REPUBLIC OF KENYA COUNTY GOVERNMENT OF MACHAKOS COUNTY BUDGET REVIEW AND OUTLOOK PAPER September, 2019 FOREWORD The Machakos County Budget Review and Outlook Paper 2019 was prepared pursuant to Section 118 of the Public Financial Management Act, 2012. It focuses on the fiscal year ending 30th June 2019 compared with the year on year growth for similar period in the Financial Year 2017/18. Global economic activity is expected to slow down to 3.2 percent in 2019 from 3.6 percent in 2018 with prospects across countries and regions remaining uneven. Growth prospects for sub-Saharan Africa continue to strengthen, with a projected growth of 3.4 percent in 2019 from 3.1 percent in 2018. Locally, the County fiscal analysis for FY 2018/2019 revealed an improved performance in both revenues (especially Own Source Revenue) and expenditure compared to similar period in FY 2017/2018. Funds absorption improved to Kshs.11.788billion in period under review from Kshs. 9.119billion in the previous year. It is expected that the various revenue measures put in place, will enable the County sustain the current revenue collection momentum and achieve its local revenue collection potential in the coming years. As the County continues with implementation of FY 2019/20 budget, departments are called upon to adhere to the circulars issued by treasury to ensure prudent use of the scarce resources available to the County. Preparation for the 2020/21 budget has commenced and all stakeholders are urged to adhere to the strict deadlines contained in the circular released to departments in August, 2019 to enable finalization and appropriation of the FY 2020/21 budget as envisaged in the PFMA, 2012. I TABLE OF CONTENTS FOREWORD ................................................................................................................................................... I TABLE OF CONTENTS .................................................................................................................................. II LIST OF FIGURES ......................................................................................................................................... III ABBREVIATIONS AND ACRONYMS ........................................................................................................... IV CHAPTER ONE .............................................................................................................................................. 1 1.0 INTRODUCTION ........................................................................................................................... 1 A. Legal Basis for the Preparation and Publication of the County Budget Review and Outlook Paper ..................................................................................................................................................... 1 B. County Government Fiscal Responsibility Principles ................................................................... 2 C. Objectives of the County Budget Review and Outlook Paper ...................................................... 2 CHAPTER TWO ............................................................................................................................................. 4 2.0 REVIEW OF FISCAL PERFORMANCE IN FY 2018/19 .................................................................. 4 2.1 Fiscal Performance FY 2018/2019 ................................................................................................ 4 CHAPTER THREE ......................................................................................................................................... 12 3.0 Recent Economic Developments and Fiscal Outlook ................................................................. 12 3.1. Introduction ................................................................................................................................. 12 3.2 Macroeconomic outlook and policies .......................................................................................... 12 3.3 Medium Term Fiscal Framework............................................................................................ 15 3.4 Risks to the Outlook ................................................................................................................ 15 CHAPTER FOUR .......................................................................................................................................... 17 4.0 RESOURCE ALLOCATION FRAMEWORK ........................................................................................ 17 4.1 Adjustment to the FY 2019/20 Budget .................................................................................. 17 4.2 Medium Term Expenditure Framework. ..................................................................................... 17 CHAPTER FIVE............................................................................................................................................. 19 CONCLUSION ......................................................................................................................................... 19 ANNEXES ..................................................................................................................................................... 20 Annex 1: County Total Revenue Projections in the Medium Term ....................................................... 20 Annex 2: Own Source Revenue Projections ........................................................................................... 21 Annex 3: Expenditure by Economic Classification in the Medium Term ............................................. 22 Annex 4: Programme Based Expenditure in the Medium Term ............................................................ 27 Annex 5: County Sector Ceilings ............................................................................................................ 33 Annex 6: Key Activities Implemented in FY 2018/19 .......................................................................... 36 Annex 7: County Sector Composition .................................................................................................... 41 Annex 8: Budget Calendar 2020/21 ..................................................................................................... 42 II LIST OF TABLES Table 1: Fiscal Out-turn for the FY 2018/2019 (Amounts in Kshs.) ............................................................. 5 Table 2: County Own Source Revenue per Stream .......................................................................................... 7 Table 3: Revenue Performance........................................................................................................................... 9 Table 4: Expenditure Performance by Economic Classification for the Period Ending 30th June, 2019 . 10 Table 5: Expenditure Performance for Period Ending 30th June, 2019 per County Entity ....................... 11 LIST OF FIGURES Figure 1: County Total Receipts for FY 2017/2018 ........................................................................................ 6 Figure 2: County Total Payments for FY 2018/2019 ...................................................................................... 6 Figure 3: Monthly County Own Source Revenue Performance ................................................................... 8 Figure 4: Comparative Quarterly Revenue Performance ................................................................................ 8 Figure 5: Comparative County expenditure for FY 2017/18 and 2018/19 (Amount in Kshs. billion) . 11 III ABBREVIATIONS AND ACRONYMS ADP Annual Development Plan AfCFTA African Continental Free Trade Area AU African Union CARA County Allocation Revenue Act CBROP County Budget Review and Outlook Paper CFTA Continental Free Trade Area CFSP County Fiscal Strategy Paper CG County Government CIDP County Integrated Development Plan COFOG Classification of Functions of Government CRF County Revenue Fund DANIDA Danish International Development Agency Dev’t Development ECDE Early Childhood Development Education FIF Facility Improvement Fund FY Financial Year GDP Gross Domestic Product ICT Information Communication Technology IFMIS Integrated Financial Management System IMF International Monetary Fund KCSAP Kenya Climate Smart Agriculture Project KDSP Kenya Devolution Support Program Kshs Kenya Shillings KUSP Kenya Urban Support Project MoDP Ministry of Devolution and Planning MTEF Medium Term Expenditure Framework MTP Medium Term Plan OSR Own Source Revenue PBB Programme Based Budget PFM Public Finance Management Rec. Recurrent RMFLF Road Maintenance Fuel Levy Fund UNECA United Nations Economic Commission for Africa IV CHAPTER ONE 1.0 INTRODUCTION A. Legal Basis for the Preparation and Publication of the County Budget Review and Outlook Paper 1. The County Budget Review and Outlook Paper is prepared in accordance with Section 118 of the Public Financial Management Act, 2012 which requires the County Treasury to prepare and submit County Budget Review and Outlook Paper to the County Executive Committee for approval by 30th September in each financial year. The paper includes: a) Actual fiscal performance in the previous financial year compared to the budget Appropriation for that year; b) Updated economic and financial forecasts with sufficient information to show changes from the forecasts in the most recent County Fiscal strategy paper c) Information on how actual financial performance for the previous financial year may have affected compliance with the fiscal responsibility principles or the financial objectives in the latest County Fiscal strategy paper; and d) The reasons for any deviation from the financial objectives together with proposals to address the deviation and the time estimated to do so. 2. County Executive committee shall consider the County Budget Review and outlook Paper with a view to approving it with or without amendments, not later than fourteen days after its submission. 3. Not later than seven days after the CBROP has been approved by Executive committee, the County Treasury shall: a) Submit the paper to the Budget and Appropriation Committee of the County Assembly to be laid before the County Assembly; and 1 b) Publish and publicize the paper not later than fifteen days after laying the Paper before County Assembly. B. County Government Fiscal Responsibility Principles In line with chapter 12 of the Constitution of Kenya, Section 107 of the Public Financial Management (PFM) Act, 2012 1. The County Government’s recurrent expenditure shall not exceed the County Government’s total revenue 2. Over the medium term, a minimum of 30% of the County budget shall be allocated to development expenditure 3. The County Government’s expenditure on wages and benefits for public officers shall not exceed a percentage of the County Government revenue as prescribed by the regulations. 4. Over the medium term, the County Government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure. 5. Public debt and obligations shall be maintained at a sustainable level as approved by County Government (CG) 6. Fiscal risks shall be managed prudently 7. 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 C. Objectives of the County Budget Review and Outlook Paper 1. The 2019 CBROP aims to provide a review of the fiscal performance for the FY 2018/2019 and how the outcomes impacted the County’s financial objective and fiscal responsibility principles as envisaged in the PFM Act 2012 and CFSP 2019. This information alongside other emerging issues will provide the basis for revising the current budget FY 2019/20 via supplementary budget proposals. 2. Based on the indicative County resource envelope, the CBROP 2019 will also relay the primary sector ceilings for the FY 2020/2021 budget inclusive of indicative projections for the FY 2021/2022 and 2022/2023 MTEF period. These ceilings will set off the budget preparation process for the fiscal year 2020/2021. 2 3. The paper is organized into four chapters: Chapter II provides a review of fiscal performance in FY 2018/2019 and its implication on the 2019 CFSP financial objectives; Chapter III studies the recent economic developments and the updated National and County macroeconomic outlook; Chapter IV and V contains the proposed sector budget ceilings in the medium term and the Conclusion respectively. 3 CHAPTER TWO 2.0 REVIEW OF FISCAL PERFORMANCE IN FY 2018/19 Overview 1. The Fiscal Year 2018/19 marked the fourth year of Programme Based Budgeting (PBB) for all County Government entities as per section 12 of the second schedule of the PFM Act 2012. During the FY 2018/19 there was a great improvement in local revenue collection and absorption of both development and recurrent expenditure as compared to similar period in FY 2017/18. 2. During the year under review total County revenue target amounted to Kshs. 14.97 Billion comprising Kshs. 8.33 Billion for Equitable share, Kshs. 3.04 Billion being conditional grants, Ksh. 1.88 Billion being unspent funds carried forward from Financial Year 2017/2018 and Ksh. 1.72 Billion as the Own Source Revenue target. 3. In the reporting period the execution of the total budget, the expenditure declined by 2.70 percent from 80.56 percent in the previous financial year 2017/18 to 77.86% in FY 2018/19. Development expenditure increased by 4.86 percent and recurrent expenditure declined by 7.56 percent as compared to financial year 2017/18. The County spent a total of Kshs. 11.65 Billion during financial year 2018/19 against a target of Kshs. 14.97 Billion representing an execution rate of 77.86 percent. The recurrent expenditure for the period under review represents 57.16 percent of the annual recurrent budget while development expenditure represents 20.70 percent of the annual development budget. The absorption of development expenditure was hampered by delays in disbursement of funds by the exchequer. 2.1 Fiscal Performance FY 2018/2019 2.1.1 Revenue performance 4. The Own Source revenue target was Ksh. 1.72 Billion while the actual collection was Ksh. 1.56 Billion resulting to under collection of 162.85 Million (9.3%). However the actual collection amount was a 21.57% improvement from Financial Year 2017/2018. 4 Table 1: Fiscal Out-turn for the FY 2018/2019 (Amounts in Kshs.) Approved Budget Revised Budget Actual 2018/19 2018/19 Total Revenue 12,231,106,620.00 14,965,224,307.15 13,770,646,445.00 Equitable Share 8,321,000,000.00 8,321,000,000.00 8,321,000,000.00 National Government 2,190,044,946.00 3,039,877,406.15 2,008,149,578.00 transfers Local Revenue 1,720,061,674.00 1,720,061,674.00 1,557,211,641.00 Unspent Balances B/f - 1,884,285,227.00 1,884,285,227.00 Total Expenditure 11,787,987,278.15 Recurrent 7,630,313,697.00 9,569,675,918.05 8,690,270,166.30 County Assembly 936,776,339.00 936,776,339.00 926,495,715.60 County Executive 6,693,537,358.00 8,632,899,579.05 7,763,774,450.70 Development 4,600,802,922.50 5,395,548,389.00 3,097,717,111.85 County Assembly 236,000,000.00 294,000,000.00 24,186,538.85 County Executive 4,364,802,922.50 5,101,548,389.00 3,073,530,573.00 Source: Machakos County Financial Statement FY 2018/19 5. The County Government received Kshs. 13.33billion against the expected Kshs. 14.97billion by the end of the FY 2018/19. This represented 92% receipt of funds both from national Government and own source revenue. Equitable share accounted for a larger portion of receipts at 62% with proceeds from domestic/foreign grants accounting for 15%. This is illustrated in figure1 below. 5 Figure 1: County Total Receipts for FY 2018/2019 Receipts Equitable Share 11% Transfer from Other 12% Government Entities 15% 62% Own Source Revenue CRF Returns 6. Total expenditures stood at Kshs. 11.79Billion in the period under review with recurrent and development expenditures accounting for Kshs. 8.69 Billion and Kshs. 3.10 Billion respectively. Compensation to employees formed the larger part of expenditures accounting for 45% and acquisition of assets consumed 14% of the expenditure as shown in figure 2 below. Figure 2: County Total Payments for FY 2018/2019 Payments Compensation to employees 14% Use of Goods & Services 45% 29% Transfer to Other Government Units 12% Acquisition of Assets 6 Table 2: County Own Source Revenue per Stream Printed Estimates Actual FY Printed Estimates Revenue Stream FY 2018/19 2018/2019 FY 2019/20 Land Rates &Debt Clearance Cert 218,212,494.88 279,731,890.00 342,111,755.00 Single Business Permit 233,469,566.74 186,038,661.00 273,817,246.00 Quarry 354,915,232.60 469,112,527.00 605,253,351.00 Sand Gravel 81,058,792.63 47,079,183.00 64,167,267.00 Market Fees 60,536,625.26 15,334,462.00 21,326,559.00 Plot/Stall Rent 17,575,630.49 14,232,315.00 20,763,762.50 Bus Park 90,918,689.83 102,790,677.00 144,865,515.00 House Rent 53,538,731.73 1,469,010.00 9,453,079.00 Refuse/Conservancy Fee 17,902,742.34 14,788,520.00 15,663,460.00 Sign Board & Advertisement Fee 47,665,574.66 35,831,811.40 46,075,487.50 Fire Fighting &Ambulance 18,808,929.37 32,171,141.00 43,629,326.00 Management Unit Slaughter House Fees/Livestock 7,553,398.42 16,074,086.40 27,553,203.70 Enforcement Management Unit 8,718,346.57 19,795,112.00 35,849,807.00 Building Plan Approval 273,142,473.55 182,816,818.00 345,187,514.00 Cess 9,463,102.29 10,823,081.00 16,409,866.00 Procurement Unit 864,098.68 - - Social Services &Sports 2,878,117.17 1,207,655.00 2,803,600.00 Management Unit Water Sales 534,630.75 164,000.00 563,473.00 Miscellaneous 9,379,851.57 588,433.00 995,486.00 House Loan Repayment 34,386.39 335,935.00 638,390.00 Salary Refunds/Salary Advance 35,891.54 10,000.00 20,000.00 Motor vehicle Registration 77,742.25 478,629.00 839,515.80 Health 124,849,803.59 60,902,769.00 109,015,960.80 Liquor 67,378,651.18 52,214,948.90 64,491,003.70 Tourism 2,055,527.74 313,655.00 849,965.00 Weights And Measures 975,294.44 1,138,211.00 1,636,246.00 Off street Parking Unit 17,190,228.68 8,613,865.00 10,935,760.00 Interest/Penalties On Stalls Rent 104,322.86 2,258,485.00 4,394,330.00 Agri Farm - 801,060.00 1,753,867.00 Noise Pollution - 94,700.00 1,599,950.00 Court Fines 222,795.82 - - TOTAL 1,720,061,674.00 1,557,211,640.70 2,212,664,746.00 Source: Machakos County Financial Statement FY 2018/19 7. Total own source revenue collections amounted to Kshs. 1.56 Billion against a target of Kshs. 1.72 Billion. This shows a deficit of Kshs. 162.85 Million of the target for the year under review. Total revenue collections compared to the previous FY 2017/2018 increased by Kshs. 473 Million (21.75%) 7 Figure 3: Monthly County Own Source Revenue Performance 2017/18 2018/19 50000000 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 50000000 0 8. On a month to month basis, local revenue performed better in FY 2018/19 between July and October compared to FY 2017/18 over the same period. However, between April and June of FY 2018/19 local revenue shot up with the best month in April, 2019 rising to Kshs. 454million as illustrated in figure 3 above. This is attributed to the waivers that were given in the last quarter of the financial year. Figure 4: Comparative Quarterly Revenue Performance 1.2E+09 1E+09 80000000 60000000 FY 2017/18 FY 2018/19 40000000 20000000 0 Qrt 1 Qrt 2 Qrt 3 Qrt 4 9. Figure 4 above indicates a tremendous improvement in the fourth quarter of FY 2018/19 compared to the same period in the 2017/18 FY. Revenue collections in that period rose from Kshs. 449.9million in FY 2017/18 to Kshs. 1billion in the year under review. The County is optimistic that with revenue collection measures put in place it will be able to meet its target in the current FY 2019/20. 8 Table 3: Revenue Performance Targeted Actual FY 2017/18 ( Actual FY Revenue Stream Revenue(Kshs) (B) Rate (%) A) 2018/19 ( C) FY 2018/19 Equitable Share 7,398,999,999 8,321,000,000.00 8,321,000,000.00 100.00 CRF Balance carried forward from FY 1,412,106,868.80 - 2017-18 Grant Balance Carried Forward from FY 472,178,358.00 - 2017-18 Level 5 Hospital 383,583,816 383,583,815.00 383,583,815.00 100.00 DANIDA Grant 30,290,934 24,806,250.00 24,806,250.00 100.00 Transforming Health Systems for Universal 29,813,086 95,401,875.00 39,211,189.00 41.10 Care Project Devolution KDSP 49,893,169 53,423,784.00 - Level 1 0 Development of Youth 65,957,023 54,295,000.00 40,992,724.00 75.50 Polytechnics User Fees foregone 24,764,877 24,129,039.00 24,129,039.00 100.00 RMFLF 288,391,504 219,084,683.00 219,084,683.00 100.00 Agricultural Sector 21,107,671.00 7,684,832.00 36.41 Development Project 0 Kenya Urban Support 1,018,320,500.00 1,018,320,500.00 100.00 Programme 0 Urban Institutional 41,200,000.00 100.00 Grant 0 41,200,000.00 Kenya Climate Smart 41,070,411.00 35.10 Agriculture Project 0 117,000,000.00 Universal Health Care 787,524,789.15 168,066,134.00 21.34 Project 0 Leasing of Medical 200,000,000.00 - Equipment 0 0 Own Source Revenue 1,720,061,674.57 1,557,211,640.70 90.53 Unspent Funds 1,884,285,226.80 - Total - Exchequers 8,271,694,408 14,965,224,308 13,770,646,445 92 Source: Machakos County Financial Statement FY 2018/19 10. The County received 10.3 Billion from the exchequer against a targeted amount of Kshs. 11.4 Billion. The exchequer release comprised of equitable share of Kshs. 8.3 Billion, Conditional grants of Kshs. 2.0Billion. Specific grants received by the County are as per table 3 above 2.1.2 Expenditure Performance 11. The total expenditure for the FY 2018/19 amounted to Kshs. 11.79 Billion against a target of Kshs. 14.97 Billion indicating a performance of 78.77%. The recurrent budget had the highest 9 absorption of 73.7% and Development budget of 26.3%. This low absorption is attribute to the late approval of the CIDP and late appropriation of the Supplementary Budget 2018/2019 Table 4: Expenditure Performance by Economic Classification for the Period Ending 30th June, 2019 Revised Estimates FY % of Total Economic Item Actual FY 2018/19 2018/19 Expenditure Compensation of 5,305,092,530.00 5,239,389,192.15 98.76 employees Use of goods and 2,385,138,729.00 58.56 Services 1,396,806,741 Grants and Transfers 3,991,210,476.00 3,416,660,115 85.60 Social Security Benefits 153,617,256.00 111,397,344.00 72.52 Acquisition of Assets 3,074,081,587.00 1,623,733,886.00 52.82 Other Payments 56,083,728.00 - - Sub Total 14,965,224,306.00 11,787,987,278.15 78.77 Source: Machakos County Financial Statement FY 2018/19 County Entities Expenditure Analysis 12. Categorization of spending by County entities is shown in the table 5 below. Five County entities recorded more than 50% budget execution rate. 13. During the reporting period, a supplementary budget was undertaken that was meant to spur infrastructural projects. 10 Table 5: Expenditure Performance for Period Ending 30th June, 2019 per County Entity Revised Actual Printed Estimates County Entity Estimates FY Expenditure FY FY 2018/19 2018/19 2018/19 Office of the Governor 612,543,697 612,543,697 400,509,391 Public Service, Quality Management and ICT 446,435,959 599,954,052 5,668,196,746 Trade and Economic Planning 226,685,600 244,685,600 118,741,791 Finance and Revenue Management 405,742,268 454,883,882 198,443,475 County Administration and Decentralized Units 405,833,441 492,833,441 113,563,681 Agriculture, Water and Irrigation 1,168,244,115 1,354,351,787 533,922,559 Health and Emergency Services 4,293,811,773 5,670,386,159 1,278,104,195 Roads, Transport and Public Works 1,623,395,016 2,046,867,641 1,047,914,387 Education, Youth and Social Welfare 584,516,490 708,986,788 207,153,869 Energy, Lands, and Urban Development 1,151,520,837 1,243,628,837 1,174,832,202 Tourism, Sports and Co-operative Development 96,188,445 236,811,174 84,286,971 County Public Service Board 43,412,639 68,514,909 11,635,757 County Assembly 1,172,776,339 1,230,776,339 950,682,254 Total 12,231,106,619 14,965,224,307 11,787,987,278 Source: Machakos County Financial Statement FY 2018/19 Figure 5: Comparative County expenditure for FY 2017/18 and 2018/19 (Amount in Kshs. billion) 10,000.00 9,000.00 8,000.00 7,000.00 6,000.00 5,000.00 FY 2017/18 4,000.00 FY 2018/19 3,000.00 2,000.00 1,000.00 - Recurrent Development 11 CHAPTER THREE 3.0 Recent Economic Developments and Fiscal Outlook 3.1. Introduction 1. This section gives an overview of recent economic developments and their impact at Global, Sub-Saharan Africa, East Africa Community, Country and County level. The performance of the County is dependent on the Country’s economic performance as well as formulation and implementation of prudent policies by the County Government. 2. The economic growth in 2018 remained resilient due to a stable macro-economic environment and positive investor confidence. 3.2 Macroeconomic outlook and policies 3.2.1 Global Economic Outlook 3. Global economic growth and activity has slowed down to 3.2 percent in 2019 and is expected to pick up at 3.5 percent in 2020 as forecasted in the 18th July, 2018 IMF World Economic Outlook report. 4. Global economic growth among emerging markets and developing economies remains subdued due to further trade and technological tensions, a protracted increase in risk aversion that exposes the financial vulnerabilities continuing to accumulate after years of low interest rates and mounting disinflationary pressures that increase debt service difficulties, constrain monetary policy space to counter downturns, and make adverse shocks more persistent than normal. 3.2.2 Sub Saharan Africa Economic Outlook 5. The economic recovery in sub-Saharan Africa continues. The regional growth is set to pick up from 3 percent in 2018 to 3.5 percent in 2019, before stabilizing at close to 4 percent over the medium term-or about 5 percent, excluding the two major economies, Nigeria and South Africa as per April, 2019 IMF Regional Economic Outlook Report. 6. The Agreement Establishing the African Continental Free Trade Agreement (AfCFTA) entered into force on 30 May 2019 for the 24 countries that had deposited their instruments of ratification. The members agreed to eliminate tariffs on most goods, liberalize trade of key services, address non-tariff obstacles to intra-regional trade, and eventually create a continental single market with free movement of labor and capital. The AfCFTA will establish 12 a market of more than 1.2 billion people, including a growing middle class, and a combined Gross Domestic Product (GDP) of more than US$3.4 trillion. In terms of numbers of participating countries, the AfCFTA will be the world’s largest free trade area since the formation of the World Trade Organization. Estimates from the Economic Commission for Africa (UNECA) suggest that the AfCFTA has the potential both to boost intra-African trade by 52.3 percent by eliminating import duties, and to double this trade if non-tariff barriers are also reduced. 7. However, the AfCFTA has risks. For benefits from regional integration to occur, African countries will have to reallocate resources within and between sectors. Most of the potential benefits of trade liberalizations accrue in the long run after economic resources have moved to their most efficient uses. This structural change brings with it costs of adjustment in the short-run. Potentially falling tariff revenues, for example, cause challenges for Governments or some sectors shrink and workers may face temporary unemployment. For the public sector, falling tariff revenues are a main concern of Governments in many developing countries, as it accounts for significant shares in Government budgets. A rise in the costs of social safety nets, e.g. in unemployment benefits, and implementation costs of trade reforms such as establishing new institutions, and reforming existing laws and regulations are other public costs of adjustment. 3.2.3 East African Community Economic Outlook 8. In 2018, real GDP in East Africa grew by an estimated 5.7 percent, slightly less than the 5.9 percent in 2017 and the highest among African regions. Economic growth is projected to remain strong, at 5.9 percent in 2019 and 6.1 percent in 2020. The countries with the highest economic growth are Ethiopia, Rwanda, Tanzania, Kenya, and Djibouti. In both Ethiopia and Rwanda, real GDP growth has been driven by industry and services. The service sector has also been the main driver of growth in Tanzania and Kenya, followed by the agricultural sector, the main growth driver from the supply side. On the demand side, consumption has been the main driver of economic growth across East Africa. 9. The region continues to face various downside risks that could undermine economic growth and development prospects. Major risks are agriculture’s vulnerability to the vagaries of nature, heavy reliance on primary commodity exports, and in oil-importing countries - rising oil prices. Another key risk is persistent current account deficits and related increases in external indebtedness. Finally, state fragility—with its adverse implications for security and economic progress is a risk for Burundi, Somalia, South Sudan, and to some degree, Ethiopia. 13 3.2.4 Domestic Economy Outlook 10. Real GDP grew an estimated 5.8% in 2018, from 4.9% in 2017, supported by good weather, eased political uncertainties, improved business confidence, and strong private consumption. On the supply side, services accounted for 52.5% of the growth, agriculture for 23.7%, and industry for 23.8%. On the demand side, private consumption was the key driver of growth. The public debt–to-GDP ratio increased considerably over the past five years to 57% at the end of June 2018. Half of public debt is external. The share of loans from non-concessional sources has increased, partly because Kenya issued a $2 billion Eurobond in February 2018. An October 2018 International Monetary Fund debt sustainability analysis elevated the Country’s risk of debt stress to moderate. 11. Real GDP is projected to grow by 5.7% in 2019 a slight decrease from the estimated 5.8% growth experienced in 2018 and 5.9 in 2020 according to the new World Bank Kenya Economic Update. Domestically, improved business confidence and continued macroeconomic stability will contribute to growth. 12. The Country continues to face the challenges of inadequate infrastructure, high income inequality, and high poverty exacerbated by high unemployment, which varies across locations and groups. It is also exposed to risks related to external shocks, climate change, and insecurity. 3.2.5 County’s Economic Outlook 13. The County Government has continued constructing, rehabilitating and maintaining access and feeder roads across the County through gravelling and grading to ease movement of goods and labor. 14. The residents of Machakos County have benefitted from the Universal healthcare pilot programme by the National Government. The Government has continued focusing on improving health infrastructure. The County Government has operationalized 121 dispensaries and 250 community hospitals since 2013. The Government also issued each health center in the County with triage kits. Recently the County Government opened a Cancer Care and Research Center at Machakos Level 5 Referral Hospital, bought five new advanced life support ambulances each for the four Level 4 hospitals and one to be based at Mombasa Road Kyumbi junction to handle emergencies along Mombasa road. 14 15. To improve access to clean and safe water, the County Government has for the last five years completed 436 boreholes, 260 sand dams (weirs), rehabilitation of 338 earth-dams and 2 mega dams. 35 boreholes have been connected to 10,000 litre water tanks and reticulated to households. Further, 1032 water tanks have been distributed to all Primary Schools in the County. 16. To promote sports development the County Government is constructing four stadiums at Ikombe, Masii, Mavoko and Kinyui. It has also distributed assorted sports equipment to various schools. 17. To boost revenue, the County Government has established an appropriate organizational structure for revenue collection and management with adequate and skilled staff, mapped and assessed all key Own Source Revenue (OSR) streams and is in the process of updating the valuation rolls in Machakos, Mavoko and Tala-Kangundo Municipalities. 3.3 Medium Term Fiscal Framework 18. In the Medium Term, the County Government’s expenditure will be guided by the County Integrated Development Plan (CIDP) 2018-2022, Vision 2030, National Government’s ―Big Four‖ Agenda, County Fiscal Strategy Paper and the Governor’s manifesto. 19. Medium Term Fiscal Framework will aim at improving Own Source Revenue collection so as to adequately fund equitable economic and social development across the County. 3.4 Risks to the Outlook Delay in Disbursements 19. Delayed disbursement of funds by the National Government will be another challenge as this could lead to disruption in the activities of the County and compromise service delivery. High wage bill 20. The County Government inherited staff from the national Government in addition to the staff from the defunct Local authority with the Health Sector contributing the highest percentage of the wage bill. The scheduled salary increment for various cadres of staff continues to increase the already bloated wage bill. Revenue shortfalls 21. Low revenue inflow has a negative impact on the economic activities in the County resulting to slow economic growth. The County has 26 revenue streams but only 7 contribute significantly in revenue collection. These are building plans, quarries, land rates, bus parks and Single 15 Business Permits. Quarries and sand are being depleted overtime which may adversely affect amount of revenue collected. Erratic weather patterns 22. Over the years the County has experienced erratic weather patterns that normally affect agriculture productivity which has led to poor economic performance and depressed livelihood. 16 CHAPTER FOUR 4.0 RESOURCE ALLOCATION FRAMEWORK 20. This section determines the resource envelope that the County expects and how it will be allocated across all the sectors for 2019/20 FY and in the medium term. 4.1 Adjustment to the FY 2019/20 Budget 21. Taking into account the previous year’s FY 2018/19 budget execution and the updated fiscal outlook, the risks to the FY 2019/20 budget include expenditure pressures with respect to remuneration of employees and the absorption rate by the different sectors especially for development expenditure. 22. Adjustments to the FY 2019/20 budget will take into account actual performance of expenditure so far and absorption capacity in the remainder of the financial year. Because of the resource constraints, the County will rationalize expenditures by cutting those that are discretionary. Supplementary funding will only provide funding for priority programmes and projects. 23. Though revenue collection has been below the targeted revenue in the previous financial years, there was a great improvement in the FY 2018/19. This will help reduce expenditure pressure and improve on budget absorption in the FY 2019/20. The County Government has established revenue enhancement measures to stop revenue leakages. 4.2 Medium Term Expenditure Framework. 24. The County will continue to implement the Medium Term Expenditure Framework (MTEF) through policies, projects, and programs set out in the County Integrated Development Plan (CIDP)-2018-2022, County Annual Development Plan and County Fiscal Strategy Paper. The MTEF will involve adjusting non-priority expenditures to cater for priority programmes and projects. 25. The Medium Term Expenditure Framework for the FY 2019/20-2021/22 will ensure continuity in resource allocation based on prioritized programmes. The allocation of resources in the medium term will be based on; i. PFM Act, 2012 principles ii. The Big Four Agenda iii. The Medium Term Plan of Vision 2030 iv. Equitable share of revenue allocation from the National Government 17 v. Ongoing projects vi. Emerging priorities vii. Programmes prioritized in the County Integrated Development Plan (2018-2022) viii. Cost effectiveness and sustainability of the programmes ix. Annual Development Plan (ADP) x. Budget ceilings allocated by the Commission of Revenue Allocation xi. Degree to which the programmes address the strategic objectives of the County. xii. Degree to which the programmes are addressing the core function and responsibilities of the ministry. 26. The resource allocation framework will be aligned to development programmes which focus on providing equitable access to quality, sustainable, clean and reliable water supply to all residents, quality universal health care, environmental conservation and management, revenue management and enhancement, Improving infrastructure, Increasing production, value addition and markets for agricultural products, improving education and creating a conducive business environment. Approved Budget FY 2019/20 27. In the FY 2019/20, the County Assembly has approved a budget amounting to Kshs.12.82 billion out of which Kshs. 7.85 billion and Kshs. 4.97 billion are recurrent and development expenditures respectively. Revenues FY 2019/20 28. The FY 2019/20 budget targets a total of Kshs. 12.82 billion of which of 2.21 billion will be from Own Source Revenue collection and Kshs. 10.61 billion from National Government. The performance of the local revenue will be determined by the measures that have been put in place to enhance revenue collection and the Finance Act, 2019 when enacted. The various sources of the revenue from the County Own Source Revenue(OSR) and National Government are as per Table 2 and 3 respectively. 18 CHAPTER FIVE CONCLUSION 29. The County performed fairly well in the period under review compared to FY 2017/18 with notable improvement in Own Source Revenue moving from Kshs. 1billion to Kshs. 1.5billion. With the various revenue measures put in place, the County is optimistic of sustaining the momentum and achieve its Own Source Revenue collection potential. 30. Going forward, the County shall embark on the preparation of the sectoral departmental strategic plans which shall complement the ADP and CIDP for an integrated resource allocation to sector projects that result in ―quick-wins‖ and widespread impacts. Moreover, in entrenching fiscal discipline, the County Government has continued to rely on the fiscal responsibility principles set out in the PFM Act 2012 in making forecasts realistic and reasonable. The County Government has also continued to pursue prudent fiscal policy through reorienting expenditure toward priority programmes within the mandate given. The next County Fiscal Strategy Paper due in February 2020, shall firm up the baseline expenditure ceilings proposed in this CBROP document. 31. There is need to undertake impact evaluation in order to assess if higher rate of project implementation translates into realization of County goals and objectives. 19 ANNEXES Annex 1: County Total Revenue Projections in the Medium Term Printed Actual FY Projected Description Estimates FY 2018/19 2019/20 2020/2021 2021/2022 Equitable Share 8,321,000,000 8,223,915,000 8,141,962,500 8,549,060,625 Level Five Hospital 383,583,815 383,583,815 501,439,943 526,511,940 Compensation for user fees 24,129,039 24,129,039 34,415,913 36,136,708 foregone Leasing of medical - 131,914,894 138,510,639 145,436,171 equipment Rehabilitation of Youth 40,992,724 51,093,298 60,303,099 63,318,254 Polytechnics Road Maintenance 219,084,684 361,687,117 381,817,822 400,908,713 Levy Fund Kenya Climate Smart 41,070,411 150,156,390 198,116,022 208,021,823 Agriculture Project (KCSAP) Conditio nal Kenya Grants Devolution - 83,423,784 103,931,952 109,128,549 Support Project (KDSP) – level 1 Kenya Urban Support Project - 8,800,000 52,500,000 55,125,000 (UIG) Kenya Urban Support Project 1,059,520,500 1,018,320,500 1,069,236,525 1,122,698,351 (UDG) Universal Healthcare in 24,806,250 24,843,750 26,085,938 27,390,234 Devolved System Program Transforming Health Systems 39,211,189 129,858,778 136,351,717 143,169,303 for Universal Care Project Agriculture Sector 7,684,832 17,869,663 26,832,220 28,173,831 Development Support Program Universal Health Care 168,066,134 - 84,033,066 84,033,066 Unspent Funds 1,443,610,184 - 1,517,193,916 1,593,053,612 Own Source Revenue 1,557,211,641 2,212,664,746 1,689,005,745 1,773,456,032 Total County Allocation 13,329,971,403 12,822,260,774 14,161,737,016 14,865,622,213 Source: Machakos County Financial Statement FY 2018/19 20 Annex 2: Own Source Revenue Projections Printed FY 2020/21 FY 2021/2022 Revenue Stream FY 2017/18 FY 2018/2019 Estimates FY Projections Projections 2019/20 Land Rates &Debt Clearance 188,194,036 279,731,890 342,111,755 Cert 295,167,343 309,925,710 Single Business Permit 182,849,984 186,038,661 273,817,246 200,724,852 210,761,095 Quarry 229,429,097 469,112,527 605,253,351 499,016,019 523,966,819 Sand Gravel 47,105,372 47,079,183 64,167,267 54,460,630 57,183,662 Market Fees 6,707,032 15,334,462 21,326,559 16,932,716 17,779,352 Plot/Stall Rent 10,041,599 14,232,315 20,763,763 16,236,174 17,047,982 Bus Park 43,206,310 102,790,677 144,865,515 112,027,036 117,628,388 House Rent 4,864,373 1,469,010 9,453,079 1,735,209 1,821,969 Refuse/Conservancy Fee 10,568,555 14,788,520 15,663,460 16,446,633 17,268,965 Sign Board & Advertisement 35,062,217 35,831,811 46,075,488 Fee 37,879,262 39,773,225 Fire Fighting &Ambulance 15,434,615 32,171,141 43,629,326 Management Unit 35,142,015 36,899,116 Slaughter House 5,511,773 16,074,086 Fees/Livestock 27,553,204 17,726,587 18,612,916 Enforcement Management 5,535,012 19,795,112 35,849,807 Unit 21,885,173 22,979,432 Building Plan Approval 182,857,582 182,816,818 345,187,514 199,690,884 209,675,428 Cess 6,228,835 10,823,081 16,409,866 11,874,566 12,468,294 Social Services &Sports 22,000 1,207,655 2,803,600 Management Unit 1,683,780 1,767,969 Water Sales 157,327 164,000 563,473 244,982 257,231 Miscellaneous 1,235,437 588,433 995,486 685,793 720,082 House Loan Repayment 38,100 335,935 638,390 501,491 526,565 Salary Refunds/Salary 18,125 10,000 20,000 Advance 12,600 13,230 Motor vehicle Registration 109,623 478,629 839,516 613,663 644,346 Health 73,131,315 60,902,769 109,015,961 75,172,013 78,930,614 Liquor 35,807,526 52,214,949 64,491,004 56,530,196 59,356,706 Tourism 89,000 313,655 849,965 456,010 478,810 Weights And Measures 0 1,138,211 1,636,246 1,271,105 1,334,660 Off street Parking Unit 0 8,613,865 10,935,760 10,957,548 11,505,425 Interest/Penalties On Stalls 0 2,258,485 4,394,330 Rent 2,828,338 2,969,755 Agri Farm 0 801,060 1,753,867 1,000,965 1,051,013 Noise Pollution 0 94,700 1,599,950 102,165 107,273 TOTAL 1,084,204,845 1,557,211,641 2,212,664,746 1,689,005,745 1,773,456,032 Source: Machakos County Financial Statement FY 2018/19 21 Annex 3: Expenditure by Economic Classification in the Medium Term i. Recurrent Approved Printed Projected Estimates Expenditure Estimates County Entity Details 2018/19 2019/20 2020/21 2021/22 Compensation Office of the Governor to Employees 224,227,884 197,497,580 207,372,459 217,741,082 Use of goods and services 328,070,506 355,208,619 369,818,414 388,407,644 Other Current 0 0 0 53,420,306 Transfers Total 605,718,696 552,706,199 577,190,873 606,148,726 Public Service, Quality Compensation Management and ICT to Employees 153,443,252 140,809,127 147,849,583 155,242,063 Use of goods and services 279,792,707 282,547,794 296,675,184 311,508,943 Other Current 500,000 85,673,784 89,957,473 94,455,347 Transfers Total 433,735,959 509,030,705 534,482,240 561,206,352 Trade, Industrialization Compensation and Innovation to Employees 55,770,100 52,298,789 54,913,728 57,659,415 Use of goods and services 79,340,500 193,402,335 203,072,452 213,226,074 Other Current 0 10,000,000 10,500,000 11,025,000 Transfers Total 135,110,600 255,701,124 268,486,180 281,910,489 Finance and Economic Compensation Planning to Employees 286,051,241 274,433,603 288,155,283 302,563,047 Use of goods and services 107,890,027 281,728,696 293,741,381 308,428,450 Other Current 0 0 0 0 Transfers Total 393,941,268 556,162,299 581,896,664 610,991,497 County Administration Compensation and Decentralized 281,523,441 181,950,789 191,048,328 200,600,745 to Employees Units Use of goods and services 89,310,000 199,654,360 209,637,078 220,118,932 Other Current 4,000,000 14,000,000 14,700,000 15,435,000 Transfers Total 374,833,441 395,605,149 415,385,407 436,154,677 Agriculture, Food Compensation Security and Co- to Employees 273,782,355 250,110,048 262,615,550 275,746,328 operative Development Use of goods and services 228,850,618 88,105,729 98,788,649 104,793,479 22 Approved Printed Projected Estimates Expenditure Estimates County Entity Details 2018/19 2019/20 2020/21 2021/22 Other Current 0 45,233,306 47,494,971 49,869,720 Transfers Total 502,632,973 383,449,083 408,899,171 430,409,527 Health and Emergency Compensation Services to Employees 2,792,181,364 2,569,438,553 2,693,257,481 2,825,593,855 Use of goods and services 351,186,000 679,126,828 702,926,188 742,687,114 Other Current 402,000,000 120,024,993 126,026,243 133,334,462 Transfers Total 3,545,367,364 3,368,590,374 3,522,209,912 3,701,615,431 Roads, Transport and Compensation Public Works to Employees 137,284,375 109,940,119 115,437,125 121,208,981 Use of goods and services 49,813,408 92,328,358 96,944,776 101,792,015 Other Current 0 0 0 0 Transfers Total 187,097,783 202,268,477 212,381,901 223,000,996 Education, Skills Compensation Training and Social to Employees 79,261,490 56,597,217 59,427,078 62,398,432 Welfare Use of goods and services 20,460,000 31,219,590 32,780,570 34,419,598 Other Current 195,500,000 222,099,632 248,954,614 261,402,344 Transfers Total 295,221,490 309,916,439 341,162,261 358,220,374 Energy, Lands, Housing Compensation and Urban to Employees 62,057,961 54,805,262 57,545,525 60,422,801 Development Use of goods and services 35,142,377 56,501,603 42,463,150 44,586,307 Other Current 0 9,200,000 9,660,000 10,143,000 Transfers Total 97,200,338 120,506,865 109,668,675 115,152,109 Tourism, Youth, Sports Compensation and Culture to Employees 55,994,263 56,662,916 59,496,062 62,470,865 Use of goods and services 19,101,239 19,643,336 20,625,503 21,656,778 Other Current 6,174,160 27,590,873 28,970,417 30,418,937 Transfers Total 81,269,662 103,897,125 109,091,981 114,546,580 Water, Irrigation, Compensation 0 23 Approved Printed Projected Estimates Expenditure Estimates County Entity Details 2018/19 2019/20 2020/21 2021/22 Environment and to Employees 80,811,261 85,659,937 90,799,533 Natural Resources Use of goods 0 and services 41,909,264 44,423,820 47,089,249 Other Current 0 0 0 0 Transfers Total 0 122,720,525 130,083,757 137,888,782 County Public Service Compensation Board to Employees 31,895,584 43,412,225 45,582,836 47,861,978 Use of goods and services 9,502,200 15,597,500 49,506,468 51,981,792 Other Current 0 0 0 0 Transfers Total 41,397,784 59,009,725 95,089,305 99,843,770 Compensation County Assembly to Employees 417,835,858 410,739,875 450,658,863 475,632,256 Use of goods and services 433,940,481 450,405,281 477,105,809 500,586,073 Other Current 85,000,000 50,000,000 30,000,000 30,000,000 Transfers Total 936,776,339 911,145,156 957,764,672 1,006,218,329 Total Compensation to Employees 4,851,309,167 4,479,507,364 4,719,019,838 4,955,941,380 Total Net Use of goods and services 2,032,400,063 2,787,379,293 2,938,509,441 3,091,282,448 Total Net Other Current Transfers 746,594,466 583,822,588 606,263,717 636,083,811 TOTAL NET EXPENDITURE 7,630,303,697 7,850,709,245 8,263,792,997 8,683,307,640 ii. Development Approved Printed County Entity Projected Estimates Details Expenditure Estimates 2018/19 2019/20 2020/21 2021/2022 Acquisition of Office of the Governor Non-Financial 6,825,000 5,422,300 5,693,415 5,978,086 Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 6,825,000 5,422,300 5,693,415 5,978,086 Public Service, Quality Acquisition of 12,700,000 11,765,400 12,353,670 12,971,354 Management and ICT Non-Financial 24 Approved Printed County Entity Projected Estimates Details Expenditure Estimates 2018/19 2019/20 2020/21 2021/2022 Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 12,700,000 11,765,400 12,353,670 12,971,354 Acquisition of Trade, Industrialization Non-Financial 91,575,000 126,553,750 132,881,438 139,525,509 and Innovation Assets Other Capital Grants and 0 6,750,000 7,087,500 7,441,875 Transfers Total Development 91,575,000 133,303,750 139,968,938 146,967,384 Acquisition of Finance and Economic Non-Financial 11,801,000 89,738,163 95,360,536 100,128,563 Planning Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 11,801,000 89,738,163 95,360,536 100,128,563 County Administration Acquisition of and Decentralized Non-Financial 31,000,000 88,100,000 92,505,000 97,130,250 Units Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 31,000,000 88,100,000 92,505,000 97,130,250 Agriculture, Food Acquisition of Security and Co- Non-Financial 665,611,142 167,990,080 177,849,624 188,348,149 operative Development Assets Other Capital Grants and 0 186,535,847 195,862,639 205,655,771 Transfers Total Development 665,611,142 354,525,927 373,712,263 394,003,921 Acquisition of Health and Emergency Non-Financial 548,236,284 143,783,520 158,161,872 173,978,059 Services Assets Other Capital Grants and 200,208,125 442,390,389 486,629,428 535,292,371 Transfers Total Development 748,444,409 586,173,909 644,791,300 709,270,430 Acquisition of Roads, Transport and Non-Financial 1,133,897,233 1,000,409,940 1,050,430,437 1,102,951,959 Public Works Assets Other Capital Grants and 302,400,000 363,687,117 381,871,473 400,965,046 Transfers Total Development 1,436,297,233 1,364,097,057 1,432,301,910 1,503,917,005 25 Approved Printed County Entity Projected Estimates Details Expenditure Estimates 2018/19 2019/20 2020/21 2021/2022 Education, Skills Acquisition of Training and Social Non-Financial 235,000,000 107,450,000 112,822,500 118,463,625 Welfare Assets Other Capital Grants and 54295000 51,093,298 53,647,963 56,330,361 Transfers Total Development 289,295,000 158,543,298 166,470,463 174,793,986 Energy, Lands, Housing Acquisition of and Urban Non-Financial 1,054,320,500 1,126,861,100 1,183,204,155 1,242,364,363 Development Assets Other Capital Grants and - 25,800,600 30,453,150 31,975,808 Transfers Total Development 1,054,320,500 1,152,661,700 1,213,657,305 1,274,340,170 Acquisition of Tourism, Youth, Sports Non-Financial 6,872,103 116,500,000 116,550,000 122,377,500 and Culture Assets Other Capital Grants and 8,046,681 13,500,000 14,175,000 14,883,750 Transfers Total Development 14,918,784 130,000,000 130,725,000 137,261,250 Water, Irrigation, Acquisition of Environment and Non-Financial 0 500,220,026 530,233,228 562,047,221 Natural Resources Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 0 500,220,026 530,233,228 562,047,221 Acquisition of County Public Service Non-Financial 2,014,855 10,000,000 10,500,000 11,025,000 Board Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 2,014,855 10,000,000 10,500,000 11,025,000 Acquisition of County Assembly Non-Financial 236,000,000 387,000,000 100,000,000 50,000,000 Assets Other Capital Grants and 0 0 0 0 Transfers Total Development 236,000,000 387,000,000 100,000,000 50,000,000 TOTAL 4,600,802,923 4,971,551,530 4,948,273,027 5,179,834,620 26 Annex 4: Programme Based Expenditure in the Medium Term i. Recurrent Expenditure Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 Office of the Governor 552,706,199 577,190,873 606,148,726 P01 Co-ordination and Supervisory Services 351,196,578 368,756,407 387,194,227 P02 Transport Section 23,135,676 24,292,460 25,507,083 P03 Human Resource and Administration 86,840,760 91,182,798 95,741,938 Section P04 I.C.T Section 11,387,204 11,956,564 12,554,392 P05 Hospitality Services Section 14,580,000 15,309,000 16,074,450 P06 Cabinet Office 6,493,176 6,817,834 7,158,726 P07 Office of the Deputy Governor 36,000,000 37,800,000 39,690,000 P08 Projects Delivery, Monitoring and 5,652,500 3,613,800 3,892,800 Evaluation P09 Office of the County Secretary 8,466,246 8,889,558 9,334,036 P07 Office of the County Advisor 8,954,060 8,572,452 9,001,075 Public Service, Quality Management and ICT 509,030,705 534,482,240 561,206,352 P01 General Administration and Support 359,484,762 377,459,000 396,331,950 Services P02 Quality Management 3,300,000 3,465,000 3,638,250 P03 Training, Research and Development 93,436,384 98,108,203 103,013,613 P04 Information, Communication Technology 39,492,840 41,467,482 43,540,856 P05 ICT Infrastructure 11,071,719 11,625,305 12,206,570 P06 Closed Circuit Television (CCTV) 2,245,000 2,357,250 2,475,113 Trade, Industrialization and Innovation 255,701,124 268,486,180 281,910,489 P01 Headquarters Administrative Services 76,141,600 79,948,680 83,946,114 P02 Trade Development 14,350,000 15,067,500 15,820,875 P03 Business and Enterprise Development 8,600,000 9,030,000 9,481,500 P04 Industrialization and Innovation 1,300,000 1,365,000 1,433,250 P05 Investment Promotion and Support 5,009,324 5,259,790 5,522,780 P06 Legal Services 150,300,200 157,815,210 165,705,971 Finance and Economic Planning 556,162,299 581,896,664 610,991,497 P01 Financial Services (Revenue 128,690,000 135,124,500 141,880,725 Management) P02 Budget formulation, Co-ordination and 115,652,240 119,361,102 125,329,157 implementation P03 Supply Chain Management 4,271,964 4,485,562 4,709,840 P04 Accounts Services 9,735,603 10,222,383 10,733,502 P05 Audit Services 4,101,320 4,306,386 4,521,705 27 Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 P06 Human Resource Management and 282,149,172 296,256,631 311,069,462 Support Services P07 Economic Planning and External Resource Mobilization Section (County 11,562,000 12,140,100 12,747,105 Planning and Statistical Information) County Administration and Decentralized 395,605,149 415,385,407 436,154,677 Units P01 General Administration and Support 229,890,713 241,385,249 253,454,511 Services P02 Civic Engagement 99,436,310 104,408,126 109,628,532 P03 Administration and Co-ordination 24,492,254 25,716,867 27,002,710 Services P04 Solid Waste Management 10,800,000 11,340,000 11,907,000 P05 Sanitation Management 2,000,000 2,100,000 2,205,000 P06 General administration and Support 16,290,000 17,104,500 17,959,725 Services (Forensics and Inspectorate Services) P07 Inspectorate Services and Management 12,695,872 13,330,666 13,997,199 Agriculture, Food Security and Co-operative 383,449,083 408,899,171 430,409,527 Development P01 General Administration and Support 103,363,325 108,531,491 113,958,066 Services P02 Crop Development and Management 114,174,991 119,818,741 125,809,678 P03 Livestock Resources Management and 52,626,412 55,257,732 58,020,619 Development P04 Fisheries Development 13,660,645 14,343,677 15,060,861 P05 Veterinary Services 58,131,122 61,037,678 64,089,562 P06 Agriculture Training Center 9,628,231 10,109,643 10,615,125 P07 Co-operative Development and 25,164,357 26,800,209 28,555,616 Marketing P08 Capacity Building to Co-operative 1,150,000 1,265,000 1,391,500 Societies P09 Promotion of Co-operative Marketing 1,150,000 1,265,000 1,391,500 and Value Chain P10 Co-operative Financial Services 1,550,000 4,500,000 4,950,000 P11 Promotion and Growth of Co-operative 1,400,000 1,540,000 1,694,000 Societies P12 Co-operative Audit Support Services 1,450,000 4,430,000 4,873,000 Health and Emergency Services 3,368,590,374 3,522,209,912 3,701,615,431 P01 General Administration and Support 2,672,930,628 2,791,117,908 2,931,823,029 Services P02 Machakos Level 5 548,971,455 573,792,238 603,670,257 P03 Kangundo Level 4 39,211,500 41,172,075 43,230,679 28 Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 P04 Matuu Level 4 34,426,000 36,147,300 37,954,665 P05 Kathiani Level 4 22,783,900 23,923,095 25,119,250 P06 Mwala Level 4 15,142,000 15,899,100 16,694,055 P07 Emergency Services 14,615,000 18,597,810 20,457,591 P08 Public Health (Public Health and 20,509,891 21,560,386 22,665,905 Community Outreach) Roads, Transport and Public Works 202,268,477 212,381,901 223,000,996 P01 Headquarters Administrative Services 120,336,447 126,353,269 132,670,933 P02 Road Development and Management 5,762,500 6,050,625 6,353,156 P03 County Government Buildings and 26,464,617 27,787,848 29,177,240 Services P04 County Fleet Management 49,704,913 52,190,159 54,799,667 Education, Skills Training and Social Welfare 309,916,439 341,162,261 358,220,374 P01 Headquarters Administrative Services 177,645,916 186,528,212 195,854,622 P02 Basic Education 105,144,456 110,401,679 115,921,763 P03 Youth Development Services 10,719,960 11,255,958 11,818,756 P04 Gender and Social Services 16,406,107 32,976,412 34,625,233 Energy, Lands, Housing and Urban 120,506,865 109,668,675 115,152,109 Development P01 Headquarters Administrative Services 62,012,957 57,910,072 60,805,575 P02 Housing and Urban Development 31,185,368 23,084,636 24,238,868 P03 Energy and Natural Resources 27,308,540 28,673,967 30,107,665 Tourism, Youth, Sports and Culture 103,897,125 109,091,981 114,546,580 P01 General Administration and Support 65,715,063 69,000,816 72,450,857 Services P02 Heritage and Culture 5,149,882 5,407,376 5,677,745 P03 Liquor Management 1,330,790 1,397,330 1,467,196 P04 Tourism Development and Marketing 2,870,405 3,013,925 3,164,622 P05 Machawood 1,790,873 1,880,417 1,974,437 P06 County Image Directorate 800,000 840,000 882,000 P07 Youth and Sports (Management and 26,240,112 27,552,118 28,929,723 Development of Sports and Sports Facilities) Water, Irrigation, Environment and Natural 122,720,525 130,083,757 137,888,782 Resources P01 Water and Irrigation (Water Supply and 38,867,739 41,199,803 43,671,792 Sewerage) P02 Irrigation Schemes Development and 31,014,626 32,875,504 34,848,034 Promotion P03 Development and Promotion of Irrigation 5,562,474 5,896,222 6,249,996 Schemes 29 Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 P04 General Administration and Support 40,529,708 42,961,490 45,539,180 Services P05 Environmental and Natural Resources 6,745,978 7,150,737 7,579,781 County Public Service Board 59,009,725 95,089,305 99,843,770 P01 Human Resource and Administration 59,009,725 95,089,305 99,843,770 County Assembly 911,145,156 957,764,672 1,006,218,329 P01 HR, Administration and Coordination 251,470,955 274,858,051 289,651,598 Services. P02 Financial Management Services 36,105,281 39,715,809 41,581,073 P03 Legal, Library and Research Services 14,500,000 15,950,000 16,675,000 P04 County Assembly Service Board Services 40,000,000 44,000,000 46,210,000 P05 Legislative Services 275,828,920 292,111,812 306,253,258 P06 Procedure and Committee Services 162,500,000 173,470,000 182,015,000 P07 Budget Office 4,000,000 4,400,000 4,600,000 P08 Audit Committee Services 5,000,000 5,500,000 5,750,000 P09 Ward Office Services 71,740,000 77,759,000 83,482,400 P10 Other Transfers 50,000,000 30,000,000 30,000,000 RECURRENT TOTAL 7,850,709,245 8,263,792,997 8,683,307,640 ii. Development Expenditure Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 Office of the Governor. 5,422,300 5,693,415 5,978,086 P01 Co-ordination and Supervisory 5,693,415 Services 5,422,300 5,978,086 Public Service, Quality Management and 11,765,400 12,353,670 12,971,354 ICT P05 ICT Infrastructure 11,765,400 12,353,670 12,971,354 Trade, Industrialization and Innovation 133,303,750 139,968,938 146,967,384 P01 General Administration and Support 1,785,000 1,874,250 Services 1,700,000 P02 Trade Development 19,500,000 20,475,000 21,498,750 P03 Industrial Development 104,750,000 109,987,500 115,486,875 P04 Investment Promotion 6,750,000 7,087,500 7,441,875 P05 Legal Office 603,750 633,938 665,634 Finance and Economic Planning 89,738,163 94,225,071 98,936,325 P01 Resource Mobilization 58,238,163 61,150,071 64,207,575 30 Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 P02 Accounts Services 1,000,000 1,050,000 1,102,500 P04 Economic Planning 1,500,000 1,575,000 1,653,750 P05 County Statistics 29,000,000 30,450,000 31,972,500 County Administration and Decentralized 88,100,000 92,505,000 97,130,250 Units P01 General Administration and Support 56,805,000 59,645,250 Services 54,100,000 P04 Solid Waste Management 2,000,000 2,100,000 2,205,000 P05 Investment in Non-Financial Assets 24,000,000 25,200,000 26,460,000 P06 Investment in Non-Financial Assets 8,000,000 8,400,000 8,820,000 Agriculture, Food Security and Co- 354,525,927 394,003,921 operative Development 373,712,263 P01 General Administration and Support 166,462,639 174,785,771 Services 158,535,847 P02 Crop Development and Management 65,000,000 68,250,000 71,662,500 P03 Livestock Resources Management and 42,525,000 44,651,250 Development 40,500,000 P04 Fisheries Development 1,092,000 1,146,600 1,203,930 P05 Veterinary Services 24,197,280 25,407,144 26,677,501 P06 Agriculture Training Center 6,000,000 6,300,000 6,615,000 P07Co-operative Development 59,200,800 63,620,880 68,407,968 Health and Emergency Services 586,173,909 644,791,300 709,270,430 P01 General Administration 157,391,028 173,130,131 190,443,144 P02 Machakos Level 5 306,776,261 337,453,887 371,199,276 P03 Kangundo Level 4 5,255,900 5,781,490 6,359,639 P04 Matuu Level 4 6,851,600 7,536,760 8,290,436 P05 Kathiani Level 4 7,088,000 7,796,800 8,576,480 P06 Mwala Level 4 5,266,122 5,792,734 6,372,008 P07 Emergency Services 9,772,500 10,749,750 11,824,725 P08 Public Health and Community 96,549,748 106,204,723 Outreach 87,772,498 Roads, Transport and Public Works 1,364,097,057 1,432,301,910 1,503,917,005 P01 General Administration and Support 117,600,000 123,480,000 Services 112,000,000 P02 Road Development and Management 916,737,117 962,573,973 1,010,702,671 P03 County Government Building 268,127,937 281,534,334 Services 255,359,940 P04 County Fleet Management 80,000,000 84,000,000 88,200,000 Education, Skills Training and Social 158,543,298 174,793,986 Welfare 166,470,463 P01 General Administration and Support 100,000,000 105,000,000 110,250,000 31 Printed Estimates Projections County Entity 2019/20 2020/21 2021/22 Services P02 Basic Education 1,450,000 1,522,500 1,598,625 P03 Youth Development Services 57,093,298 59,947,963 62,945,361 Energy, Lands, Housing and Urban 1,152,661,700 1,274,340,170 Development 1,213,657,305 P01 Housing and Urban Development 1,018,320,500 1,069,236,525 1,122,698,351 P02 Physical Planning and Development 73,800,600 80,853,150 84,895,808 P03 County Electrification 60,540,600 63,567,630 66,746,012 Tourism, Youth, Sports and Culture 130,000,000 136,500,000 143,325,000 P03 Tourism development and Marketing 5,500,000 5,775,000 6,063,750 P04 Management of recreational Facilities 6,000,000 6,300,000 6,615,000 P05 Talent Management 2,000,000 2,100,000 2,205,000 P06 County Beautification 2,000,000 2,100,000 2,205,000 P07 Management and Development of 120,225,000 126,236,250 Sports and Sports Facilities 114,500,000 Water, Irrigation, Environment and 500,220,026 530,233,228 562,047,221 Natural Resources P01 Water Supply and sewerage 283,090,530 300,075,962 318,080,520 P02 Water Resources Management and 17,072,911 18,097,286 Storage 16,106,520 P03 Irrigation Schemes Development and 166,420,000 176,405,200 Promotion 157,000,000 P04 General Administration and Support 46,664,355 49,464,216 Services 44,022,976 County Public Service Board 10,000,000 10,500,000 11,025,000 P01 Headquarters Human Resource and 10,500,000 11,025,000 Administration 10,000,000 County Assembly 387,000,000 105,250,000 55,512,500 P01 HR, Administration and Coordination 5,250,000 5,512,500 Services 5,000,000 P02 Legislative Services 382,000,000 100,000,000 50,000,000 DEVELOPMENT TOTAL 4 , 9 7 1 , 5 5 1 , 5 30 4,958,162,562 5,190,218,632 COUNTY TOTAL 12,822,260,776 13,221,955,560 13,873,526,271 32 Annex 5: County Sector Ceilings Printed Estimates Projections Sector County Entity Vote FY 2019/2020 FY 2020/2021 FY 2021/2022 Rec 62,012,957 65,113,605 68,369,285 Lands Dev’t 73,800,600 77,490,630 81,365,162 Total 135,813,557 142,604,235 149,734,447 Rec 31,185,368 32,744,636 34,381,868 Urban Dev’t 1,018,320,500 1,069,236,525 1,122,698,351 Development Total 1,049,505,868 1,101,981,161 1,157,080,219 Rec 110,757,534 116,295,410 122,110,181 Livestock & Agriculture, Dev’t 64,697,280 67,932,144 71,328,751 Veterinary Rural and Total 175,454,814 184,227,554 193,438,932 Urban Rec 227,166,547 238,524,875 250,451,118 Development Agriculture Dev’t 229,535,847 241,012,639 253,063,271 Total 456,702,394 479,537,514 503,514,390 Rec 13,660,645 14,343,677 15,060,861 Fisheries Dev’t 1,092,000 1,146,600 1,203,930 Total 14,752,645 15,490,277 16,264,791 Rec 36,577,100 38,405,955 40,326,253 Irrigation Dev’t 157,000,000 164,850,000 173,092,500 Total 193,577,100 203,255,955 213,418,753 Rec 170,041,360 178,543,428 187,470,599 Transport Dev’t 192,000,000 201,600,000 211,680,000 Total 362,041,360 380,143,428 399,150,599 Rec 26,464,617 27,787,848 29,177,240 Public Works Dev’t 255,359,940 268,127,937 281,534,334 Total 281,824,557 295,915,785 310,711,574 Energy, Rec 5,762,500 6,050,625 6,353,156 Infrastructure Roads Dev’t 916,737,117 962,573,973 1,010,702,671 and ICT Total 922,499,617 968,624,598 1,017,055,828 Rec 27,308,540 28,673,967 30,107,665 Energy Dev’t 60,540,600 63,567,630 66,746,012 Total 87,849,140 92,241,597 96,853,677 Rec 52,809,559 55,450,037 58,222,539 ICT Dev’t 11,765,400 12,353,670 12,971,354 Total 64,574,959 67,803,707 71,193,892 Rec 31,864,357 33,457,575 35,130,454 Cooperative Dev’t 59,200,800 62,160,840 65,268,882 Development Total 91,065,157 95,618,415 100,399,336 Rec 240,791,800 252,831,390 265,472,960 General Trade Dev’t 21,803,750 22,893,938 24,038,634 Economic and Total 262,595,550 275,725,328 289,511,594 Commercial Affairs Rec 14,909,324 15,654,790 16,437,530 Industrializati Dev’t 111,500,000 117,075,000 122,928,750 on Total 126,409,324 132,729,790 139,366,280 Rec 72,507,131 76,132,488 79,939,112 Tourism Dev’t 15,500,000 16,275,000 17,088,750 33 Printed Estimates Projections Sector County Entity Vote FY 2019/2020 FY 2020/2021 FY 2021/2022 Total 88,007,131 92,407,488 97,027,862 Rec 3,368,590,374 3,537,019,893 3,713,870,887 Health Health Dev’t 586,173,909 615,482,605 646,256,735 Total 3,954,764,283 4,152,502,497 4,360,127,622 Rec 282,790,372 296,929,891 311,776,385 Education Education Dev’t 101,450,000 106,522,500 111,848,625 Total 384,240,372 403,452,391 423,625,010 Rec 552,706,199 580,341,509 609,358,584 Office of the Dev’t 5,422,300 5,693,415 5,978,086 Governor Total 558,128,499 586,034,924 615,336,670 Rec 544,600,299 571,830,314 600,421,830 County Dev’t 59,238,163 62,200,071 65,310,075 Treasury Total 603,838,462 634,030,385 665,731,904 Rec 11,562,000 12,140,100 12,747,105 Economic Dev’t 30,500,000 32,025,000 33,626,250 Planning Total 42,062,000 44,165,100 46,373,355 Rec 359,484,762 377,459,000 396,331,950 Public Service Dev’t 0 0 0 Total 359,484,762 377,459,000 396,331,950 Rec 96,736,384 101,573,203 106,651,863 Quality Dev’t 0 0 0 Management Public Total 96,736,384 101,573,203 106,651,863 Administration Rec 10,719,960 11,255,958 11,818,756 Youth Dev’t 57,093,298 59,947,963 62,945,361 Total 67,813,258 71,203,921 74,764,117 Rec 59,009,725 61,960,211 65,058,222 County Public Dev’t 10,000,000 10,500,000 11,025,000 Service Board Total 69,009,725 72,460,211 76,083,222 Rec 28,985,872 30,435,166 31,956,924 Decentralized Dev’t 32,000,000 33,600,000 35,280,000 Units Total 60,985,872 64,035,166 67,236,924 Rec 366,619,277 384,950,241 404,197,753 County Dev’t 56,100,000 58,905,000 61,850,250 Administration Total 422,719,277 443,855,241 466,048,003 Rec 911,145,156 956,702,414 1,004,537,534 County Dev’t 387,000,000 406,350,000 426,667,500 Assembly Total 1,298,145,156 1,363,052,414 1,431,205,034 Rec 26,240,112 27,552,118 28,929,723 Sports Dev’t 114,500,000 120,225,000 126,236,250 Social Total 140,740,112 147,777,118 155,165,973 Protection, Rec 16,406,107 17,226,412 18,087,733 Culture and Recreation Social Welfare Dev’t 0 0 0 Total 16,406,107 17,226,412 18,087,733 Culture Rec 5,149,882 5,407,376 5,677,745 34 Printed Estimates Projections Sector County Entity Vote FY 2019/2020 FY 2020/2021 FY 2021/2022 Dev’t 0 0 0 Total 5,149,882 5,407,376 5,677,745 Rec 79,397,447 83,367,319 87,535,685 Environment Water Dev’t 343,220,026 360,381,027 378,400,079 Protection, Total 422,617,473 443,748,347 465,935,764 Water and Environment Rec 6,745,978 7,083,277 7,437,441 Natural Resources and Natural Dev’t 0 0 0 Resources Total 6,745,978 7,083,277 7,437,441 TOTAL 7,850,709,245 8,243,244,707 8,655,406,943 RECURRENT TOTAL 4,971,551,530 5,220,129,107 5,481,135,562 DEVELOPMENT Total County Budget. 12,822,260,775 13,463,373,814 14,136,542,505 35 Annex 6: Key Activities Implemented in FY 2018/19 Department Key Activities Health and  Construction of 37 No. Community Hospitals Emergency  Completion of 20 No. Existing Dispensaries Services  Renovation of 31 No. operational Health Centers. Purchase of 9 no. Advanced life support (Ambulances) Agriculture, Food  Artificial Insemination of 1109 No. of local cows to upgrade Security and  Supply of breeding stock of 12129 No. chicken benefitting 6313 Cooperative farmers Development  1030 acres ploughing free tractor service  Free certified seeds to 20000 No. farmers  Free livestock vaccination for 46297 No. livestock  Meat inspection (93147 carcasses inspected) in 89 slaughter houses  Quarter acre Pond excavations for 984 households  Capacity building, sensitization, cooperative education, and registration of the cooperative movement,17 No. trainings Education, Skills  Routine assessment of ECDE 240 centers for quality assurance and standards. Training and  Supported 7000 No. needy high school students with Basic Education bursaries Social Welfare  Upgraded 79 selected VTCs for Youth Polytechnic infrastructure program  Child protection and support for orphans and vulnerable children in 6 homes and 14 primary schools benefited  Provision of assistive devices to 310 persons with Disabilities  Capacity building for 15 groups of persons with disabilities, each group has 30 members.  International Days for Persons with Disability  International Days for Persons with Disability celebrations, 350 participants were invited in the year  Capacity building for 16 women groups, 35 participants were trained from each group  Establishment of GBV Technical Working groups in the Sub Counties  Establishment of GBV Technical working groups in the sub Counties, 350 women were invited 36 Water, irrigation,  Supply of 1000PVC tanks of capacity 10,000liters each, to primary Environment and schools and other public institutions Natural Resources  Construction of 23 water pans  Construction of 1 No. mega dam( Nthungululu Dam in Yatta sub County)  Rehabilitation and equipping of 10 boreholes as follows: i. Masii ward-Muusini borehole (BH) rehabilitation & reticulation ii. Mbiuni waed-Masawa community BH -rehabilitation iii. Wamunyu ward-Nunga & Kilembwa BH iv. Ndalani-Kisiiki BH Reticulation v. Ekalakala ward- Ekalakala Market BH Rehabilitation vi. Ikombe ward-Kinaka BH equipping & Powering vii. Kinanie ward-Itimboni BH Tank Elevation & Reticulation viii. Mutituni Ngelani Ward-Muvae BH Equipping & Reticulation ix. Muvuti/Kiima Kimwe Ward- Kyeni BH Equipping & Powering x. Kithimani Ward-Kauthuilini Primary School BH Rehabilitation  Reticulation of 106 kms  Elevated 12 tank structures  Tree seedlings 43,000 No. distribution and planting Public Service ,  Installation of 50 No. CCTV cameras Quality  Government tender and policy documents, 100 No. uploaded Management and  Job adverts, 50 jobs placed through the website ICT  Departmental staff audits currently on-going in various departments  Implementation of performance contracting in the County as a tool to manage staff performance in line with the CIDP goals and targets. Sensitization workshop on performance contracting completed up to the directors level.  Development of quality performance standards in all departments and a quality management manual. Currently process of collecting information on performance standards on-going in various departments. Energy, Lands,  Recommended for approval of Regional Plan and Spatial Plans for 16 towns Housing and Urban in Machakos. The 16 targeted towns are Wamunyu, Mbiuni, Mwala, Development Katangi, Yathui, Matuu, Ekalakala, Masinga, Kivaa, Kithyoko, Kathiani, 37 Mitaboni, Kangundo, Tala, Kola and Masii.  Procured materials and installed 114 floodlights in 112 markets  Street lights installed for 31.9km Tourism, Youth ,  Organized a Mr. and Miss Tourism event to promote talent among Sports and Culture beauty pageants in Machakos County. Over 1000 artists have been given a platform to showcase their talents  Organized a short film competition dubbed Machakos Fest. Over 500 film makers were able to exploit and showcase film development talent.  Organized a top choir competition to promote film development. 300 choirs members showcased their talents  organized a cycling competition to promote sports tourism over 1000 cyclists participated in the  Organized a cycling completion to promote sports tourism. Over 1000 cyclists participated in competition  A Draft of sports policy document done for enhancing sporting environment.  Sports equipment program allocated 20 teams with sporting equipment  Establishment of 5 sports academies  Improved infrastructure in 4 stadia’s and 4 social halls County  Purchased 460 uniform units Administration and  Installed 10 traffic marshals for control of vehicle movement; training 5 Decentralized units motorbike riders for traffic control in Mavoko and Machakos; deployed 1 Deputy Commander as coordinator for traffic control; crackdown on hawkers at Mlolongo and Kyumbi junction; initiated coordination with KeNHA to involve their police patrol unit in decongesting traffic between Gateway Mall and Kyumbi junction  Purchased 320 skip bins and rotating bins in 11 wards; Mlolongo, Athiriver, Kinanie, Muthwani, Mua, Machakos town, Muvuti, Mumbuni, Mutituni, Tala, Kangundo Central. Roads, Transport  Kathithyamaa-Maiuni Road: Construction of 1 no. drift, installation of and Public Works gabions, spot improvement and installation of culvert.  Kivandini-Kwa Ndoo-Kanzalu Road: Construction of 4 no. drift, gabions, culvert installation, scour and spot improvement. 38  Kibauni-Kaseve-Katangi Road: 3 no. drifts, gabions, installation of culverts and scour checks.  Kituluni-Kitambaasye Road: Spot improvement and installation of culverts.  Kwa Malibe-Kwa Endelea-Misuuni-Ngonda Road: 1 no. box culvert, gabions, installation of culverts and scour checks.  Nguluni-Isooni-Mukukuni Road: Spot improvement  Mukaawani-Makyau-Kyanda Road: Construction of culverts, gabions and scour checks.  Innercore-Mwendandu-Legend: Mulika mwizi road.  Mutituni-Ngomeni-Kasaini-Kaloleni Road: Construction of 2 no. box culverts and installation of culverts, rock fill and scour checks.  Kalama-Mutuyu Rd: Installation of culverts, scour checks, spot improvement and box culvert.  Kikumbo-Kitulani Market-Kitulani Catholic Church: Construction of 1 no. Drift, culvert installation, scour checks and spot improvement.  Mitatini-Prayer Centre-Ndovoini: Culvert installation, scour checks and spot improvement  Syokaowe-Mutula Rd: Construction of 3 no. box culvert,1 no. drift, stone pitching and scour check  Kyua-Kavingo Rd: Construction of 2 no. box culvert.  Nduini-Kamale: Construction of non-vented drift 1 and gabions.  Nduini-Kamale: Construction of non-vented drift 1 and gabions.  Kisikii-Ilumanthi-Uvaini: Construction of 4 no. box culvert, installation of culverts and gabions  Kinyaata-Ikombe: Spot improvement.  Matuu level 4 –equity lane: Installation of culvert and construction of 39 lined drain.  Kisikii-Ilumanthi-Uvaini: Construction of 4 no. box culvert, installation of culverts and gabions  Kilaatu-wa Kaela-Miandoni: Construction of 3no. Drifts, scour checks and rock blasting.  Kwa Mutilu-Kalyambeu Road. Culverts installation, 4no. Drifts construction and gabion boxes installation.  Construction of 110 No. modern toilets in all wards 40 Annex 7: County Sector Composition Sector County Entity Agriculture and Cooperative Development  Agriculture, Food Security and Co- operatives Development Energy, Infrastructure and ICT  Roads, Transport and Public Works  Housing and Urban Development  Energy  ICT Commercial, Tourism and Labour Affairs  Trade, Industrialization and Innovation  Tourism Health  Medical Services  Public Health and Community Outreach  Emergency Services Education  Education, Skills Training and Social Welfare  Youth, Sports and Culture Public Administration  Office of the Governor  Finance and Economic Planning  Public Service and Quality Management  County Public Service Board  County Administration and Decentralized Units  County Assembly  County Law Office Water and Irrigation  Water and Irrigation  Sanitation Land, Environment and Natural Resources  Lands and Physical Planning  Environment and Natural Resources 41 Annex 8: Budget Calendar 2020/21 No. ACTIVITY RESPONSIBILITY DEADLINE 1. th Issue guidelines for preparation of 2020/21 County Executive 30 August 2019 and Medium Term County Budget Estimates Committee Member 2. st Submission of Annual Development Plan CECM responsible for 1 September, (ADP) to the County Assembly for approval Planning 2019 th 3. Publish and publicise the Annual CECM responsible for 8 September, Development Plan Planning 2019 th 4. Draft County Budget Review and Outlook County Treasury 15 September Paper (CBROP) 2019 th 5. Submission of CBROP to the County County Executive 30 September Executive Committee for deliberation and Committee Member for 2019 approval Finance 6. th Deliberation and approval of CBROP by the County Executive 14 October County Executive Committee Committee 2019 th 7. Submission of Quarterly Reports (Financial Accounting Officers 15 October, and Non-financial) to County Treasury 2019 st8. Submission of approved CBROP to County County Executive 21 October Assembly Committee Member for 2019 Finance ( CECMF) th9. Submission of Financial Statements to Accounting Officers 30 September, County Treasury 2019 st 10. Submission of Annual Financial Statements County Treasury 31 October, to Auditor General, National Treasury, CoB 2019 and CRA 11. st Submission of Quarterly Reports (Financial County Treasury 31 October, and Non-financial) to County Assembly 2019 th 12. Submission of Quarterly Reports (Financial Accounting Officers 15 January, and Non-financial) to County Treasury 2020 th 13. Draft County Fiscal Strategy Paper (CFSP) County Treasury 24 January, circulated to stakeholders/Public Participation 2020 st 14. Submission of CFSP comments to County Accounting 31 January, 2020 Treasury Officers/Stakeholders st 15. Submission of Quarterly Reports (Financial County Treasury 31 January, 2020 and Non-financial) to County Assembly 16. st Submission of Sector Reports to County Sector Working Groups 31 January, 2020 Treasury Reg. 30 (1a) th 17. Adoption of inputs from Stakeholders into County Treasury 7 February, CFSP 2020 18. th Submission of the CFSP to County Executive County Executive 14 February, Committee Committee Member for 2020 Finance ( CECMF) th 19. Submission of the CFSP to County Assembly County Executive 28 February, Committee Member for 2020 Finance ( CECMF) 42 No. ACTIVITY RESPONSIBILITY DEADLINE th 20. Publish and publicise the County Fiscal County Treasury 7 March, 2020 Strategy Paper th 21. Adoption of CFSP County Assembly 14 March, 2020 th 22. Submission of budget Estimates proposal for All Accounting officers 10 March, 2020. 2020/21 to County Treasury th 23. Consolidation of Budget Estimates for FY County Treasury 30 March, 2020. 2020/21 th 24. Submission of Quarterly Reports (Financial Accounting Officers 15 April, 2020 and Non-financial) to County Treasury 25. th Submission of County Budget Estimates and County Executive 20 April, 2019 other supporting documents to County Committee Member for Executive Committee. Finance ( CECMF) th 26. Submission of County Budget Estimates and County Executive 30 April, 2020 other supporting documents to County Committee Member for Assembly Finance ( CECMF) th 27. Submission of Quarterly Reports (Financial County Treasury 30 April, 2020 and Non-financial) to County Assembly th 28. Approval of the budget estimates County Assembly 30 June 2020 st 29. Publish and Publicise Budget Estimates County Treasury 21 July, 2020 th30. Approval of Finance Bill County Assembly 30 September, 2020 43