COUNTY GOVERNMENT OF SAMBURU MEDIUM-TERM COUNTY FISCAL STRATEGY PAPER February 2024 ii iii Information in this publication may be reproduced without restriction provided that due acknowledgment of the source is made. Inquiries covering the publication should be addressed to: Chief Officer – Finance County Treasury P.O. Box 3 - 20600 Maralal, Kenya Telephone: +254 727 777 555 Email: info@samburu.go.ke or finance@samburu.go.ke This publication is available at the County Website www.samburu.go.ke mailto:info@samburu.go.ke iv Table of Contents page Foreword .......................................................................................................................... vi Acknowledgment .............................................................................................................. vi Legal Basis ..................................................................................................................... viii Fiscal Responsibility ......................................................................................................... ix CHAPTER ONE: OVERVIEW .......................................................................................... 1 Introduction: .......................................................................................................................... 1 CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND MEDIUM-TERM OUTLOOK ........................................................................................................................ 2 County Specific Performance 2022/2023 .......................................................................... 13 CHAPTER THREE: BUDGET FOR FY 2024/25 AND THE MEDIUM TERM ............... 23 Fiscal Responsibility Principles ............................................................................................ 23 Fiscal Structural Reforms .................................................................................................... 24 Revenue Projections ............................................................................................................. 26 Expenditure Projections ....................................................................................................... 27 Deficit Financing .................................................................................................................. 28 CHAPTER FOUR: DEVELOPMENT PRIORITIES 2024-25 ..................................... 29 Overview .............................................................................................................................. 29 CHAPTER FIVE: ASSUMPTIONS AND RISKS UNDERLYING BUDGETARY AND FISCAL POLICY ............................................................................................................ 36 Overview .............................................................................................................................. 36 Assumptions ......................................................................................................................... 36 Risks .................................................................................................................................... 37 CHAPTER SIX – CONCLUSION ................................................................................... 39 ANNEXES...................................................................................................................... 40 Table 8: Summary of Public Participation Highlights ........................................................ 46 v Abbreviations and Acronyms ASDSP Agriculture Sector Development Support Programme BPS Budget Policy Statement CFSP County Fiscal Strategy Paper CIDP County Integrated Development Plan CILOR Contribution in Lieu of Rates COVID-19 Corona Virus Disease 2019 CRA Commission on Revenue Allocation ECD Early Childhood Development FY Financial Year GDP Gross Domestic Product ICT Information, Communication, and Technology IPAs Intergovernmental Partnership Agreements KSH Kenya Shillings MoH Ministry of Health MSMEs Micro, Small and Micro Enterprises MTEF Medium Term Expenditure Framework NARIGP National Agriculture Rural Inclusive Growth Programme PFMA Public Financial Management Act 2012 SNR Samburu National Reserve USD United States Dollar vi vii viii Legal Basis . Legal Basis for the Publication of the CFSP The county fiscal strategy paper is prepared in accordance with Section 117 of the PFMA. The law states that: (1) The County Treasury shall prepare and submit to the County Executive Committee the CFSP for approval and the County Treasury shall submit the approved CFSP to the County Assembly, by the 28th February of each year. (2) The County Treasury shall align its CFSP with the national objectives in the BPS. (3) In preparing the CFSP, the County Treasury shall specify the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term. (4) The County Treasury shall include in its CFSP the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term. (5) In preparing the CFSP, the County Treasury shall seek and take into account the views of — (a) the CRA; (b) the public; (c) any interested persons or groups; and (d) any other forum that is established by legislation. (6) Not later than fourteen days after submitting the CFSP to the County Assembly, the County Assembly shall consider and may adopt it with or without amendments. (7) The County Treasury shall consider any recommendations made by the county assembly when finalizing the budget proposal for the financial year 2024/25. (8) The County Treasury shall publish and publicize the CFSP within seven days after it has been submitted to the County Assembly. ix Fiscal Responsibility Fiscal Responsibility Principles in the PFMA In line with the Constitution, the PFMA, sets out the fiscal responsibility principles to ensure prudency and transparency in the management of public resources. The PFMA (Section 107) states that: (a) The County Government’s recurrent expenditure shall not exceed the County Government’s total revenue; (b) Over the medium term a minimum of thirty percent of the County Government’s budget shall be allocated to the development expenditure; (c) The county government’s expenditure on wages and benefits for its public officers shall not exceed a percentage of the county government’s total revenue as prescribed by the County Executive member for finance in regulations and approved by the County Assembly; (d) Over the medium term, the government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure; (e) The county debt shall be maintained at a sustainable level as approved by county assembly; (f) The fiscal risks shall be managed prudently; and (g) A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future. 1 CHAPTER ONE: OVERVIEW Introduction: 1. The preparation of the CFSP 2024 was a consultative process that involved seeking and considering the views of The Commission on Revenue Allocation; The National Treasury; the public and interested Stakeholders. 2. The County Fiscal Strategy Paper contains: a) The performance section provides up-to-date information on county government expenditure and revenue collection. It helps to determine whether the decisions made going forward on revenue collection and expenditure are realistic. b) The projections which indicate the overall revenue and expenditure expected for 2024/25 budget year. c) The Priorities which deal with identifying what to fund or the distribution of needs across sectors. d) The ceillings which determine the amount of money allocated to each sector and how the money is distributed across sectors. The ceilings should show the amount of money the county will spend on meeting the identified priorities e) The fiscal responsibility principles and financial objectives over the Medium Term. Outline of the 2024 County Fiscal Strategy Paper 3. The CFSP document contains five chapters that are organized as follows: Chapter 1: This chapter gives the overview and the organization of the CFSP. Chapter 2: This chapter provides an overview of the recent economic developments and the medium term outlook that covers the global and domestic scenes. Chapter 3: This chapter contains the fiscal policy and budget framework. The chapter also gives the budget overview for 2024/25 and its compliance with the fiscal responsibility principles. Chapter 4: This chapter contains the Medium Term Expenditure priorities for the County Government of Samburu. Chapter 5: This chapter finally gives the conclusion and next steps. 2 CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND MEDIUM-TERM OUTLOOK 2.1. Overview 4. The global economy is experiencing challenges arising from global supply chain disruptions due to the prolonged Russia -Ukraine conflict, elevated global interest rates on account of inflationary pressures limiting access to credit and exacerbating debt servicing costs; and significant losses and damages due to frequent extreme weather events increasing fiscal pressures. As such, global growth is projected to slow down to 3.0 percent in 2023 and 2.9 percent in 2024 from 3.5 percent in 2022 which is below the historical (2000–2019) average of 3.8 percent 5. The geopolitical fragmentation arising from the Israeli-Palestinian conflict and elevated global oil prices on account of supply cuts by major oil exporters particularly Saudi Arabia and Russia could weigh on the global economic outlook. 6. Advanced economies are projected to record a slower growth of 1.5 percent in 2023 and 1.4 percent in 2024 from 2.6 percent in 2022 mainly driven by lower growth in the Euro Area. The slowdown in growth in the advanced economies is as a result of aggressive monetary policy tightening that has contributed to a significant deterioration of global financial conditions. 7. Growth in the emerging market and developing economies is projected to decline relatively modestly, from 4.1 percent in 2022 to 4.0 percent in both 2023 and 2024, although with notable shifts across regions. In sub-Saharan Africa, growth is projected to decline to 3.3 percent in 2023 from 4.0 percent in 2022 reflecting worsening climate change related shocks, inflationary and exchange rate pressures, and domestic supply issues, including, notably, in the electricity sector. Growth in the region is expected to rebound to 4.0 percent in 2024, picking up in four fifths of the sub-Saharan Africa’s countries, and with strong performances in non-resource intensive countries. 2.2. Domestic Economic Developments 8. The Kenyan economy in 2022 demonstrated resilience in the face of severe multiple shocks that included the adverse impact of climate change, lingering effects of COVID-19, global supply chain disruption and the impact of Russia Ukraine conflict. As such, the economic growth slowed down to 4.8 percent in 2022 from 7.6 percent in 2021 but broadly aligned with the pre-pandemic decade average of 5.0 percent. 3 This growth was largely supported by the robust growth of service sectors, particularly transport and storage, financial and insurance, information and communication, and accommodation and food services sectors. However, the agriculture sector contracted by 1.6 percent due to the adverse weather conditions that affected reduction of crops and livestock. 9. Despite the challenging environment, the Kenyan economy is demonstrating resilience with growth performance well above the global average. In the first half of 2023, the economic growth averaged 5.4 percent (5.5 percent Q1 and 5.4 percent Q2). This growth was primarily underpinned by a rebound in the agricultural activities and a continued resilience of service sectors. All economic sectors recorded positive growths in the first half of 2023, though the magnitudes varied across activities. 10. Agriculture: In the first half of 2023, the agriculture sector rebounded strongly following improved weather conditions and the impact of fertilizer and seed subsidies provided to farmers by the Government. The sector grew by 6.0 percent in the first quarter and 7.7 percent in the second quarter. The strong performance was reflected in enhanced production, especially of food crops that led to significant increase in exports of tea, coffee, vegetables and fruits. However, production of cut flowers and sugarcane declined during the period. 11. Services: The services sector continued to sustain strong growth momentum in the first half of 2023 growing by 6.0 percent in the first quarter and 5.9 percent in the second quarter. The robust performance was reflected in the notable growth of information and communication (driven by increases in wireless internet and fiber-to-home subscriptions), wholesale and retail trade, accommodation and food services (driven by recovery in tourism), transport and storage, financial and insurance (due to strong private sector credit growth and lending to the government) and real estate (supported by sustained expansion of the construction industry). 12. Industry: In the first half of 2023, the industrial sector recorded lower growths of 2.5 percent in the first quarter and 1.8 percent in the second quarter compared to growths of 4.4 percent and 4.2 percent, respectively in similar quarters in 2022. The slowdown in growth was mainly reflected in manufacturing, and electricity and water supply sub-sectors. Activities in the manufacturing sector, which accounts for nearly half of the industrial sector output, was hampered by a decline in the manufacture of both food (particularly sugar production) and non-food products while electricity sub-sector slowed down due to a notable decrease in electricity generation from all sources, except geothermal. 4 2.3. Inflation outcomes 13. Inflation had remained above the Government target range of 5±2.5 percent from June 2022 to June 2023. In order to anchor inflation expectations, the Monetary Policy Committee (MPC) gradually raised the policy rate (Central Bank Rate (CBR)) from 7.50 percent in May 2022 to 10.50 percent in June 2023 and further to 12.50 percent in December 2023. The tightening of the monetary policy was to address the pressures on the exchange rate and mitigate second round effects including from global prices. This will ensure that inflationary expectations remain anchored, while setting inflation on a firm downward path towards the 5.0 percent mid-point of the target range 14. Consequently, inflation eased gradually to 6.8 percent in November 2023 from a peak of 9.6 percent in October 2022 and has been within the target range for the five months of FY 2023/24. However, inflation has remained sticky in the upper bound of the Government’s target range since July 2023. The easing of inflation was also supported by lower food prices. 15. Food inflation remained the dominant driver of overall inflation in November 2023. However, it declined to 7.6 percent in November 2023 from a peak of 15.8 percent in October 2022 supported by general decline in international food prices, government interventions through zero rating of select food commodities, and improved weather conditions that enhanced production of fast-growing food items, thus moderating their prices. Nonetheless, sugar prices remained elevated driven by domestic and global factors. 16. Fuel inflation remained elevated reflecting the impact of the rise in international oil prices. It increased to 15.5 percent in November 2023 from 11.7 percent in November 2022. The increase reflects the impact of higher international oil prices, depreciation in the shilling exchange rate and gradual withdraw of the fuel subsidize from September 2022 and the upward adjustment of electricity tariff from April 2023. In addition, the upward adjustment of Value Added Tax on petroleum product in July 2023 from 8.0 percent to 16.0 percent to eliminate tax credits from the sector exacted upward pressures on prices. However, prices of cooking gas continued to decline and moderated inflation reflecting the impact of the zero- rating of Value Added Tax on liquefied petroleum gas (LPG). 17. Core (non-food non-fuel) inflation remained stable at 3.3 percent in November 2023, from a peak of 4.4 percent in March 2023. The decline is attributed to the tight monetary policy and muted demand pressures. 5 2.4. Monetary and Credit Developments 18. Broad money supply, M3, grew by 19.5 percent in the year to September 2023 compared to a growth of 6.1 percent in the year to September 2022. The primary source of the increase in M3 was an improvement in the Net Foreign Assets (NFA) of the banking system and resilient domestic credit. The increase in Net Foreign Assets mainly reflected the improvement in commercial banks’ foreign assets. 19. Net Domestic Assets (NDA) registered a growth of 10.9 percent in the year to September 2023, compared to a growth of 17.6 percent over a similar period in 2022. The growth in Net Domestic Assets (NDA) was mainly supported by an increase in domestic credit particularly resilient private sector credit and net lending to government. Growth of domestic credit extended by the banking system to the Government declined to a growth of 16.0 percent in the year to September 2023 compared to a growth of 19.8 percent in the year to September 2022. 2.5. Interest Rates 20. Reflecting the tight monetary policy stance and liquidity conditions in the money market, interest rates increased in the year to November 2023. The interbank rate increased to 11.4 percent in November 2023 compared to 4.6 percent in November 2022 while the 91-day Treasury Bills rate increased to 15.4 percent compared to 9.2 percent over the same period. The introduction of the interest rate corridor, in August 2023, is expected to align the interbank rate to the Central Bank Rate and thereby improve the transmission of the monetary policy. 21. Commercial banks average lending and deposit rates increased in the year to September 2023 in tandem with the tightening of the monetary policy stance. The average lending rate increased to 14.0 percent in September 2023 from 12.4 percent in September 2022 while the average deposit rate increased to 8.6 percent from 6.8 percent over the same period. Consequently, the average interest rate spread declined to 5.4 percent in September 2023 from 5.6 percent in September 2022. 2.6. External Sector Developments 22. The current account deficit improved to USD 4,160.5 million (4.1 percent of GDP) in September 2023 compared to USD 5,928.1 million (5.3 percent of GDP) in September 2022. 6 The current account balance was supported by an improvement in the trade balance account and resilient remittances. 23. In the year to September 2023, exports contracted by 2.0 percent mainly due to a decline in horticultural exports particularly cut flowers despite an improvement in receipts from tea and manufactured exports. The increase in receipts from tea exports reflects higher prices attributed to lower global supply due to drought amid resilient demand from traditional markets. 24. On the other hand, imports declined by 13.2 percent in the 12 months to September 2023, mainly reflecting lower imports of infrastructure related equipment, manufactured goods, oil, and chemicals. Oil prices remain elevated on account increased geopolitical fragmentation and global oil supply cuts by major oil exporters particularly Saudi Arabia and Russia. As a result, the trade account balance improved by USD 2,429.5 million to a deficit of USD 9,741.7 million in September 2023. 25. Net receipts on the services account declined by USD 928.2 million to USD 671.8 million in September 2023 compared to a similar period in 2022. This was mainly on account of a decline in receipts from transport despite an increase in receipts from tourism as international travel continues to improve. Net Secondary income remained resilient owing to an increase in remittances which amounted to USD 4,142 million in the 12 months to September 2023, and were 3.5 percent higher compared to a similar period in 2022. 26. The capital account balance improved by USD 12.6 million to register a surplus of USD 144.1 million in September 2023 compared to a surplus of USD 131.5 million in the same period in 2022. Net financial inflows slowed down but remained vibrant at USD 3,144.8 million in September 2023 compared to USD 4,784.7 million in September 2022. The net financial inflows were mainly in the form of other investments, financial derivatives, and direct investments. Portfolio investments registered a net outflow during the period. 27. The overall balance of payments position slowed down to a surplus of USD 1,044.4 million (1.0 percent of GDP) in September 2023 from a surplus of USD 2,225.9 million (2.0 percent of GDP) in September 2022. 7 2.7. Foreign Exchange Reserves. 28. The banking system’s foreign exchange holdings remained strong at USD 13,968.3 million in September 2023, an improvement from USD 11,337.4 million in September 2022. The official foreign exchange reserves held by the Central Bank stood at USD 7,651.8 million compared to USD 7,787.5 million over the same period. Commercial banks holdings improved to USD 6,316.5 million in September 2023 from USD 3,549.9 million in September 2022. 29. The official reserves held by the Central Bank in September 2023 represented 4.1 months of import cover as compared to the 4.4 months of import cover in September 2022. It, however, fulfilled the requirement to maintain it at a minimum of 4.0 months of imports cover to provide adequate buffer against short-term shocks in the foreign exchange market. 2.8. Exchange Rate Developments 30. Kenya like several other countries is experiencing foreign exchange challenges due to the rise of US interest rates. In November 2023, the Kenya Shilling weakened by 24.7 percent against the US Dollar, 31.9 percent against the Sterling Pound and 32.2 percent against the Euro, compared to a similar period in 2022. 31. The Kenya Shilling exchanged at an average of Ksh 152.0 in November 2023 compared to an average of Ksh 121.9 in November 2022. Against the Euro, the Kenya shilling weakened to exchange at Ksh 164.2 in November 2023 compared to Ksh 124.2 in November 2022 while against the Sterling Pound the Kenyan Shilling also weakened to exchange at Ksh 188.6 compared to Ksh 143.0, over the same period. The Kenyan Shilling was supported by increased remittances, adequate foreign exchange reserves and strong exports receipts. 32. The Government has taken measures to stabilize the foreign exchange market which include the Government-to-Government petroleum supply arrangement. This arrangement is mainly intended to address the US Dollar (USD) liquidity challenges and exchange rate volatility caused by the global dollar shortage and sport market reactions that was driving volatility and a false depreciation that was a scarcity value as well as market distortion. 8 2.9. Capital Markets Developments 33. Activity in the capital markets slowed down in November 2023 compared to November 2022 as advanced economies tightened their monetary policy amid inflationary pressures. The Nairobi Securities Exchange (NSE) 20 Share Index declined to 1,496 points in November 2023 compared to 1,638 points in November 2022 while Market capitalization declined to Ksh 1,436 billion from Ksh 1,971 billion over the same period. 34. In the domestic secondary bond market, bonds turnover declined by 16.1 percent to Ksh 644.86 billion in September 2023 from Ksh 768.84 billion in September 2022. In the international market, yields on Kenya’s Eurobonds decreased by 106.8 basis points at the end of September 2023 compared to September 2022. 2.10. Fiscal Policy 35. The County Government’s fiscal policy seeks to support structural reforms while improving service delivery. It aims to; a) Promote and support a higher level of investment in tourism and agriculture; b) Reduction of recurrent expenditure to devote more to development; c) Reform expenditure management and revenue collections regimes; d) Enhancing governance, transparency, accountability and human resource productivity in the delivery of public good and service. 36. The county government shall continue with prudent public finance management and ensuring it adheres to the fiscal responsibilities in accordance to the PFM law. This is expected to enhance prudent and transparent management of public resources. This will help in maintaining county development expenditure above the 30% threshold provided in the PFM law. Prudent financial management and creating of a conducive business environment is also expected to boost both investors and creditors confidence culminating to much needed investment in the county. 37. Towards ensuring that more resources are devoted for development, the County government of Samburu remains committed in ensuring that discretionary expenses are reduced. Reforms in the expenditure management and revenue administration will continue to be implemented so as to increase efficiency, reduce wastages and increase revenues collected. This is expected to create fiscal space for spending on development programmes within the budget. 9 2.11. Expenditure Reforms 38. The County Treasury is the process of acquiring revenue system to collect and administer own source revenue. This move is expected to improve efficiency in revenue collection through optimization in local revenue collection, revenue mapping and revenue forecasting. 39. The County Government shall continue tracking of the implementation of the CIDP 2023- 2027 within the framework of the cascaded County Integrated Monitoring and Evaluation System (CIMES) with the commitment to pioneer the adoption of e-CIMES in the county by building capacity in all county departments; Championing for technology enabled M&E reporting at the departmental level; Sensitize Chief Officers and CECs on the system and the underlying advantages. 40. The County will seek to implement the County Access to Government Procurement Opportunities (AGPO) by training and sensitization of the same, public participation in the formulation of County Statutory documents, up-scaling of the County complaints handling mechanisms and providing feedback to the external stakeholders and further use such information to make improvements. 2.12. Economic Outlook 41. The economy is projected to remain strong and resilient in FYs 2023, 2024 and over the medium term supported by the continued robust growth of the services sectors, the rebound in agriculture, and the ongoing implementation of measures to boost economic activity in priority sectors by the Government. As such, the economy is expected to remain strong and expand by 5.5 percent in both 2023 and 2024 (5.5 percent in FY 2023/24 and 5.4 percent in FY 2024/25). 42. Growth over the medium term will also be driven by sustained Government investments in the Affordable Housing programme and the ongoing work on building and maintaining public infrastructure. The development spending in the budget will be above 5.0 percent of GDP so as not to impact on growth momentum. The spending supports investments in key projects under the Bottom-Up Economic Transformation Agenda (BETA). Particularly, investments in the nine priority value chains (Leather, Cotton, Dairy, Edible Oils, Tea, Rice, Blue economy, Natural Resources (including Minerals and Forestry), and Building Materials). 10 2.13. Monetary Policy Management 43. The monetary policy stance is aimed at achieving price stability and providing adequate credit to support economic activity. Consequently, overall inflation is expected to remain within the Government target range of 5±2.5 percent in the medium term. This will be supported by muted demand pressures consistent with prudent monetary policy and easing domestic and global food prices coupled with Government measures to lower cost of production through subsidizing farm inputs and support sufficient supply of staple food items through zero rated imports. 44. The Central Bank of Kenya (CBK) continues to implement reforms outlined in the White Paper on Modernization of the Monetary Policy Framework and Operations. The reforms aim at enhancing the effectiveness of monetary policy and support anchoring of inflation expectations through inflation targeting. In order to enhance monetary policy transmission, the Central Bank of Kenya (CBK) adopted a new monetary policy implementation framework and launched the Centralized Securities Depository System (CSD) in 2023. 45. The new framework, adopted in August 2023, which is based on inflation targeting, introduced an interest rate corridor around the Central Bank Rate (CBR) set at CBR±250 basis points. Consequently, monetary policy operations are aimed at ensuring the interbank rate, the operating target, closely tracks the CBR within the corridor. To further improve the operation of the interest rate corridor framework, access to the Discount Window was improved as the applicable interest rate was reduced from the 600 basis points above CBR to 400 basis points above CBR. The Centralized Securities Depository System, the DhowCSD, which went live on 31st July, 2023, is a versatile market infrastructure that will improve monetary policy transmission and implementation and enhance operational efficiency in the domestic debt market, further promoting capital growth, market deepening, expansion of digital access for broader financial inclusion, and positioning Kenya as the preferred financial hub in the region. 46. Central Bank of Kenya (CBK) will continue improving monetary policy formulation and implementation in Kenya including refining macroeconomic modelling and forecasting frameworks, fine tuning of monetary policy operations around the CBR and improving the communication of monetary policy decisions to make them more effective. 11 2.14. Risks to the Economic Outlook 47. There are downside risks emanating from domestic as well as external sources. On the domestic front, risks relate to unpredictable weather conditions due to the impact of climate change which could adversely affect agricultural production and result to domestic inflationary pressures and food insecurity. Additionally, tight fiscal space due to the impact of the multiple shocks that have affected the global and the domestic economy might lead to tight liquidity conditions for financing the budget. 48. On the external front, uncertainties in the global economic outlook stemming from the escalating geopolitical fragmentations could result in higher commodity prices which poses a risk to domestic inflation outcomes leading to further tightening of financial conditions. Additionally, weaker global demand due to the slowdown the global economic recovery could adversely affect Kenya’s exports, foreign direct investments and remittances. Continued strengthening of US dollar against other global currencies arising from aggressive monetary policy tightening present significant risks to financial flows and puts pressures on the exchange rate with implication to growth and inflation. 49. The upside risk to the domestic economy relate to early easing of global financing conditions and lower international fuel and food prices, which would strengthen Kenya’s external balances. Faster than projected rebound in economic activities that would result in higher Government revenues providing fiscal space that would support fiscal consolidation. 50. The Kenyan Government continues to monitor the domestic and external environment and will take appropriate policy measures to safeguard the economy against the adverse effects of the risks if they were to materialize. Total County revenue Own Source Revenue 51. The Own Source Revenue was budgeted at Ksh 256 million. The collection for Six months of the financial year was Ksh 142,520,491 which was 56% of the target as shown in Table 1. The revenue collected is further analyzed by departments as shown in Table 2. Own Source Revenue forms part of the total revenue for the county and its adequacy is important to funding development projects. 12 External revenue 52. The County expects to receive Ksh 5,594,312,489 as the equitable share of revenue raised nationally, generate Ksh 256,027,400 from its own sources of revenue. The county expected to receive the following grants in the period; a) Aggregated Industrial Parks Programme Ksh. 100,000,000. b) Conditional Grant-Leasing of Medical Equipment Ksh. 124,723,404. c) DANIDA (Health support funds) Ksh 8,431,500. d) World bank loan for National agricultural and rural inclusive growth project Ksh 150,000,000. e) Mineral Royalties Ksh 905,740. f) De- Risking and Value Enhancement (DRIVE) -livestock Ksh 207,839,480. g) Fertilizer subsidy Ksh 12,431,664. h) Agriculture Sector Development Support Programme (ASDSP) Ksh 2,793,523 i) Kenya Livestock Commercialization Project (KELCLOP) Ksh 37,500,000 j) ELRP( Locust) Ksh 200,970,152. k) Balance brought forward 2022-23 – CRF Ksh 718,000,000. l) Finance Localy led Climate Action Program (FLLoCA) Ksh. 11,000,000. The actual receipt for Six months from equitable share was Ksh 2,199,729,180 and Ksh 19,200,816 from development partners. Expenditure Performance 53. There has been a lot of public attention on County Government spending. The County Government always aims to shift more public resources from recurrent to capital investment to promote sustainable and inclusive growth. The County’s approved budget for FY 2023/24 is Ksh 7.42 billion, comprising Ksh 2.69 billion (36%) and Ksh 4.72 billion (64% ) allocation for development and recurrent programs respectively. The expenditure for Six months was Ksh 2,197,179,905 of which recurrent was Ksh 2,057,384,243 and development was Ksh 139,795,662 as shown in Table 4. 54. The expenditure can further be categorized into three major economic classifications as shown in Table 5 namely; a) Personnel emolument is composed of basic staff salaries and all allowances-53% 13 b) Operation and maintenance include expenditure incurred in running the offices such as payment of bills, maintenance of vehicles, maintenance of buildings, fueling of vehicles, traveling cost and purchase of working tools such as stationeries, computer and accessories and any other cost incurred in running the offices. The procurement of drugs, food and bursary disbursement is also included-41% c) Development expenditure involves costs incurred in the payment of capital projects-6%. County Specific Performance 2022/2023 The performance for Samburu County for the financial year 2022/23 in different sectors was as follows; 55. County Assembly Achievements for FY 2022-2023 a) Construction of Speaker’s house which is so far 90% complete. b) Constructions of County Assembly Ultra-modern block which is now 98 % complete. 56. County Administration/Executive The County Executive established a directorate of public communication under public service. The Governor’s Press Service has also initiated preparation of county communication strategy. The Governor’s Press Service has sustained strong presence and visibility in social media, radio and through regular TV feature stories. The Governor’s Press Service has provided media coverage to all newsworthy activities presided over by the Governor and Deputy Governor. Governor’s Press officers have also provided media coverage to activities of other departments upon request by the departments. 57. Sub- County Administration Established smooth channels of coordination, management and supervision of Government programs to the village level. One (1) ward administrator’s office for Nyiro has been constructed and is complete. 58. The County Executive established a directorate of communication and public communication under Chief Officer public service management and administration. The Directorate is mandated to coordinate the entire county’s corporate affairs, internal communication, external communication and public participation. 14 The Directorate has provided media coverage to the county functions and has worked on Samburu County Government brand. Moreover, the directorate has initiated preparation of communications and public participation policies and strategies. The directorate has sustained county government’s visibility in social media, radio, print and Television. 59. The Governor’s Press Service on the other hand has provided media coverage to all newsworthy activities presided over by the Governor and Deputy Governor. The unit oversaw drafting of speeches for the Governor and maintained a database of news/information on the Governor’s operations. In addition, the unit also disseminated Governor’s activities in electronic and print to the media and public. 60. County Public Service Board. Recruitment of staff as per department requests, staff promotion, administering declaration of incomes, assets and liabilities. 61. Finance, Economic Planning and ICT The County Treasury's achievements during the period include; completion of value for money audits in selected departments, implementation of policy on access to County Government procurement opportunities for women, the youth and persons with disabilities, preparation of annual procurement plan, revenue collections despite the COVID-19 pandemics effects, preparation of financial statement on time, Preparation of the county integrated development plan (CIDP) 2023-2027, preparation of the Annual Development Plan FY 2023-2024, preparation of the annual budget, preparation of quarterly progress reports and County Annual Progress Report. The county treasury coordinated the implementation of the Kenya devolution support program (level II) with Capacity Building Plan preparation and quarterly reporting done. 62. Special programmes. a) Development and publishing of the County Disaster Risk Management Policy 2021. b) Supplied 1,412.3 metric tons of emergency relief food to 180,000 vulnerable households. c) Conducted 30 peace meetings/peace dialogues across the county and reached out to 1,200 peace stakeholders. d) Through a partnership with development partners, 4,900 vulnerable households received about Ksh. 400 million in cash transfers. This is in addition to 12,171 households receiving about Ksh. 200 million cash per year and with support of the Kenya Red Cross Society established a Ksh. 10 million worth of county emergency operation Centre. 15 63. Agriculture, Livestock Development, Veterinary Services and Fisheries. a) Livestock production. During the review period, the Directorate of Livestock Production’s achievements included the supply and distribution of 225 Somali Camels and 100 Sahiwal. A modern livestock sale yard was constructed at Longewani market Centre. b) Irrigation & Fisheries development During the review period, the Directorate of Fisheries and Irrigation’s achievements included purchase of 36 fishing nets pond cover nets, procured 2,075 kgs of starter fish feeds, introduction of 28,571 fingerlings to stock seven (7) dams within Samburu Central Sub-County. c) Agriculture projects a) Developed a crop policy. b) Distributed 60,000 kgs of certified maize seeds and 20,000 kgs of certified beans seeds. c) Completed the Lulu irrigation scheme. d) Veterinary services. a) 545,131 animals including cats and dogs received vaccinations and/or treatments and active disease surveillance in the county done. b) Construction of five (5) cattle crushes -Anderi, Tuum, Seketet, Logorate and Sarara cattle crushes. c) Renovation of Silango cattle dip. d) Suguta and Wamba slaughter houses rehabilitated. 64. Water, Environment, Natural Resources and Energy During the period 2022-2023, some of the key achievements realized by the department included: a. Undertaking hydro geological surveys and water feasibility studies to ascertain underground and surface water potentials for twenty-two (22) proposed borehole sites. b. Sixteen (16) boreholes drilled, (thirteen)13 boreholes equipped and 280,000 litres of water trucked. c. Rehabilitation of 33.4 kilometres of water extensions and/or supplies and numerous repairs and overall maintenance of rural water supplies across the county; 16 d. Excavation and desilting of eight (8) earth dams/pans in Keleswa, Namalia, Lesepe, Lencheta, Ledero Ndikir, Ntarakwai, Nachola and Loodua and Construction of two (2) Sand dams at Nakwamoru & Laresoro. e. Construction of Masonry tanks at Lesirikan, Laparan, Lauragi, Suyan, Archers post, Lopesiwuo and Ndonyo Uasin. f. Construction of Numerous water kiosks, steel tanks and solarisation of borehole source points. g. Established and trained three (3) Ward Climate Change Planning Committees (WCCPC) of Suguta Marmar, Loosuk and Porro wards. h. Developed draft County Climate Change Action Plan (CCAP) 2023-2027. 65. Education and Vocational Training. The sector presents a platform for imparting much-needed skills, competencies, and attitudes to propel the County's development. S/N Project No 1 Construction of Classrooms 30 2 Supply and delivery of Furniture 60 3 Purchase and installation of Water tanks 45 4 Fencing of ECDE Centres 15 5 Construction of Office and store. 15 6 Construction of Preparatory kitchens 30 7 Two (2) Classrooms at Suguta and Wamba WDF 2 8 Bursary disbursed Ksh116 million Vocational Training Centre 1) Procurement of training and learning materials. 2) Enrollment increased from 109 to 202 students. 3) Introduction of new courses; a) Hairdressing and beauty therapy, b) Motorcycle mechanic, c) Electrical Wireman courses. 4) Sponsorships of students in partnership with: a) Kenya Commercial Bank fifty (50) students b) USAID Nawiri two hundred and ninety eight (298) students c) World Vision Kenya seven (7) students 17 66. Medical Services, Public Health and Sanitation. a) Construction of four (4) new dispensaries at Soit Naibor, Morijo, Ndume and Ngare Narok. b) Construction of four (4) inpatient wards at (South Horr, Loosuk, Lesirkan and Lodungokwe) Health centres. c) Infrastructure improvement at Samburu County Teaching and Referral Hospital (Ablution Block, Mortuary completion, installation of Aluminum storage tank 60,000 litres. d) Construction of a laboratory at Logetei Health Centre. e) Construction of eight (8) fences at Lekuru, Nauneri, Lengusaka, Nkutuk Elmuget, Opiroi, Muruankai, Naisunyai and Lodua dispensaries. f) Construction of five (5) staff houses at Mugur, Loiragai, Nausunyai, Twala and Lorok onyokie dispensaries. g) Construction of two (2) Outpatient blocks at Wamba and Suguta Murmur Sub County Hospitals. h) Purchase of three (3) new ambulances for Archers Post, Angata Nanyokie and Baragoi. i) Acquired one (1) Refrigerated Land cruiser from the National Government for vaccine collection and distribution. j) Supply of ENT and Dental equipment for Samburu County Teaching and Referral Hospital. k) Drugs allocation increased from Ksh 130 million to Ksh 160 million. l) Operationalization of Baragoi Sub-County Theatre. The first ever Caesarian section was conducted. The department is also in the final stages of operationalizing theatre services at Suguta Sub County Hospital’s. m) Recruitment of more healthcare workers including two (2) Cuban doctors. Currently, Samburu County Teaching and Referral Hospital has eight (8) specialists including; 1 Urologist, two (2) General surgeons, one (1) Nephrologist, one (1) Gynecologist, one (1) Pediatrician, one (1) Family Health Physician and one (1) Surgeon. n) An estimated 160-bed capacity inpatient block with two (2) operating theatres is also almost complete at Samburu County Teaching and Referral Hospital. 18 67. Lands, Housing, Physical Planning and Urban Development. a) Purchase of Global Navigation Satellite System Machine b) Cadastral Survey of Baragoi. c) Planning of Lolmolog. d) Finalization of Lodungokwe and Poro town plans. e) Maralal Cabro Paving, parking and Storm Water drainage. 68. Roads, Transport and Public Works 1. Assisted in the Preparation of bill of quantity and supervision of ongoing construction works for other departments. A total of 169 number of bid documents were prepared for client departments. The department supervised major projects of high value namely: a) Construction of an in-patient complex in Maralal referral hospital. b) Completion of county assembly chambers. c) Construction of Maralal retail market and Nomotio abattoir. d) Construction of official residence for the governors’ and county assembly speakers’. e) Baragoi maternity wing, Suguta out-patient, Lodungokwe in-patient, Wamba out-patient, Morijo health centre, Loosuk inpatient, Lesoit Naibor health centre, South horr inpatient, Ndume health centre and Nkare Narok health centre. f) Construction of the Longewan sale yard. 2. Conducted firefighting training for institutions and business premises in Maralal town. 3. Street lighting in FY 2022/2023: - a. Loosuk, and Poro streetlight were successfully completed while Kisima and Suguta- Marmar streetlights are ongoing. b. Baragoi and Wamba floodlights were successfully completed. 4. Road Projects completed in FY 2022/23: - a) The Department budgeted a total of fifty (50) projects out of which: i. Forty-eight (48) projects successfully went through the procurement process. ii. Out of the Forty-eight (48) projects that successfully went through procurement, fourth (40) have been completed and paid, while 08 No. are on-going. 5. Transport in FY 2022/23: - i. Conducted inventory exercise on all motorized equipment. ii. Identified equipment for disposal. iii. Came up with a disposal plan. 19 69. Tourism, Trade, Enterprise Development and Co-operatives. Trade sub-sector a) Renovation of Suguta Market. b) Samburu Dairy cooperatives toilet constructed. c) Fencing of Meloni Tannery. Tourism and wildlife sub-sector a) Support of six (6) newly established community conservancies b) Construction of Ranger’s Camp at Naturkan - Nachola Ward, Morijo – Angata Nanyekie Ward, Latakweny – Ndoto Ward, and Lonjorin – Nyiro Ward. c) Construction of Perimeter wall and water Extension to Ltungai Fortified Security Camp - Suguta ward. d) Construction of Fortified Security and Rangers camp at Noolkera – Loosuk Ward, Pura – Loosuk Ward and Lorrain – El-barta Ward. e) Renovation of rangers houses at SNR headquarters – Samburu Lodge. f) Support of existing conservancies, through SNR revenue sharing; Kalama and West gate g) Support of development projects for existing conservancies. h) Construction of two (2) Door/ Urinal Pit Latrines block and fencing at Suyian Rangers camp. i) Formulation of Community Conservation Fund Regulations. j) Training for Community Conservancies Scouts and Management boards. k) Formulation of County Tourism Marketing Strategy. Cooperatives Sub-sector. a) Six (6) pre-cooperative education meetings carried out for livestock marketers with a view to forming Umbrella Livestock Society. b) Nineteen (19) members’ trainings/education days held for 15 Ushanga cooperatives, cereal & fodder cooperatives in Central and 2 beekeeping cooperatives in North. 20 c) Ten (10) cooperative leaders’ trainings undertaken in the course of financial year targeting boards of management of both Sacco Leaders and producer/marketing Cooperatives. d) Eleven (11) cooperatives audits carried out and fifty-two (52) inspections undertaken in the course of financial year. e) Three (3) national trade fare forums attended by representatives of marketing cooperatives (Ushanga and beekeeping) with facilitation from this office. f) Beads, beading equipment procured for the fifteen (15) registered Ushanga cooperative. g) Construction of Ushanga shade for Poro Beadwork Cooperative. h) Fencing of the Meloni tannery. 70. Culture, Gender, Social Services, s and Youth Affairs. Culture, Gender, Social Services Sub-sector a) Celebration of national events Mashujaa and Jamhuri Day. b) Conducted cultural events- Kenya inter county sports and cultural association, Lamu cultural festivals, and UNESCO. c) Marked International Day of Gender activism against Gender Based violence (16 days of Gender Activism) and carried out community dialogues on Gender based violence d) Training and sensitizations on drugs, alcohol, and substance abuse. e) Village Savings and Lending Associations Training at Suguta and Baawa Wards. f) Training and sensitizations on Female genital mutilation in Waso Ward g) Marked International Day of Girl Child and conduct community dialogues on the rights of the girl child. h) Marked World Aids Day and conducted community dialogues on triple threats (Teen pregnancies, HIV infections, and Gender Based violence) i) Mentorship program for young people. j) Inspection of bars and liquor premises for licensing. k) Community training on social behavior change and group dynamics. 21 l) Celebration of International Women’s Day and conduct community dialogues on the rights of women. m) Support to the Persons with disability fund. Sport and Youth Affairs Sub-sector The following was realized in the development and promotion of sports and Youth Affairs: a) Hosted the North Rift regional cross country championships for the second time where some of our athletes qualified for the national championships. b) Participated in the 9th Edition of the Kenya Inter-Counties Sports and Cultural Association (KICOSCA) games held in Kisumu where we managed the third position in darts, first position, and second position in tri-cycle race women and men respectively. c) Procurement of assorted sports equipment for various clubs in all the wards. d) Trained various coaches and referees in volleyball and handball. e) Participated in the Kenya Youth Inter-Counties Sports Association (KYISA) games which are meant to promote raw talent held in Tharaka Nithi county where our basketball team was selected to be the most disciplined team. f) Participated in the 9th Edition of the Desert Wheel Race held in Isiolo County where we managed position three in the men's category. g) Facilitated the Samburu County soccer league where the top two teams were promoted to the lower Rift Regional League namely Sagumai FC and Milimani Sparrows FC and thus joining Taqwa FC and Nabore FC which is in the Division Two league. h) Renovated Wamba Stadium and the grading of Lesidai, Lalaingo, Nachola and Kirimon playgrounds. i) Held a sports stakeholders’ forum which gave birth to the Samburu County Sports Council. j) Organized various tournaments in Angata Nanyokie, Ndoto, Nachola, Nkutot, Wamba North and women's soccer in Maralal ward. k) Participated in the Lower Rift Regional playoffs where Nabore Football club was promoted to division two. l) Held meetings with various stakeholders and agenda-setting on youth policy formulation. 22 m) Supported various youth talent development programs and training in business and product marketing skills and serving and lending skills. n) Construction of the high altitude sports center at Lesidai. o) Facilitated the 2023 Consolata cup. 71. Implementation Challenges a) Delay in Release of funds from the exchequer. b) High levels of illiteracy. c) High poverty levels and poor roads network. d) Unsafe and insufficient water provision. e) Food and human being insecurity. f) Range degradation due to worsening climate change. g) Lack of ownership by community of county facilities/projects. h) Weak revenue base thereby leading to over-reliance on the transfers from the national government resources which are inadequate and limits resources allocations to key sectors. 23 CHAPTER THREE: BUDGET FOR FY 2024/25 AND THE MEDIUM TERM Fiscal Responsibility Principles 72. Section 107 of the PFM Act, 2012 and regulation 25 of the PFM (County Governments) Regulations, 2015 sets out the fiscal responsibility principles which the County Governments have to observe and enforce through the County Treasury. The guiding principles that are considered in the allocation of the available resources include: a) The requirement that the County’s public debt shall never exceed twenty (20) percent of the County Government's total revenue at any one time. The County Government have no intention of borrowings in the period. b) The County Government wages shall be contained at thirty-five (35) percent of the County Government’s total revenue in the medium term. The percentage on wages in the current budget is 36.1% and is projected to be 42% in the 2024-25 financial year due to the effect of Finance Act 2023. The County Government have taken various measures to address the increase in the percentage of the wage bill by undertaking the following; i. Improving our own-source revenue by automation of the revenue hence lowering the personnel ratio. ii. The county is going to maintain a sustainable recurrent expenditure by strictly adhering to austerity measures and hence free more resources to development expenditure over the medium term. iii. Adjusting non-priority expenditures to cater to the priority sectors by deterring the increase of recurrent expenditures in favor of productive capital spending. c) The approved expenditures of a County Assembly and County Executive will be as per the County Allocation on Revenue Act 2024. d) The County Government’s actual expenditure on development shall be at least thirty percent of the County Government's total expenditure. The current expenditure is 36% and it’s projected to be 32% in the 2024-25 financial year. e) A reasonable degree of predictability concerning the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future. 24 73. In the FY 2024/25 and the medium term, the County Treasury will ensure that the budgets are prepared in a way that ensures strict adherence to these principles. For the County to achieve the above fiscal responsibilities the following controls will be exercised; a) Legislative (County Assembly) control: The Authority of raising revenue and their appropriation is provided by the County Assembly. The County Executive Committee will work closely with the County Assembly to ensure the legitimacy of collection of taxes and appropriation of the same. b) The Controller of Budget: the office of the controller of the budget will oversee the implementation of county budgets by authorizing withdrawals from the county revenue fund. c) The Auditor General: The office of the Auditor-General will be involved in auditing the accuracy of all accounts, the propriety of the expenditure, and the appropriateness of all county public finance matters. d) In collaborating with the office of the Auditor-General, the county treasury will ensure efficiency, effectiveness and guard against unauthorized expenditure. Fiscal Structural Reforms 74. Prudent public financial management is critical for the achievement of the county’s development aspiration as detailed in the CIDP 2023-2027. Progress has been made in improving the efficiency of institutions and resource management including rolling out of additional Integrated Financial Management and Information System (IFMIS) Modules. The county government will continue building the capacity of its technical officers so that they can competently undertake the public financial management reforms including operationalization of e-procurement platform. 75. The County Government has also established the Office of the County Attorney that is entitled to provide legal services to the County Government. The mandate of the Office are; the principal legal adviser to the County Government; attend the meetings of the County Executive Committee as an ex-officio member of the Executive Committee; represent the County Executive in court or in any other legal proceedings to which the County Executive is a party, other than criminal proceedings; advise departments in the County Executive on legislative and other legal matters; negotiate, draft, vet and interpret documents and agreements for and on behalf of the County Executive and its agencies as well as being responsible for the revision of County Laws. The creation of this Entity will further cause budget implications as more resources will be allocated to the Entity to enable it carry on with its mandate. 25 76. The County will continue to streamline monitoring and evaluation of County projects through operationalization of the electronic-County integrated Monitoring and Evaluation (e- cimes) System that will help in fast-tracking of the development projects and also improve on efficiency and effectiveness. 77. The County is in the process of preparing the County Statistical Abstract that will provide baseline indicators in all Sector for proper planning and decision making. This exercise will be undertaken in collaboration with the Kenya National Bureau of Statistics (KNBS). 78. The County Government undertook a further reorganization of its functions that saw the establishment of the Maralal Municipal Board. In line with provisions of the PFM Act 2012 and PFM Regulation 2015, the County has reviewed its policy framework to enable allocation to the new Entity to reflect the new realities and conform with the provision of the law. The County Assembly in this respect is working with County Executive will formulate and approve a framework for allocation of resources to the Municipal Board. 79. The county will undertake the operationalization of the contributory pension scheme for staff devolved from the national government who were previously under the non-contributory scheme. This is in line with the County Government Retirement Benefits Scheme Act of September 2019 which portends a contingent liability on the part of the County dating back to year 2013 the advent of devolution. Details on the level of liability will be provided in the Medium Debt Strategy Paper of 2023. 80. To achieve a result-oriented employee performance, the County Government will apply integrated tools on Result Based Management (RBM) with the rollout of the Performance Contracting (PC). Going into the next MTEF period 2024/2025-2026/2027 the County Government will continue to allocate resources aimed at inducting key county employees into a culture of performance as well as facilitating to the lowest level of management the process of performance contracting, vetting, and reporting. Budget Framework for proposed budget year 2024-25 81. The priority socio-economic sectors will continue to receive adequate resources to promote development. The health, education and social service sectors will receive significant share of resources in the budget in coming years. The sector actors are thus required to utilize the allocated resources more efficiently in order to generate fiscal space to accommodate other strategic interventions like disease outbreaks and improved productivity per man hour. 26 82. The economic sectors including agriculture and livestock will receive increasing share of resources to boost agricultural productivity with a view to promote value addition and deal with threats in food security in the county. In addition, the priority programmes under tourism, wildlife, trade, industry and cooperatives will be allocated adequate resources based on Programme based budgeting. 83. The fiscal framework for the financial year 2024/25 entails a deliberate effort to continue exercising prudence in public expenditure management with the principal goal of containing fiscal risks, gradually lowering the fiscal deficit, and adopting austerity measures to deter the increase of recurrent expenditures in favor of productive capital spending. 84. Going forward, and given the limited resources, MTEF budgeting will entail adjusting non- priority expenditures to cater to the priority sectors. In the meantime, the resource allocation will be based on the Annual Development Plan and the Fiscal Strategy Paper. Revenue Projections 85. The cumulative revenue forecast for FY 2024/25 will be Ksh 6.99 billion. This comprises an equitable share of revenue projected at Ksh 5.67 billion as provided in 2024 BPS and Ksh 641 million as conditional grants and loans. Own source revenue is projected to be Ksh 281 million. Summaries for both own source revenue and national transfers forecast over the medium-term period are as presented in Annex I. 86. The County Government will continue to adopt measures aimed at improving its own- source revenue to expand its fiscal space for development Programmes. This includes implementation of the Revenue Enhancement Strategy and reforms in local revenue administration that has seen a legislative review of the current revenue-related laws through the Finance Act 2024 which is aimed at strengthening local revenue performance. 87. Revenues from local sources are expected to finance 4% of the County Government’s expenditures while the balance will be financed by transfers from National Government and development partners. The national transfers in form of the equitable share of revenue and conditional grants will be firmed up on the passage the of Division of Revenue Bill and County Allocation of Revenue Bill 2024. 27 Expenditure Projections 88. In pursuing a balanced budget, the County Government has projected that overall expenditure will equal the forecasted County receipts for FY 2024/2025. The County Government’s total expenditure will be Ksh 6.99 billion in the FY 2024/2025. Compensation to employees will account for 42% of the total County budget approximately Ksh 2.95 billion. The proportion of the County wage bill above the envisaged level of 35% of total revenues as recommended in Section 25 of the PFM (County Government Regulations) 2015. To contain the percentage expenditure on staff salaries within the regulation requirement has enhanced the collection of its own-source revenues. Criteria for Resource Allocation 89. The PFM Act, 2012 and the PFM (County Regulations), 2015 set out fiscal responsibilities principles that guide the Medium-Term Expenditure Framework (MTEF) for the County. The Criteria for resource allocation will consider; a) Linkage of the Programme with the CIDP 2023-2028 and the objectives of the Fourth Medium-Term Plan of Vision 2030. b) The degree to which a Programme addresses job creation and poverty reduction. c) The degree to which the Programme is addressing the core mandate of the County department. d) Expected outputs and outcomes from a Programme; and e) Cost-effectiveness and sustainability of the Programme. f) On-going projects: emphasis will be given to completion of on-going capital projects and in particular infrastructure projects with high impact on poverty reduction, equity and employment creation; g) Counterpart funds: priority was also given to adequate allocations for projects with counterpart funding. Donor counterpart funds are the portion that the Government must finance in support of the projects financed by development partners. 90. Further allocation for other recurrent expenditures will remain at the current level. The allocation to the County Executive and the County Assembly will be recommended by Commission in Revenue Allocation later in the financial year. 28 91. The County allocation for development expenditure will stand at 32 % in FY 2024/2025. Total County development expenditure will be Ksh 2.25 billion. The County development expenditure needs will be primarily financed by the projected National transfers to County Government (the equitable share and the conditional grants). The expenditure allocations are shown in Table 7 under departmental Ceilings 2024/25. Deficit Financing 92. Reflecting on the projected revenue and planned expenditure the fiscal deficit is projected to be nil. In line with the PFM Act, 2012 borrowing can only be made to undertake development projects in line with the framework developed between the National and County Governments. Given this underlying reason, the County has projected a balanced budget with projected expenditure fully funded by own-source revenues, transfers from National Government, and approved donor support. 29 CHAPTER FOUR: DEVELOPMENT PRIORITIES 2024-25 Overview 93. (a) Resource Envelope The law provides for several sources wherefrom counties can generate revenues namely, transfers from national government (Article 202 & 204), local collection and borrowing (Article 212). The sources of revenue for County Government of Samburu in the past years have been from all of the above sources except borrowing. The transfers from national government comprise the equitable share (Article 202 (1) and additional conditional resources including grants (Article 202 (2) and Equalization fund (Article 204). The resource envelope available for allocation among the county’s departments is based on the County Government’s final resource projections contained in the medium term fiscal framework previously. The county will have completed revenue automation and roll out of an e-revenue system as a matter of priority to enhance own source revenue. (b) Spending Priorities The programmes and projects factor in the Kenya Kwanza Plan core pillars of Agriculture, Micro Small and Medium Enterprise (MSME), Housing, Universal Health Care and ICT, the Governor’s Manifesto and also by mainstreaming cross-cutting issues such as climate change; environmental degradation; Disaster Risk Management (DRM) HIV/AIDs; Gender, Youth and Persons Living with Disability (PLWD) and Ending Drought Emergencies (EDE). 94. County Assembly This department plays a key role in the implementation of development programmes in the County through representation, oversight, and legislation. It also plays the role of strengthening the democratic space and governance in the County. The County Assembly will implement programmes where the bulk of the funds will be for recurrent expenditure, to cater for salaries for staff, allowances for MCAs, and general office operations. The County Assembly will allocate Ksh 20 million to development expenditure for furnishing the debating chamber, the Speaker’s residence, and selected ward offices. These are multiyear projects; hence they will be funded in phases over the medium term. 30 95. County Executive The County Executive is charged with responsibilities of developing and implementing policies, strategies and development plans for county administration, public administration, public communications, public participation, legal and human resource management. It also plays a key role in inter-governmental relations and peace building. The Executive envisions to provide a transparent, accountable and people-centred administration. The County Government has fully established the devolved unit structure from county, sub county, ward and village unit levels. Most of the department activities are recurrent in nature. The few development projects in the department include completion of the Governor’s residences. 96. Public Service Board The department plays a key role in linking all other departments with key stakeholders, coordinating, and supervising the day-to-day County Government affairs, and managing human resources for efficient and effective service delivery. The Board is also mandated to Promote Values and Principles referred to in Articles 10 and 232 of Constitution of Kenya 2010 and also ensuring implementation of an effective employee performance appraisal and reward mechanism. 97. Finance, Economic Planning, and ICT This department is mandated to formulate sound economic policies, maximize revenue mobilization, ensure efficient allocation and accountability of public resources to achieve the most rapid and sustainable county economic growth and development. Strategies to attain the overall goal include strengthening the directorate of Monitoring and Evaluation, continuous training of staff on e-Procurement and adherence to the provisions of the PFMA, participatory planning and budgeting as well as mainstreaming cross-cutting issues to planning and budgeting, formulation of appropriate policies that provide the necessary legal framework for the development of ICT and its optimal use in the County and Sub-counties. The department will also ensure prudent financial management and internal controls for effective and efficient service delivery by all county government entities. To cater for unforeseen situation emergency fund will be allocated Ksh 30 million and a similar amount for staff medical insurance. Development budget has been allocated Ksh 20 million for expansion of ICT infrastructure, digitizing government services and automation of OSR. 31 98. Agriculture, Livestock, Fisheries and Cooperative Development The department is mandated to improve the livelihood of Samburu County residents by promoting competitive crop and livestock farming as a business through a conducive environment, effective and efficient extension support services and sustainable natural resource management. This sector is critical to the county’s economic growth and is identified as one of the key sectors in the county aimed at delivering the 10% economic growth rate under Vision 2030. The Sector accounts for about sixty percent (60%) to the County economy and therefore plays a major role towards poverty reduction and creation of employment opportunities. It also contributes to economic growth through forward and backward linkages with other sectors. The Sector is envisaged to play a significant role in the achievement of the targets set in the CIDP 2023-2027. To cushion farmers from adverse effects and further secure food supply chain over the medium term the County will; i. Construction and furnishing of two (2) sub-county office blocks to house the three sub- counties departmental officers ii. Create an enabling environment for livestock production. iii. Promote climate smart livestock production system. iv. Increase livestock and honey production. v. Increase market access for livestock and their products. vi. Provision of subsidized fertilizer and seeds. vii. Increase food production through irrigation schemes. viii. Create an enabling environment for fish production. To achieve the above targets, Ksh 814,238,669 has been allocated for the sector in the 2024/2025 budget which include Ksh 356,826,923 from partners. 99. Water, Environment, Natural Resources and Energy This is a critical sector in the County economy with the mandate to protect, conserve and improve access to adequate and safe water and other natural resources for sustainable socio-economic development. Under the sector, the assigned functions to the County Governments include soil and water conservation, forestry, storm-water management, water sanitation services, air pollution, noise pollution, other public nuisance, and outdoor advertising. 32 The department envisions encouraging the usage of green energy and supplying clean and safe drinking water through rehabilitation and expansion of the existing water infrastructures, spring protection, drilling boreholes encouraging and supporting roof harvesting in public institutions. The goal in the medium term is to reduce the distance to the water points through water reticulation. The sector will increase forest cover by promoting planting of trees, and carrying out Climate Change mitigation and adaptation activities. To achieve its objective, the sector has been allocated Ksh 407,359,682 in FY 2024/2025. The main areas of allocation include; i. Drilling and equipping of boreholes. ii. Water supply pipeline extensions and rehabilitations of water Infrastructures. iii. Construction and desilting of Earth dams/pans and sand dams. iv. Construction of Storage tanks and Rock catchments. v. Improve solid waste management in the county. vi. Improve garbage collection in towns and markets. vii. Support implementation of adaptation and mitigation Measures towards addressing Climate Change effects. viii. Control soil erosion. The operation and maintenance amount are exclusive of a World Bank grant under FLLoCA for institutional support in climate change action. 100. Education and Vocational Training. The Fourth Schedule of the Constitution has assigned the county level responsibility for pre- primary education, village polytechnics, home craft Centre’s, childcare facilities and ECDE sports development. The sector’s goal is to provide, promote and coordinate quality education and training, integration of science, technology, and innovation in the sustainable socio-economic development process. In the FY 20 24/2025, the sector intends to; i. Construct forty-five (45) ECDE classrooms and Kitchens. ii. Construct seventy-five (75) Sanitary blocks. iii. Construct thirty (30) Offices, and fencing of ECDE centers. iv. Supply sixty (60) sets of child appropriate furniture. v. Provide forty-five (45) outdoor fixed play and learning materials. vi. Bursary disbursement and pre-school feeding programme. vii. Construct training workshop at Maralal vocational training Centre (MVTC). viii. Construct a kitchen and fencing at Maralal vocational training center. To achieve its objective, the sector has been allocated Ksh 764,459,484 in FY 2024/2025 33 101. Medical Service, Public Health, and Sanitation The department is responsible for providing equitable and affordable health care to the County residents. To achieve this, the department will have the following interventions; i. Procurement of health commodities in the county (Drugs and non-pharmaceuticals) ii. Procurement of Equipment’s for the new Outpatient and inpatient at SCTRH. iii. Construction/ conversion of the old OPD block to an accident and emergency Centre. iv. Construction and equipment of Maternity at Archers Post Sub County Hospital. v. Construction and equipping of laboratory at various locations. vi. Construction and equipping of Health Centre at various locations. vii. Construction and equipping inpatient ward in various locations. viii. Procurement and Installation of Solar Lighting access in facilities. ix. Purchase of Shelves and Furniture in various facilities. To achieve the above the department has been allocated Ksh 1,406,362,224 in FY 2024/2025. The recurrent amount includes a conditional grant of Ksh 7.1 million from DANIDA. The FIF Act 2023 will be applicable to the concerned facilities and the amount to FIF will depend on the amount raised. The fund will be used to aid facilities operations and maintenances. 102. Lands, Housing, Physical Planning and Urban Development The mission of the department is to facilitate improvement of livelihood of county residents through efficient administration, equitable access, secure tenure and sustainable management of the land resource to keep pace with the economic and market trends in a local and regional context. To achieve the above targets, in FY 2024/2025, the sector has been allocated Ksh. 345,900,095 in the year the department will undertake the following; i. To conduct fixed/ cadastral survey for purposes issuing lease certificates. ii. Establish Land Information Management System. iii. To hold in trust and support registration of community land. iv. To Prepare Physical and Land Use Development Plans for the county and various urban areas. v. To prepare Community Land Use Plans. vi. To manage Maralal Municipality for sustainable urban development, manage fire disasters and continue with Cabro Block Paving program. vii. To manage Maralal Municipality for sustainable urban development. viii. To manage urban areas for sustainable urban development. 34 103. Roads, Transport and Public Works The sector is a key enabler for sustained development of the economy through the provision of the necessary infrastructure. The mission of the department is to promote and improve livelihoods for Samburu residents through sufficient and quality roads and transport networks to facilitate delivery of essential services and facilitate construction and maintenance of buildings in the county and other public works for sustainable social and economic development. Over the medium term in order to ensure that Samburu residents enjoy the benefits of expanded road network, the government will-; i. Construct new roads, ii. Carry out road maintenance, iii. Grade and gravel feeder roads, iv. Construct new bridges and v. Construct drainage structures (culvert, drift and gabions). The total budget estimate for the sector is Ksh 493,554,914 in FY 2024/2025. 104. Tourism, Trade, Enterprise Development and Co-operatives This department is responsible for market development, industrial promotion, promotion of tourism development, creating an environment conducive to investment, and promotion of trade in the County. The interventions aligned in this year include; i. Youth and women enterprise fund support. ii. Construction and rehabilitation of Markets. iii. Promotion and support of viable and self-sustaining cooperatives. iv. Construction of Ushanga shades. v. Procurement of beads and equipment for Ushanga cooperatives. vi. Establish and equip one (1) Eco-Lodges at the North and Central sub-counties. vii. Establish two (2) campsites. viii. Construction and fencing of rangers camps in various location. ix. Continue funding both new and old the conservancies. To achieve these goals, the County Government has allocated Ksh 481,276,922 in FY 2024/2025. 35 105. Gender, Culture, Social Services, Sports and Youth Affairs The department mission is to formulate, mainstream and implement responsive policies through coordinated strategies for sustainable social-cultural, sports and youth empowerment in the County. The sector is involved in vocational rehabilitation and training; social infrastructure development and gender mainstreaming; community support services; prevention and promotion of County culture and heritage; provision of public library services; training of youth in life skills and construction/refurbishment of sports facilities. The main activities for the sector includes; i. Contribution to the disability fund. ii. Support women empowerment programs. iii. Organizing the annual Samburu cultural festivals. iv. Support and capacity building on Gender Based Violence. v. Control and regulate Liquor and other substances. vi. Rehabilitations of various playground. vii. Support of sport activities, talent nurturing and development. viii. Support youth empowerment programs. To achieve the above targets, the sector has been allocated Ksh 227,759,572 in the FY 2024/2025. 36 CHAPTER FIVE: ASSUMPTIONS AND RISKS UNDERLYING BUDGETARY AND FISCAL POLICY Overview 106. This chapter provides an assessment of assumptions and risks underlying the budgetary and fiscal policies that the county economy is exposed to that may affect the achievement of targets and objectives detailed in this CFSP. The economy is prone to both internal and external shocks. The capacity to translate policy priorities into the budget, and then to ensure conformity of actual expenditures with the budget, depends in large part on the soundness of projections and revenue forecasts. The risks arise from the assumptions that underlie the definition of targets and instruments in areas such as monetary policy, fiscal policy, exchange rate and trade policy, debt policy, regulation and promotion of private-sector activities, and reform of public` enterprises. 107. Emergency of these risks could make it difficult for the government to actualize and sustain the policies detailed in this document. Thus, this section also details measures that the government will implement to mitigate such risks. Assumptions 108. Projections are based on critical assumptions about GDP, wage and productivity trends, interest rates and much more. Key social and economic assumptions underlie these projections, including the estimated impact of fiscal trends on national output, prices, and interest rates. 109. The basic assumption that has been applied in this plan is full management and control of Covid- 19 and all related funding support has ceased. Therefore, all economic activities are expected to gradually recover from the effects of the pandemic. This implies that the multiplier effects in the local economy will likely be felt in the course of the year. An increase in economic activity in the County will accelerate the achievement of the targeted revenues and have the County channel the funds meant for Covid-19 management to development programmes. 110. Macroeconomic policies are typically assumed to be "unchanged" over the projection period and based on current fiscal and monetary policies. Interest rates will remain relatively static both in terms of investments and borrowing, inflation is assumed to be moderate and Capital investment is proposed to increase substantially given the assumptions around interest rates. The forecasts represent the likely outcomes for growth. 37 111. The County is highly dependent on revenues from the National Government and Conditional Grants from various Development Partners. To this end, the County expects that all the revenues streams will be released to the County for all the anticipated programmes and projects to take off. 112. To ensure planned and sustainable growth the County Government will continue to synergize its efforts in implementing the socio-economic priority programmes as articulated in the County’s Integrated Development Plan III (2023-2027) and all other relevant policy documents. The County is desirous of ensuring that ongoing programmes and projects are undertaken and completed. 113. Adherence to all the fiscal principles as captured in the constitution of Kenya 2010, and the PFM Act, 2012 is of the essence in the County operations. All programmes and projects implemented are to also adhere to other legal instruments such as the Procurement and Disposal Act and Regulations among other existing policy guidelines. 114. Disruptive events, such as industrial action, political activities among others are not expected to hinder the implementation of the programmes and projects targeted for the FY 2024/25. Risks 115. All projections are subject to uncertainty. This means that events such as natural disasters, wars, pandemics, advancement of technology among others cannot be projected given current information and methods. The risk to the projected outlook for 2024/2025 FY Budget and Medium Term emanate from both external and internal quotas. The County Government in pursuing its goal of improving the livelihoods of the residents through its change Agenda acknowledges that various risks may hinder the fulfilment of its fiscal objectives. 116. The local economy is highly dependent on the performance of the global economy since the National Economy cannot operate as a closed system. An increase in international prices of oil has a direct effect on the national economy and trickles down to the county economy. Random shocks in the global economy will lead to slowed economic activities both nationally and at the county level. The above factors may affect the realization of the 2024/25 plan. The National government should develop policies to provide resilience as much as possible to counter the effects of international shocks and setbacks. 38 117. Livestock is the back bone of Samburu County’s economy. However, the changing climate is having far reaching impacts on livestock production, which are likely to challenge the sector in future. This is as a result of global warming and prolonged droughts may lead to reduced farm produce which affects food security in the country and the county. Reduced livestock activities will hurt the county’s local revenue. 118. Prolonged heavy rains leads to delay in implementation of projects other projects transforming to low economic growth in the county. The County needs to adopt the growth of drought-resistant crops and fast-growing crops to address the problem of prolonged drought. The timely implementation of development projects during favorable weather conditions should be prioritized. 119. The County Government should invest heavily in drainage systems and water harvesting for irrigation. 120. Unemployment is a great risk factor not just in the county but nationally and is a top potential for economic crisis. The financial, budgetary and economic effects of unemployment are profound. 121. High levels of unemployment mean that the government’s social spending must be increased, putting further pressure on the county’s budget. 122. The county government should create employment through adoption of policies that encourage labor intensive methods of production. 123. Untimely disbursement of funds from the National Treasury which is the major source of county resources may impede the implementation of the plan. Low/slow disbursement of donor funds may occur due to the prescribed conditions and funding guidelines on implementation procedures. 124. There is a need for the National Treasury to enhance timely releases of funds for the county government to pay the suppliers in good time. This will also help in curbing the problem of huge pending bills and unspent balances at the close of the financial year. 125. In light of the existing risks and the level of exposure, the County through the department has set into place implementation of the Risk Policy and mitigation measures. It is expected that the County Emergency Fund will alleviate the emergent issues not captured in the budget. 39 CHAPTER SIX – CONCLUSION 126. The set of policies outlined in the CFSP 2024 aims at striking a balance between changing circumstances and emerging issues. The fiscal policies are broadly in line with the CIDP 2023-2027 and the fiscal responsibility principles outlined in the PFM Act. They are also consistent with the national strategic objectives outlined in the 2024 BPS which set a basis for County Government allocation of public resources. Details of these strategic objectives are contained in the County Integrated Development Plan (2023-2027). The policies and sector ceilings annexed herein will guide the sectors/departments in finalizing and adjusting 2024/2025- 2026/2027 Draft MTEF budget estimates. 127. The ceilings set in this strategy paper will guide in the formulation of the FY 2024/2025 County budget. The public views from all relevant stakeholders have sufficiently been considered through public participation, sector hearings and information technology based channels. The collected views are the basis for planning, prioritization, and resource allocation. Despite the fact that there are numerous competing needs, the County continues to grapple with constrained resources. Therefore, it is necessary for all County entities and spending units to allocate the available resources in order of priority to exterminate possible wastage so as to achieve maximum social and economic benefits to the citizens of Samburu. 128. Proper implementation of the budget is thus critical towards providing services that will promote sustainable growth. Sustainability requires greater effort from all the stakeholders including County Government Departments, Civil Society, Communities, County Assembly, and development partners to ensure programmes/projects are implemented. This means providing for continuous consultation, monitoring finding solutions and encouraging innovation to build a sustainable County. 40 ANNEXES Table 1: First Six months local Revenue 2023-24 Month Exchequer Local Revenue Dev Partners Total July 475,516,562 30,411,004 0 505,927,566 August 0 35,079,770 0 35,079,770 September 923,061,561 18,857,855 0 941,919,416 October 0 30,127,356 300,000 30,427,356 November 0 14,195,467 0 14,195,467 December 447,544,999 13,849,039 0 461,394,038 Total 1,846,123,122 142,520,491 300,000 1,988,943,613 Percentage 93% 7% 0% Source: County Treasury 2024 Table 2: Local Revenue Analysis by departments (31-12-2023) Department Budget/Target Own % Variance Finance, Economic Planning and ICT 803,400 2,773,508.45 345% 1,970,108 Agriculture, Livestock Development, Veterinary Services and Fisheries 25,293,800 5,558,181.00 22% (19,735,619) Water, Environment, Natural Resources and Energy 16,510,500 2,512,910.00 15% (13,997,590) Education and Vocational Training - 0 0% - Medical Services, Public Health and Sanitation 17,624,000 5,779,942.00 33% (11,844,058) Lands, Housing, Physical Planning and Urban Development 36,800,000 2,095,926.00 6% (34,704,074) Roads, Transport and Public Works 6,577,900 475,000.00 7% (6,102,900) Tourism, Trade, Enterprise Development and Cooperatives 146,237,800 122,881,673.45 84% (23,356,127) Culture, Social Services, Gender, Sports and Youth Affairs 6,180,000 443,350.00 7% (5,736,650) Totals 256,027,400 142,520,491 56% (113,506,909) Source: County Treasury 2024 41 Table 3: First Six months External Revenue 2023-24 DESCRIPTION JULY SEPT TOTAL Q1 OCT DECEMBER TOTAL Q2 TOTAL Q1+Q2 Exchequer releases 475,516,562 923,061,561 1,398,578,123 0 447,544,999 447,544,999 1,846,123,122 CRF b/f 718,000,000 718,000,000 0 - - 718,000,000 Agricultural Sector Development Support Programme (ASDSP) II 0 0 0 300,000 0 300,000 300,000 TOTAL 1,193,516,562 923,061,561 2,116,578,123 300,000 447,544,999 447,844,999 2,564,423,122 Source: County Treasury 2024 Table 4: Comparison of Budget Estimates and Actual Expenditure. (31-12-23) DEPARTMENT RECURRENT (Ksh). Actual (Ksh) DEVELOP MENT (Ksh.) Actual (Ksh) TOTAL (Ksh) Total -Actual (Ksh) Total Variance (Ksh) County Assembly 573,999,097 328,927,188 95,000,000 36,754,844 668,999,097 365,682,032 303,317,065 County Executive 500,198,050 171,708,000 16,259,000 0 516,457,050 171,708,000 344,749,050 Finance, Economic Planning and ICT 688,456,927 193,977,146 47,694,000 0 736,150,927 193,977,146 542,173,781 Agriculture, Livestock Development, Veterinary Services and Fisheries 182,328,546 92,645,717 884,394,296 2,959,150 1,066,722,842 95,604,867 971,117,975 Water, Environment, Natural Resources and Energy 180,973,517 72,781,829 350,679,000 17,406,605 531,652,517 90,188,434 441,464,083 Education and Vocational Training 607,265,310 250,243,444 188,195,000 0 795,460,310 250,243,444 545,216,866 Medical Services, Public Health and Sanitation 1,303,644,257 619,552,646 329,977,124 7,636,070 1,633,621,381 627,188,716 1,006,432,665 Lands, Housing, Physical Planning and Urban Development 172,927,578 94,749,103 94,130,000 16,695,203 267,057,578 111,444,306 155,613,272 Roads, Transport and Public Works 116,682,832 52,571,398 299,500,000 30,887,700 416,182,832 83,459,098 332,723,734 Tourism, Trade, Enterprise Development and Cooperatives 235,413,566 65,390,690 342,200,000 16,899,710 577,613,566 82,290,400 495,323,166 Culture, Social Services, Gender, Sports and Youth Affairs 167,317,252 114,837,082 47,700,000 10,556,380 215,017,252 125,393,462 89,623,790 TOTAL 4,729,206,932 2,057,384,243 2,695,728,420 139,795,662 7,424,935,352 2,197,179,905 5,227,755,447 Percentages 64 94 36 6 Source: County Treasury 2024 Table 5: Economic Classification of Expenditure (31-12-2023) Description Budget Estimates 2023/2024 Total Expenditure 2023/2024 % of Expenditure Personnel Emoluments 2,627,847,563 1,160,533,669 53% Operational and Maintenance 2,101,359,369 896,850,573 41% Development Expenditure 2,695,728,420 139,795,662 6% TOTAL 7,424,935,352 2,197,179,904 100% Source: County Treasury 2024 42 Table 6: Revenue Estimates for the period ITEMS Approved 2023/24 Projection 2024/25 Projection 2025/26 Projection 2026/27 COUNTY GENERATED REVENUE Land Rates 36,800,000 40,480,000 42,504,000 46,648,000 Single Business Permits 16,000,000 17,600,000 18,480,000 20,281,000 Total Cess Receipts 12,312,000 13,543,200 14,220,300 15,606,000 Game Parks/Nature Reserves Fees 125,983,800 138,582,180 145,511,000 159,699,000 Markets and Slaughter House Fees 11,000,000 12,100,000 12,705,000 13,943,000 Vehicle Parking Receipts/Transport 5,326,000 5,858,600 6,151,500 6,751,000 Wheat Cess 288,400 317,240 333,100 365,000 Hospital Charges 17,000,000 18,700,000 19,635,000 21,549,000 Liquor License 6,180,000 6,798,000 7,137,900 7,833,000 Various Health Departments Fees 624,000 686,400 720,700 791,000 Agricultural Machinery Services 1,693,400 1,862,740 1,955,800 2,146,000 Approval of plans and supervision 1,251,900 1,377,090 1,445,900 1,586,000 Hawker 1,854,000 2,039,400 2,141,300 2,350,000 Miscellaneous Revenue 803,400 883,740 927,900 1,018,000 Advertisement 2,400,000 2,640,000 2,772,000 3,042,000 Environment and conservancy 16,510,500 18,161,550 19,069,600 20,929,000 SUB-TOTAL LOCAL SOURCES 256,027,400 281,630,140 295,711,000 324,537,000 SUMMARY 10% 25,602,740 Revenue from Local Sources 256,027,400 281,630,140 295,711,000 324,537,000 Revenue transfer from national government 5,594,312,489 5,676,595,277 5,861,744,200 5,948,170,400 Aggregated Industrial Parks Programme Conditional Grant-Leasing of Medical Equipment 124,723,404 DANIDA (Health support funds) 8,431,500 7,117,500 4,270,500 2,135,250 World Bank Loan for National agricul- tural and rural inclusive growth project 150,000,000 Mineral Royalties 905,740 17,501 17,501 17,501 De- Risking and Value Enhancement (DRIVE) -livestock 207,839,480 43 Fertilizer subsidy 12,431,664 Agriculture Sector Development Support Programme (ASDSP) 2,793,523 Kenya Livestock Commercialization Project (KELCLOP) 37,500,000 41,250,000 41,250,000 41,250,000 Kenya Urban Support Program (Grant)- UIG 35,000,000 35,000,000 35,000,000 IDA (World Bank) - Credit - Food Systems Resilience Project(FSRP) 173,076,923 173,076,923 173,076,923 Road Maintenance Levy Fund 168,450,780 168,450,780 168,450,780 Community Health Promotors 36,404,915 36,404,915 36,404,915 IDA (World Bank0 Credit- Second Kenya Devolution Support Program (KDSP II) 37,500,000 37,500,000 37,500,000 World bank loan for National agricultural and rural inclusive growth project B/F 39,696,527 Agriculture Sector Development Support Programme (ASDSP) B/F 27,783,925 ELRP( Locust) 200,970,152 142,500,000 142,500,000 142,500,000 ELRP( Locust) b/f 53,393,156 Finance Locally led Climate Action Program(FLLoCA) b/f 17,600,000 Fuel Levy b/f 11,615,658 KDSP B/F 10,380,389 KUSP-UIG b/f 1,317,155 KUSP-UDG b/f 1,194,559 Balance brought forward 2022-23 - CRF 794,929,376 400,000,000 300,000,000 200,000,000 Finance Locally led Climate Action Program(FLLoCA) 11,000,000 GRAND TOTAL 7,564,846,097 6,999,543,036 7,095,925,819 7,109,042,769 Source: County Treasury 2024 44 Table 7: MTEF Sector Ceilings 2024/2025 - 2026/27 INITIAL BUDGET 2023/24 Development Partners NETT % Approved Supp Budget 2023/24 Development Partners NET % similar % share as this year Arbsorp- tion 22-23 Loans,grant and development partners CFSP Ceilings 2024/25 Projected Estimates 2025/26 Projected Estimates 2026/27 County Assembly 668,999,097 - 668,999,097 10 687,999,097 - 687,999,097 10 647,510,995 100% - 665,430,761 664,593,650 665,840,650 County Executive 516,457,050 - 516,457,050 8 513,198,050 - 513,198,050 8 499,868,564 97% - 597,3