GOVERNMENT OF MAKUENI COUNTY REPUBLIC OF KENYA 2023 MAKUENI COUNTY FISCAL STRATEGY PAPER Theme “Enhancing efficiency for economic growth and community resilience” Makueni County Fiscal Strategy Paper (CFSP) 2023 To obtain copies of the document, please contact: County Executive Committee Member - Finance, Planning, Budget and Revenue County Treasury P. O. Box 78- 90300 MAKUENI, KENYA The document is also available on the internet at: www.makueni.go.ke/planning i FOREWORD The 2023 Makueni County Fiscal Strategy Paper is the first to implement the CIDP 111 2023-2027 which is being finalised. The 2023 CFSP is prepared pursuant to Public Finance Management Act, 2012 (PFMA) Section 117 and outlines the development framework for the FY 2023/24-FY 2025/26 Medium Term Expenditure Framework (MTEF) Period. The CFSP outlines the strategic priorities, programmes and development agenda for FY 2023/24. The FY 2023/24 Medium-Term Expenditure Framework will be guided by the development philosophy of Wauni wa Kwika Nesa na Ulungalu” – the desire to do good with integrity. With a rallying call for “Our people, our Priority”. The development theme for the Financial Year will be ‘enhancing efficiency for economic growth and community resilience’ and will be guided by the following principles; infrastructure development for rural and urban areas to improve access to roads, water and sanitation; strengthening cooperatives as vehicle for rural transformation; improving access to universal health coverage; building strategic partnerships for enhanced resource mobilization; automation of government services; youth empowerment and innovation; strengthening public finance management and public sector transformation for performance oriented results and decentralized government services. The FY 2023/24 revenues are projected to increase to Kshs 10,191,980,170.00 from Kshs 9,832,783,562.00 in FY 2022/23 representing a growth of 4 per cent. The budget will be funded from three main sources namely equitable share – 81.8 percent, Conditional Allocations, loans and Grants – 8.3 percent and Own Source Revenue at 9.8 percent. The government is committed to enhance its resource mobilization strategies by building strategic partnerships for development to ensure delivery of the envisaged development outcomes in the medium term. The recurrent expenditure for the FY 2023/24 is projected to be Kshs 6,866,046,086.87 an increase of 3 per cent from Kshs 6,660,769,154.00 in the printed estimates for FY 2022/23. The Development Expenditure is estimated to be Kshs 3,325,934,083.13 representing 32% of the total County Budget. To deliver the envisaged results, all Accounting Officers are encouraged to strengthen their service delivery mechanisms to ensure the services are responsive to the needs of the citizenry. Each department will also be expected to put in place mechanisms to ensure full decentralization to the sub counties and wards. Additionally Departments and entities should embrace automation for efficiency in service delivery. DAMARIS MUMO KAVOI COUNTY EXECUTIVE COMMITTEE MEMBER – FINANCE, PLANNING, BUDGET AND REVENUE ii ACKNOWLEDGEMENT The 2023 County Fiscal Strategy Paper (CFSP) has been prepared in compliance with the provisions of the Public Finance Management Act, 2012. The paper outlines the current state of the economy, provides fiscal outlook over the medium term and specifies the set strategic priorities and policy goals together with a summary of the Government spending plans, as a basis of the FY 2023/24 budget. The preparation of the 2023 CFSP was a collaborative effort among various Government Departments, Agencies and development stakeholders. We thank all the spending units, the Ministries, Government Departments and Agencies for timely provision of information and we are grateful for their inputs. We express our gratitude to the leadership of H.E the Governor, H.E the Deputy Governor, the County Secretary, the County Executive Committee Members, Chief Officers, County Directors and other county technical staff for their support and inputs. Being the County Treasury’s responsibility to oversee and ensure timely preparation and submission of the CFSP, a team from the Department of Finance and Economic Planning led by the Executive Committee Member – Finance and Socio- Economic Planning spent valuable time to ensure the successful completion of this document. Special appreciation goes to Annastacia Muendo (Director, Budget and Expenditure), John Karanja (Asst. Director, Budget), Stanlus Matheka (Ag. Director Socio Economic Planning), Amos Bitok (Senior Economist), Stephen Thiongo (Director Revenue) Richard Mwendwa (Budget Officer), Jackline Kiting’o (Budget Officer), Jeremiah Mutunga (Budget Officer), Nathan Wahome (Economist) and Jacob Kyungu (Economist). Finally, I express my sincere gratitude to Sector Working Groups (SWGs) and technical officers for their invaluable contribution and input to the document. MUTUA BONIFACE CHIEF OFFICER SOCIO - ECONOMIC PLANNING BUDGETING, REVENUE AND M&E iii EXECUTIVE SUMMARY The 2023 Makueni County Fiscal Strategy Paper is the first fiscal strategy paper to implement the 3rd generation County Integrated Development Plan 2023-2027. The CFSP outlines the development agenda for the medium term in line with the theme of building a resilient economy for sustainable development. The CFSP is prepared pursuant to provisions of PFM Act, 2012 and outlines the governments strategic priorities, current state of the economy, fiscal outlook over the medium term and expenditure limits that will form the basis of preparing the FY 2023/24 budget. The CFSP prioritises interventions on infrastructure development for rural and urban areas to improve access to roads, water and sanitation; strengthening cooperatives as vehicle for rural transformation; increasing commodity prices, improving access to universal health coverage; automation of government services; youth empowerment and innovation; strengthening public finance management and public sector transformation for performance oriented results and decentralized government services. All these are geared towards building a resilient economy for sustainable development. The 2023 CFSP prioritise on enhanced resource mobilisation to fund the Government agenda. The county will leverage on automation to ensure efficiency and enhance service delivery for results. The 2023 CFSP comprises of seven chapters with the following key highlights; Chapter One; Introduction; The CFSP is prepared pursuant to PFM Act Section 117 and contains an assessment of the current state of the economy; the financial outlook with respect to the County Government revenue, expenditures and borrowing for the next financial year and over the medium term; the proposed expenditure ceilings for the County Departments and entities; the fiscal responsibility principles and financial objectives over the medium- term. Chapter Two; National & County Economic outlook; The Kenyan economy expanded by 7 percent in 2022 and is expected to grow by 6.1 percent in 2023 reinforced by the Government’s development agenda geared towards economic turnaround and inclusive growth. The 2020 County Gross County Product (GCP) is estimated at KSh 111.071 Billion which represented 1.1 per cent of the National GDP in 2020. The county economy remains highly dependent on the agriculture sector, contributing on average 29.5 percent of the GCP. Chapter Three; County Government fiscal performance in in FY 2021/22 and FY 2022/23; The overall revenue performance for FY 2021/22 was 94 Per cent out of the total budgeted revenues of Kshs 11,544,836,717.43. The performance reduced by 1 percent compared to the 95 percent recorded in FY 2020/21. The total expenditures for the Government for the year ending 30th June 2022 was Kshs 8,607,340,676.10 against a budget of Kshs 11,544,836,717.43. This represented an overall absorption of 75 percent a reduction from 79 percent recorded in FY 2020/21. iv The overall revenue performance upto February 2023 was 39.1 percent (Kshs 4,004,672,832.65). The equitable share and Conditional allocations loans and grants amounted to Kshs 3,560,717,708.65 representing 89 percent of the total actual receipts. Own Source Revenue performed at 35.7 percent. As at February 2023, the County cumulative absorption stands at 35 percent. Chapter Four; Sector strategic priorities and envisioned outcomes for the FY 2023/24 – FY 2025/26 MTEF; The FY 2023/24 Medium-Term Expenditure Framework will guided by following objectives; enhancing universal water access in the County; increasing sustainable agriculture production, value addition and market access for targeted value chains; improving urban and rural infrastructural development for socio economic transformation; increasing industrialization and enterprise development by creating a conducive environment for investment and employment creation and enhancing access to quality and affordable health services. Chapter Five; Resource envelope for FY 2023/24 – FY 2025/26 MTEF ; The FY 2023/24 county revenues are projected to increase to Kshs 10,191,980,170.00 from Kshs 9,832,783,562.00 in FY 2022/23 representing a growth of 4 per cent. The Recurrent expenditure is projected to be Kshs 6,866,046,086.87 an increase of 3 per cent from Kshs 6,660,769,154.00 in the printed estimates for FY 2022/23. The Development Expenditure is estimated to be Kshs 3,325,934,083.13 representing 32% of the total County Budget. Chapter Six; Horizontal allocation of resources across the various departments and entities; The Personnel emoluments ceilings has been set based on actual departmental wage bill in FY 2022/23 projected to FY 2023/24 taking into consideration the mandatory annual wage increment of staff and pending gratuities payable to staff. The ceilings under the operation and Maintenance budget have been tabulated taking into consideration departmental mandates, non-discretionary items; Appropriation in Aid; and other operating costs which is based on past O&M allocations and absorption capacity. The allocation for the Development Budget has been guided by Projects phased in FY 2022/23, Strategic policy interventions, Pending bills, Ongoing projects, Appropriation in Aid and Conditional allocations, loans and Grants; Chapter Seven provides Risks, Assumptions and Mitigation Measures.; The County has identified fiscal/economic, capacity, political, legal, environment and social risks that may affect the FY 2023/24 and proposed mitigation measures to address these risks. Key risks include; inadequacy of resources, high wage bill, poor conceptualization of programmes/projects, climate change, inadequate human capacity and inadequate legal and regulatory frameworks. v TABLE OF CONTENTS FOREWORD ..................................................................................................................................... ii ACKNOWLEDGEMENT ................................................................................................................ iii EXECUTIVE SUMMARY .............................................................................................................. iv LIST OF FIGURES .......................................................................................................................... ix 1.0 INTRODUCTION ....................................................................................................................... 2 2.0 RECENT ECONOMIC DEVELOPMENTS ............................................................................... 3 2.1 National Economic Outlook ......................................................................................................... 3 2.1.1 Economic growth ............................................................................................................. 3 2.1.2 County Economic Outlook .............................................................................................. 3 2.1.3 County Fiscal Outlook ..................................................................................................... 5 3.0 COUNTY GOVERNMENT FISCAL PERFROMANCE........................................................... 6 3.1 FY 2021/22 Revenue and Expenditure Performance ................................................................... 6 3.1.1 Revenue Performance ...................................................................................................... 6 3.1.1.1 Local revenue collections ................................................................................................ 6 3.1.1.2 Revenue Streams and Trend ............................................................................................ 7 3.1.1.3 Equitable share, conditional allocations, loans and grants .............................................. 7 3.1.2 Expenditure Performance ................................................................................................ 8 3.2 FY 2022/23 Revenue and Expenditure Performance ................................................................... 9 3.2.1 Revenue Performance ...................................................................................................... 9 3.2.2 Expenditure Performance ................................................................................................ 9 3.3 Public Participation and Involvement of Stakeholders .............................................................. 11 4.0 DEVELOPMENT PRIORITIES - FY 2023/24 – 2025/26 MEDIUM TERM EXPENDITURE FRAMEWORK ............................................................................................. 12 4.1 Introduction ................................................................................................................................ 12 4.2 Key development pillars ............................................................................................................ 12 4.3 Sector priorities in the medium term ......................................................................................... 13 4.3.1 Water and sanitation Sector ........................................................................................... 13 4.3.2 Agriculture and Rural Development. ............................................................................. 13 4.3.3 Lands, Urban Development, Environment and climate change .................................... 14 4.3.4 Transport, Infrastructure , Public Works , Energy and ICT Sector ............................... 14 4.3.5 Health services sector .................................................................................................... 15 4.3.6 Social Protection, Education, Culture and Recreation Sector ....................................... 16 4.3.7 General Economic and Commercial Affairs .................................................................. 16 4.3.8 Devolution Sector .......................................................................................................... 16 5.0 RESOURCE ENVELOPE FOR THE FY 2023/24 – 2025/26 MEDIUM TERM EXPENDITURE FRAMEWORK ............................................................................................. 18 5.1 Revenue Allocation to County Governments ............................................................................ 18 5.2 FY 2023/24 County Government Resource Envelope ............................................................... 19 5.2.1 Own Source Revenue Mobilization ............................................................................... 19 5.2.2 External resource mobilization; strengthening partnerships and collaborations ........... 21 5.2.3 Conditional allocations, Loans & Grants....................................................................... 22 5.3 Expenditure Projections ............................................................................................................. 22 5.4 Overall Deficit and Financing .................................................................................................... 23 5.5 Transfers to Entities ................................................................................................................... 23 5.6 Fiscal Responsibility Principles ................................................................................................. 23 6.0 COUNTY HORIZONTAL RESOURCE ALLOCATION ....................................................... 24 6.1.1 Recurrent ceilings. ......................................................................................................... 24 6.1.2 Development Ceilings. .................................................................................................. 26 vi 7.0 RISK MITIGATION FRAMEWORK FOR FY 2023/24 – FY 2025/25 MEDIUM TERM .... 31 8.0 Annexure’s ................................................................................................................................... 1 8.1 Departmental ceilings .................................................................................................................. 1 8.1.1 FY 2023/24 – FY 2025/26 MTEF Budget Ceilings (in Millions) .................................. 1 8.1.2 FY 2023/24 – FY 2025/26 MTEF Recurrent Budget Ceilings ........................................ 2 8.1.3 FY 2023/24 – FY 2025/26 MTEF Development Budget Ceilings .................................. 3 8.1.4 FY 2023/24 – FY 2025/26 MTEF Overall Budget Ceilings ........................................... 4 8.2 MEDIUM TERM FLAGSHIPS .................................................................................................. 5 8.3 OWN SOURCE REVENUE PROJECTIONS ............................................................................ 6 8.4 KEY PERFORMANCE INDICATORS ...................................................................................... 7 vii LIST OF TABLES Table 1; Makueni Gross County Product, 2018-2020 ...................................................................... 4 Table 2; Analysis of FY 2021/22 Revenue Performance .................................................................. 6 Table 3; FY 2021/22 Annual Revenue Receipts per item ................................................................. 7 Table 4: Overall Recurrent and Development Expenditure .............................................................. 8 Table 5; Analysis of FY 2022/23 eight months Revenue Performance .............................................. 9 Table 6; FY 2022/23 Budget performance as at February 2023 ...................................................... 10 Table 7; Revenue allocation to County Governments .................................................................... 18 Table 8; Revenue allocation by category ...................................................................................... 18 Table 9: Fiscal Revenues for 2023/24-2025/26 MTEF period (Millions) ........................................ 19 Table 10: Projected Expenditures for 2022/23-2025/26 MTEF period ............................................ 22 Table 11: Personnel Emoluments Ceilings Fy 2023/24 (in Millions) .............................................. 24 Table 12; O&M non discretionary items ....................................................................................... 25 Table 13: O&M Ceilings for 2023/24 (in Millions) ....................................................................... 25 Table 14; Development Ceilings for 2023/24 (in Millions).............................................................. 27 Table 15; FY 2023/24 – FY 2025/26 MTEF Budget Ceilings........................................................ 28 Table 16; Risks and mitigation measures ...................................................................................... 31 viii LIST OF FIGURES Figure 1; Annual Local Revenue Performance for FY 2013/14 – FY 2021/22 ................................... 7 Figure 2: County Own Source Revenue FY 2013/14 - 2025/26 ...................................................... 20 Figure 3: Conditional allocations, loans & grants .......................................................................... 22 ix LIST OF ABBREVIATION and ACRONYMS ANC Antenatal Care BPS Budget Policy Statement CFSP County Fiscal Strategy Paper CHUs Community Health Units CICs Community Information Centres CIDP County Integrated Development Plan C-LIMS County Land Information Management System COVID Coronavirus disease CTTIs County Technical training Institutes ECDE Early childhood education EIA Environmental Impact Assessment GCP Gross County Product GDP Gross Domestic Product IDLO International Development Law Organization IFAS Iron Folic Acid KEBS Kenya Bureau of Standards KIRDI Kenya Industrial Research And Development Institute KNBS Kenya National Bureau of Statistics KTB Kenya Tourist Board MSME Micro, Small and Medium Enterprise MTEF Medium Term Expenditure Framework ODF Open Defecation Free OSR Own Source Revenue OVC Orphans and Vulnerable Children PFMA Public Finance Management Act, 2012 PVCAs Participatory Vulnerability Capacity Assessments PWD Persons with Disability REREC Rural Electrification and Renewable Energy Corporation RFP Request for Proposal RRI Rapid Results Inititive SDGS Sustainable Development Goals SEKEB South Eastern Kenya Economic Bloc SGBV Sexual and Gender-Based Violence x 1.0 INTRODUCTION The 2023 County Fiscal Strategy Paper is prepared pursuant to Public Finance Management Act, 2012 (PFMA) Section 117. The paper outlines the county government broad strategic priorities and policy goals for FY 2023/24 which will guide the preparation of the FY 2023/24 budget and over the medium term. The paper also outlines the financial outlook of the county government revenues and expenditures for the respective financial year and over the medium term. The County Fiscal Strategy Paper includes an assessment of the current state of the economy and financial outlook over the medium term, the financial outlook with respect to the County Government projected revenues, expenditures for the next financial year and over the medium term, proposed departmental ceilings, the fiscal responsibility principles and financial objectives over the medium term and the fiscal risk statement. The PFM Act, mandates the County Executive Committee Member to prepare and submit, to the County Assembly, the County Fiscal Strategy Paper (CFSP) by 28th February each year. The County Assembly is required to consider and adopt the CFSP with or without amendments not later than fourteen days after submission by the County Treasury. The County Treasury is required to consider recommendations made by the County Assembly while adopting the CFSP and incorporate the comments while finalizing the Budget Estimates. The paper has been aligned to the Vision 2025, CIDP 2022-2027, fourth medium term plan 2023-2027 and SDGs. The CFSP prioritizes implementation of programs and projects that will enhance growth of the local economy and towards realizing the goal for resilient economy for sustainable development. The Budget Policy Statement contains: i. an assessment of the current state of the economy; ii. the financial outlook with respect to the County Government revenue, expenditures and borrowing for the next financial year and over the medium term; iii. the proposed expenditure ceilings for the County Departments and entities iv. the fiscal responsibility principles and financial objectives over the medium-term including limits on total annual debt; and v. Statement of specific fiscal risks. The preparation of the CFSP was a consultative process that involved seeking and taking into account the views of: The Commission on Revenue Allocation; County Department, entities, Semi Autonomus Government Agencies; the public; and any other interested persons or groups. 2 | P a g e 2.0 RECENT ECONOMIC DEVELOPMENTS 2.1 National Economic Outlook The National economy recorded a 7.5 percent growth in 2021 after the dismal performance occasioned by the negative effects of COVID 19 pandemic. The growth has however been disrupted by the Russia Ukraine conflict that has disrupted global trade with increased fuel, fertiliser and food prices. For the first time in five years the inflation rate in Kenya is above the Government target range mainly driven by supply side constraints occasioned by external shocks and climate related food and energy prices. Aside from these challenges, the Kenyan economy continues to be confronted by various constraints such as: recurrent drought affecting agricultural productivity; declining manufacturing productivity; skewed access to finance for business and development; rigidities in business regulatory framework; weak governance; and fiscal risks including pension’s liabilities, stalled public projects, payment arrears; and high debt service that has hindered the economy from achieving its full potential. To address the challenges, the Government through the bottom up approach model has designed policies sand programms geared towards economic turnaround and inclusive growth with a special focus on increased employment, more equitable distribution of income, social security while also expanding the tax revenue base, and increased foreign exchange earnings. 2.1.1 Economic growth The Kenyan economy demonstrated remarkable resilience and recovery from COVID-19 shock due to the diversified nature of the economy and the proactive measures by the Government to support businesses. The economy expanded by 7.5 percent in 2021, a much stronger level from a contraction of 0.3 percent in 2020. The growth momentum continued in the first three quarters of 2022 averaging 5.5 percent despite subdued performance in agriculture and weaker global growth. The economy grew by 6.7 percent in the first quarter and 5.2 percent in the second quarter compared to a growth of 2.7 percent and 11.0 percent in similar quarters in 2021. The economy is projected to rebound to 6.1 percent in 2023, reinforced by the Government’s development agenda geared towards economic turnaround and inclusive growth. This growth will be supported by a broad-based private sector growth, including recoveries in agriculture. 2.1.2 County Economic Outlook According to 2021 Gross County Product (GCP) Report, the county’s nominal GDP was estimated at KSh 111.071 Billion in 2020 which represented 1.1 per cent of the National GDP in 2020 (KSh 9.892 Trillion). The county’s GDP represented a 14.4 per cent increase from KSh 97.112 Billion in 2018 while the national GDP represented a 15.9 per cent increment from KSh 8.532 Trillion over the same period. Table 1 presents the Makueni Gross County Product 2018-2020. 3 | P a g e Table 1; Makueni Gross County Product, 2018-2020 Economic Activities 2018 2019 2020 Agriculture, forestry and fishing 25,202 30,228 32,741 Transport and storage 11,539 14,172 13,058 Public administration and defense 10,598 11,852 12,442 Wholesale and retail trade; repair of motor vehicles 9,041 9,764 10,022 Education 9,646 9,603 9,014 Real estate activities 5,002 5,322 5,646 Construction 3,754 4,212 5,179 Manufacturing 4,893 4,896 5,165 Other service activities 4,314 4,606 4,153 Human health and social work activities 3,590 4,222 4,120 Professional, technical and support services 2,717 2,918 2,587 Information and communication 1,939 2,099 2,256 Administrative support services 1,382 1,543 1,315 Financial and insurance activities 1,085 1,211 1,150 Accommodation and food service activities 1,443 1,724 1,126 Mining and quarrying 665 690 753 Water supply; waste collection 658 714 698 Electricity supply 195 205 216 Financial services indirectly measured (551) (595) (570) Total 97,112 109,383 111,071 Source: Kenya National Bureau of Statistics. The county economy remains highly dependent on the agriculture sector, contributing on average 29.5 percent of the GCP. Makueni County is mostly a rural county with 92 per cent of the residents dwelling in the rural areas while 8 per cent reside in the urban areas. Agriculture is the main source of livelihood with 78 per cent of the households involved in the activity which is mostly rain fed. Agricultural productivity in the county has been declining largely occasioned by the prolonged drought as a result of failed rain and high global fertiliser prices resulting in severe food shortage. The spread of the COVID-19 pandemic worsened the situation with world fertiliser prices having more than doubled in the past two years, affecting productivity of farmers. According to National Drought Management Authority, the county has been facing drought which has led to drying up of over 90 per cent of water dams, pans and reduction of water levels in underground water sources. Human wildlife conflicts have been reported in communities living near chyullu park as wildlife tries to access the remaining few water resources. Households have been forced to travel longer distances to fetch water thus impacting on their ability to effectively participate in the economy. 4 | P a g e To address these challenges, the county will engage stakeholders in disaster and risk management to mitigate the effects of water shortage through water trucking to vulnerable communities, repair and maintenance of strategic boreholes and provide fuel subsidy for water projects. The government will also prioritize desilting of earth dams and construction of medium size dams in the medium term to increase the volume of water harvested in the oncoming rains. 2.1.3 County Fiscal Outlook The Government is committed to enhancing resource mobilsation both internal and external as a key pillar in delivering the envisaged County socio economic transformation. The County endeavours to reduce over dependence on transfers from the National Government which has been increasing at a decreasing trend. To achieve this agenda, the County will create strategic partnerships targeting development partners as well as enhance own source resource mobilisation for county development. 5 | P a g e 3.0 COUNTY GOVERNMENT FISCAL PERFROMANCE 3.1 FY 2021/22 Revenue and Expenditure Performance In FY 2021/22, the County Government had a revised budget of Kshs 11,544,836,717 comprised of recurrent budget Kshs 7,269,884,132.55 (63%) and development Kshs 4,274,952,584.88 (37%). The Budget was funded from four main sources namely; Equitable share – Kshs 8,132,783,562.00 (70%), FY 2020/21 Reallocation funds – Kshs 1,501,673,251.43 (13%), Own Source Revenue – Kshs 1,091,306,710.00 (10%) and conditional allocations loans and grants – Kshs 819,073,194.00 (7%). 3.1.1 Revenue Performance The overall revenue performance for FY 2021/22 was 94 Per cent (Kshs 10,882,719,599.60) out of the total budgeted revenues of Kshs 11,544,836,717.43. The performance reduced by 1 percent compared to the 95 percent recorded in FY 2020/21. Table 2; Analysis of FY 2021/22 Revenue Performance Annual Revenue Budget Performance Revenue Source Actual Receipts Allocation (in Kshs) Balance (%) Equitable share 8,132,783,562.00 8,132,783,562.00 0 100% Conditional allocations 153,297,872.00 0 153,297,872.00 0% Loans and Grants 665,775,322.00 498,856,279.20 166,919,042.80 75% Sub total 8,951,856,756.00 8,631,639,841.20 320,216,914.80 96% County generated revenue 1,091,306,710.00 749,406,507.40 341,900,202.62 69% Sub Total 10,043,163,466.00 9,381,046,348.60 662,117,117.42 93% FY 2020/21 Reallocation 1,501,673,251.43 1,501,673,251.00 0 100% Funds Total Revenues 11,544,836,717.43 10,882,719,599.60 662,117,117.42 94% Source; County Treasury 3.1.1.1 Local revenue collections At the end of the financial year, the total own source revenues collected amounted to Kshs. 749,406,507.38 against a target of Kshs. 1,091,306,710.00 representing 69 per cent performance and an equivalent of 7 per cent of the total revenues receipts of the FY 2021/22. The Own Source Revenue performance registered a growth of 44% from Kshs 521,102,374.05 recorded in FY 2020/21, to Kshs 749,406,507.38 in financial year 2021/22. The increase was be attributed to collective efforts to enhance OSR collection such as recruitment of more revenue officers, collective efforts to enforce uncollected revenue for FY 2020/21 and sensitization and operationalization of cashless modes of payment and also recovery from the negative effects of COVID 19 pandemic. The collection represented the highest collection over the period from FY 2013/14 – 2021/22. 6 | P a g e Figure 1; Annual Local Revenue Performance for FY 2013/14 – FY 2021/22 Source; County Treasury 3.1.1.2 Revenue Streams and Trend The overall performance per quarter has been on an upward trend. This has been accredited to increased surveillance, increased willingness of the populace to pay fees and enhancing reporting of all revenues collected by County government entities. The First quarter of FY 2021/22 recorded a 83% increase in revenue collection while the second, third and fourth quarters recorded an increase in revenue collection by -11 per cent,7 per cent and 110 per cent respectively compared to the respective quarterly performance in FY 2020/21. The revenue were raised from 32 revenue streams. 3.1.1.3 Equitable share, conditional allocations, loans and grants In FY 2021/22, the revenue performance for equitable share, conditional allocations loans and grants was 94 percent. This was a 1 percent decrease in the total receipts received in FY 2020/21. The allocations for the county conditional allocations has declined due to the conversion of fuel levy, village polytechniques, compensation for user fees funds to equitable share. The Government received 100% of the allocated Equitable share and 75 percent of the Loans grants. Table 3; FY 2021/22 Annual Revenue Receipts per item Annual Budget Performa Revenue Source Allocation (in Actual Receipts Budget Balance nce (%) Kshs) Conditional Allocation for Leasing 153,297,872.00 0.00 153,297,872.00 0% of Medical Equipment Equitable share from National 8,132,783,562.00 8,132,783,562.00 0.00 100% Government IDA (World Bank) credit: Kenya Urban Support Project(KUSP) - 36,063,763.00 36,063,763.00 0.00 100% Urban Development Grant (UDG) 7 | P a g e IDA(World Bank) Transforming Health Systems for Universal Care 87,593,306.00 87,205,535.05 387,770.95 100% Project IDA(World Bank)credit(National Agriculture and Rural Inclusive 284,347,300.00 145,886,189.15 138,461,110.85 51% Growth Project(NARIGP)) DANIDA Grant Primary Health 16,409,250.00 12,855,375.00 3,553,875.00 78% Care in Devolved Context Kenya Devolution Support Program 184,795,683.00 184,795,683.00 0.00 100% (KDSP) ("level 2" grant) EU Grant (Instruments for Devolution Advice and Support 11,000,000.00 11,000,000.00 0% IDEAS Sweden-Agriculture Sector Development Support 35,566,020.00 22,049,733.00 13,516,287.00 62% Programme(ASDSP) II Nutrition International Donor 10,000,000.00 10,000,001.00 -1.00 100% funding County generated revenue 1,091,306,710.00 749,406,507.38 341,900,202.62 69% FY 2020/21 Reallocation Funds 1,501,673,251.43 1,501,673,251.43 0.00 100% Total 11,544,836,717.43 10,882,719,600.01 662,117,117.42 94% Source: County Treasury 3.1.2 Expenditure Performance The total expenditures for the Government for the year ending 30th June 2022 was Kshs 8,607,340,676.10 against a budget of Kshs 11,544,836,717.43. This represented an overall absorption of 75 percent a reduction from 79 percent recorded in FY 2020/21. Recurrent expenditure for FY 2021/22 amounted to KSh. 6,027,834,191.44 representing an absorption rate of 83 per cent and a development expenditure of KSh. 2,579,506,483.80 representing 60 per cent absorption rate. The overall absorption rate for the FY 2021/22 stood at 75 per cent. Recurrent expenditure accounted for 70 per cent of the expenditures while development expenditures accounted for 30 per cent of the total expenditure in the FY 2021/22. Table 4: Overall Recurrent and Development Expenditure Economic Classification FY 2021/22 Revised Expenditures as at Vote balance Absorption Budget 2 30th June 2022 County Executive Salaries 3,993,532,191.35 3,405,719,721.15 587,812,470.20 85% O&M 2,519,710,402.19 1,891,525,068.40 628,185,333.79 75% Recurrent 6,513,242,593.55 5,297,244,789.55 1,215,997,804.00 81% Development 4,244,482,443.08 2,564,281,699.15 1,680,200,743.93 60% Sub Total 10,757,725,036.63 7,861,526,488.70 2,896,198,547.93 73% County Assembly 8 | P a g e Salaries 363,744,903.64 337,681,903.64 26,063,000.00 93% O&M 392,896,635.36 392,895,953.76 681.60 100% Recurrent 756,641,539.00 730,577,857.40 26,063,681.60 97% Development 30,470,141.80 15,236,330.00 15,233,811.80 50% Sub Total 787,111,680.80 745,814,187.40 41,297,493.40 95% Total Budget Salaries 4,357,277,094.99 3,743,401,624.79 613,875,470.20 86% O&M 2,912,607,037.55 2,284,421,022.16 628,186,015.39 78% Recurrent 7,269,884,132.55 6,027,822,646.95 1,242,061,485.60 83% Development 4,274,952,584.88 2,579,518,029.15 1,695,434,555.73 60% Total Budget 11,544,836,717.43 8,607,340,676.10 2,937,496,041.33 75% Source; County Treasury 3.2 FY 2022/23 Revenue and Expenditure Performance In FY 2022/23, the Government has a Revised Budget of Kshs 11,529,598,474.31 with Kshs 7,678,723,994.74 (67%) directed towards recurrent budget and 3,850,874,479.57 (33%) directed towards development budget. The County Budget is funded from six main sources namely; Equitable share from the National Government of Kshs. 8,132,783,562.00 (71 Per cent), own-source revenues Kshs 1,245,000,000.00 (11 per cent), conditional allocations, loans and grants – Kshs 861,000,000.00 (8 percent) and FY 2021/22 Reallocation Funds (11 Percent). 3.2.1 Revenue Performance The overall revenue performance upto February 2023 was 39.1 percent (Kshs 4,004,672,832.65).The equitable share and Conditional allocations loans and grants amounted to Kshs 3,560,717,708.65 representing 89 percent of the total actual receipts. Own Source Revenue performed at 35.7 percent, for the first eight months of the financial year. Table 5; Analysis of FY 2022/23 eight months Revenue Performance Revenue Source Fy 2022/23 Ration Actuals upto Balance performance Revised February 2023 Revenues Equitable share 8,132,783,562.00 71% 3,375,105,177.00 4,757,678,385.00 41.5% Conditional Allocations, Loans and 861,000,000.00 7% 185,612,531.65 675,387,468.35 21.6% Grants Other Revenues Sub Total 8,993,783,562.00 0.78 3,560,717,708.65 5,433,065,853.35 County generated revenue 1,245,000,000.00 11% 443,955,124.00 801,044,876.00 35.7% Total OSR & Other Revenues FY 10,238,783,562.00 0.89 4,004,672,832.65 6,234,110,729.35 39.1% 2022/23 FY 2021/22 Reallocation Funds 1,290,814,912.31 11% 1,290,814,912.31 0.00 100.0% Total Revenues 11,529,598,474.31 100% 5,295,487,744.96 6,234,110,729.35 45.9% Source; County Treasury 3.2.2 Expenditure Performance The County recorded an overall cumulative absorption rate of 35 percent (Kshs 4,092,836,995.27) for the period upto February 2023. Personnel emoluments recorded the 9 | P a g e highest absorption of 60 per cent (Kshs 2,657,863,562.30) whereas operations and maintenance recorded a 31 percent absorption rate (Kshs 1,019,193,373.12). Development expenditure amounted to (Kshs 415,780,059.85) representing 11 percent absorption rate. Table 6; FY 2022/23 Budget performance as at February 2023 Economic FY 2022/23 Revised Expenditures upto Vote Balance Absorption classification Budget (1) February 2023 Salaries 4,431,608,710.52 2,657,863,562.30 1,773,745,148.22 60% O&M 3,247,115,284.23 1,019,193,373.12 2,227,921,911.11 31% Recurrent 7,678,723,994.75 3,677,056,935.42 4,001,667,059.33 48% Development 3,850,874,479.57 415,780,059.85 3,435,094,419.72 11% Total Budget 11,529,598,474.33 4,092,836,995.27 7,436,761,479.05 35% Source; County Treasury 10 | P a g e 3.3 Public Participation and Involvement of Stakeholders The constitution of Kenya and the County Government Act 2012 has mandated Public participation in governance processes. The CFSP was developed through a participatory approach with the involvement of Sector Working Groups and diverse stakeholders. Citizens were given an opportunity to deliberate on their development issues and challenges and prioritize interventions from the 247 Sub- locations, 30 Wards, and thematic groups (youth, women, PLWHIV, and PWDs). Inputs from different groups including development partners, professionals and elected leaders were sought and incorporated. 11 | P a g e 4.0 DEVELOPMENT PRIORITIES - FY 2023/24 – 2025/26 MEDIUM TERM EXPENDITURE FRAMEWORK 4.1 Introduction The development framework over the medium term is guided by the Makueni County Integrated Development Plan 2023-27 whose theme is building a resilient economy for sustainable development. The FY 2023/24 Medium-Term Expenditure Framework will be guided by the development philosophy of Wauni wa Kwika Nesa na Ulungalu” – the desire to do good with integrity. With a rallying call for “Our people, our Priority”. The development theme for the Financial Year will be ‘enhancing efficiency for economic growth and community resilience’ and will be guided by the following principles; infrastructure development for rural and urban areas to improve access to roads, water and sanitation; strengthening cooperatives as vehicle for rural transformation; improving access to universal health coverage; automation of government services; youth empowerment and innovation; strengthening public finance management and public sector transformation for performance oriented results and decentralized government services. The FY 2023/24 Medium-Term Expenditure Framework will guided by the following objectives; a. To enhance universal water access in the County b. To increase sustainable agriculture production, value addition and market access for targeted value chains c. To improve urban and rural infrastructural development socio economic transformation d. To increase industrialization and enterprise development by creating a conducive environment for investment and employment creation e. To enhance access to quality and affordable health services 4.2 Key development pillars The Development framework will be supported by the following key pillars; Enhanced Resource mobilization and Strategic Partnerships; This will be aimed at enhancing resource mobilization to support the County Government Development agenda. This will be achieved through strengthening internal revenue generation systems, establishing and strengthening partnerships and collaborations, enhancing community contribution in development and Instituting appropriate controls to minimize wastage of county resources. Integration of ICT; The Government is committed towards enhancing the use of ICT as a catalyst for enhancing service delivery and promoting accountability and transparency by ensuring information is readily available to the citizenry. Youth empowerment and innovation/ Mainstreaming; The government will ensure youth programmes are integrated in all County Government programs to empower them by creating 12 | P a g e employment opportunities, reducing exposure to risks, enhancing their capacity and building their resilience to manage both economic and social shocks. Coordination and Service delivery; The government will institute governance mechanisms to ensure harmonized coordination and improved service delivery. This process will involve instilling integrity, establishing robust accountability mechanisms, automation of government services, enhancing efficiency in service delivery, reengineering and strengthening the county administration as pivotal pillars in service delivery. Developed and self-sustaining cooperative movement; As a means of enhancing agricultural productivity and profitability through enhanced marketing of agricultural produce and supporting extension programme. 4.3 Sector priorities in the medium term 4.3.1 Water and sanitation Sector The water and sanitation sector one of the key priority areas of the government in ensuring citizens access safe water for drinking and irrigation. The county aims at increasing the access to improved water sources from 44.2 percent to 70 percent while reducing the average distance to improved water sources from 5Kms to 2 Kms in the MTEF period. The county will focus on construction of a high impact medium sized dams of capacity 500,000M3 at the confluence of Muooni-Kikuu rivers. On ground water harvesting, the county will map out high yielding boreholes and fund their distribution rather than drilling new ones. Additionally, the county government will focus on Construction/ rehabilitation of earth dams, construction of sand dams and distribution of water from sump tanks. On water policy and governance, the county will establish and operationalize MARUWAB (Makueni Rural Water Board) and the county water fund. Further, the county will capacity build water management structures, community groups, including women and youth, on effective water management. In addition, the sector will partner with Water Service Trust fund to finalise on the construction of a Decentralized Treatment Facility in Wote town. 4.3.2 Agriculture and Rural Development. The sector is one of the major contributors of the Big Four agenda on attaining 100 % food and nutrition security and enhancing manufacturing in the country. Additionally, the sector contributes to SDG No.1 on Ending poverty in all its forms everywhere and No. 2 on Ending hunger, achieving food security and improved nutrition and promoting sustainable agriculture. Further, the sector contributes to economic and socio-economic growth through creation of job opportunities and wealth in the country. During the MTEF 2023/24-2025/26 period, the sector will implement three priorities areas namely; agricultural production and productivity, agricultural commercialization, and strengthening of cooperative movement. The county will focus on improving fruit development through infrastructural development at the fruit processing plant in Kalamba. This will entail construction of a store for the finished ready to drink juice and purchase and installation of a chiller and carry out general repairs of the facility. Further, the county will 13 | P a g e construct the Makueni County food and agriculture laboratory, strengthen food safety and sanitary and phytosanitary standards. Further, the county will promote modern extension services provision targeting 77,400 farming households and promote the county main value chains through the National Agriculture Value Chain Development Project (NAVCDP). The county will support fodder and pasture development through supply of pasture seeds and construction of hay stores on strategic areas in the county. In order to reduce overreliance on rain fed agriculture, the county will develop irrigation infrastructure by rehabilitating two irrigation schemes and supporting excavation of 200 farm ponds across the county. On strengthening the cooperative sector, the county will operationalize the county Cooperative Development Fund (CDF) as outlined in the Cooperative Act; strengthening the governance mechanisms through training, auditing of producer and marketing cooperatives to ensure compliance and competitiveness. 4.3.3 Lands, Urban Development, Environment and climate change The lands, urban planning and development sector faces majorly two development issues namely security of tenure and poor urban livability as a result many factors among them lack of land use plans, basic amenities and development infrastructure. To address these challenges, the sector will enhance security of land tenure, promote land use planning and management, and promote urban development (both institutions and infrastructure. In addition, the sector will enhance environment conservation and building community resilience against the effects of climate change. Key interventions in FY 2023/24 include; issuance of title deeds, Surveying of 6 major markets (one per sub county); Enhance land management information systems for all county markets; Implementing urban planning and infrastructure development in Wote and Emali Municipalities; Enhance environment conservation and building community resilience against the effects of climate change; Promoting afforestation of all riparian land within the county using appropriate tree species; Restoration of Nzueni and Yekanga county forests; Pegging and restoring of riparian land through afforestation using appropriate tree species; Rehabilitation of Mbooni hills land scape, Chyulu Hills land scape and Nzaui-Makuli landscape, developing and funding ward climate resilience projects and enhancing restoration of fragile land areas within the county Additionally, the County Government will endeavour to promote climate change justice financing and mainstreaming in all County Government programmes and projects as well as undertake critical ecosystem mapping, zoning and gazettment within the county. The sand Authority will also champion for sustainable sand utilisation over the medium term. 4.3.4 Transport, Infrastructure , Public Works , Energy and ICT Sector The sector is mandated to provide efficient, affordable and reliable infrastructure and services for socio-economic transformation of the county. In the medium term, the sector will focus on improving road network connectivity to promote transport services within and outside the county through upgrading, rehabilitation and maintenance of the county road network. To enhance access to reliable and clean energy the sector will collaborate with key development 14 | P a g e partners to increase energy resources development, improve rural and urban electrification, promote uptake of green energy sources and continuous maintain energy assets across the county. The government will also enhance access to ICT by improving ICT infrastructure development to increase connectivity, develop ICT systems that will support automation of key government services & process, increase ICT literacy and promote research and innovation. Key interventions in FY 2023/24 include; mapping and upgrading road infrastructure in roads interconnecting wards and sub counties; Routine maintenance of 1,500km of roads through grading; Extension of power line, transmission line, transformer installations and distribution to all markets, health facilities, public utilities, schools, and households through REREC matching grant; Construction of County Executive HQ offices; Expansion of the National Optic Fibre Backbone Infrastructure Connectivity (NOFBIC) to urban centers, Government institutions (Schools, offices, Hospitals) and automation and integration of Government services ( County e-Citizen portal module, Records Management module, Integrated Human Resource Management and performance contracting module, Fleet management module, E- Commerce (Makueni Soko) System , Audit management Module , Integrated Agricultural Management Module, Asset Management System, Enhancement of Lands Information Management Module , Enhancement of GIS Project Management module, Water management system (billing, metering, water kiosks and Integrated Health Management Information module). 4.3.5 Health services sector The goal of health sector is mandated to provide equitable, affordable and quality healthcare to all citizens. The government will focus on strengthening and scaling up cost-effective, preventive and promotive healthcare system with special attention to controlling communicable and non-communicable diseases, reproductive health, child-health and emergency services. Key interventions in FY 2023/24 include; Upgrading six model health centres(one per subcounty); Automating the medical supplies system; Establishing health management information system (HMIS) incorporating the referral procedures from Level 2 to Level 5 health facilities and a database to support evidence-based decision making and resource allocation; Strengthening the community health strategy; Purchase of ambulances, Establishing and operationalizing youth friendly clinics; Construction of maternity at Sultan Hamud Hospital, Equipping theatre at Kibwezi; Equipping Makueni Level 5 Hospital with specialized units for diagnostics and treatment including an endoscopy tower, oncology unit, renal unit, radiology services, and MRI machine, Equipping model 4 health facilities –one per subcounty and Establishing a tele center to offer diagnostic services to patients located in remote locations and equipped medical personnel with ICT technology for providing distant diagnostic services. 15 | P a g e 4.3.6 Social Protection, Education, Culture and Recreation Sector Education, Social Protection and Recreation Sector development agenda seeks to promote access to quality education and training, youth empowerment through talent development, training/skill development and enhancing employment opportunities through sports and recreation. The social protection aspect is aimed at cushioning the vulnerable and MARPs to effectively contribute towards the realization of inclusive economic development. In the medium term, the sector will enhance access to quality Education for ECDE and CTTIs, strengthen policy, research and legal frameworks to inform decisions, planning and programming, enhance youth empowerment and promote socioeconomic empowerment of the vulnerable. Key interventions in FY 2023/24 include; Developing two model ECDE centres; Upgrading two CTTIs to Model status; Enhancing CTTI training towards building skills on enhancing the agenda for agricultural transformation, water access and housing; Developing youth entrepreneurial skills at the Makueni Industrial Park (MIP), undertake school feeding programme to ECDE students, enhance capitation to CTTIs and ECDEs, enhance scholarship and bursary programmes, support talent and sport development, enhance social economic empowerment of vulnerable groups and enhance the apprenticeship, internship and mentorship programme for the youth. 4.3.7 General Economic and Commercial Affairs In the medium term, the sector will focus on promoting trade development through supporting entrepreneurship, fair trade practices and provision of decent trade infrastructure, creating a conducive and attractive environment for investment towards an industrialized County and enhancing marketing and market access for county products. The sector will also promote local tourism and positioning Makueni as tourism destination of choice. Key interventions for FY 2023/24 include; Establishment of an industrial park and a Special Economic Zone; Supporting development of 3 cottage industries along the priority value chains; profiling and packaging County tourism investment opportunities and developing wildlife conservancies, ecotourism activities (zip lining, natural trails),and facilities (Eco lodges, campsites)in Chyulu National Park; - Makuli forest, Makongo, Nzaui, animal sanctuary in Kiboko and tortoise and snake parks in collaboration with other partners. 4.3.8 Devolution Sector The Devolution sector plays a fundamental role in providing county leadership, oversight and policy direction towards the realisation of the county’s development agenda. The sector also promotes prudent public finance management and accountability, coordinates county sectoral development planning, statistics, supports devolution, effective coordination of government services and ensures efficient and effective public service. In the medium term the sector will reengineer the public service for results by undertaking public service human reforms all aimed at promoting integrated service delivery, decentralization and enhancing employee productivity and satisfaction. This will also ensure 16 | P a g e national value and ethics are promoted in public service. The sector will ensure Government services are automated to ensure efficiency and effectiveness in programme and project planning, implementation and tracking. Additionally, the sector will enhance resource mobilization strategies targeting both own source generated revenues and externally generated revenues. Developing strategic partnerships for development will be a key priority in the medium term. The sector will also implement programmes aimed at enhancing fiscal responsibility and accountability, strengthening county governance, coordination and management and promoting effective citizen engagement. Key interventions in FY 2023/24 include; Building and strengthening strategic partnerships with development partners; Institutionalizing and strengthening performance management system; Strengthening research, innovativeness and sustainability for development; promoting constitutionalism, values and principles of public service; developing human resource plan/policies, scheme of service and guidelines; establishing service centres and construction of decentralised offices; strengthening PFM systems; developing schemes of service; Staff rationalization; Strengthening integrated service delivery; disaster risk mitigation and preparedness; Automation of Human Resource processes and strengthening county statistics function & GIS based planning. 17 | P a g e 5.0 RESOURCE ENVELOPE FOR THE FY 2023/24 – 2025/26 MEDIUM TERM EXPENDITURE FRAMEWORK This chapter outlines the projected resource framework for the Government in the medium term. 5.1 Revenue Allocation to County Governments In FY 2023/24, counties are expected to be allocated an equitable revenue share of Ksh 380.0 billion which is an increase of Kshs 10bn from Kshs 370bn from the allocation in FY 2022/23. The equitable share is equivalent to 26.8 percent of the last audited accounts (Ksh 1,414 billion for FY 2017/18) and as approved by Parliament. Table 7; Revenue allocation to County Governments 2020/21 2021/22 2022/23 2023/24 Baseline (i.e. allocation in the previous FY) 316,500.00 316,500.00 370,000.00 370,000.00 1. Adjustment for revenue growth 36,100.00 10,000.00 Conversion for conditional allocation Grants 17,400.00 for Equitable share (RMLF, Level 5 Hospitals, Compensation for user fees foregone and rehabilitation of youth polytechniques) Computed equitable revenue allocation 316,500.00 370,000.00 370,000.00 380,000.00 Source; National BPS In addition to their proposed equitable share of revenue, County Governments will receive the following additional conditional allocations: i. From the National Governments’ equitable revenue share, conditional allocations amounting to Ksh 776 million for construction of county headquarters. ii. Equalization Fund to the marginalized areas amounting to Ksh 7.5 billion; and iii. Ksh 32.9 billion from proceeds of external loans and grants. Table 8; Revenue allocation by category Type/level of allocation 2020/21 2021/22 2022/23 FY 2023/24 County equitable share 316,500 370,000 370,000 380,000.00 Additional conditional allocations, of which: Leasing of medical equipment 6,205 7,205 5,200 Supplement for construction of county 300 332 454 776.00 headquarters Allocations from loans and grants 30,204 32,334 31,382 32,916.00 Total County Allocations 353,209.00 409,871.00 407,036.00 413,692.00 Source; National BPS 18 | P a g e Horizontal allocation of revenue among the County Governments for FY 2023/24 is based on the Third Basis, which was considered and approved by Parliament in September, 2020. The third basis takes into account the following parameters: Population (18 percent); Health Index (17 percent); Agriculture Index (10 percent); Urban Index (5 percent); Poverty Index (14 percent); Land Area Index (8 percent); Roads Index (8 percent); and Basic Share Index (20 percent). 5.2 FY 2023/24 County Government Resource Envelope The FY 2023/24 revenues are projected to increase to Kshs 10,191,980,170.00 from Kshs 9,832,783,562.00 in FY 2022/23 representing a growth of 4 per cent. The growth is contributed by the increase of Equitable share as outlined in the 2022 National Budget policy Statement Paper and county generated revenues as highlighted in Table 11 below. The budget will be funded from three main sources namely equitable share – 81.8 percent, Conditional Allocations, loans and Grants – 8.3 percent and Own Source revenue at 9.8 percent. Table 9: Fiscal Revenues for 2023/24-2025/26 MTEF period (Millions) Revenues FY 2022/23 FY 2023/24 FY 2024/25 FY2025/26 Printed Budget Projection Projection Projection Estimates Equitable share from 8,132,783,562.00 8,341,980,170.00 8,376,767,068.86 8,376,767,068.86 National Government County generated 850,000,000.00 1,000,000,000.00 1,100,000,000.00 1,145,000,000.00 revenue Conditional allocations 850,000,000.00 850,000,000.00 850,000,000.00 850,000,000.00 Loans and Grants - PPPS & other 0.00 0.00 0.00 200,000,000.00 Development partners Total 9,832,783,562.00 10,191,980,170.00 10,326,767,068.86 10,571,767,068.86 Source: Makueni County Treasury Projections, 2023 5.2.1 Own Source Revenue Mobilization The County has continuously enhanced its revenue mobilization strategies which resulted to a growth of 44 percent in the total revenues mobilized in FY 2021/22. The county projects to mobilize Kshs 1,000,000,000.00 as own source of revenue. The projections are expected to increase to 1.145 Billion in the medium term. 19 | P a g e Figure 2: County Own Source Revenue FY 2013/14 - 2025/26 Source: County Treasury, 2022 Though the County has over the years recorded a gradual increase in own source revenue, the actual revenues collected fall short of potential principally due to challenges in collection and administration. The growth in OSR is expected to be consistent as the government implements the following strategies; a. Establishing a dedicated enforcement and compliance unit that is appropriately trained to handle all revenue matters: b. The government will enhance engagement of community revenue champions at each of the 30 wards. The champions will assist the government in sensitizing communities on the need to pay fees and charges. c. Establishing a rewarding system for individuals, markets and wards which have been consistently paying their revenue within set deadlines in each calendar year. This will be through initiatives like special funding for programs and projects in specific areas. d. Restructuring the billing regime to ensure all related businesses activities for a single client are billed once: This will enhance efficiency in billing and consolidation of expected revenues from businesses and establishments within the county. e. Exploiting the potential of the county’s natural resources: The government will look into possibilities of generating more revenue from the county’s natural resources such as minerals, sand and soil. Through collaboration with the mining sub-sector, the county will enhance revenue collection from resource exploitation structures. f. Establishing a county court to handle cases of non-compliance: This will improve enforcement of county finance bill as well an avenue for a more effective utilization of the County enforcement team. g. Revamping County Revenue Collection Staff Training: Officers involved in revenue collection will be trained on customer handling mechanisms that will promote cohesive performance of their duties. Negotiation skills to handle their 20 | P a g e customers will also be encouraged targeting non-aggressive but firm means of revenue mobilization. h. Leveraging on the Valuation roll to enhance collection of land based Revenues; The government will fully implement the valuation roll to tap into the revenue in the stream. i. Instituting measures to recover outstanding debts owed in respect of plot rent to all defaulters: The government will enter into agreements with defaulters to develop mutually beneficial strategies to encourage payment and debt collection. Incentives that promote payment by defaulters will be sought to reduce outstanding debts. j. Enhancing policy and legislative frameworks for revenue administration: Carrying out Legislative review of all laws related to Revenue collection, enforcement and compliance to address any legislative and policy gap. The government will also analyze the National Policy to Support Enhancement of County Own-Source Revenue to identify key action areas for implementation k. Whole government approach in Own Source Revenue mobilization: The government will promote participation across departments in own source revenue mobilization. The government performance contracts will include ways departments are supporting resource mobilization. Incentives will be developed to encourage resource mobilization at departmental and agency levels. l. Leveraging on technology: The government will synchronize revenue collection and audit systems to improve effective governance in resource mobilization. Integration of county systems (interoperability) will be enhanced for ease of harmonizing revenue information. Adoption of mobile technology systems to augment the automated revenue systems 5.2.2 External resource mobilization; strengthening partnerships and collaborations The County acknowledges that for accelerated development, it is critical to involve and engage other key stakeholder, towards this end the county will, i. Develop and strengthen strategic partnerships to mobilize resources and maximize development outcomes. This action will target the National Government, neighboring counties, development partners, civil society organizations, and private sector institutions among others. ii. Develop the County PPP regulatory framework to enhance PPP engagements with the private sector in the medium term. This will be enhanced through the establishment of a County Public Private Partnership (PPP) Unit that will be tasked to promote participation of the private sector in the county development iii. Strengthen the external resource mobilization unit and Strategic partnerships directorate to ensure enhanced donor funding through the Request for Proposals (RFP) and responses to Competitive Grants Programmes. iv. Establish a Makueni Leaders Development Caucus consisting of the Governor, Women Representative, Senator, Members of National Assembly, and Speaker to share ideas and build synergies rather than duplicate efforts. Ensure that county and 21 | P a g e national government personnel, consultants, development partners, and donors play a facilitative role in the development process while promoting community participation. v. Maintain an active public awareness campaign to sell/promote governments competitive advantages among development partners, citizens and investors. vi. Leverage on the South Eastern Kenya Economic Bloc (SEKEB), the enactment of the SEKEB Act in 2022 to attract regional funding and investment opportunities for Makueni and across the other two counties of Machakos and Kitui. vii. Community contribution: enhance citizen engagement by ensuring communities are active participants in development. This will ensure communities contribute directly towards implementing the prioritized development objectives. 5.2.3 Conditional allocations, Loans & Grants The Government will enhance its engagement with development partners and the National Government to fund specific County Government development initiatives through conditional allocations, loans and grants. The funding is expected to increase to Kshs 1,698.23Million in the medium term. Figure 3: Conditional allocations, loans & grants Source: The County Treasury 5.3 Expenditure Projections The Budget for FY 2023/24 is projected to increase from Kshs 9,832,783,562.00 in FY 2022/23 to Kshs 10,191,980,170.00 representing an overall growth of 4%. The Recurrent expenditure is projected to be Kshs 6,866,046,086.87 an increase of 3 per cent from Kshs 6,660,769,154.00 in the printed estimates for FY 2022/23. The Development Expenditure is estimated to be Kshs 3,325,934,083.13 representing 32% of the total County Budget. Table 10: Projected Expenditures for 2022/23-2025/26 MTEF period FY 2022/23 Economic FY 2023/24 FY 2024/25 Fy2025/26 Printed Budget Classification Projection Projection Projection Estimates Salaries 4,351,577,966.98 4,438,609,526.32 4,527,381,716.84 4,617,929,351.18 Operation & 2,309,191,187.02 2,427,436,560.56 2,416,231,634.45 2,295,980,243.78 22 | P a g e Maintenance Recurrent 6,660,769,154.00 6,866,046,086.87 6,943,613,351.30 6,913,909,594.96 Development 3,172,014,408.00 3,325,934,083.13 3,383,153,717.56 3,657,857,473.90 Total Budget 9,832,783,562.00 10,191,980,170.00 10,326,767,068.86 10,571,767,068.86 Development Index 32.26% 32.63% 32.8% 34.6% Source: The County Treasury 5.4 Overall Deficit and Financing The budget for FY 2023/24 will be a balanced budget. The county expenditure priorities will be aligned with the available resources to ensure non- accumulation of pending bills. However, in the medium term, the County will seek for funding through infrastructure bonds to finance its development priorities as outlined in the CIDP 2023-2027 and the County Medium Term Debt Strategy paper. The Government will seek infrastructure bonds amounting to Kshs 1.8Bn. 5.5 Transfers to Entities The Government is committed towards promoting autonomy of all County Government entities. As such, the County will enhance the capacity of the entities to enhance their revenue mobilization strategies to reduce over reliance on the county exchequer. The MTEF resources take into account the transfers to County Agencies and Authorities including water companies, Sand Authority, Makueni Fruit Processing Authority, Wote Municipality and Emali municipality. 5.6 Fiscal Responsibility Principles In line with the Constitution, the Public Finance Management (PFM) Act, 2012, the PFM Regulations, 2015 and in keeping with prudent and transparent management of public resources, the County has adhered to the fiscal responsibility principles as set out in the PFM. The Government projected development index for FY 2023/24 is 32 percent which is within the minimum 30 percent required by the act. On wages and benefits, the county has been grappling with high wage bill due to mandatory increase of salaries to staff. The county freezed employment of new staff and is enhancing its resource mobilization strategies to ensure the wage bill reduces from the current 44 percent to 35 percent. The county has maintained a balanced budget and ensured non accumulation of pending bills. The 2023 County Makueni County Debt Management Strategy paper outlines the debt management strategy of the County and will ensure any borrowings in the medium term are for development expenditure. 23 | P a g e 6.0 COUNTY HORIZONTAL RESOURCE ALLOCATION This chapter outlines the criteria used to set the ceilings in the 2023 County Fiscal Strategy Paper that will guide in formulation of the 2023/24 Budget. 6.1.1 Recurrent ceilings. Personnel Emoluments. The Personnel emoluments ceilings has been set based on actual departmental wage bill in FY 2022/23 projected to FY 2023/24 taking into consideration the mandatory annual wage increment of staff. The projected wage bill for FY 2023/24 takes into consideration pending gratuities payable to staff amounting to Kshs 300M. In the medium term, the county will enhance its resource mobilization strategies, restrict employment to key competencies and consider replacing staff who exit the service to address the high wage bill which has been occasioned by mandatory increase of salaries to staff. These strategies are aimed at reducing the county wage bill from the current 44 percent to 35 percent. Table 11: Personnel Emoluments Ceilings Fy 2023/24 (in Millions) Department FY 22/23 FY 23/24 FY 24/25 FY 25/26 Printed Budget Projected Projected Budget Ceilings Budget Budget Estimates Estimates Estimates 1 County Attorneys Office 3.12 3.18 3.25 3.31 2 County Public Service Board 34.60 35.29 36.00 36.72 3 Lands, Urban Environment Climate change 57.93 59.09 60.27 61.47 4 Climate change Fund 0.00 0.00 0.00 0.00 5 Wote Municipality 0.00 0.00 0.00 0.00 6 Emali Municipality 0.00 0.00 0.00 0.00 8 Governship 97.92 99.88 101.88 103.92 9 Trade, Marketing, and Tourism 41.06 41.88 42.72 43.57 10 Gender, Children, Youth, Sports 57.53 58.68 59.85 61.05 11 County Secretary 106.65 108.78 110.96 113.18 12 Finance, Planning, Budget and Revenue 221.53 225.96 230.48 235.09 13 ICT, Education and Internship 380.18 387.78 395.54 403.45 14 Infrastructure, Transport, Public Works 63.40 69.67 71.06 72.48 15 Agriculture, Irrigation, Livestock cooperative 253.45 258.52 263.69 268.97 16 Makueni Fruit Development Authority 0.00 0.00 0.00 0.00 17 Department of Water and Sanitation 91.90 93.74 95.62 97.53 18 Sand Authority 20.85 21.26 21.69 22.12 19 Department of Health Services 2,361.23 2,403.45 2,451.52 2,500.55 20 Devolution, Public Service, 221.90 226.34 230.86 235.48 21 County Assembly 338.33 345.09 352.00 359.04 Sub Totals 4,351.58 4,438.61 4,527.38 4,617.93 Source; County Treasury 24 | P a g e Operation and maintenance The ceilings under the operation and Maintenance budget have been tabulated taking into consideration the following; i. Departmental mandates; this takes into consideration the functions and programmes implemented by the various departments in line with the mandate outlined in the executive order. ii. Mandatory O&M items; this takes into consideration non-discretionary items. This include; Table 12; O&M non discretionary items No Department Expenditure Item Amount 1 Attorney Legal Dues/Fees, Arbitration / opinion 10,000,000.00 2 Trade Promotion of Public Sanitation- Market Cleaning, 65,000,000.00 Waste collection, transportation and disposal 3 Finance Emergency fund 30,000,000.00 4 Finance Car & Mortgage loan Fund- Assembly 5 Finance Car & Mortgage loan Fund - Executive 80,000,000.00 6 Education Scholarships 40,000,000.00 7 Education County Bursaries 10,000,000.00 8 CS Medical Insurance 220,000,000.00 9 CS GPA/WIBA/ Fire Burglary 30,000,000.00 10 CS Contracted Guards and cleaning services 35,000,000.00 11 Transport Insurance-Vehicles 30,000,000.00 12 Health Medical Drugs 225,000,000.00 Source; County Treasury iii. Appropriation in Aid; this considers the departments with Appropriation in Aid in their Operation and Maintenance Budget iv. Other Operating costs; this is based on past O&M allocations and absorption capacity. The calculated O&M ceilings are as follows; Table 13: O&M Ceilings for 2023/24 (in Millions) Department FY 2022/23 Mandatory AIAs Other FY Revised Items O&M 2023/24 Budget Ceilings Estimates 1 County Attorneys Office 22.37 10.00 0.00 9.95 19.95 2 County Public Service Board 44.41 0.00 0.00 40.59 40.59 3 Lands, Urban Environment Climate change 78.92 0.00 0.00 27.37 27.37 4 Climate change Fund 0.00 0.00 0.00 0.00 0.00 5 Wote Municipality 43.18 0.00 0.00 24.88 24.88 6 Emali Municipality 0.00 0.00 0.00 16.59 16.59 8 Governship 165.80 0.00 0.00 132.68 132.68 9 Trade, Marketing, and Tourism 26.70 65.00 0.00 24.88 89.88 10 Gender, Children, Youth, Sports 30.32 0.00 0.00 24.88 24.88 11 County Secretary 355.42 285.00 0.00 62.19 347.19 25 | P a g e Department FY 2022/23 Mandatory AIAs Other FY Revised Items O&M 2023/24 Budget Ceilings Estimates 12 Finance, Planning, Budget and Revenue 618.35 110.00 0.00 124.39 234.39 13 ICT, Education and Internship 100.62 50.00 0.50 33.17 83.67 14 Infrastructure, Transport, Public Works 111.62 30.00 0.00 49.76 79.76 15 Agriculture, Irrigation, Livestock cooperative 36.04 0.00 10.00 24.88 34.88 16 Makueni Fruit Development Authority 0.00 0.00 0.00 0.00 0.00 17 Department of Water and Sanitation 38.24 0.00 0.00 31.51 31.51 18 Sand Authority 50.38 0.00 17.50 24.88 42.38 19 Department of Health Services 1,042.69 225.00 415.00 82.93 722.93 20 Devolution, Public Service, 90.63 0.00 0.00 82.93 82.93 21 County Assembly 391.43 0.00 0.00 391.00 391.00 Sub Totals 3,247.12 775.00 443.00 1,209.44 2,427.44 Source; County Treasury 6.1.2 Development Ceilings. The allocation for the Development Budget was guided by the following a. Projects phased in FY 2022/23. This takes into consideration the projects phased while preparing the county FY 2022/23 supplementary budget totaling to Kshs 284M b. Strategic policy interventions: priority was given to policy interventions in line with the CIDP 111 which has been aligned to the Governors manifesto. This has been categorized across the departments based on the proposed medium term flagships in the CIDP. c. Pending bills; To address emerging pending bills, the Department of Finance has an allocation of Kshs 200M to clear any outstanding pending bills. d. Ongoing projects; To facilitate completion of all ongoing projects, the Government will undertake project appraisal that will guide on the viability and costs required to complete all ongoing projects. This will be used while prioritizing projects to be budgeted for across the various wards and departments. e. Appropriation in Aid; this will take into consideration the projected AIA mobilized by Sand Authority (17.5M), Makueni Fruit Processing Plant (60M) and Makueni Agricultural Training Centre (5M). f. Conditional allocations, loans and Grants; the County projects to have a cumulative Kshs 850M as conditional allocations loans and grants based on the actuals in FY 2022/23 and the projection in the National Budget policy statement. The allocation has been distributed across the various departments based on the actual allocations in FY 2022/23 and the National Budget Policy Statement. The allocations will be realigned with the approval of the conditional allocations grants bill 2023. The Government will strengthen project conceptualization to ensure funded projects are fully supported with concept notes outlining the outcomes, activities and the 26 | P a g e programme/project implementation matrix. The development focus will be towards high- impact projects that are outcome-oriented both at the Headquarters and ward. Table 14; Development Ceilings for 2023/24 (in Millions) Department Medium FY 2023/24 Supp Conditional AIA Pending FY Term Development 1Revoted Allocations Bills 2023/24 Flagships Programmes Projects Developm ent Ceilings 1 County Attorneys Office - - - - - - - 2 County Public Service Board - 20.00 - - - - 20.00 3 Lands, Urban Environment 120.00 - 2.70 200.00 - - 322.70 Climate change 4 Climate change Fund 60.00 - - - - - 60.00 5 Wote Municipality - 20.00 - 50.00 - - 70.00 6 Emali Municipality - 10.00 - 50.00 - - 60.00 8 Governship - - - - - - - 9 Trade, Marketing, and Tourism 50.00 - - 100.00 - - 150.00 10 Gender, Children, Youth, 60.00 - - - - - 60.00 Sports 11 County Secretary - - - - - - - 12 Finance, Planning, Budget and 41.00 2.93 - - - 200.00 243.93 Revenue 13 ICT, Education and Internship 150.00 40.00 85.70 - - - 275.70 14 Infrastructure, Transport, Public 120.00 100.00 50.00 - - - 270.00 Works 15 Agriculture, Irrigation, 185.00 80.00 18.00 300.00 5.00 - 588.00 Livestock cooperative 16 Makueni Fruit Development - - - - 60.00 - 60.00 Authority 17 Department of Water and 244.50 265.50 67.05 - - - 577.05 Sanitation 18 Sand Authority - - - - 17.50 - 17.50 19 Department of Health Services 280.00 - 45.80 150.00 - - 475.80 20 Devolution, Public Service, 20.00 10.00 15.25 - - - 45.25 21 County Assembly - 30.00 - - - - 30.00 Sub Totals 1,330.50 578.43 284.50 850.00 82.50 200.00 3,325.93 Source; County Treasury Key highlights in development ceilings; i. Water sector has the highest development allocation of 17 percent followed by Agriculture, health and Lands. This demonstrates the Government to enhance water access, agricultural production, quality health care for the makueni citizens. ii. The Department of ICT Education allocation is inclusive of funds for Government automation iii. The allocation for Kshs 850M conditional allocations has been distributed across the various departments based on the actual allocations in FY 2022/23 and the National Budget Policy Statement. The allocations will be realigned with the approval of the conditional allocations grants bill 2023. 27 | P a g e iv. The Department of Trade contains a sum allocation of Kshs 100M as conditional allocations for construction of an industrial park v. The ward allocations will consider high impact cross ward projects with each ward having an allocation for flagships totaling Kshs 15-20M. Additionally, the ward allocations will fund the various key flagship programmes on water fund, agricultural extension and ECDE development. vi. The development budget is inclusive of flagships programmes and projects as contained in CIDP 111. Key flagships in FY 2023/24 include; automation of Government services (100M), water development 244M, Makueni county urbanization agenda 130M with a key focus on developing the municipalities and urban centres as focal points for development, county ward model health centres and agricultural value chains development. vii. The Department of finance has an allocation of Kshs 200M to address emerging pending bills due to be paid by the County Government. viii. Departments/entities will be required to provide detailed concept notes justifying programmes and projects envisioned in the CFSP. This will be used to formulate the FY 2023/24 budget. The overall MTEF ceilings over the medium term is as outlined in table 15. Table 15; FY 2023/24 – FY 2025/26 MTEF Budget Ceilings Department/Enti ty Class FY 22/23 FY 23/24 Budget FY 24/25 FY 25/26 Projected Printed Budget Ceilings Projected Budget Budget Estimates Estimates Estimates County Attorneys Rec Gross 13,993,374.69 23,133,356.75 22,894,452.04 21,981,491.68 Office Dev Gross - - - - Total 13,993,374.69 23,133,356.75 22,894,452.04 21,981,491.68 Budget County Public Rec Gross 64,906,167.60 75,878,505.37 75,968,916.70 74,699,671.51 Service Board Dev Gross 53,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 Total 117,906,167.60 95,878,505.37 95,968,916.70 94,699,671.51 Budget Department of Rec Gross 132,381,860.32 86,450,860.04 87,217,576.03 87,081,621.15 Lands, Urban Dev Gross 87,200,000.00 322,700,000.00 80,000,000.00 80,000,000.00 Planning and Total 219,581,860.32 409,150,860.04 167,217,576.03 167,081,621.15 Development, Budget Environment and Climate change Climate change Rec Gross - - - - Board Fund Dev Gross - 60,000,000.00 60,000,000.00 60,000,000.00 Total Budget - 60,000,000.00 60,000,000.00 60,000,000.00 Wote Municipality Rec Gross - 24,877,971.62 24,500,711.78 23,281,356.56 Dev Gross 68,000,000.00 70,000,000.00 70,000,000.00 70,000,000.00 Total 68,000,000.00 94,877,971.62 94,500,711.78 93,281,356.56 Budget Emali Municipality Rec Gross - 16,585,314.42 16,333,807.85 15,520,904.37 28 | P a g e Department/Enti ty Class FY 22/23 FY 23/24 Budget FY 24/25 FY 25/26 Projected Printed Budget Ceilings Projected Budget Budget Estimates Estimates Estimates Dev Gross - 60,000,000.00 60,000,000.00 20,000,000.00 Total - 76,585,314.42 76,333,807.85 35,520,904.37 Budget Governship Rec Gross 174,935,567.17 232,564,440.93 232,550,026.93 228,084,390.36 Dev Gross - - - - Total 174,935,567.17 232,564,440.93 232,550,026.93 228,084,390.36 Budget Department of Rec Gross 53,800,909.12 131,757,027.58 131,231,661.99 127,680,765.25 Trade, Marketing, Dev Gross 80,000,000.00 150,000,000.00 150,000,000.00 150,000,000.00 Industry, Culture Total 133,800,909.12 281,757,027.58 281,231,661.99 277,680,765.25 and Tourism Budget Department of Rec Gross 90,754,358.05 83,559,207.10 84,355,571.97 84,333,313.95 Gender, Children, Dev Gross 36,520,000.00 60,000,000.00 60,000,000.00 60,000,000.00 Youth, Sports and Total 127,274,358.05 143,559,207.10 144,355,571.97 144,333,313.95 Social Services Budget County Secretary Rec Gross 450,702,036.70 455,975,804.75 478,492,140.11 462,419,698.90 Dev Gross - Total 450,702,036.70 455,975,804.75 478,492,140.11 462,419,698.90 Budget Department of Rec Gross 543,678,354.77 460,353,879.99 461,318,775.74 454,440,186.15 Finance & Socio Dev Gross 810,867,473.00 243,934,083.13 690,000,000.00 880,000,000.00 Economic Planning Total 1,354,545,827.77 704,287,963.12 1,151,318,775.74 1,334,440,186.15 Budget Department of ICT, Rec Gross 453,830,384.98 471,450,975.01 477,937,765.94 481,747,498.80 Education and Dev Gross 279,550,000.00 275,700,000.00 275,700,000.00 300,000,000.00 Internship Total 733,380,384.98 747,150,975.01 753,637,765.94 781,747,498.80 Budget Department of Rec Gross 157,900,188.79 149,424,991.04 149,608,919.91 147,121,054.53 Roads, Transport, Dev Gross 417,650,000.00 270,000,000.00 350,000,000.00 350,000,000.00 Works & Energy Total 575,550,188.79 419,424,991.04 499,608,919.91 497,121,054.53 Budget Department of Rec Gross 280,976,994.25 293,399,649.77 298,041,179.36 301,605,531.87 Agriculture, Irrigation, Dev Gross 406,253,435.00 588,000,000.00 400,000,000.00 400,000,000.00 Livestock, Fisheries Total 687,230,429.25 881,399,649.77 698,041,179.36 701,605,531.87 and Cooperative Budget Development Makueni Fruit Rec Gross - - - - Development Dev Gross - 60,000,000.00 60,000,000.00 90,000,000.00 Authority Total - 60,000,000.00 60,000,000.00 90,000,000.00 Budget Department of Rec Gross 124,137,031.22 125,254,900.54 126,651,894.13 127,019,730.70 Water,& sanitation Dev Gross 432,880,000.00 577,050,000.00 564,153,717.56 567,857,473.90 29 | P a g e Department/Enti ty Class FY 22/23 FY 23/24 Budget FY 24/25 FY 25/26 Projected Printed Budget Ceilings Projected Budget Budget Estimates Estimates Estimates Total 557,017,031.22 702,304,900.54 690,805,611.70 694,877,204.60 Budget Sand Authority Rec Gross 59,758,900.57 63,642,065.21 63,424,710.00 61,781,406.91 Dev Gross 30,000,000.00 17,500,000.00 17,500,000.00 20,000,000.00 Total 89,758,900.57 81,142,065.21 80,924,710.00 81,781,406.91 Budget Department of Rec Gross 3,006,834,696.55 3,126,379,332.56 3,163,485,630.42 3,177,082,941.20 Health Services Dev Gross 388,843,500.00 475,800,000.00 475,800,000.00 450,000,000.00 Total 3,395,678,196.55 3,602,179,332.56 3,639,285,630.42 3,627,082,941.20 Budget Department of Rec Gross 323,786,702.23 309,263,466.64 312,532,671.71 313,085,426.95 Devolution, Public Service, Public Dev Gross 66,250,000.00 45,250,000.00 20,000,000.00 110,000,000.00 Participation and Total 390,036,702.23 354,513,466.64 332,532,671.71 423,085,426.95 Special Budget Programmes County Assembly Rec Gross 728,391,627.00 736,094,337.54 737,066,938.67 724,942,604.13 Dev Gross 15,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 Total 743,391,627.00 766,094,337.54 767,066,938.67 754,942,604.13 Budget Overall Budget Rec Gross 6,660,769,154.00 6,866,046,086.87 6,918,007,626.04 6,889,578,219.42 Dev Gross 3,172,014,408.00 3,325,934,083.13 3,593,153,717.56 3,677,857,473.90 Total 9,832,783,562.00 10,191,980,170.00 10,326,767,068.86 10,571,767,068.86 Budget Source; County Treasury 30 | P a g e 7.0 RISK MITIGATION FRAMEWORK FOR FY 2023/24 – FY 2025/25 MEDIUM TERM This chapter outlines the potential risks in the medium term and the mitigation measures the county will put in place to ensure the risks are cushioned. Table 16; Risks and mitigation measures RISK RISK MITIGATION MEASURE CATEGORY Fiscal/Economic Inadequate resources Enhance resource mobilization Risk Inefficiencies in government Strengthen outcome oriented expenditure expenditure Poor performance of the Invest in the productive sector of the economy economy Mandatory annual increment of Enhance resource mobilization wage bill Poor conceptualization, scoping Conduct comprehensive pre-feasibility and costing of projects and and feasibility studies for all projects and programs programs with all stakeholders. Capacity Risks Aging work force Enhance knowledge management and succession management Inadequate human capacity Capacity build and right placement of (number of employees and level staff of knowledge and expertise) Staff turnover Improve work environment and staff welfare Political Risks Changes and Inconsistency in align development strategies to the government priorities government aspirations Legal Risks Inadequate legal and regulatory Develop and implement policies and frameworks regulations Environmental Climate change Develop and implement strategies for Risks risk mitigation and preparedness Social Risks Mental health issues and Awareness creation on mental health and Terminal Illnesses terminal illness among staff 31 | P a g e 8.0 Annexure’s 8.1 Departmental ceilings 8.1.1 FY 2023/24 – FY 2025/26 MTEF Budget Ceilings (in Millions) DEPARTMENT FY 2023/24 FY 2023/24 O&M FY 2023/24 FY 2023/24 FY 2023/24 Salary Ceilings Ceilings Recurrent Ceilings Development Overall Budget Ceiling Ceilings 1 County Attorneys Office 3,182,168.10 19,951,188.65 23,133,356.75 - 23,133,356.75 2 County Public Service Board 35,293,190.95 40,585,314.42 75,878,505.37 20,000,000.00 95,878,505.37 3 Lands, Urban Environment Climate change 59,085,091.25 27,365,768.79 86,450,860.04 322,700,000.00 409,150,860.04 4 Climate change Fund 0.00 0.00 0.00 60,000,000.00 60,000,000.00 5 Wote Municipality 0.00 24,877,971.62 24,877,971.62 70,000,000.00 94,877,971.62 6 Emali Municipality 0.00 16,585,314.42 16,585,314.42 60,000,000.00 76,585,314.42 7 Governship 99,881,925.59 132,682,515.33 232,564,440.93 - 232,564,440.93 8 Trade, Marketing, and Tourism 41,879,055.96 89,877,971.62 131,757,027.58 150,000,000.00 281,757,027.58 9 Gender, Children, Youth, Sports 58,681,235.48 24,877,971.62 83,559,207.10 60,000,000.00 143,559,207.10 10 County Secretary 108,780,875.69 347,194,929.06 455,975,804.75 - 455,975,804.75 11 Finance, Planning, Budget and Revenue 225,964,021.87 234,389,858.12 460,353,879.99 243,934,083.13 704,287,963.12 12 ICT, Education and Internship 387,780,346.18 83,670,628.83 471,450,975.01 275,700,000.00 747,150,975.01 13 Infrastructure, Transport, Public Works 69,669,047.80 79,755,943.25 149,424,991.04 270,000,000.00 419,424,991.04 14 Agriculture, Irrigation, Livestock 258,521,678.15 34,877,971.62 293,399,649.77 588,000,000.00 881,399,649.77 cooperative 15 Makueni Fruit Development Authority 0.00 0.00 0.00 60,000,000.00 60,000,000.00 16 Department of Water and Sanitation 93,742,803.15 31,512,097.39 125,254,900.54 577,050,000.00 702,304,900.54 17 Sand Authority 21,264,093.58 42,377,971.62 63,642,065.21 17,500,000.00 81,142,065.21 18 Department of Health Services 2,403,452,760.48 722,926,572.08 3,126,379,332.56 475,800,000.00 3,602,179,332.56 19 Devolution, Public Service, 226,336,894.55 82,926,572.08 309,263,466.64 45,250,000.00 354,513,466.64 20 County Assembly 345,094,337.54 391,000,000.00 736,094,337.54 30,000,000.00 766,094,337.54 Sub Totals 4,438,609,526.32 2,427,436,560.56 6,866,046,086.87 3,325,934,083.13 10,191,980,170.00 1 | P a g e 8.1.2 FY 2023/24 – FY 2025/26 MTEF Recurrent Budget Ceilings Department FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY FY FY FY Recurrent Recurrent Projected Projected 22/23 23/24 24/25 25/26 Printed Ceilings Recurrent Recurrent Ratio Ratio Ratio Ratio Estimates Ceilings Ceilings 1 County Attorneys Office 13,993,374.69 23,133,356.75 22,894,452.04 21,981,491.68 0.2% 0.3% 0.3% 0.3% 2 County Public Service Board 64,906,167.60 75,878,505.37 75,968,916.70 74,699,671.51 1.0% 1.1% 1.1% 1.1% 3 Lands, Urban Environment Climate change 132,381,860.32 86,450,860.04 87,217,576.03 87,081,621.15 2.0% 1.3% 1.3% 1.3% 4 Climate change Fund - - - - 0.0% 0.0% 0.0% 0.0% 5 Wote Municipality - 24,877,971.62 24,500,711.78 23,281,356.56 0.0% 0.4% 0.4% 0.3% 6 Emali Municipality - 16,585,314.42 16,333,807.85 15,520,904.37 0.0% 0.2% 0.2% 0.2% 7 Governship 174,935,567.17 232,564,440.93 232,550,026.93 228,084,390.36 2.6% 3.4% 3.4% 3.3% 8 Trade, Marketing, and Tourism 53,800,909.12 131,757,027.58 131,231,661.99 127,680,765.25 0.8% 1.9% 1.9% 1.9% 9 Gender, Children, Youth, Sports 90,754,358.05 83,559,207.10 84,355,571.97 84,333,313.95 1.4% 1.2% 1.2% 1.2% 10 County Secretary 450,702,036.70 455,975,804.75 478,492,140.11 462,419,698.90 6.8% 6.6% 6.9% 6.7% 11 Finance, Planning, Budget and Revenue 543,678,354.77 460,353,879.99 461,318,775.74 454,440,186.15 8.2% 6.7% 6.7% 6.6% 12 ICT, Education and Internship 453,830,384.98 471,450,975.01 477,937,765.94 481,747,498.80 6.8% 6.9% 6.9% 7.0% 13 Infrastructure, Transport, Public Works 157,900,188.79 149,424,991.04 149,608,919.91 147,121,054.53 2.4% 2.2% 2.2% 2.1% 14 Agriculture, Irrigation, Livestock cooperative 280,976,994.25 293,399,649.77 298,041,179.36 301,605,531.87 4.2% 4.3% 4.3% 4.4% 15 Makueni Fruit Development Authority - - - - 0.0% 0.0% 0.0% 0.0% 16 Department of Water and Sanitation 124,137,031.22 125,254,900.54 126,651,894.13 127,019,730.70 1.9% 1.8% 1.8% 1.8% 17 Sand Authority 59,758,900.57 63,642,065.21 63,424,710.00 61,781,406.91 0.9% 0.9% 0.9% 0.9% 18 Department of Health Services 3,006,834,696.55 3,126,379,332.56 3,163,485,630.42 3,177,082,941.20 45.1% 45.5% 45.7% 46.1% 19 Devolution, Public Service, 323,786,702.23 309,263,466.64 312,532,671.71 313,085,426.95 4.9% 4.5% 4.5% 4.5% 20 County Assembly 728,391,627.00 736,094,337.54 737,066,938.67 724,942,604.13 10.9% 10.7% 10.7% 10.5% Total 6,660,769,154.00 6,866,046,086.87 6,943,613,351.30 6,913,909,594.96 2 | P a g e 8.1.3 FY 2023/24 – FY 2025/26 MTEF Development Budget Ceilings Department FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY FY FY FY Printed Development Projected Projected 22/23 23/24 24/25 25/26 Estimates Ceilings Development Development Ratio Ratio Ratio Ratio Development Ceilings Ceilings Budget 1 County Attorneys Office - - - - 0.0% 0.0% 0.0% 0.0% 2 County Public Service Board 53,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 1.7% 0.6% 0.6% 0.5% 3 Lands, Urban Environment Climate change 87,200,000.00 322,700,000.00 80,000,000.00 80,000,000.00 2.7% 9.7% 2.2% 2.2% 4 Climate change Fund - 60,000,000.00 60,000,000.00 60,000,000.00 0.0% 1.8% 1.7% 1.6% 5 Wote Municipality 68,000,000.00 70,000,000.00 70,000,000.00 70,000,000.00 2.1% 2.1% 1.9% 1.9% 6 Emali Municipality - 60,000,000.00 60,000,000.00 20,000,000.00 0.0% 1.8% 1.7% 0.5% 7 Governship - - - - 0.0% 0.0% 0.0% 0.0% 8 Trade, Marketing, and Tourism 80,000,000.00 150,000,000.00 150,000,000.00 150,000,000.00 2.5% 4.5% 4.2% 4.1% 9 Gender, Children, Youth, Sports 36,520,000.00 60,000,000.00 60,000,000.00 60,000,000.00 1.2% 1.8% 1.7% 1.6% 10 County Secretary - - - - 0.0% 0.0% 0.0% 0.0% 11 Finance, Planning, Budget and Revenue 810,867,473.00 243,934,083.13 690,000,000.00 880,000,000.00 25.6% 7.3% 20.4% 24.1% 12 ICT, Education and Internship 279,550,000.00 275,700,000.00 275,700,000.00 300,000,000.00 8.8% 8.3% 7.7% 8.2% 13 Infrastructure, Transport, Public Works 417,650,000.00 270,000,000.00 350,000,000.00 350,000,000.00 13.2% 8.1% 9.7% 9.5% 14 Agriculture, Irrigation, Livestock cooperative 406,253,435.00 588,000,000.00 400,000,000.00 400,000,000.00 12.8% 17.7% 11.1% 10.9% 15 Makueni Fruit Development Authority - 60,000,000.00 60,000,000.00 90,000,000.00 0.0% 1.8% 1.7% 2.4% 16 Department of Water and Sanitation 432,880,000.00 577,050,000.00 564,153,717.56 567,857,473.90 13.6% 17.4% 15.7% 15.4% 17 Sand Authority 30,000,000.00 17,500,000.00 17,500,000.00 20,000,000.00 0.9% 0.5% 0.5% 0.5% 18 Department of Health Services 388,843,500.00 475,800,000.00 475,800,000.00 450,000,000.00 12.3% 14.3% 13.2% 12.2% 19 Devolution, Public Service, 66,250,000.00 45,250,000.00 20,000,000.00 110,000,000.00 2.1% 1.4% 0.6% 3.0% 20 County Assembly 15,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 0.5% 0.9% 0.8% 0.8% Total 3,172,014,408.00 3,325,934,083.13 3,593,153,717.56 3,677,857,473.90 3 | P a g e 8.1.4 FY 2023/24 – FY 2025/26 MTEF Overall Budget Ceilings Department FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY FY FY FY Printed Budget Budget Ceilings Projected Budget Projected Budget 22/23 23/24 24/25 25/26 Estimates Ceilings Ceilings Ratio Ratio Ratio Ratio 1 County Attorneys Office 13,993,374.69 23,133,356.75 22,894,452.04 21,981,491.68 0.1% 0.2% 0.2% 0.2% 2 County Public Service Board 117,906,167.60 95,878,505.37 95,968,916.70 94,699,671.51 1.2% 0.9% 0.9% 0.9% 3 Lands, Urban Environment Climate 219,581,860.32 409,150,860.04 167,217,576.03 167,081,621.15 2.2% 4.0% 1.6% 1.6% change 4 Climate change Fund - 60,000,000.00 60,000,000.00 60,000,000.00 0.0% 0.6% 0.6% 0.6% 5 Wote Municipality 68,000,000.00 94,877,971.62 94,500,711.78 93,281,356.56 0.7% 0.9% 0.9% 0.9% 6 Emali Municipality - 76,585,314.42 76,333,807.85 35,520,904.37 0.0% 0.8% 0.7% 0.3% 7 Governship 174,935,567.17 232,564,440.93 232,550,026.93 228,084,390.36 1.8% 2.3% 2.2% 2.2% 8 Trade, Marketing, and Tourism 133,800,909.12 281,757,027.58 281,231,661.99 277,680,765.25 1.4% 2.8% 2.7% 2.6% 9 Gender, Children, Youth, Sports 127,274,358.05 143,559,207.10 144,355,571.97 144,333,313.95 1.3% 1.4% 1.4% 1.4% 10 County Secretary 450,702,036.70 455,975,804.75 478,492,140.11 462,419,698.90 4.6% 4.5% 4.6% 4.4% 11 Finance, Planning, Budget and Revenue 1,354,545,827.77 704,287,963.12 1,151,318,775.74 1,334,440,186.15 13.8% 6.9% 11.1% 12.6% 12 ICT, Education and Internship 733,380,384.98 747,150,975.01 753,637,765.94 781,747,498.80 7.5% 7.3% 7.2% 7.4% 13 Infrastructure, Transport, Public Works 575,550,188.79 419,424,991.04 499,608,919.91 497,121,054.53 5.9% 4.1% 4.8% 4.7% 14 Agriculture, Irrigation, Livestock 687,230,429.25 881,399,649.77 698,041,179.36 701,605,531.87 7.0% 8.6% 6.6% 6.6% cooperative 15 Makueni Fruit Development Authority - 60,000,000.00 60,000,000.00 90,000,000.00 0.0% 0.6% 0.6% 0.9% 16 Department of Water and Sanitation 557,017,031.22 702,304,900.54 690,805,611.70 694,877,204.60 5.7% 6.9% 6.6% 6.6% 17 Sand Authority 89,758,900.57 81,142,065.21 80,924,710.00 81,781,406.91 0.9% 0.8% 0.8% 0.8% 18 Department of Health Services 3,395,678,196.55 3,602,179,332.56 3,639,285,630.42 3,627,082,941.20 34.5% 35.3% 34.6% 34.3% 19 Devolution, Public Service, 390,036,702.23 354,513,466.64 332,532,671.71 423,085,426.95 4.0% 3.5% 3.2% 4.0% 20 County Assembly 743,391,627.00 766,094,337.54 767,066,938.67 754,942,604.13 7.6% 7.5% 7.3% 7.1% Total 9,832,783,562.00 10,191,980,170.00 10,326,767,068.86 10,571,767,068.86 4 | P a g e 8.2 MEDIUM TERM FLAGSHIPS No Project/Programme Name Location FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 1 County Ward Model Health Centres All Wards (1 30,000,000.00 100,000,000.00 100,000,000.00 100,000,000.00 Per Ward) 2 Automation of Government processes and Services Countywide 100,000,000.00 250,000,000.00 400,000,000.00 500,000,000.00 3 Makueni County Urbanization Agenda (MCUA) - 30 by County Wide 120,000,000.00 200,000,000.00 200,000,000.00 200,000,000.00 30 4 Water Fund County Wide 244,500,000.00 300,000,000.00 300,000,000.00 300,000,000.00 5 Public Service Re-engineering County Wide 10,000,000.00 6 Industrialization Development County Wide 50,000,000.00 100,000,000.00 7 Agricultural Value Chains Development County Wide 150,000,000.00 150,000,000.00 150,000,000.00 150,000,000.00 9 Social Protection and Inclusive Development County Wide 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 10 County Resource Mobilization (External and Own Source County Wide 41,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 Revenues) 11 Electrification programme County Wide 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 12 Universal Health Care Programme County Wide 250,000,000.00 250,000,000.00 250,000,000.00 250,000,000.00 13 CTTI Capitation County Wide 25,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 14 ECDE Capitation County Wide 25,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 15 Youth Empowerment County Wide 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 16 Construction of Executive office Block Wote 70,000,000.00 70,000,000.00 17 Climate change initiative programmes/ fund County Wide 60,000,000.00 60,000,000.00 60,000,000.00 60,000,000.00 18 Disaster mitigation and preparedness County Wide 20,000,000.00 30,000,000.00 19 Construction of store at MFPP Makueni 10,000,000.00 20,000,000.00 20 Construction of Makueni County food and agriculture Makueni 15,000,000.00 100,000,000.00 120,000,000.00 laboratory 21 Irrigation development County Wide 10,000,000.00 150,000,000.00 100,000,000.00 5 | P a g e 8.3 OWN SOURCE REVENUE PROJECTIONS No SOURCES FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 Projections Projections Projections Projections A) OWN SOURCES 1 Agriculture- Mechanization 2,000,000.00 1,500,000.00 1,575,000.00 1,653,750.00 2 ASK Show 2,000,000.00 2,000,000.00 2,100,000.00 2,205,000.00 3 BMT (Market Entrance) 45,000,000.00 25,000,000.00 30,000,000.00 35,000,000.00 4 Single Business Permits /Application/Conservancy fees 135,000,000.00 135,000,000.00 141,750,000.00 149,000,000.00 5 Application & conservancy 10,000,000.00 7,200,000.00 7,560,000.00 7,938,000.00 6 Parking 40,000,000.00 25,000,000.00 26,250,000.00 27,562,500.00 7 Stock Market 15,000,000.00 8,000,000.00 8,400,000.00 8,820,000.00 8 Stock Movement 5,000,000.00 5,000,000.00 5,250,000.00 5,512,500.00 9 Renewal Fee(Kiosks) 6,000,000.00 5,000,000.00 5,250,000.00 5,512,500.00 10 Agricultural Cess 22,000,000.00 14,000,000.00 14,700,000.00 15,435,000.00 11 Liquor License 60,000,000.00 37,000,000.00 48,850,000.00 40,792,500.00 12 Building Materials cess 5,000,000.00 2,500,000.00 2,625,000.00 2,756,250.00 13 Communication masts 5,000,000.00 2,500,000.00 2,625,000.00 2,756,250.00 14 Advertisement & Wall Branding 15,000,000.00 13,000,000.00 15,000,000.00 16,000,000.00 15 Fines and Penalties 5,100,000.00 1,000,000.00 1,050,000.00 1,102,500.00 16 Stall Rent 3,200,000.00 1,000,000.00 1,050,000.00 1,102,500.00 17 Motor Veh/Cycle Reg 5,000,000.00 2,500,000.00 2,625,000.00 2,756,250.00 18 Fire certificate 200,000.00 1,000,000.00 1,050,000.00 1,102,500.00 19 Development Approvals( all lands development fees 35,000,000.00 22,000,000.00 24,000,000.00 25,000,000.00 20 Plot Rates/Rent & other dues 135,000,000.00 170,000,000.00 181,000,000.00 190,048,750.00 21 Water & Environment- Consent, Nema, mining, penalties 7,000,000.00 2,000,000.00 2,100,000.00 2,205,000.00 22 Hire of County Facilities / Equipment /Gym 200,000.00 500,000.00 525,000.00 551,250.00 25 Training - - 26 Coop Audit services 300,000.00 300,000.00 315,000.00 330,750.00 27 Weights & Measures 1,500,000.00 1,500,000.00 2,000,000.00 2,500,000.00 Sub Total 559,500,000.00 484,500,000.00 527,650,000.00 547,643,750.00 6 | P a g e AIA 1 Agriculture- Agricultural Training Conference 5,000,000.00 5,000,000.00 5,250,000.00 5,512,500.00 2 Public health 50,000,000.00 25,000,000.00 26,250,000.00 27,562,500.00 3 Health FIF 150,000,000.00 120,000,000.00 130,000,000.00 132,300,000.00 4 NHIF and Linda Mama Reimbursement 300,000,000.00 250,000,000.00 292,075,000.00 271,593,750.00 5 Health UHC Registration 35,000,000.00 20,000,000.00 21,000,000.00 22,050,000.00 6 Makueni Fruit Processing Plant AIA 100,000,000.00 50,000,000.00 50,000,000.00 88,200,000.00 7 Sand Authority AIA 30,000,000.00 35,000,000.00 36,750,000.00 38,587,500.00 8 Veterinary Health AIA 15,000,000.00 10,000,000.00 10,500,000.00 11,025,000.00 9 Community Information Centres AIA 500,000.00 500,000.00 525,000.00 525,000.00 Sub Total 685,500,000.00 515,500,000.00 572,350,000.00 597,356,250.00 TOTAL OWN SOURCE REVENUE 1,245,000,000.00 1,000,000,000.00 1,100,000,000.00 1,145,000,000.00 8.4 KEY PERFORMANCE INDICATORS 1. Agriculture, Rural Development Sector Programme Name Key Performance Indicators Baseline 2021 2022/23 2023/24 2024/25 2025/26 Targets Targets Targets Targets Agriculture extension and No. of farmers adopting D.A technologies 77,400 87,100 96,800 capacity development No. of male farmers utilizing D.A technologies 25,800 29,000 32,200 No. of female farmers utilizing D.A technologies 51,600 58,100 64,600 No. of youth and PWDs trained and mentored into the DAT 7,740 8,710 9,680 Number of agricultural extension services automated 3 4 5 Value chain development Quantity of Mango fruit produced in MT 281,425 288,461 295,496 310,271 325,785 Value chain development Area (Ha) under Mango farming 29,409 30,144 30,879 32,423 34,045 Value of Mangoes Produced in (Million Shillings) 4,221 4,311 4,400 4,700 4,900 Quantity of mangoes purchased by the (MCFDMA) in (MT) 1,182 1,341 1,500 1,600 1,800 Quantity of Puree produced by the (MCFDMA)in MT 619 685 750 820 922.5 Value of Puree produced by (MCFDMA) in Million Shillings 45 50 54 59 66 Quantity of ready to drink juice produced by the (MCFDMA) in ‘000 litres - 3,000 3,300 3,600 Quantity Citrus fruit produced in MT 192,335 197,144 201,952 212,049 222,652 Area (Ha) under Citrus fruit farming 8,660 8,877 9,093 9,548 10,025 Value of Citrus fruit Produced in (Million shillings) 2,493 2,547 2,600 2,700 2,900 7 | P a g e Programme Name Key Performance Indicators Baseline 2021 2022/23 2023/24 2024/25 2025/26 Targets Targets Targets Targets Annual Area under Avocado farming in Ha 380 366 351 364 400 Quantity of Avocado produced annually in MT 7,375 8,113 8,850 9,735 10,709 Value of Avocado fruit Produced annually in million shillings 258 284 310 341 375 MT of Tomatoes produced 25,285 26,285 27,285 28,580 30,000 Area under Tomatoes farming in Ha 792 472 151 160 176 Values of Tomatoes produced (Million Kshs) 759 789 819 857 900 Annual Area (Ha) under coffee 865 897 929 1,037 1,144 MT of coffee produced annually 242 251 260 290 320 Value of coffee produced annually in Millions 13 14 14.3 15.95 17.6 Annual Area (Ha) under macadamia 183 202 220 260 310 MT of macadamia produced annually 878 967 1,055 1,247 1,487 Value of macadamia produced annually in Millions (Kshs) 176 194 211 249.4 297.4 Annual Area (Ha) under cotton 2,491 2,616 2,746 MT of cotton produced annually 3,114 3,270 3,433 Value of cotton produced annually in Millions (Kshs) 115 121 127 Annual acreage(Ha) under castor oil seeds 640 704 775 MT of castor oil seeds produced annually 960 1,056 1,162 Value of castor oil seeds produced annually in millions (Kshs) 24 26.4 29 MT of green grams produced annually 40,072 45,842 51,611 54,192 56,901 Annual area (Ha) under green grams 66,805 66,155 65,505 68,780 72,219 Value of green grams produced annually in Million Shillings 2,800 2,850 2,900.00 3,100.00 3,300.00 MT of cow peas produced annually 46,556 52,376 58,196 61,106 64,161 Annual areas (Ha) under cow peas 60,564 60,564 60,564 63,592 66,772 Value of cow peas produced annually in Million Shillings 1,200 1,300 1,400.00 1,500.00 1,600.00 MT of Pigeon peas produced annually 63,981 67,756 71,530 75,107 78,862 Annual area (Ha) under Pigeon peas 729,279 400,569 71,859 75,452 79,225 Value of Pigeon peas produced annually in Kshs Millions 3,100 3,300 3,500.00 3,700.00 3,900.00 MT of beans produced annually 29,398 30,149 30,900 32,400 34,000 Annual area (Ha) under beans 43,186 43,143 43,100 45,300 47,600 Value of beans produced annually in Kshs Millions 1,864 1,930 1,995 2,095 2,200 Quantity of pulses processed by the value addition plant in Makindu in 40 80 100 120 130 Metric tonnes Revenue generated by the value addition plant in Makindu in Million - 24 19 23 25 Shillings 8 | P a g e Programme Name Key Performance Indicators Baseline 2021 2022/23 2023/24 2024/25 2025/26 Targets Targets Targets Targets MT of maize produced annually 88,670 131,340 174,010 182,711 191,846 Annual area (Ha) under maize 132,841 132,771 132,700 139,335 146,302 Value of maize produced annually in Kshs Millions 2,068 3,150 4,231 4,442 4,664 MT of sorghum produced annually 7,713 9,157 10,601 11,131 11,688 Annual area (Ha) under sorghum 10,256 10,256 10,256 10,769 11,307 Value of sorghum produced annually in Kshs Millions 242 262 282 297 312 Annual Population of Poultry disaggregated into specific type 1,549,344 1,689,722 1,830,100 1,900,500 2,080,000 Total number of trays of eggs produced annually 1,304,014 1,343,007 1,382,000 1,493,000 1,629,000 MT of poultry meat produced annually 5550 5,772 5,994 6,593 7,319 Values of eggs produced annually in Million Kenya Shillings 522 572 622 747 896 Values of poultry meat produced annually in Kenya Million shillings 2,886 2,342 1,798 2,308 2,561 No. of cattle Artificial Insemination services offered 112 5,000.00 8,000 9,000 9,000 Total milk produced annually in ‘000 litres 27,758 28,429 29,100 30,600 32,100 Value of milk produced (Million Shillings) 1,665 1,715 1,765 1,871 1,984 Total beef produced in (‘000 Kgs) 4,559 4,650 4,741 4,932 5,129 Value of beef produced (‘000,000 Kshs) 2,507,717 1,255,159 2,600 2,660 2713 No. of farmers practicing Goat and Sheep farming 93,150 103,500 115,000 127,000 139,000 Total chevon and mutton produced in (MT) 2,509 2,493 2476 2624 2782 Value of chevon and mutton produced (Kshs) 1,631 1,682 1,733 1,837 1,948 MT of honey produced 668 652 635 660 686 Value of honey produced (in Millions Kshs) 568 507 445 462 481 Quantity of fish produced (Tonnes) 8.8 9 9 10 11 Value of fish produced (Kshs) million 4.7 4 3.6 4 4.4 No. of active fish ponds in the county 567 594 620 680 750 Agricultural Credit & Input No. of farmers’ farmers linked to agriculture financing organization for 30,000 30,000 45,000 credit Amount of credit extended to farmers (In Millions Kshs) 150 150 150 No. of farmers benefiting from farm inputs with government support 50,000 75,000 100,000 Agricultural Mechanization Area of land prepared annually (Ha) 153 300 350 400 450 No. of hay bales prepared annually 5,360 8,000.00 10,000 15,000 20,000 No. of farm ponds constructed annually 567 300 200 250 300 Pest and Disease Control No. of farmers trained on integrated pest management in crops 77,400 87,100 96,800 Incidences of notifiable pest and diseases reported 2,000 2,500 3,000 No. of laboratory diagnostic reports 200 300 300 9 | P a g e Programme Name Key Performance Indicators Baseline 2021 2022/23 2023/24 2024/25 2025/26 Targets Targets Targets Targets No. of livestock vaccinated 150,000 200,000 200,000 No. of farms certified as pest and disease free 10 15 20 Irrigation Development No. of irrigation schemes established/rehabilitated 3 3 3 Total areas in Ha under irrigation 24 24 24 No. new of HHs carrying out irrigated agriculture in the public schemes 100 100 100 Soil and water conservation Length in km of soil and water conservation structures developed 400 500 600 Area under soil and water conservations in Ha 1,500 2,950 3,760 Rangeland Restoration No of farmers trained on range and grassland management 1,423 1,637 1,882 Area of Rangeland in Hectares that has been rehabilitated or restoration 2,070 2,380 2,378 Climate Change Resilience No. of farmers trained in climate smart agriculture technologies 25,800 29,000 32,200 No. of farmers undertaking insurance services for their agricultural ventures 5,000 5,500 6,000 Cooperative Development No. of dormant cooperatives revived 10 10 10 10 No. of new cooperatives formed 12 12 12 12 % compliance with the statutory requirements 50 55 60 No of co-operatives with improved governance and Accountability 70 90 110 No. of cooperatives automating their services 4 8 8 Annual turnover for cooperative societies (Kshs Millions) 190 235 280 285 290 Total No. of active cooperative membership in the county 30,837 33,900.00 37,300.00 41,000.00 45,100.00 Total members deposit in the cooperatives 360 320 352 387 426 Total Share capital in the cooperatives 188 187 187 190 193 No. of cooperatives access the operationalized Cooperative Development 20 30 40 funds B. Lands, Urban Development Sub Sector No Programme Development Outcome Key Performance Indicator Target FY Target Target 2023/24 2024/25 2025/26 1 Land Survey Mapping and Increased security of land No of title deeds issued 4,000 4,000 4,000 Titling tenure 2 Physical Planning Improved land use planning and No of approved and implemented physical land use plans 10 10 10 development control No of technologies adopted in GIS Lab in county planning 10 15 20 3 Urban Development Improved urban infrastructure No of Municipalities Established 1 1 1 10 | P a g e development KMs of urban roads improved to tarmack and cabro status 50 50 50 Improved land based revenue Proportion of land based revenue streams automated 20% 30% 40% 4 Environment and Natural Improve environmental and No. of county forests mapped and surveyed 2 2 2 Resource natural resources utilization and Area (Ha) of County Forests and catchment areas restored 15 15 15 management No. of environmental pollution incidents reported, investigated and 15 15 15 managed No. of SEA, EIAs and Environmental Audits done 12 15 18 No. of farmer groups, conservation groups and institutions trained 5 5 5 No. of minerals mapped and development 1 1 2. Roads, Transport, Infrastructure, Public Works , Energy & ICT Sector No Programme Development Outcome Key Performance Indicators 2023/24 2024/25 Targets 2025/26 Targets Targets Road improvement programme Improved connectivity and accessibility Number of Km of road opened 50 30 20 Number of kilometers upgraded to bitumen/ cabro 12 12 15 standards Number of Km of road graveled 300 350 400 Number of kilometers of road graded 3000 3500 400 Number of drifts/ box culverts constructed 25 30 30 Number of bridges and footbridges construct 1 1 2 road for water structures (CDD Programme) 500000 500000 500000 public transport coordination programme 50% 70% 100% 2 Energy development Enhanced access to reliable and Clean Number of high mast floodlights installed (Solar & 10 20 25 energy electricity powered) No of households adopting use of green energy 20,000 30,000 40,000 No. of sensitization on green energy 50 100 250 No. of streetlights/ flood installed (Solar & electricity 250 300 500 powered % of electricity connection 30% 32% 35% 3 Urban development Improved urban livability Kilometers of Storm Water drainage channels 5 10 10 Area of non-motorable facilities constructed and 5000SM 10,000SM 20,000SM parking areas 4 Low cost housing promotion Increased access to decent housing Number of affordable houses constructed and 25 50 100 renovated No. of county offices constructed 2 2 2 11 | P a g e 3. Water and Sanitation Sector Program Indicator Baseline Targets Medium Term Targets 2021 2022/23 2023/24 2024/25 2025/26 Access to water The proportion of HHs accessing water from improved water sources (%) 44 48 52 56 60 The proportion of HHs accessing water from unimproved water sources (%) 56 52 48 44 40 Average distance ( km) to water points 4.0 3.6 3.2 2.8 2.4 Integrated Water No. of mega dams constructed of ≥ 200M M3 complete with treatment system, 0 0 1 - - harvesting, Storage, distribution and irrigation infrastructure (Thwake Multipurpose) Treatment & Distribution No. of large dams constructed of ≥ 750,000M3 complete with treatment system, 0 0 4 - 4 distribution and irrigation infrastructure No. of medium sized dams of 500,000M3 constructed/ desilting/ expansion/ 0 1 6 6 6 rehabilitated No. of small dams of 50,000M3 & < 500,000M3 constructed/ desilting/ expansion/ 76 5 15 20 30 rehabilitated No. of sand dams/Weirs with Sumps constructed/ rehabilitated 40 4 20 20 20 No. of Boreholes Drilled & Equipped 119 17 30 30 30 No. of Rock Catchments Constructed 3 0 - 2 - Kms. of Water Pipeline completed with water kiosk/ water points 832.32 250 350 350 350 No. of water treatment systems installed in unimproved water sources (CFU, Chlorine 0 1 1 1 dosing units etc.) Proportion of Rural Households accessing piped water 30% 50% 60% No. of Urban Households with access to piped water 7,922 9,420 10,920 12,420 No. of urban centres/markets connected with reliable piped water 3 4 40 100 160 Urban and Rural Water No. of Water Service Providers meeting over 70% compliance as set ou t in the 3 3 3 3 3 Governance regulators’ guidelines. Proportion of Community water schemes/ projects managed by Sustainability 40% 50% 60% 70% Management Committees meeting the set governance criteria as per the Water Act, 2020. No. of Community water schemes/ projects sustainability management committees’ 90 90 100 150 200 capacity built on effective water management and sustainability. 12 | P a g e Sanitation The proportion of HHs accessing improved sanitation services (%) 85 % of urban centers with access to sewerage system 0 Number of constructed DTFs 3 0 1 1 1 No. of functional waste management facility 0 0 2 2 No of sanitation facilities constructed 12 5 10 5 5 No of skips purchases 10 10 10 10 10 Forest and Landscape No of hectares reseeded Restoration no of tree seedlings planted 91,000 50,000 100,000 100,000 100,000 No. of protected fragile zones 2 2 2 2 2 No of landscapes/forest restored 2 1 2 2 2 No of rivers rehabilitated No of designated sand harvesting sites Climate Change No of climate adaptation projects 16 1 5 5 5 Resilience and Response No of climate smart technologies promoted 0 0 2 2 2 Percentage of county population who are recipients of Climate Information Services 0 1 1 1 1 for early warning No of community based investments guided by climate information 16 1 5 5 5 Environmental No of legal frameworks developed 2 1 3 Conservation and No of county projects with EIA and EA 15 5 20 20 20 Management No of Environmental sensitization fora 43 30 50 50 50 4. Health Services Sector No Programme Development Outcome Key Performance Indicator Target FY Target Target 2023/24 2024/25 2025/26 1 Preventive & Increased access to Proportion of pregnant women attending ANC receiving Iron and Folic Acid Supplement 90 100 100 Promotive services essential primary Percentage of mothers attending at least 4 ANC 65% 70% 73% healthcare Skilled birth attendance rate 88% 90% 92% Proportion of birth taking place in health facilities 92% 100% 100% Proportion of children under one Fully immunized 95% 98% 98% No. of CHVs trained on nutrition 1500 2000 3000 Proportion of expectant women LWHIV who are currently on ART 93 94% 95% 13 | P a g e No. women of Reproductive age screened for Cervical cancers 1000 1500 2000 % of new outpatients with mental health conditions attended 4.5 5% 6% No. of Community awareness campaigns conducted on WASH 20,000 30,000 40,000 No. of clients counselled at facility level 25000 30000 30000 No. of community mental outreaches conducted 15000 20000 40000 2 Curative and Improved efficiency Average length of stay in hospital 7.0 days 6.2 days 6.0days Rehabilitative and effectiveness of No. of facility mortality rate audited 10,000 8,000 7,000 health services No. of maternal mortality audited 20 15 12 No. of patients undergoing occupational therapy 6000 6500 100000 % of time out of stock for Essential Medicines and Medical Supplies (EMMS) – 45% 35% 30% No. of joint activities addressing one health concept including AMR 1 20 25 Planning and Improved access to No. of Model Sub county Hospitals established 3 3 3 Administration health services No. of Model Ward Health facilities established 6 15 30 Programme No. of facilities with specialized clinics 1 1 1 No. of inpatient Psychiatrist unit established 1 1 1 A model cancer care unit at MCRH 1 1 1 No. of facilities with amenity wards 6 3 6 No. of functional community health committees 240 240 240 Doctor to Patient ratio 1/12000 1/10000 1/10000 5. General Economic and Commercial Affairs Sector Programme Indicators Baseline 2021 Targets Medium Term Targets 2022/23 2023/24 2024/25 2025/26 Trade development and No. of MSMEs trained 35 100 120 140 180 promotion No. of stakeholders’ fora held 4 2 3 4 6 No. of trade infrastructure developed and renovated 5 4 4 4 4 Disbursement of loans to traders in Ksh. Millions 0 50 100 150 200 No. of weighing and measuring equipment verified 6,026 7,500 7,550 7,600 7,000 No. of weighing and measuring equipment inspected 1,236 1,500 1,550 1,600 1,700 No. of policies approved by The County Assembly 3 1 1 1 0 Industrial development Number of products developed 6 6 5 5 5 Number of innovations supported 0 6 8 10 10 Number of Jua Kali association supported 4 6 6 6 6 Complete incubation Centre 0 1 1 0 0 Marketing and market Number of producers linked to market 0 24 30 35 45 14 | P a g e linkages No. of trade fairs and exhibitions held 0 4 4 4 4 No. of Business to Business fora held 0 4 4 4 4 Approved marketing policy 0 1 0 0 0 Tourism development No. of tourism site promoted 0 0 2 2 2 and promotion No. of circuits promoted 0 2 1 1 1 No. of activities implemented in the master plan 0 2 2 2 2 No. of stakeholders engaged 1 2 2 2 2 Cooperative development No. of new cooperative registered 7 5 5 5 5 No. of cooperative audited 62 80 100 120 160 No. of cooperatives inspected 46 60 80 100 140 6. Devolution Sector Program Key Performance indicators Baseline Targets Medium Term Targets 2021 2022/23 2023/24 2024/25 2025/26 Public service Reforms No. of automated HR processes 0 0 10 5 5 % of operationalized of UHRIS 0 20% 30% 30% 20% No. of HR functions decentralized 0 6 6 6 6 Record management system 0 0 1 1 1 General Administration and planning No. of Policies 44 3 5 5 5 No. of systems and structures established 11 2 2 1 1 ISO certification 0 1 1 1 1 Legal services No. of Office of the county attorney 1 1 1 1 1 No. of cases closed 3 2 2 2 2 Leadership and coordination of government business Number of cabinet meetings 52 52 52 52 52 No of employees under medical cover 3800 3800 3800 3800 3800 Number of cabinet memos generated 40 40 40 40 40 No. Performance Management of reports 6 6 6 6 6 Public Service Management Employee satisfaction report 0 1 1 1 1 Office Blocks 0 1 1 1 1 No. of employees promoted 400 400 500 500 500 Devolution Affairs Management % Realization of the County’s devolution dividend 50% 30% 30% 30% - County Government Coordination No. of sub county offices 3 1 2 - - No. of ward offices 0 2 10 10 8 County Enforcement and compliance % of Compliance 25% 30% 40% 30% 10% 15 | P a g e Disaster management and risk reduction No. of disaster units and fire station 1 2 2 1 1 Enhanced Citizen Engagement No of community members involved in development decision 120,0000 120,0000 140,0000 150,0000 180,0000 making Strengthening self-governance and community led No of CDD Projects 357 377 377 377 377 development Operational Local development Organization (LDO) 1 1 1 1 1 Public Finance Management No of financial reports 16 16 16 16 16 Annual financial statements 1 1 1 1 1 No. of audit reports 8 8 8 8 8 Amount of Own Source Revenues Collected in Millions 749 800 850 900 950 Approved ADP,CBROP,CSFP, PER,SWG, PBB, IFMIS 1 1 1 1 1 ,Periodical data/statistical abstract ,Budget Periodic M & E reports (CAPR) 4 4 4 4 4 7. Social Protection, Education, Culture and Recreation Sector A. Gender, Youth and Social Services Sub-Sector Program Key Performance indicators Baseline Targets Medium Term Targets 2021 2022/23 2023/24 2024/25 2025/26 Social Protection Number of elderly persons supported with food materials and other 1664 1500 1500 1950 2500 materials Number of PWDs provided with assorted assistive devices and other 1081 1000 1000 1300 1690 material support. Number of OVC children supported with food materials, non-food 2300 2000 1000 1300 1690 materials , rescued, and offered psychosocial support No. of beneficiaries of the initiative 3000 4000 5000 6000 7000 Sexual and Gender Based Violence Prevention and No. of cases reported 728 582 465 372 297 Mitigation Conservation, Preservation and Promotion of Arts, No. of cultural festivals and exhibitions held 3 4 5 6 7 Culture and Heritage No. of trainings on intellectual property rights 1 3 4 6 8 No. of artists promoted and supported in the cultural and creative industries 52 130 145 165 185 Youth empowerment No of apprentices recruited and placed under Makueni Youth 304 300 360 420 480 Apprenticeship Program No of youth recruited and placed under Ajira Kwa Vijana Program 1,200 1200 1,440 1,680 1,920 No of youth under Ujuzi teketeke Program 184 200 240 280 320 No. of boda boda youth trained and licensed 1,421 300 360 420 480 No. of youth under Makueni Youth in Agribusiness Empowerment project 1,244 60 72 84 96 No of youth serving organizations supported through grants 4 30 36 42 48 16 | P a g e No of Youth Trained under Building and construction 2,973 900 1,080 1,260 1,440 Sports Development & Management No of sports talent academies and facilities established and operationalized 1 1 1 1 1 No of playfields rehabilitated and standardized 1 3 3 3 3 Number of sports leagues (Ligi-Mashinani/Supa Cup/KYISA) conducted in 4 4 5 5 5 the county No of young people involved in professional sports 20 25 30 35 40 Number of federations officials, referees and coaches trained 504 500 500 600 700 B. Education Sub-sector Programme Name Key Performance Indicator Baseline Target 2022/23 Target Target 2024/25 Target 2021/22 2023/24 2025/26 Technical and Vocational Training No. of model CTTIs constructed/rehabilitated 11 9 10 8 6 No. of model CTTIs equipped with relevant tools and 7 3 7 10 11 materials No. of instructors employed 154 30 30 30 10 Proportion of instructors trained 100% 100% 100% 100% 100% Instructor/trainee ratio 1:32 1:30 1:28 1:27 1:28 No. of graduate trainees annually 2500 3000 3300 3500 4000 Total Enrolment 5000 5500 6000 6500 7000 Income generated by CTTIs annually 1.5M 1.7M 2.0M 3.5M 5.0M Early Childhood Development No. of ECDE centres constructed/rehabilitated 268 20 20 20 Number of model ECDE centres constructed or upgraded 2 2 2 No. of ECDE pupils enrolled 43,511 44,000 45,000 46,000 47,000 No. of teachers who have benefitted from relevant 2,300 2,400 2,420 2,440 2,460 training No. of teaches trained to integrate learning for PWDs 2,300 2,400 2,420 2,440 2,460 No. of teachers compliant to CBC 2,300 2,400 2,420 2,440 2,460 No. of ECDE centres with Feeding programme 0 1,267 1,267 1,267 No. of ECDE children enlisted in the feeding programme 0 45,000 46,000 47,000 County Bursary and Scholarship No. of learners awarded bursary 2,403 3,000 4,000 4,500 5,000 Programme No. of learners awarded scholarships 531 621 711 801 891 Youth Enterprise Development No. of youth under internship/mentorship/volunteerism 79 90 90 90 90 ICT infrastructure development No. of network security licenses purchased 566.00 617.00 568.00 17 | P a g e Programme Name Key Performance Indicator Baseline Target 2022/23 Target Target 2024/25 Target 2021/22 2023/24 2025/26 No. of surveillance systems (Cameras and NVRS 4 4 4 deployed) No. of facilities connected with LAN complete with user 11 17 14 support equipment and training No. of NoFBI termination sites lit / established/ upgraded 4 7 4 No. of public Wi-Fi hotspots created within the county 3 4 4 designated public spaces Number of sub-county service delivery(Huduma) centres 1 2 1 established No. of data recovery sites Established/Upgraded 1 1 1 Number of ICT workstations(computer 120 100 100 hardware,softwares and peripherals established, maintained and insured Modernized and Automated teleconferencing facility in 1 1 1 Wote social hall Number of ICT equipment disposed through e-waste 600 600 600 management Automation of Government Services Proportion of government services that have been 30% 50% 60% automated disaggregated per department ICT training and innovation promotion No. of New CIC established in the county 3 3 3 No. of ICT Programmes provided to county staff and 2 2 2 community members trained in the CICs disaggregated by number, gender and age County ICT literacy level 33% 40% 45% Number of ICT innovation catalytic programmes 1.00 1 1 No. of innovations and research works completed 2 2 2 Number of ECDE pupils benefiting from the digital 43,000 44,000 45,000 learning programme 18 | P a g e