Socio-Economic Status of Nandi County with COVID-19

Abstract

Nandi County total revenue has significantly grown over the years as the government focuses on enhanced services and amenities for the citizens. Total revenue increased from Ksh 4.07 billion in 2013/14 to Ksh 6.65 billion in 2020/21, with an average growth rate of 9 per cent. The amount realized in 2020/21 was 87.3 per cent of the annual budget allocation of Ksh 7.61 billion. The performance was an improvement from the 72.2 per cent attained in 2019/20. This was supported by the 100 per cent remittances of equitable shares and conditional grants from the National Government. Analysis of the sources of the county revenue show that equitable shares contributed the largest share of total revenue, averaging 80.45 per cent over the same period. During 2020/21, equitable share amounted to Ksh 10.41 billion, representing 100 per cent of the annual budget allocation. This accentuates the commitment of the National Government to support county operations. To support effectiveness of spending, the county needs to ensure that on-going projects are completed before launching new projects and clear any pending bills and arrears owed to suppliers. There is also need to improve budget execution and absorption of development budget by harmonizing project implementation cycles to budgeting and fast-track exchequer releases; reduce expenditure on compensation of employees within the PFM requirement since ballooning compensation of employees potentially affects execution of key development programmes especially if not brought to sustainable levels; and monitor and promptly pay pending bills as they limit execution of planned activities in subsequent budgets.