Bomet County Budget Review and Outlool Paper 2024

Abstract

The County Budget Review and Outlook Paper (CBROP) 2024 has been developed in accordance with section 118 of the Public Financial Management Act, 2012. The PFM law envisages production of a CBROP by the end of September each year. This review document covers the fiscal year ending 30th June 2024 and has focused on the progress made in FY 2023/2024 compared to similar review period in FY 2022/2023. The 2024 County Budget Review and Outlook Paper (CBROP) highlights key global and domestic economic trends that will shape fiscal policies at the county level in Kenya. Globally, economic growth is projected at 3.2% in 2024 and 3.3% in 2025, following a growth of 3.3% in 2023. This positive outlook is driven by economic recovery in China, the Euro area, and the UK, despite a slowdown in the USA and Japan. On the domestic front, Kenya’s economy is gradually recovering from a series of persistent shocks that have had a structural impact on economic activities. These shocks include the COVID-19 pandemic, conflicts in Eastern Europe and the Middle East, which disrupted global supply chains, and the effects of climate change, from prolonged drought in 2021 to floods in early 2024. These factors have escalated the cost of essential commodities, including fuel, and contributed to the rapid depreciation of the Kenya Shilling, thereby increasing pressure on public debt. In Bomet County, the Gross County Product (GCP) at current prices was estimated at KSh.194.8 billion over the period from 2018 to 2022. The county's GDP share remained stable during this period, with an average of 1.5%. With the initiatives such as subsidized farm inputs which improves agricultural productivity, promotion of livestock production, investment in cash crops like tea and pyrethrum, alongside food crops like maize and potatoes, improved infrastructure, improved market access and grants to cooperative societies, the county’s GDP is expected to grow in the coming years.