COUNTY GOVERNMENT OF BUNGOMA COUNTY FISCAL STRATEGY PAPER, 2016 APPROVED October 2016 KENYA i Towards a Globally Competitive and Prosperous Kenya TABLE OF CONTENTS FOREWORD .................................................................................................................................I ACKNOWLEDGEMENT ................................................................................................................II ACRONYMS .............................................................................................................................. III EXECUTIVE SUMMARY ............................................................................................................. IV I. INTRODUCTION ...................................................................................................................... 1 II. RECENT ECONOMIC DEVELOPMENTS ................................................................................... 2 III INTERNATIONAL ECONOMIC GROWTH AND FORECAST .................................................... 10 IV. MEDIUM TERM EXPENDITURE FRAMEWORK ................................................................... 16 LIST OF TABLES Table 1: Macroeconomic Development .......................................................................................... 5 Table 2: Fiscal Performance ......................................................................................................... 14 Table 3: Resource Envelope ......................................................................................................... 16 Table 4: Conditional allocations summary ................................................................................... 17 i FOREWORD This 2017 County Fiscal Strategy Paper (CFSP) has been prepared against the backdrop of mixed global economic prospects, underpinned by gradual strengthening of the advanced economies and slowing down of the Asian giant - China. Overall the positive trajectory for Kenyan economy and the global outlook is expected to continue. Kenya’s GDP recorded 5.3 percent growth in 2014 against the 5.7 percent recorded in 2013.In 2015, GDP grew by 5.6 percent. The national GDP is projected to grow at 5.9 per cent in 2016 and to accelerate to 6.5 by 2017. The National treasury has managed to maintain stable fiscal and monetary environment. It is against this momentum that CFSP focuses to accelerate economic growth by riding on the macroeconomic stability; focusing on fiscal discipline and structural reforms; and deepening investment in critical economic & social infrastructure aimed at promoting productivity and facilitating expansion of the private sector. Further negotiations and discussions through the intergovernmental forum is expected to bring more resources to the counties; the additional resources will be committed to critical areas of development The broad strategic policies planned for the fiscal year 2017/18 are expected to build on the 2016/17 achievements and in the medium term will attain resilience necessary for employment creation and poverty reduction. In the preceding financial years 2014/15 and 2015/16, the county made tremendous achievements in key notable areas. In the agriculture sector, the county improved crop and livestock production and value addition (Musese Coffee mill, Animal Feeds Plants, Tomato and peanut processing plant, etc), for the Health sector - training of health professionals, infrastructure improvement, improvement of working conditions of medical practitioners, in the Education sector - employment of ECD teachers, disbursement of bursaries, sports infrastructure improvement, youth micro finance credit scheme and for the Trade, Energy Lands and Industrialization the county installed solar street lights to enhance security and facilitate extension of working hours. These and other programmes and projects have gone a long way in improving the economic and social wellbeing of Bungoma County citizens. The County Fiscal Strategy Paper sets out the priority programs to be undertaken in the county to ensure continuation of economic transformation and shared prosperity. The fiscal framework presented in the 2017 CFSP will allow continued spending on infrastructure and economic development; support to social sector to enhance all-inclusive growth. PAUL MASINDE COUNTY EXECUTIVE COMMITTEE MEMBER DEPARTMENT OF FINANCE AND ECONOMIC PLANNING i ACKNOWLEDGEMENT A lot of effort and dedication has been spent, beyond office hours to ensure the 2017 County Fiscal Strategy Paper (CFSP) is prepared and submitted on time, as scheduled in the PFM Act. These efforts have been dedicated to the timely preparation of this CFSP, without which, actualization of this document would not have been possible. As usual, the preparation of CFSP continues to be a collaborative effort. Most of the information in this Paper was obtained from collaboration with MDAs and other county entities. We are grateful for their inputs. CHRISPINUS BARASA CHIEF OFFICER DEPARTMENT OF FINANCE AND ECONOMIC PLANNING ii ACRONYMS BOPA Budget Outlook Review Paper BRICS Brazil, Russia, India, China and South Africa CBK Central Bank of Kenya CBR Central Bank Rate CFSP County Fiscal Strategy Paper CG County Government CIDP County Integrated Development Plan CRR Cash Reserve Ratio EFT Electronic Funds Transfer GDP Gross Domestic Product ICT Information Communication Technology IFMIS Integrated Financial Management Information System MDAs Ministries, Departments, Agencies MTEF Medium Term Expenditure Framework MTP Medium Term Plan NG National Government NSE Nairobi Stock Exchange OMO Open Market Operations PBB Performance Based Budgeting PFMA Public Finance Management Act, 2012 PPP Public Private Partnership SACCOs Savings and Credit Cooperative Society TFP Total Factor Productivity iii EXECUTIVE SUMMARY This County Fiscal Strategy Paper contains information on:  Broad strategies, priorities and policy goals to be pursued by the County Government in the medium term;  County outlook on revenues and expenditure projections. The paper gives a summary of county achievements for the last 2 Financial years, while giving a forecast of what the county will prioritise in the next 3 years. Budget Financing Summary  Grant = Kshs. 8,838,771,660  Local revenue = Kshs. 499,669,327 as per the county Finance Act, 2016  AIA = Kshs. 232,228,168  Conditional grant: Health: Maternity Kshs. 100,000,000 Roads: Fuel Levy Kshs. 127,250,063  Other conditional grants (User fee foregone and maternity reimbursement) Kshs. 222,857,713  DANIDA kshs. 7,375,000.  Total Budget = Kshs. 10,028,151,931 The indicative ceilings for county Ministries, Departments and Agencies are as detailed herebelow; Name of Sector Allocation 2017/18 Agriculture, Livestock, Fisheries, Irrigation and Cooperative Development 803,117,488 Education, Youth and Sports 907,627,115 Health 2,245,820,839 Public Administration 547,710,543 Roads, Transport, Infrastructure and Public Works 767,459,712 Trade, Lands, Urban/ Physical Planning, Energy and Industrialization 450,123,704 Housing and Sanitation 110,711,605 Environment, Natural Resources, Water and Tourism 453,626,079 Gender and Culture 159,376,021 Finance and Economic Planning 2,032,364,448 Governor’s Office 445,192,547 County Public Service Board 87,848,591 County Assembly 1,017,173,240 Total 10,028,151,932 Notes:  There is need to strengthen the county internal revenue collection capacity, since it directly contributes to our total budget  As citizens, we are called upon to pay taxes, charges and other legitimate levies as contained in the annual county Finance Act, in order to support our county budget and consequently, the county development agenda. iv I. INTRODUCTION Overview 1. Section 117 (1) of the Public Finance Management Act, 2012 states that the County, Treasury shall prepare and submit to the County Executive Committee the County Fiscal Strategy Paper for approval and the County Treasury shall submit the approved Fiscal Strategy Paper to the county assembly, by the 28th February of each year. 2. This CFSP underlines the importance of continued pursuit of high and sustainable economic growth, employment creation and poverty reduction objectives. On the fiscal front, it takes cognizance of the reality that available resources are scarce and that there is need to focus on County priority programmes that have high impact on stated national and county objectives, but within a framework of a stable macroeconomic environment. 3. It emphasizes the need to strengthen planning and budgeting based on the Medium Term Expenditure Framework and Programme-Based Budgeting (PBB), which seeks to focus on result-based approach as per the priorities articulated by the County Government. The PBB links funds appropriated by the County Assembly to distinct deliverables and outcomes. 4. The County Government of Bungoma will continue to complement the efforts of National Government by investing in priority social-economic sectors and world class physical infrastructure. Specifically, the County Government has already initiated processes aimed at deepening structural reforms in the area of governance, public financial management; public service, business regulation, and the automation of operations. These reform measures are aimed at reducing the cost of doing business and thus enhance County’s competitiveness as well as private sector investment and growth. 5. The 2017 CFSP also underlines the importance of continued pursuit of high and sustainable economic growth, employment creation and poverty reduction objectives. On the fiscal front, this paper takes cognisance of the reality that available resources are scarce and that there is need to focus on County priority programmes that have high impact on our stated national and county objectives, but within a framework of a stable macroeconomic environment as articulated in the County Budget Review Outlook Paper for 2017. 1 6. As such, the County Government will continue to strengthen the Programme-Based Budgeting (PBB), which links funds appropriated by the County Assembly to distinct deliverables and outcomes. The County MDAs have proposed measures aimed at deepening successes and progressively moving towards attaining the set targets. 7. The CFSP 2017 details the County Budget Framework which includes deliberate efforts to achieve a balance between recurrent and development expenditure while ensuring macro- economic stability. 8. The County Fiscal Strategy Paper contains information on:  Broad strategies, priorities and policy goals to be pursued by the County Government (CG) in the medium term;  County outlook on revenues and expenditure projections. II. RECENT ECONOMIC DEVELOPMENTS National Economic Growth 9. The Kenyan economy has continued to register strong economic growth and preserved macroeconomic stability in the wake of uncertainty in the global currency markets following recovery of the US economy and concerns in the Euro Area. Kenya rebased its GDP in September 2014, resulting in the country’s moving to lower middle-income status. The rebasing raised Kenya’s nominal GDP for 2013 from USD 44.1 billion to USD 55.2 billion and per capita GDP from USD 994 to USD 1 246. The country leaped from the 12th to the 9th largest economy in Africa. The re-based Gross Domestic Product (GDP) figures of USD 55.2 billion (2014) places Kenya as the fifth largest economy in Sub-Sahara Africa and ninth in Africa. Although the economy remains small by global standards, it is distinguished from those of most of African countries by the fact that it is one of the most diversified and advanced. 10. Kenya’s economic growth has been robust supported by significant infrastructure investments, construction, mining, and lower energy prices and improvement in agriculture following improved weather. The economy grew by 5.3 percent in 2014, 5.6 percent in 2015, and is projected to grow 6.0 percent in 2016 and 6.5 percent in the medium term. 2 11. Macroeconomic stability has been preserved with inflation remaining on average within target. Overall month on month inflation was at 8.0 percent in December 2015 from 6.0 percent in December 2014. This was attributed to the increase in prices of several food items which outweighed the decreases as well as increase in the Alcoholic Beverages, Tobacco & Narcotics index. 12. The Kenya Shilling exchange rate has stabilised following increased foreign exchange inflows in the money market. The current level of foreign exchange reserves, backstopped by the precautionary program with the IMF, continues to provide an adequate cushion against exogenous shocks. Furthermore, the current account deficit narrowed, mainly due to a lower oil import bill, and a slowdown in consumer imports. 13. Short term interest rates have declined following improved monetary conditions that led to increased liquidity in the money market. The interbank rate was at 6.2 percent as of 21st January 2016 while the 91 day Treasury bill rate was 11.4 percent as of 22nd January 2016. Overview of the Economic Performance 14. In the first quarter of 2015, the economy registered real growth of 4.9 percent compared with 4.7 percent in the first quarter in 2014. The improved performance of the economy in the first quarter of 2015 was largely attributed to construction; finance and insurance; information and communication; electricity and water supply; wholesale and retail trade; and transport and storage. Concerns over security however weakened the performance of the tourism sector. 15. The economy grew by 5.5 percent in the second quarter of 2015 compared with growth of 6.0 in the same period in 2014. Growth in this quarter was largely supported by improved performance in Electricity and water supply; Agriculture; Wholesale and retail trade; and Transport and communication. The World Bank report Doing Business 2015 showed that the country’s ranking had declined to 136th out of 189 countries in 2014 from 129th in 2013. The fall was attributed to high taxes (specifically, an increase in employers’ social-security contribution rate) and the high cost of getting construction permits. One area where it was reported to have made significant improvement was in the ease of getting credit by investors. 3 The country’s Global Competitiveness Index ranking improved marginally to 90th out of 144 countries for 2014/15, compared to 96th out of 148 countries for 2013/2014. 16. Overall, Kenya has a relatively market-friendly business environment in which SMEs are very dynamic, due mainly to strong financial inclusion and small-business access to credit, which is also one of the reforms cited in the World Bank report Doing Business 2015 where Kenya has shown substantial improvement. Chart 1: Comparison in GDP Growth Rates 17. The economy grew by 5.3 percent in 2014 supported by strong performance in most sectors of the economy which offset the contraction in the tourism sector. Kenya’s economic growth remained resilient in 2015 growing at 5.6%. The first quarter of 2016 recorded an average of 5.9 percent growth compared to 5.3 percent growth in a similar period in 2014 and 5.0% in 2015 The growth was supported by improved performance in agriculture, forestry and fishing (7.1 percent), construction (14.1 percent), wholesale and retail trade (6.5 percent), transport and storage (8.7 percent) and electricity and water supply (11.0 percent). The accommodation and restaurant sector improved during the third quarter of 2015 with a contraction of 2.3 percent from a contraction of 16.0 percent during the same period 2014. This improvement is as a result of the withdrawal of the travel advisories by some key tourist source countries. 4 18. The economic prospects for 2016 are favorable, but risks remain. Real GDP is expected to grow by 6.0 per cent in 2016. Over the medium term, growth is expected to pick-up to about 6.6 Per cent, bolstered by continued expansion in agriculture, tourism, construction, transport and communication and ICT. While exports will continue to benefit from the relatively strong growth in the sub region and emerging economies of India, Brazil, China and Eastern Europe, new measures will be introduced to diversify and promote Kenya’s exports globally, especially export of services. Table 1: Macroeconomic Development 2013 2014 2015 2016(p) Real GDP growth 5.7 5.3 5.6 6.0 Real GDP per capita growth 3.0 2.6 3.9 3.7 CPI inflation 7.9 7.0 5.5 5.3 Budget balance % GDP -5.6 -8.0 -8.8 -8.3 Current account % GDP -2.9 -7.5 -7.9 -11.2 Source: Data from KNBS and World Bank; estimates (e) and projections (p) based on Economic Survey Projections Foreign Exchange Reserves 19. Generally, the Kenya Shilling depreciated against the major trading international currencies as reflected in the trade-weighted index. The index worsened by 5.7 per cent from 108.10 in 2014 to 114.30 in 2015 as presented in Table 7.13. The Kenya Shilling weakened against the US Dollar, Chinese Yuan, Indian Rupee and Pound Sterling by 11.7, 9.5, 6.3 and 3.7 per cent, respectively, in 2015. However, the Kenya Shilling gained against the Euro, South African Rand and 100 Japanese Yen by 6.7, 4.7 and 2.6 per cent, respectively, in 2015. The Kenya Shilling exhibited instability against the major world trading currencies during the year but stabilized from the month of November 2015. The Kenya shilling Exchange Rate 20. The Kenyan shilling depreciated by 8% against the USD, by 4% against the British pound (GBP) and by 14% against the Euro (EUR) between April 2015 and April 2016 according to the KNBS. The International Monetary Fund (IMF) attributes the weakening of the Kenya shilling to reduction in foreign currency denominated capital inflows, declining of tourism receipts and 5 interventions by the CBK to smooth the foreign exchange market. Despite the Kenya shilling depreciation, the EIU notes that Kenya shilling is resilient compared to other emerging market currencies due to the country’s stringent monetary tightening and also due to the country’s low level of dependence on hydrocarbons and minerals exports. The EIU reports that the Kenya shilling will remain vulnerable to global development such as further rises in US rates and uncertainties surrounding the state of the Chinese economy. The EIU predicts the Ksh to weaken from an average of 104.23 against the US dollar in 2016 to an average of 117.5 in 2020. 21. The Kenya Shilling displayed mixed performance against the currencies of major trading partners within the EAC during the year 2015. It strengthened against the Ugandan Shilling and Tanzanian Shilling by 11.5 per cent and 9.5 per cent, respectively but weakened against the Rwandese Franc by 9.0 per cent, in 2015 Stock Market Developments 22. The performance of the stock market in 2015 was bearish as depicted by all indicators. The NSE 20-Share index recorded a high of 5,346 points during the first quarter of 2015 but started to dip in the second quarter to record 4,040 points in December 2015, representing a drop of 21.0 per cent compared to December 2014. The share volume dropped from 8,233 million in 2014 to 6,812 million in 2015 resulting to a corresponding drop in equity turnover from KSh 216 billion in 2014 to KSh 209 billion in 2015. Total bond turnover decreased from KSh 506 billion in 2014 to KSh 305 billion in 2015. Notable changes in the number of licensed players in the capital markets was the increase in investment banks, fund managers, and collective investment schemes all of which their number increased by one. .The Government is keen on strengthening the Primary and Secondary markets for Government Securities which constitute a major component of the capital markets. This will include: introducing electronic bond auctions which will spare investors from the current manual process of submitting paper bids; separating the retail and wholesale components of the market, introducing primary dealers and market makers; and establishing an efficient horizontal repo market. In addition, with volatility in interest rates having been tamed, the Government will proceed with the M- Akiba Government Bond, the world’s first purely mobile phone based Government security. 6 Inflation 23. The KNBS reported a reduction in overall inflation to 5.3% in April 2016 from 7.1% in April 2015 due to lower food prices and reduced motoring expenses caused by low fuel prices. The EIU expects inflation to average 5.6% in 2016 due to subdued oil prices, lower electricity tariffs due to increased reliance on drought-resistant geothermal power and low food prices due to improved rainfall. The EIU forecasts inflation to average 5.1% between 2017 and 2020 due to a prudent monetary policy and efficiency gains arising from regulatory reform and investment in infrastructure. The EIU notes that drought remains a potential risk to inflation and demand pressures will prevent a rapid decline in inflation. Leading Economic Indicators for 2016 24. The annual inflation rate as measured by the Consumer Price Index (CPI) decelerated marginally from 6.9 per cent in 2014 to 6.6 per cent in 2015. The easing of inflation was largely due to reduced costs of petroleum products, electricity and tight monetary policies. The first quarter of 2015 was characterized by drought conditions that pushed up prices of some food items such as potatoes, tomatoes, milk, cabbages, beans and onions. However, during the second half of the year, weather conditions improved resulting in increased supplies and corresponding decreases in prices of several food items. 25. Food and Non-alcoholic beverages index which has largest weight in the CPI basket increased by 11.4 per cent to 188.22 in 2015. The Transport index decreased by 0.5 per cent to 160.61 points in 2015 compared with 2014 mainly due to lower costs of petrol and diesel. Housing, water, electricity, gas and other fuels index went up by 3.2 per cent during the review period mainly due to increases in house rents. In December 2015, excise tax was increased and this pushed up the prices of beer and cigarettes leading to an increase of Alcoholic Beverages, Tobacco & Narcotics index. 26. Fruits and vegetables had the highest increase of 21.9 per cent and 32.4 per cent in 2015, respectively. On the other hand, oils and fats as well as Sugar, jam, honey, chocolate and confectionery classes recorded declines during the same period. Meat, fish and sea foods, also recorded significant increases of 6.7 per cent and 9.6 per cent, respectively during the year under review. 7 27. Key macroeconomic indicators remained relatively stable during the review period. Overall, inflation eased from 6.9 per cent in 2014 to 6.6 per cent in 2015 due to lower energy and transport prices. The current account deficit as a percentage of GDP narrowed from 14.5 percent in 2014 to 11.4 per cent in 2015. This was due to a substantial growth in export of goods and services and a reduction in the import bill. The Kenyan Shilling depreciated against its major trading currencies during the review period but appreciated against the Euro, South Africa Rand and the Japanese Yen, respectively. Despite the monetary authorities adjusting the Central Bank rate (CBR), the weighted average interest rates on commercial banks loans and advances rose by 1.40 percentage points to 17.45 per cent in December 2015 compared to a rise of 15.99 per cent in December 2014. The volume of stocks traded at the Nairobi Securities Exchange (NSE) declined significantly from a high of 5,346 points in the first quarter of 2015 to 4,040 points in December 2015. During the period under review, the National Government expenditure on social sector is expected to continue increasing as a result of the demand for basic social services by the population. 28. In 2015, total employment outside small-scale agriculture and pastoralist activities increased by 5.9 per cent to 15,160.8 thousand persons. The economy generated a total of 841.6 thousand jobs of which 128.0 thousand jobs were in the modern sector while 713.6 thousand were in the informal sector, during the period under review. Wage employment within the public sector increased from 700.8 thousand persons in 2014 to 718.4 thousand persons in 2015. 29. In 2015 the Central Bank of Kenya (CBK) undertook several policies to support price stability and economic growth. Through the Monetary Policy Committee (MPC), it focused on achieving and maintaining stability in the general price levels and raised the Central Bank Rate (CBR) from 8.5 per cent to 10.0 per cent in June, and further to 11.5 per cent in July, 2015 to contain incipient inflationary pressures and stem exchange rate volatility. 30. The fiscal plan in 2015/16 entailed a deliberate effort to continue exercising prudence in public expenditure management with the principal goal of containing fiscal risks, gradually lower the fiscal deficit, and contain growth of recurrent expenditures in favor of productive capital spending. To achieve this, the Government endeavored to accelerate spending in 8 infrastructure, agriculture, security, health, education, social protection and youth empowerment. The overall objective of this will be to realize sustainable, shared and equitable growth that would in return lead to job creation. 31. Total exports rose by 8.2 per cent to Kshs. 581 billion in 2015, while total imports declined by 2.5 per cent to Kshs. 1,578 billion. This resulted to the balance of trade improving from a deficit of Kshs. 1,081 billion in 2014 to a deficit of Ksh 997 billion. The volume of trade increased marginally from Ksh 2,156 billion in 2014 to Ksh 2,158 billion in 2015. The rise in the total export earnings compared to the decline in the total import bill led to the improvement of export-import ratio from 33.2 per cent in 2014 to 36.8 per cent in 2015. Terms of trade of all items improved from 73.1 per cent in 2014 to 84.9 per cent in 2015, mainly due to improved unit prices of the export commodities coupled with a decline in import prices of mineral fuels. 32. Performance of the agricultural sector in 2015 improved against a backdrop of good weather and abundant rainfall; hence Gross Value Added improved from 3.5 per cent in 2014 to 6.2 per cent in 2015. This was largely achieved through improved crop and livestock production over the review period. Maize production increased by 9.0 per cent from 39.0 million bags in 2014 to 42.5 million bags in 2015. Sugar cane production increased by 4.6 per cent from 6.5 million tons in 2014 to 6.8 million tons in 2015. The quantity of horticultural exports increased by 8.4 per cent from 220.2 thousand tons in 2014 to 238.7 thousand tonnes in 2015. Export earnings from horticulture rose by 7.6 per cent to KShs. 90.4 billion in 2015. The volume of marketed milk increased by 10.9 per cent from 541.3 million liters in 2014 to 600.4 million liters in 2015. Earnings from milk sales during the review period rose by 10.0 per cent to KShs. 20.7 billion in 2015. However, tea production declined by 10.3 per cent from 445.1 thousand tons in 2014 to 399.1 thousand tons in 2015. However, the crop earnings increased by 39.5 per cent from KShs. 84.9 billion in 2014 to KShs. 118.4 billion in 2015. Coffee production declined by 16.0 per cent from 49.5 thousand tonnes in 2013/14 to 41.6 thousand tonnes in 2014/15. Coffee earnings also declined from KShs. 16.6 billion in 2014 to KShs. 12.1 billion in 2015. Overall, the food supply situation as monitored through the Food Balance Sheet improved as reflected in the energy supply improving from 2,202 Kilo Calories in 2014 to 2,293 kilo calories in 2015. The Self Sufficiency Ratio (SSR) improved from 74.4 per cent in 2014 to 75.2 per cent in 2015. The 9 Import Dependency Ratio also improved slightly from 29.2 per cent in 2014 to 28.3 per cent in 2015. III INTERNATIONAL ECONOMIC GROWTH AND FORECAST 33. Global growth of 3.4 percent in 2016 is projected to be at 3.6 percent in 2017. The lower performance was observed across most regions and major economic groups. This growth was supported by a fall in crude oil prices, low inflation rates and increased internal demands in individual economies. 34. In 2015, global economic activity remained subdued. Growth in emerging market and developing economies—while still accounting for over 70 percent of global growth—declined for the fifth consecutive year, while a modest recovery continued in advanced economies. Three key transitions continue to influence the global outlook: i. The gradual slowdown and rebalancing of economic activity in China away from investment and manufacturing toward consumption and services, ii. Lower prices for energy and other commodities, and iii. A gradual tightening in monetary policy in the United States in the context of a resilient U.S. recovery as several other major advanced economy central banks continue to ease monetary policy. 35. The outcome of the U.K. vote, which surprised global financial markets, implies the materialization of an important downside risk for the world economy. As a result, the global outlook for 2016-17 has worsened, despite the better-than-expected performance in early 2016. This deterioration reflects the expected macroeconomic consequences of a sizable increase in uncertainty, including the political front. This uncertainty is projected to take a toll on confidence and investment, including its repercussions on financial conditions and market sentiment more generally. The initial financial market reaction was severe but generally orderly. As of mid-July, the pound has weakened by about 10 percent; despite some rebound, equity prices are lower in some sectors, especially for European banks; and yields on safe assets have declined. 10 Sub Saharan 36. Growth in Sub-Sahara Africa (SSA) declined from 5.0% in 2014 to 3.5% in 2015. It is projected to rise slightly to 4.0% in 2016. The East African Community 37. East Africa’s growth in 2015 was 5.6 per cent. It is projected to increase to 6.7 per cent in 2016. The prospect makes the region the most attractive on the continent when compared to others. For future growth to be sustainable and transformative, it will require that the benefits are shared more equitably among the population and that governments continue to pursue policies that promote economic stability. Monetary Developments Interest rates 38. Kenya remained resilient through a turbulent 2015 characterized by currency instability and monetary tightening to post an economic growth of 5.6% in 2015 from 5.3% in 2014. Forecasts show Kenya’s economy growing by 6% in 2016 and by an average of 6.1% between 2016 and 2020 supported by strong public investment in infrastructure, a dynamic services sector and favourable demographics. 39. Kenyan Government’s spending is projected to rise by 7.7% in 2016 from 5.8% in 2015 as it remains committed to spending heavily on infrastructure. Private spending is expected to grow from ksh 4.7 trillion in 2015 to Ksh 8.7 trillion in 2020 due to rising incomes, favourable demographics and growing financial inclusion as mobile financial services continue to spread across the country. 40. The National Treasury reported that Kenya had a fiscal deficit of 8.7% of GDP in 2015. BMI forecasts a fiscal deficit of 8.1% of GDP in 2016 due to shortfalls in income tax and value added tax (VAT) collections despite efforts by the Government to increase tax compliance through incentive programmes and electronic payment systems. 41. The Central Bank of Kenya’s (CBK) Monetary Policy Committee (MPC) in September 2016 lowered its benchmark interest rate to 10% from 10.5%, due to the trends of reducing inflation rates and stabilization of the Kenyan shilling (Ksh). Following this move, the MPC revised the base lending rate, Kenya Banks’ Reference Rate (KBRR) in June 2016 that consequently reduced the cost of credit in the country in the second half of 2016. 11 42. Lending rates in Kenya increased from 15.5% in February 2015 to 17.9% in February 2016 while deposit rates increased from 6.7% to 7.5% in the same period due to a move by Kenyan banks to maintain their interest spreads following the increase in the base lending rate by CBK by 300 basis points to 11.5% in July 2015. 43. The Ksh depreciated by 8% against the USD, by 4% against the British pound (GBP) and by 14% against the Euro (EUR) between April 2015 and April 2016 according to the KNBS. The International Monetary Fund (IMF) attributes the weakening of the Ksh to reduction in foreign currency denominated capital inflows, declining of tourism receipts and interventions by the CBK to smooth the foreign exchange market. 44. Despite the Ksh depreciation, the EIU notes that Ksh is resilient compared to other emerging market currencies due to the country’s stringent monetary tightening and the country’s low level of dependence on hydrocarbons and minerals exports. 45. The EIU reports that the Ksh will remain vulnerable to global development such as further rises in US rates and uncertainties surrounding the state of the Chinese economy. The EIU predicts the Ksh to weaken from an average of 104.23 against the US dollar in 2016 to an average of 117.5 in 2020. Debt policy 46. Kenya successfully tapped international capital markets with a debut USD 2 billion Eurobond issuance. Of the proceeds, USD 600 million were used to repay a syndicated loan contracted in 2012 and the remaining will serve to finance energy and infrastructure projects. The issuance comprises a five-year bond totaling USD 500 million and a ten-year bond totaling USD 1.5 billion. The government also signed a loan with China in May 2014 for the construction of the Mombasa- Nairobi Standard Gauge Railway (USD 5 billion), to be implemented in about five years. Kenya has not sought debt relief under either the Heavily Indebted Poor Countries initiative or the Multilateral Debt Relief Initiative. The share of debt from private creditors continued to increase in 2014, reflecting Kenya’s successful inaugural sovereign bond issuance in June 2014. The national government will spend kshs. 596.1 billion on debt repayment for FY 2017/18 12 Financial sector 47. Kenya’s financial sector continues to demonstrate strong growth thanks largely to information and communication technologies and innovations, macroeconomic stability, and domestic and regional expansion in economic activities at the devolved level of government. The banking sector, which is largely private-sector driven, still comprises 43 licensed commercial banks and 1 mortgage finance company, 9 deposit-taking microfinance institutions, 7 representative offices of foreign banks, 101 foreign-exchange bureaus, 1 remittance provider and 2 credit reference bureaus. Fiscal Performance, July 2016 – September 2016 48. Implementation of the 2016/17 Budget continues well despite the challenges (see Table 1). Ordinary revenue for the period July 2016- September 2016 amounted to Kshs. 59,842,867 against a target of Kshs. 98,232,961 reflecting a deficit of Kshs.38, 390,094. This represents a shortfall of 39 percent. Ministerial and department fees collected amounted to Kshs. 45,681,808 against a target of Kshs. 53,057,139 which is a deficit of Kshs.7, 375,331. This represents an achievement of only 86 percent. The under-performance in ordinary revenue was largely due to noncompliance to the County Revenue Act, 2015 and the fact that the season for renewing or applying for Single Business Permits (SBP) had not set in by September 2016. 49. Total expenditure, on the other hand, amounted to Kshs 1,040,912,899 against a target of Kshs 2,300,270,850 thus reflecting absorption rate of 45.25 percent and an under-spending of Kshs 1,259,357,951. This was mainly due to delayed releases of grants from the National Government. It is however, worthy noting that grants from the National Government are inadequate, hence the need to utilize favourable PPP arrangements and maximize internal revenue collection. 13 Table 2: Fiscal Performance Revenue by 2015/16 2016/17 1st Quarter(July 2016 –SEPT 2016) Source Projected Actual Annual Projection Actual Deviation Collected/Receive Collected/paid (Q1) d (Q1) TOTAL 10,053,695,196 9,148,796,150 9,201,083,407 REVENUE Bal B/F 1,365,920,741 0 0 Ordinary 446,713,873 311,949,212 499,668,163 59,842,867 38,390,094 revenue Ministerial 357,331,682 319,039,274 212,228,555 45,681,808 7,375,331 and Departmental fees Grants from 7,883,728,900 8,517,807,664 8,389,186,688 1,682,853,592 National Government Conditional 0 0 100,000,000 0 Grant: Health TOTAL 10,053,695,196 9,148,796,150 9,201,083,407 1,682,853,592 7,518,229,8 EXPENDITUR 15 E Recurrent 6,080,000,980 4,819,557,937 5,911,562,722 1,138,970,505 4,772,592,2 expenditure 17 Development 3,973,694,216 2,994,203,862 3,289,520,685 438,358,412 2,851,162,2 Expenditure 73 Balance/Defic 0 904,899,046 0 0 it Source: IFMIS printout data Emerging Challenges 50. Since the commencement of the FY 2015/16 a number of challenges have emerged which are likely to affect the original assumptions that formed the basis of the FY 2016/17 and thus FY2017/18 Budget. These challenges include: a) Continued Revenue underperformance: mainly due to non-disclosure of AIA by MDAs particularly the ministry of Health and low enforcement capacity b) Staff rationalization c) Duplication of efforts due to uncoordinated devolved funds d) Setting up county government structures particularly offices for further devolution of administration e) Staff unrest-specifically health workers 14 f) Delayed and Small monthly Ex-Chequer releases g) Delayed release of funds carried forward from the previous financial year for the payment of pending bills leads to threats of litigation against the County Government h) Budget reduction and sharing of losses due to reduction in FY 2015/16 grant and duplication of conditional grants from the National Treasury To address these challenges, County Ministries/departments must prioritize and provide for their priority programmes within the available resource envelops. Progress in Structural Reforms 51. Significant progress has been made in promoting good governance, and creating an efficient and effective public sector. Among the measures implemented thus far include:  Adoption of IFMIS including e - procurement modules  The introduction of the internet banking solution  Modernization of County Assembly debating chambers  Strengthening of the revenue collection department through automation of revenue collection.  Operationalization of the Community Development Fund and loan funds for youths, women and special interest groups  Enactment of the County Disaster Management policy 15 IV. MEDIUM TERM EXPENDITURE FRAMEWORK Introduction 52. An evaluation of the macroeconomic situation and a limited resource envelope in past three years shows that adjusting non-priority expenditures to cater for the priority ones will guide the Medium Term Expenditure Framework (MTEF) budgeting processes. Social sectors including Education and Health will continue to receive adequate resources while the productive sectors such as those of agriculture and livestock will receive increasing share of resources to boost agricultural productivity and value addition ventures. Share of resources for priority physical infrastructure sector, such as roads, water and irrigation, will continue to rise over the medium term. All the other sectors will continue to receive adequate resources in line with our county’s commitment to a balanced sector development so as to enhance the quality of life for the residents of the county. Resource envelop 53. The county formula for allocation of resources among the spending departments and agency is based on the medium term fiscal framework. Therefore;  More than 88% of the total budget will be funded through equitable share and other grants from the National Government;  About 7.3% will be funded through funds from local development partners and county local revenue collection;  Over 38% of the revenues will be used for development expenditure. The approach is in line with the long-term sustainability of the county public finances. 54. The county will in the medium term focus on improving local revenue sources in order to finance the expanding budget requirements. All the departments are therefore challenged to increase their appropriation in aid (AIA) targets to increase local revenue. Table 3: Resource Envelope Revenue source Approved estimates 2016/17 Estimates for 2017/18 CRA Share 8,282,207,063 8,838,771,660 Local Revenue/AIA 731,896,723 731,897,495 Total 9,014,103,786 9,570,669,155 Conditional Grants 457,483,553 457,482,776 Grand Total 9,471,587,339 10,028,151,931 Source: BOPA 2017 16 Collaborations with National Government and Development Partners National Government 55. Our county continues to encourage and sustain a cooperative and collaborative framework with the national government in terms of implementing the national development agenda and critical policy directives. This will ensure synergized devolution objectives achievement and rapid local economic development. Therefore, developing strategic networking and collaborations based on the needs and policy direction of the country’s Vision 2030 and those of our county’s CIDP is inevitable. 56. Consequently, the county will collaborate with the national government in several areas including; medical equipment, roads maintenance, maternal health and health facilities operations. This collaboration will be in form of conditional grants from the National Government’s allocation share as indicated in the 2017 Budget Policy Statement (BPS). These conditional grants include;  Medical equip leasing  Road Fuel Maintenance Levy Fund (RMLF)  Free Maternal Health (FMH)  Compensation for User Fees foregone Table 4: Conditional allocations summary Conditional grants Amounts (Kshs.) Free maternity health care 189,574,801 Compensation for user fees foregone 33,282,912 Leasing for medical equipment 95,744,681 Road Maintenance fuel levy fund 127,250,840 Conditional Allocations from Development Partners 57. In the last four financial years, the county has been receiving DANIDA conditional grants as Health Sector Support Grant. In 2016/17, the county also received Health Sector Support conditional grant from World Bank. These conditional grants are expected to continue in the 2017/18 Financial Year. County Lands Management Board (CLMB) 58. The county government will collaborate with the CLMB to ensure efficient land management and secure land tenure. In this regard, the county will facilitate the board with necessary logistical support to ensure efficient and effective service delivery. 17 County Policing Authority 59. Plans are underway for constitution of County Policing Authority; the Authority will identify security issues, and advise the security agencies in the county on strategies to address the issues. The county will facilitate the authority with all the necessary support for its operations. County Education Board 60. Education sector has undergone significant legal, policy and institutional reforms which have resulted in establishment of new institutions. County Education Board is one of such institution established in the county. For it to deliver on its mandate the county will collaborate with the ministry of education to ensure the board is operating as desired. Public Private Partnerships 61. Enhanced development cooperation, networking and collaborations through Public Private Partnerships (PPP) approach will enhance faster development, replicate best development practices and create job opportunities. The county will therefore put in place mechanisms through favourable policies and necessary legislations guided by necessary National Treasury Circulars and conditions. Disaster Risk Reduction 62. Since drought risk management is so closely entwined with sustainable development, it is inevitably a shared function of both the national and the county governments thus both levels of government will initiate the prerequisite mechanisms to mitigate and manage disasters Resource Sharing Guidelines 63. The resources available are shared in accordance with the following guidelines; i. Non-discretionary expenditures; this takes first charge and includes payment of statutory obligations such as salaries, pension and others. These expenditures are projected to account for about 37 per cent of the Budget. ii. Operations and maintenance - Departments are allocated funds for basic operations and maintenance. This accounts for 24 per cent of the budget iii. Development expenditure; as already indicated, it is 36 per cent of the total budget. Development expenditures are shared out on the basis of the sector plans and priorities and other strategic county considerations. The following guidelines are used;  On-going projects- emphasis is given to completion of on-going projects and in particular infrastructure projects, flagship projects and projects with high impact on poverty reduction and equity, employment and wealth creation. 18  Statutory requirements- priority is also given to programmes that must be funded in accordance with the law such as Ward Loan Schemes, Ward Bursaries and County Trade Loans.  Strategic policy interventions- priority is given to policy interventions covering the entire county, regional integration, social equity and environmental conservation.  Pending bills- County MDAs will be guided by available resource envelop while also making strategic reductions on programme implementation. Sector Performance, Priorities and Ceilings Details of Sector Priorities 64. The MTEF period 2017/18 – 2019/20 spending estimates allocates resources based on priority programmes in MTP II of Vision 2030 and the CIDP 2013-17. The main focus for the county is to accelerate growth, infrastructure improvement, creation of employment and poverty reduction. The recent achievements and key priority targets for each sector are based on the reports from the Sector Working Groups (SWG). a) Agriculture, Livestock, Fisheries, Irrigation and Cooperatives 65. The mandate of the department is to promote, regulate and facilitate Agriculture and Livestock production for socio-economic development and industrialization. The sector aims at raising agricultural productivity, exploiting irrigation potential, increasing commercialization of agriculture, as well as promotion of sustainable management of fisheries in the county. The main challenges facing the sector include: Low Agricultural and livestock Production; Poor access to markets; Land ownership, poor markets and marketing infrastructure, low value addition and competitiveness and low access to financial services as well as affordable credit. 66. In FY 2013/14-2015/16, the department implemented the following projects: Provided 35 greenhouses to organized youths and women groups, Commissioned 3 mobile soil testing laboratories, distributed 36,000 bags (50kgs) certified fertilizers and 18,000 bags of certified maize seeds to vetted needy farmers , ploughed 1000 acres of land using the acquired agricultural machineries, rehabilitated 2 small dams (Khayo and Muyayi), provided 400 dairy animals to farmer groups, installed two milk coolers at Kikai and Kitinda, distributed 400,000 fingerlings and 2000 bags of formulated fish feeds to farmers. 67. In the current FY 2016/17, the planned projects include; Purchase of animals and breeding stock, acquisition of strategic stocks, purchase of agricultural machinery and small 19 equipment, rehabilitation and maintenance of Mabanga A.T.C, Construction of weigh bridges for coffee millers, Construction of Webuye West and completion of Mt. Elgon sub-county office block, Completion of Board room, septic tank at Kimilili Sub county Agriculture office, Construction of septic tanks and installation of water reservoir at Sirisia sub-county, renovation of Kanduyi Agriculture office, rehabilitation of dams, Construction of Bukembe and Kamukuywa milk cooler houses, construction of recirculating hatchery and feed store at Chwele fish farm, installation of liquid Nitrogen deport for AI and rehabilitation of Kimilili slaughter house. 68. During the 2017/18-2019/20 MTEF period, the focus will be on; Deepening investments in food security, Developing poultry value chains, Promoting agri-enterprenuership, Investing in agricultural transformation and agricultural technology, Marketing of agricultural products and building of farmers’ capacity in integrated agriculture approaches. 69. To achieve all these, the department will require Kshs. 1,598,123,441 over the MTEF period. In FY 2017/18 the department has been allocated Kshs 803,117,488 which is a 1.5 % increase from Kshs. 791,096,750 allocated in FY 2016/17. b) Roads, Public Works and Transport 70. The department includes roads, public works and transport sections. Its mandate includes construction and maintenance of all County roads, Public roads Transport, road signs, parking and regulation of County public transport systems and maintenance and hiring out of Construction plants and machineries. 71. Over the medium-term, the sector’s priorities include; Implementing 77 km under Roads Levy fund, upgrade 20 Km of urban roads to bitumen standards, purchase 1 acre plot for excavating gravel in each ward, gravel urban estate access roads and school access roads, construct by-pass road along C 40 Bungoma - Mumias Road (Oldrex – Wambiya Junction – Muslim Secondary – Musikoma), 675 km of ward roads with County acquired machinery, implement 241 Km of gravel roads under M.O.U with Nzoia and West Kenya sugar companies, install beacons on County roads to reduce cases of encroaching, construct fire station in Mt. Elgon sub-county and construct material testing laboratory at County Headquarters. 20 72. During FY 2013/14-2015/16 financial year the department implemented the following projects; 11.65 Km of urban roads upgraded to bitumen standards out of which 8.5 km of urban roads were completed in the major towns of Webuye (4.5 Km), Kimilili (2.3 Km) and Bungoma (1.7 Km), gravelled 97 km of gravel roads within the county, graded and opened 186.7 km of ward roads using County Government acquired plant and machinery, acquired a 10,000 litre capacity fire engine ambulance and a motor vehicle and installed 63 grid –based street lights in Bungoma Town. 73. The following projects will be implemented in FY 2016/17; upgrading of 9km urban roads, construction of 3 bridges and box culverts, maintain 115km of sub-county roads and 77 km of road under the fuel maintenance levy fund as well as maintain 38 CESS roads. 74. To achieve all these, the department will require Kshs. 4,357,131,962 over the MTEF period. In FY 2017/18 the department has been allocated Kshs. 767,459,712 which is 1.2 % decrease from Kshs. 776,533,793 allocated in FY 2016/17. c) Health 75. The department has a mandate to provide quality, accessible and affordable health care services at the same time putting a framework of monitoring and evaluation with all stakeholders. In the medium term, the county government will continue to invest in training of health professionals, infrastructure improvement in Health facilities and improvement in the working conditions of medical practitioners. 76. During FY 2013/14-2015/16 the department implemented various projects/programmes including control and management of HIV/AIDS, malaria and TB, improved primary and maternal health among others. 77. During the FY 2017/18-2019/20 MTEF period, the focus will be on health infrastructure improvement; disease prevention and control; improvement of maternal and child health care; improved distribution of medical equipment and drugs; improved waste management and healthcare staff housing. 78. To implement the above programs, the department will require Kshs 10,117,245,711 in the medium term. In FY 2017/18 the department has been allocated Kshs 2,245,820,839 which 21 is 2.8 % increase from Kshs 2,199,411,419 allocated in FY 2016/17 budget. The department’s budget takes 2.1 % of the county budget. d) Education, Youth and Sports 79. The department has 3 sections namely: Early Childhood Education Development; Youth and Sports; and Vocational Training. The mandate of the department includes Early Childhood Education, Care and Development; Management of village polytechnics and Promotion of sports. 80. In FY 2013/14-2015/16, the department implemented the following projects; employed 1982 teachers and improved infrastructure for ECDE, awarded and disbursed education Bursaries to 67,500 needy students in 45 wards, developed sports through infrastructure improvement, developed talent and sponsored sports teams, established a Youth Micro finance credit scheme through Bungoma County Youth Empowerment Fund (BUCOYEF) where 495 youth groups benefited, registered 65 Vocational Training Centres (VTCs) and completed 40% of Phase II of High Altitude Centre (MT Elgon). 81. In FY 2016/17 the department is in the process of offering scholarships and education benefits, construction of one stadium, complete phase II High altitude training Centre, enhance youth fund to target more beneficiaries, support to youth polytechnics and give grants to ECDE Centres. 82. During the FY 2016/17-2018/19 MTEF period, the department will majorly focus on; Completion of the construction of the remaining 25 Early Childhood Development Education (ECDE) classrooms and toilets, completion of the construction of the 60% remaining phase 2 of High Altitude Training Centre, equipping of Vocational Training Centres (VTCs) as well as employing more instructors, organize Kenya Youth Inter County Sports Association (KYICSA), support the construction and equipment of libraries and science laboratories in strategic areas within the county through Public Private Partnership, establish a tailor-made Bursary Fund for the needy, gifted and talented children at Secondary and tertiary levels of education and training. 22 83. To fund the programmes, the department will require Kshs 6,245,611,542 in the medium term. In FY 2017/18 the department has been allocated Kshs 907,627,115 which is 34.5 % increase from Kshs 674,651,172 allocated in FY 2016/17. e) Environment, Natural Resources, Water and Tourism Department 84. The department comprises of environment, natural resources, water and tourism sub- sections. It has a mandate to ensure that there is sustainable provision of adequate, quality and affordable water supply services through effective management of resources and infrastructure and in turn promote socio-economic progress in the county. 85. In FY 2013/14-2015/16, the department undertook various measures to provide water services including developing a water strategic plan, protection of 216 water springs, construction of 9 wells, drilling of 10 boreholes and constructing 65 storage tanks, planting 100,000 tree seedlings, 18 towns and market centres contracted for cleaning and collection of garbage, Kimilili town underwent beautification and purchased 3 garbage trucks. 86. In the current FY 2016/17, the planned projects include; development of Sikele Sia Mulia cultural site at Sang’alo, Construction of Mt Elgon Kaberwa park gate and information office, greening services in all the 45 wards of Bungoma County, Contracting of solid waste management in all major towns of Bungoma County, purchase of skips and skip loaders for Bungoma, Webuye, Kimilili and Chwele towns. The water sector will overhaul water supplies and sewerage system by upgrading pipelines and rehabilitating water projects in various towns, protecting water springs, drilling boreholes, constructing of a 50m3 Masonry tank and construction of 3 shallow wells. 87. For the MTEF period 2017/18-2019/20, the department will focus on; Annual tourism and cultural festival, construction of nature walk trails in Mt. Elgon forest, purchase of 27 skip, 1 tractor and 3 skip loaders, undertake annual events such as Bungoma Marathon, bicycle riding and jumbo charge; opening and clearing of drainage systems in Bungoma, Chwele, Webuye, Kimilili, solid waste management program in all major towns and markets, promoting poverty environment initiatives, conduct water quality tests, construct office block, carry out geophysical surveys, construct 18 water supplies, protect 234 water springs, construct 90 roof water catchment tanks, drill and equip 18 bore holes, develop 18 hand dug wells and equip 23 with hand pump, construct 45 storage tanks of 100m3 and conduct feasibility study for 8 water projects. 88. In order to achieve these programs, the department will require Kshs 3,333,809,024 in the medium term. In FY 2017/18 the department has been allocated Kshs 453,626,079 which is a 41.8% increase from Kshs 319,969,736 allocated in FY 2016/17. f) Trade, Lands, Urban/Physical Planning, Energy, and Industrialization. 89. The department has 5 sections namely; Trade, Lands, Urban/Physical Planning, Energy, and Industrialization. Trade, Energy and Industrialization sector has broad mandate to promote employment creation through creating conducive environment for doing business, providing business development services and enhancing access to affordable credit. 90. In FY 2013/14-2015/16 the trade section installed 95 solar lights on 20 market centers, installed 4 high flood mast lights on 4 market centers, provided trade loans to 1195 entrepreneurs, calibrated 87 working standards and inspector’s testing equipment, inspected 1,125 traders premises and equipment for compliance, verified and stamped 8,178 weighing and measuring equipment, conducted 3 trade fairs and exhibitions and renovated Bumula Constituency Industrial Development Centre (CIDC) at Kimwanga. 91. In the current FY 2016/17, the planned projects for the Trade section include; 92. Installation of solar lights, facilitation of Rural electrification in Collaboration with KPLC, disbursing trade Loans, completion of SHOMAP Markets, development of Business incubation centres (BIC) and Business Information Centre. The sector will also undertake completion of Economic Stimulus Market, construction of Market sheds and construction of modern market stalls in Trading Centres. 93. During the 2017/18-2019/20 MTEF period, the trade sub-sector’s focus will be on; Promoting the use of green energy, construct 3 tier one markets in Bungoma, Webuye and Kimilili, provide 600 modern market stalls, automate trade loans and licenses, establish business incubation centers, develop and rehabilitate markets and provide modern sanitation facilities, construct drainage facilities on all markets, rehabilitate all cattle auction rings and provide sanitation facilities and provide solar lights in all markets and high mast flood lights in deserving area. 24 94. In order to fund these programmes, the trade sub-sector will require Kshs 339,717,617. In FY 2017/18 the department has been allocated Kshs 128,492,250 which is a 25.2% decrease from Kshs 160,852,179 allocated in FY 2016/17. Lands, Urban and Physical Planning sector 95. One of the major mandates of the Lands, Urban and Physical Planning sector division is to secure land for strategic investments and also for boosting trading and commercial activities all aimed at generation of employment opportunities. 96. In FY 2013/14-2015/16 the lands sub-section Purchased 15 acres of land (7 acres in Myanga for police post, auction ring and open air market and 8 acres in Bungoma for agricultural use), issued 400 title deeds in Malakisi, initiated the preparation of Valuation rolls for Bungoma and Webuye town in order to provide a justified means of collecting land rates and rent and commenced rehabilitation of 5 livestock Auction rings within the county. 97. The sub-section also Installed 348 street lights as follows; Chwele 40, Cheptais 56, Myanga 17, Kamukuywa 50, Sirisia 31, Webuye 154. Installed 189 solar lights – Bungoma 41, Sang’alo 5, Kibabii 20, Mateka 7, Bumula 10, Mayanja Kibuke 3, Kimwanga 3, Kapkateny 3, Namwela 4, Malakisi 10, Kipsigon 3, Chepkube 3, Mechimeru 3, Chesikaki 4, Nang’eni 3, Kabula 8, Bukembe 10, Ekitale 3, Kimilili 40, Mayanja 5. 98. Lands, Urban and Physical Planning sub-sector is taking care of Street Lights installation, valuation rolls preparation, development of physical plans, purchase of survey equipment, identify and survey government land, construction and rehabilitation of auction rings, design storm water drainage and maintenance system. 99. The sub-sector will on the other hand purchase land for strategic investments, resolve land disputes, undertake valuation rolls for Kimilili and Kapsokwony, Physical development plans for urban centres (Sang’alo, Bukembe, Kamukuywa, Mbakalo, Bokoli), establish town management committees (Bungoma, Webuye and Kimilili), install Street lights, develop Integrated urban plans for Webuye, Kimilili and Bungoma. 100. In order to fund these programmes, the lands sub-sector will require Kshs 453,286,057. In FY 2017/18 the department has been allocated Kshs 321,631,464 which is a 12.7 % increase from Kshs. 280,852,120 allocated in FY 2016/17. 25 g) Finance and Economic Planning 101. The department has six sections namely: Accounting; Revenue; Supply Chain Management; Economic Planning; Budget, Community Empowerment Fund Services and Internal Audit. The mandate of the department is to facilitate and coordinate county development planning and to provide leadership in county economic policy management and formulating financial and economic policies. Sufficient funding over the 2017/18-2019/20 MTEF period will enable the department to promote sound public financial and economic management for socio-economic development; articulate and implement the county’s policy for development; fast-track the CIDP and develop draft CIDP 2018-2022, mainstream planning and budgetary process including implementation, monitoring and evaluation. 102. During FY 2013/14-2015/16 the department finalized the review of the County Integrated Development Plan 2013 – 2017, completed the automation of the county revenue systems, prepared Budget Review Outlook Paper (CFSP) for FY 2016/17, prepared County Fiscal Strategy Paper (CFSP) for FY 2016/17, prepared and Programme Based and Itemized Budgets for FY 2015/2016 and FY2016/17, prepared Appropriation and Finance Acts for FY 2016/17 and duly submitted to the County Assembly within the stipulated time, prepared relevant revenue laws and submitted to the County Assembly for adoption. The laws included, the Bungoma county agricultural produce cess bill, 2015, the Bungoma county parking management bill, 2015, the Bungoma county public participation bill, 2015, the Bungoma county public markets bill, 2015, Bungoma county revenue administration and management bill, 2015, county tariff policy, the Bungoma county property hire and lease bill, 2016, Bungoma county trade licensing bill, 2016. Prepared community empowerment fund policy and its regulations. Prepared Annual Development Plan for FY 2016/17 and submitted to the County Assembly for Approval and prepared annual work plans and budgets for exchequer releases. 103. In the current FY2016/17 the department planned to; prepare Budget Review Outlook Paper (CFSP) for FY 2017/18, County Fiscal Strategy Paper (CFSP) for FY 2017/18, Programme Based and Itemized Budgets for FY 2017/18, Appropriation and Finance Acts for FY 2017/18 and duly submitted to the County Assembly within the stipulated time, prepare relevant revenue laws and submit to the County Assembly for adoption. 26 104. During the FY 2017/18-2019/20 MTEF period, the focus will be on improvement of revenue collection systems; enhancing monitoring and evaluation of county projects and programmes; efficient financial management; timely preparation of financial and economic policy papers and tracking and preparation of CIDP. The resource requirement to facilitate the programmes is Kshs 6,751,022,626.In FY 2017/18 the department has been allocated Kshs 2,032,364,448 which is a 4.4 % decrease from Kshs. 1,946,801,997 allocated in FY 2016/17 h) Public Administration 105. The sector is mandated to disseminate county government policies to the citizens as well as ensuring cohesion and peaceful co-existence in the county. The department has structures to represent the county up to the ward level. 106. In FY 2013/14-2015/16, the County Department of Public Administration made the following key achievements: Initiated the construction of 7 Ward Administrative offices in the following wards Maraka, Ndivisi, Kaptama, Bukembe West, Khalaba and Kamukuywa and Maeni wards and completed the erection of the perimeter wall in the county main office. 107. In the current FY2016/17 the department planned to; Complete Ward Offices in 2 Sub- counties, construct a Data Centre at the head-quarter and purchase an ICT networking and communication equipment. 108. During the 2017/18-2019/20 MTEF period, the focus will be on; Completion of the 7 ward offices, continuously roll out Civic Education programmes to enhance citizen understanding of devolution and its benefits, develop policies and devise relevant legislation to guide execution in respective departments and support units, prepare relevant sessional papers, prepare and implement medium and long term staff development plans and administer obligatory staff schemes. 109. The Department’s resource requirement will be Kshs 2,088,732,434. In FY 2017/18 the department has been allocated Kshs 547,710,543 which is 21.4 % increase from Kshs 451,249,179 allocated in FY 2016/17. 27 i) Housing and Sanitation 110. The department is comprised of the housing and sanitation sub-sectors whose mandate is to improve livelihood of county residents through facilitation of access to adequate housing in sustainable human settlements and improved sanitation. 111. In FY 2013/14-2015/16, the department achieved the following; 52 houses were renovated with 26 being minor repairs and 26 major maintenance (renovation and refurbishment) in Kanduyi upper Milimani, lower Milimani near law court, drivers quarters behind the assembly, Malakisi health center and Tongaren, community led total sanitation was carried out in Namwela ward, Sirisia Sub County and construction of 5 modern public sanitation facilities at Ndalu, Naitiri, Dorofu, Misikhu and Sitikho markets. 112. In the current FY 2016/17 the department planned to; Refurbish non- residential buildings, Construction of Sanitation blocks in Mayanja Vitunguu market, Webuye and Bungoma towns, Construction of Public toilets in 4 markets and Construction of houses at Kanduyi sub-county. 113. During the FY 2017/18-2019/20 MTEF period, the focus will be on; Renovation, refurbishment and minor repairs to county residential houses, construction of 2 bedroom 3 storey residential flats of 60 units in Kanduyi and 12 units in Kimilili Sub-County using Affordable Housing Technology, building and equipping Affordable Building Technology (ABT) centres, developing high rise units for sale at low cost, construction of modern sanitation blocks in towns and major markets, slum upgrading in partnership with the National Government, Promotion of school sanitation programs through the provision of hand wash facilities in all ECDs and carrying out Community Led Total sanitation (CLTs) activities in 45 wards. 114. The department’s resource requirement in the MTEF period will be Kshs 1,420,354,966 in FY 2017/18 the department has been allocated Kshs 110,711,605 which is a 13.8 % increase from Kshs 97,283,734 allocated in FY 2016/17. j) Gender and Culture 115. This sector is key to gender mainstreaming in development, making people living with disability productive and promoting our cultural heritage. 28 116. In FY 2013/14-2015/16, the department achieved the following; awarded loans to 534 women groups and 135 differently empowered groups, trained 680 women and disable groups on entrepreneurship, renovated the 1930 Sudi-Namachanja House and constructed Sudi- Namachanja mausoleum as well. 117. In the current FY 2016/17 the department planned to renovate Sang’alo Cultural Centre, acquire land on which Sudi Namachanja mausoleum was constructed. Construct and protect Mt Elgon caves, and give grants to elderly and severely disabled and vulnerable groups. 118. During the FY 2017/18-2019/20 MTEF period, the focus will be on; constructing an integrated cultural center at Sang’alo, cultural theatre and accommodation facilities at Sudi- Namachanja to attract tourists, rolling out a program to train brewers on hygiene and quality to be produced through capacity development workshops and exhibitions. The Department will develop policies and institutions devoted to promoting gender equity and mainstreaming culture in development planning, champion the establishment of County women savings and credit cooperative societies to promote business growth, devote more resources to social protection, including cash transfers to the most vulnerable members of the society and grants to cultural groups for the generation of cultural industries. 119. In the medium term the department will require kshs 1,112,859,407 In FY 2017/18 it has been allocated Kshs 159,376,021 which is 2.6% increase from Ksh 155,412,450 allocated in FY 2016/17. k) County Public Service Board 120. The board is mainly charged with the responsibility of recruitment and deployment of county staff. 121. In FY 2013/14-2015/16, the department recruited 382 staff of various cadres for departments, implemented Board’s policies and strategic plan, absorbed into County public service a total 639 former Local Authorities and 134 casual employees, promoted a total of 291 officers in the department of Health, developed a draft County organization structure and customized relevant County human resource policies. 122. During the FY 2017/18-2019/20 MTEF period, the focus will be on undertaking trainings to enhance good governance, carry out sensitization workshops to the Public service staff and 29 monitor compliance on the extent to which values and principles are complied with among the County departments and offices, construction of administration office, develop HRM monitoring software, digitalize wealth declaration and conduct customer satisfaction surveys. 123. In the medium term the board will require kshs. 534,825,326 In FY 2017/18 it has been allocated Kshs 87,848,591 which is 77.1% increase from Kshs 49,603,947 allocated in FY 2016/17. l) Governor’s Office 124. The Governor’s office is charged with the task of formulation of key county policies which give direction to the operation of all county departments and hence leading to county development and economic growth. 125. During FY 2013/14-2015/16 the department realized the following; there was improved coordination and support for implementing departments, service delivery and improved advisory services. 126. During the 2017/18-2019/20 MTEF period, the focus will be on continuing with its development agenda through the enactment of regulatory frameworks, policy formulation as well as providing institutional and human support services. 127. During the MTEF period FY 2017/18-2019/20 the department will require Kshs 1,550,594,097 In FY 2017/18 the department has been allocated Kshs 445,192,547 which is 9.5 % increase from Kshs. 406,620,230 allocated in FY 2016/17. m) County Assembly 128. County assembly plays the oversight role in strengthening good governance in the county. During FY 2013/14-2015/16 the department realized the following; actualized 10 bills, 2 policies and 5 regulations, operationalized 45 ward offices, installed the institution’s Internet and website, chambers refurbishment and complete roof overhaul; and participated in CASA games. 129. In the current FY2016/17 the department planned to; construct six committee rooms, one public waiting lounge and a boardroom, construction and installation of water reservoirs, completion of car park, perimeter wall and ICT infrastructure. 30 130. During the FY 2017/18-2019/20 MTEF period, the focus will be on construction of a new administration office block, construction of the Speaker and Clerk official residences, construction of assembly library, provide Wi-Fi services to Hon. Members and Assembly staff, establish interactive websites to deepen public involvement in the affairs of the Assembly and drill a bore hole. 131. During the MTEF period FY 2017/18-2019/20 the County Assembly will require Kshs 2,444,120,626. In FY 2017/18 the County Assembly has been allocated Kshs. 1,017,173,240 which is a 13.2 % decrease from Kshs 898,405,023 allocated in FY 2016/17. 31 Medium Term Sector Ceilings, 2017/18- 2019/20 Total Sector Ceilings for MTEF Period 2017/18-2019/20 CFSP Ceiling 2017/18 Sector Description Estimates Projections % Share of Total Allocation 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Agriculture, Livestock, Sub-Total 791,096,750 811,436,453 852,008,276 894,608,689 8.60 8.1 8.1 8.1 Fisheries, Irrigation and Rec. Gross 402,971,672 435,956,836 457,754,678 480,642,412 Cooperatives Dev. Gross 388,125,078 375,479,617 394,253,598 413,966,278 Environment, Natural Sub-Total 319,969,736 494,975,824 519,724,615 545,710,846 3.48 4.9 4.9 4.9 Resources, Water and Rec. Gross 63,298,812 102,299,157 107,414,115 112,784,821 Tourism Dev. Gross 256,670,924 392,676,667 412,310,500 432,926,025 Education, Youth and Sub-Total 674,651,172 757,567,038 795,445,390 835,217,659 7.33 7.6 7.6 7.6 Sports Rec. Gross 355,650,428 710,501,038 746,026,090 783,327,394 Dev. Gross 319,000,744 47,066,000 49,419,300 51,890,265 Health Sub-Total 2,199,411,419 2,260,820,839 2,373,861,881 2,492,554,975 23.90 22.5 22.5 22.5 Rec Gross 1,990,328,706 2,051,801,213 2,154,391,274 2,262,110,837 Dev. Gross 209,082,713 209,019,626 219,470,607 230,444,138 Public Administration Sub-Total 451,249,179 632,860,921 664,503,967 697,729,165 4.90 6.3 6.3 6.3 Rec Gross 400,566,387 528,387,656 554,807,039 582,547,391 Dev. Gross 50,682,792 104,473,265 109,696,928 115,181,775 Roads, Transport, Sub-Total 776,533,793 849,565,860 892,044,153 936,646,361 8.44 8.5 8.5 8.5 Infrastructure and Public Rec Gross 115,144,388 121,752,144 127,839,751 134,231,739 Works Dev Gross 661,389,405 727,813,716 764,204,402 802,414,622 Lands, urban and Sub-Total 273,191,798 311,338,743 326,905,680 343,250,964 2.97 3.1 3.1 3.1 Physical planning Rec Gross 72,181,326 95,295,066 100,059,819 105,062,810 Dev Gross 201,010,472 216,043,677 226,845,861 238,188,154 Trade, Energy and Sub-Total 160,852,179 220,393,761 231,413,449 242,984,122 1.75 2.2 2.2 2.2 Industrialization Rec Gross 60,941,896 58,197,174 61,107,033 64,162,384 Dev Gross 99,910,283 162,196,587 170,306,416 178,821,737 Housing and Sanitation Sub-Total 97,283,734 105,711,605 110,997,185 116,547,045 1.06 1.1 1.1 1.1 Rec Gross 36,018,644 34,490,670 36,215,204 38,025,964 32 Dev Gross 61,265,090 71,220,935 74,781,982 78,521,081 Gender and Culture Sub-Total 155,412,450 242,042,742 254,144,879 266,852,123 1.69 2.4 2.4 2.4 Rec Gross 80,112,450 85,876,021 90,169,822 94,678,313 Dev Gross 75,300,000 156,166,721 163,975,057 172,173,810 Finance and Economic Sub-Total 1,946,801,997 2,069,991,985 2,173,491,584 2,282,166,163 21.16 20.6 20.6 20.6 Planning Rec Gross 1,047,888,813 1,064,603,320 1,117,833,486 1,173,725,160 Dev Gross 898,913,184 1,005,388,665 1,055,658,098 1,108,441,003 Governor's Office Sub-Total 363,539,588 397,625,827 417,507,118 438,382,474 3.95 4.0 4.0 4.0 Rec Gross 358,539,588 393,125,827 412,782,118 433,421,224 Dev Gross 5,000,000 4,500,000 4,725,000 4,961,250 Deputy Governor Sub-Total 43,080,642 47,566,720 49,945,056 52,442,309 0.47 0.5 0.5 0.5 Rec Gross 39,910,642 44,409,642 46,630,124 48,961,630 Dev Gross 3,170,000 3,157,078 3,314,932 3,480,678 County Public Service Sub-Total 49,603,947 87,848,591 92,241,021 96,853,072 0.54 0.9 0.9 0.9 Board Rec Gross 49,603,947 72,848,591 76,491,021 80,315,572 Dev Gross 0 15,000,000 15,750,000 16,537,500 County Assembly Sub-Total 898,405,023 738,405,023 775,325,274 814,091,538 9.76 7.4 7.4 7.4 Rec Gross 838,405,023 738,405,023 775,325,274 814,091,538 Dev Gross 60,000,000 0 - - Total Sub-Total 9,201,083,407 10,028,151,931 10,529,559,528 11,056,037,504 100.00 100.0 100.0 100.0 Rec Gross 5,911,562,722 6,537,949,377 6,864,846,846 7,208,089,188 Dev Gross 3,289,520,685 3,490,202,554 3,664,712,682 3,847,948,316 33 Recurrent Sector Ceilings for MTEF Period 2017/18-2019/20 CFSP Ceiling 2017/18 Sector Description Estimates Projections % Share of Total Recurrent Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Agriculture, Livestock, Gross 402,971,672 435,956,836 457,754,678 480,642,412 6.82 6.7 6.7 6.7 Fisheries, Irrigation and AIA 2,905,595 22,905,595 24,050,875 25,253,418 Cooperatives Net 380,066,077 413,051,241 433,703,803 455,388,993 Salaries 278,109,337 292,088,906 306,693,351 322,028,019 Other 124,862,335 143,867,930 151,061,327 158,614,393 recurrent Environment, Natural Gross 63,298,812 102,299,157 107,414,115 112,784,821 1.07 1.6 1.6 1.6 Resources, Water and AIA 2,200,000 2,200,000 2,310,000 2,425,500 Tourism Net 61,098,812 100,099,157 105,104,115 110,359,321 Salaries 41,327,907 56,275,922 59,089,718 62,044,204 Other 21,970,905 46,023,235 48,324,397 50,740,617 recurrent Education, Youth and Gross 355,650,428 710,501,038 746,026,090 783,327,394 6.02 10.9 10.9 10.9 Sports AIA 640,090 640,090 672,095 705,699 Net 355,010,338 709,860,948 745,353,995 782,621,695 Salaries 313,183,988 371,794,711 390,384,447 409,903,669 Other 42,466,440 338,706,327 355,641,643 373,423,726 recurrent Health Gross 1,990,328,706 2,051,801,213 2,154,391,274 2,262,110,837 33.67 31.4 31.4 31.4 AIA 193,775,000 193,775,000 203,463,750 213,636,938 Net 1,796,553,706 1,858,026,213 1,950,927,524 2,048,473,900 Salaries 1,439,638,804 1,586,121,502 1,665,427,577 1,748,698,956 Other 550,689,902 465,679,711 488,963,697 513,411,881 recurrent Public Administration Gross 400,566,387 528,387,656 554,807,039 582,547,391 6.78 8.1 8.1 8.1 AIA - - Net 400,566,387 528,387,656 554,807,039 582,547,391 Salaries 194,043,003 233,838,176 245,530,085 257,806,589 34 Sector Description Estimates Projections % Share of Total Recurrent Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Other 206,523,384 294,549,480 309,276,954 324,740,802 recurrent Roads, Transport, Gross 115,144,388 121,752,144 127,839,751 134,231,739 1.95 1.9 1.9 1.9 Infrastructure and Public AIA - - Works Net 115,144,388 121,752,144 127,839,751 134,231,739 Salaries 56,871,618 83,426,928 87,598,274 91,978,188 Other 58,272,770 38,325,216 40,241,477 42,253,551 recurrent Trade, Energy and Gross 60,941,896 58,197,174 61,107,033 64,162,384 1.03 0.9 0.9 0.9 Industrialization AIA 6,561,653 850,000 892,500 937,125 Net 54,380,243 57,347,174 60,214,533 63,225,259 Salaries 22,048,275 23,369,265 24,537,728 25,764,615 Other 38,893,621 34,827,909 36,569,304 38,397,770 recurrent Lands, Urban/Physical Gross 72,181,326 95,295,066 100,059,819 105,062,810 1.22 1.5 1.5 1.5 Planning, AIA - 5,711,653 5,997,236 6,297,097 Net 72,181,326 89,583,413 94,062,584 98,765,713 Salaries 32,420,638 31,695,964 33,280,762 34,944,800 Other 39,760,688 63,599,102 66,779,057 70,118,010 recurrent Housing and Sanitation Gross 36,018,644 34,490,670 36,215,204 38,025,964 0.61 0.5 0.5 0.5 AIA 6,146,217 6,146,217 6,453,528 6,776,204 Net 29,872,427 28,344,453 29,761,676 31,249,759 Salaries 11,627,410 13,729,977 14,416,476 15,137,300 Other 24,391,234 20,760,693 21,798,728 22,888,664 recurrent Gender and Culture Gross 80,112,450 85,876,021 90,169,822 94,678,313 1.36 1.3 1.3 1.3 AIA - - Net 80,112,450 85,876,021 90,169,822 94,678,313 35 Sector Description Estimates Projections % Share of Total Recurrent Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Salaries 36,445,868 38,268,161 40,181,569 42,190,648 Other 43,666,582 47,607,860 49,988,253 52,487,666 recurrent Finance and Economic Gross 1,047,888,813 1,064,603,320 1,117,833,486 1,173,725,160 17.73 16.3 16.3 16.3 Planning AIA - - Net 1,047,888,813 1,064,603,320 1,117,833,486 1,173,725,160 Salaries 404,703,462 441,234,502 463,296,227 486,461,038 Other 643,185,351 623,368,818 654,537,259 687,264,122 recurrent Governor's Office Gross 398,450,230 437,535,469 459,412,242 482,382,855 6.74 6.7 6.7 6.7 AIA - - Net 398,450,230 437,535,469 459,412,242 482,382,855 Salaries 240,620,750 245,520,164 257,796,172 270,685,981 Other 157,829,480 192,015,305 201,616,070 211,696,874 recurrent County Public Service Gross 49,603,947 72,848,591 76,491,021 80,315,572 0.84 1.1 1.1 1.1 Board AIA - - Net 49,603,947 72,848,591 76,491,021 80,315,572 Salaries 8,584,924 15,320,761 16,086,799 16,891,139 Other 41,019,023 57,527,830 66,671,202 70,004,762 recurrent County Assembly Gross 838,405,023 738,405,023 775,325,274 814,091,538 14.18 11.3 11.3 11.3 AIA - - Net 838,405,023 738,405,023 775,325,274 814,091,538 Salaries 372,969,113 400,517,797 420,543,687 441,570,871 Other 465,435,910 337,887,226 354,781,587 372,520,667 recurrent Total Gross 5,911,562,722 6,537,949,377 6,864,846,846 7,208,089,188 100.00 100.0 100.0 100.0 AIA 212,228,555 232,228,555 243,839,983 256,031,982 36 Sector Description Estimates Projections % Share of Total Recurrent Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Net 5,679,334,167 6,305,720,822 6,621,006,863 6,952,057,206 Salaries 3,452,595,097 3,833,202,736 4,024,862,873 4,226,106,016 Other 2,458,967,625 2,704,746,641 2,839,983,973 2,981,983,172 recurrent 37 Development Sector Ceilings for MTEF Period 2017/18-2019/20 CFSP Ceiling 2017/18 Sector Description Estimates Projections % Share of Total Development Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 Agriculture, Livestock, Gross 388,125,078 375,479,617 394,253,598 413,966,278 11.80 10.8 10.8 10.8 Fisheries, Irrigation and Grants - - Cooperatives Environment, Natural Gross 256,670,924 392,676,667 412,310,500 432,926,025 7.80 11.3 11.3 11.3 Resources, Water and Grants - - Tourism Education, Youth and Gross 319,000,744 47,066,000 49,419,300 51,890,265 9.70 1.3 1.3 1.3 Sports Grants - - Health Gross 209,082,713 209,019,626 219,470,607 230,444,138 6.36 6.0 6.0 6.0 Grants 107,375,000 - - Public Administration Gross 50,682,792 104,473,265 109,696,928 115,181,775 1.54 3.0 3.0 3.0 Grants - - Roads, Transport, Gross 661,389,405 727,813,716 764,204,402 802,414,622 20.11 20.9 20.9 20.9 Infrastructure and Public Grants 97,234,726 - - Works Trade, Lands, Gross 300,920,755 378,240,264 397,152,277 417,009,891 9.15 10.8 10.8 10.8 Urban/Physical Planning, Grants - - Energy and Industrialization Housing and Sanitation Gross 61,265,090 71,220,935 74,781,982 78,521,081 1.86 2.0 2.0 2.0 Grants - - Gender and Culture Gross 75,300,000 156,166,721 163,975,057 172,173,810 2.29 4.5 4.5 4.5 Grants - - Finance and Economic Gross 898,913,184 1,005,388,665 1,055,658,098 1,108,441,003 27.33 28.8 28.8 28.8 Planning Grants - - Governor's Office Gross 8,170,000 7,657,078 8,039,932 8,441,928 0.25 0.2 0.2 0.2 Grants - - County Public Service Gross - 15,000,000 15,750,000 16,537,500 - 0.4 0.4 0.4 Board Grants - - 38 Sector Description Estimates Projections % Share of Total Development Budget 2016/17 2017/18 2018/19 2019/20 2016/17 2017/18 2018/19 2019/20 County Assembly Gross 60,000,000 - - - 1.82 0.0 0.0 0.0 Grants - - Total Gross 3,289,520,685 3,490,202,554 3,664,712,682 3,847,948,316 100.00 100.00 100.00 100.00 Grants 204,609,726 - - - 39 Recurrent Vote, Programme ,Sub-Programmes Printed Requirement Allocation Projected Estimates s Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 AGRICULTURE, LIVESTOCK, FISHERIES AND COOPERATIVE DEVELOPMENT RECURRENT Agricultural planning and 23,825,000 27,181,818 coordination (Policy & legal frame 23,541,378 24,718,447 25,954,369 work, planning and consultative meetings) Compensation to employees 278,109,337 330,000,000 292,088,906 327,535,851 343,912,644 Administrative services (Fuel, 33,760,738 123,772,033 Maintenance furniture, uniforms etc) 45,092,423 47,347,044 49,714,396 and staff Training, insurance costs Agricultural Extension, Training 36,533,500 54,787,823 services and support to agricultural 41,915,129 44,010,885 46,211,430 institutions Cooperative development and - 33,219,100 10,000,000 10,500,000 11,025,000 management Society Statutory Audits - 7,718,000 1,000,000 1,050,000 1,102,500 Sub-county administrative costs 30,743,097 67,000,000 30,319,000 31,834,950 33,426,698 TOTAL 402,971,672 643,678,774 443,956,836 486,997,177 511,347,037 EDUCATION, YOUTH AND SPORTS Salaries 313,183,988 934,461,769 371,794,711 708,776,996 744,215,846 Gratuity 203,231,000 Planning 3,000,000 9,712,312.50 6,100,975 6,406,023 6,726,324 Support services 15,000,000 25,650,229 25,650,229 26,932,740 28,279,377 Monitoring and evaluation 1,493,840 12,677,406 3,000,000 3,150,000 3,307,500 Subtotal 332,677,828 982,501,718 609,776,915 745,265,759 782,529,047 Promotion of Vocational education 0 10,000,000 10,000,000 and training 10,500,000 11,025,000 Promotion of Early childhood 0 10,784,118 10,000,000 development education 10,500,000 11,025,000 4,000,000 10,392,059 Quality assurance and standards 6,200,000 6,510,000 6,835,500 Institutional capacity building and 7,196,029 4,646,825 development 2,200,000 4,879,166 5,123,125 Subtotal 6,200,000 38,372,208.6 30,846,825 32,389,166 34,008,625 Facilitation of accessibility to credit 0 1,200,000 0 0 0 facilities Facilitation of Formation of youth 0 1,100,000 0 0 0 SACCOs Tree for Jobs Programme 0 3,300,000 0 0 0 Capacity building and training 0 10,800,000 6,000,000 6,300,000 6,615,000 Implement Access to Government 0 1,500,000 0 0 0 Procurement Opportunity 40 Vote, Programme ,Sub-Programmes Printed Requirement Allocation Projected Estimates s Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Mark National and International 0 7,100,000 Youth Week 3,000,000 3,150,000 3,307,500 VTC co curricular activity 0 12,000,000 6,000,000 6,300,000 6,615,000 Sub total 0 37,000,000 15,000,000 15,750,000 16,537,500 Sports development and recreational activities Organization of sports activities 16,626,600 28,750,000 14,003,375 10,500,000 11,0250,000 Subtotal 16,626,600 28,750,000 14,003,375 10,500,000 11,0250,000 TOTAL RECURRENT 355,504,428 1,086,623,926 669,627,115 703,108,471 738,263,894 HEALTH Basic salary &Allowances 1,439,638,80 1,561,420,69 1,586,121,50 1,665,427,57 1,748,698,95 4 0 2 7 6 Administration cost 167,055,062 306,971,300 202,926,085 213,072,389 223,726,009 Chemicals and industrial gases 4,110,000 20,000,000 4,000,000 4,200,000 4,410,000 Laboratory materials , supplies and 46,396,240 168,500,000 36,453,626 38,276,307 40,190,123 small equip HIV AIDS awareness 22,500,000 23,625,000 5,000,000 5,250,000 5,512,500 Dressings and non-pharmaceutical 60,994,080 150,000,000 100,000,000 105,000,000 110,250,000 medical items Medical Drugs 177,101,520 208,760,000 135,019,626 141,770,607 148,859,138 Fungicides, insecticides and sprays. 13,984,000 13,984,000 10,000,000 10,500,000 11,025,000 Food and Rations 22,110,000 25,000,000 20,000,000 21,000,000 22,050,000 Purchase of Uniforms and clothing- 700,000 1,000,000 800,000 840,000 882,000 staff Purchase of Uniforms and clothing- 2,369,000 1,000,000 1,500,000 1,575,000 1,653,750 patients. Purchase of bedding and linen 26,250,000 10,000,000 5,000,000 5,250,000 5,512,500 Purchase of X-ray supplies 7,120,000 14,500,000 10,000,000 10,500,000 11,025,000 Total 1,990,328,706 2,504,760,990 2,116,820,839 2,222,661,881 2,333,794,975 Public Administration Employee emoluments 184,802,860 263,461,436 233,838,176 268,181,323 281,590,389 Administrative support services 86,899,999 105,447,849 105,447,849 110,720,241 116,256,254 Contracted Guards 41,463,528 74,400,000 74,400,000 78,120,000 82,026,000 Sub Total 313,166,387 443,309,285 413,686,025 457,021,564 479,872,643 Office of county secretary - - Employee emoluments - - Administrative support services 54,400,000 69,920,000 57,190,000 61,320,000 64,386,000 Sub- Total 54,400,000 69,920,000 57,190,000 61,320,000 64,386,000 Sub County Administration support 33,000,000 83,640,000 37,000,000 38,850,000 40,792,500 activities Sub County Administration Total 33,000,000 83,640,000 37,000,000 38,850,000 40,792,500 ROADS, TRANSPORT, INFRASTRUCTURE AND PUBLIC WORKS Training and Development 6,327,355 12,816,000 12,816,000 13,456,800 14,129,640 Personnel Emoluments 58,025,665 8 3 ,426,928 83,426,928 87,598,274 91,978,188 Provision of Utilities 50,791,368 2 9 , 4 12,024 25,509,216 21,012,625 22,063,256 41 Vote, Programme ,Sub-Programmes Printed Requirement Allocation Projected Estimates s Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Totals 115,144,388 125,654,952 121,752,144 127,067,700 128,171,085 TRADE, ENERGY & INDUSTRIALIZATION Planning 2,183,940 19,800,000 1,020,000. 1,071,000. 1,124,550. 00 00 00 Formulation of policies, bills and Legal 8,115,097 67,067,128 5,773,311.60 6,061,977.20 notices 5,498,392.00 Salaries and Emoluments 22,980,639 26,400,000 23,369,265 37,530,694.4 39,407,229.2 8 0 Staff Training and Development 6,421,837 9,061,970 2,270,100 2,383,605 2,502,785.25 General administration 18,872,698 62,208,519 26,039,417 26,123,093 27,429,247 TOTAL 58,574,217 166,717,617 58,197,174 88,027,615 92,428,996 LANDS, URBAN/PHYSICAL PLANNING Planning 2,779,560 5,200,000 1,931,146.00 2,027,703.90 2,129,089.09 Policy formulation 10,328,306 35,358,162 16,492,148.2 17,316,755.6 7,108,097 1 2 Salaries and Emoluments 29,248,086 33,600,000 40,781,963.2 42,821,061,4 31,695,964 5 0 Staff Training and Development 8,173,247 11,533,417 8,581,909 9,011,004.45 9,461,554.67 General administration 4,779,317 53,872,785 22,026,847.5 23,128,189.8 20,977,950 0 8 Total 74,549,004 212,186,057 70,295,066 90,339,667 52,035,589 HOUSING AND SANITATION Administration Services 13,826,363 4,294,000 2,279,737 18,414,572.4 19,335,301.0 2 Salaries 17,000,000 13,729,977 14,416,475 15,137,299 Research and Development 19,504,448 51,243,161 15,572,956 16,876,603.8 17,720,433.9 9 Human Resource Management 2,687,833 10,251,599 2,000,000 2,625,000 2,756,250 Community Led Total Sanitation(CLTs 960,000 5,360,000 908,000 953,400 1,001,070 &WASH), School health programme(provision of wash hand facilities to ECD’S) TOTAL RECURRENT 36,018,644 86,928,198 34,490,670 38,869,576 40,813,055 ENVIRONMENT, NATURAL RESOURCES, WATER AND TOURISM Tourism and Environment Personal emolument 11,852,857 32,196,752 20,040,159 25,200,000 26,460,000 Research and development - 6,000,000 2,000,000 2,100,000 2,205,000 Administration Costs 10,828,500 34,800,000 13,951,235 14,365,425 15,083,696 Total 22,681,357 72,996,752 35,991,394 41,665,425 43,748,696 Water and Natural Resource Salaries 31,749,050 84,585,023 38,203,628 33,336,503 35,003,328 Research and development - 5,000,000 0 1,050,000 1,102,500 Administration Costs 8,918,405 53,300,000 28,104135 13,511,825 14,187,417 Total 40,667,455 142,885,023 47,898,328 50,293,244 GENDER AND CULTURE Personnel emolument 28,936,280 40,382,891 38,268,161 40,181,569 42,190,647 42 Vote, Programme ,Sub-Programmes Printed Requirement Allocation Projected Estimates s Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Administration, Planning and Support 51,176,170 109,765,644 47,607,860 52,336,547 54,953,374 services TOTAL 80,112,450 150,148,535 85,876,021 92,518,116 97,144,021 FINANCE AND ECONOMIC PLANNING Staff salaries 438,513,609 482,364,970 441,234,502 488,530,985 512,957,535 5,374,484 10,000,000 8,270,963 8,684,511 9,118,737 Gratuity and Honoraria Administration services 184,404,639 208,757,035 208,757,035 219,194,887 230,154,631 Sub-county planning units 15,739,192 17,313,111 4,800,000 5,040,000 5,292,000 administration Costs County Staff development and 43,465,000 47,311,500 39,000,000 40,950,000 42,997,500 training Participatory Monitoring and 8,000,000 18,800,000 12,000,000 12,600,000 13,230,000 Evaluation Public participation and formulation 50,082,136 45,090,350 30,082,136 31,586,243 33,165,555 of the budget Budget tracking 5,000,000 5,500,000 5,000,000 5,250,000 5,512,500 Supply for credit 117,445,503 109,190,053 100,056,147 117,600,000 123,480,000 Conducting quarterly risk assessment 5,000,000 6,000,000 5,775,000 6,063,750 6,366,938 in MDAs Mapping revenue sources - 20,000,000 20,000,000 21,000,000 22,050,000 Maintenance of computer, software 62,864,250 69,150,675 40,000,000 42,000,000 44,100,000 and Networks Emergency Fund 100,000,000 110,000,000 100,000,000 105,000,000 110,250,000 Coordination of Development 5,000,000 5,500,000 5,000,000 5,250,000 5,512,500 Planning. Documentation and information 2,000,000 2,200,000 2,000,000 2,100,000 2,205,000 centers. Social and economic intelligence 5,000,000 5,500,000 5,000,000 5,250,000 5,512,500 reporting.- Statistical surveys Total 1,047,888,813 1,162,677,694 1,026,975,783 1,116,100,376 1,171,905,396 GOVERNOR’S OFFICE Personnel Emoluments 240,620,750 260,250,000 245,520,164 257,796,172 270,685,981 Administrative support services 107,311,202 184,219,228 131,931,038 149,171,189 156,629,748 County Executive committee Affairs 4,784,136 27,192,500 4,296,000 4,510,800 4,736,340 County strategic and service delivery 10,823,500 20,200,000 11,378,625 11,947,556 12,544,934 Total 363,539,588 491,861,728 393,125,827 423,425,717 444,597,003 Deputy Governor Office Administrative costs 36,612,142 51,920,000 41,002,564 47,156,176 49,513,985 Research 3,170,000 3,800,000 3,407,078 3,577,432 3,756,303 Total 39,782,142 55,570,000 44,409,642 50,733,606 53,270,286 COUNTY PUBLIC SERVICE BOARD Staff salaries 7,366,551 29,277,636 15,320,761 16,086,799 16,891,139 Board Administration services 26,239,078 41,406,750 26,518,422 30,170,467 31,678,990 Establishment and Management of 5,325,000 15,435,000 5,566,080 5,844,377 6,136,595 Consultancy services 43 Vote, Programme ,Sub-Programmes Printed Requirement Allocation Projected Estimates s Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Human Resource Management & 1,500,000 8,000,000 6,185,300 6,494,565 6,819,293 Development Ethics, Governance, Compliance, 5,042,800 24,675,000 7,185,300 7,544,565 7,921,793 Quality Assurance and National Values Purchase of motor vehicles - 10,000,000 5,936,584. 6,233,413 6,545,084 Government Pension and Gratuity 4,130,518 10,696,166 6,136,144 6,442,951 6,765,099 TOTAL 49,603,947 139,490,552 72,848,591 78,817,137 82,757,994 COUNTY ASSEMBLY Staff salaries 364,107,088 400,517,797 400,517,797 440,569,577 484,626,535 Administration Costs 250,517,410 170,517,234 170,356,156 187,391,771 206,130,948 Legislation 19,700,000 19,670,000 19,700,000 21,670,000 23,837,000 Representation 70,128,000 14,140,800 14,000,000 15,400,000 16,940,000 Oversight 133,952,525 133,559,192 150,675,378 158,209,147 166,119,604 Total 838,405,023 738,405,023 755,249,331 823,240,495 897,654,087 Development Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 AGRICULTURE, FISHERIES, COOPERATIVE DEVELOPMENT Construction of Office blocks(H/Qs) - 40,000,000 - - - Agriculture Sub Sector Crop Development And Management Services 45 Green Houses for youths and 15,000,000 22,500,000 0 0 0 women groups. Puchase and installation of tomato 14,200,000 - 0 0 processing plants/equipment 20,000 Tissue Culture Banana 4,150,500 2,300,000 0 0 0 Materials. Establish a Banana processing plant 24,600,000 - 0 0 10MT of High Value Crop seeds 2,000,000 2,000,000 - 0 0 (Sorghum, Nerica rice and horticulture seeds). 17,360 bags (10kgs) of certified 39,600,000 39,600,000 38,192,000 40,101,600 42,106,680 maize seed. 50549 bags (50kgs) of fertilizer 177,501,500 179,500,000 149,118,331 156,574,248 164,402,960 Facilitate establishment of 5 tea 32,400,000 3,380,000 3,380,000 3,549,000 3,726,450 nurseries. 1,000 bags of certified Irish potato 2,200,000 0 0 0 seed for bulking Construction of Webuye west sub 1,500,000 - - 0 0 county office block 44 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Construction of Septic tanks and 750,000 - - 0 0 installation of water reservoir at Sirisia Sub-county offices Completion of Mt Elgon Agricultural 3,500,000 - - 0 0 Sub-county Office Completion of Board room, septic 4,500,000 - - 0 0 tank, at Kimilili Sub-County Agricultural Office Renovation of Kanduyi sub county 1,000,000 - - 0 0 Agriculture Office 0 0 Agricultural Institutional 0 0 Development Mabanga ATC 0 0 Rehabilitation of residential/non- 7,654,781 12,000,000 6,148,500 6,455,925 6,778,721 residential buildings(Dining Hall, Conference Hall, 2 Class rooms, Office block) Construction of a water tower 2,000,000 - - 0 0 Construction of an ablution block 3,000,000 - 0 0 Installation of solar heaters 2,000,000 9,600,000 2,400,000 2,520,000 2,646,000 Installation of solar security lights 3,200,000 3,200,000 3,200,000 3,360,000 3,528,000 Construction of Periphery Fence 17,000,000 7,043,111 7,395,267 7,765,030 Agriculture Mechanization Centre 0 0 (AMC) Purchase of Tractors 18,000,000 54,000,000 24,500,000 25,725,000 27,011,250 Disc ploughs 1,500,000 3,000,000 1,500,000 1,575,000 1,653,750 Disc harrows 1,000,000 3,000,000 2,000,000 2,100,000 2,205,000 Seed planters 713,098 2,000,000 1,500,000 1,575,000 1,653,750 Seed drill - - - 0 0 Row cultivator 600,000 1,500,000 700,000 735,000 771,750 Maize shellers 400,000 1,600,000 800,000 840,000 882,000 Trailers - 1,000,000 - 0 0 Feed chopper - 450,000 450,000 472,500 496,125 Boom sprayer - 500,000 - 0 0 Construction of Shade for 2,000,000 2,000,000 2,100,000 2,205,000 machineries Co-Operatives Development and - 0 0 Management Support for Weighing bridges for 18,000,000 18,000,000 18,900,000 19,845,000 coffee millers Coffee nurseries 3,287,919 3,000,000 3,000,000 3,150,000 3,307,500 45 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 2 coffee mill warehouse - 16,000,000 8,000,000 8,400,000 8,820,000 Coffee drying tables - 1,500,000 1,500,000 1,575,000 1,653,750 3 Pasteurizers - 4,500,000 2,400,000 2,520,000 2,646,000 Fertilizer for coffee farmers - 51,000,000 - 0 0 3 motor bikes for transportation of - 1,200,000 1,200,000 milk 1,260,000 1,323,000 Construction of Bumula DFCS Milk 6,000,000 5,487,671 5,762,055 6,050,157 Cooler House Irrigation Development and 0 0 Management 5 drip irrigation kits 400,000 4,000,000 2,000,000 2,100,000 2,205,000 Purchase of Survey Equipment 2,610,000 2,610,000 2,740,500 2,877,525 Construction of civil works for 20,200,000 - 0 0 Kuywa Irrigation Project Rehabilitation of 2 dams 5,180,409 15,801,200 0 0 0 Feasibility studies and designs 3,000,000 993,000 1,042,650 1,094,783 Livestock development and 0 0 management Baseline survey dairy value chain(B) 5,436,350 - 0 0 Construction of structures for Dairy 5,000,000 - 0 0 multiplication centre Breeding stock for multiplication 36,000,000 centre 17,375,000 18,243,750 19,155,938 Purchase of dairy goats 3,375,000 0 0 0 Establishment of poultry Model 6,750,000 4,239,281 4,451,245 4,673,807 farms Purchase 9500 chicken breeding 7,600,000 5,700,000 5,985,000 6,284,250 stock Establishment of dairy model farms 9,000,000 3,220,232 3,381,244 3,550,306 Establishment of Apiaries(model 1,350,000 1,350,000 1,417,500 1,488,375 farms) Construction of honey refinery 3,500,000 - 0 0 Establish a dairy multiplication 10,174,500 - - 0 0 centre Purchase of 135 Dairy Goats 3,375,000 - - 0 0 Construction of Bukembe milk 6,000,000 - - 0 0 cooler house Completion of Kamukuywa milk 2,495,854 - - 0 0 cooler house Fisheries Development and 0 0 Management Procure Tilapia and catfish 3,200,000 17,500,000 2,000,000 2,100,000 2,205,000 fingerlings Procure fish feeds 13,000,000 4,080,000 4,284,000 4,498,200 46 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Procure pond liners 1,890,000 9,000,000 1,516,696 1,592,531 1,672,157 Gill and seine nets 400,000 2,750,000 1,795,000 1,884,750 1,978,988 Raw materials for feed mills 600,000 0 0 Construct fish market stalls 6,300,000 - 0 0 Procure cages 2,000,000 1,000,000 1,050,000 1,102,500 Procure boats 680,000 0 0 Construction of demonstration 4,194,662 2,850,000 2,850,000 2,992,500 3,142,125 ponds Procure trout brood stock 500,000 - 0 0 Agricultural Institutional 0 0 Development - Chwele Fish Farm Construction of Re circulating 7,000,000 - - 0 0 hatchery Equipping of laboratory 1,581,000 1,250,000 1,312,500 1,378,125 Construction of feed store 1,500,000 - - 0 0 Construction of training hall 5,030,000 3,030,000 3,181,500 3,340,575 Procure feed mill - 3,025,000 3,000,000 3,150,000 3,307,500 Landscaping and fencing - 3,500,000 0 0 Construction of catering facility and - 8,100,000 1,900,000 1,995,000 2,094,750 abolution block Construction of 2 unit staff houses - 7,050,000 - 0 0 Veterinary Extension Services - 0 0 Development and Management Construction and operationalization 10,000,000 10,000,000 - 0 0 of Liquid Nitrogen Deport for A.I Upgrading of Cold 5,057,674 - - 0 0 Chains/Installation of Solar Systems for Vaccines Rehabilitation of Kimilili 5,000,000 - - 0 0 slaughterhouse Extension of Chwele 50,000,000 14,572,194 15,300,804 16,065,844 slaughterhouse Rehabilitation of Bungoma, 9,925,000 2,159,636 2,267,618 2,380,999 Webuye slaughter houses Construction of diagnostic lab 40,000,000 0 0 0 Completion of tannery treatment 28,000,000 - - - plant Totals 388,125,897 890,343,550 359,160,652 377,118,685 395,974,619 EDUCATION, YOUTH AND SPORTS Education Management and Development Construction of workshops 30,500,744 105,800,000 0 0 0 /classrooms and hostels School feeding/ milk program of 0 80,500,000 0 0 0 47 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 ECDE classrooms Integration of ICT in 9 selected VTCs 0 49,500,000 0 0 0 Tuition support grants for VTC 50,000,000 96,000,000 50,000,000 52,500,000 55,125,000 Education bursary and support 180, 000,000 180,000,000 180,000,000 189,000,000 198,450,000 services Capitation for ECDE schools 10,500,000 55,500,000 8,000,000 8,925,000 9,371,250 Microfinance youth programme 28,000,000 51,429,996.8 0 0 0 Construction of youth - 17,000,000 0 0 0 empowerment centre Equipping youth empowerment - 108,500,000 0 0 0 centers Subtotal 28,000,000 176,929,996.8 0 0 0 Sports development and recreational activities Construction of phase II high 20,000,000 50,000,000 0 0 0 altitude centre Development of sports stadia in 8 0 40,000,000 0 0 0 sub counties Construction of phase II at Masinde 0 60,000,000 0 0 Muliro Stadium Total 319,000,744 894,229,997 238,000,000 249,900,000 262,395,000 HEALTH Construction of Non Residential 137,770,820 350,000,000 85,000,000 89,250,000 93,712,500 Buildings (Office, schools, and Hospitals) Refurbishment of Non Residential 46,202,732 100,000,000 30,000,000 36,750,000 38,587,500 Buildings. Purchase of Generators 5,000,000 15,000,000 9,000,000 9,450,000 9,922,500 Purchase of Medical and Dental 20,109,161 120,500,000 5,000,000 5,250,000 5,512,500 Equipment. Purchase of Ambulances 0 8,000,000 0 0 0 Total 209,082,713 593,500,000 129,000,000 135,450,000 142,222,500 Public Administration Construction of ward admin offices 35,000,000 47,477,600 22,617,586 23,748,465 24,935,889 Sub- Total 35,000,000 44,366,551 22,617,586 23,748,465 24,935,889 County Secretary Data centre 5,000,000 7,000,000 6,000,000 6,300,000 6,615,000 Purchase of ICT Networking and 10,682,792 11,216,932 11,216,932 11,777,779 12,366,668 Communications Equipment Sub Total 15,682,792 16,466,932 17,216,932 18,077,779 18,981,668 ROADS, TRANSPORT, INFRASTRUCTURE AND PUBLIC WORKS Urban Roads 321,213,337 410,000,000 288,750,000 303,187,500 Sub County Roads 188,876,703 802,500,000 532,412,619 305,550,000 320,827,500 Ward Roads 61,299,365 75,855,000 75,294,949 58,595,250 61,525,013 Bridges and Box Culverts 90,000,000 99,000,000 92,400,000 97,020,000 Building Standards - 20,000,000 15,750,000 16,537,500 Puchase of plant and machinery 40,000,000 33,000,000 Acquisition of soil deposits - 61,485,000 5,000,000 27,981,152 29,380,209 TOTALS 661,389,405 1,508,790,000 645,707,568 789,026,402 828,477,722 48 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 TRADE, ENERGY & INDUSTRIALIZATION Business development services 33,280,000 48,000,000 47,874,638 50,268,370 52,781,788 Market development and 26,547,000 31,000,000 30,760,535 63,798,562 66,988,490 operationalisation Installation of solar lights 24,068,283 27,000,000 26,250,000 27,562,500 28,940,625 Market Services 16,015,000 34,000,000 30,000,000 Adoption of green energy New 20,000,000 0 0 0 Connectivity to electricity New 9,000,000 0 0 0 Cottage industries and value New 2,000,000 0 0 0 addition Micro-Small Industry (MSMIs) New 2,000,000 1,702,614 1,787,745 1,877,132 173,000,000 136,587,787 143,417,177 150,588,035 LANDS, URBAN/ PHYSICAL PLANNING, Government land identified and 4,590,000 5,100,000 5,060,475 5,313,499 5,579,174 surveyed Modern County Survey Office 3,215,000 14,000,000 12,000,000 12,600,000 13230,000 Purchase of Survey Equipment 3,090,000 10,000,000 8,200,000 8610,000 10,701,664 Quality control Checks 1,250,000 2,000,000 1,300,000 1,447,031 1,519,383 Land Purchase 10,540,000 34,000,000 15,763,184 16,551,343 17,378,910 Preparation of valuation rolls 25,960,042 19,000,000 10,000,000 10,500,000 11,025,000 Construction and rehabilitation of 0 7,000,000 6,488,000 6,812,400 7,153,020 Bus park Physical Development Plans for 9,069,958 37,000,000 32,517,818 34,143,708 35,850,894 urban Centers Installation of street Lights 48,257,979 63,000,000 56,334,600 59,151,330 62,108,897 Designs of storm water drainage 6,240,000 20,000,000 17,379,600 18,248,580 19,161,009 and maintenance system for Webuye and Kimilili. Construction and rehabilitation of 17,565,000 30,000,000 20,000,000 21,000,000 22,050,000 Auction rings Total Development for Lands 134,122,979 241,100,000 185,043,677 194,377,891 205,757,951 HOUSING AND SANITATION Sanitation Management and 0 600,000 169,135 177,591.75 186,471.3375 Development ,feasibility studies and Engineering designs Waste Management 1,080,672.50 10,500,000 5,000,000 5,250,000 5,512,500 (liquid waste) Public Amenities and 22,500,000 84,000,000 29,400,000 30,870,000 32,413,500 Sanitation(construction of modern sanitation blocks) Housing Development and 36,000,000 148,800,000 39,700,000 41,685,000 43,769,250 Management(construction of 12 units 3 storey 2 bedroom houses), Estate Management( Major renovation and refurbishment of residential houses, 12 units) Research and Development ( 400,000 4,800,000 1,350,000 1,417,500 1,488,375 49 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 valuation of house rent for 400 county residential houses to determine the market rate) Pre-feasibility studies, engineering designs Security Fencing 324,418 1,000,000 601,800 631,890 663,484.5 Construction and Equipping of ABT New 12,700,000 0 0 0 Centers. Construction of county headquarter New 100,000,000 0 0 0 offices Total 61,265,091 362,400,000 76,220,935 80,031,982 84,033,581 ENVIRONMENT, NATURAL RESOURCES, WATER AND TOURISM Tourism and Environment Solid waste management 21,762,060 120,000,000 100,827,234 105,868,596 111,162,025 Tourism Product Development and 11,000,000 30,000,000 0 0 0 Marketing(jumbo charge, world tourism day) Purchase of motor vehicles 0 10,000,000 5,000,000 5,250,000 5,512,500 Purchase of agricultural machinery 1,384,745 1,500,000 0 0 0 and equipment Total 34,146,805 161,500,000 105,827,234 111,118,596 116,674,525 Water and Natural Resource Other infrastructure and civil works 0 18,000,000 14,000,000 10,305,422 10,820,694 Water supplies and sewages 130,362,060 175,441,000 165,000,000 178,500,000 187,425,000 Overhaul of water supplies and 72,524,119 455,440,000 45,419,688 84,000,000 88,200,000 sewages Engineering and design plans 5,600,000 23,250,000 21,080,000 6,300,000 6,615,000 Purchase of motor vehicle and - 0 0 12,862,500 13,505,625 motorcycles Purchase of tree seedlings 14,037,940 13,000,000 0 0 Total Development 222,524,119 680,131,000 245,499,688 291,967,922 306,566,319 GENDER AND CULTURE Women empowerment fund 30,000,000 25,000,000 15,000,000 15,750,000 16,537,500 Loan to disabled persons 15,000,000 17,000,000 10,800,000 11,340,000 11,907,000 Grant to disabled persons 3,000,000 10,000,000 7,200,000 7,560,000 7,938,000 Cash transfer to elderly persons 11,300,000 10,000,000 0 0 0 Purchase of land for communal - 15,000,000 10,000,000 10,500,000 11,025,000 cultural centers Street children fund 5,000,000 6,444,097 0 0 0 Construction of phase II Sudi 11,000,000 15,000,000 0 0 0 Namachanja Construction and equipping of 0 100,000,000 30,500,000 32,025,000 33,626,250 multipurpose cultural centers TOTAL 75,300,000 183,444,097 73,500,000 77,175,000 81,033,750 FINANCE AND ECONOMIC PLANNING Community Empowerment Fund 852,000,000 937,200,000 965,388,665 970,200,000 1,018,710,000 50 Vote, Programme ,Sub- Printed Requirements Allocation Projected Programmes Estimates Estimates 2016/17 2017/18 2017/18 2018/19 2019/20 Infrastructure and civil works 46,913,184 51,604,502 40,000,000 44,248,318 46,460,734 Total 898,913,184 988,804,502 1,005,388,665 1,014,448,318 1,065,170,734 GOVERNOR’S OFFICE Prefeasibility, Feasibility and Appraisal studies 2,000,000 3,720,000 0 0 0 Research 3,000,000 5,580,000 4,500,000 0 0 Total 5,000,000 9,300,000 4,500,000 0 0 DEPUTY GOVERNOR’S OFFICE Overhaul of other infrastructure and civil works 3,170,000 3,800,000 3,157,078 0 0 Total 3,170,000 3,800,000 3,157,078 0 0 COUNTY PUBLIC SERVICE BOARD Construction of Administration 0 30,160,622 15,000,000 21,168,653 22,227,085 Block Total 0 30,160,622 15,000,000 21,168,653 22,227,085 COUNTY ASSEMBLY Construction of Committee rooms, 49,660,408 54,626,449 0 0 0 Speaker’s gallery and Public waiting lounge Installation of water reservoirs. 2,000,000 2,200,000 0 0 0 Payment of pending bills 8,339,592 - 0 0 0 Construction of Members Lounge - 10,000,000 0 0 0 Construction of storey 0 261,923,909 administration block Total 60,000,000 66,826,449 261,923,909 275,020,104 288,771,110 51