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COUNTY GOVERNMENT OF TAITA TAVETA


The land of opportunities

MEDIUM TERM

COUNTY FISCAL STRATEGY PAPER

February 2016

© Taita Taveta County Fiscal Strategy Paper (CFSP) 2016

To obtain copies of the document, please contact:

Taita Taveta County Treasury

P. O. Box 1066 – 80304, Wundanyi, KENYA.

Tel: 0788 186 436/0718 988 717

The document is also available on the County Government website: www.taitataveta.go.ke

http://www.taitataveta.go.ke/


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FOREWORD One of the key stages in the County budget cycle is the preparation of the County Fiscal

Strategy Paper (CFSP). This is an annual paper that shows the various fiscal strategies the

county Government intends to employ to meet its overall objective of improving the

livelihoods of its citizens.

As a build-up on the County Budget Review and Outlook Paper (CBROP) 2015 which

analysed the performance in the 2014/2015 financial year’s budget, scanned the current

year’s fiscal environment and provided an outlook for the 2016/2017 and the medium

term, this CFSP shows the allocation of resources in all sectors and departments. Key

considerations in all the sectors are the priorities as put forth in the CIDP 2013-2017 and

the CADP for the 2016/17 FY.

The main sources of County revenue in the medium term will be equitable share from

National Government, local revenue collections and donor funding. In the 2016/17 FY and

the medium term, the County Government proposes a series of measures to increase

revenue and balance its fiscal spending The County will thus focus on strengthening the

potential it is endowed with to stimulate economic growth and development. The County

Government’s fiscal policies in 2016/2017 will focus on re-orientation of expenditure

from recurrent to development.

Experiences gained from the last 3 years, coupled with unfavourable local revenues figures

and relatively low equitable share have has made the county government and citizens

appreciated the significance of planning ,budgeting and implementation and aligning the

county plans to Kenya Vision 2030, the Medium term Plan (MTP II), MDGs succeeded by

the Sustainable Development Goals (SDGs) among others .The County government has also

found it prudent to appreciate the role of other players such as the national Government

,Donors, private investors both local and international.

This paper therefore puts into perspective how the County anticipates to expend its scarce

resources in the 2016/17 FY and the medium term.

Hon Dr Vincent Masawi

COUNTY EXECUTIVE COMMITTEE MEMBER-FINANCE AND PLANNING.


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ACKNOWLEDGEMENTS

This paper is a build-up of the County Budget Review and Outlook Paper (CBROP) 2015

and provides a fiscal framework for implementation of the 2016/2017 budget and

medium term. Preparation of the 2016 County Fiscal Strategy Paper (CFSP) has been a

collective effort of a team in the County Treasury who spent a considerable amount of time

putting it together. Special appreciation goes to the CECM for Finance and Planning Hon.

Dr Vincent Masawi and entire County Executive Committee for his leadership and

guidance.

The valuable inputs of non-state actors of County Budget and Economic Forum (CBEF) is

also highly appreciated.

We give gratitude to the County Finance and Planning core team lead by Benedict Mwabili,

County Director of Planning and Budgeting. The other members whose contribution in this

paper is immense include; Louise Mwanyalo Nyambu -Director Revenue Management,

Joyce Mwachia- Director Accounting Services, Renson Mambaria Deputy Director-

Revenue Management , Richard Mwarema-County Transition Coordinator and Benjamin

Odago- Senior Economist. The inputs of Budget Officers , Laban Mbelanga Kinyai and

Philip Mbogho, Babisho Abalon- Senior Librarian, Maria Mrunde-Clerical Officer ,Nathan

Mwawasi- Intern ,Dennis Mwakio and Katherine Ogola of CBEF secretariat are also

appreciated for their tireless efforts in coming up with this CFSP

I thank all County Chief Officers and the County Public Service Board for their technical

contribution and constant review of this document. We are grateful to all Sub-county and

Ward Administrators for coordinating public participation forums at ward levels.

Lastly is to express appreciation to Civil Society organizations, Local leaders public and

other stakeholders who took their time to participate in providing vital information in the

various meetings.

Bonaventure F. M. Mwakio

County Chief Officer, Finance and Planning


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Table of Contents

FOREWORD ............................................................................................................................................. 2

ACKNOWLEDGEMENTS ........................................................................................................................... 3

CHAPTER ONE: ENHANCING SOCIO -ECONOMIC GROWTH FOR COUNTY PROSPERITY ........................ 8

Sectoral Performance to address medium term County priorities .................................................... 8

Fiscal Performance for 2014/15 and 2015/16 .................................................................................. 13

Revenue Analysis .......................................................................................................................... 13

Expenditure Analysis .................................................................................................................... 14

CHAPTER TWO: RECENT ECONOMIC DEVELOPMENT AND POLICY OUTLOOK .............................. 16

National Economy ............................................................................................................................ 16

National economic development pillars in the Medium Term ......................................................... 16

County outlook for the Medium Term .............................................................................................. 17

CHAPTER THREE: FISCAL FRAMEWORK AND COUNTY STRATEGIC PRIORITIES FOR 2016/17 AND THE MEDIUM TERM 20

Overview of the 2014/15 and 2015/16 Budget Framework ............................................................. 20

2016/17 FISCAL FRAMEWORK .......................................................................................................... 20

Fiscal Policy ....................................................................................................................................... 20

Revenue Projections ......................................................................................................................... 20

Expenditure Projections .................................................................................................................... 21

County’s Strategic Priorities for 2016/17 and the medium term ..................................................... 22

Medium term expenditure estimates ............................................................................................... 22

Details of Departmental Priorities and Baseline Ceilings ................................................................. 23

Risk to implementation of priorities ................................................................................................. 28

Annex 1: Proposed medium term departmental baseline ceilings(County Executive Proposal) .... 29

Annex 2: Proposed medium term departmental baseline ceilings(County Assembly

Ammendments) ................................................................................................................................ 30

Annex 3: Revenue allocation to County Departments /Arms 2014/2015-2015/2016 ................ 31

Annex 4: Total Local revenue Performance and projections by Revenue Type and Month ............ 32

Annex 5: Summary of Views from ward meetings............................................................................ 35


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LIST OF ACRONYMS AND ABREVIATIONS

BPS Budget Policy Statement

CA County Assembly

CBEF County Budget and Economic Forum

CBROP County Budget Review and Outlook Paper

CFSP County Fiscal Strategy Paper

CIDP County Integrated Development Plan

CARB County Allocation of Revenue Bill

CG County Government

CRA Commission on Revenue Allocation

COB Controller of Budget

DORB Division of Revenue Bill

FY Financial year

LATF Local Authority Transfer Fund

PBB Programme Based Budgeting

PPP Public Private Partnership

PFMA Public Financial Management Act

RMFLF Roads Maintenance and Fuel Levy Fund

TA Transition Authority


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Legal Basis for the Publication of the County Fiscal Strategy Paper The County Fiscal Strategy Paper is published in accordance with section 117 of The Public Finance 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.

2. The County Treasury shall submit the approved County Fiscal Strategy Paper to the

county Assembly by the 28th February in each year.

3. The County Treasury shall align its County Fiscal Strategy Paper with the national

objectives in the Budget Policy Statement.

4. In preparing the County Fiscal 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.

5. 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.

6. In preparing the County Fiscal Strategy 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

7. 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

amendments.

8. The County Treasury shall publish and publicize the County Fiscal Strategy Paper within

seven days after it has been adopted by the county assembly.


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Fiscal Responsibility Principles in the Public Finance Management Law The public finance management (PFM) Act, 2012 sets out the following fiscal responsibility principles to ensure prudency ant transparency in the management of public resources; i. The county government’s recurrent expenditures shall not exceed the county’s

government total revenue.

ii. Over the medium term, a minimum of thirty percent of the county government budget

shall be allocated to the development expenditures.

iii. The county governments’ expenditures on wages and benefits for its public officers shall

not exceed a percentage of the county government’s total revenue as prescribed by the

executive member for finance in regulations and approved by county assembly.

iv. Over the medium term the government borrowing shall be used only for the purpose of

financing development expenditures and not recurrent expenditure

v. The county debt shall be maintained at sustainable level as approved by county assembly

vi. The fiscal risks shall be maintained prudently; and

vii. A reasonable degree of predictability with respect to the level of tax rates and tax bases

shall be maintained taking into account any reforms that may made in the future.


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CHAPTER ONE: ENHANCING SOCIO -ECONOMIC GROWTH FOR COUNTY

PROSPERITY

Overview This 2016 County Fiscal Strategy Paper (CFSP) is the third to be prepared under the Public

Financial Management Act, 2012 and the third in the Taita Taveta County Government. In

line with the law, this 2016 CFSP presents the fiscal objectives for the 2016/17 financial

year and medium term. It further highlights the broad strategic priorities and policy goals

that will guide the County government in preparing its 2016/17 budget and the medium

term.

Sectoral Performance to address medium term County priorities

In 2015 CFSP paper, the County Government identified 12 priority objectives areas to be

the basis of allocation county resources .These priority areas were:-

1. Environmental management and Increasing access to water for domestic, livestock and irrigation.

2. Ensuring food security and wealth creation through investing in value addition in agriculture, Livestock and fisheries Production.

3. Investing in quality, accessible and affordable health care services. 4. Ensuring quality education through development of ECDE and Library services 5. Empowerment of Youth, women, and vulnerable members of the community

through strengthening of the social safety net 6. Investing in physical infrastructure including ICT. 7. Promotion of tourism, trade and industry 8. Land planning ,management and promoting mining 9. Further decentralization for improved access and provision of services 10. Enactment of enabling institutions (Policies and legal framework)

The county Government has been allocating resources to support these priority areas

through county departments (Annex 3) resulting to implementation of various projects and

programmes analysed hereafter.

Priority area: Increasing access to water for domestic, livestock and irrigation

The water and irrigation sector has been identified by the county Government as key in the

realization of food security and improvement of social services like health and education.

The county has a total of 71,090 households, of which only 35% (24,882) have access to

piped water. Further, 41,390 households, 58% of the total households have access to

portable water. The number of households with roof catchment systems stands at 13,400

representing 19% of the total number of households. The water quality (% of cleanliness) is

80%.

The water and Irrigation county department which is in-charge of the sector in the county

was in FY 2014/2015 allocated Kshs 353 Million which was 8.52% of the budget to


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support water and irrigation projects. In FY 2015/2016, the sector budgetary allocation is

Kshs 167 Million which is 4.32% of total county budget. The FY2015/16 marked a

decrease of Kshs 185 Million (52.5%) as compared to FY 2014/2015 budget allocation.

The department of Water and Irrigation has completed 63 projects since 2014 and is

undertaking implementation of 108 projects spread all over the county .Major focus of the

projects include rehabilitation of existing pipelines, purchase of water tanks, drilling and

equipping of boreholes construction of dams and wells and protection of water catchments

. The department has also rehabilitated irrigation infrastructure bringing approximately

5600 acres of land under Irrigation.

Priority areas: Environmental Management and promotion of Tourism

This sector issues are spearheaded by the county Department of Tourism, Environment and

Natural Resource .This Department received Kshs.61Million in FY 2015/16 which was

which is 1.6% of county budget .This allocation represented an increase of Kshs.28

Million(87.3%) compared to Kshs32 Million allocated in FY 2014/15 and which was 0.8%

of county budget .

In this sector 12 projects were initiated with 8 in tourism and 4 in environment and

Natural resources. Key achievements include; development of a draft County Natural

Resource Board Bill, County Environment Policy, County Pollution control Bill and sand

harvesting guidelines. In tourism, the department prepared an inventory of 20 WW1

tourism sites, held commemoration of centenary celebration of WW1 and conducted

training of 132 tour guides

Priority area: Ensuring food security and investing in value addition and Promotion of livestock and fisheries Agriculture and livestock is one of the key drivers in the attainment of the county’s priority

of ensuring food security and promoting agro-based industries. The sector which comprises

of Agriculture, Livestock, Fisheries and Veterinary was allocated 2.85% of county resources

in 2014/2015 and 2.91% in 2015/2016. The sector was allocated Kshs.113 Million in

2015/16 .This is however a decrease of Kshs.5 Million (4.4%) from the 2014/15 FY

allocation of Kshs.118 Million.

In this sector, the county Government has completed 36 projects (20 in Agriculture sub-

sector and 16 in livestock, veterinary and fisheries sub-sector) since 2014. The completed

projects include purchase of 5 Tractors and implements; Procurement of 2,995 Orange

seedlings and distributing them to 200 farmers; Purchase and distribution of Traditional

High Value crop seeds i.e. Sorghum, Green grams, cowpeas, pigeon peas; supply of

subsidized fertilizer ; Construction of 3 water pans in Manganga , Mvita and Uthiani .

Other projects are construction of Lalazi and wesu dams

In the livestock sub-sector , completed projects are the purchase and distribution of 38

breeding Boran and Sahiwal stock ; purchase and distribution of 125 Galla goats to small

scale farmers to improve goat meat production ; purchase and distribution of 111 dairy


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goats and 26 dairy cows to improve milk production ; purchase and distribution of 3,800

indigenous poultry and 312 Rabbit breeding stock. Other key projects are rehabilitation

and routine maintenance of Mwatate livestock farm and Bachuma Livestock multiplication

centres; establishment of 4 AI centres, construction of one fish banda at Lake Jipe;

construction and stocking of 50 fishponds and restocking of Lake Jipe and Ngerenyi Dam

with tilapia fingerlings.

Priority area: Investing in quality, accessible and affordable health care services

The Health sector continues to receive significant proportion of the county budget. In

FY2015/16, the department was allocated Kshs.1.2 Billion comprising of normal allocation

and conditional grants. The allocation which was 30.87% of county budget marked an

increase of Kshs 793 Million (195%) compared to FY 2014/15 which was Kshs. 406

Million and 9.8% of county budget .In the 2015/16 allocation Ksh.100 Million (84%) is to

support recurrent activities while ksh198 Million (16%) development.

In the health sub-sector, 9 projects have been completed, 10 are ongoing while others are

at initiation stage. Key projects completed in the sector include; Procurement of 4

ambulances , construction of 3 maternity blocks, Procurement of medical, laboratory and

modern washing machines and rehabilitation of Wesu sub-county hospital. Key on-going

projects include; construction of a maternity unit at Mwatate sub-county hospital,

construction of 2 new dispensaries and procurement and installation of 16 slice CT scan

machine at Moi County Hospital-Voi.

Priority Area: Improving access to ECDE, Polytechnics and Library services.

The county education sector comprises the early childhood education support services,

youth training and library services. The county also support education of needy students in

secondary and college through provision of bursaries and Loans. The county has 334 public

ECDE centres with an enrolment of 15954 pupils and 643 teachers. The number of youth

polytechnics are 24 with an enrolment of 2654 students.

The county government allocated this department Kshs.439 Million in FY 2015/16 which

is 11.31% of total county budget. This allocation was an increase of Kshs 198 Million

(82.3%) compared to Kshs 241Million in FY2014/15 which was 5.81% of county budget.

The education sector in the county has seen the implemtaion of 88 projects with 41

completed and 47 ongoing .Some of the key achievements realized include: Establishment

of bursary fund which has assisted 5979 student amounting to Kshs. 25million , Rolling

out an ECDE feeding Program to marginalized ECDE centres (program rolled out in 67

ECDE centres across the county); Purchase of 250 High density mattresses to aid the County

ECDE teachers during their DICECE training period; Provision of ECDE teaching& learning

materials; 4 ECDE centers provided with fixed outdoor play materials; Employement of 46

qualified Youth Polytechnic instructors and 120 casuals instractirs ; Rolling out of County

Mobile Library Services Project to students in identified educationally marginalized Zones

(Kimorigo, Tausa, Rong’e and Wumingu Zones). Training of school librarians in the

identified zones was done (two linguistic teachers in each Secondary, Primary, Youth


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Polytechnic and ECDE supervisors in the 4 zones). The County Department has supported

both the KCPE and KCSE candidates of the year 2014 through provision of:- Sanitary

Towels to Girls Candidates where over 1957 candidate Girls benefitted from this program;

Construction of twin workshop at Chumvini in Taveta; Construction of twin workshops at

Tausa Voi; Construction of Twin workshop at Rong’e Juu Mwatate and Construction of twin

block workshop at Mwagafwa.

Priority areas: Empowerment of Youth, women, and vulnerable members of the community and Promotion trade

The department of trade and community affairs’ mandate covers the strategic

implementation of Cooperatives, Youth, Sports, Culture, Trade and Gender programmes.

The role of the department is to contribute to transformation of the social and economic

status of residents of the county through a coordinated and harmonized integration of the

various activities.

The county department was allocated Kshs.189 Million in FY 2015/16 which is 4.88% of

the county budget .This was an increase of Kshs.31 Million(20%) when compared to

Kshs.158 Million in FY 2014/15 which was 3.82% of the county budget.

In this sub-sector, 51 projects have been initiated with the key initiative including

disbursement of DATU fund to benefit the marginalized groups consisting of Women,

Youth and People living with disability as well as establishment of a Biashara Business

Center. Other projects include those geared towards strengthening the cooperative

societies, sports, trade development, culture and support to youth development activities.

Priority area: Land planning, management and mining

In the County Only 38% of the land is for the settlement and agricultural activities. Approximately

5,876 km2 is occupied by ranches which are about 25 in number and sisal estates. 62% of the total

land in the county is under the National Parks (Tsavo West and East)

Issues affecting the land management include: outdated laws and limited implementation of land policies; multiple land interests on the same piece of land; Inadequate funds for land administration system; Inadequate mapping capacity; Deteriorating and missing land administration records; Inadequate decentralization of land registration services; Inadequate security of land ownership and insecure land-related investments; Inadequate Dispute Resolution Mechanisms; Increasing land evictions on registered land and customary land; Unregistered land rights in the mineral rich areas and Shortage of qualified professionals.

The land management activities comprises of functions allocated to county government and spearheaded by department of lands and mining. In FY 2014/2015, county land and mining department was allocated Kshs 14 Million which was 0.34 % of the county total budget. In FY 2015/2016 the department was allocated Kshs. 25 Million which is 0.67% of the county budget. The Kshs 11 Million additional allocation in 2015/2016 as compared to 2014/2015 indicates an increase of 84%. The County Government in implementing 9 projects in the lands and Mining sector. Key

on-going projects include; completion of Taita Taveta land Capability Plan, preparation of

county head quarter’s plan and beaconing at Mgheno. Officials in the Lands department


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have also put a lot of efforts in solving various boundary disputes. The county is also in the

process of completing various towns’ plans such as Maungu, Mwakitau and Miasenyi.

In mining sub-sector the main achievements include; acquisition of analysis equipment

(Thermo-analyser), initiating the process of procuring 2 weighbridges to monitor

movement of all industrial bulk ore, and support to small-scale mining groups through

purchase of 2 compressors for Voi and Mwatate sub-counties.

Priority area: Investing in physical infrastructure including ICT and Promotion of Energy

and industry

The key mandate of the public works and infrastructure department which is spearheading

infrastructure development is to plan, implement and supervise all construction of county

government’s physical projects in health, education, roads and other sectors. To undertake

its mandate, the department was allocated Kshs 275 Million in FY 2014/2015 which was

6.52% of the county budget. During the FY 2015/16 the department was allocated Kshs.

270 Million.

The department used the funds to supervise to completion the maintenance of 19 key road

projects and construction of 25 buildings in the county. The department is currently

supervising 48 ongoing county government projects. To enhance effectiveness and

efficiency in roads maintenance and construction, the department procured and distributed

4 graders in the sub-counties.

This sectors has also seen key investment in the county by the national government .These

include the on-going construction of Taveta-Mwatate road to bitumen standard, Standard

Gauge Railway, rehabilitation of Voi-Mwatate –Wundanyi road and other class C roads

being done by Kenya Rural Roads Authority

Industrialization, Energy ICT and Research sector has been identified as having immense

potential in the county development and improving its competitiveness by reducing

transaction costs. The county department of Industrialization, Energy ICT and Research is

charged with ensuring a good conducive environment for business, spearheading

innovation through research, promoting industrialization and energy was allocated

Kshs.21Million which 0.6% of county budget .This allocation was however a decrease of

Kshs.18 Million(47%) compared to Kshs.39 Million allocated in 2014/2015 where the

funds were to support ICT.

Key achievements include in the sector include; ongoing construction of Wumingu fruits

and vegetable processing plant, registration of EPZ in Taveta for banana processing and

export. Installation of Solar Street lights in major towns and trading centres sourcing for

investors in the energy sector and promoting usage of ICT in county communication and

revenue

Priority areas: enactment of enabling institutions (Policies and legal framework) and promoting decentralization of services


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The Administration and Devolution county department which is charged with the

responsibility of coordinating county government activities downstream and across sectors

and entrenching devolution received Kshs.233 Million in FY 2015/16 compared to

Kshs.1.3 Billion in 2014/15 which is a decrease of Kshs.1.1 Billion(83%). (The high

2014/15 allocation was because all county staff salaries for the month of January to June

2015 was allocated to department.

The Administration and Devolution county Department initiated 27 programmes including;

strengthening of sub-county and ward offices, coordinating the development of 12 draft

bills and policies, operationalization of performance management tool and IPPD system and

coordinated public participation on various issues.

The County Assembly which is charged with the responsibility of enacting laws and

proving oversight was allocated Kshs443 Million (15.3% of the County Budget) in

2013/14. The amount of allocation for FY204/15 was Kshs 386Million (9.4%) while the

amount increased to Kshs 557 Million (15.1% of County budget). The County assembly has

enacted bills which include: Taita Taveta Education Fund Board Act; Taita Taveta County

Flags and Symbols; DATU Sawazisha and other Bills related to Finance.

The gubernatorial Office comprising of the Governor and Deputy Governor’s Office is

charged with the responsibility of providing leadership and coordination of County Affairs.

In FY 2013/14 the Office received a total of Kshs331Million, Kshs 128 Million in 2014/15

and Kshs 205 Million in FY 2015/16.

Fiscal Performance for 2014/15 and 2015/16

Revenue Analysis

The main sources of county revenue include; equitable share from National government

and local revenue. The budget has increased from Kshs.2.7 Billion in 2013/14 to Kshs.3.8

Billion in 2015/16 an increase of 41% as shown in Table 1

Table 1: County Resource Envelope-2013/14 to 2015/16

2013/14 2014/15 2015/16

Source Actuals(Kshs) Budgeted(Kshs.) Actual(Kshs.) Budgeted(Kshs.)

Equitable share 2,420,750,540.00 2,887,455,925 2,887,455,925.00 3,309,568,191

Local Revenue 147,253,830.00 483,884,110.75 216,680,956.00 310,405,326

Equalization Fund 217,263,689

- 0

NHIF 14,400,021.00

Conditional Grants 50,376,525 35,976,504.00 223,035,846

Brought forward 508,409,335.75 508,409,335.00 42,958,485

Total Revenue 2,568,004,370 4,147,389,586.00 3,662,922,741.00 3,885,967,848.05


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Equitable share from the National Government accounts for 85% of the county resource

envelope in 2015/16. The County Resource envelope for 2013/14 and 2014/15 included

equalization fund which was however not disbursed to the county.

Table 2: Revenue Flow per source and Month

2014/15

Month Local Revenue Exchequer release Local Revenue Exchequer release

JULY 21,837,129.00 - 17,709,794.00

AUGUST 18,997,074.00 360,931,991.00 14,748,025.00 264,765,455.00

SEPTEMBER 15,036,585.50 259,871,033.00 12,261,345.00

OCTOBER 13,190,446.00 - 9,301,172.00 562,626,593.00

NOVEMBER 11,248,242.00 216,559,194.00 8,024,182.00 281,313,296.00

DECEMBER 13,656,069.00 490,867,508.00 9,886,436.00 297,861,137.00

TOTAL 93,965,545.50 1,328,229,726.00 71,930,954.00 1,406,566,481.00

2015/16

Local Revenue Analysis

The total local revenue collected for the FY 2014/15 amounted to Kshs 216 Million with

94 Million being collected in the 1st half(July-December) and representing 23.2% of annual

local revenue target. In FY 2015/16 the local revenue collected for the 1st half amounts to

71.9 Million which is a drop of 22 Million (23%).

The major cause of the decline in revenue can be partly attributed to Tanzania’s

electioneering period which affected cross border trade especially movement of Maize and

Rice which are main sources of General Cess. Notable decline was also in Single Business

Permit, Land rates and Bus Park Fees. This under performance can generally be attributed

to tax/rate payer apathy, delay in the passage of the Finance Act 2014, revenue leakages

and other and structural shortcomings.

Equitable Share

The National treasury released a total of Kshs.1.4 billion in the period July-December 2015

.This amount account for 42.5% on equitable share and 36.2 % of the budget .The flow of

equitable share to the county was erratic as only 18% of the funds were received in the first

quarter of the financial year .This made it difficult for the county to meet its key obligation

such as payment of salaries, suppliers and other operation and maintenance expenses

Expenditure Analysis

The total expenditure for the 1st half of 2015/16 amounts to Kshs.1.1 Billion representing 39% of the County total budget and absorption rate of 73.3% of the funds released. The monies were all for recurrent expenditure of which 72.9% was for Personnel emoluments, 7.8% for domestic travel, 2.3% for training and 2.2% for foreign Travel. On personnel emolument, health services had the highest expenditure accounting for 36.3%, County assembly at 20.8%, Administration and devolution 9.4% and education at 7.37%.


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Table 3: Total County Expenditure per Department

Department Approved Budget Personal emolumentsForeign travel Domestic travel Hospitality,conferences & cateringTraining Printing and advertisingOthers Total recurrent exp.Absorption

County Assembly 550,375,649.00 169,262,341.00 24,069,660.00 28,237,828.00 9,435,610.00 10,092,941.00 593,200.00 15,406,985.00 257,098,565.00 0.47

Adminstration and Devolution 233,275,917.00 76,632,147.00 541,211.00 3,444,665.00 1,571,565.00 2,197,250.00 117,835.00 3,044,011.00 87,549,085.00 0.38

Office of the Governors & deputy Governor141,443,579.00 23,954,133.00 - 9,523,967.00 1,442,182.00 10,164,898.00 522,375.00 7,014,689.00 52,622,244.00 0.37

Finance and Planning 365,999,517.00 77,846,776.00 - 23,475,056.00 1,340,220.00 630,000.00 203,160.00 16,874,577.00 120,369,789.00 0.33

Agriclture livestock and Fisheries 78,528,916.00 26,552,194.00 - 4,217,060.00 181,350.00 - 95,400.00 1,014,669.00 32,060,673.00 0.41

Water and Irrigation 24,469,400.00 5,186,319.00 - 2,319,300.00 293,020.00 300,000.00 50,000.00 864,765.00 9,013,404.00 0.37

Education 252,757,795.00 79,865,255.00 - 2,000,150.00 637,475.00 600,000.00 57,980.00 10,933,834.00 94,094,694.00 0.37

Health 1,000,809,933.00 294,639,193.00 - 5,667,803.00 483,990.00 413,290.00 1,059,800.00 84,901,790.00 387,165,866.00 0.39

Trade and Community Affairs 69,625,198.00 14,575,122.00 - 3,085,974.00 320,070.00 2,200,000.00 144,600.00 531,979.00 20,857,745.00 0.30

County public sevice board 43,810,349.00 14,262,794.00 - 1,506,650.00 213,000.00 - - 751,210.00 16,733,654.00 0.38

Public works, Roads & Housing 20,004,647.00 1,555,306.00 - 803,850.00 14,000.00 - 14,960.00 664,640.00 3,052,756.00 0.15

Lands physical planning and Mining 23,068,889.00 2,311,839.00 - 304,529.00 4,671.00 - - - 2,621,039.00 0.11

Tourisim Environment and Natural Resources56,727,134.00 20,418,122.00 - 1,352,470.00 185,925.00 - 27,250.00 1,316,554.00 23,300,321.00 0.41

Industalization, energy & ICT 17,235,304.00 5,044,833.00 - 981,000.00 30,500.00 39,200.00 - 454,950.00 6,550,483.00 0.38

Total 2,878,132,227.00 812,106,374.00 24,610,871.00 86,920,302.00 16,153,578.00 26,637,579.00 2,886,560.00 143,774,653.00 1,113,090,318.00 0.39

TOTAL EXPENDITURE PER DEPARTMENT/ARM FOR FIRST HALF OF FY 2015/16

The expenditure against budgets varied between departments, with County Assembly at 47%, Agriculture, Livestock and fisheries at 41% and Tourism at 41%. Other departments recorded low absorption with Lands and mining at 11% and Public Works at 15%


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CHAPTER TWO: RECENT ECONOMIC DEVELOPMENT AND POLICY

OUTLOOK

National Economy

According to the national treasury 2016 Budget Policy Statement, Kenya’s economic growth

has been robust supported by significant infrastructure investments, construction, mining,

and lower energy prices and improvement in agriculture following improved weather. The

economy grew by 5.3 percent in 2014 and is projected at 5.6 percent in 2015, 6.0 percent

in 2016 and 6.5 percent in the medium term. The growth in the third quarter of 2015/2016

was supported by improved performance in agriculture, forestry and fishing (7.1 percent),

construction (14.1 percent), wholesale and retail trade (6.5 percent), transport and storage

(8.7 percent) and electricity and water supply (11.0 percent).

The paper indicates that real GDP is estimated to expand by 5.9 percent in FY 2014/2015,

6.3 percent in FY 2015/2016 and 6.4 percent by FY 2018/19. This robust broad based

growth will be supported by increased production in agriculture, completion of

infrastructural projects to boost economic activity while continuing with other

infrastructural investment projects and recovery of Tourism. The economy will also benefit

from increased investments and domestic demand, following enhanced investor confidence

and the on-going initiatives to deepen regional integration.

The projected growth assumes normal weather pattern in 2016 and the medium term.

Inflation is expected to revert within 5.0 percent target and interest rates and shilling

exchange rate expected to be stable

The BPS indicate that average annual inflation rate was 6.5 percent in December 2015

compared to 6.9 percent in December 2014 and was therefore, within the current allowable

margin of 2.5 percent on either side of the target of 5.0 percent.

National economic development pillars in the Medium Term

The BPS 2016 indicate that the national government prioritizes various measures meant to raise

efficiency and productivity .These include:-

(i) Creating a conducive business environment for job creation;

(ii) Investing in sectoral transformation to ensure broad based and sustainable economic

growth, and in particular agricultural transformation to ensure food security;

(iii) Investing in infrastructure in areas such as transport, logistics, energy and water;


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(iv) investing in quality and accessible health care services and quality education as well as

strengthening the social safety net to reduce the burden on the households and promote

shared and equitable growth; and

(v) Further consolidate gains made in devolution in order to provide better service delivery

and enhanced economic development.

County outlook for the Medium Term

The key drivers of the county economy in the medium term are agriculture, livestock,

fisheries, mining, tourism and commerce. The growth of these sectors are not only expected

to provide employment opportunities but also generate revenue to the county government

and wealth to the people.

Agriculture and small scale pastoralism currently contributes 35% of total employment

opportunities and household income. For the last 3 years, the value of major agricultural

products grew from Ksh7.19 Billion in 2012 to Kshs.7.8 Billion in 2015. The major

agricultural produce in the County in 2015(provisional data) include; Bananas (5Billion in

Kshs), Maize (52 Million in Kshs), Beans (65 Million in Kshs), tomatoes (1.27 Billion in

Kshs), onions (410 Million in Kshs), Kales (449 Million in Kshs) and macadamia (120

Million in Kshs)

The County Government has also been putting pressure on Kenya Wildlife Service (KWS) to

control the wildlife menace on crops and animals. This is expected to reduce losses and also

attract more investment in agriculture and livestock sectors especially in the lower zones

of the county. With the increased investment in the sector by the county government, the

value of agriculture products is expected to increase by 20% and reach Kshs 10 Billion by

end of 2016/17.

In the livestock sub-sector, the leading sources of income (Kshs) in 2015 include: Milk (4.7

Billion), Beef (350Million), Mutton (12Million), Poultry (82 Million), eggs (97 Million)

and Honey (6.6 Million). Improved milk collection infrastructure, streamlined milk

marketing channels, adequate livestock feeds and improved animal health services will

ensure that production continues to improve. In the medium term, the county Government

will continue supporting the sector which is expected to increase the value of Livestock

products by 6.0% to reach Kshs.5.6 Billion in 2016/17.

Fisheries activities have traditionally been concentrated in Taveta where we have Lake

Challa and Lake Jipe. The sub-sector has however witnessed an increase in fish production

from fish ponds spread in various parts of the county. In 2015, the production from fish

ponds constitute 28.56% of total production The value of production in this sub-sector

increased from Kshs 16Million in 2012 to Kshs 39 Million in 2013, Kshs 38 Million in

2014 and Ksh 41 Million in 2015 making it a key contributor to food security and

provision of income.


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The County Government will continue to put effort in promoting the fisheries sub-sector in

the medium term. The investment in this sub-sector is expected to increase the value of fish

products by 5% to reach Kshs.61 Million by the end of 2016/17

The value of forest products has also grown from Kshs 30 Million in 2012 to Kshs 30

Million in 2014. Some of the major forest products in the County include: Timber, round

poles, fuel wood, seedlings, bark and charcoal. The sub-sector has also seen another

emerging product in the form of eco-tourism where a total of 520 visitors/tourists were

recorded. In 2016, the County government is expected to earn revenue more from the

visits and production of forest with the conclusion of process of handing over of

management of county forests from the national government to county Government.

The strategic position of key county towns of Voi and Taveta as transit towns connecting

the port of Mombasa and other East African regions and together with the county being a

major producer of minerals and non-mineral products is expected to continue playing an

important role in the county economic growth in medium term .This has prompted the

County Government consider re-planning of the two towns so as to ensure orderly growth.

The completion of Geommology Center currently under construction at Voi , together with

new ways being applied to organize the mining sector- especially exploitation and

marketing, portrays a robust economy for the county in the medium term period. The

County government proposes to replicate the positive experiences gained in mining in

Mkuki by establishing similar ventures in other areas in the county. This is likely to create

employment and increase revenue for the county government. The county government

however believes that the key to ensuring mining benefits spread to the local people

include amending key laws governing mining and the county land management for its to

play a key role.

The cooperative movement has been a major source of capital for investment

within the county with major types of vibrant cooperatives in the county being SACCOs.

The total number of cooperatives increased from 114 in 2012 to 130 in 2015 though only

63 are active. The total turnover from the cooperative movement increased from

ksh167Million ( 2012) ,Kshs.199Million ( 2013) , Kshs.236 Million. (2014) and Kshs.

281Million in 2015 .The turnover is expected to be Kshs.326 million by end of 2016. The

county also expects the number of micro businesses venture to grow significantly. This is as

are result of increased access to capital through devolved funds such as DATU and UWEZO

all targeting about 1,000 people. Business is also expected to expand with the establishment

of industrial and technology parks which is meant to catalyze innovation and value

addition

The county will continue having an increase in the amount of money in circulation which

will boost investment. This is attributed to incomes from employment in the ongoing

projects like Standard Gauge Railway and Mwatate-Taveta road as well as expenditures of

Kshs 2.5billion from county government budget and donors to support various projects and

programmes.


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Infrastructure in the county has for long been in a pathetic state with all roads both

classified and unclassified being impassable. This state of the roads has made the county

products to be uncompetitive due to the high cost of transportation for both inputs and

final products. In the medium term period, the county economy looks promising as major

infrastructure projects will have been completed or near completion .Key projects expected

to have a lot of impact in the county economy included the ongoing SGR together with

construction of railway station at Voi town, Construction of Taveta-Mwatate road,

rehabilitation of Voi-Wundanyi Road and Ikanga Airstrip. The county government has also

acquired road maintenance equipment which will go along ways in improving all

unclassified roads .This is in addition to periodic maintenance of class C, D, E roads


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CHAPTER THREE: FISCAL FRAMEWORK AND COUNTY STRATEGIC

PRIORITIES FOR 2016/17 AND THE MEDIUM TERM

Overview of the 2014/15 and 2015/16 Budget Framework

In FY 2014/15 the total actual county resource envelop amounted to Kshs 3.6 Billion with

Kshs.2.8 Billion from the equitable share and Kshs.216 Million from local revenue.

In 2015/16 the County budget stands at Kshs3.8 Billion with Kshs.3.3 Billion expected

from the equitable share and Kshs.310 million from local revenue. The fiscal performance

for the 1st half of the FY shows weaker than expected revenue collections with only 23% of

local revenue collected by the end of December 2015. It is therefore imperative that the

County Government continues to monitor the local revenue projections for 2016/17 to

align them with the revised macroeconomic projections.

2016/17 FISCAL FRAMEWORK

Fiscal Policy

The 2016 Medium term policy re-emphasizes the socio-economic transformative policy

adopted in 2015 CFSP as a basis to ensure; continued improvement of access to water in

both urban and rural areas; Increasing agricultural and livestock production for food

security and wealth creation; improving access to quality social services-including Health

care and education; increasing access to credit for youth employment; to reduce the cost of

doing business and attracting investments through development of key infrastructure.

Revenue Projections

The Total resource envelope for the FY 2016/17 budget is envisaged to stand at Kshs 4. 2 Billion from Kshs 3.8 Billion in 2015/16. A total of Kshs 3.8 Billion is expected from the National government comprising of Kshs 3.6Billion as equitable share and Kshs 242 Million as conditional transfers. Local revenue for FY 2016/17 is projected at Kshs 319Million accounting for 7.6% of the total resource envelope. The County government has also been engaging with other development partners who have shown their interest to directly fund certain specific sectors of the county economy. These Development Partner include: European Union (1Million Euros towards agro-based development); Red-cross (Kshs.100 Million towards Water and sanitation); National Drought Management Authority (Kshs.12.4 Million towards food security and disaster preparedness). The funds from these development partners will be included in the 2016/17 budget on account of Supplementary budget should they be realised after approval of the budget estimates. To realize these revenue targets, the County will implement an ambitious revenue enhancement strategy to be spearheaded by the County Treasury. This will entail among others; structural and administrative reforms as well as exploitation of new revenue streams to widen the revenue base.


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Table 4: Taita Taveta County Fiscal Framework for FY2016/17 and medium-Term

Budgeted 2015/16 CFSP PROPOSAL

2013/14 Budgeted Actual Budgeted 2016/17 2017/18 2018/19

Equitable share 2,420,750,540.00 2,887,455,925 2,887,455,925.00 3,309,568,191 3,635,560,442 3,817,338,464 4,008,205,387

Local Revenue 147,253,830.00 483,884,110.75 216,680,956.00 310,405,326 319,717,486 335,703,360 352,488,528

Equalization Fund - 217,263,689 - 0 0 0 0

NHIF 14,400,021.00 0 0

Conditional Grants 50,376,525 35,976,504.00 223,035,846 242,828,653.00 254,970,086 267,718,590

Brought forward 508,409,335.75 508,409,335.00 42,958,485 0 0

Total Revenue 2,568,004,370.00 4,147,389,586.00 3,662,922,741.00 3,885,967,848.05 4,198,106,581.00 4,408,011,910 4,628,412,506

PROJECTIONS2014/15

Source Taita Taveta County Treasury

Expenditure Projections

Based on the county’s fiscal policy and in compliance with the fiscal responsibility principles outlined above, the county’s expenditure for the budget period in 2016/2017 is projected as follows: Recurrent Expenditure Recurrent expenditure is projected to be at 70% of total expenditure. This will however be spent to support capital expenditure in line with the programme based budgeting framework. This will go a long way in supporting robust economic growth in the County while ensuring prudence and caution in the application of resources. The County’s wage bill continues to exert undue pressure on the recurrent vote and this could undermine development if not mitigated. In the FY 2016/17 and the medium term, the compensation to employees is expected to account for 44% the total budget. Restraining the growth of the county’s wage bill is a priority in the medium term in order to sustain growth. This will be achieved through the following measures:

1. Containing wages and salaries of public entities by limiting the size of the public service.

2. Carrying out a job evaluation exercise in the county. 3. Realigning the existing staff with the functions of the county government as

entrenched in the constitution to avoid duplication of roles in the departments. Development Expenditure Development expenditure in 2016/2017 and the medium term is projected at 30% of total expenditure. This is consistent with the objective of progressively allocating more resources for critical development projects. Highest priority for FY2016/17 will be directed towards completion of on-going and rolled over projects. Priority will also be given to development projects and programmes that have high and immediate impact on the livelihoods of the public. The projection is based on the assumption that there will be high absorption capacities for the spending agencies for development funds and that there will be continued implementation of the county government’s development agenda by investment in high impact initiatives and other projects as outlined in the CIDP.


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County’s Strategic Priorities for 2016/17 and the medium term

Since inception, the County Government has been implementing projects/programmes aimed at achieving the various priorities. Some of the priority areas that will continue to be pursued in the medium term include: 1. Environmental management and increasing access to water for domestic, livestock and irrigation. This will be achieved through conserving water towers, mapping of water scarce areas and implementation of quick win projects to meet the diverse needs. 2. Ensuring food security and wealth creation through investing in value addition in Agriculture, Livestock and fisheries Production. 3. Investing in quality, accessible and affordable health care services.

4. Ensuring quality education through development of ECDE and Library services

6. Empowerment of Youth, women, and vulnerable members of the community through strengthening of the social safety net

6. Investing in physical infrastructure including ICT with an aim of reducing the cost of doing business thereby attracting investors. 7. Promotion of tourism, trade and industry 8. Land planning, management and promoting mining 9. Further decentralization for improved access and provision of services 10. Enactment of enabling institutions (Policies and legal framework) County High Priority Projects The county has identified some landmark projects to be implemented in the 2016/17 financial year. These are projects that have high impact on economic and social development of the county. These projects to be implemented by the technical departments include:

1. Undertake quick win projects in Water sub sector and spread them throughout the County to provide water for domestic, livestock and agriculture use.

2. Equipping Moi County Referral Hospital fully to handle specialized services. 3. Enhanced Land Planning and enhancement of revenue streams through growth of

townships including new revenue streams at Wananchi Settlement Scheme mining zone

4. Upgrade one Youth Polytechnic become a Business Center and Talents Academy 5. Convert one Youth Polytechnic into a State-of-the-art Polytechnic specializing in

particular trades.

Medium term expenditure estimates

In accordance with the provisions of the constitution and PFMA on enhancing openness and accountability in public finances, the County Government will facilitate full


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participation of the people in the budget making process as well as observe fairness in allocation of resources.

The sectoral allocation for the 2016/17 financial year and the medium term are influenced

by the necessity to finance projects that directly support economic growth and reduce

poverty. Attention has be given to projects that improve the quality of life of the residents in

the county. The allocations are informed by the county goals and peoples aspirations as

captured in the county integrated development plan (CIDP) 2013-2017.

Given that the sectoral demands for funds are very high while the available resources are

limited it was important to come up with a fair way of distributing allocations. The

following criterion has been used in the 2016/17 sectoral allocation.

1. In the recurrent expenditure category non-discretionary expenditures/Statutory

obligations such as salaries take first priority.

2. Citizens prioritization during the CFSP Budget hearings and the CIDP 2013-2017.

3. High priority projects: Projects and programme with moderate costs implications

but with high impact on transforming lives and employment creation

4. On-going and Critical infrastructure improvement projects

5. The baseline estimates also reflects the current departmental spending levels-

Current absorption rates

Details of Departmental Priorities and Baseline Ceilings

Based on the resource envelop projected above and the broad county priorities, County

departments have been allocated funds as discussed below and detailed in Annex 1 and 2.

Water and Irrigation

During the 2016/17-2018/19 the Strategic Priorities for Water and Irrigation for

2016/17 will include:

1. Increasing access to portable water in rural areas and urban centers 2. Provision of water for livestock 3. Promote water harvesting and modern irrigation methods 4. Secure and conserve water catchment areas 5. Management of storm water and convert it to useful water.

In order to implement its prioritised programmes the department has been allocated a total of Kshs 294 Million accounting for 7.01% of the total County budget.

Agriculture

The major goal of the department is to attain food and nutritional security. During the

2016/17-2018/19 MTEF the department has lined up priority projects and programmes

which include: Crops, pests and diseases control, Promotion of Drought tolerant crops,

revitalization of Horticultural Production Centres (HPC), Rice Production and milling and

Value addition.

In order to implement these priorities the department has been allocated a total Kshs.142

Million representing 3.4% of the county budget


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Livestock, Veterinary and Fisheries

The department has lined up the following priorities and programmes for 2016/17-

2018/19 MTEF

1. Range rehabilitation and water improvement for livestock in the ranches; 2. Maintenance of facilities at livestock multiplication centres in Bachuma 3. Purchase and operationalization of tractor mechanization services and farm

implements and equipment’s for pasture harvesting; Maintenance and Improvement of facilities for livestock Holding Ground in Voi (water pipes, Tanks, fencing, livestock structures pens); Construction of livestock loading ramp in Voi, Purchase of Cattles and small stock weighing bridge

4. Purchase of livestock feed milling equipment, Auction Rings and sale yards 5. Promotions of livestock value addion ventures such as milk and leather processing.

6. Promotion of sustainable utilization of inland capture fisheries through:

strengthening the BMUs; Control of fishing effort and strengthening of enforcement of fisheries legislations;

7. Enhancing fish safety, quality assurance, value addition and marketing; 8. Promotion of appropriate fish handling and preservation technologies and

Promotion of value addition and marketing of fish and fishery products. To implement these prioritised programmes, the department has been allocated a total of Kshs 90 Million accounting for 2.15% of the total county budget. Health Services

The department has lined up the following priorities and programmes for 2016/17-

2018/19 MTEF:

1. Provision of specilaised services at Moi County Referral Hospital 2. Provision of essential health care in all health facilities 3. Establishment of Kenya Medical Training College(KMTC) branches(Voi and

Taveta The department has lined up completion of all ongoing projects as its highest priority. Other capital projects include: Establishment of critical care Services at Moi County referral Hospital, equipping of all new health facilities and refurbishment of existing health centres. To implement these priority projects, the department has been allocated a total of Kshs 1.1 Billion accounting for 26.4% of the county budget. This amount also includes Kshs 144.5 Million as conditional grants from the National Government comprising of Kshs 6.6 Million compensation for user fees forgone, Kshs 42.1 Million free maternal health care and Kshs 95 Million for leasing of medical equipment. Trade and Community Affairs The department will continue to implement its core mandate by pursuing the following

Strategic Priorities for 2016/17: Sports Development; Cooperatives Development; Trade

and markets Development; Youth Development and Social Development.

Some of the projects lined up for implementation include: Construction/ rehabilitation of 1

Stadium; construction of Wundanyi YEC Rehabilitation of cultural sites and construction/

rehabilitation of 4 markets.


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The department will also spearhead activities aimed at addressing Gender based Violence

and establishment recreation facilities for youth

To implement these priority programmes, the department has been allocated a total of Kshs

142 Million accounting for 3.3% of the county budget.

Education and Library Services

The key priorities for 2016/17 will include:

1. Construction of County Centre for Early Childhood Development and Education(COCECE)

2. Promotion of access, retention and completion rates for secondary and tertiary institutions This will be done though provsion of bursaries meals during exams and sanitary towels

3. Youth Polytechnic ICT infrastructure, workshop tools and provision of equipment 4. ECDE infrastructure (Classrooms, Teaching and Learning facilities) and ECDE

capitation fund 5. Subsidized Youth Polytechnic Tuition Fund 6. Enhancing good performance in National examinations 7. Mobile library service stocking.

To implement these prioritised programmes and projects the department has been allocated a total of Kshs 419 Million accounting for 9.9% of the county budget.

Tourism, Environment and Natural Resources

The department intends to pursue the following Strategic Priorities for 2016/17 among

others:

1. Promotion of domestic tourism, marketing and Diversification of tourism products 2. Rehabilitation of degraded sites 3. Improve management of waste and pollution 4. Improved management and protection of county forests as well as value addition of

forestry products 5. Protection and conservation of biodiversity hotspots

The department has been allocated a total of Kshs 63 Million accounting for 1.5% of the county budget.

Public Works and infrastructure

The department will implement the following priorities:

1. Improvement of existing roads network 2. New road formation 3. Improvement of housing 4. Provision of technical infrastructure

These priorities will be implemented with a total allocation of Kshs 242 Million accounting for 5.8% of the county budget. The amount also includes a total of Kshs 54.8 Million as conditional grants from the Roads Maintenance and Fuel Levy Fund(RMFLF)


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Lands and Mining

The department will undertake to achieve the following priority areas:

1. Ensuring the security of land tenure- Provision of titles 2. Tapping employment and revenue streams in mining at Wananchi Scheme 3. Socio-economic development and enhancement of revenue through growth of

towns ie Town Planning The department has been allocated a total of Kshs 37 Million accounting for 0.9% of the total county budget.

Industrialization, energy, Research and ICT

In 2016/17-2018/19 MTEF the department intends to implement the following priorities:

County ICT infrastructure-MPLS installation; Networking of county offices and CCTV

installation; ERP-Automation; County WiFi Programme and Resource Identification and

mapping.

The department has been allocated a total of Kshs 47.5 Million accounting for 1.1% of the

county budget.

Administration and Devolution

The department is planning to implement the following strategic priorities:-

1. Promote Public Participation in Decision-Making and Development Process 2. Promote Effective Service Delivery through well Coordination of service provision 3. The Promote peace, security and more resilient communities to disaster in the

county 4. Promotion of inter-governmental Relations

The department has proposed to undertake the following projects: Construction of 1 Sub-

County Headquarters Offices; Construction of 4 Ward Administration Offices and

Renovation of 16 ward administration offices

To undertake its prioritised projects/programmes, the department has been allocated a total

of Kshs 155 Million accounting for 3.7% of the county.

Finance and Planning

The department’s Strategic Priorities for 2016/17-2018/19 MTEF include:

1. Prudent financial management: through strengthening of controls; development of sound policies and laws; Automation of accounting and procurement processes,

2. Economic development Planning: through coordination of the preparation of County Intergrated Development Plan, County annual Development Plans and other planning and budgeting documents,

3. Resource Mobilization: Through automation of revenue management, Statistics and documentation: through strengthening of data collection and analysis; establishment of a statistics framework for the county

4. Monitoring and evaluation: Strengthen the continuous tracking of progress in the implementation of programmes

The department has earmarked the construction of 2 revenue collection centres and preparation of the next CIDP- 2018-2023 as the priority projects.


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To implement its mandate, the department has been allocated a total of Kshs 205 Million representing 4.9% of the county budget. Governor and Deputy Governor’s Office

In 2016/17 the major priority to be pursued will be the construction and completion of County Government Headquarters at Mgeno in Mwatate sub-county and continued provision of leadership and coordination of county government business. The office will also coordinated provision of legal services and promote activities of County Budget and Economic Forum. To implement its priorities during the FY 2016/17, the department has been allocated a total of Kshs 140 Million accounting for 3.3% of the county budget.

County Public Service Board

In 2016/17 the CPSB’s key priorities will be:

1. Promotion of Ethics and Discipline in the County Public service and the general; 2. Provision of human Resource Capacity to the County government and Provision of

adequate administration services to the Board and its stakeholders. The major capital project earmarked is Development of a human Resource Information

system with a records management system and an online application system.

To implement its priorities, the Board has been allocated a total of Kshs 51.8 Million

accounting for 1.73% of the county budget.

County assembly

The County Assembly has earmarked the expanding of the current chambers to include a

Press gallery, a Public gallery and a Media Centre. This has been necessitated by the current

lack of space to accommodate the public and the press during the passing of crucial bills as

well as debates.

The assembly also intends to undertake the construction of committee rooms and extra staff

offices in an effort to create more space for conducting of committee meetings as well as

accommodating staff as they perform their day to day operations. There is also need to

upgrade the Hansard equipment.

To implement its mandate effectively, the County assembly has been allocated a total of

Kshs 705 Million accounting for 16.8% of the county budget.

County Pending Bills

By 31st December 2015, the County government had a total debt amounting to Kshs.599

Million comprising of Kshs. 412.7 Million as pending bills and Kshs. 187.1 Million as

outstanding balance on Bank overdraft at Kenya Commercial Bank (KCB). In the 2015/16

budget, a total of Kshs 314 has been factored to offset the pending bills. The remaining

balance of Kshs 98 Million has been factored in the departments’ ceiling allocations for FY


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2016/17 to cater for their pending bills accrued from the FYs 2013/14 and 2014/15 as

outlined in the Debt Management Strategy Paper.

Risk to implementation of priorities 1. The county has been facing Low local revenue collection which might persist in the medium

term. This will however be mitigated through diverged strategies to increase revenue which

include: exploiting new revenue streams, revamping revenue collection systems and civic

education on the importance of paying rents and rates.

2. Increase in wage bill which might be occasioned by salary increment by the Salaries and

Remuneration Commission (SRC).This is however going to be mitigated through staff

rationalization

3. Unfavourable national and regional policies and agreements which allow free movement of

goods within the region

4. The transition period ends in March 2016 with no conclusive way forward on liabilities of

defunct local authorities which total to Kshs. 70,704,616 and Loans balance Kshs

21,635,037. In the event the county Government is compelled to settle the liabilities its

will greatly affect the county budget. This can be mitigated through staggering the re-

payments and negotiating with creditors.

5. The 2016/17 budget implementation will fall during a time when the County assembly will

have been dissolved in April 2017. This will affect implementation in case there is need for

a supplementary budget. This will be mitigated through prior planning.

6. The County governments have also not taken up some devolved functions like Gambling

and Casinos and Liquor and alcoholic drinks licensing and control of cultural activities. In

case these functions are taken up, the County will prepare the necessary legislation and

structure.

7. Irregular disbursement of funds from the National exchequer also poses a risk to the

implementation of these priorities. This might also create other problems such as accruing

pending bills. This will be mitigated by ensuring that departments come up with proper

cash flow projections


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Annex 1: Proposed medium term departmental baseline ceilings(County Executive Proposal)

APPROVED ESTIMATESCBROP CEILING APPROVEDCBROP CFSP PROJECTIONS

DEPARTMENT/ARM 2013/14 2014/15 2015/16 2016/17 SALARIES O/M AND DEVELOPMENTTOTAL ALLOCATION2017/18 2018/19 2013/14 2014/152015/162016/17 2017/182018/19

COUNTY ASSEMBLY 443,875,411 386,692,356 557,375,649 582,400,000 257,335,826 304,664,174 562,000,000 578,860,000 596,225,800 15.20 9.44 14.3 14% 13% 13% 13%

GOVERNOR 331,672,682 128,228,599 174,722,567 153,920,000 37,521,637 78,617,914 116,139,551 119,623,738 123,212,450 11.36 3.13 4.5 4% 3% 3% 3%

DEPUTY GOVERNOR 13,622,459 20,715,639 34,338,098 35,368,241 36,429,288 - 0.00 0.0 0% 1% 1% 1%

CPSB 20,949,163 20,530,054 43,810,349 62,400,000 31,705,901 23,104,448 54,810,349 56,454,659 58,148,299 0.72 0.50 1.1 2% 1% 1% 1%

ADMINISTRATION &DEVOLUTION 38,368,000 1,455,502,967 205,825,917 199,680,000 118,584,906 47,095,094 165,680,000 170,650,400 175,769,912 1.31 35.53 5.3 5% 4% 4% 4%

HEALTH 651,092,697 356,209,642 1,199,743,956 1,040,000,000 758,022,308 292,222,610 1,050,244,918 1,081,752,266 1,114,204,834 22.29 8.69 30.9 25% 25% 25% 25%

AGRICULTURE 119,815,295 44,845,942 58,397,590 112,320,000 76,006,416 46,813,584 122,820,000 126,504,600 130,299,738 4.10 1.09 1.5 3% 3% 3% 3%

LIVESTOCK AND FISHERIES 106,081,772 74,381,122 54,688,286 74,880,000 52,106,800 36,273,200 88,380,000 91,031,400 93,762,342 3.63 1.82 1.4 2% 2% 2% 2%

TOURISM ENVIRONMENT AND NATURAL RESOURCES1,814,973 - 56,727,134 66,560,000 41,536,730 29,023,271 70,560,000 72,676,800 74,857,104 0.06 0.00 1.5 2% 2% 2% 2%

TRADE AND COMMUNITY AFFAIRS 128,296,170 192,070,238 187,585,179 170,560,000 31,907,350 116,579,734 148,487,084 152,941,697 157,529,947 4.39 4.69 4.8 4% 4% 4% 4%

WATER AND IRRIGATION 164,988,048 361,715,008 167,914,578 345,280,000 43,521,856 301,758,144 345,280,000 355,638,400 366,307,552 5.65 8.83 4.3 8% 8% 8% 8%

VOI TOWN ADMINISTRATION 15,000,000 15,596,502 13,050,000 12,480,000 - 22,480,000 22,480,000 23,154,400 23,849,032 0.51 0.38 0.3 0% 1% 1% 1%

TAVETA TOWN ADMINISTRATION 15,000,000 14,222,502 14,400,000 16,640,000 - 16,400,000 16,400,000 16,892,000 17,398,760 0.51 0.35 0.4 0% 0% 0% 0%

LAND AND MINING 15,843,893 14,100,000 30,808,889 62,400,000 7,280,687 55,119,313 62,400,000 64,272,000 66,200,160 0.54 0.34 0.8 2% 1% 1% 1%

EDUCATION AND LIBRARY SERVICES207,835,154 236,324,250 439,613,365 457,600,000 207,637,675 197,962,325 405,600,000 417,768,000 430,301,040 7.12 5.77 11.3 11% 10% 10% 10%

PUBLIC WORKS AND INFRASTRUCTURE569,550,769 330,180,716 275,988,892 253,760,000 39,127,166 234,132,834 273,260,000 281,457,800 289,901,534 19.50 8.06 7.1 6% 7% 7% 7%

INDUSTRIALIZATION ENERGY 39,920,929 23,347,979 108,160,000 27,918,572 27,241,429 55,160,000 56,814,800 58,519,244 - 0.97 0.6 3% 1% 1% 1%

FINANCE AND PLANNING 90,196,746 426,492,235 381,967,518 440,960,000 108,113,220 167,846,780 275,960,000 284,238,800 292,765,964 3.09 10.41 9.8 11% 7% 7% 7%

BUILDING INSURANCE 50,000,000 50,000,000 51,500,000 53,045,000 - 0.00 0.0 0% 1% 1% 1%

STAFF MEDICAL INSURANCE COVER 50,000,000 50,000,000 51,500,000 53,045,000 1% 1% 1%

COUNTY STAFF MORTGAGE/CAR LOAN - - - - 108,106,581 108,106,581 111,349,778 114,690,272 - 0.00 0.0 0% 3% 3% 3%

COUNTY STAFF GRATUITY - - - - 100,000,000 100,000,000 103,000,000 106,090,000 - 0.00 0.0 0% 2% 2% 2%

COUNTY EMERGENCY FUND - 20,000,000 20,000,000 20,600,000 21,218,000 - 0.00 0.0 0% 0% 0% 0%

TOTAL 2,920,380,773 4,097,013,061 3,885,967,848 4,160,000,000 1,851,949,509 2,346,157,072 4,198,106,581 4,324,049,778 4,453,771,272 100.00 100.00 100.0 100% 100% 100% 100%

PROPOSED MEDIUM TERM FRAMEWORK DEPARTMENTAL CEILINGS

TOTAL EXPENDITURE

ESTIMATES PROJECTIONS ESTIMATES

% SHARE OF TOTAL EXPENDITURE

CFSP CEILINGS(2016/17)


30

Annex 2: Proposed medium term departmental baseline ceilings(County Assembly Ammendments)

TAITA TAVETA COUNTY ASSEMBLY CFSP AMMENDMENTS

DEPARTMENT

SALARIES O&M/DEVELOPMENT TOTAL SALARIES PENDING BILLSWARD EQULIZATIONO&M /DEVELOPMENT TOTAL % share

COUNTY ASSEMBLY 257,335,826.00 304,664,174.00 562,000,000.00 272,335,826.00 432,664,174.00 705,000,000.00 16.79%

GOVENOR'S OFFICE 37,521,637.00 78,617,914.00 116,139,551.00 37,521,637.00 30,415,612.00 40,202,302.00 108,139,551.00 2.58%

DEPUTY GOVENOR'S OFFFICE 13,622,459.00 20,715,639.00 34,338,098.00 13,622,459.00 10,000,000.00 8,715,639.00 32,338,098.00 0.77%

CPSB 31,705,901.00 23,104,448.00 54,810,349.00 31,705,901.00 20,104,448.00 51,810,349.00 1.23%

ADMINISTRATION&DEVOLUTION 118,584,906.00 47,095,094.00 165,680,000.00 118,584,906.00 16,596,854.00 20,498,240.00 155,680,000.00 3.71%

HEALTH 758,022,308.00 292,222,610.00 1,050,244,918.00 758,022,308.00 13,711,204.00 80,000,000.00 256,511,406.00 1,108,244,918.00 26.40%

AGRICULTURE 76,006,416.00 46,813,584.00 122,820,000.00 76,006,416.00 1,222,000.00 30,000,000.00 35,591,584.00 142,820,000.00 3.40%

LIVESTOCK AND FISHERIES 52,106,800.00 36,273,200.00 88,380,000.00 52,106,800.00 10,000,000.00 28,273,200.00 90,380,000.00 2.15%

TOURISM ENVIRONMENT 41,536,730.00 29,023,271.00 70,560,001.00 41,536,730.00 22,023,271.00 63,560,001.00 1.51%

TRADE AND COMMUNITY AFFAIRS 31,907,350.00 116,579,734.00 148,487,084.00 31,907,350.00 9,744,323.00 40,000,000.00 60,835,411.00 142,487,084.00 3.39%

WATER AND IRRIGATION 43,521,856.00 301,758,144.00 345,280,000.00 43,521,856.00 299,644.00 100,000,000.00 150,458,500.00 294,280,000.00 7.01%

VOI TOWN ADMINISTRATION 22,480,000.00 22,480,000.00 20,480,000.00 20,480,000.00 0.49%

TAVETA TOWN ADMINISTRATION 16,400,000.00 16,400,000.00 15,000,000.00 15,000,000.00 0.36%

LAND AND MINING 7,280,687.00 55,119,313.00 62,400,000.00 7,280,687.00 30,119,313.00 37,400,000.00 0.89%

EDUCATION AND LIBRARY SERVICES 207,637,675.00 197,962,325.00 405,600,000.00 207,637,675.00 1,393,504.00 80,000,000.00 130,568,821.00 419,600,000.00 9.99%

PUBLIC WORKS AND INFRUSTRICTURE 39,127,166.00 234,132,834.00 273,260,000.00 39,127,166.00 2,709,760.00 60,000,000.00 140,423,074.00 242,260,000.00 5.77%

INDUSTRILIZATION AND ENERGY 27,918,572.00 27,241,429.00 55,160,001.00 27,918,572.00 1,488,040.00 18,153,389.00 47,560,001.00 1.13%

FINANCE AND PLANNING 108,113,220.00 167,846,780.00 275,960,000.00 108,113,220.00 10,456,516.00 87,390,264.00 205,960,000.00 4.91%

BUILDING INSURANCE 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 1.19%

STAFF MEDICAL INSURANCE COVER 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 1.19%

COUNTY STAFF MORTGAGE AND CAR LOAN 108,106,581.00 108,106,581.00 100,106,581.00 100,106,581.00 2.38%

COUNTY STAFF GRATUITY 100,000,000.00 100,000,000.00 100,000,000.00 100,000,000.00 2.38%

EMERGENCY FUND 20,000,000.00 20,000,000.00 15,000,000.00 15,000,000.00 0.36%

1,851,949,509.00 2,346,157,074.00 4,198,106,583.00 1,866,949,509.00 98,037,457.00 400,000,000.00 1,833,119,617.00 4,198,106,583.00 100.00%

CFSP 2016/17 CEILINGS BAC CFSP RECOMMENDED CEILINGS


31

Annex 3: Summary of Revenue allocation to County Departments /Arms 2014/2015-2015/2016

DEPARTMENT NAME 2014/15 BUDGET % TO TOTAL BUDGET 204/15

2015/2016 BUDGET

% TO TOTAL BUDGET 2015/16

COUNTY ASSEMBLY 538,777,367 12.99 557,375,649 14.34

ADMINISTRATION & DEVOLUTION 1,348,904,238 32.52 233,275,917 6.00

GOVERNOR'S & DEPUTY GOVERNOR'S OFFICE

146,428,599 3.53 174,722,567 4.50

COUNTY TREASURY 335,736,624 8.10 381,967,518 9.83

EQUILIZATION OF WARDS INFRASTRUCTURE

75,531,569 1.82 -

AGRICULTURE,LIVESTOCK, VETERNINARY,FISHERIES

118,227,064 2.85 113,085,876 2.91

WATER SERVICES 353,351,973 8.52 167,914,578 4.32

EDUCATION & YOUTH TRAINING(POLYTECHNICS)

241,154,250 5.81 439,613,365 11.31

HEALTH 406,516,167 9.80 1,199,743,956 30.87

TRADE AND COMMUNITY AFFAIRS 158,463,238 3.82 189,585,179 4.88

COUNTY PUBLIC SERVICE BOARD 22,530,054 0.54 43,810,349 1.13

ICT 39,920,929 0.96 21,347,979 0.55

ROADS& TRANSPORT,HOUSING,PUBLIC WORKS

270,352,247 6.52 275,988,892 7.10

DEFUNCT LOCAL AUTHORITIES 44,488,266 1.07 -

LAND AND PHYSICAL PLANNING 14,100,000 0.34 25,899,875 0.67

TOURISM ENVIRONMENT and NATURAL RESOURCES

32,907,000 0.79 61,636,148 1.59

TOTAL 4,147,389,585 100.00 3,885,967,848 100.00


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Annex 4: Total Local revenue Performance and projections by Revenue Type and Month

APPROVED % ON

REVENUE TYPE DEPARTMENT 2015-2016 Jul-15 Aug-15 Sep-15 GRAND TOTAL Oct-15 Nov-15 Dec-15 GRAND TOTAL TOTALS VARIANCE COMPLIANCE

APPLICATION FOR SBP/RENEWAL TRADE & COMM 839,991 179,300.00 33,800.00 18,900.00 232,000 64,350.00 6,800.00 28,150.00 99,300 331,300 508,691 61%

IMPOUNDING CHARGES ADM & DEV 593,965 - 4,220.00 - 4,220 14,000.00 - 2,100.00 16,100 20,320 573,645 97%

SALE OF TENDER DOCUMENTS FINANCE 200,000 - - - - - - - - - 200,000 100%

HIRE OF TOWN HALL CHAMBERS TRADE & COMM 339,000 26,500.00 27,000.00 24,000.00 77,500 16,200.00 - 15,000.00 31,200 108,700 230,300 68%

HIRE OF COUNCIL'S EQUIPMENT WORKS 29,142 225.00 1,650.00 - 1,875 - - 460.00 460 2,335 26,807 92%

CLAMPING &DECLAMPING FEES ADM&DEV 257,673 - - - - 1,000.00 - 6,000.00 7,000 7,000 250,673 97%

HIRE OF STADIUM TRADE& COMM 173,858 3,000.00 7,880.00 - 10,880 300.00 - 1,000.00 1,300 12,180 161,678 93%

ADVERTISEMENT/PROMOTION WORKS 2,060,000 198,700.00 28,400.00 35,500.00 262,600 116,700.00 13,500.00 119,320.00 249,520 512,120 1,547,880 75%

SINGLE BUSINESS PERMITS TRADE &COMM 31,661,326 3,352,319.52 1,814,075.82 1,963,618.00 7,130,013 770,527.00 702,575.00 219,605.00 1,692,707 8,822,720 22,838,606 72%

SIGNBOARDS WORKS 3,600,674 3,000.00 5,440.00 3,700.00 12,140 46,000.00 4,000.00 164,600.00 214,600 226,740 3,373,934 94%

LAND RATES LAND 34,503,486 526,307.00 3,572,399.00 2,714,637.00 6,813,343 125,677.00 205,196.00 570,275.00 901,148 7,714,491 26,788,995 78%

GROUND RENT LAND 4,859,493 133,522.00 400,042.00 175,150.00 708,714 28,004.00 39,835.00 123,270.00 191,109 899,823 3,959,670 81%

RATES CLEARANCE CERTIFICATE LAND 3,090,000 15,000.00 10,000.00 5,000.00 30,000 5,000.00 10,000.00 - 15,000 45,000 3,045,000 99%

MARKET STALLS/SLABS TRADE & COMM 1,030,000 1,691,555.00 34,850.00 54,800.00 1,781,205 30,300.00 26,200.00 43,860.00 100,360 1,881,565 (851,565) -83%

HOUSE RENT WORK & HOUSING 8,708,238 670,776.00 455,900.00 50.00 1,126,726 616,915.00 - 585,050.00 1,201,965 2,328,691 6,379,547 73%

SISAL CESS FINANCE 3,847,668 - 1,000.00 12,000.00 13,000 14,900.00 116,500.00 119,000.00 250,400 263,400 3,584,268 93%

SAND CESS ENVIRONMENT 5,208,906 13,010.00 56,000.00 186,280.00 255,290 136,050.00 166,600.00 - 302,650 557,940 4,650,966 89%

BUS PARK FEES FINANCE 16,784,225 1,873,745.00 1,669,140.00 1,629,635.00 5,172,520 1,304,881.00 1,065,280.00 303,430.00 2,673,591 7,846,111 8,938,114 53%

TAXI,LIGHT TRANSPORT&TUKTUK CABSFINANCE 2,160,069 - - - - - - 9,350.00 9,350 9,350 2,150,719 100%

MOTORCYCLE CURB FINANCE 2,280,027 - - - - - - - - - 2,280,027 100%

DAILY PARKING FEES FINANCE 5,911,857 3,300.00 - - 3,300 185,690.00 156,810.00 851,180.00 1,193,680 1,196,980 4,714,877 80%

RESERVED PARKING FEES FINANCE - - - - - - 45,550.00 45,550 45,550 (45,550)

MARKET FEES TRADE& COMM 15,684,306 488,810.00 503,457.00 656,275.00 1,648,542 1,262,839.00 945,435.00 2,064,535.00 4,272,809 5,921,351 9,762,955 62%

APPROVAL OF BUILDING PLANS WORKS 6,027,896 7,150.00 60,500.00 623,065.00 690,715 91,250.00 136,055.00 361,040.00 588,345 1,279,060 4,748,836 79%

RENOVATION FEES WORKS 71,288 7,000.00 10,000.00 105,000.00 122,000 4,000.00 11,500.00 11,000.00 26,500 148,500 (77,212) -108%

RENEWAL OF BUILDING PLANS WORKS 148,820 2,500.00 - 2,000.00 4,500 - 50,000.00 7,000.00 57,000 61,500 87,320 59%

PLOT TRANSFER FEES LAND 1,217,409 30,000.00 10,000.00 5,000.00 45,000 25,000.00 20,000.00 20,000.00 65,000 110,000 1,107,409 91%

DRAWING PLANS FEES WORKS 403,755 - - - - - - - - - 403,755 100%

PLOT FENCING FEES WORKS 202,797 4,000.00 2,000.00 - 6,000 - 4,000.00 4,000.00 8,000 14,000 188,797 93%

OPENING OF FILES LAND - 3,300.00 7,500.00 6,000.00 16,800 2,700.00 900.00 3,000.00 6,600 23,400 (23,400)

APPLICATION FOR EXHAUSTER WATER& SEWARAGE 128,418 3,600.00 4,500.00 4,550.00 12,650 - 300.00 - 300 12,950 115,468 90%

BURIAL SITE FEES WORKS 141,942 10,600.00 10,000.00 10,000.00 30,600 600.00 10,500.00 2,400.00 13,500 44,100 97,842 69%

EXHAUSTER SERVICES WATER & SEWARAGE 2,060,000 46,000.00 44,000.00 54,000.00 144,000 - 1,000.00 - 1,000 145,000 1,915,000 93%

MILEAGE-EXHAUSTER WATER & SEWARAGE 4,120,000 4,600.00 22,800.00 - 27,400 - - - - 27,400 4,092,600 99%

ANNUAL LEASE FEES LANDS 934,725 - - - - - - - - - 934,725 100%

PUBLIC TOILET FEES FINANCE 3,605,000 53,475.00 55,860.00 - 109,335 196,655.00 116,580.00 171,770.00 485,005 594,340 3,010,660 84%

GENERAL CESS FINANCE 30,195,035 1,071,415.00 1,291,210.00 633,820.00 2,996,445 1,233,159.00 1,114,221.00 933,136.00 3,280,516 6,276,961 23,918,074 79%

COUNTY GOVERNMENT OF TAITA TAVETA LOCAL REVENUE

FIRST QUARTER SECOND QUARTER


33

PLOT RENTS LANDS &MINING 10,667,580 16,810.00 25,010.00 14,140.00 55,960 5,710.00 - - 5,710 61,670 10,605,910 99%

OTHER LOCAL LEVIES FINANCE -

NATURAL RESOURCES EXPLOITATION LANDS& MINING 7,625,878 534,145.00 592,375.00 287,085.00 1,413,605 82,950.00 83,000.00 299,450.00 465,400 1,879,005 5,746,873 75%

SOCIAL PREMISES USE CHARGES TRADE & COMMUNITY 2,060,000 158,250.00 166,350.00 207,000.00 531,600 178,100.00 185,805.00 13,000.00 376,905 908,505 1,151,495 56%

SLAUGHTER HOUSES ADMINISTRATION LIVESTOCK 3,090,000 79,720.00 236,030.00 36,630.00 352,380 89,300.00 135,790.00 203,400.00 428,490 780,870 2,309,130 75%

TECHNICAL SERVICES FEES WORKS - - - - - - - - - - -

INTEREST & REVENUES FROM FINANCIAL INVESTMENTS FINANCE 11,330 - - - - - - - - - 11,330 100%

ENVIRONMENT & REFUSE COLLECTIONENVIRONMENT 864,683 - 31,195.00 33,200.00 64,395 120,000.00 118,400.00 362,175.00 600,575 664,970 199,713 23%

ADMINISTRATIVE SERVICE FEES ADM& DEVOL 50,000 22,000.00 52,000.00 1,000.00 75,000 20,800.00 - - 20,800 95,800 (45,800) -92%

WATER SUPPLY ADMINISTRATION WATER 50,000 - - - - - - - - - 50,000 100%

OTHER LOCAL LEVIES FINANCE 4,532,000 600,787.00 173,646.00 283,450.00 1,057,883 689,050.00 97,600.00 148,300.00 934,950 1,992,833 2,539,167 56%

69,000.00 24,000.00 2,400.00 95,400 1,400.00 200.00 - 1,600 97,000 (97,000)

9,600.00 300.00 - 9,900 - - - - 9,900 (9,900)

-

11,913,021.52 11,444,529.82 9,787,885.00 33,145,436 7,480,007.00 5,544,582.00 7,811,406.00 20,835,995 53,981,431 (53,981,431)

222,358,866 11,913,021.52 11,444,529.82 9,787,885.00 33,145,436 7,480,007.00 5,544,582.00 7,811,406.00 20,835,995 53,981,431 168,377,435 76%

DEVOLVED FUNCTIONS DEPARTMENT BUDGET JULY AUGUST SEPTEMBER TOTAL OCTOBER NOVEMBER DECEMBER TOTAL TOTALS VARIANCE % COMPLIANCE

HEALTH-HOSPITALS HEALTH 59,083,203 4,620,407.00 3,063,520.00 2,334,760.00 10,018,687 1,702,175.00 2,415,135.00 1,885,395.00 6,002,705 16,021,392 43,061,811 73%

PUBLIC HEALTH HEALTH 18,166,797 516,000.00 122,500.00 88,500.00 727,000 99,790.00 64,465.00 186,635.00 350,890 1,077,890 17,088,907 94%

LIQUOR LICENCES ADM & DEVOL 6,624,960 - 30,000.00 3,000.00 33,000 3,000.00 - 3,000.00 6,000 39,000 6,585,960 99%

WEIGHT &MEASURES TRADE 1,030,000 - - - - - - - - - 1,030,000 100%

SURVEY AND MAPPING LAND 103,000 10,400.00 2,100.00 - 12,500 - - - - 12,500 90,500 88%

PHYSICAL PLANNING LAND 206,000 3,000.00 2,000.00 - 5,000 16,200.00 - - 16,200 21,200 184,800 90%

LIVESTOCK AND VETERINARY LIVESTOCK & FISHERIES 1,957,000 628,765.00 83,375.00 38,800.00 750,940 - - - - 750,940 1,206,060 62%

FISHERIES LIVESTOCK & FISHERIES 103,000 - - - - - - - - - 103,000 100%

18,200.00 - 8,400.00 26,600 - - - - 26,600 (26,600)

SOCIAL SERVICES TRADE & COMM 772,500 - - 772,500 100%

MINING CESS LAND& MINING - - - - - - - - - - -

5,796,772 3,303,495 2,473,460 11,573,727 1,821,165 2,479,600 2,075,030 6,375,795 17,949,522 0%

GRAND TOTAL 310,405,326 17,709,794 14,748,025 12,261,345 44,719,163 9,301,172 8,024,182 9,886,436 27,211,790 71,930,953 238,474,373 8%


34


35

Annex 5: Summary of Views from ward meetings

WARD ISSUE RAISED RECOMMENDATIONS


36

Bomeni Agriculture In future, staff from the relevant departments should come for the PP as they will be better placed to answer some technical questions which concern the same

Livestock

Governor’s Office at Mgeno

Health

Bura Water Supply of water tanks to hard hit areas with water scarcity

Irrigation to be prioritized

Training of water committees in order to be able to run water projects e.g. Nyangoro water project

Education Increase the amount for bursaries and loans

Members supported construction of the ECDE classes

Agriculture Increase seed and fertilizer supply to farmers at the right time and random follow up of the fertilizer issued out

Increase the number of tractors for ploughing and reduce the charges for hiring by subsidizing the amount

Increase the numbers of extension officers

Construction of cereal boards to enable safe storage

Health Members suggested that in order to reduce the burden of communicable diseases they need to equip all the dispensaries

Every Sub county to have scanning machines and equip it with enough medicines

Community health workers to be employed and enabled

Public works and infrastructure

Grading and maintaining of all the county roads and slabbing in areas that are steep

Improving of quality work done by contractors and tasking contractors who do shoddy work

Land planning and Mining Policy to be enacted to help small scale miners

County to benefit 100% from revenue accrued from mining

Livestock and fisheries Farmers who do fish farming to be enabled with fingerlings and market for fish

Increase milk production by sensitization of farmers

Market for livestock products

Tourism environment and natural resources

Locals to benefit 100% from parks


37

County government to help in protecting the water catchment area

Trade and community affairs Members supported the idea of having 4 Subcounty stadiums to help nurture talents

More money to be channel to Datu Sawazisha funds

Industrialization ,energy, research and ICT

The public requested the county government to enable growth of ICT infrastructure

Administration and devolution

The public requested the county government to enable services t grassroots level “huduma mashinani”

Finance and planning

Challa Water On water and irrigation; the members of public suggested, all the public institutions should be connected with clean and safe

water to drink, just like the way national government is connecting all the public schools with power.

Agriculture On Agriculture, the members of public suggested that the department should supply the farmers in the dry areas of the county

such as Chala ward with drought resistant seeds such as sorghum, millet, green grams, sun flour and the special type of rice that

grows in in dry areas which requires less amount of water.

Livestock On Livestock and fisheries; the members of the public noted that the number of extension officers is too small in that the farmers

are forced to engage the services of quark veterinary officers; they therefore suggested that employment of extension officers

be given a priority in the department.

Trade On trade and community affairs; the public wanted clarifications on how sports will be improved.

Public Works and Infrastructure

On Public works and Infrastructure; the members of the public proposed that, grading roads should go hand in hand with murraming.

Tourism On Tourism and Community affairs; the public suggested that the old physical features, historical sites and the shrines should

all be identified and documented. This will boost tourism as well as well as increase the county’s revenue base.

Chawia Health · Equipping Mwatate sub county hospital with X-ray services

· Construction of dispensaries at Mwachabo, Mwemba, Mkengerenyi and Mwawache

· Employment of more staff at Mwatate Sub county hospital and Manoa dispensary

· Enough medical supplies at the hospital and dispensaries

Water · Completion of phase two of Mwaroko Iyombonyi Sinai water project

· Treatment of water from mdeminyi water project

· Distribution of water from mdeminyi water project


38

· Completion of Ngangu water project (Fencing and piping)

· Revitalization of Mwakimori water project

· Completion of water harvesting project in Chawia ward

· Check dams at Maghombonyi and Iyombonyi

· Funds to revitalize water catchment areas and biodiversity

· Complete mapping and surveying of all water catchment areas

Education · Roll out feeding program to all ECDE Centres in Chawia ward

· Upgrade all school play grounds in the ward

· Modern ECDE Centre at Mwawache primary school

Tourism and natural resources · Fencing of Chawia forest

· Employment of local youth as forest guards

Agriculture · Provision of macadamia and Irish potatoes seedlings

· Provision of farmyard manure

· Provision of funds to enable grafting of macadamia

Trade and community affairs · Construction of social hall at Chawia sub location

· Construction of a training institute for PWDs

· Help PWDs to get their membership IDs

Lands and mining · Provide funds to facilitate issuance of title deeds

· Issuing of mining consent to be devolved

Roads and infrastructure · Murraming of all graded roads

Mahoo Water & Irrigation: · Installation of a more powerful water pump & a generator at Njoro springs to act as back up when there’s no electricity.

· Completion of Lake Challa Borehole (Nakuruto Borehole) ie storage tank & piping

· Mahoo girls secondary school borehole project to be completed to serve the neighbouring community ie piping & storage tank

· Malkiloriti B borehole project to be completed ie piping & storage tank big enough to support the community water needs

· Malikiloriti A borehole project to be completed ie piping & storage tank that can support the community

· Lessesia Water project to be completed ie pipeline & storage tank on the hill

· Mama Wajane water project to be completed ie Pipeline & storage tank


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· Rainwater storage tank at Malkiloriti Dispensary

· Rehabilitation of check dams at Mrimba & Krimeri

· Rainwater harvesting to be emphasized/promoted, this will reduce pressure on the existing domestic water supplies

· Protection of Water catchment areas

Health: · Complete & operationalize Malkiloriti Dispensary N/B; External toilet to be budgeted too

· Improve service delivery in all Health centres by employing more medical personnels

· Improve servive delivery in all health centres by equipping the facilities withal the basic tools & equipment ie drugs, beds, beddings, nets, cupboards, among other items

· only one mortuary chamber working in Taveta hence need for more chambers

· Install intercom within Taveta hospital to improve service delivery & staff communication within the facility

· Need for change of staff attitude especially when handling patients (customer service)

· Construction of staff quarters at malkiloriti Dispensary

Education: · Re-opening & revamping of Jua Kali center at Bura Ndogo, Taveta to train & equip youths with the critical skills

· Provide free ECDE including meals

· Upgrade Taveta Youth Polytechnic into a state of the art polytechnic specializing in trades like mechanic, electrical, plumbing, masonry, basic computer, tailoring, welding, refrigeration among other trades that are relevant to the job market

· Construct & equip one Library in Taveta

· Construct an ECDE at Lessesia B and Malkiloriti B villages

· Vigorous Civic education on the importance of youths polytechnic esp to the youths

Tourism, Environment & Natural Resources:

· Construction of public toilets at timboni (Quarries)

· Protect & preserve our historical sites eg ACK Church Taveta, Salaita etc to attract tourist

· Protection of our shrines eg Lake Challa, Kishota ngónji among others

Public Works & Infrastructure: · Complete all pending road projects ie road projects that were donehalfway eg Luworo rd, miembeni – mahoo rd, Harambee Chakaleri rd, Lessesia rd, Malkiloriti A road, Leshamta Meroshi rd, Majengo – mahoo sec rd etc

· Costruction of Langata Bridge to improve quarry accessibility

· Open up quarry access roads from Langata road

· Fencing of Malkiloriti Dispensary land

· Construct slabs to Taveta old new Market where stalls have been constructed

· Construct & install culverts at various roads in Mahoo roads


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Agriculture, Livestock & Fisheries:

· Provision of high value drought resistant crops in time

· Improve accessibility of subsidized fertilizers to farmers in Taveta

· Procure more farm tractors for the sub counties

· Promotion of fish farming through fish ponds

· Motorcycles for extension officers to make them more accessible

· Improve accessibility of vetnary services

· Improve pesticide accessibility

Industrialization: · Subsidize Rural electrification as the current cost is too expensive

Mining: · Identify all mining sites inTaveta & the minerals available

Marungu Water 1. The residents complained that the project indicated as murramming in Maungu Town, was not complete as indicated.

Health 2. The tank in Marungu has already cracked and requested piping should not be done until renovation of the tank is done.

Education 3. The community also requested that they want accountability of WDF 20m.


4. Under water, the Marasi –Marungu water catchment project should be given the first priority. It was also emphasized that water should be given the first priority.

Agriculture 5. Leaders should make sure they attend meetings

ICT and Industrialization 6. Committees should be strengthened and independent so that they can also follow up on projects

Lands and Mining 7. Human wildlife conflict was mentioned to be a major issue to be followed up on.

Livestock and Fisheries 8. In Education sector, polytechnics and ECDE centres should be given priority.

Trade and community affairs 9. The Mwanda and Miasenyi water tanks are already cracked so piping should not be done.

Governor and Deputy Governors office

10. Sub standard materials are being used by contractors in constructing.

Finance and planning

Mata Education Youth polytechnic to be constructed within the ward.

Water Some of the areas still need fresh water while others like mata still accessing both domestic and animals water is a challenge.

Livestock The county government to negotiate with national government to have a ranch from piece of the national park land to enhance livestock production.


The construction of the roads especially Jipe road and the roads within the scheme areas especially Lumi irrigation scheme grogan canal, kimondia road and bachensign road. This will minimize the transport cost

Agriculture The county government agriculture department to work on the draining of kitivo farms.


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Lands and Mining The county government to intervene on the lesuyai land dispute.

Mbololo Water The larger Mbololo water project which runs from Ngolia should be put into consideration since it’s the only hope for the

Mbololo people. The pipes have been lying on the ground for almost a year and the community continues suffering.

Health Tausa health Centre needs to be funded this coming year for the Wards to come operational they were built long time and needs some renovations since the ceilings have started falling down.

needs some renovations since the ceilings have started falling down.

The staff houses are inhabitable and needs to be built a fresh to accommodate the staff as for now they are forced to rent out of the facility and in case of emergencies this becomes difficult


Most of the county roads in Mbololo are impassible there is need for a team from the department do an assessment of all

the roads so as to identify the ones which needs urgent intervention. Tausa mwangele, mwakiki, mwambolembole etc.

The road between Moi hospital and mwakingali has been repaired twice in one year and the culverts washed away by rains

a permanent solution should be looked into to avoid wasting resources.

Education and Libraries Furnish and equip all the ECDE classrooms.

Come up with strategies to assist in improving the performance of all primary schools.

Assist in school feeding programs

Equip the twin workshops at Tausa and Mraru

Administration and devolution Set aside funds for civic education for the pubic are not aware and conversant with the constitution in relation to exercising their rights.

This should be a continuous process throughout the year.

First track the construction of the ward offices and ensure the structures are complete by bringing on board the Village administrators.

Ensure all the bills which have gone through the public be first tracked to become law for the County to move on.

Agriculture The department ensures they set aside funds for training of farmers on the new technologies before issuing them with breeds and seeds.

Follow ups be done to ensure sustainability of the projects unlike the past years most projects cannot be traced and have no impact to the community.

Livestock and Fisheries

Trade and community affairs Increase the Datu allocation since more groups have registered

Implement as per the Act in issuing the individual loans

Come up with friendlier and easy to adopt strategies to tame the youths

Lands and mining The department set aside funds for adjudication of all the settlements in the ward.

Resolve all the land disputes for the community to have room for investments


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Mwatate EDUCATION Both polytechnics should be upgraded together.

v Polytechnics in mwatate which offer more courses to cater for more students to attend daytime classes’ courses suggested include business courses.

WATER AND IRRIGATION Water supply in kipusi, only four boreholes. Public suggested more boreholes and should have water. Mzwanenyi residents need to know the position or status of mlambenyi bore hole.

A Shed should be put up at water selling points/centres.

Singila residents buy water at 10/- and the bill comes to 50,000/-.

TRADE AND COMMUNTY AFFAIRS

Market to have good toilets and charged 5/- not 10/-.

Public questioned same charges for shops and kiosks.

Revenue casual work for 3 months, can they work for more months

Uniform making be included in business centres, also masonry in building

LANDS AND MINING Revenue from mining

Land mwachabo, mkengerenyi invaded by outsiders owners to be issued with title deeds.

Difficult to access land management board, ways should be created to enable citizen access them.

ADMINISTRATION AND DEVOLUTION

Security should be put in place for nyumba 10{National government}, street light in certain areas only. Need for more street lights.

PUBLIC WOKS To renovate Two impassable roads 1)kizingo – mwaghoro road

2) mdiminyi – majegho road

Ngolia PUBLIC WOKS The people requested the County government provide them with a generator to help them power their milk chilly tank during

electricity power black outs. They asked for assistance with equipments such as alco guns, milk cans etc, which will help to make

the people financially stable and build for them a community milk collection centre.

1. The people proposed the following roads to be repaired;

(a) Mwamrange to Mbembe road to be repaired up to irindinyi area.

(b) They want a short cut road to be repaired from Wongonyi throughMchanga to Allan Girls up Mwambirwa.

The people asked the County government to provide more street lights to light up the shopping centre.

Trade They also proposed that the County government build a resource centre at Wongonyi that should be equipped with recreational/sports facilities (e.g sports ground), to help the people especially the youth.

l/sports facilities (e.g sports ground), to help the people especially the youth.

Education The people also proposed to have a library built and be fully equipped to encourage people to read and study and promote

education in the area.


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Agriculture The farmers in Wongonyi requested the County government to Consider constructing a medium size fruits factory to make use

of the many fruits in the area such as mangoes, oranges ,guavas, avocados etc which go to waste every year because of lack of

a ready market.

Water and irrigation The people requested the County government to provide them with tanks which will be used to store and distribute water to

various farms for irrigation purposes. They want to be assisted to grow food and cash crops and fodder for cattle.

The people asked the County government to dam the Mwalui river downstream at Mwakuni to store the water for irrigation,

domestic and cattle uses.

Rong'e Water and irrigation Quick win projects in Water sub sector spread throughout the County to provide water for domestic, livestock and agriculture use.

Health Moi County Referral Hospital to be fully equipped and specialized to handle non-communicable diseases and provide Critical Care Services including ICU and HDU.

Lands and Mining Enhanced Land Planning and enhancement of revenue streams through growth of townships including new revenue streams at Wananchi Settlement Scheme mining zone

Education Upgrade one Youth Polytechnic(Mselia Polytechnic) to also become a Business Center and Talents Academy

Convert one Youth Polytechnic (Taveta Youth Polytechnic) into a State-of-the-art Polytechnic specializing in particular trades.

Saghala Health Services § Improve laboratory services

§ Improve ambulance services through Purchase of more ambulances at least two per sub county

§ Give incentives to community health volunteers

§ Construction of a cancer center for screening at Moi referral hospital

§ Construction of staff houses at the health center and the dispensaries

Water and Irrigation § Provide access to enough water to heath centers and in the lower zone( Mwambiti and Kajire)

§ Revisit water designs for all water projects in Sagalla ward

§ Train water management committees on effective ways of conserving and managing water catchments areas. This will ensure proper water management

§ Improve rock catchments

§ Rehabilitate and expand Marapu water project to ensure there is access to water in the lower zone( Marapu, Rahasi and Talio Nyika)

§ Strengthen water providers especially TAVEVO

§ Construct water reserves for storage purposes

Education and Libraries § Upgrade youth polytechnics in Sagalla ward

§ Construct Jua Kali shades for artisans in polytechnics

§ Construction of more youth polytechnics especially in the lower zone of Sagalla ward


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Administration and devolution § Recruit village administrators

Land and mining § Conduct survey on ranches within the county government

Finance and planning § Put in structure proper monitoring and evaluation programmes

Agriculture, Livestock and fisheries

§ Upgrade the existing water pans

Werugha Water and irrigation 1. Desilting of Kishenyi Dam should be given first priority as it has been long overdue yet is a high impact and high visibility project. Fencing of the dam should be done concurrently.

2. The Fombe – Msidunyi Water Project and Mashangi Water Tank should be given priority since it was already budgeted

for in 2015/16 FY and the only hinderance was the lack of a location to build the tank. The CECM and CCO for water should

call for a public baraza at Mashangi in order to come up with a memorandum concerning the site of the tank.

3. Kichingima Water project and the Rehabilitation of Kichingima Water Catchment should also be given priority since it was already budgeted for and yet has not started.

4. Mazizi Water Project in Mbokole will serve a large section of the population hence should be considered for next financial year.

5. Malela Water Project, which is a fairly new project, should be considered for the next CIDP for funding.

6. An idea by Mr. Nashon Gadi at Msangarinyi Village in Mlondo, is that with 10 bags of cement and a water pump costing approx. Ksh. 100,000, a small intake can be built at the river to capture and pump water to a tank that will then distribute to the nearby community

Trade 1. Kese Open Air Market which is stalled due to pending bills to be revived. In the meantime the contractor should cover the 30 foot pit/man hole that is a serious hazard to the residents of that area.

PUBLIC WOKS 1. The following road projects should be prioritized:

· Roads in Kighala Village

· Mlondo – Werugha Road

· Msangarinyi – Donga

· Fombe – Kifufutonyi – Maringo – Wumingu

· Main road at Mdundonyi

· Culvert at Kipotonyi Nursery School

Health 1. Makandenyi Health Center Maternity Wing which is stalled due to pending bills should be revived since it is a high impact high visibility project.

Wumingu kishushe

Water and irrigation 1. Completion of all stalled and delayed projects to be prioritized.

2. Desilt Kishenyi dam to increase access to water for domestic use.

3. Rehabilitate existing water lines before introducing new water projects.

4. Separate Kishushe and Sangenyi water lines from the source to solve the existing conflicts of sharing.


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5. Complete stalled water projects.

Agriculture 1. More extension officers.

2. Construct food storage facilities for longer preservation.

Livestock, veterinary and fisheries

1. More extension officers offering AI services needed.

2. Introduce dairy goat project at the lower zone since there are farmers already keeping them and benefiting from them.

3. Introduce bee-keeping in the lower zones as an alternative to fish farming.

Health services 1. Complete Paranga dispensary before embarking in any major health project in the ward.

2. Upgrade Kishushe dispensary.

Trade and community affairs 1. Continue to empower Youth, Women & vulnerable members of the society groups in terms of loans and grants.

Education and library services 1. Improvement of infrastructure and provision of equipment and instructional materials in ECDE centres and youth polytechnics.

Tourism environment and natural resources

1. Promote the peoples culture.

2. Encourage KWS to recruit local community to serve at the tsavo national park for the community to benefit from the sector.


1. Installing culverts in various roads that are constantly damaged by rains.

2. Completion of all pending projects for instance roads, playgrounds, street lights and stage sheds.

Land planning and management.

1. Ensure areas without land titles are issued with the same.

Administration and devolution 1. Improvement of public participation by giving adequate timing for members of the public to understand bills, having bills in Kiswahili language.

2. Construct and renovate Ward Administration offices.

Finance and planning 1. Educate the public on the importance of paying taxes to government to increase local revenue.

2. In monitoring and evaluation, in order to strengthen the continuous tracking of progress in the implementation of programmes also encourage the community to conduct social auditing.

Governor and deputy governor’s office.

No varying proposals made.

County public service board Advertise for vacancies as wide as possible.

County assembly Priorities on passing of bills and policies.

Minimize stalemate on the budget making process.


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