COUNTY GOVERNMENT of nakuru

DEPARTMENT OF FINANCE AND ECONOMIC

PLANNING

MEDIUM TERM

COUNTY FISCAL STRATEGY PAPER

Economic excellence

FEBRUARY 2014
ii
Foreword
This is the first County fiscal strategy paper (CFSP 2014) by Nakuru County
Governmentsince March 4th 2013 general election,it sets out the County priority
programs to be implemented in the Medium Term expenditure Framework (MTEF)
under the new governance structures of devolved governments.Its is framed against a
backdrop of the devolved functions as per legal notice 16 and 157 of 2013 in Kenya
gazettein compliance with 4th schedule of the constitution.

Nakuru County economy like its populace is diverse which makes it strong and
vibrant.On this account growth remained resilient in 2013, with the county witnessing
increased economic activities including exploration and exploitation of geothermal
energy, a robust construction industry, increased hospitality services supported by
opening of more hotels, expansion in the horticultural sector, increase in sports tourism
covering rugby,golf and football .Thisin recent timehas seen Nakuru town the County
headquater christened the fastest growing town in Africa. There are however
challanges that continue to hold our economy back from achieving its full potential.
Through the County fiscal strategy paper which is mirrored to the Budget policy
statement by the National government we are adressing these challanges and building
on our strengh as a basis for creating economic excellence.

The strategy for economic excellence covers five broad areas (i) Creating an enabling
environment for business in order to encourage investment growth and expansion of
economic and employment opportunities (ii)Development of key infrastructure
facilities including roads, water, energy, ICT countywide to stimulate growth, create
employment and reduce poverty (iii) Promotion of health services (iv) Promotion of
value addition for agricultural produce, environment management and food security (v)
Promotion of equitable county and social development for stability (vi) Enhancing
governance, transparency and accountability in the delivery of public goods and
service.

The county fiscal strategy paper sets out the background and broad fiscal parameters
for the 2014/15 budget and the medium-term, consistent with National
governmentpriority programs,strategies and policies. The CFSP 2014 is prepared taking

iii
into account resources decentralised by the national government for devolved
functions, in addition to County potential of generating revenue from local sources as
conteplated by article 207 of the constitution . The ensuing MTEF resource allocation
therefore will be critical in laying the foundation and setting the stage for full
operationalization of the devolved functions for Nakuru County.

iv
Acknowledgement
This is the first County fiscal strategy paper(CFSP) to be tabled in the county assembly
under the Public finance management act 2012. It outlines the broad strategic and
economic issues and framework together with county government spending plans as a
basis of 2014/15 budget and medium term. We expect the document to enhance the
understanding Of Nakuru county public finances and guide public debate on economic
and development activities.

The preparation of the county fiscal strategy paper is a collaborative effort. Much of the
input is borrowed from the national government budget policy statement, county
department through the C.E.Cs and his excellency the Governorpolicy statements.We
are grateful for comments from the macro working groups and public sector hearing in
february 2014, in addition to comments from commsion for revenue allocation and
other stakeholders.

A core team in the county treasury spent a significant amount of time putting tegether
this paper. We are particulary greatful to the Chief officer Finance and economic
planning Mr P.K Torome, head of budget supplies Mr charles lwanga, Mrs Beatrice
Ndhiho budget supplies and controller of budget, Mr Philemon Ronoh for coordinating
the execution of this task. Special thanks goes to Mr David Tambo from the Ministry of
devolution and planning who through constant consultations and input guided the
document preparatory stage.I would like to take this opportunity to thank the entire
staff of the County treasury for their dedication and commitment.

FRANCIS MATHEA

C.E.C FINANCE AND ECONOMIC PLANNING

v
Contents
Foreword....................................................................................................................................iii

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

Legal Basis for the Publication of the County Fiscal Strategy Paper.........................................ix

Responsibility Principles in the Public Financial Management Law...........................................x

I. ECONOMIC EXCELLENCE..................................................................................................1

Background.............................................................................................................................1

Programs for achieving economic excellence..........................................................................3

Strategic priority I: Creating an enabling environment for business....................................3

Strategic priority II: Development of key infrastructure facilities including feeder roads,
water, energy, ICT countywide to stimulate growth...........................................................4

Strategic priority III:Promotion of health services through investing in quality and

accessible health services....................................................................................................5

Strategic priority IV:Promotion of value addition for agricultural produce, food security
and environment management.............................................................................................6

Strategic priority V: Promotion of equitable economical and social development for

county stability....................................................................................................................7

Strategic priority VI: Enhancing governance, transparency and accountability in the

delivery of public goods and service by promoting public partication as enshrined in the
constitution..........................................................................................................................8

II RECENT ECONOMIC DEVELOPMENT AND POLICY OUTLOOK IN 2013/14............11

REVIEW OF FISCAL PERFORMANCE IN 2013/14......................................................11

County Revenue................................................................................................................11

Locally Collected Revenue................................................................................................11

Exchequer Issues...............................................................................................................13

County Budget Expenditure..............................................................................................13

Total County Expenditure.................................................................................................14

Economic Classification of County Expenditure...............................................................14

Update on Fiscal performance and Emerging challenges..................................................15

Implementation of 2013/14 budget and Emerging fiscal challanges..................................16

vi
 2013/14 Supplimentary estimates......................................................................................17

National Growth Update...................................................................................................18

III FISCAL POLICY AND BUDGET FRAMEWORK............................................................20

Overview...............................................................................................................................20

Observing Fiscal Responsibility Principles...........................................................................21

Fiscal structural reforms........................................................................................................21

Deficit Financing Policy........................................................................................................22

2014/15 Budget framework...................................................................................................22

Revenue projections..............................................................................................................22

Expenditure Forecasts...........................................................................................................22

Development expenditure......................................................................................................23

Overall deficit financing........................................................................................................23

IV INTERGOVERNMENTAL FISCAL RELATIONS............................................................24

County Budgets and the Transfer of Functions.....................................................................24

Resource Available Equitable shares.....................................................................................24

Additional resources..............................................................................................................24

V:MEDIUM-TERM EXPENDITURE FRAMEWORK...........................................................28

Spending Priorities................................................................................................................28

Baseline ceilings....................................................................................................................33

Details of Sector Priorities.....................................................................................................34

VI. CONCLUSION AND NEXT STEPS..................................................................................42

ANNEX TABLE 1.........................................................................................................................43

ANNEX TABLE 2.........................................................................................................................45

ANNEX TABLE 3.........................................................................................................................47

ANNEX TABLE 4:........................................................................................................................49

vii
Abbreviations and Acronyms

BSP Budget Policy statement

CBROP County budget review outlook paper

CFSP County fiscal stategy paper

CPID County intergrated development plan

CSWGs County Sector Working Groups

DF Deficit financing

FIF Facility improvement funds

FY Financial Year

LR Local revenue

KISSIP Kenya informal settlement infrastructural programme

MDG Millennium Development Goals

MTEF Medium Term Expenditure Framework

PERs Public Expenditure Review

PFM Public Financial Management

PPP Public Private Partnership

viii
Legal Basis for the Publication of the County Fiscal Strategy Paper

The County fiscal strategy paper is prepared in accordance with Section 117 of thePublic
Financial Management Act, 2012. The law states that:
(1) The County ,Treasury shall prepare and submit to the County Executive Committee
the County Fiscal Strategy Paper for approval and the County Treasury shall submit the
approved Fiscal Strategy Paper to the county assembly, by the 28 th February of each
year.

(2) The County Treasury shall align its County Fiscal Strategy Paper with the national
objectives in the Budget Policy Statement.

(3) In preparing the County Fiscal Strategy Paper. the County Treasury shall specify the
broad strategic priorities and policy goals that will guide the county government in
preparing its budget for the coming financial year and over the medium term.

(4) The County Treasury shall include in its County Fiscal Strategy Paper the financial
outlook with respect to county government revenues, expenditures and borrowing for the
coming financial year and over the medium term.

(5) In preparing the County Fiscal Stfategy Paper, the County Treasury shall seek and
take into account the views of

(a) the Commission on Revenue Allocation;

(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 County Fiscal Strategy Paper to the
county assembly, the county assembly shall consider and may adopt it with or without

ix
Responsibility Principles in the Public Financial Management Law
In line with the Constitution, the new Public Financial Management (PFM) Act,
2012,sets out the fiscal responsibility principles to ensure prudency and
transparency inthe management of public resources. The PFM law (Section
107(b)) states that:
The county government’s recurrent expenditure shall not exceed the
county government’s total revenue
Over the medium term, a minimum of 30% of the County budget shall be
allocated to development expenditure
The County government’s expenditure on wages and benefits for public
officersshall not exceed a percentage of the County government revenue
as prescribedby the regulations.
Over the medium term, the County government’s borrowings shall be
used onlyfor the purpose of financing development expenditure and not
for recurrentexpenditure.
Public debt and obligations shall be maintained at a sustainable level as
approved by County Government (CG)
Fiscal risks shall be managed prudently
A reasonable degree of predictability with respect to the level of tax rates
and taxbases shall be maintained, taking into account any tax reforms
that may be madein the future

x
I. ECONOMIC EXCELLENCE
Background
This County fiscal strategy paper (CFSP)is the first to be prepared under the Public
Financial Management Act, 2012 within the devolved units of County Governments. In
line with the law, the CFSP sets outCounty priority programs to be implemented in
2014/15and the Medium Term expenditure Framework (MTEF).

The updated National economic outlook has been firmed up in the firstCFSP to reflect
changes in Global andNationaleconomic and financial conditions. Due to the need to
finalise the CFSPafter the release of the National Budget policy Statementin 15 February
of 2014, the first CFSP will be submitted to County Assembly by 28 February 2014 in
time for the deadline under the PFM law.

Since assuming office in,March2013, the County Government has been determined in
steering our county forward through the turbulent seas of devolution uncertainty. In
doing so, we have made bold and strong decisions, to request for devolution of majority
of functions under the 4th schedule of the constititution. Nakuru county has audious task
of improving the delivery of services for the devolved functions through maintaining a
sustainable fiscal policy framework.

This stance has meant that over the 2013/14 financial year, County Government has
been laying the foundation for the acheiving vibrant economic growth to adress the
needs of its inhabitants and winning their confidence. These achievements will serve to
boost the public confidence in County Government’s abilities to maintain and build
upon stability that is clearly becoming evident amid the difficult environment
encountered in the initial phase of devolution.

Recognising the enormous resources and potential that the county has in tourism,sports
agriculture, energy, minerals,forestry protends a huge potential for investors which will
be a key driver of the county economy. The County Government has continued to
support the investment ininfrastructure to compliment this sectors. This is to ensure the
economy and all those who participate in it reap the benefits from the enormous
resources

1
The framework upon which to build an economic excellence agenda is now in
place.However despite the progress made thus far contrasting challanges remain. The
challenge of depressed local revenue outcome of the second half of 2013 and the
inflational trend arising from the national government policies continue to be a concern
for the county government.Expenditure pressures with respect to salary demand of
devolved functions including health agriculture,trade and water sectors continue to
persist, and so are operational demands for thse sectors hence impacting negatively on
the county development agenda. Recent development in the flowers sector, in particular
the placement of Karuturifarm previously the largest producer and exporter cut flower
under receivership has caused jitters in the industry within the county. This may be
agrievated by lack of Economic partinership agreement between kenya and the european
union to ease entry for flower export. Insecurity , weak transport and logistics, high cost
of energy as mirrored from national challenges will continue to strain the economy from
achieving its optimal potential.

The broad strategic priorities for Budget 2014/15 build on the achievements of the
County Government to dateby directing public spending to encourage growth and
complement private sector investment. Takingthe County intergrated development Plan
(CIDP) as a point of departure, the County Government is certain that the broad strategic
priorities for 2014/15 will provide a framework which protects our fiscal position and
supports inclusive sustainable growth. Our broad strategic priorities for attaining
economic excellence include:

a) Creating an enabling environment for business in order to encourage investment

growth and expansion of economic and employment opportunities
b) Development of key infrastructure facilities including feeder roads, water,
energy, ICT countywide to stimulate growth, create employment and reduce
poverty
c) Promotion of health services through investing in quality and accessible health
services
d) Promotion of value addition for agricultural produce, environment management
and food security. Through revival industries including pyrethrum, potato
processing plant, dairy product cooling plants, promotion of producer co-
operative soceties and provision of agricultural extension services.
e) Promotion of equitable economical and social development for stability
2
 f) Enhancing governance, transparency and accountability in the delivery of public
goods and service by promoting public partication as enshrined in the
constitution

In deciding on these priorities, County Government acknowledges that there is hard

work ahead inimplementing these policies and doing so is in everyone interest we all
gain. Our objective is inclusivesustainable growth.

This county fiscal strategy paper therefore articulates priority economic policy as well as
sectoral expenditure programs to be implemented under the Medium expenditure
framework for 2014/15-2016/17 in order to a chieve the county Government
developmental goal of economic excellence

Programs for achieving economic excellence

Strategic priority I: Creating an enabling environment for business

Tax and revenue reforms

Fundamentally the focus of county government will be underpinned by the ongoing

reforms in tax policy and revenue administration.To help achieve this central objective a
key proposal is to leverage on automation for key revenue collection points and items
including parking fees, building plan approval, mutations and land rates collections.The
county has since acheive a milestone in reforming revenue administration by going
cashless in a strategic partnership with banks which has seen them dedicate special
counters for payment county charges. The county strategy for strenghtening revenue
efforts will be complimentated by the ease of obtaining licenses hence doing business
through the intial consolidation of the numerous charges for business
people.Harmonization of taxes is the hallmark of the reforms while retaining the taxes at
the current level and creating a one shop stop for business licenses. New taxes are
proposed in line with the devolved functions including tourism, betting and casino
licensing, liquor licensing, county parks entry fees and mineral royalties. In the same
vein the county government is putting in place a strong strategy for revenue
administration. The first part of this strategy is to ensure minimal loss of revenue
collected through corrupt practices by existing cartels. The second part is to improve the
administration efficiency which in effect guarantees maximum collection and remittance
of revenue to the county coffers.

3
Rationalization of inter- county taxation provision

In respect to the power of the county to impose taxes and other revenue raising measure
Nakuru county will ease mobility of goods from other counties be accompanied by
movement permits to augment Article 209(5) of the 2010 constitution

Complimenting National government security for sustained growth and employment

A secure environment is the foundation of national development efforts.Security is also
central to stability and encouraging investments, accelerating growth and in turn creating
employment, especially for the youth. The county government will in this respect
compliment the national government effort through estabishing the county policing
authority with membership drawn from within the county. The effort of the county
toward complimenting the national government over the medium term entails among
others the following

a. Expansion of are of coverage of streetlighting to include market centres outside

major urban centres
b. Complimenting national government effort by investing in security infrastructure
such as police post.this initiative will be expanded in the medium term to include
provision of vehicles
c. Developing regulation and guidelines for installation of intergrated closed circuit
television(CCTV) system for building in urban areas.
d. enhance the development of strategic police and community partnerships and the
implementationof smarter crime prevention initiatives to address crimes of
concern;
e. strengthen the investigative capacity of the Police to ensure that those who have
committed crimes will be brought to justice

Strategic priority II: Development of key infrastructure facilities including feeder

roads, water, energy, ICT countywide to stimulate growth

The County Government has made significant investments in infrastructure and has laid
the foundation forcontinuation and actual rollout of development in 2014. To ensure
resilience, our investments ininfrastructure will take into take into consideration disaster
risk mitigation and climate changeimplications. Therefore focus in infrastructure
development will be to:

4
Continue investing extensively in infrastructure that will contribute to not onlyeconomic growth
but also to improving the livelihoods of our people. In this financial year, the feeder roads,
installation of streetlights in towns and major centres and water upgrade within the county is
currently being implemented.

lay ground work for improvements to water for Nakuru county which is well underway with
actual delivery commencing in 2014. This will address not only reticulation around the county,
but alsoupgrade intakes and improve the quality of water to our people. In addition, the sinking
of the water borehole will bring relief to many households in different parts of the county.
Laying the necessary foundations for delivery has been the focus in 2013 for fullimplementation
in 2014. This will not only improve water supply and quality but also build theresilience of our
communities to the adverse impacts of climate change.Furthermore, we have started phase one
of the storm water drainage and sanitation upgrade for selected towns in the county.

In renewable energy, exploration and exploitaion of geothermal power is under way in nakuru
and naivasha sub counties.To enhance information flow and connectiviity the county is in the
process of rolling out a 10km radius connecivity through WIFI for internet users as part of
jubilee manifesto of going digital

To suppliment our efforts world bank funded project dubbed KISSIP is due to take off in
2014 this will help solve the perenial storm water drainage and will target nakuru west
subcounty in kaptembwaand naivasha sub countya total of kshs will be injected in the
project. we have successfully hosted a numberof key stakeholders meetingthrough the support
of the world bank.

The County Government acknowledges that its agencies must be better coordinated to
deliver on infrastructuredevelopment. In this regard, the County Government will
complete the formulation of the Infrastructure MasterPlan to be launched in 2014 and
launch the Infrastructure Investment Plan which will outline the roll out ofpublic
infrastructure for the medium to long term. Furthermore, we will support the up skilling
and capacity building of our people in the infrastructure sector and will foster the
training of local counterparts in the development and management of our public asset

Strategic priority III:Promotion of health services through investing in quality and

accessible health services

The strategy for human capital development entails getting more value out of current
spending,improving equitable access to quality healthcare throughout the county
5
Building a heathier County
A healthy population is essential for higher productivity and sustained longterm
development of a nation.We have achieved notable progress, especially in controlling
communicable diseases (tuberculosis,HIV/AIDSandmalaria) and attaining marked
decrease in childmortality, but other health challenges associated with affluence and
accidents are emerging–putting pressure on our healthcare system.The aim of County
Government policy reforms is to enable all Kenyans access to modern and well-
equipped health facilities and welltrained and motivated healthcare workers.

The County government working with the National Government and other partners,
will implement a second generation healthcare reform strategy involving; recruitment
of more healthworkers, expansion of training facilities, development of systems to
support and expand healthcare services and sanitation at the community level. A
program for health care in frastructure upgrade and equipment modernization,
especially through leasing, will be implemented. The County government will also
finalize the development of a health policy and institutional and legal framework for
enforcement of healthcare standards. Inadditional efficient, effective and accountable
framework for the management of public resources and medical supplies at the
facility levels will be put in place.

The county will undertake the decentralisation of health facilities to lowest level
including decetralisation of health worker to those falities

Strategic priority IV:Promotion of value addition for agricultural produce, food

security and environment management.

Value addtion in agriculture and food security

Prioritizing investments in agriculture is central to the County and Kenya‘s economic
excellence and transformation. Investing in agricultural reforms and transformation will
spur an inclusive economic growth with knock-on effects on related sectors of agro-
processing; storage and transport; wholesale and retail; construction; financial services
as well as export diversification and growth. In addition, expanded agricultural output
will increase foodsupply, reduce food related prices and bring down the cost of living,
create employment and promote overall rural development and improve the economic
welfare of county residents and Kenyans.
The strategy focuses o n necessary inputs, machinery, technical know-how and
supervision on standards, as measures to increase agricultural productivity and crop
6
yield, anchored on access to market and adequate financial and technical resources-
the central pillars of a functional agriculture value chain, which is necessary to
transform agriculture into a business venture.
The county government on assuming office embarked on strategizing on how to
revive the pyrethrum sector which will see farmer embarks on growing of the crop
which was the main stay of the county economy in the past in addition to other crops
including revival of potato cooling plant.
Agricultural resources will be prioritized for investment in key infrastructure,
including training facilities, curriculum development, produce handing, storage, agro-
processing and value addition facilities, access roads .

Environment management
The fundamental question of ‘how do we best manage and maximise our natural
resources to benefitour people and economy in the long run’ must always be considered
in the development process. In thisregard, the 2014/15 financial year will be one of
taking stock of the value of our natural resources andtailoring our development to reflect
present and future values with the objective of integratedsustainable development. This
will ensure that there is a balance between the economic, social andenvironment pillars
of our progress.
Therefore in 2014/15, we will:
a) determine the value of our natural resources through strengthening information
and datacollection, analysis and dissemination;
b) complete our state of the environment assessment;
c) continue on the work required to operationalise solid waste management;
d) explore options to incentivise the growth of eco-friendly and green initiatives,
industries andbusinesses; and
e) explore options of sustainable financing for conservation and environment
management.

Strategic priority V: Promotion of equitable economical and social development for

county stability

Improve the wellbeing of our people

Our people are central to ensuring inclusive sustainable growth and must be active
participants in ourdevelopment. In addition to our bold implementation of tax reform to
encourage enterprise at thehousehold level, in 2014/15 we will:

7
 a) continue our investment in education with the implementation bursary
programme at ward level
b) continue to invest in health with the primary focus on prevention and promoting
its linkages tonutrition, sports and physical activity;
c) explore further options and mechanisms to ensure that those who need help the
most will receivedappropriate support; and
d) support initiatives that promote equity of opportunities for participation in the
economy and societythrough our various grant instruments youth, and disabled.

Revitalise growth in the Nakuru county

In the past the development of Nakuru county has been mainstreamed with national
development. Whilstthe County Government recognises that this is important from a
national development planning perspective,the unique needs of Nakuru county require a
more targetted approach, with the respective County Government’s determining their
development priorities and the Government and its agencies providingadequate support.
This will be our focus in 2014/15. Areas of particular attention for support will be:
a) growing Nakuru county economies;
b) improving infrastructure to support the three pillars of sustainable development;
c) building resilience in our county;
d) improving social development outcomes; and
e) to improve governance.

Strategic priority VI: Enhancing governance, transparency and accountability in

the delivery of public goods and service by promoting public partication as
enshrined in the constitution

Improve public service productivity

County Government will continue to improve the performance of the public service with
an emphasis on increased productivity, better use of existing resources and shifts in the
composition of spending ratherthan raising overall expenditure. In 2014/15, Government
will:
a) establish better human resource development and management frameworks
across the County publicsector
b) implement the recommendations of the controller of budget and salary and
remuneration commision ;
c) continue to consolidate administrative functions where appropriate;

8
 d) implement a more effective performance management system pursuant to section
47 of County government Act;
e) reduce the cost of public administration; and
f) improve information management, sharing and dissemination

Delivery of public goods and pulbic participation.

The Government has a duty to broaden opportunities for our people to participate in the
economy andbenefit from it. We are mindful that we have to take measures to distribute
some of the benefits thatarise from growth so that all our people regardless of whether
they are actors in the formal or informalsectors can say that, ‘this economy works for
me’.
The County Government wishes to accelerate its efforts in creating an environment
conducive to economicgrowth, creation of wealth and diversifying the economy.
Therefore the focus for implementation in2014/15 will be to:
a) evaluate the role the public sector plays in enabling enterprise and facilitating
growth with thepurpose of removing obstacles that hinder innovation and
entrepreneurship;
b) harness our rich cultural heritage, vibrant arts and untapped creative potential by
organising trade fairs
c) encourage public private partnerships where appropriate;
d) concentrate efforts on supporting our people who are starting and growing
businesses;
e) continue to modify regulatory frameworks that stifle business and growth;
f) implement a holistic tourism growth and marketing strategy that includes all
subcounnties in Nakuru county;
g) continue to support initiatives that will diversify our economic base by increasing
productivity andencouraging innovation in cooperative societies, agriculture and
the knowledge economy;
h) continue to engage with telecommunications sector which will accelerate
economic and social development and connectivity;
i) review our land tenure arrangements to find opportunities and enabling
mechanisms that willsupport investors in adding economic, social and
environmental value to theuse of land.
j) Adoption of County Public participation policy and law.

9
10
II RECENT ECONOMIC DEVELOPMENT AND POLICY
OUTLOOK IN 2013/14
REVIEW OF FISCAL PERFORMANCE IN 2013/14

During the period July to December 2012/2013, the main spending units of the County
Government were the County Assembly, County Executive and Ministries. The main
sources of revenue during the period under review were national government allocation
(exchequer issues) consisting National grant and Local revenue.

County Revenue
The total revenue that the County received was Kshs. 2,704,862,258.00 which was
received from various sources

Figure 1: County Revenue Sources

Source: Central Bank of Kenya

Locally Collected Revenue

Ministerial departments were the main revenue collectors of local revenue. Local
Authority Integrated Financial Operations Management System (LAIFOM) was the
main platform for recording the collected revenue. Eight (8) County Revenue Collection
Accounts were opened across the Eleven (11) Sub Counties in the Nakuru County. All
the revenues collected from these collections accounts are regularly swept to the County
Revenue Account domiciled at Central bank. Table 1 shows the revenue analysis by
department from July to December 2013.

11
Table 1: Revenue Analysis by Unit
Revenue Source Total Collection (Kshs.) % of Collection
FINANCE 37,349,191.0 10.7
0
TRADE 60,189,071.0 17.3
0
HEALTH 17,972,583.0 5.
0 2
EDUCATION 603,700.0 0.
0 2
LAND 106,924,895.00 30.7
AGRICULTURE 10,743,016.0 3.
0 1
ROADS 93,190,286.0 26.7
0
ENVIROMENT 21,624,485.0 6.
0 2
TOTAL 348,597,227.00 100.00

Source: County Treasury

Total revenue collection for the period was Kshs. 348,597,227.00. Ministry of land and
Housing contributed 31 % of the total revenue collected during this period. Included in
the fees and charges of this unit are, land rates which contributed 53 million,
advertisement fee 11 million, inspection fee 4 million, among others. Ministries of
Education, Youth, Culture and Social services contributed 0.2% of the total revenue, the
lowest out of the 8 departments. The major sources of revenue for the Education
department are Group registration, Social hire and School registration. It is expected that
the County revenue would increase as from January 2104 since the finance Act has been
passed accented to by the Governor to become a law. January through April is said to be
boom period to the County as it is the period of licences and fees renewal.

Table 2: County Revenue Analysis by Month

Months Amount % of Collections

MONTH TOTAL
JULY 68,057,757.00 20
AUG 54,187,342.00 16
SEPT 58,916,954.00 17
OCT 61,823,670.00 18
NOV 59,487,340.00 17
DEC 46,124,164.00 13
TOTAL 348,597,227.00 100
Source: County Treasury

12
 Table 2 shows the collection by various departments for the quarter. Figure 3 shows
locally collected revenue per month. It can be observed that revenue collection has a
downward trend with low collection during the month of August.

Figure 2: Trend of Revenue Collection

Source: County Treasury 2014

Exchequer Issues
The exchequer issues to the County Government totalled to Kshs. 2,049,977,143 billion
out of the total budget for the financial year 2013/2014, which is 58.7% of the total net
estimates. The sum was released to the County in three batches as shown below:

Table 3: Exchequer Issues to Nakuru County

Month Amount

July 97,483,673.00
August 75,500,000.00
September 504,586,076.00
October 672,406,000.00
November 700,000,000.00
December -
Total 2,049,977,143.00

Source: Office of the Controller of Budget

During the period under review, all exchequer requisitions were funded. The challenges
faced during exchequer issues include late disbursement of funds by the National
government to the County, poor financial reporting framework by the County entities,
slow IFMIS roll-out to the sub counties among others.

13
County Budget Expenditure
The total expenditure by the County Government was Kshs 1,476,063,596.00. The
spending units included County Assembly, County Executive and Ministries.

Total County Expenditure

Expenditure from County Revenue

The total recurrent and development budget for FY 2013/2014 for all departments is
Kshs. 10.04 billion. The total recurrent expenditure for the period under review
cumulatively stood at Kshs. 1.76 billion which represents 14.3 per cent of the revised
gross estimates.

Table 4: Comparison of Budget Estimates and Actual Expenditure

DEPARTMENT Budget estimates Total Budget Balance % of
(Kshs. 000 expenditure (Kshs.) budget
absorption
County 1,239,684,874.58 202,081,220.00 1,037,603,654.58 16.30
Assembly
County 547,655,485.00 225,019,119.00 322,636,366.00 41.09
Executive
Finance 1,251,716,311.00 306,776,448.00 944,939,863.00 24.51
Agriculture 408,227,065.00 34,382,360.00 373,844,705.00 8.42
Health Services 2,542,684,821.00 64,124,322.00 2,478,560,499.00 2.52
Education 727,384,677.00 55,231,019.00 672,153,658.00 7.59
Roads & Public 1,304,884,493.00 74,070,517.00 1,230,813,976.0 5.68
Works 0
Lands 247,476,901.00 21,414,582.00 226,062,319.00 8.65
County Public 974,354,816.00 453,699,485.00 520,655,331.00 46.56
service
Trade 541,779,966.00 24,950,347.00 516,829,619.00 4.61
ICT 196,065,844.00 4,784,516.00 191,281,328.00 2.44
Environment 337,940,817.00 9,529,661.00 328,411,156.00 2.82
TOTAL 10,319,856,070.58 1,476,063,596.00 8,843,792,474.58 14.30

Source: County Treasury

Table 4 compares the actual expenditure to the revised gross estimates for the FY
2013/2014. From Table 4, County Public Management Services and County
Executives had the highest absorption rate at 46.56 % and 41.09 % respectively.
Ministry of Health Services and Ministry of Information and E-Government recorded
the lowest absorption during the period with a rate of 2.25% and 2.82 % respectively.

Economic Classification of County Expenditure

Table 5: Economic Classification of Expenditure
Description Total Total
Expenditure Expenditure %
(Kshs. 000)
Personnel Emoluments 858,482,070.00 58.2
Operational & Maintenance 605,078,483.00 41.0
Development Expenditure 12,113,543.00 0.8
Total 1,475,674,096.00 100.0
14
Source: County Treasury

The Table 5 groups the total county expenditures for the quarter into three categories;
i. Compensation of Employees; includes basic salaries paid to permanent and
temporary employees and personal allowances paid as part of salary among other
related costs.
ii. Operations/Use of goods and services; includes utilities, supply and services,
domestic travel and subsistence, and other transportation costs, training
expenses, hospitality supplies and services, routine Maintenance among other
related cost.
iii. Development expenditures

From Table 5, Compensation of Employees consumed 58.2 % of the total expenditure.

Operations and Maintenance consumed 41.0 % while Capital Assets/ development
consumed 0.8% of the total expenditure.

Figure 3: Expenditure Trend

Source: County Treasury

Figure 3 shows that expenditures are tilted heavy towards payment of personnel
emoluments was stands at over Kshs 854 million. There was a decline in expenditure on
other economic variables. Expenditure on capital assets received the lowest amounts of
18 million. This also portrays the huge differences in expenditure patterns. A good
budget and budget implementation framework that is backed up with procurement plans
and cash-flow forecast minimizes the huge variances in expenditure patterns.

15
Update on Fiscal performance and Emerging challenges
The fiscal and economic assumption underlying the 2013/14 budget entailed improved
collection of revenue from local sources and timely disbursements of funds by the
national treasury. The updated Economic framework is cautious given the weaker-
thanexpectedrevenue performance in the first Half of 2013/2014 and delayed
disbursement of funds Against this backdrop the County Government will continue with
its policy of expenditure rationalization with a view to funding only core services and
reducing costs through the elimination of duplication and inefficiencies.

County assembly approved initially approved the financial year 2013/ 2014 with a
deficit balance. Included also was an expenditure of Kshs 371 million for Car grant and
Mortgages to members of the County Assembly. This was revised following advice from
the OCoB through members appropriation bill by virtue of section 131(4) (b) of the
Public Finance Management Act 2012. The County budget for the fiscal year 2013/2014
is now balanced at a figure of Kshs 10.038 billion. This comprises kshs 7.7 billion of
County government recurrent expenditure (including 3.3 Billion for personnel
emoluments) development of kshs 2.7 billion and debt repayment of kshs 300 million.
The expenditure are expected to be finance by total local revenue kshs 2.5 billion facility
improvement fund of kshs 522 million, Equitable allocation from CRA kshs 5.9 billion,
CRA conditional transfers to level 5 hospital of kshs 600million, and donor element of
CRA allocation of kshs 424 million

the 2013/14 budget

Implementation of 2013/14 budget and Emerging fiscal challanges

Challenges in the movement to new IFMIS platform coupled will drawn out
disbursement of C.R.A delayed implementation of the FY 2013/14 budget by almost ten
weeks to october 2013. Initial transitional issues on the part of the national government
delayed the enactment of the county allocation of revenue act majorly affecting timely
disbursements to the counties .This has now been addressed and Countygovernment
operations are continuing in earnest. However, expenditure pressures have emerged with
salary and operational demands from the health and Agricultural sectors which were
further devolved on 9th of August vide legal notice 157 of 2013.These poses risk to the
stability of the budget for 2013/14 in the face of reduced revenue collection in the 1st
half.

16
Revenue collection was was Kshs 348 Million in the first six month of the fiscal year
2013/2014 year against a target opf 900 million a shortfall of kshs 552 million. The
underperformance was due to the delay in enactment of the finance bill and reluctance of
the citizens inpaying the existing levies.for the remainder of the year we expect the
shortfall to persit.

Due to the transitional challenges experienced in first half of the financial year 2013/14
and changes in disbursement in government funding to the county governments, budget
implementation fell short of the approved budget estimates on account of development
expenditure. Development Expenditure execution has lagged behind in the first six
months of the financial year .on account of delayed disbursement of development vote
by the national treasury.

2013/14 Supplimentary estimates

In the course of the budget implementation during the first half of the financial year
several challanges emerged they include local revunue underperformance and
expenditure pressures.The former arising from the delay in enactment of finance act
while the former was as a result of delay in gazettement of functions trasfered in county
government after the approved of county budgets.

In view of the financing constrains from revenue and emerging expenditure presssures a
supplimentary budget for FY year 2013/14 reflecting these changes will be submitted to
the county assembly for approval. The additional spending in respect of devolved
function salary for workers in health, agriculture, water ,trade amounting to kshs 1.3
billion, this together will underperformance of revenue to the tune of kshs 1 billion call
for reallocation and rationalization of funds to the tune of kshs 2 .3 billion.

Adjustments to the 2013/14 budget will take into account actual performance of
expenditure so far and absorption capacity in the remainder of the financial year because
of the resource constrains, the County Government will rationalize expenditures
bycutting those that are non-priority. These may include slowing down or reprioritizing
development and operational expenditures in order for the Government to live withinits
means. Utilization of emergency funds will be within the criteria specified in the 2012
PFM law.
17
National Growth Update

The econ
econo
omy grew by 4.6 percent
ercent in 2012 comp
ompared
ared with 4.4 percent
cent in 2011
(Chart 2.1).
2.1). This growth was broad-based and was drive
iven mainly by expansion in
agricultur
ulture, transpo
ransporrt and communica
ommunication,
tion, whole
wholesale and ret
retail trad
rade, and
manufactur
cturing whic
which contr
ontribute
ibuted the most to GDP in 2012.

In

the first thre

threee quart
arters of 2013 the econo
econom
my expande
nded by 4.6 percent
rcent on average
compa
ompared
red with 4.4 percent
cent in the same period
eriod in 2012. The broad- based growth was
mainly attr
ttribute
ibuted to continue
ontinued expansion in building and constr
onstruction, min
mining and
quar
quarrrying, whole
wholesale and ret
retail, manufact
facturing
ing, transpo
ransporrt and communica
munication
tion
fina
inancial inte
interme
rmedia
diation as well as agricultur
ulture and forest
restrry.

County growth prospects

Growth remained resilient, Nakuru county has seen increased economic activities
including a robust construction industry, increased hospitality services supported by
opening of more hotels, expansion in the horticultural sector, increase in sports tourism
covering rugby,golf and football .

Foreign investors indicators

Against the backdrop of finite funding from the national treasury and the County local
sources the implementation of the 2013/2014 County infrastructural programme recently
received a boost from foreign donors. In this respect the County will benefit from
18
improvement in infrastructure in various sectors including education, roads and the
health sectors. A project funded by the world bank solve the perenial storm water
drainage is set to begin in the next four weeks and will target nakuru west subcounty in
kaptembwa a total of kshs 240 will be injected in the project.

Risks to the outlook

Given the fact that the devolved system of government is a relatively new phenomena in
kenya there are still many unknowns that may pose serious challenges to organs of
governance at the county level as the learning curve stepeens.

Expenditure pressures have emerged with salary and operational demands from the
health and Agricultural sectors which were further devolved on 9th of August vide legal
notice 157 of 2013.Hamornization of salaries disparities for staff devolved from the
National government and those inherited from the defunct local authorities within the
county has implications on the wage bill. These poses risk to the stability of the budget
for 2013/14 and the medium term by limiting funding to the development expenditure.

The risk to the outlook for 2014/15 and medium-term include further weakening in
National economic growth prospects in tourism sector. Tourism being one of the major
main stay in the County economy the inherent risk is bound to impact adversely on
County revenue propspects.
Reversal in the current easing of flower import tariff by the european union and recent
placement of karituri flower farm under receivership will impact on county revenue as it
is a major component.
Failure to observe budgetary timelines by the legislative arm as stipulated by the
constitution and the PFM Act 2012 may undermine the budgetary process and
operations of the county.

Finally, the emerging conflict betweenthe senate and county government and threat of
delaying the county revenue allocation and division bill will delay the implementation of
budget .Should these risks materialize the county government will face bottlenecks in
service delivery

19
III FISCAL POLICY AND BUDGET FRAMEWORK.

Overview

We will continue to pursue prudent fiscal policy to assure economicstability. In addition,

our fiscal policy objective will provide an avenue to support economic activity while
allowing for implementation of the programmes within sustainable public finances.

In respect to Revenue the Coutny treasury isexpected to institute corrective measures to

reverse the loss of revenue from local sources. Options could include enhanced
compliance audit of large Outstanding Property tax payers, targeted automation of
highly potential but leaking revenue sources, and speedy implementation of collection of
other sources of taxes such as liquor licenses,park fees ,flower cess, royalties,
advertisement and rental chrages.

Following the devolution of the tourism sector,the Government will continue to engage
with stakeholders to develop a comprehensive policy and legislative framework
covering licensing, revenue sharing, taxation and sustainable use of the resources. This
will ensure that we derived maximum benefit from county parks and its heritage sites
including lake Nakuru, Mt longonot, Hells gate among others. In addition the countyis
counting on a draft bill to be introduced in the senate which will stipulate royalties to be
paid to counties from natural resources found within its locality with high prospects
expected in the power generation sector in form of geothermal power.Devolved
ministries colecting revenue will be expected to surrender them to the County revenue
fund account as soon as possible.

Any review of salaries and benefits for the public sector workers will beconducted by
the Salaries and Remunerations Commission (SRC) in accordance withArticle 230 of the
Constitution and Regulations on Pay Review and Determination,In addition to the
County public service board harmonizing the salaries of employees of former defunct
local authorities and central government for the devolved government.

In addition, the County Government will consider making decision to put on

holdapproval of any policy and proposed legislation, which establishes a new County
sector agency with personnel and wage implications. All such establishments should

20
await comprehensive restructuring of the county Government in accordance with the
Constitution.

Observing Fiscal Responsibility Principles

The County Government recognizes that the fiscal stance it takes today will have
implications into the future. As 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. Once the PFM regulations are finalized the county governments will respect
ratios guiding the wage levels in general and expenditure management on items such
as office goods and their pricing that should as much as possible reflect actual
marketprices. Timelines on paying goods should be minimized to enable county
government get competitive prices in the market.

The respect and observance of these fiscal rules set out in the PFM law and its
regulations is important and necessary to entrench fiscal discipline. In this regard,the
Government will observe the fiscal rules set out in the PFM law so as to entrench
fiscal discipline.

Fiscal responsibility has become even more important since the Constitution requires the
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 tax revenue yield
through efficient collection and widening of taxbases. It is therefore imperative to
reform and modernize the taxregimes to ensure stability of revenue effort, while at the
sametime continuing to restructure expenditure systems to ensure efficiency and create
fiscal space required to fund these basic needs expenditures on sustainable

Fiscal structural reforms

The County Government will continue harmonizing existing tax regimes offer tax reliefs
incentives, widen the tax base In line with 2013 finance Act that was enacted by the
County Assembly, the county Government is reviewing all other tax legislations in
order to simplify and modernize them as indicated in the FY 2013/14 Budget Speech.
This is expected to increase revenue collection in the medium term 2016/17 to Kshs 3
billion
21
On the expenditure side, the County Government will continue with rationalization of
expenditure to improve efficiency and reduce wastage. Expenditure management will be
strengthened with full adoption of the Integrated Financial Management Information
System (IFMIS) across the county level. Above all, the new PFM Act, 2012 is expected
to accelerate reforms in expenditure management system

Deficit Financing Policy

The fiscal stance envisages borrowing from Domestic Sources. Borrowing will be
undertaken in a cautious manner and limited to bankable projects and the stated ceiling
in the Medium-Term Debt Strategy Paper.

2014/15 Budget framework

The 2014/15 budget framework is set against the backgroundCounty intergrated

development plan and themedium-term fiscal framework . In addition to the national
budget policy statement as mirrored in strategic objectives as outlined in the vision
2030, MTP II and the broad development policies of the new administration

Revenue projections
The 2014/15 budget will target revenue collection including Facility improvement funds
(F.I.F) of Kshs 2.6 billion which translates to 26 percent of total expenditure. As noted
above, this performance will beunderpinned by on-going reforms in tax policy and
revenue administration. As such, total revenues including Local revenue, CRA
alocations and FIFs are expected to be Ksh 9.8 billion.

Expenditure Forecasts
In 2014/15, overall expenditures are projected to increase by 8 percent (or kshs 900
million)

up from the estimated Ksh10 billion inthe FY 2012/13 budget owing to more functions
being devolved.
Recurrent expendituresare expected to stabilize slightly at 70 percent of total
expenditure in the FY 2014/15 from 69.9 percent of total expenditurein the FY 2014/15,
on account of growth in nominal total expenditure.

22
  Debt repayments is expected to increase relative to total expenditure to 4
percent in 2014/15 from 3 percent in 2013/14,
 The wage bill is expected to stabilize at 50 percent of total expenditure in the
FY2014/15.
 Transfers to County assemblyand level five hopitals will remain at the 2012/13
nominal value.
 Expenditure ceilings on goods and services for sectors/ministries are based on
funding allocation in the FY 2013/14 budget as the starting point. The ceilings
are then reduced to take into account one-off expenditures in FY 2013/14 and
then an adjustment factor(inflation tendancies) is applied to take into account the
general increase in prices.

Development expenditure

The ceiling for development expenditures excluding donor funded projects will stabilize
in nominal terms to Ksh 2.9 billion (30 percent oftotal expenditure) in the FY 2014/15
from Ksh 2.7 billion (27 percent of total expenditure) in 2013/14. Most of the outlays
are expected to support critical infrastructure that will crowd in private sector
investment. Emegency provision of Ksh 50 million and Ksh 22 million for renewal of
assets will be provided in the budget for 2014/15.

Overall deficit financing

Overall fiscal balance on a accrual basis (including debts inherited by defunct local
authority) is projected at Ksh 149 billion(deficit financing) FY 2013/14 against the
budget targeted of Ksh 10 billion.This translates to 0.2 percent of the targeted total
expenditure.This stance mean that the county will be force to borrow to undertake
development projects.

23
IV INTERGOVERNMENTAL FISCAL RELATIONS

County Budgets and the Transfer of Functions

A key challenge in developing the 2013/14 MTEF budget was the allocation of funds for
transfered functions to theCounty. The County Governments come into operation after
elections in March 4th 2013 and there wasnot enough information for Counties to
develop their plans and budgets for 2013/14.the confusion was further compound by
lack of clear information on C.R.A Allocation to counties. The release of two legal
notices on devolved governments legal notice 16 and 157 of february and august 2013
forced the revision of the budget

As such, it will be critical to have the amount allocated by CRA known to Counties
early enough. The national government through the Transition Authority should ensure
service delivery to the County Governments is not disrupted in line with provisions in
the Constitution.. County Government on the other hand should ensure that institutions
are constituted and their capacities strengthened in order to enable them perform their
assigned functions effectively and efficiently.

Although asymmetric transfer of functions is provided for in the Constitution,the

national government shouldtrasfer equivalent funding. This will avoid a situation
whereby counties have more functions transferred to them without consumurate funding.

Resource Available Equitable shares

Pursuant to article 202 of the constitution the national government through the budget
policy statement allocated nakuru county kshs 7.2 billion.In this regard the equitable
share of revenue allocated to Nakuru County is kshs 6.9 billion
The equitable share of revenue is unconditional allocation to county governments and
therefore county governments are expected to plan, budget,spend and account onthe
funds allocated independently

Additional resources
In addition to equitable share of revenue Nakuru county is also expected to get addtional
fund from the following sources

24
 a) Additional conditional allocation of kshs 228 million for rural electrification 138
million on loans and grants
b) Own revenue from specific county revunue raising measures through
implementation of the finance act
c) Borrowing provided national government guarantee is obtained as well as the
approval of nakuru county assembly
d) Grants and donations from development partners in accordance with section 138
and 139 of the public finance management act 2012
The current allocation in the national treasury budget policy statement is not indicative
of conditional allocation to level 5 hospital i.e the Provincial genaration hospital
ascompared to the financial year 2013/14. The budget policy statement release by the
national treasury on 15th february 2014 indicates a conditional allocation of kshs 228
million for rural electrification to the county government of nakuru. The transfer of this
function is however not backed by any legal gazettee notice as required by law.

25
 Table :-Revenue Allocation for Each County Government for FY 2014/15
FY 2013/14 FY 2014/15
Per capita
Allocation Total County Rural Allocations - Total County Allocation
County Ratio Allocations (Ksh.) Equitable Share Electrification loans and grants Allocations s (Ksh.)
Column A Column B
1 Baringo 1.71 3,630,408,716 3,780,757,552 125,025,255 182,876,218 4,088,659,024 7,360
2 Bomet %
1.81 3,715,221,350 4,007,503,143 132,523,468 150,769,518 4,290,796,129 5,925
3 Bungoma %
3.25 6,515,262,210 7,194,783,986 237,923,138 711,417,035 8,144,124,159 4,994
4 Busia %
1.80 3,678,773,577 3,972,308,049 131,359,607 661,134,231 4,764,801,887 9,762
5 Elgeyo/Marakwet %
1.26 3,136,513,405 2,784,490,888 92,079,875 139,362,418 3,015,933,181 8,151
6 Embu %
1.48 3,364,281,093 3,267,666,165 108,057,919 426,494,990 3,802,219,074 7,366
7 Garissa %
2.22 4,696,466,675 4,914,082,809 162,503,003 91,802,418 5,168,388,230 8,295
8 Homa Bay %
2.17 5,726,215,438 4,797,669,847 158,653,362 215,462,418 5,171,785,626 5,366
9 Isiolo %
1.18 2,423,476,882 2,602,395,085 86,058,179 91,802,418 2,780,255,682 19,402
10 Kajiado %
1.70 3,511,792,058 3,756,960,407 124,238,311 214,154,418 4,095,353,136 5,959
11 Kakamega %
3.43 7,356,212,775 7,584,569,170 250,812,881 955,696,758 8,791,078,809 5,294
12 Kericho %
1.73 3,612,812,629 3,835,663,387 126,840,927 120,827,418 4,083,331,732 5,385
13 Kiambu %
2.87 6,264,435,668 6,354,545,405 210,137,426 148,204,518 6,712,887,348 4,135
14 Kilifi %
2.86 5,820,419,123 6,335,537,520 209,508,857 142,602,418 6,687,648,794 6,026
15 Kirinyanga %
1.36 2,829,920,840 3,012,479,221 99,619,184 277,576,292 3,389,674,697 6,419
16 Kisii %
2.73 5,824,258,288 6,039,596,132 199,722,419 155,899,518 6,395,218,070 5,550
17 Kisumu %
2.19 4,866,678,745 4,837,094,912 159,957,103 210,529,518 5,207,581,533 5,375
18 Kitui %
2.80 5,834,395,951 6,187,439,952 204,611,443 299,716,518 6,691,767,912 6,608
19 Kwale %
1.97 4,029,400,667 4,364,077,915 144,314,981 168,482,418 4,676,875,314 7,196
20 Laikipia %
1.33 2,757,834,934 2,936,985,641 97,122,699 155,224,518 3,189,332,858 7,989
21 Lamu %
0.79 1,599,992,106 1,746,997,444 57,771,174 91,802,418 1,896,571,036 18,678
22 Machakos %
2.61 5,473,697,909 5,762,909,487 190,572,714 302,987,289 6,256,469,490 5,695
23 Makueni %
2.30 4,721,151,803 5,082,646,941 168,077,223 309,133,344 5,559,857,508 6,286
24 Mandera %
3.45 6,780,543,337 7,624,989,327 252,149,528 91,802,418 7,968,941,273 7,769
25 Marsabit %
2.00 4,068,447,609 4,418,367,634 146,110,279 91,802,418 4,656,280,331 15,992
26 Meru %
2.50 5,507,866,275 5,528,728,169 182,828,610 1,584,004,384 7,295,561,163 5,379
27 Migori %
2.25 4,760,063,083 4,969,563,098 164,337,672 216,486,618 5,350,387,388 5,834
28 Mombasa %
2.00 4,347,575,931 4,425,546,774 146,347,684 131,729,518 4,703,623,977 5,007
29 Muranga %
2.06 4,321,826,974 4,560,157,771 150,799,114 334,012,785 5,044,969,669 5,352
30 Nairobi %
5.00 9,896,236,826 11,065,462,493 365,921,974 1,605,339,854 13,036,724,321 4,154
31 Nakuru %
3.12 6,961,312,530 6,910,337,606 228,516,827 138,214,518 7,277,068,951 4,539
32 Nandi %
1.83 3,886,848,586 4,048,551,880 133,880,902 120,799,518 4,303,232,300 5,715
33 Narok %
2.04 4,146,381,942 4,502,179,906 148,881,853 205,416,618 4,856,478,377 5,707
34 Nyamira %
1.60 3,317,084,521 3,537,221,499 116,971,801 153,902,418 3,808,095,718 6,365
35 Nyandarua %
1.66 3,435,119,044 3,667,089,692 121,266,391 145,774,518 3,934,130,601 6,598
36 Nyeri %
1.71 4,071,322,926 3,788,116,830 125,268,618 316,867,785 4,230,253,233 6,099
37 Samburu %
1.37 2,805,092,097 3,024,453,738 100,015,167 91,802,418 3,216,271,324 14,362
38 Siaya %
1.92 3,971,592,206 4,253,054,841 140,643,577 653,606,711 5,047,305,129 5,992
39 Taita %
1.27 2,626,482,215 2,817,804,460 93,181,516 91,802,418 3,002,788,394 10,549
40 Tana River %
1.53 3,118,807,124 3,392,508,746 112,186,318 123,797,418 3,628,492,483 15,114
41 Tharaka Nithi %
1.21 2,434,590,071 2,671,360,382 88,338,781 698,823,239 3,458,522,401 9,467
42 Tranzoia %
1.96 3,923,008,857 4,341,868,964 143,580,557 91,802,418 4,577,251,938 5,590
43 Turkana %
4.03 7,894,398,068 8,921,969,701 295,039,161 91,802,418 9,308,811,280 10,882
44 Uasin Gishu %
2.00 4,066,889,893 4,419,574,966 146,150,204 96,432,418 4,662,157,588 5,214
45 Vihiga %
1.49 3,028,538,740 3,296,164,713 109,000,333 410,456,808 3,815,621,854 6,880
46 Wajir %
2.78 5,647,521,552 6,158,038,375 203,639,167 91,802,418 6,453,479,959 9,749
47 West Pokot %
1.66 3,592,826,769 3,672,727,375 121,452,823 96,432,418 3,890,612,615 7,589
GRAND TOTAL %
100.00% 210,000,000,000 221,175,000,000 7,314,000,000 13,898,673,499 242,387,673,499 6,278

Capacity Building of County Governments

26
Counties are still experiencing challenges in fully implementing the PFM Act 2012
and the IFMIS system. The national government has continued providing the
necessary support. In this regard, the national government rolled out training at
Kenya school of government facilities and provided standby teams to respond to
requests for support from the county governments. A county public finance
management and IFMIS training curriculum has been prepared and preparation of
Trainers and User’s Manual for each of the training module identified in the
curriculum is underway.

27
V:MEDIUM-TERM EXPENDITURE FRAMEWORK

Going forward, and in view of the recent devolved functionsand limited resources,
MTEF budgeting will entail adjusting non-priority expenditures to cater for the priority
sectors. The County intergrated development plan (2014-2017) has been preparation and
will guide resource allocation, going forward. In the Meantime, the resource allocation
will be based on the updated County government budget revised approved in june
2013ResourceEnvelope

The resource envelope available for allocation among the county department is based
on the medium term fiscal framework
County own mobilized budget resources finance about 25 percent of the budget. Of
this,taxrevenue (Propertytax,single business permit,parking fees and market fees)
accounts for over 65 percent of total budget resources. Local Revenues are expected
to be 30 percent of funding in 2014/15;

County revenue and FIFs is projected to broadly cover 25% of funding required for
total expenditure. This approach does not bodes well for long-term sustainability of
our public finances.

Spending Priorities

Going forward, and in view of the recent devolved functionsand limited resources,
MTEF budgeting will entail adjusting non-priority expenditures to cater for the priority
sectors. The County intergrated development plan (2014-2017) is currently under
preparation and will guide resource allocation, going forward. In the Meantime, the
resource allocation will be based on the updated First County government budget
approved in june 2013
With the County Government’s commitment in improving infrastructure countywide,
28
the share of resources going to priority physical infrastructure sector, such as roads,
streetlighing and waterwill continue to rise over the medium term. This will help the
sector provide reliable security and boost the 24 hour economy and as well as increased
access to water and development ofirrigation projects countrywide.Other priority sectors
including health, internal security,education and youth which will continue to receive
adequate resources. Both sectors (education and health) are already receiving a
significant share of resources in the budget and require them to utilize the allocated
resources more efficiently to generate fiscal space to accommodate other strategic
interventions in their sectors.
The economic sectors including agriculture and livestock will receive increasing share of
resources to boost agricultural productivity with a view to deal with value addition and
threats in food security in the country

MEDIUM TERM EXPENDITURE ESTIMATES

The table provides the projected baseline ceilings for the 2014MTEF classified by sector
MEDIUM TERM
SECTOR APPROVED CBROP CBROP
CEILINGS   2013/14 2014/15 CFSP 2014/15 2015/16 CFSP 2015/16 CFSP2016/17 CFSP2016/17
COUNTY
SECTORS                
1. Agriculture
and Urban
Development TOTAL 655,135,740 879,883,430 859,883,430 967,871,773 927,171,773 1,064,658,950 1,019,888,95
Agriculture
livestock and Rec.
fisheries Gross 311,958,839 411,958,839 368,958,839 453,154,723 453,154,723 498,470,195 498,470,195

  Dev 95,700,000 195,700,000 200,700,000 215,270,000 182,270,000 236,797,000 200,497,000

            -  
Land Physical
Planning and Rec.
Housing Gross 145,233,901 159,757,291 144,757,291 175,733,020 175,733,020 193,306,322 193,306,322

  Dev 102,243,000 112,467,300 145,467,300 123,714,030 116,014,030 136,085,433 127,615,433

                 
2. Energy
Infrastructure &
ICT TOTAL 1,500,950,339 1,571,845,373 1,165,845,373 1,729,029,910 1,544,229,910 1,901,932,901 1,698,652,90
Min. of Roads
Public works and Rec.
Transport Gross 685,634,495 674,997,945 366,997,945 742,497,739 742,497,740 816,747,513 816,747,513

  Dev 619,250,000 681,175,000 730,175,000 749,292,500 638,192,500 824,221,750 702,011,750

            -  

29
Min. of ICT and Rec.
E-government Gross 25,962,054 28,558,259 23,558,259 31,414,085 31,414,085 34,555,494 34,555,493

  Dev 170,103,790 187,114,169 45,114,169 205,825,586 132,125,586 226,408,144 145,338,144

                 
3. General
Economic and
Commercial
Affairs TOTAL 526,779,966 579,457,963 472,457,963 637,403,759 519,703,759 701,144,135 571,674,135
Min. of Trade
Tourism and Rec.
industarialization Gross 156,779,966 172,457,963 145,457,963 189,703,759 189,703,759 208,674,135 208,674,135

  Dev 370,000,000 407,000,000 230,000,000 447,700,000 330,000,000 492,470,000 363,000,000

                 

4. Health TOTAL 2,542,684,821 3,542,684,821 3,507,684,821 3,896,953,303 3,632,953,303 4,286,648,633 3,996,248,63

Rec.
Health Gross 2,147,577,621 2,997,577,621 3,034,577,621 3,297,335,383 3,088,335,383 3,627,068,921 3,397,168,921

  Dev 395,107,200 545,107,200 473,107,200 599,617,920 544,617,920 659,579,712 599,079,712

                 

5.Education TOTAL 726,284,677 798,913,145 601,913,145 878,804,459 826,004,460 966,684,905 908,604,905

Min. of
Education Youth Rec.
Sport & Gender Gross 416,564,677 458,221,145 361,221,145 504,043,259 495,243,260 554,447,585 544,767,585

  Dev 309,720,000 340,692,000 240,692,000 374,761,200 330,761,200 412,237,320 363,837,320

 

               
6.Administration
& International
Relation TOTAL 3,748,774,443 4,113,651,888 3,176,835,180 4,508,717,077 4,157,818,698 4,946,588,785 4,573,600,56
Office of The
Governor &
Deputy Rec.
Governor Gross 473,155,485 520,471,034 214,909,155 572,518,137 268,300,071 629,769,952 295,130,078

  Dev 70,000,000 77,000,000 50,000,000 84,700,000 66,000,000 93,170,000 72,600,000

  - - - - - - - -
Rec.
County Treasury Gross 888,119,174 979,931,091 666,119,174 1,074,624,201 968,131,091 1,182,086,621 1,064,944,201

  Dev 363,597,137 399,956,851 349,956,851 439,952,536 439,952,536 483,947,789 483,947,790

County Public Rec.
Service Board Gross     73,500,000   187,000,000   205,700,000

  Dev     6,500,000   11,000,000   12,100,000

County Assembly Rec.
Service Board Gross 849,547,831 934,502,614 950,000,000 1,027,952,876 990,000,000 1,130,748,163 1,089,000,000

  Dev 130,000,000 130,000,000 300,000,000 130,000,000 132,000,000 130,000,000 145,200,000

Min. of Public Rec.
Service Gross 867,504,816 954,255,298 1,049,680,827 990,000,000 1,154,648,910 1,089,000,000
562,000,000

30
Management

  Dev 106,850,000 117,535,000 83,850,000 129,288,500 105,435,000 142,217,350 115,978,500

                 
7. Env.
Protection
Water & Natural
Resources TOTAL 337,440,817 371,184,899 284,184,899 408,303,389 408,303,389 449,133,727 449,133,728
Min. of Env.
water and
natural Rec.
resources Gross 112,240,817 123,464,899 133,464,899 135,811,389 135,811,389 149,392,527 149,392,528

  Dev 225,200,000 247,720,000 150,720,000 272,492,000 272,492,000 299,741,200 299,741,200

11,857,621,51 10,021,804,81 13,027,083,67 11,818,185,29 14,316,792,03

TOTAL TOTAL 10,038,050,803 9 1 0 2 6 13,000,003,8
Rec.
  Gross 7,080,279,676 8,416,153,999 7,015,022,291 9,254,469,398 8,528,324,520 10,179,916,338 9,381,156,97

  Dev 2,957,771,127 3,441,467,520 3,006,782,520 3,772,614,272 3,289,860,772 4,136,875,698 3,618,846,84

MEDUIM TERM SECTOR ANNUAL PERCENTAGE CHANGE

MEDIUM TERM APPROVED CBROP CFSP CBROP CFSP
SECTOR CEILINGS   2013/14 2014/15 2014/15 2015/16 2015/16 CFSP2016/17 CFSP2016/17

COUNTY SECTORS                
1. Agriculture and
Urban Development TOTAL 8.8 8.4 8.7 9.2 10.6 10.2 0.0
Agriculture livestock Rec.
and fisheries Gross 3.1 4.1 4.1 4.5 4.5 5.0 5.0

  Dev 1.0 1.9 1.7 2.1 1.8 2.4 2.0

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

Land Physical
Planning and Rec.
Housing Gross 1.4 1.6 1.6 1.8 1.8 1.9 1.9

  Dev 1.0 1.1 1.1 1.2 1.2 1.4 1.3

31
    0.0 0.0 0.0 0.0 0.0 0.0 0.0
2. Energy
Infrastructure & ICT TOTAL 15.0 15.7 11.0 17.2 15.4 18.9 16.9
Min. of Roads Public Rec.
works and Transport Gross 6.8 6.7 6.7 7.4 7.4 8.1 8.1

  Dev 6.2 6.8 5.8 7.5 6.4 8.2 7.0

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

Min. of ICT and E- Rec.
government Gross 0.3 0.3 0.3 0.3 0.3 0.3 0.3

  Dev 1.7 1.9 1.2 2.1 1.3 2.3 1.4

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

3. General Economic
and Commercial
Affairs TOTAL 5.2 5.8 3.7 6.3 5.2 7.0 5.7
Min. of Trade
Tourism and Rec.
industarialization Gross 1.6 1.7 1.7 1.9 1.9 2.1 2.1

  Dev 3.7 4.1 3.0 4.5 3.3 4.9 3.6

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

4. Health TOTAL 25.3 35.3 34.8 38.8 36.2 42.7 39.8

Rec.
Health Gross 21.4 29.9 28.0 32.8 30.8 36.1 33.8

  Dev 3.9 5.4 4.9 6.0 5.4 6.6 6.0

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

5.Education TOTAL 7.2 8.0 6.0 8.8 8.2 9.6 9.1

Min. of Education
Youth Sport & Rec.
Gender Gross 4.1 4.6 4.5 5.0 4.9 5.5 5.4

  Dev 3.1 3.4 3.0 3.7 3.3 4.1 3.6

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

6.Administration &
International
Relation TOTAL 37.3 41.0 31.7 44.9 41.4 49.3 45.6
Office of The
Governor & Deputy Rec.
Governor Gross 4.7 5.2 2.4 5.7 2.7 6.3 2.9

  Dev 0.7 0.8 0.6 0.8 0.7 0.9 0.7

  - 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Rec.
County Treasury Gross 8.8 9.8 8.8 10.7 9.6 11.8 10.6

  Dev 3.6 4.0 4.0 4.4 4.4 4.8 4.8

County Public Rec.
Service Board Gross 0.0 0.0 1.7 0.0 1.9 0.0 2.0

  Dev 0.0 0.0 0.1 0.0 0.1 0.0 0.1

County Assembly Rec.
Service Board Gross 8.5 9.3 12.0 10.2 9.9 11.3 10.8

  Dev 1.3 1.3 1.2 1.3 1.3 1.3 1.4

Min. of Public Rec.
Service Management Gross 8.6 9.5 9.0 10.5 9.9 11.5 10.8
32
  Dev 1.1 1.2 1.0 1.3 1.1 1.4 1.2

    0.0 0.0 0.0 0.0 0.0 0.0 0.0

7. Env. Protection
Water & Natural
Resources TOTAL 3.4 3.7 2.84 4.1 4.1 4.5 4.5
Min. of Env. water
and natural Rec.
resources Gross 1.1 1.2 1.2 1.4 1.4 1.5 1.5

  Dev 2.2 2.5 2.5 2.7 2.7 3.0 3.0

TOTAL TOTAL 100.0 118.1 10.03 129.8 117.7 142.6 129.5

Baseline ceilings
The sector ceilings on the onset will form the indicative baseline sector ceilings for the
next budget of 2014/15. However, following the gazettement of more devolved
functions by legal notice 16 and the updated legal notice 157 of 2013 these sector
ceilings have been modified. The baseline estimates reflects the current ministerial
spending levels in sector programmes.In the recurrent expenditure category,non –
discretionary expenditures takes first charge. Compensation of employees for county
line minstries account for 41% of projected revenue while compensation for county
assembly members and staff account for 3%. The total projected expenditure for
existing employee compensation amount to 44% of revenue.

Development expenditures are undertaken on the basis of county intergrated

development plan as well as strategic priorities in the budget policy statement to foster
economic growth. The Proposed capital projects will have to be evaluated in the context
of the following elements:
(a) Priority for financing projects should be given to those projects that are in full
compliance with the County Government regulations and priorities as outlined in the
County intergrated development plan and which are fully justified for financing.
(b) Community need identified through citizens fora
(c) Department/Agencies should indicate how their proposed projects
will contribute to economic growth, job creation and increased citizen’s welfare

33
Details of Sector Priorities

The medium term expenditure framework for 2014/15–2016/17 ensures continuity in

resource allocation based on prioritized programmes aligned to the County integrated
development plan and strategic policy initiatives of the county Administration to
accelerate growth, employment creation and poverty reduction.The recent
achievements and key priority targets foreach sector are based on the reports from the
County Sector Working Groups(CSWG).

Agriculture,Rural &Urban Development Sector(ARUD)

This Sector comprises of two sub-sectors, namely; Agriculture, Livestock and

Fisheries; Land, physical planning and Housing.

The Sector goal in line with the Vision 2030 is to attain food security, sustainable land
management, and development of affordable housing and urban infrastructure. The
Constitution, under Article 43 on the Bills of Rights, has provided for accessibility of
adequate food of acceptable quality and accessible and adequate housing. In terms of
its contribution to GDP, ARUD sector directly contributes 24.5 percent of the GDP
valued at KShs 741billion. The sectoral so contributes approximately 27 percent to
GDP through linkages with manufacturing, distribution and other service related
sectors. It further accounts for about 65 percent of Kenya’s total exports, 18 percent
and 60 percent of the formal and total employment respectively. ARUD sector has
been identified as one of the six sectors aimed at delivering the 10 percent economic
growth rate under the Vision 2030.

The key challenges facing the sector include unfavourable climatic changes, poor
planning and inadequate warning systems, low production and productivity, poor
marketing and marketing infrastructure, low value addition and competitiveness,
inadequate physical infrastructure, unfavourable legal and policy frameworks, and
low access to financial services as well as affordable credit.
Over the 2014 MTEF, the sector aims to address the above challenges by raising
agricultural productivity through value addition and adoption of new technologies;
creating and enabling policy and legal framework, improving efficiency and

34
effectiveness of sector institutions; effective administration and management of
landresource; enhancing Infrastructure connectivity and accessibility through
rehabilitating and upgrading strategic rural roads; rehabilitation of existing housing
estates,and sustainable management of resources in the sector.

During the 2014/15-2016/17 MTEF period, revival of agricultural industries

including pyrethrum, potato cooling plant, value addition and product diversification
of farm, livestock and fisheries products, fisheries development and management
through expansion of fisheries , land reforms establishment of Countys patial data
infrastructure, development of affordable and quality houses for lower income
Kenyans, installation of physical and social infrastructure in slums and informal
settlements in urban areas and development of social and physical urban
infrastructural facilities.

To under take these programmes, the 2014/15–2016/17MTEF estimates for the sector
are estimated to be KSh.2.5 billion.For the FY2014/15,KSh 877 million has been set
aside for the sector.This is projected to increase toKSh.927 million and KSh1 billion
respectively, for the FY2015/16 and FY 2016/17.

Energy,Infrastructure & ICT Sector (EII)

The Energy, Infrastructure and Information Communications Technology Sector

consists of the subsectors of Roads, public works and Transport and Information and
Communications Technology and E-government. The Sector aspires to be a provider
of cost-effective public utility infrastructure facilities and services’ in the areas of
transport and ICT that meet National standards. Key achievements during 2013/14
period include improved infrastructure and in particular construction of bridges
across the entire country; periodic road maintenance.

The strategies and measures to be pursued in the medium term include; strengthening
the institutional framework for infrastructure development, raising the efficiency and
quality of infrastructure as well as increasing the pace of infrastructure projects so
that they are completed as envisaged. Other measures include encouraging Private
Sector participation in the provision of infrastructure services through the Public-

35
Private-Partnerships (PPPs) framework.

Funding over the 2014/15MTEF period will facilitate the implementation and
fasttracking of programmes under the Information and Communication Services;
Road Transport; Rural Electrification; ICT Infrastructure Development; Renewable
Energy Resources i.e solar driven streetlighting.

Total MTEF estimates for the sector is KSh.4.6 billion of which KSh.1.1 Billion has
been set aside for the FY2014/15. This represents a 5 % decrease from
KSh.1.5billion allocated in the FY2013/14. KSh. 1.56 billion and KSh. 1.7 billion
have been allocated to the FY2015/16 and FY2016/17 respectively. Functions such
as feeder roads maintenance, streetlighting, traffic and parking, public road transport,
and housing have been devolved to the county government.

General Economic and Commercial Affairs (GECA)

177.The General Economic and Commercial Affairs (GECA) Sector comprises one
SubSector namely: Trade , Tourism; and Industrialization. The Sector plays a
significant role towards achievement of the Vision 2030 and Millennium
Development Goals (MDGs) through trade, tourism and investments to enhance
economic growth.

The sector contributes significantly to the overall national development agenda

accounting for about 33 percent of the overall GDP. It is a major source of county
government revenue in form of, license fees, entry fees,among others.

The sector also undertakes reviving dormant cooperatives and registration of new
cooperatives. Tourism earnings increased from Ksh.73.7billion in 2010 to
Kshs.96billion in 2012; and visit or arrivals grew from 1.6 million in 2010 to 1.7
million in 2012.

Despite impressive performance over the recent past, the sector still faces a number
of challenges ranging from in adequate trading space for informal traders and

36
hawkers, limited access to credit by businesses, high cost of production, influx of
sub-standard, counterfeits and contra-band goods, and low technology, innovation,
research and development.

Over the medium term, the sector will implement programmes aimed at promoting
growth and development of commerce; tourism promotion and development; savings
and investment mobilization; employment creation; and industrial and entrepreneurship
development.
The key outcomes expected from the sector are: increased contribution of industry to
GDP; increased contribution of cooperatives to the economy; increased contribution
of domestic trade and tourism to GDP; increase in export earnings; and effective and
efficient service delivery. The total MTEF estimate for the sector is KSh 1.4 billion.
For the FY2014/15, KSh 375 million has been set aside. This is projected to increase
to KSh 519 million and KSh 571 million in 2015/16 and 2016/17 respectively.

Health Sector

The Health Sector comprises of the Ministry of Health including the PGH, All
subcounty health facilities, dispensaries and health centres. The Medium Term
Expenditure Framework (MTEF) for the period 2014/15-2016/17 for the Sector is
guided by the Second Medium Term Plan of Vision 2030, the Kenya Health Policy
2012-2030, the health Sector Strategic Plan and the Constitution of Kenya.

The sector mandate is to promote and participate in the provision of integrated and
high quality curative, preventive and rehabilitative services that is equitable,
responsive, accessible and accountable to Kenyans. The key achievements for the
sector include reduction of under-5 year old mortality from 115 per 1,000 livebirths
in 2003 to 74 per 1,000 livebirths in 2008/9 and infant mortality from 77 per 1000
livebirths to 52 per 1000 livebirths over the same horizon. The sector has also seen
increased immunization coverage for under -1year old from 71% in 2008 to 77% in
2011.

The sector faces numerous challenges, which include inadequate infrastructure for
service delivery, shortage of qualified health personnel, and ontime delivery of
medicines and medicalsupplies. Maternal mortality ratio has deteriorated from 414 in
2003 to 488 deaths per 100,000 livebirths in 2008-09 and births attended by skilled
37
healthpersonnel declined from 51percent in 2007 to 43 percent in 2010/11, despite
considerable funding flowing to the programmes.

In the medium term, the sector will seek to address these challenges through
continued investment in training of health professionals, medicalservices, health, and
sanitation infrastructure and improvement in the working conditions of medical
practitioners. The resources required under the Health Sector are captured under four
programmes and guided by the sector policy commitments and the core mandates of
the sub-sectors.

The resources being requested will be used to implement projects aimed at achieving
accessibility, affordability of health services, reduction of health inequalities and
optimal utilization of healthservices. These resources will, therefore, target to
improve access, quality and equity in the provision of health services. The 2014/15–
2016/17MTEF estimates for the sector is KSh.10.9 billion, of which KSh3.5 billion
has been set aside for the FY2014/15, representing a 4.7% increase from the
FY2013/14. This is projected to increase to KSh 3.6 billion and KSh.3.9 billion in
2015/16 and 2016/17 respectively.

County Health Services will focus on County Health Facilities and Pharmacies,
Ambulance Services; Promotion of Primary Health Care; licensing and control of
selling of food in public places; veterinary services, cemeteries, funeral parlours and
crematorium; referral removal; refuse dumps and solid waste. This scenario will need
concerted efforts in restructuring human resource management, infrastructure
development and maintenance, health financing, donor funding and partnerships,
among others. Consequently relevant health sector laws, legislations, policies and
regulation will be formulated to guide the devolved health services and programme
implementation.

Public Administration and National Relations

The sector plays a key role in enhancing public service delivery, organization and
coordination of County Government business through planning, mobilization of
financial and human resources in the public sector. In addition, the sector links all
other sectors with the rest of the country on matters of cooperation and resource
mobilization. The Office of the governor and deputy governor , public service
38
management, County public service board, county treasury are some of the offices
and independent departments within the sector.

Funding over the 2014MTEF period will enable the sector to oversee the
implementation of the County government act and the Constitution; provide
leadership and policy direction in the governance of the county; coordinate and
supervise county government affairs; promote sound public financial and economic
management for socioeconomic development; articulate and implement County
policy fornational development; promote macro economic stability, mainstream
MDGs into the County policy, planning and budgetary process, implementation,
monitoring and evaluation; promote efficient and effective human resource
management and development for improved county public service delivery; and
promote county public service integrity.

The total MTEF estimates for the sector is Ksh. 8 billion. For the FY2014/15,
KSh.3.1 billion has been set aside to fund the programmes of this sector. This is
projected to increase to Ksh. 3 billion and Ksh. 3.1 billion in the FY2015/16 and
FY2016/17 respectively.

County assembly
This sector proposal includes the MTEF expenditure limits for the county legislative
arm that is expected to be submitted directly to the County Assembly in line with the
Constitution. County assembly plays a crucial role in strengthening the democratic
space and good governance in the County. Under the Constitution, legislative arm
consists of the County assembly The expected increase in allocation is to cater for the
increased emoluments for members of County assembly and additional physical
facilities / infrastructure.For the FY2014/15, KSh.1.25 billion has been set aside, Ksh
1.1 billion and Ksh 1.3 billion in FY 2015/16 AND FY 2016/17 respectively

Education social protection youth culture and recreation

Education
Assigned functions to the counties under this sector are limited, mainly to cater for pre-
primaryeducation, village polytechnics, homecraft centres and children facilities

39
Social Protection,Culture and Recreation

The Social Protection, Culture and Recreation Sector comprise of two Sub-Sectors
namely; the Social Security and Services; and the Sports, Culture and the Arts. The
sector is mandated to address issues on promotion of harmonious, safety and health at
workplaces, employment promotion, social security and children welfare and social
development. The sector is also mandated to address issues relating to promotion and
exploitation of County’s diverse culture for peaceful co-existence, enhancing Kenya’s
reading culture through expansion of library network for increased information
access, development and promotion of sports for a vibrant sporting industry,
promotion and preservation of county’s heritage for national pride and harmony;
promotion of cultural and sports tourism; and development, regulation and promotion
of the creative arts industry.

The sector achievements in the -2013/14 period include: Community mobilization,

social development and welfare; Social infrastructure development; early childhood
development infrastructure and community support services;rehabilitation of public
amenties including Afraha stadium which hosted the Council for east and central
Africa(CECAFA) senior challange cup; maintenance of county parks and Public
library services..

Funding for the 2014/15-2016/17MTEF period will continue to focus on the delivery
of the sector priorities and in particular those aimed at improving livelihood of
vulnerable groups specifically the orphans and vulnerable children, the elderly,and
persons with disability through County Programmes that will integrate the various
cash donations.The county in the medium term intend to build more stadia with main
focus being putting and rehabilitating facilties in Nakuru, Naivasha,Gilgil and Molo
Towns

Total funding level for the MTEF period is KSh.2.3 billion .For FY 2014/15, KSh
601 million has been set aside,This is projected to increase to KSh.826 million and
KShs.908 million for the FY2014/15 and FY2016/17 respectively.

Environmental Protection, Water, and Natural Resources

40
The sector is composed of one sub-sectors, namely; Environment, Water and Natural
Resources . The mandate of the Sector includes; Environmental policy management,
forest resources management, water resources management and sewerage services
policy. It also includes conservation and protection of water ells and springs . The
sub-sector is also mandated with management of health conditions and health and
safety in mines, resources surveys, and policy formulation on extractive industry.

The sector plays a key role in ensuring that every county resident has access to
portable water in a clean and secure environment. Over the MTEF period the sector
aims to achieve expansion of water coverage and sewerage facilities; scaling up
water storage to improve water security; conservation and management of catchment
areas; mitigation and adaptation measures on climate change; enforcement of sector
laws and regulations; restoration of rivers and water springs;

The 2014/15 MTEF estimates of KSh 1.08 billion has been allocated to the sector.
For the FY 2014/15, KSh.284 million has been set aside. KSh.408 million and KSh.
449 million in the FY2015/16 and 2016/17 respectively.

41
VI. CONCLUSION AND NEXT STEPS
The set of policies outlined in this CFSP reflect the changed circumstances and are
broadly in line with the County intergrated development planand the fiscal
responsibility principles outlined in the PFM law. They are also consistent with the
national strategic objectives pursued by the County Government as a basis of allocation
of public resources. Details of the strategic objectives are provided in the first County
intergrated development plan. . The policies and sector ceilings annexed herewith will
guide the County sector working groups and line ministries in preparation of the
2014/15 budget.

As budgetary resources are finite,it is critical that CSWGs and Ministries prioritize their
programmes within the available ceilings to ensure that use of public funds are in line
with county government priorities. There is also need to ensure that currents resources
are being utilised efficiently and effectively before funding is considered for
programmes. CSWGs needs to carefully consider detailed costing of projects, strategic
significance, deliverables(output and outcomes), alternative interventions, and
administration and implementation plans in allocation resorces.

Implementing these policies with Budget 2014/15 are critical steps towards more
inclusive sustainablegrowth. Inclusive sustainable growth calls for greater cooperation
and alignment between labour,business, County government, civil society, communities
and our development partners to get things done. Thi smeans hearing each other out,
finding solutions, encouraging innovation, building a sustainable County.

Reflecting the above medium-term expenditure framework, the table below provides the
tentative projected baseline ceilings for the 2013 MTEF, classified by sector. The sector
ceilings include sub county fund.

42
 ANNEX TABLE 1 : COUNTY GOVERNMENT OF NAKRU OPERATIONS 2014/15-2016/17
2013/14 2014/15 2014/15 2015/16 2015/16 2016/17 CBROP
REVENUE APPROVED
ITEMS CBROP CFSP CBROP CFSP
BUDGET

Land rates
910,000,000 1,001,000,000 730,710,000 803,781,000 803,781,000 884,159,100
Plot rent
210,000,000 231,000,000 164,010,000 180,411,000 180,411,000 198,452,100
Single business
permit 300,000,000 330,000,000 254,300,000 279,730,000 279,730,000 307,703,000

Market fee
170,000,000 187,000,000 132,770,000 146,047,000 146,047,000 160,651,700

Building approval
85,000,000 93,500,000 66,385,000 73,023,500 73,023,500 80,325,850
Cess
100,000,000 110,000,000 78,100,000 85,910,000 85,910,000 94,501,000
Royalties
120,000,000 132,000,000 93,720,000 103,092,000 103,092,000 113,401,200
Stock/Slaughter
fees 16,547,812 18,202,593 12,923,841 14,216,225 14,216,225 15,637,848
House rent
50,000,000 55,000,000 39,050,000 42,955,000 42,955,000 47,250,500
Advertising
85,000,000 93,500,000 66,385,000 73,023,500 73,023,500 80,325,850
Parking fees
235,000,000 258,500,000 203,875,000 224,262,500 224,262,500 246,688,750
Liquor licensing
30,000,000 33,000,000 23,430,000 25,773,000 25,773,000 28,350,300
County park fees
25,000,000 27,500,000 19,525,000 21,477,500 21,477,500 23,625,250
water and
sewerage 5,000,000 5,500,000 3,905,000 4,295,500 4,295,500 4,725,050
Other fee and
charges 213,190,461 234,509,507 166,501,750 183,151,925 183,151,925 201,467,118
  2,554,738,273 2,810,212,100 2,055,590,591 2,261,149,650 2,261,149,650 2,487,264,615
FIF
522,000,000 574,200,000 540,000,000 631,620,000 594,000,000 694,782,000
Loans and grants
CRA     138,214,518   152,035,970  
Rural
electrification
CRA     228,516,827   251,368,510  
Conditional
C.R.A 600,436,911 660,480,602 620,000,000 726,528,662 682,000,000 799,181,529
C.R.A equiatble
share 6,360,875,619 6,996,963,181 6,290,337,606 7,696,659,499 6,919,371,367 8,466,325,449
TOTAL
12,592,789,076 13,852,067,984 9,872,659,542 15,237,274,782 10,859,925,496 16,761,002,260
EXPENDITURE
        -  
Recurrent
expenditure         -  
Salaries and
benefits 3,357,663,211 3,525,546,372 4,639,579,152 3,701,823,690 4,840,000,000 3,886,914,875
Operations
2,885,404,204 3,173,944,624 2,175,943,142 3,491,339,087 3,173,944,624 3,840,472,996
Other current
expenditures 637,618,087 701,379,896 200,000,000 771,517,885 701,379,896 848,669,674
Domestic interest
        -  
Development
        -  
Domestically 3,684,664,847 2,781,660,773
2,786,135,990 3,204,056,389 2,616,325669 4,237,364,574
43
financed
Foreign financed
0       -  
Capital transfers
        -  

Contingencies
50,000,000 75,000,000 40,000,000 112,500,000 55,000,000 168,750,000
Renewals fund
20,335,400 30,503,100 - 45,754,650 24,200,000 68,631,975

Debt repayment
300,893,911 451,340,867 349,956,851 252,242,323 440,000,000  
Balance
2,554,738,273 2,690,296,737 (149,145,269) 3,177,432,300 (1,156,259,796) 3,710,198,167
Financing
        -  
Net foreign
0       -  
Domestic
borrowing 0       -  
Repayment due
583,667,826 132,326,959.50 183,667,826.00 - - 0
Financing Gap
        -  
Memo items
        -  
Domestic debt
583,667,826 252,242,323 (332,813.095) - (1,156,259,796) 0
NOTE CBROP- County Budget Review Outlook Paper

44
ANNEX TABLE 2: MEDIUM TERM EXPENDITURE FRAMEWORK SECTOR CEILING
2014/15-2016/17
MEDIUM TERM
SECTOR APPROVED CBROP CBROP
CEILINGS   2013/14 2014/15 CFSP 2014/15 2015/16 CFSP 2015/16 CFSP2016/17 CFSP2016/17
COUNTY
SECTORS                
1. Agriculture
and Urban
Development                
Agriculture
livestock and Rec.
fisheries Gross 311,958,839 411,958,839 411,958,839 453,154,723 453,154,723 498,470,195 498,470,195

  Dev 95,700,000 195,700,000 165,700,000 215,270,000 182,270,000 236,797,000 200,497,000

            -   -
Land Physical
Planning and Rec.
Housing Gross 145,233,901 159,757,291 159,757,291 175,733,020 175,733,020 193,306,322 193,306,322

  Dev 102,243,000 112,467,300 105,467,300 123,714,030 116,014,030 136,085,433 127,615,433

                 
2. Energy
Infrastructure &
ICT           -   -
Min. of Roads
Public works and Rec.
Transport Gross 685,634,495 674,997,945 674,997,945 742,497,739 742,497,740 816,747,513 816,747,513

  Dev 619,250,000 681,175,000 580,175,000 749,292,500 638,192,500 824,221,750 702,011,750

            -   -
Min. of ICT and Rec.
E-government Gross 25,962,054 28,558,259 28,558,259 31,414,085 31,414,085 34,555,494 34,555,493

  Dev 170,103,790 187,114,169 120,114,169 205,825,586 132,125,586 226,408,144 145,338,144

3. General
Economic and
Commercial
Affairs           -   -
Min. of Trade
Tourism and Rec.
industarialization Gross 156,779,966 172,457,963 172,457,963 189,703,759 189,703,759 208,674,135 208,674,135

  Dev 370,000,000 407,000,000 300,000,000 447,700,000 330,000,000 492,470,000 363,000,000

            -   -
Rec.
4. Health Gross 2,147,577,621 2,997,577,621 2,807,577,621 3,297,335,383 3,088,335,383 3,627,068,921 3,397,168,921

  Dev 395,107,200 545,107,200 495,107,200 599,617,920 544,617,920 659,579,712 599,079,712

5.Education           -   -
Min. of
Education Youth Rec.
Sport & Gender Gross 416,564,677 458,221,145 450,221,145 504,043,259 495,243,260 554,447,585 544,767,585

  Dev 309,720,000 340,692,000 300,692,000 374,761,200 330,761,200 412,237,320 363,837,320

6.Administration
& International
Relation           -   -
Office of The
Governor &
Deputy Rec.
Governor Gross 473,155,485 520,471,034 413,909,155 572,518,137 455,300,071 629,769,951 500,830,078

  Dev 70,000,000 77,000,000 70,000,000 84,700,000 77,000,000 93,170,000 84,700,000

            -   -

45
 Rec.
County Treasury Gross 888,119,174 979,931,091 880,119,174 1,074,624,201 968,131,091 1,182,086,621 1,064,944,201

  Dev 363,597,137 399,956,851 399,956,851 439,952,536 439,952,536 483,947,789 483,947,790

County Public Rec.
Service Board Gross         -   -

  Dev         -   -
County Assembly Rec.
Service Board Gross 849,547,831 934,502,614 900,000,000 1,027,952,876 990,000,000 1,130,748,163 1,089,000,000

  Dev 130,000,000 130,000,000 120,000,000 130,000,000 132,000,000 130,000,000 145,200,000

Min. of Public
Service Rec.
Management Gross 867,504,816 954,255,298 900,000,000 1,049,680,827 990,000,000 1,154,648,910 1,089,000,000

Dev 106,850,000 117,535,000 95,850,000 129,288,500 105,435,000 142,217,350 115,978,500

7. Env.
Protection
Water & Natural
Resources
Min. of Env.
water and
natural Rec.
resources Gross 112,240,817 123,464,899 123,464,899 135,811,389 135,811,389 149,392,527 149,392,528

Dev 225,200,000 247,720,000 247,720,000 272,492,000 272,492,000 299,741,200 299,741,200

10,038,050,80 11,857,621,51 10,923,804,81 13,027,083,67 12,016,185,29 14,316,792,03

TOTAL TOTAL 3 9 1 0 2 5 13,217,803,82
Rec.
Gross 7,080,279,676 8,416,153,999 7,923,022,291 9,254,469,398 8,715,324,520 10,179,916,337 9,586,856,972

Dev 2,957,771,127 3,441,467,520 3,000,782,520 3,772,614,272 3,300,860,772 4,136,875,698 3,630,946,849

46
 ANNEX TABLE 3: RECURRENT SECTOR CEILINGS 2014/2015-2016/2017
RECURRENT APPROVED CBROP CFSP CBROP CFSP CBROP2016/ CFSP2016/1
EXPENDITURE   2013/14 2014/15 2014/15 2015/16 2015/16 17 7
COUNTY SECTORS                
1. Agriculture and
Urban Development                
Rec.
Agriculture livestock Gros
and fisheries s 311,958,839 411,958,839 368,958,839 453,154,723 453,154,723 498,470,195 498,470,195

  CRA 273,014,818 343,014,818 175,016,872 377,316,300 377,316,300 415,047,930 415,047,930

  LR 38,944,021 68,944,021 193,941,967 75,838,423 75,838,423 83,422,265 83,422,265

Rec.
Land Physical Planning Gros
and Housing s 145,233,901 159,757,291 144,757,292 175,733,020 175,733,020 193,306,322 193,306,322
  CRA              

  LR 65,920,212 72,512,233 144,757,292 79,763,457 175,733,020 87,739,802 193,306,322

2. Energy
Infrastructure & ICT           -   -
Rec.
Min. of Roads Public Gros
works and Transport s 685,634,495 674,997,945 336,997,945 742,497,739 742,497,740 816,747,513 816,747,513

  CRA 369,314,668 406,246,135 472,497,739 445,497,740 519,747,513 490,047,513

  LR 244,319,827 268,751,810 336,997,945 270,000,000 297,000,000 297,000,000 326,700,000

Rec.
Min. of ICT and E- Gros
government s 25,962,054 28,558,259 23,558,259 31,414,085 31,414,085 34,555,494 34,555,493

  CRA 25,962,054 28,558,259 23,558,259 31,414,085 31,414,085 34,555,495 34,555,493

3. General Economic
and Commercial
Affairs   - - - - - - -
Rec.
Min. of Trade Tourism Gros
and industarialization s 156,779,966 172,457,963 145,457,963 189,703,759 189,703,759 208,674,135 208,674,135

  CRA 8,418,534 9,260,387 - 10,186,426 - 11,205,069 -

  LR 148,361,432 163,197,575 145,457,963 179,517,333 189,703,759 197,469,066 208,674,135

Rec.
Gros 3,034,577,62 3,297,335,38 3,088,335,38 3,627,068,92 3,397,168,92
4. Health s 2,147,577,621 2,997,577,621 1 3 3 1 1

2,044,573,51 1,618,221,74 1,256,715,38 1,780,043,92 1,402,386,92

  CRA 871,110,678 1,471,110,678 3 6 3 0 1

1,049,883,93 1,200,000,00 1,154,872,33 1,300,000,00

  LR 754,439,943 954,439,943 450,004,108 7 0 1 0

  FIF 522,000,000 572,000,000 540,000,000 629,200,000 631,620,000 692,120,000 694,782,000

                 

5.Education           -   -
Rec.
Min. of Education Gros
Youth Sport & Gender s 416,564,677 458,221,145 361,221,145 504,043,259 495,243,260 554,447,585 544,767,585

  CRA 324,964,677 357,461,145 151,221,145 393,207,259 365,243,260 432,527,985 404,767,585

  LR 91,600,000 100,760,000 210,000,000 110,836,000 130,000,000 121,919,600 140,000,000

6.Administration &
International
Relation               -
47
Office of The Rec.
Governor & Deputy Gros
Governor s 473,155,485 520,471,034 214,909,155 572,518,137 455,300,071 629,769,951 500,830,078

  CRA 473,155,485 520,471,034 214,909,155 572,518,137 268,300,071 629,769,952 295,130,078

                 
Rec.
Gros 1,074,624,20 1,182,086,62 1,064,944,20
County Treasury s 888,119,174 979,931,091 666,119,174 1 968,131,091 1 1

  CRA 688,151,408 756,966,549 252,265,410 660,770,437 554,277,327 768,232,857 651,090,437

  LR 199,967,766 219,964,543 413,853,764 413,853,764 413,853,764 413,853,764 413,853,764

                 
Rec.
County Public Service Gros
Board s     73,500,000   187,000,000   205,700,000

  CRA     73,500,000   187,000,000   205,700,000

Rec.
County Assembly Gros 1,027,952,87 1,130,748,16 1,089,000,00
Service Board s 849,547,831 934,502,614 950,000,000 6 990,000,000 3 0

1,027,952,87 1,130,748,16 1,089,000,00

  CRA 849,547,831 934,502,614 950,000,000 6 990,000,000 4 0
Rec.
Min. of Public Service Gros 1,049,680,82 1,154,648,91 1,089,000,00
Management s 867,504,816 954,255,298 562,000,000 7 990,000,000 0 0

1,016,836,55
  CRA 763,964,355 840,360,791 448,105,493 924,396,870 864,716,042 7 951,187,647

  LR 103,540,461 113,894,507 113,894,507 125,283,958 125,283,958 137,812,354 137,812,353

7. Env. Protection
Water & Natural
Resources           -   -
Rec.
Min. of Env. water and Gros
natural resources s 112,240,817 123,464,899 133,464,899 135,811,389 135,811,389 149,392,527 149,392,528

  CRA 69,801,685 76,781,854 86,781,854 84,460,039 84,460,039 93,906,043 93,906,043

  LR 5,439,132 5,983,045 46,683,045 51,351,350 51,351,350 55,486,484 55,486,485

                 
Rec.
Gros 7,015,522,29 9,254,469,39 8,715,324,52 10,179,916,3 9,586,856,97
  s 7,080,279,676 8,416,153,999 1 8 0 37 2

4,419,931,70 6,172,941,91 5,424,940,24 6,832,621,48 6,032,819,64

  CRA 4,717,406,193 5,744,734,264 0 4 6 5 7

2,055,590,59 2,356,328,22 2,658,764,27 2,549,575,66 2,859,255,32

  LR 1,652,532,794 1,968,447,677 1 2 4 6 5

  FIF 522,000,000 572,000,000 540,000,000 629,200,000 631,620,000 692,120,000 694,782,000

48
 ANNEX TABLE 4: DEVELOPMENT SECTOR CEILINGS 2014/2015-2016/2017

APPROVED
DEVELOPMENT EXPENDITURE   2013/14 CBROP 2014/15 CFSP 2014/15 CBROP 2015/16 CFSP 2015/16 CFSP2016/17 CFSP2016/17
COUNTY SECTORS                
1. Agriculture and Urban Development                

Agriculture livestock and fisheries Dev 95,700,000 195,700,000 200,700,000 215,270,000 182,270,000 236,797,000 200,497,000

CRA 68,000,000 118,000,000 200,700,000 129,800,000 118,422,571 142,780,000 130,264,828

LR 27,700,000 77,700,000 - 85,470,000 - 94,017,000 -

D.F       63,847,429   70,232,172

Land Physical Planning and Housing Dev 102,243,000 112,467,300 145,467,300 123,714,030 116,014,030 136,085,433 127,615,433
145,4
CRA 50,000,000 55,000,000 67,300 60,500,000 75,375,431 66,550,000 82,912,974

LR 52,234,000 57,467,300 - 63,214,030 - 69,535,433 -

DF       40,638,599   44,702,459

2. Energy Infrastructure & ICT           -   -

Min. of Roads Public works and Transport Dev 619,250,000 681,175,000 730,175,000 749,292,500 638,192,500 824,221,750 702,011,750

CRA 436,233,651 479,857,016 359,029,731 527,842,718 414,639,803 580,626,989 456,103,783

CCRA 255,016,349 280,517,984 228,000,000 308,569,782 - 339,426,760 -

DF     149,145,269   223,552,698   245,907,967

Min. of ICT and E-government Dev 170,103,790 187,114,169 45,114,169 205,825,586 132,125,586 226,408,144 145,338,144

CRA 150,000,000 165,000,000 45,114,169 181,500,000 85,843,263 199,650,000 94,427,589

LR 20,103,790 22,114,169 - 24,325,586 - 26,758,144 -

DF       46,282,323   50,910,555
3. General Economic and Commercial Affairs             -

49
 -

Min. of Trade Tourism and industarialization Dev 370,000,000 407,000,000 230,000,000 447,700,000 330,000,000 492,470,000 363,000,000

CRA 180,000,000 198,000,000 230,000,000 217,800,000 214,404,172 239,580,000 235,844,590

LR 190,000,000 209,000,000 - 229,900,000 - 252,890,000 -

DF       115,595,828   127,155,410

4. Health Dev 395,107,200 545,107,200 473,107,200 599,617,920 544,617,920 659,579,712 599,079,712

CRA 346,656,037 446,656,037 473,107,200 491,321,641 320,843,499 540,453,804 352,927,849

LR 48,451,163 98,451,163 - 108,296,279 - 119,125,907 -

DF       223,774,421   246,151,863

5.Education           -   -

Min. of Education Youth Sport & Gender Dev 309,720,000 340,692,000 240,692,000 374,761,200 330,761,200 412,237,320 363,837,320

CRA 94,307,800 103,738,580 240,692,000 114,112,438 214,898,731 125,523,681 236,388,604

LR 215,412,200 236,953,420 - 260,648,762 - 286,713,638 -

DF       115,862,469   127,448,716

6.Administration & International Relation           -   -

Office of The Governor & Deputy Governor Dev 70,000,000 77,000,000 50,000,000 84,700,000 77,000,000 93,170,000 84,700,000

CRA 70,000,000 77,000,000 84,700,000 39,027,640 93,170,000 42,930,404

LR     -   -   -
DF       26,972,360   29,669,596

County Treasury Dev 363,597,137 399,956,851 349,956,851 439,952,536 439,952,536 483,947,789 483,947,790

CRA 20,000,000 22,000,000 349,956,851 24,200,000 223,390,064 26,620,000 245,729,070

LR 343,597,137 377,956,851 - 415,752,536 - 457,327,789 -

DF       216,562,473   238,218,720

50
 County Public Service Board Dev     6,500,000   11,000,000   12,100,000
CRA     10,000,000   11,000,000   12,100,000

County Assembly Service Board Dev 130,000,000 130,000,000 300,000,000 130,000,000 132,000,000 130,000,000 145,200,000
300,000,00
CRA 130,000,000 130,000,000 0 130,000,000 85,761,669 130,000,000 94,337,836

LR     -   -   -
DF       46,238,331   50,862,164

Min. of Public Service Management Dev 106,850,000 117,535,000 83,850,000 129,288,500 105,435,000 142,217,350 115,978,500

CRA 24,000,000 26,400,000 83,850,000 29,040,000 68,502,133 31,944,000 75,352,346

LR 82,850,000 91,135,000 - 100,248,500 - 110,273,350 -

DF       36,932,867   40,626,154
7. Env. Protection Water & Natural
Resources           -   -

Min. of Env. water and natural resources Dev 225,200,000 247,720,000 150,720,000 272,492,000 272,492,000 299,741,200 299,741,200

CRA 125,200,000 137,720,000 150,720,000 151,492,000 272,492,000 166,641,200 299,741,200

LR 100,000,000 110,000,000   121,000,000   133,100,000 -

TOTAL TOTAL 2,957,771,127 3,441,467,520 3,006,282,520 3,772,614,272 3,300,860,772 4,136,875,698 3,630,946,849

CRA 1,694,397,488 1,959,371,633 2,857,137,251 2,142,308,797 2,144,600,976 2,343,539,674 2,359,061,074

LR              

DF 1,669,197,488 1,931,651,633 149,145,269 2,111,816,797 1,156,259,796 2,309,998,474 1,271,885,775

DF -Deficit financing
CRA- Commision on revenue allocation

51