Bungoma County Budget Review and Outlook Paper 2024

Abstract

The 2024 County Budget Review and Outlook Paper (CBROP) has been prepared against a backdrop of stable Global and National economic outlook. Global growth is projected at 3.2 % in 2024 and 3.3 % in 2025. The global outlook reflects economic recovery in China, Euro areas and the UK despite a slowdown in USA and Japan. At the domestic front the Kenya Economy is currently recovering from negative effects of the COVID-19 Pandemic and its ensuing effects, the ongoing conflicts in Eastern Europe and Middle East. These shocks escalated the cost of essential households’ goods and commodities including fuel prices and led to depreciation of the Kenya shilling. On the domestic scene, the Kenyan economy grew by 5.6 percent in 2023 up from 4.9 percent in 2022, a demonstration of resilience. The average county contribution to GDP between 2019-2023 was 2.0% with a Gross County Product of Kshs. 268,560 in 2023. The growth was largely driven by a strong rebound in the agricultural subsector, which benefited from favourable weather conditions after two years of severe droughts and the robust performance of the services sector. The average county contribution to Agriculture, Forestry and fishing between 2019-2023 was 3.6%. The growth momentum has continued in 2024 with the economy expanding by 5.0 percent in the first quarter compared to a growth of 5.5 percent in the corresponding quarter in 2023. Kenya’s economic performance is projected to remain stable over the medium term. Growth is expected to moderate 5.2 percent in 2024 and 5.4 percent in 2025 from 5.6 percent in 2023. The country’s total economy’s growth in Gross Value Added between 2019-2023 was 4.7%. on the other hand, the county’s average growth in real GCP relative to total Economy’s growth in Gross Value Added (4.7%) was 2.1%, one of the poorest in the country.