Nairobi City County Budget Review and Outlook Paper 2021

Abstract

The Financial Year 2020/2021 was a unique year, characterized by tough health challenges due to the Covid-19 pandemic, which in turn led to diminishing fortunes economically. The content of this BROP is evident enough that the consequence of the pandemic had far reaching impacts, not only to the household level where individuals suffered economically for basic needs, but also to the county government which could not meet its revenue targets and therefore affecting implementation of the budget. Largely the continued effects of the pandemic will continue to affect the domestic economy and by extension Nairobi as a county. The implementation of the FY 2020/2021 budget was not successful as envisaged, and achievement of county development targets ware largely hampered by falling own source revenues and delayed transfers by the National Treasury. Total revenue targets including national treasury transfers amounted to Kshs 29.6Billion against target of Kshs 37.8billion in the FY 2020/2021. This was largely attributed to nonperformance of own source revenues which the outturn fell short of target by about 40%. Total actual expenditure based on transfers from the County Revenue Fund and spending from Appropriations In Aid amounted (Liquor Board) amounted to Kshs 30.1billion. The transferred functions accounted for over 33% of the total. In the last supplementary budget an amount in excess of 10.8 billion was allocated for payment of pending bills. The County Government, however, remain resolute to increase spending towards development, in order to achieve the development targets as espoused in the CIDP 2018-2022. Further, the county remains committed to ensuring prudent management of public resources and operating within the fiscal responsibility principles stated in the Public Finance Management regulations.