments and the macroeconomic outlook

covering the global and domestic scene.

Section III outlines the fiscal framework that is supportive of growth over the medium-term,

while continuing to provide adequate resources to facilitate the policy priorities of the county

Government.

Section IV presents the resource envelope and spending priorities for the proposed 2016/17

MTEF Budget and the Medium Term. Sector achievements and priorities are also reviewed for

the 2016/17 MTEF period.

Section V concludes.

Minus Zer o draft

5

CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK

Overview of Recent Economic Performance

STATE OF GLOBAL ECONOMY

17. The global economy is expected to grow at 3.1 % in 2015, slightly less than forecast in

January, before strengthening moderately to 3.2% in 2016–17. Developing Country growth,

buffeted by falling Commodity prices, the stronger dollar, and tightening financial conditions,

has been revised downward to 4.4 % in 2015 but is expected to pick up momentum and reach 5.3

% in 2016–17.

Risks to the outlook remain tilted to the downside, as new challenges have emerged even as pre-

existing ones have become more balanced. In particular, tighter global financial conditions could

combine with deteriorating growth prospects, especially in commodity-exporting countries, to

raise the possibility of greater financial stress. The strengthening dollar could also slow the

United States of America economy more than expected earlier, leading to some global strain.

Kenya Economy

18. Kenya’s economy grew by an estimated 4.9% in the first quarter of 2015, compared to 4.7%

in the same period in 2014, according to Kenya National Bureau of Statistics. Agriculture,

infrastructure, financial services and ICT contributed to the growth, but manufacturing and

tourism declined. The economy grew by 5.4% in 2014 and the World Bank, in its Kenya

Economic Update for March 2015,projected the economy will grow by5.6% in 2015, supported

by lower energy costs, investment in infrastructure, agriculture, manufacturing and other

industries. A stable macroeconomic environment, continued investment in infrastructure,

improved business environment, exports and regional integration will help sustain the growth

momentum.

19. The government has also maintained fiscal and monetary discipline, despite increasing

pressure from the devolution process and rising public sector wage bill. Total public debt has

increased but remains sustainable, according to Central Bank figures, while inflation and interest

rates remained stable. The stock exchange weakened due to net foreign investor sales, while the

Kenya shilling weakened against the United States dollar and other major currencies.

Minus Zer o draft

6

Social Developments

20. Kenya has met a few of the Millennium Development Goals (MDG) targets, includingreduced child mortality, near universal primary school enrolment and narrower gender gaps ineducation. Interventions and increased spending on health and education are paying dividends. Itis for this reason that the world has now shifted to Sustainable Development Goals (SDG). Theseare 17 goals with broad range of issues, including ending poverty and hunger, improving healthand education, making cities more sustainable, combating climate change, and protecting oceansand forests. Devolved health care and free maternal health care at all public health facilities willimprove health care outcomes and develop a more equitable health care system.

Development Challenges

21. Kenya has the potential to be one of Africa’s great success stories from its growing and

youthful population, a dynamic private sector, a new constitution, and its pivotal role in East

Africa. Addressing challenges of poverty, inequality, governance, low investment and low firm

productivity to achieve rapid, sustained growth rates that will transform the lives of ordinary

citizens, will be a major goal for the country

County Economy

Devolution

22. The devolved system of government took effect after the general election of March 2013 and

it is in third year now. The new system has come with myriad challenges but at the same time

offered us a great opportunity to manage our affairs in order to improve the lives of our people.

As a County government, we have been in existence for approximately three years but have made

significant progress in setting governance structures as well as in implementing some key priority

programs. The following paragraphs highlight the progress in sectoral Programs/projects.

Health Sector

23. In an effort to achieve the goal of realizing accessible, quality and affordable healthcare

services for county residents, the government has signed contracts worth Ksh 24 Million for

construction and equipping of health facilities across the county. In addition, ambulances have

been procured and delivered for sub-county hospitals. Drugs and other non-pharmaceuticals

worth over Ksh 75 million have been acquired for all health facilities. It is the government vision

to ensure that all health facilities stock adequate quantities of quality drugs. Hiring of medic

Personnels has been undertaken by the County and more will be hired in 2016/17.

Minus Zer o draft

7

Education Sector

24. The County government is responsible for the pre-primary education, youth training and

development and sport development and about Ksh 409 million have been set a side for the

sector. Equipping of Early Childhood Education (ECD) across the county, In addition, youth

polytechnic have received support worth Ksh 14 Million in construction of infrastructure,

purchases of tools and equipment, development of youth resource centers.

Ninety (90) ECD teachers are in the process of being recruited in the current financial year who

will be deployed across the county. This will ensure that children receive quality start in their

education lives.

A Bursary Scheme was recently launched by the government with the sole purpose of supporting

bright but needy students joining secondary schools and colleges. The amount allocated in 2015-

16 budget was ksh 62 million. This scheme will be enhanced over time to allow many needy

students to complete their studies. However, the government will continue to collaborate with

the national government and other development partners in promoting the growth of the sector.

Transport ,Infrastructure and water sector

25. This sector is vital for improving road network and thus ensuring ease of transport and

water provision. The county government have invested heavily in the road sector with purchase

of plant, machinery and equipment. This will enable the government to carry out road

construction works efficiently and effectively at lower costs.

Contracts have been signed and work started for opening of new roads and improvement of

existing roads in most parts of the county. Besides another significant work has been done in

road maintenance by use of community labour. Street lighting in maralal is complete and the

same will commence soon in Baragoi,Archers ,suguta mar mar, kisima and Wamba worth ksh

21Million.

26. The government’s vision is to achieve the millennium development goal of ensuring that

majority of people access clean and reliable source of water. Works on these projects are

ongoing. Design and procurement of other water projects, i.e., dams, water supply and rain water

harvesting facilities are ongoing.

Minus Zer o draft

8

Agriculture,Livestock and Fisheries Sector

27. This sector is important for enhancing food security through irrigation and promotion of crop

production in arable land.

The promotion of value chain in livestock production endures that the community is empowered

economically. The provision of bulls ,gala goats and camels ensures improvement in the breeds

currently reared by farmers. The promotion of fish ponds and provision of fingerrings is one way

of diversification by farmers to mitigate the loss of animals during drought season.

Trade, Cooperative and Tourism Sector

28. This sector is important not only in building business enterprise through promoting

innovation and investment but also supporting entrepreneurship, through trainings and credit

access. The department is also key in promoting tourism by investing in tourist attraction

facilities and creating awareness on products development within the game reserves,

partnerships and in marketing Samburu as a first choice of tourist destination.

Towards achieving its mandate, the department has embarked on infrastructural development of

markets, information centres and tanneries and profiling of investment opportunities in the

County. Many tourist sites and infrastructure have also been identified for refurbishment and

new community conservancies estabilished.

Support to co-operative societies and community enterprise initiatives for purposes of promoting

tourism and income generation is also an important role of the department.

A massive flagship project to promote Samburu National Reserve as a tourist destination is the

current task of the department. This will be achieved through significant allocation of resources

by the county government and also in seeking partnerships with other organizations.

Environment and Natural resources Sector

29. The department was allocated ksh 55 Million for development projects. The department

have purhased garbage collection trucks to aid in solid waste management and address issues of

sanitation. The department have undertaken trainings on sustainable land management such

reseeding of degraded areas and control of invasive species. Policies to address and operanalize

afforestation and reaforestation programmes are at advanced stage. In a bid to exploit the natural

resources available to sustain community livelihood the department have partnered with the

ministry of mining to start different quarries in the county.

Minus Zer o draft

9

Gender, Culture and Social Services Sector

30. The Department has been allocated at least Ksh 25 million for construction of county library,

social hall and completion of various social hall and stadiums. Currently, a regulatory

framework is being worked out to facilitate gender programs.

Lands, Housing and Urban development Sector

31. The department has embarked the process of surveying, development of physical plans for

various towns, taking inventory of public land and other resources within the County. More

allocations will be made for purposes of setting up a land bank, effective spatial and urban

planning as well developing housing schemes.

Update on Fiscal Performance and Emerging Challenges

REVIEW OF FISCAL PERFOMANCE IN 2015/16

County revenue

32. Total revenue for the county from exchequer releases, local revenue and donations was ksh

1,722 million for the first half of the year. The major source of revenue was exchequer release

from the national treasury which amounted to Ksh 1, 620 Million followed by local revenue

source with Ksh 85 Million and donor funding accounting for Ksh 16.8Million of the total

revenue as indicated in table 1.The total revenue collection by all departments for the first half of

the year was Ksh 85 million and the major contributor was the department of Trade, Tourism

and cooperatives as shown in table 2.

Total County Expenditure

33. The total spending by departments amounted to ksh 2,034,680 for the first half of financial

year. Table 3 compares the approved budget against the actual expenditure for the first six

months i.e. July 2015 to December 2015. Overall the county was able to spend ksh 2,034,722,680

in the first half of the year out of the total budget of ksh 4,340,703,310. This represents an

absorption rate of 47 % against expected absorption of 50%.

Minus Zer o draft

10

The department of Public Works, County Roads and Water was the highest spender compared to

budget while the department of Gender, Culture and Social Services spent the lowest amount

compared to budget. However absorption across all departments is expected to improve in the

second half of the year. There are no major changes expected under recurrent expenditure and

spending in the second half is expected to be relatively the same as reported in the first half.

Table 4 categorize expenditure into three major economic classification namely

a) Personnel emolument is composed of basic staff salary and all allowances.

b) Operation and maintenance include expenditure incurred in running the offices such as

payment of bills, maintenance of vehicle, maintenance of building, fueling of vehicle, travelling

cost and purchase of working tools such as stationeries, computer and accessories and any other

cost incurred in running the office.

c) Development expenditure involves amount incurred in payment of capital projects.

34. Majority of development expenditure during the first half relates to previous financial year

project which were rolled over to the current financial year. Majority of the project in budget will

be implemented in the second half and proportion of expenditure on development is expected to

improve .Personnel emoluments, operation and maintenance expenditure are expected to remain

relatively the same. This requires the departments to be more cautious on spending and cut on

unnecessary cost while at the same time fast tracking implementation of projects to ensure that

they are completed within the time frame set in contract agreement.

Update on Fiscal Performance and emerging challenges

35. The fiscal assumption underlying the 2015/16 budget entail improved revenue collection.

However, the first half local revenue collection amounted to ksh 85 million against an annual

target of ksh 356 million. This illustrate that the county managed to collect 24 % 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

Minus Zer o draft

11

The first disbursement from the national treasury was in August 2015 which has affected the

absorption of fund during the first half as most programs were delayed pending availability of

fund. In addition many incomplete project from financial year 2014/15 were rolled over to year

2015/16 and more focus was on ensuring the completion of these projects. This delayed the

implementation of new project and absorption of development expenditure as various

departments concentrated on existing project.

36. Implementation of 2015/16 budget.

In the current financial year the county has experienced shortfalls in our local revenue. The

shortfalls coupled with delays in receiving our equitable share from national treasury imply our

spending plans were distorted. To remedy the situation revenue collections need to be a

responsibility of all the departments. The departments own a fiscal responsibility of raising

resources that will support their economic operations in future. In the current fiscal year,

automation of major revenue sources has been budgeted for.

National Growth Update

37. Kenya’s economy is estimated to have expanded by 5.3 % in 2014, compared to a growth of

5.7 per cent in 2013. From the demand side, growth was mainly driven by an increase in private

final consumption and a rapid growth in capital investment. From the supply side, the major

drivers of the economy were agriculture, forestry and fishing; construction; wholesale and retail

trade; education; and finance and insurance. However, accommodation and food services (hotels

and restaurants) sector contracted for the second year in a row.

During the year, the main macroeconomic indicators remained relatively stable. The Kenya

Shilling generally held firm against the major trading currencies despite its depreciation against

the United States dollar, Sterling pound and Euro, while weighted average commercial banks’

leading rate remained relatively high but stable. Despite the drop in prices of fuel, electricity and

some food commodities, inflation rose slightly but remained within the Central Bank of Kenya

(CBK) target. The Balance of Payments position improved mainly on account of proceeds from

the sale of the Eurobond. However, the current account deficit worsened due to deterioration in

trade deficit. Government fiscal policies in the 2014/15 national budget, focused on increased

revenue mobilization and containment of growth in recurrent expenditure. Consequently, the

share of the development expenditure increased to 44 per cent of the total budget in 2014/15

fiscal year from 33% in 2013/14( Economic Survey 2015).

Minus Zer o draft

12

CHAPTER THREE: FISCAL POLICIES AND BUDGET FRAMEWORK

Overview

38. Fiscal responsibility is of utmost importance since the Constitution requires the County

Government to progressively provide for a minimum basic standard of economic and social rights

to its citizens within available resources. In order for spending to increase on a sustainable basis

to meet these basic needs, we should be prepared to match the increased expenditure demands

with a corresponding increase in revenue yield through efficient collection and widening of

revenue bases. The Fiscal Policy underpinning the FY 2016/17 Budget and MTEF aims at local

revenues of more than 7% of total expenditure over the medium term and containing growth of

total recurrent expenditure.

39.Review of salaries and benefits for the public sector workers will continue to be guided by

Salaries and Remunerations Commission (SRC) in accordance with Article 230 of the

Constitution. The PFMA regultions stipulate that personnel cost should be less than 35% of the

total expenditure.

40.With the passing of Public Finance Management Regulations by parliament this year,

borrowing guidelines will be adhered to as set out in those guidelines when need arises.

Nevertheless, as a prudent fiscal policy over the medium term, the County Government’s

borrowings shall be used only for the purpose of financing development expenditure and not for

recurrent expenditure.The County Government also takes into account the fiscal risks arising

from liquidity risk arising from failure to actualize local revenue targets and potential changes to

national transfers and allocations.

Continuing with Prudent fiscal policy

41. The County will continue to pursue prudent fiscal policy to assure economic stability. The

County Government’s fiscal policy objectives will provide an avenue to support economic

activity within a context of sustainable public financing.The County Government has oriented

expenditure towards priority programmes in Health, Agriculture, Infrastructure, Environment and

Youth sectors under the MTEF.

Minus Zer o draft

13

Observing Fiscal Responsibility Principles

42. The County Government recognizes that the fiscal stance it takes today will have implications

into the future. As a County Government we shall ensure adherence to the ratio of development to

recurrent of at least 30:70 over the medium term, as set out in the law. The PFM regulations cap

the wage levels at 35% of the expenditure .Expenditure management on items such as office

goods and their pricing that should as much as possible reflect actual market prices. Timelines on

paying goods will be minimized to enable county government get competitive prices in the

market. County borrowing will also be guided by the said PFM regulations and the County

Assembly resolutions.

Fiscal Strategy Paper’s obligation to observe Fiscal Responsibility Principles

43. In line with Public Finance Management (PFM) Act, 2012, and in keeping with the prudence

and transparent management of public resources, the Government has adhered to the fiscal

responsibility principles as set out in the statutes as follows:

a) Balanced Budgets are mandatory: The County Government’s expenditure have not

exceeded its total revenue.

b) Over the medium term, a minimum of 30% of the County Budget shall be allocated to

development expenditure. The County Government’s development budget allocation over

the medium term is above 30 percent, the minimum set out in law. In FY 2015/16 the

County Government allocated 40% to development. Similarly, delays in disbursement by

National government snow balled to delays in procurement by County departments, hence

low uptake of development funds.

c) Limit county wage bill to thirty five percent of the government’s total revenue: The County

expenditure on wages and benefits for its public officers in 2015/16 was 27 % which did

not exceed 35% of the County Government’s total as prescribed in the regulations.

d) Over the medium term, the County Government’s borrowings shall be used only for the

purpose of financing development expenditure and not for recurrent expenditure. It is a

prudent fiscal policy for a government to procure external financing only for development

projects. Although the County Government envisages maintaining a balanced budget, it

will seek to adhere to borrowing guidelines as will be set out in the PFM regulations , if

need arises.

Minus Zer o draft

14

e) Public debt and obligations shall be maintained at a sustainable level as approved by

National Assembly (NA) and County Assembly (CA). The County Government borrowing

level is set in the Medium Term Debt Strategy approved by the County Assembly. The

sustainability of debt is guided by PFM Act section 107 (2) (e) and section 107 (4). As per

section 107 (2) (e) the county debt shall be maintained at sustainable level as approved by

county assembly. Section 107 (4) further states that every county government shall ensure

that its level of debt at any particular time does not exceed a percentage of its annual

revenue specified in respect of each financial year by resolution of the county assembly.

Over the medium term the Samburu County Government will continue to maintain a

balanced budget where total revenue equal total expenditure. Nevertheless, if need arises,

the County will adhere to laid out laws by the County Assembly, using guidelines passed

by the Parliament.

f) Fiscal risks shall be managed prudently. The County Government also takes into account

the fiscal risks arising from contingent liabilities, liquidity risk arising from failure to

actualize local revenue targets. The County government continues to put measures in place

to enhance revenue collection, majorly through widening of revenue base.

g) Predictable taxes: A reasonable degree of predictability to the level of tax rates and tax

bases is maintained and there are no major changes in our finance acts over the years. The

same stability is expected in the future.

Fiscal structural reforms

44. The County Government will continue pursuing its policy objectives within the financial

context established by fiscal responsibility principles. The progress made in the context of

strategic priorities will continue to be regularly reviewed to establish the parameters for the

budget, with a continued focus on the level of expenditure on County development. The 2016/17

budget will operate under tight fiscal conditions, with any new policies needing to be offset by

savings in other areas. The fiscal policy will be geared towards:

1) Enhancing revenue administration and efficiency in collection, by formulating revenue

administration regulations and reviewing tax legislations in order to simplify and

modernize them. This is expected to increase revenue collection in the medium term.

Minus Zer o draft

15

2) Reforming the budget process in the County to guarantee fundamental, long term objective

of efficiency and effectiveness in public spending. In this regard, the County Government

will continue to entrench Programme/Performance Based Budgeting (PBB) in its budget

process. The desired goal is to have a PBB system which is fully operational by the

financial year 2016/2017.

3) The development of performance management framework as per section 47 of County

Government act 2012 to enhance accountability while ensuring that county government

attain it overall objectives.

4) Expenditure efficiency and effective implementation of budget programs through

enforcement of cost benchmarks for all projects and consumables. There will further be

enforcement of a project implementation performance benchmark of at least 90 percent;

expenditure tracking and value for money audits to ensure efficiency and effectiveness in

use of resources in the County Government and engagement on public private partnership

will be strengthened.

45. The revenue front, the County Treasury is expected to institute corrective measures to

reverse the loss of revenue from local sources. Options could include enhanced compliance audit

of outstanding property tax payments, leaking revenue sources, and continued implementation of

collection of other sources of taxes such as liquor licenses, Cess, and advertisement charges.

46. On the expenditure front, the County Government will continue with rationalization of

expenditure to improve efficiency and reduce wastage. Expenditure management will be

strengthened with full adoption of IFMIS and a Human Resource Management system. The

County Government will continue its prudent approach to budgeting through expenditure

rationalization and optimal resource allocation as a measure of realizing quicker socio-economic

growth.

It is therefore imperative to reform and modernize the revenue bases to ensure stability of

revenue, while at the same time continuing to restructure expenditure systems to ensure

efficiency and create fiscal space required to fund the county needs.

Deficit Financing Policy

47.The fiscal stance envisages maintaining a balanced budget. If necessary, borrowing will be

undertaken in a cautious manner and limited to bankable projects in future.

Minus Zer o draft

16

Budget Framework

48. The 2016/17 budget framework is set against the background of Annual Development Plan

(ADP) and the MTEF set out above. The BPS projects improved performance across all sectors

of the economy.

Revenue projections;

49. The allocations from the National Government to the County Government are projected to be

on the increase. Local revenue projections have been revised downwards against the shortfall

realized in collections in the FY 2014/2015. In this light, revenues from local sources are

projected to hit Ksh 356 million in the FY 2015/2016, from an achievement of Ksh 170

million in the FY 2014/2015 .In the FY 2016/2017, local revenues are pegged at Ksh 292

million. The total proposed allocation for FY 2016/17 in the draft BPS to the county government

amounts to Ksh 3,980,490,262 made up of equitable share and conditional allocations. As such,

total revenues including Local revenue, equitable share allocations are expected to be Ksh

4,291,592,582.

Expenditure Forecasts

50. In 2016/17, overall expenditures are projected to increase by about 5% up from the FY

2015/16 budget owing to inflation and additional allocation funding.

Recurrent expenditures are expected to be 60.4% of total expenditure in the FY 2016/17, on

account of growth in nominal total expenditure. The 2016/17 Budget will operate under tight

fiscal conditions, with any new policies needed will be offset by savings in other areas.

The wage bill is expected to stabilize at 32 % of total expenditure in the FY2016/17.

Transfers to County assembly will be based of ceiling set by the PFMA regulations.

Expenditure ceilings on goods and services for departments are based on funding

allocation in the FY 2015/16 budget as the starting point. The ceilings are then reduced

to take into account one-off expenditures in FY 2015/16 and then an adjustment factor

is applied to take into account the general increase in prices.

The ceiling for development expenditures excluding donor funded projects will

decrease in the FY 2016/17 from Ksh 1.7 billion in 2015/16 to ksh 1.69 billion. Most

of the outlays are expected to support critical infrastructure in roads, water, education

and health.

An emergency provision of Ksh 60 million will be provided in the budget for 2016/17.

Minus Zer o draft

17

Recurrent expenditure forecasts

51. The 2016/17 budget projects total recurrent expenditure will be Ksh 2.59 billion compared to

last year Ksh 2.56 billion.

Development

52. The level of development cost in 2016/17 is anticipated to be ksh 1.69 billion compared to

ksh 1.7 million in 2015/16. The funding will be done from internal sources as opposed to debt

financing. In terms of percentage of the total expenditure its 39.6 % which is in line with fiscal

responsibility principle. The level of expenditure is low compared to current financial year due to

low level of local revenue generation.

Summary

53. Fiscal policy outlined in this Fiscal strategy paper aims at improving revenue efforts as well

as containing total expenditures. This will be achieved through administrative and legislative

reforms aimed at enhancing resource mobilization, improving efficiency in county government

expenditure and reducing wastage. The fiscal space created will avail resources to scale up

investments in human capital, including health and education, and physical infrastructure, while

at the same time providing sufficient resources to sustain the progress made.

Minus Zer o draft

18

CHAPTER FOUR: MEDIUM TERM EXPENDITURE FRAMEWORK

Resource Envelope

54. The resource envelope available for allocation among the county’s departments is based on

the County Government’s final resource projections contained in the medium term fiscal

framework as outlined in the Fiscal Policy and Budget Framework section of this paper. The

analysis thus paints a clear picture of the county’s resource base and sets the scene for the

spending plan and the inevitable necessity for expenditure ceilings.

Spending Priorities

55. The County Key focus in the FY 2016/17 Medium Term Budget will be guided by the

County’s medium term, strategic plan and the Annual sectoral reports as prepared by the Sector

Working Groups (SWG). Respective sector reports have been prepared with keen inputs from the

Public participation.

As the County deepens the adoption of PBB the focus will be on revision of the Departmental

programmes to align them with core County mandate. This is expected to eliminate non-core

expenditures and eliminate overlap and or duplication across sectors.

In adherence with the Provisions of Constitution and the PFM Act on enhancing openness and

accountability in public finances, the County Government will facilitate full participation of the

people in the budget making process as well as observe rationality in allocation of scarce

resource.

56. Going forward the FY 2016/17 Medium Term Budget will be guided by the baseline

estimates reflect the current sector spending levels in the sector programmes. The recurrent

expenditure includes compensation to employees, use of goods and services and maintenance.

This represents 60.4% of total expenditure.

Revenues from local sources are expected to finance 6.7 % of the County Government’s

expenditures. The balance of the recurrent expenditures and the Development expenditure will be

financed by transfers from National Government and donors.

In the financial year 2016/2017, the Agriculture, Livestock and Fisheries Sector are poised to get

an allocation of 7.2% of the total budget. The sector is critical to the economy in ensuring food

security as well as value addition, hence enhancing job and wealth creation. In the sector 3.6% of

the allocation will go towards the recurrent expenditure. This will be majorly utilized in rendering

extension services to farmers and promotion of value addition to livestock farming.

Minus Zer o draft

19

57. The Roads public works and water Sector has been allocated a ceiling of 14% of total budget

ceiling. Although there is a decline in the ceiling, the sector is the major beneficiary of the Ward

projects. The priorities in this envelop are those derived through public participation forums and

include road construction, improvement and maintenance and street lighting. In addition, the

sector will also benefit from the proposed allocation from the Fuel Levy Fund of Ksh 58,898,587

.58. The Trade sector with a ceiling of 6.5 % of the budget will undertake policies with a bias on

building and promotion of market infrastructure and promotion of local tourism. The sector will

work towards achievement of creating conducive environment for the development and growth of

trade and industrialization, cooperatives and tourism in the county.

59 In the Education, Sector, the 10 % allocation of the total budget is a decline from the 10.7%

allocated in the FY 2015/2016. The decline is largely explained by the fact that the Education

subsector benefited hugely in development expenditure, in constructing the ECD classrooms in

the FY 2013/2014 and 2014/2015. Going forward, the education sector will focus on equipping

and optimal running of the ECD centre’s. However the sector continues to experience teacher

shortages, which is further compounded by the impasse between the Teacher Service

Commission and the County governments on who is mandated to undertake ECD teachers’

recruitment.

60. The Environment and Natural Resources, Sector, with an allocation of 3.5 % of the total

budget will gear their resources towards enhanced environmental conservation and solid waste

management as well as pollution control.

61 The Health Sector will receive the biggest allocation of the county budget with a ceiling of

18.2%. Of this ceiling 13.2% will go towards recurrent expenditure which covers compensation

to employees as well as provision of drugs to the health facilities. This will improve service

delivery to the public and offer healthier lives. Part of the sector funding will come from

allocations for Free Maternal Health Care on reimbursement basis, amounting to Ksh 14,190,000

62. The County Assembly, with a ceiling of 7% for recurrent and 2.3% for construction of county

assembly chambers. The county assembly is tasked with providing the relevant legislations

framework to allow the County Executive effectively implement its mandate, in addition to

playing the oversight role in the County.

Minus Zer o draft

20

The County Executive with a ceiling of 9.6% and is focusing on employee training and

development, coordinate County legal service & other crosscutting County functions as well as

spearhead the roll out the performance management programme for the County Government.

The ceiling of the County Treasury is pegged at 7.2 % in recurrent expenditure and 5.6% in

development expenditure of the total budget. The department ensures that the county practices

sound financial management.

Finalization of spending plans

63. In finalizing the county spending plan, it is imperative that estimates are scrutinized in detail

to ensure resources are being directed toward priority programmes for each department. As

budgets are finalized and the county’s resource envelope concretized, this process of scrutiny will

give the County Government opportunities to direct any savings or additional resources that may

arise in future towards its priority programmes. The program implementers should ensure the

accuracy of the plans being undertaken.

Details of Sector Priorities

64. The broad key priority areas which are the focus of the Second MTP include:

i) Employment creation;

ii) Development of human resource through expansion and improvement in quality education,

health and other social services;

iii) Reducing the dependence of the economy on rain fed agriculture through expansion of

irrigation;

iv) Higher investment in alternative and modernization of infrastructure.

The sector working groups were launched in December 2015. One of the mandates of the groups

was to prioritise the programs in line with the CIDP and strategic plan. Their main objectives are

summarised below;

Minus Zer o draft

21

65. Department of Health Services

Considering that health is a devolved function the County is in charge all the health workers.

The County has created incentives to attract, encourage and retain health workers in the rural

areas. The Investment on equipment for public health facilities is not enough. The public is

normally concerned with the situation in hospitals where some cases can’t be attended to because

of shortage of equipments and some of the cases could be of emergency in nature. Some of the

major achievements for the department include;

a) Employment of additional technical staff.

b) Taken over constituency development fund abandoned health facilities.

c) Developed a health policy.

d) Procured 13 ambulances.

e) Procured two mobile clinics trucks.

f) Constructed and equipped various health facilities.

g) Constructed staff houses in various health centres.

Some of the challenges faced by the department include the following;

a) The emphasis has been on curative rather than preventive measures.

b) Shortage of staff in some new facilities.

c) The funding level for the department is not sufficient.

The department has prioritized the following activities in 2016-17 f/y;

i. Establishment of emergency preparedness and response system.

ii. Support for outreaches services (30 facilities) hard to reach areas.

iii. Construction and equipping of Health facilities.

iv. Construction of staff houses.

v. Construction of Laboratories.

vi. Construction of Wards.

vii. Master Plan for County Referral Hospital.

viii. Drug distribution and redistribution information system be put in place.

ix. Construction of modern outpatient block and expansion of mortuary at referral hospital.

x. Provide all specialized services in the County Referral e.g. renal unit.

xi. Create awareness and establish more community units.

xii. Fencing of Health facilities.

Minus Zer o draft

22

xiii. Establishment blood donor centre.

xiv. Procure three utility vehicles.

xv. Employment of more health workers.

xvi. Drilling of boreholes in Health facilities.

xvii. Provision of water storage facilities in Health facilities.

xviii. Procurement of Health commodities, laboratory and public Health chemicals.

66. Department of Public Works, Roads, Water and Sanitation

The issues raised included high expectations by residents which are not matched by the available

resources. The vastness of the county is also a major constraint in project supervision. The

capacity for the department which is supposed to oversee the implementation of the projects is

overstretched hence some delays in implementation. The department have partnered with Kenya

roads board to provide some funding and also to avoid duplication of projects. The department

has been building its capacity overtime to cope up with supervision of projects across the county.

Some of the major achievements for the department include;

a) Construction of 10 Kilometer Maralal probase tarmac road.

b) Opening up of the entire County through access feeder roads.

c) Provision of street lighting in Maralal town and plans are underway for other areas.

d) Construction of Rig rig bridge.

e) Lobbying the national Government to tarmac Rumuruti-Baragoi road.

f) Sinking of 26 boreholes.

g) Disilting of Nomotio dam.

h) Construction of Silata Dam.

i) Water trucking to vulnerable villages, Schools and hospitals.

j) Provision of Fuel subsidy and fast moving spares to community boreholes.

k) Formation and Financing of Samburu Water and Sanitation Company.

l) Rehabilitation of water supplies for example Wamba, Archers post, Suguta, Kisima,

Baragoi and Maralal.

m) Maintenance of various boreholes.

n) Supervision and construction of County Office Block.

o) Supervision of all public buildings.

Minus Zer o draft

23


a) Vastness of the county hence adequate coverage for infrastructural services is a challenge.

b) The community demands are higher than the available financial resources.


i. Complete the remaining untarmacked potion.

ii. Procure more construction equipments i.e. tippers, excavators etc.

iii. Improve major rural access roads.

iv. Open up new roads.

v. Improve road network in urban centers.

vi. Continue constructing culverts and bridges.,

vii. Continue with street lighting in Maralal and other major centers.

viii. Construct Maralal Bus Park and mark other designated parking bays.

ix. Improvement of drainage systems in major urban centers.

x. Conduct capacity building for the water users committees.

xi. Continue to subsidize the Samburu Water and Sewerage Company.

xii. Continue with construction and supervision of office block.

xiii. Purchase of fire engines/trucks.

xiv. Continue with sinking of more boreholes.

xv. Augmentation and rehabilitation of existing water supplies.

xvi. Construction and rehabilitation of Pans/dams.

xvii. Continue with water trucking to vulnerable schools, Health facilities and communities.

67. Department of Education Youth Affairs and Sports

Concerns were raised on: The number of ECD centre’s and the number of teachers was raised.

The standard in our ECD centres was also raised plus the many youths with no skills. To address

these issues, the department will increase the number of ECD centre’s, employ more teachers and

equip the youth polytechnic. The department will also partner with ministry of education to

ensure that standards are maintained.


i. Construction of 45 classrooms.

ii. School feeding programs in ECD centres.

Minus Zer o draft

24

iii. Construction of sanitary blocks in ECD centers.

iv. Recruitment of teachers and other staffs.

v. Provision of curriculum materials.

vi. Provision of water tanks to ECD centers.

vii. Provision of cooking appliances.

viii. Award of bursaries and scholarships to needy students.

ix. Recruitment of instructors.

x. Support to Maralal Youth Polytechnic.

xi. Participated in the desert wheel chair race in Isiolo for physically challenged.

xii. Participated in the Central Rift Branch County mini-league.

xiii. Participated in the Kenya Inter-County competitions in Kwale.

xiv. Participated in the Maralal International Camel Derby.

xv. In partnership with the catholic diocese of Maralal Sponsored the consolata cup 2015.


1. In some areas there is lack of accessibility to ECDE centers especially while transporting

materials while building classrooms and sanitary blocks.

2. Insecurity in some areas which has rendered some ECDE centers closed.

3. Inadequate monitoring and evaluation of the department programs due to lack of transport,

4. Shortage of training workshops.

5. Lack of adequate infrastructure i.e. kitchen and staff houses.

6. Attitude of the local people towards manual work.

7. The department is understaffed.

8. Lack of proper co-ordination of programs in schools and collages with the department of

sports.

9. Late disbursement of funds thus affecting the department’s activities.


i. Construction of more ECD centre’s.

ii. Provision of infrastructure to the existing ECD centres.

iii. Continue with school feeding programme and transportation of rations.

iv. Continue with bursary provision.

v. Continue with ECD learning materials.

vi. Procure school uniforms to ECD children.

Minus Zer o draft

25

vii. Recruitment of more staff for the department.

viii. Enhance the quality assurance in ECD centres.

ix. Capacity building for ECD teachers.

x. Promotion of staff and motivation.

xi. Promote vocational training.

xii. Promote sport activities.

xiii. Organize youth talent shows.

xiv. Establish special school in every sub county.

68. Department of Agriculture, Livestock & Fisheries

Concerns were raised on value addition in livestock and also over reliance in rain fed agriculture.

There were issues relating to the quality the livestock in the county. To address the scenario

purchase of more breed improved breeds will be done with sole aim of improving the county

breeds. On value additions the county is partnering with investors with a view of establishing an

abattoir and tannery. The provision of farming implements and also increasing the area under

irrigation will ensure that we attain food security.


a) Irrigation Project Development-Three schemes ongoing

-At Kurungu -100 acres

-At Arsm -50 acres

-At Lulu -50 acres

b) Maize Value Chain Supported

-29 tractors procured and being used by the farmers,

-Area under cultivation has increased from 8,600 to over 20,000 acres,

-Maize seeds and subsidized fertilizer provided.

c) Traditional high value crops introduced

-Cowpeas, green grams, beans drought tolerant in nature with potential of over 5000 acres

d) High impact/trade sensitive diseases controlled, through Regular vaccinations.

e) Livestock Breed Upgrading/Improvement Programme-Completed.

f) Livestock Infrastructure Development, I e Sale yards.

g) Refurbishment of Nomotio Livestock Improvement Centre.

Minus Zer o draft

26

h) Promote and Facilitate value addition for livestock products.eg beef and Honey.


a) Frequent droughts.

b) Poor road networks.

c) Lack of adequate funding for the department activities.

d) Lack of trained Technical personnel at the Ward and Village levels.

e) Shortage of livestock infrastructure such as Cattle Crushes, Dips, and slaughter houses.

f) Cost of livestock inputs high.

g) Inadequate feeds and water for livestock.

h) Insecurity-leading to human & livestock migrations.

i) Human-wildlife conflicts.


i. Breed improvement – support accessibility to breeding resources.

ii. Enhance drought resilience – Camel improvement program.

iii. Pasture Production (rangeland reseeding).

iv. Livestock Market improvement (Lolkuniyani, Archers, Baragoi, latakweny).

v. Market analysis and Value addition ventures through partnerships.

vi. Equipping of vet lab in Maralal.

vii. Disease surveillance missions, (Revival of Dips and Crutches).

viii. Programmed/regular vaccinations.

ix. Establish a holding ground/Disease free zone in the county.

x. Capacity building of farmer groups – advocacy for high value Livestock and crops.

xi. Ensure access to certified seed and fertilizer.

xii. Recruit more technical officers in the department.

xiii. Promote irrigation farming.

xiv. Market analysis and access for Livestock and Crop products.

Minus Zer o draft

27

69. Department of Co-operatives, Trade Investment, Tourism and Enterprise Development.

The concerns raised were the future of tourism as far as conservancies are concerned, incentives

to attract more investors and the promotion of businesses in the county. To address these

challenges some fund will be allocated to conservancies so that in the long run they can be self

sustaining. The department will host an investor conference in the near future to show case the

county potential. The department continues to empower the society through a revolving fund.


a) Construction of SNR headquarters at Archer’s gate.

b) Construction of Cafeteria and Staff units at Malaso Campsite.

c) Profiling (documentation of Tourist site/ Products within the county.

d) Construction of Fortified camps 2nd Phase.

e) Review of Leases.

f) Purchase of Uniforms for Game rangers.

g) Renovation of SNR staff quarter.

h) Disbursement of grants to support existing conservancies.

i) Offer capacity building to new conservancies.

j) Construction of staff quarters at Maralal Sanctuary.

k) Monitoring and evaluation of conservancies.

l) Formulate tourism policy for the county and implement.

m) Undertake tourism promotion and marketing locally and internationally.

n) Formulate Tourism Marketing Strategy.

o) Develop and operationalize tourism website for marketing and information flow.

p) Continuous Support of new established conservancies.

q) Manage wildlife and conservation of the park at Samburu National Reserve and

Maralal Safari Lodge.

r) Capacity building to various cooperative societies.

s) Audit done to various SACCOs.

t) Revival of various cooperatives.

u) Fostering good governance of coop societies.

v) Purchase and instalation of Poshomills in all wards.

Minus Zer o draft

28

w) Development and implementation of county cooperatives policy.

x) Refurbishment of Maralal, Wamba and Archer’s post Markets.

- Maralal market has 60 stalls and all allocated to successful applicants.

- Wamba market has 71stalls and all allocated to successful applicants.

- Archers post market has 32 stalls and all allocated.

y) Purchase of weights and measures equipment.

z) Development of Trade and licensing policy.

aa) Samburu County youth and women Enterprise dev’t Fund.

- Capacity Building for 258 groups of approximately 15 members each, hence 3870

entrepreneurs trained.

- Samburu County Youth and Women Enterprise Development Fund Lending

Policy Developed.

- Loans disbursed worth ksh 44 Million from the fund.


a) Security threats hence slump in tourism industry.

b) High demand relative to the available resources.

c) Human wildlife conflict i.e. grazing in the park.

d) Degradation of our range land.

e) Low capacity in the Management of conservancies.

f) Poaching in the county.

g) Inadequate knowledge on credit access.

h) Poor bookkeeping by Cooperative Societies – none has internal auditors.

i) Low capacity in the management and operation of societies.

j) Inaccessibility of some areas in the county.


i. Development of tourism and wildlife conservation policies.

ii. Development of Tourism Marketing plan for Samburu County.

iii. Development of Conservancy Management plans for the Six Conservation areas.

iv. Development of Community Eco-lodges.

Minus Zer o draft

29

v. Development of campsites in the new establishment.

vi. Support of Programs and activities in Samburu National Reserve.

vii. Establishment conference facility at Maralal Safari lodge.

viii. Support and empowerment of the newly established conservancies.

ix. Construction of Animal Orphanage at Maralal Sanctuary and Fencing of Maralal sanctuary

and support of reteti Elephant orphanage in Ngilai.

x. Marketing of Samburu County as the best Tourism destination and for other trade and

investment opportunities.

xi. Continued development of fortified camps in the county.

xii. Provide security in SNR and community conservancies for both tourist and wildlife.

xiii. Management of wildlife in SNR and Maralal Sanctuary.

xiv. Development of Tourism Infrastructure and other facilities.

xv. Supporting communities through benefit sharing.

xvi. Review SNR boundary and livestock corridor.

xvii. Support Conservation awareness programmes.

xviii. Training and Development.

xix. Procurement of Loans management software.

xx. Construction and development of market/ shades in various urban centers.

xxi. Funding for Samburu County Youth and Women enterprise development fund.

xxii. Funding for Joint loans board scheme.

xxiii. Ensure compliance to trade and licencing acts .

xxiv. Decentralization of licencing to subcounty level.

xxv. Continued support of enterprise development initiative.

xxvi. Continued support of co-operative societies.

xxvii. Registration of news co-operatives .

xxviii. Revival of dormant co-operatives.

xxix. Auditing of co-operatives.

Minus Zer o draft

30

70. Department of Lands,Housing and Urban Planning

The conserns raised related to the land ownership and related documents. To address this

problem the department intend to partner with ministry of Lands and the national land

commission . It also intend carry out survey works in all the major urban centre.The department

is also working to strengthen community land management and improve land tenure system.


a) Preparation of Maralal Urban Integrated Development Plan.

b) Marked and beaconed boundaries for various group ranches.

c) Various Public utility plots surveyed.

d) Resolved various Land disputes.

e) Promoted alternate building technologies.


a) Shortage of technical staff.

b) Lack of institutional memory due to unavailability of documentary evidence.

c) Financial Resources are not sufficient relative to the workload.


i. Development of local physical development plans.

ii. Spatial Plan development.

iii. Boundaries identification and disputes resolutions.

iv. Group Ranches and public utility plots Beaconing.

v. Implementation of Maralal Integrated Urban Development Plan.

vi. Title Deeds for group ranches and public utilities.

vii. Establishment of a digital data bank for land records.

viii. Urban development beautification and landscaping.

ix. Training and workshops on Land issues to Group Ranch members.

x. Planning of emerging centers.

Minus Zer o draft

31

71. Department of Environment and Natural Resources

The concerns raised were the department’s intervention in range land management and resource

mapping in the county. The department has established tree nurseries in all wards to increase the

forest covers. In addition the department has partnered with Tourism department to ensure that it

extends the range land management in conservancies. The department intends to carry out

resource mapping in the near future.


a) Training of community conservancies’ management and grazing committees on rangeland

management and planned grazing.

b) Rehabilitation of degraded rangelands on pilot basis through reseeding.

c) Mapping out and control of invasive species.

d) Intensive awareness creation of the public on sustainable management of natural

resources.

e) Construction of soil conservation structures to control gulley erosion.

f) Establishment of county owned tree bank to support tree planting.

g) Purchase of garbage trucks for refuse collection.

h) Provision of dust bin in major towns and livestock markets.

i) Construction of dumpsite at Wamba.


a) Illegal charcoal burning in the forests.

b) The state of degradation in the county.

c) Shortage of technical staff in the department.


i. Procure one garbage collection and refuse truck.

ii. Construction of three dumpsites to ease solid waste management.

iii. Support and undertake environmental sanitation in all major towns and livestock

markets.

Minus Zer o draft

32

iv. Planting of one million trees Seedlings County wide through school greening

programme.

v. Protection of Nomotio dam and Mathew Ranges water catchment areas.

vi. Carry out survey on potential areas or sites to promote green energy.

vii. Hold community sensitization workshops and exposure visits on green energy

projects.

viii. Raise awareness on impacts of deforestation on our environment.

ix. Sensitize communities on minerals prospecting and mining activities in the county.

x. Support rehabilitation of degraded pasture lands through control of invasive species

and reseeding.

xi. Establish, train and support Natural Resources Management institutions (such as

Grazing Management committees, Community Forest Associations, Sand harvesting

groups, Water Resources Management).

xii. Support and promote construction of soil conservation structures (gabions, terraces,

water retention structures).

xiii. Undertake County-wide natural resources inventory and mapping.

xiv. Support development, formulation and sensitization of stakeholders on natural

resource management policies.

72. Department of Gender, Culture and Social Services

The concerns raised were the department interventions in women empowerment, sporting

facilities and disability interventions. The department intends to conduct trainings for women and

also come up with modalities for conservation of our good natural heritage. The department will

also construct stadia and social halls to promote sports in the county.


a) Construction of Maralal Stadium, Wamba Stadium and Baragoi Stadium.

b) Construction of playgrounds ;Porro Playground ,Wamba Playground ,Logorate

Playground ,Kisima Playground ,Lodung’okwe Playground ,Archers Post Playground

,Bendera Playground ,Lesrikan Playground ,Lkuroto Playground ,Ngilai Playground and

Opiroi Playground.

c) Community sensitization on effects of alcohol, drug and substance abuse.

Minus Zer o draft

33

d) Women empowerment Trainings.

e) Provision of assistive devices to People living with disabilities.

f) Distribution of sanitary towels to school going girls.

g) Women exposure tour to Ngurunit.

h) Training of women on conflict resolution.

i) Cultural Manyattas in; Baragoi, Ltungai, Malaso, Latakweny and South Horr.


a) Insufficient Funding.

b) Delay in release of Funds.

c) Community Resistance/ land issues e.g. Wamba and Tuum.


i. Construction of six playgrounds – 2 in each sub county.

ii. Construction of three Social Halls, one in each sub county.

iii. Construction of a Rehabilitation Centre.

iv. Construction of three market shades (Ndonyo Wasin, Kalama and Marti) .

v. Construction of Four stadia i.e. Archers post, Wamba, Baragoi and Maralal.

vi. Construction and equipping of a heritage centre with ethnographic materials and

collections.

vii. County Workshop for manufacture and repair of people living with disabilities’ Assistive

devices.

viii. Construction and equipping of a County Library.

ix. Construction and beautification of Maralal Green park.

x. Protection of historical and cultural sites plus monuments.

xi. Capacity building of women groups for economic empowerment.

xii. Disability mainstreaming.

xiii. Control of pornography.

Minus Zer o draft

34

xiv. Drug and substance use and abuse.

xv. Samburu cultural week and Maralal camel Derby.

xvi. Participating in some important national events e.g. national celebrations.

73. County Assembly

The issues raised was on the development by County Assembly on Chambers. In response, it was

highlighted that this is one off expenditure which is necessary for time being.

74. Finance and Economic Planning

The issue raised was on disbursement of funds and delay in procurement. It was explained that

for any disbursement to be made it depends on the exchequer releases and our local revenue

collection. It was noted that exchequer release is external which forms the bulk of our revenue

and the treasury can’t control it. On the issue of procurement the treasury will liaise with IFMIS

office with a view of addressing the matter of challenges cited.

75. County Executive

The issue raised was the feedback mechanism by the county to the public. The department plans

to ensure that all information needs are disseminated to the public on time.

76. From the presentations of the various sector working groups and the deliberations there from

the budget for 2016-17 will be guided by the following;

Theme: Achieving equitable social and economic development in Samburu County.

Priorities areas of resources allocation.

1) Creating conducive business environment (governance , trade).

2) Investing in Agriculture transformation and food security.(Agriculture).

3) Investing in quality and accessible health care and education.

4) Scaling up investment in infrastructure development (transport, water and ICT).

5) Maximizing the use of county natural resources (land, environment and culture).

Minus Zer o draft

35

CHAPTER FIVE – CONCLUSION

77. The current economic conditions call for caution in fiscal dispensation. Macroeconomic

stability will be critical to supporting growth. This should be complemented with deeper

structural reforms to strengthen the county’s resilience and raise growth to a higher trajectory

while ensuring that the benefits of growth are shared by all.

The budget ceilings have been set taking into account county priorities, but with binding

constraints on the resource envelope .The departments will be forced to make tough decisions in

allocating available resources across their programmes. The Treasury will work with the

departments to ensure resources are availed when required.

78. Fiscal policy as shown here will support growth within a sustainable path of public spending

by allowing the recurrent expenditure to decline gradually. Therefore, moderation in county

spending will help increase the pool of funds available for development initiatives in the county.

Proper utilization of funds of county resources while improving on efficiency will also help to

create room for critical interventions in the social sector.

Minus Zer o draft

36

Annexes

Table 1: County Revenue Sources 2015-16

MONTH EXCHEQUER LOCALREVENUE

DONOR ,USER FEE&MATERNITY

TOTAL

JULY- 15,650,806 265,000 15,915,806

AUGUST268,487,287 16,955,758 285,443,045

SEPTEMBER402,785,519 23,790,712 5,044,157 431,620,388

OCTOBER344,594,733 14,426,946 359,021,679

NOVEMBER 297,436,7127,057,597 6,093,840 310,588,149

DECEMBER307,168,124 7,179,273 6,660,000 321,007,397

TOTAL1,620,472,375 85,061,092 18,062,997 1,723,596,464

Source: County Treasury

Table 2: Revenue Analysis by departments (31-12-2015)

Department Budget Estimates(Ksh)

LOCAL REVENUE(Ksh)

% of Collection

FINANCE AND ECONOMIC PLANNING2,000,000 -

HEALTH SERVICES9,000,000 3,385,201 38

AGRICULTURE, LIVESTOCK ANDFISHERIES 15,285,000 6,020,737 39

PUBLIC WORKS, COUNTY ROADS ANDWATER 25,563,000 175,000 1

TRADE, TOURISM AND CO-OPERATIVESDEVELOPMENT 261,481,000 70,362,085 27

PHYSICAL PLANNING, HOUSING ANDURBAN DEVELOPMENT 25,500,000 3,530,270 14

ENVIRONMENT AND NATURAL RESOURCES8,306,640 1,587,800 19

GENDER, CULTURE AND SOCIALSERVICES 9,450,000 - -TOTAL

356,585,640 85,061,093 24Source: County Treasury

Minus Zer o draft

37

Table 3 :Comparison of Budget Estimates and Actual Expenditure.( 31-12-2015)

DEPARTMENT BudgetEstimates(Ksh)

TotalExpenditure(Ksh)

Balance (Ksh.) % of BudgetAbsorption

County Assembly 481,457,737 212,077,782 269,379,955 44

County Executive 361,853,222 170,492,848 191,360,374 47

Finance 349,933,982 166,211,341 183,722,641 47

Agriculture 357,096,848 134,849,820 222,247,028 38

Environment 116,045,578 49,425,244 66,620,334 43

Education 463,876,849 150,029,727 313,847,122 32

Health Services 760,519,372 361,697,883 398,821,489 48

Lands 220,124,919 112,594,641 107,530,278 51

Roads & Public Works 845,018,069 542,459,161 302,558,908 64

Trade 272,821,394 110,852,261 161,969,133 41

Culture 111,955,340 24,031,972 87,923,368 21

TOTAL 4,340,703,310 2,034,722,680 2,305,980,630 47


Table 4:Economic Classification of Expenditure (31-12-2015)

Description Budget Estimates2015/2016

Total Expenditure2015/2016

% of BudgetAbsorption

Personnel Emoluments 1,140,203,403 570,996,68650

Operational & Maintenance 1,452,709,137 550,476,75538

Development Expenditure 1,747,790,770 913,249,23952

TOTAL 4,340,703,310 2,034,722,68047


Minus Zer o draft

38

Table 5: Revenue Estimates for the period

SAMBURU COUNTY GOVERNMENT REVENUE ESTIMATES

ITEMS APPROVED2015/2016

ESTIMATES2016/2017

PROJECTEDESTIMATES2017/2018

PROJECTEDESTIMATES2018/2019

COUNTY GENERATED REVENUE1130104 Land Rates 25,500,000 26,775,000 27,846,000 28,113,7501130103 Contribution in Lieu of Rates 8,125,1401420328 Single Business Permits 18,470,000 19,393,500 20,169,240 20,363,1751110104 Total Cess Receipts 32,285,000 33,899,250 35,255,220 35,594,2131420327 Game Parks/Nature Reserves Fees 210,000,000 150,000,000 154,520,000 155,525,0001420405 Markets and Slaughter House Fees 5,235,000 5,496,750 5,716,620 5,771,5881420404 Vehicle Parking Receipts/Transport 3,063,000 3,216,150 3,344,796 3,376,9581110104 Wheat Cess 726,000 762,300 792,792 800,4151140509 Prospecting Licenses 181,500 190,575 198,198 200,1041420601 Tender Application Fees 2,000,0001140501 Liquor License 9,450,000 8,531,397 8,719,400 9,418,625

Various Health Departments Fees 9,000,000 9,000,000 9,128,000 9,222,500Agricultural Machinery Services 10,050,000 10,552,500 10,974,600 11,080,125Approval of plans and supervision 22,500,000 23,625,000 24,570,000 24,806,250SUB-TOTAL LOCAL SOURCES 356,585,640 291,442,422 301,234,866 304,272,703SUMMARYRevenue from Local Sources 356,585,640 291,442,422 301,234,866 304,272,703Revenue transfer from national government 3,528,125,964 3,902,181,478 4,107,507,351 4,254,141,973Road Maintenance 45,125,793 58,898,587 58,898,587 58,898,587User fees forgone in hospitals 5,220,197 5,220,197 5,220,197 5,220,197Free maternity grant 14,183,400 14,190,000 14,190,000 14,190,000Conditional health allocation(loans and grants) 91,802,418 0 0 0World Bank loans and grants for healthfacilities

8,669,898 8,669,898 8,669,898 8,669,898

DANIDA (Health support funds) 10,990,000 10,990,000 10,990,000 10,990,000GRAND TOTAL 4,060,703,310 4,291,592,582 4,506,710,899 4,656,383,358

Minus Zer o draft

39

Table 6:MTEF Sector Ceilings 2016/2017 – 2018/2019 with Indicative Projections

Total Expenditure, Kshs Million in FY Projections %SHARE OF TOTAL EXPENDITURE

Approved 2015/16 CBROP Ceilings2016/17

CFSP Ceilings2016/17

2017/18 2018/19 Approved2015/16

CBROPCeilings2016/17

CFSPCeilings2016/17

2017/18 2018/19

County Assembly SUB-TOTAL 531,457,737 505,000,000 400,411,481 508,850,000 534,205,000 13.1 11.8 9.3 11.3 11.5

Rec. Gross 431,457,737 435,000,000 300,411,481 456,750,000 478,500,000 10.6 10.2 7.0 10.1 10.3

Dev. Gross 100,000,000 70,000,000 100,000,000 52,100,000 55,705,000 2.5 1.6 2.3 1.2 1.2

County Executive SUB-TOTAL 382,450,000 417,000,000 410,150,000 443,110,000 451,015,500 9.4 9.7 9.6 9.8 9.7

Rec. Gross 359,450,000 380,000,000 385,000,000 415,000,000 421,000,000 8.9 8.9 9.0 9.2 9.0

Dev. Gross 23,000,000 37,000,000 25,150,000 28,110,000 30,015,500 0.6 0.9 0.6 0.6 0.6

County Treasury SUB-TOTAL 390,593,000 324,000,000 551,138,519 463,800,000 471,290,000 9.6 7.6 12.8 10.3 10.1

Rec. Gross 263,593,000 264,000,000 310,800,000 315,000,000 320,400,000 6.5 6.2 7.2 7.0 6.9

Dev. Gross 127,000,000 60,000,000 240,338,519 148,800,000 150,890,000 3.1 1.4 5.6 3.3 3.2

Agriculture,Livestock,Fisheries

SUB-TOTAL 293,800,000 295,000,000 308,250,000 321,750,000 326,625,000 7.2 6.9 7.2 7.1 7.0

Rec. Gross 144,800,000 145,000,000 155,750,000 167,250,000 169,500,000 3.6 3.4 3.6 3.7 3.6

Dev. Gross 149,000,000 150,000,000 152,500,000 154,500,000 157,125,000 3.7 3.5 3.6 3.4 3.4

Environment andNaturalresources

SUB-TOTAL 110,155,240 125,000,000 150,750,000 161,266,800 170,205,000 2.7 2.9 3.5 3.6 3.7

Rec. Gross 47,155,240 55,000,000 60,250,000 68,750,000 73,500,000 1.2 1.3 1.4 1.5 1.6

Dev. Gross 63,000,000 70,000,000 90,500,000 92,516,800 96,705,000 1.6 1.6 2.1 2.1 2.1

ECD, Villagepolytechnics andSports

SUB-TOTAL 423,000,000 427,000,000 430,650,000 456,650,000 471,202,500 10.4 10.0 10.0 10.1 10.1

Rec. Gross 290,000,000 292,000,000 300,400,000 317,600,000 321,200,000 7.1 6.8 7.0 7.0 6.9

Dev. Gross 133,000,000 135,000,000 130,250,000 139,050,000 150,002,500 3.3 3.2 3.0 3.1 3.2

Health SUB-TOTAL 718,185,666 813,000,000 781,517,582 827,650,000 838,760,808 17.7 19.0 18.2 18.4 18.0

Rec. Gross 529,529,950 563,000,000 565,588,972 600,150,000 608,385,808 13.0 13.1 13.2 13.3 13.1

Dev. Gross 188,655,716 250,000,000 215,928,610 227,500,000 230,375,000 4.6 5.8 5.0 5.0 4.9

Physicalplanning,Housing, Urbandevelop

SUB-TOTAL 188,901,134 235,500,000 248,725,000 262,465,000 274,450,750 4.7 5.5 5.8 5.8 5.9

Rec. Gross 88,535,209 95,000,000 98,250,000 110,750,000 112,500,000 2.2 2.2 2.3 2.5 2.4

Dev. Gross 100,365,925 140,500,000 150,475,000 151,715,000 161,950,750 2.5 3.3 3.5 3.4 3.5

Public works,Roads, Water

SUB-TOTAL 650,275,793 706,000,000 600,700,000 622,789,099 661,165,000 16.0 16.5 14.0 13.8 14.2

Rec. Gross 195,417,841 196,000,000 197,200,000 205,800,000 209,600,000 4.8 4.6 4.6 4.6 4.5

Dev. Gross 454,857,952 510,000,000 403,500,000 416,989,099 451,565,000 11.2 11.9 9.4 9.3 9.7

Trade ,Tourism,Cooperatives

SUB-TOTAL 274,536,740 276,000,000 279,200,000 295,080,000 304,084,000 6.8 6.4 6.5 6.5 6.5

Rec. Gross 139,036,740 140,000,000 142,000,000 155,000,000 159,000,000 3.4 3.3 3.3 3.4 3.4

Dev. Gross 135,500,000 136,000,000 137,200,000 140,080,000 145,084,000 3.3 3.2 3.2 3.1 3.1

Culture ,Gender,Social Service

SUB-TOTAL 97,348,000 158,000,000 130,100,000 143,300,000 153,379,800 2.4 3.7 3.0 3.2 3.3

Rec. Gross 77,348,000 78,000,000 77,100,000 88,900,000 95,800,000 1.9 1.8 1.8 2.0 2.1

Dev. Gross 20,000,000 80,000,000 53,000,000 54,400,000 57,579,800 0.5 1.9 1.2 1.2 1.2

TOTAL 4,060,703,310 4,281,500,000 4,291,592,582 4,506,710,899 4,656,383,358 100.0 100. 100. 100. 100.0TOTAL REC.GROSS

2,566,323,717 2,643,000,000 2,592,750,453 2,900,950,000 2,969,385,808

TOTAL DEV.GROSS

1,494,379,593 1,638,500,000 1,698,842,129 1,605,760,899 1,686,997,550

The following in CT -Ward development projects 150M, Disaster- 60M and Debt reduction 50M.

Minus Zer o draft

40

Figure 1: County Revenue Sources 2015-16

Bar Graph


samburu county government - ipf kenya … county/2016-2017... · table 1: county revenue sources...

Documents