Kwale County Budget Review and Outlook Paper 2021/2022

Abstract

This 2022 CBROP has been prepared in accordance with the provisions of Section 118 of the PFM Act, 2012. The paper provides a review of the county government’s fiscal performance in FY 2021/2022 including compliance to the fiscal responsibility principles and the financial objectives set in the PFM Act 2012. It also gives updates on the macroeconomic environment and outlook for FY 2022/2023 and provisional sector ceilings projections. This paper is prepared against a backdrop of contracted growth of the Kenyan economy owing to the negative impact of the war in Ukraine. The economy is vulnerable to the commodity price shocks resulting from the Ukrainian war, particularly through fuel, fertilizer, wheat and other food imports. This coupled with the tightening of global financing conditions and adverse weather conditions impacting on food production have led to a worsening economic situation. Kenya recorded an economic growth of 7.5 percent in 2021 due to increased economic recovery efforts from the COVID-19 pandemic but is projected to decline to 5.5 percent in 2022.