. COUNTY FISCAL STRATEGY PAPER 2016 z \ fj — 7 FOREWORD The Migori County 2016 Fiscal Strategy Paper sets out the framework for the preparation of the 2016/2017 budget as required under Section 117 of the Public Finance Management Act, 2012. It articulates economic policies and structural reforms as well as sector based expenditure programs that the County intends to implement in line with the Annual Development Plan 2015/2016 in realization of Migori County Integrated Development Plan 2013-2017. The Medium Term Expenditure Framework aims at ensuring efficiency and effectiveness in the implementation of the development activities outlined in the 2015 Annual Development Plan. This is important to create fiscal space for financing priority projects by the departments in the County. In compliance with the mandate bestowed on the County governments by the Constitution, Migori County Government is dedicated to prudently utilizing the available resources and enhancing fiscal discipline so as to improve the living standards of her citizens. The County Government will work on the improved macro-economic environment to overcome the devolution transition and the various interrelationship challenges within the national and county governance structures. The County Government will promote value addition, investment on infrastructure and support especially the small and medium enterprises so as to expand employment opportunities. ^|rK:etJie strategies that have been highlighted in this document ||jalLbe enforced and implemented, standard oftiving among the people of Migori.- Hon Tom Kascra CECM Finance and Economic Planning 8 ACKNOWLEDGEMENTS The Migori County Fiscal Strategy Paper 2016 is informed by the Public Finance Management Act 2012 Section 117 (1) which stipulates that the County Treasury should prepare the Fiscal Strategy Paper for the County. It sets out broad strategic priorities and policy goals that will guide the Migori County Government in preparing its budget over the medium term and for the Financial Year 2016/2017. The content of this Fiscal Strategy Paper has benefited from an array of expertise of professionals and key stakeholders in the County. Their tireless efforts have informed the four chapters of this Strategic paper. We wish to express our gratitude to all those persons that participated in the drafting and printing of this paper. We are particularly grateful to His Excellency the Governor for his lead role, direction and guidance in developing this document; His Excellency the Deputy Governor, County Executive Committee Members and Chief Officers for their input in providing the much needed information. Special thanks goes to the secretariat coordinator and Director of Economic Planning Mr. Lazarus Onyancha, Mr. Paul Mwita Director of fii\a1rfce,’Mwita Robi head of Revenue, Collins Bala Head V \ ^ of Accounting Treasury; County economists^ Mr. Douglas^Kimaiga, Andrew Njogu, Duncan Mburu and Emilly Moraa. We cannot forget the role of members of the public, for their contributions during the public forums held in the eight sub counties. Finally, it is our sincere hope that this Fiscal Strategy Paper would serve to guide the budget making process for the 2016/2017 Financial year. Samuel Omuga Chief Officer Finance and Economic Planning 9 ABBREVIATIONS ADP ANNUAL DEVELOPMENT PLAN AMS AGRICULTURAL MECHANISATION SERVICES CCTV CLOSED CIRCUIT TELEVISION CECs COUNTY EXECUTIVE COMMITTEE MEMBER CFMIS COUNTY FINANCIAL MANAGEMENT INFORMATION SYSTEM CIDP COUNTY INTEGRATED DEVELOPMENT PLAN ECDE EARLY CHILDHOOD DEVELOPMENT EDUCATION FSP FISCAL STRATEGY PAPER FY FINANCIAL YEAR GDP GROSS DOMESTIC PRODUCT ICT INFORMATION COMMUNICATION TECHNOLOGY INTEGRATED FINANCIAL MANAGEN^ENTsYST-EM. kPlc kiiNya power and Lighting company kshs KENYA SHILLING MCA MEMBER OF COUNTY ASSEMBLY MTEF MEDIUM TERM EXPENDITURE FRAMEWORK PFM PUBLIC FINANCE MANAGEMENT SBP SINGLE BUSINESS PERMIT SMEs SMALL AND MEDIUM ENTERPRISES TOL TEMPORARY OCCUPATION LICENSE 10 CHAPTER ONE: COUNTY STRATEGIC BLUEPRINT Overview 1. The 2016 Fiscal Strategy Paper identifies the broad strategic priorities and policy goals that will guide the County Government in preparing its budget for Financial Year (FY) 2016/2017 and the Medium Term. 2. The paper discusses the performance of the FY 2015/2016 budget up to 3 lsl December, 2015 which forms the basis for projecting the financial outlook with respect to the County Government revenues and expenditures for FY 2016/2017 and over the Medium Term. 3. The County priorities outlined in this paper shall form the basis for formulation of FY 2016/2017 budget and the Medium Term. The framework ensures adherence to principles of public finance and fiscal responsibility principles as set out in the Constitution and the Public Finance Management Act 2012. Specifically, the paper will ensure that the development to recurrent expenditures has been maintained within the required ratios of 70:30 It will detail on how the expenditures will be funded fully from the allocations from the equitable share, Local revenue sources and revenue from the development partners. 4. The paper covers the-following brbadjtfeas: review of the fiscal performance of first half of the FY 2015/2016; highlights of the recent economic developments and economic outlook; broad strategic priorities and policies for FY 2016/2017 as spelled out in the Annual Development Plan and the Medium Term Fiscal Framework as outlined in the County Integrated Development Plan (CIDP) 2013-2017. 5. During the medium term plan the following areas of concern shall be given priority as articulated in the 2013-2017 CIDP and Governor’s manifesto; i. Infrastructural development and agricultural transformation ii. Socio-economic empowerment particularly provision of solar lamps, street lighting, bursaries, education, iii. and health and water improvement. iv. Affirmative action v. Environmental management 1 he focus of this paper and Medium lerm Plan is to expand and maintain infrastructure development specifically roads network in the county, increase employment opportunities, improve health facilities, reduce poverty levels and enhance social protection. 11 6. This fiscal strategy paper articulates economic policies and structural reforms as well as sector based expenditure programmes that the county intends to implement in order to achieve the broad goal of its development agenda. In particular, it emphasizes continued shift of resources in favour of programmes that enhance growth and job creation, and to support stronger private sector investment in pursuit of new opportunities in a changing economic environment. The proposed fiscal framework ensures continued fiscal discipline and provides support for sustained growth, broad based development and employment growth that benefits all citizens. 7. The County government through its CIDP 2013-2017 has prioritized physical infrastructure as the key driver in facilitating the private sector to expand its business, promote productivity and build resilience necessary for employment creation and poverty reduction. Key priorities in infrastructure include investing in roads and energy. Other strategic priorities include adequate allocation to key socio-economic sectors such as agriculture, energy, water, environment, health and education through a pro-poor approach to address the endemic poverty levels that have afflicted the citizens of Migori County over the years. All these will be done within the fiscal framework to avoid budget deficit. 8. The County Government of Migori will build on the comparative advantage in resource availability and enhance fiscal discipline to navigate through the challenges posed by the global and domestic development in order to sustain and improve the resilience of the county economy. ^ - ~. ' “ - -' liF 9. With Hmited resources, the County .government will be required to be more efficient to make meaningful gains in poverty reduction. The fiscal framework outlined in this Fiscal Strategy Paper (FSP) requires greater fiscal discipline and alignment of resources and priorities. In particular, better control of expenditure and a clear focus on core mandates by county departments will be required. Thus, in preparing the 2015/2016 budget, departments will be expected to identify savings that will contribute to financing the county government’s targeted outcomes in line with the CIDP. Objective 10. The objective of the 2016 Fiscal Strategy Paper is to set the frame work for the preparation of the County budget. It is a requirement under section 117 of the Public Finance Management Act, 2012 that each County Treasury shall prepare and submit to the County Executive Committee the Fiscal Strategy Paper for approval, and the County Treasury shall submit the approved Fiscal Strategy Paper to the County Assembly by the 28,h February of each year. This Fiscal Strategy Paper contains the following: • The principles that will guide the 2016/2017 budgetary process; • The broad fiscal parameters for the 2016/2017 budget and the key strategies and policies for management of revenues and expenditures; 12 X • The broad strategic priorities and policy goals that will guide the preparation of the budget over the medium term; • A discussion of risks to the budget parameters and Budget Strategies; • The medium-term outlook for county government revenues and expenditures; • A discussion of how the Budget Strategies relates to the County priorities as drawn from the County Integrated Development Plan (ClDP); and • A framework for the preparation of departmental forward budget estimates and the development of detailed budget policies. Outline of the 2016/2017 Fiscal Strategy Paper 11. The Fiscal Strategy Paper is presented in four Chapters. Chapter One presents an overview and objective of the Paper, Chapter Two outlines the economic context within which the 2016/2017 budget will be prepared, the recent economic developments and the macroeconomic outlook covering the global, national and domestic scene. • i ... - j «y - 12. Chapter Three presents the Fiscal SoTfcy and-Tkidget Framework that'will support planned | ■= growth over the medium to long term, while continuing to provide sufficient resources to support programmes earmarked for implementation during the plan period. 13. Chapter Four presents the resource envelope and spending priorities for the proposed 2016/2017 budget and medium term. Sector achievements and priorities are also reviewed. 13 CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK 14. Kenya’s economic growth has been robust supported by significant infrastructure investments, construction, mining, lower energy prices and improvement in agriculture following improved weather conditions. The economy grew by 5.3 percent in 2014 and is projected at 5.6 percent in 2015, 6.0 percent in 2016 and 6.5 percent in the medium term. 15. Macroeconomic stability has been preserved with inflation remaining on average within target. Overall, month-on-month inflation was at 8.0 percent in December 2015 from 6.0 percent in December 2014.This was attributed to the increase in prices of several food items which outweighed the decreases as well as increase in the Alcoholic Beverages, Tobacco & Narcotics index. 16. The Kenya Shilling exchange rate has stabilized following increased foreign exchange in flows in the money market. The current level of foreign exchange reserves, backstopped by the precautionary program with the IMF, continues to provide an adequate cushion against exogenous shocks. Furthermore, the current account deficit narrowed, mainly due to a lower oil import bill, and a slowdown in consumer imports. 17. Short term interest rates have declined following improved monetary conditions that led to increased liquidity in the money market. The interbank rate was at 6.2 percent as of 21 January 2016 while the 91-day Treasury bill rate was 11.4 percent as of 22 January 2016. i -ii i^tofrt'cations of The Recent EconomicDevelopment o^i .tKteEtrdnojny of Migori County' 18. As the resulLof the above positive-economic development^ the economy of Migori benefited as follows: a) The reduced interest rates enabled investors to access bank loans at concessionary rates which translated to increased investments in the building sub-sectors in major towns of Migori, Awendo, Rongo and Isibania b) The reduced inflation rate resulted to reduced prices of common goods which eventually enabled most contractors to complete their works with minimal variations and extensions of time due to stable prices of the construction materials. c) The favorable weather conditions resulted to good harvest in the sugarcane, maize and other agricultural material consequently resulting to reduced incidences of food insecurity compared to the previous years. Growth Update 19. The economy grew by 5.3 percent in 2014 (Chart2.1) supported by strong performance in most sectors of the economy which offset the contraction in the tourism sector. Kenya’s economic growth remained resilient in 2015.The first three quarters of 2015 recorded an average of 5.5 percent growth compared to 5.3 percent growth in a similar period in 2014. 14 ir- — •c: TV / \ 4=- V \ \ ____ X I w—| 4 •—a4 «<■H V-aH *-•1 i | •-y< I • I • i *I- i •—• « »—• « • I • l »I- i ^• I ^.1 £,J Ol£ ? = I S I n § n I ^ ! s « I H I § Figure 2: Inflation Rate 20. Overall month on month inflation was at 8.0 percent in December 2015 from 7.3 percent in November 2015 (Chart2.2) above. This was attributed to the Food and Non-Alcoholic Drink’s Index which increased by 1.23 percent following increases in prices of several food items the Alcoholic Beverages, Tobacco &Narcotics index increased by 11.46 percent from November 2015. However, during the same period there were notable falls in the cost of electricity, kerosene and cooking gas. The annual inflation rate was 6.5 percent in December 2015 compared to 6.9 percent in December 2014 and was therefore, within the current allowable margin of 2.5 percent on either side of the target of 5.0 percent. 15 Figure 3: Commercial Banks Lending and Deposit Interest Rates Interest rates 21. Liquidity conditions remained tight between September and October 2015, with short-term ■ j interest rates remaining aboye the Central Bank Rate (JJBRfandJhe rates on treasury bills i - ' risiiig“substantially. This tight liquidity situation Improved beginning November 2015 resulting in reduction in all the money market interest rates. Fiscal Performance and Emerging Challenges 22. The implementation of the budget for FY2015/16 has progressed well despite challenges in the first quarter. Revenues collection lagged behind significantly and delayed release of funds coupled with rising expenditure pressures arising from the increasing wage bill. These three combined effects disrupted smooth flow of funds for development and general government operations in the first quarter and slowed down expenditures. 23. By the end of December 2015, the County Government of Migori had received a cumulative disbursement of Kshs. 1.9 Billion against a target of Kshs 3.6billion or 52% of the targeted funds. 24. During the period under review, the cumulative revenue raised by the Migori County Government amounted to Kshs. 151.1 million which was 38% of the annual local revenue target. This is against a target of Kshs.200 Million for the first Half of 2015/2016 financial year. This represents a revenue deficit of Kshs 48.9 Million (or 24 % deviation from the approved target). 25. In the period under review, the total cumulative expenditure was Kshs. 1.898 Billion against Kshs. 6.507 Billion, representing 29.17 per cent of the budget. The County Executive 16 r departments spent Kshs. 1.697 Billion (89%) while the County Assembly spent Kshs. 200.56 Million (11%). Analysis of the County expenditure by economic classification indicates that Kshs874.8Million Was spent on development activities while Kshs. 1.14 Billion was spent on recurrent activities accounting for 60% and 40% of the total expenditure respectively. The county absorption rate for the recurrent expenditure against the budget stood at 32 per cent. Table 1: Recurrent Budget Out-Turn for the First Six Months of FY 2015/2016 TOTAL EXPENDITURE ABSORPTION RATES-OCTOBER TO DECEMBER 2015 Sector : : Budget Actual Deviation Absorptio >iJ n Rates Agriculture, Livestock 184,473,626 55,753,989 128,719,637 30.22 Production, Fisheries and Veterinary Services Lands, Housing, Physical 39,309,464 4,811,868 34,497,596 12.24 Planning and Survey Roads, Public Works and 43,214,280 10,123,879 33,090,401 23.43 Transport Trade Development and 56,037,732 6,501,657 49,536,075 1 1.60 Regulation - Health 9'09j32'9,857 - 176,216,654 * 733,113,203 - 19.38 i Education, Youth, Sports and 134,024,601 -29,651=315 104,370,286 22.12 Culture County Executive 445,089,110 150,222,755 294,866,355 33.75 Public Service Management 742,478,444 424,850,107 317,628,337 57.22 Finance and Economic 340,675,976 112,372,817 228,303,159 32.99 Planning Environment and Disaster 34,347,800 11,409,081 22,938,719 33.22 Management County Assembly 652,304,951 158,614,275 493,690,676 24.32 Total 3,581,282,84 1,140,528,39 2,440,754,44 31.85 1 7 4 17 Table 2: Development Budget Out-Turn for the First Six Months of FY 2015/2016 1MBER 2015 Deviation Absorption V:.. Kates Agriculture, Livestock Production, Fisheries and Veterinary Services 478,225,550 46,390,564 431,834,986 9.70 Lands, Housing, Physical Planning and Survey 94,190,000 54,652,453 39,537,547 58.02 Roads, Public Works and Transport 900,000,000 233,255,750 666,744,250 25.92 Trade Development and Regulation 77,313,000 25,171,198 52,141,802 32.56 Health 224,280,000 98,372,434 125,907,566 43.86 Education, Youth, Sports and Culture 104,734,000 25,564,352 79,169,648 24.41 County Executive 121,000,000 20,314,195 100,685,805 16.79 Public Service Management 185,540,000 134,216,964 51,323,036 72.34 Finance and Economic Planning 495,000,000 52,912,569 442,087,431 10.69 Environment and Disaster ti* Management ■ - 100,060,000 24,5g2^ff5 ' 75t5Q?,690 24.54 County Assembly 145,300,000 41,974,356' 103,325,644 28.89 Total 2,925,642,550 757,377,145 2,168,265,405 25.89 Source: MIGORI County Treasury 26. To adhere to the financial regulations, the County Treasury shall ensure that no department shall spend more than the exchequer releases and expenditures remains within the departmental ceilings as we move towards the closure of 2015/16 FY. Revenue Projections 27. Migori County Government had targeted to raise Kshs. 400 Million from local sources in the financial year 2015/16 to supplement the national equitable share of revenue from the National Government. During the period under review, the cumulative revenue raised by the Migori County Government amounted to Kshs. 151.1 million which was 38% of the annual local revenue target. This is against a target of Kshs.200 Million for the first Half of 2015/2016 financial year. This represents a revenue deficit of Kshs 48.9 Million (or 24 % deviation from the approved target). 18 Revenue (Kshs.) 40.000. 000.00 35.000. 000.00 30.000. 000.00 25.000. 000.00 a - • ■~TT 20.000. 000.00 a Amount ■cy r 15.000. 000.00 % ' .: •'■i -r.'i ■ 10.000. 000.00 m ■ ■5,000,000.00 pm-•v-r-. ■ JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Figure 4: Monthly Locally Collected Revenue Collection - July to December 2015 There was significant decrease in local revenue collection during December where Kshs. 18 Million was raised compared to the Kshs. 22 Million raised in November. This represented a decrease of Kshs. 4._M-illion or 18°/(|digtfin7evenue collection. , ' Major drop in local revenue collectioi-Tcan be attributed to Six major revenue items, which contributed to over Kshs. 4.4 Million drop as tabulated in the table below. Table 3: Revenue Streams with Dropped Performance RVENUE ITEM NOVEMBER DECEMBER DECREASE S.B.P./APPLICATIONS/RENEW AL 518,500.00 220,750.00 (297,750.00) CESS - SUGAR-CANE 2,880,463.35 (2,880,463.35) CESS - COPPER 300,000.00 (300,000.00) TRANSPORT ON LAND 589,080.00 235,500.00 (353,580.00) MINSTRY OF HEALTH 3,066,065.00 2,475,355.00 (590,710.00) GRAND - TOTAL 7,354,108.35 2,931,605.00 (4,422,503.35) 2015/16 Revised Estimates 28. Supplementary budget was necessitated in order to the factor in the following issues which were not factored in the 2015/16FY budget: i. The balances from last FY 2014-2015 which was majorly pending bills, 19 ii. Additional equitable share from CRA iii. Grants and other funds pledged that was pledged by the Water Trust Fund internation; European Union and UNFPA iv. Reduction of the conditional grants 29. In summary, the revised fiscal framework reflects overall reduction in c o n d i t i o n a grants b yKshl62 million, an increase of equitable share by 144M, UNFPA funds of Ksl 45M million and additional grants of Kshs 100m each from the water trust fund and Europe; union respectively. The overall impact ofthese developments is reflected in the table 2.1 bclo Table 4: Funding Sources Revenue Streams FYR 2015/16 FYR 2015/16 Approved Supplementary Estimates Opening balance(CRF Account) Balance from 2014/2015 538,738,279 Equitable share (CRA) UK . 5,836,352,127 - Conditional allocation -free maternal Health 109,699,053 109,699,053 Allocation for Leasing of medical equipment 44,488,459 44,488,459 Road maintenance fuel levy fund 74,147,432 74,147,432 Conditional grants 162,099,800 0.00 Grants from European Union 100,000,000 Grants from Water Trust Fund 100,000,000 Total Share of National Revenue 6,086,485,391 6,803,925,350 Danida funds 20,440,000 20,440,000 4FPA funds 45,000,000 cally Collected Revenue 400,000,000 400,000,000 {AND TOTAL 6,506,925,391 7,269,365,350 20 Tabic 5: Sectors Apportionment of 2015/16 FY Supplementary Budget Sector Approved 2015/16 Supplementary 2015/16 1. Agriculture, Livestock, Fisheries and Water 662,699,176 831,355,176 2. County Executive 566,089,110 622,189,110 3. Public Service Management 928,018,444 902,068,444 4. Education, Youth, Sports, Culture and Social Development 238,755,601 326,506,001 5. Trade, Tourism and Cooperative Development 133,350,732 106,250,732 6. Lands, Physical Planning and Housing 133,499,464 117,063,464 7. Finance and Economic Planning 835,675,976 844,395,535 8. Health 1,133,609,857 1,212,609,857 9. Management Environment, Natural Resources-afid Disaster Management '13-4,407,800 119,407,800 V ' -i - - 10. Roads, Transport, Public Works and Energy 943,214,280 1,319,614,280 11. County Assembly 797,604,951 867,904,951 Total 6,506,925,391 7,269,365,350 21 CHAPTER THREE: MACROECONOMIC POLICIES, OUTLOOK AND STRATEGIES TO ACHIEVE MEDIUM TERM OUTLOOK Growth Prospects 30. The growth prospect in the county during the period under review is favourable assuming the favourable weather conditions that prevailed in the 2014/2015 FY persist. This will be boosted if the on-going infrastructural projects in roads, energy, education and trade arc completed on time. However, great caution should be taken to control the growing wage bill not to crowd out the gains so far made. 31. Domestic demand of goods and services is expected to be robust following a drop in inflation at the national level and fostering of investor confidence in the county particularly in the mining sub-sector, sand harvesting, cross border trade and fishing. Policies to Achieve Medium Term Outlook 3 2. Strategies set out in this 2016 county fiscal strategy paper re-emphasizes the ongoing Economic Transformation Agenda being implemented by the Migori County Government as follows: (i) Investing in infrastructure in areas such as roads, energy and water thus creating a conducive business environment for job creation;. ". j. fi A (ii) investing in agricultural transformation to ensarc-food security. Investing in quality and w • "accessible health care services and quality education. cr (iii)Strengthening the social safety net to reduce the burden on households and promote shared prosperity among the youths and other vulnerable groups within the County. 33. The continued implementation of programmes under the above four pillars will make the economy maintain a strong growth momentum while at the same lime remaining resilient to shocks. Strategy One: Infrastructural Expansion to Facilitate Economic Growth Expanding Road network 34. In order to ensure sustained economic transformation and open the rural markets for competitive economy, the county government of Migori embarked on massive investments in upgrading and opening of rural access roads where the following achievements have been made: • Gravelling of2400kms of existing unclassified roads against the CIDP target of 1600kms • Routine maintenance of lOOOKms.classified roads against the CIDP target of lOOOkms • Opening of 2400kms of new earth roads against at target of 1600km • 50kms of Emergency roads reserve and 1 OOkms of disaster community roads maintenance done. • Improvement and Tarmacking of 5km town roads 22 • Construction of 10 footbridges • Construction of 15 box culverts • Commencement of Uriri-Uria road(Tarmac) 35. Over the medium term, the strategy is to develop the road transport in order to have an effective, efficient and secure road network, The Government will continue to enhance road network connectivity across the county with the aim of enhancing trade, commerce, agricultural productivity and inter county and sub-county trade. Access to Adequate, Affordable and Reliable Energy Supply 36. The realization of the development objectives set out in the County Government’s economic transformation agenda (C1DP) and Vision 2030 will be feasible if quality energy services are availed in a sustainable, competitive, cost effective and affordable manner to all sectors of the economy up to the village level. 37. In order to provide affordable and competitive energy to transform the rural economy of the people of Migori, the Government has planned to provide solar lamps particularly to the rural poor and vulnerable homes. This is in addition to provision of street lights in all the major towns and markets across the county with the view of enhancing and promoting small scale trade. Strategy Two: Sectoral Policies-Agricultural Transformation * * j .=»— _ • -> - 38/Agriculture is one of the key s^eejofs aimed at delivering the 10 percent economic growth As­ under Vision.2030. In additionrmajority of the M i go r i population live in rural areas * and derive their livelihood from agriculture. Therefore, promoting substantial investments in agriculture is key to our economic transformation. Improving agricultural productivity' and value addition would thus be an effective way to enhance food security, employment creation, and income generation 39. The county government has over the years put in place policies, strategies and interventions to ensure sustainable food security in the county including; provision of fanns inputs to 8000 farmers provision of tissue culture bananas and promotion of rice acreage from 150 acres in 2013 to 1,972 in 2015; Purchase of tractors; construction and equipping of Miyare ATC; Distribution of 150 dairy cows to farmers in all 40 Wards; Purchase of 40 bee hives and distribution of 10 honey extractors to 20 groups in Nyatike and Suna West sub counties respectively. Other achievements include; Rehabilitation of 10 cattle dips; Construction of 3 slaughter houses and supply of 802,000 Monosex fish 40. During the medium term the government priority investments shall include; research and extension services, enhancement of food security through provision of agricultural inputs, dairy animals and water dams; marketing; value addition and agricultural extension services. It will also develop appropriate policies and strategies to eliminate middlemen in all areas of agricultural marketing, and establish community and village markets to improve food security and increase household income. Strategy Three: Social Sectors 41. In order to ensure sustained economic transformation, reduce the burden of economic shocks on the households and enhance access to services by most people in the county, the 23 government will continue to invest in quality and accessible health care services and qualiu education as well as strengthening the social safety nets programme as detailed below: Health Care 42. The main strategy includes; scaling up universal health coverage initiatives including free maternity services, equipping public hospitals with specialized medical equipment reducing morbidity and mortality from malaria, HIV/AIDs, tuberculosis and non-communicable diseases and recruitment of more health workers and strengthening the supply of drugs for improved quality of health will continue being implemented in this fiscal year. Education 43. The county government is committed to enhanced access to basic education and raise the quality and relevance of education and ensure equity as well as exploit knowledge for competitiveness with a view to achieving Education for all pupils in the county. 44. Major achievements in education over the three years includes: (i) Establishment of the Govemois scholarship for needy and bright students where a total of 200 have benefited to the tune of Ksh20m as at January 2016. This is in addition to Ksh 220m bursary programme administered at the ward level. (ii) Construction of 120 ECD classrooms where 42 are complete and 80 are at advanced stages. (iii) Construction of 10 vocational school one per Sub County with 7 complete and 3 at 90% completion _ _ 14^ 45."Going forward the medium term strategy will fodju&on: ' “ ■ Improving and expanding ECD school and polytechnics institutions infrastructure through construction/rehabilitation of classrooms, provision of tools and other teaching aids; ■ Increasing provision of student loans, bursaries and scholarships to fully finance the universal free primary education, free day secondary education and tertiary education. ■ Recruitment of EDC teachers and other tertiary instructors in order to enforce and uphold quality education; Water Accessibility 46. Indeed, safe drinking water and sanitation do complement efforts towards improved primary health care and productivity of labour. For this reason, the County Government of Migori will continue to invest in clean water supply, harvest rain water as well as to construct dams and pans 47. So far, this sector has made achievements as follows: Construction of 2 new water Dams/Pans grilling and equipping of 7 boreholes; rehabilitation/Augmentation of 3 existing Water Supply Schemes and Construction of 2 New Water Supply Schemes; installation of 248 Roof Catchment and Tanks serving a population of 124,000;Capacity Building for 32 Water Management Committees at the Sub County Water Officers, and Water Supply Operators; Enforcement of EMCA-1999 24 and Related Regulations; Construction of 9 Public Ablution Blocks ;Purchase of 3 Motor Vehicles; Purchase, delivery & commissioning of Drilling Rig Support 1 ruck lest pumping unit & Ground water survey equipment 48. Over the medium term, the Government will prioritize construction and equipping of boreholes, water pans and rehabilitation of existing dams and pans Environmental Management 49. The County government recognizes that protecting and conserving the environment, underpinned by effective climate change mitigation and adaptation measures is fundamental to sustain access to clean water, clean environment and a healthy productive population 50. In the last two and half years, the sub-sector achieved the following: Establishment of county greening programme; Conservation of ecosystem and wetlands Rehabilitation of hilltops where over 7000 seedlings planted and training of several groups on effective disaster response methods 51. In order to mitigate the impact of climate change, the Government will continue to mainstream climate change measures in to its projects and programmes. This includes: tree planting and re-forestation and water harvesting storage in all public ECD and primary institutions throughout the county. Strategy Four: Empowering Youth^Women and Persons with Disabilities- 52. The county.government of Mfgori recognizes that for the county to reach its full potential, it is important to empower youth, women and persons with disabilities and remove all obstacles to ensure full participation in social economic development of the county. This will be ensured through assisting them with funds through groups to enable them start income generating activities. The government is therefore committed to promote gender and youth empowerment, livelihoods for the vulnerable groups and marginalized areas during the fiscal year 2016/17.Youths will be trained through the social transformation programme in a bid to attain sustainable youth led enterprises and promote employment creation services while others will be mentored on leadership and national values. F u rt h e r efforts shall be made to sensitize t h e m on entrepreneurship skills and social vices. The government will develop and disseminate women economic empowerment strategies as well as issues dealing with disabilities and venture into modalities of enabling them to engage in sustainable income generating activities. Risks to the Outlook 53. The risks to the economic outlook for 2016 includes both external and fiscal risks which may impact negatively on the economic performance of the county External Risks: 54. The external risks to the economic outlook of the county for the year 2015 and medium-term include weakening in global economic growth and unfavorable weather conditions should there be any drought or floods in the year. Other risks are frequent power blackouts, crop failure and high cost of production. Fiscal Risks: 25 55. Inadequate infrastructure particularly roads, electricity and other social amenities could affect the level and rate of private investment in the county. The County Government will strive to ensure conducive environment for the investors through infrastructure development across the county. This will boost various sectors such as tourism, agriculture and trade. 56. The increasing county wage bill which is expected to clock 30 per cent of the total expenditure in 2015/16 if unmanaged may affect the economic growth of the County through decreased allocation of funds to development projects 57. Revenue collection risks may also affect the economic outlook of the County due to the shortfall of the actual revenue from the targeted revenue. Efficient measures will have to be put in place to reduce the gaps between the target and the actual revenue collected including the adoption of automated revenue collection systems among other measures. W “ - a. 26 CHAPTER FOUR: FISCAL POLICY AND BUDGET FRAMEWORK Overview 58. The Migori County 2015 Medium-Term Fiscal Framework emphasizes the following keys measures: Retaining the ratio of recurrent expenditure on county budget to around 60 percent to 40 percent on development through efficiency spending as well as improved revenue collection following reforms as spelled out in the Migori County Finance Bill 2016. y That the level of expenditure is adequate to sustain county development investment in the following key priority areas: Road development, Street and solar lighting, youth, women and disabilities empowerment, health care, education and water development y The improvement of expenditure while at the same time ensuring that adequate resources are available for operations and maintenance, and the implementation of the Migori CIDP. y That all measures shall be instituted to contain the wage bill and maintain a balanced budget in 2016/2017 Financial Year and the subsequent years. Fiscal Policy Framework ii*' *" 59. Fiscal policy will continue to support County development activities while providing room for __ the implementation of the CIDP within a context of sustainable public financing. During the previous two years, the County Government has refocused its priority towards the expansion of programmes and projects in roads, health, social protection, education, agriculture, water and infrastructure. This process will be strengthened in the FY 2016/17 with relevant legislative framework put in place to enable the County Government implement critical programmes that will accelerate socio-economic development while endeavouring to run a balanced budget. 60. Based on the trends on revenue collection over the last six months, local revenues have been projected to remain constant at Kshs.400, 000,000 per annum during the supplementary and in 2016/17FY budget. With transfers from the National Government projected at KShs.6.4billion and local revenues of Kshs 550M, the total resource envelope excluding grants is expected to reach to Kshs 6.9 billion compared to 6.3 billion for 2015/16 implying an overall increase of 9.4% per cent of the total resource budget 61. Departmental ceilings for FY 2016/17 have been revised accordingly. Table 6 presents the County Government fiscal projections over the medium term. 27 Table 6: County Government Fiscal Projections, 2015/2016-2017/2018 Revenue/Grants 6,350,000,000 6,950,000,000 7,450,000,000 National Gov’t 5,800,000,000 6,400,000,000 6,800,000,000 Local revenue 400,000,000 550,000,000 700,000,000 Expenditure 6,350,000,000 6,950,000,000 7,500,000,000 Recurrent 3,236,500,000 4,170,000,000 4,500,000,000 Development 3,113,500,000 2,780,000,000 3,000,000,000 Fiscal Responsibility Principles 62. The County Government acknowledges the fact that the fiscal stance it takes today will have implications into the future. The County Government will ensure strict adherence to Section 107 of the Public Finance Management (PFM) Act of 2012 which outlines the fiscal responsibility principles as follows; •S The County Government’s expenditure shall not exceed its total allocation in that financial year * j.fer ■*- S' Forty percent of all expenditure is dedj^fedlo development expenditure and si.\t\ per cent to recurrent expenditure over ffife medium term; ^ Wage bill shall be limited to not more than thirty percent of the government’s total revenue: ■S County Debt financing to be only used for development over the medium term. S The County Government’s borrowings shall be used only for the purpose ol financing development expenditure and not for recurrent expenditure; v' Sustainable debt: The County’s debt shall be maintained at a sustainable level not exceeding fifteen percent of the County Government’s total revenue as approved by the County Assembly. Short term borrowing shall be restricted to management of cash flows and shall not exceed five percent of the most recent audited County Government revenue. s Prudent risk management: Fiscal risks shall be managed prudently and key areas of uncertainty that may have a material effect on the fiscal outlook and the potential policy decisions outlined S Predictable taxes: A reasonable degree of predictability to the level of lax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future. S The County Government will operate under a balanced budget fiscal regime. National and foreign borrowing will be limited to projects that guarantee revenue streams and support long-term growth. 28 Fiscal Structural Reforms 63. For effective and efficient management of financial resources, the County through the revenue directorate will continue to eliminate leakages and enhance revenue collection as well as rationalize expenditure. 64. The County Government will continue with prudent financial management with the aim of improving efficiency and reduction in wastages in line with section 107 of the PFM Act of 2012 on fiscal responsibility principles. Financing Policy 65. The County Government will have a balanced budget in the FY 2015/2016 and over the medium term. 2015/2016 Budget Framework 66. The County Government’s strategic objectives and priorities as outlined in the C1DP (2013- 2017) and the Annual Development Plan (ADP) 2015 forms the basis for the Migori County 2016/2017 budget framework. The_Q}unty is expected to realize key developments by ensuring adequate budgetary allocaticfnsiirfthe project activities and programmes of the priority ardgs^" Revenue Projections 67. The Migori County 2016/2017 Financial year budget targets local revenue collection of Kshs. 550 million and equitable share of KShs.6.4 billion from the National Government. The revenue department will institute measures to expand the revenue base and curb revenue leakages. Expenditure Forecasts 68. The County Government’s funding allocation decisions for the FY 2016/2017 are guided by the Annual Development Plan (2015) which outlines the priority areas to be addressed in the FY 2016/2017 in the realization of the CIDP. Overall expenditures are projected at Kshs.6.95 billion comprising of Kshs.2.78 billion for development and Kshs.4.17 billion for recurrent. 69. Efficiency saving initiative will be adopted by the County to ensure that funds are directed to scrvice*delivery rather than non-essential spending and cut down expenditures on non-priority activities. Recurrent Expenditure 70. Recurrent expenditures shall be maintained at 60 percent of the County budget. This translates to Kshs 4.17 billion of the total budget for the 2016/17. The County will exercise essential controls and ensure prudent management of the wage bill by ensuring that recruitment is only done to cater for natural attrition, retirement and on very critical need basis. 29 Development 71. The County Government will endeavour to allocate adequate resources towards development outlays and maintained at 40 per cent of the county budget so as to complete critical infrastructure priority projects that have wider impact on the community. During the financial year 2016/2017, the ceiling for development expenditures excluding donor funded projects is expected to be KShs.2.78 billion Summary 72. Fiscal policy will support growth within a sustainable path of public spending by allowing deficit to decline drastically, therefore moderation in government spending will help assure debt sustainability and inter-generational equity in line with the constitution and fiscal responsibility principles in the PFM Act 2012. Meanwhile, efficiency and economical spending of County Government resources will be enhanced to create room for critical interventions and pro-poor spending i-y or I 30 CHAPTER FIVE: BUDGET FOR THE FY 2016/17 AND THE MEDIUM TERM Resource Envelope 73. The Constitution of Kenya 2010 stipulates that County Governments should have reliable, stable and predictable sources and allocation of revenue. Migori County has two main sources of funding that is revenue from local sources and the equitable share from the National Government as provided under Article 201 of the Constitution. The resource envelope available for allocation among the spending units is based on the medium term fiscal framework outlined in chapter three. Medium -Term Expenditure Estimates 74. Based on the above resource envelope, expenditure estimates for each sector, shall be distributed as follows in order to realize the anticipated county medium-term objectives as articulated in the annual development plan and the C1DP 2013/2017. TABLE 7: TOTAL EXPENDITURE CEILINGS FOR MTEF PERIOD 2013/2014-2016/17 amount^allocated PERCENTAGE INCREASE- “ x \ - u*»■ — S' — 2013/14 2014/15 2015/46 2016/17 SECTOR (000) (000) (000) (000) 3/14 4/15 5/16 16/1 Agriculture, Livestock Production, Fisheries, Veterinary Services and Water 298,980 427,481 500,000 350,000 7% 8% 7.9% 5.81 Lands, Housing, Physical Planning and Survey 98,000 204,898 160,000 100,000 2% 4% 2.5% 2.1°, Roads, Public Works, Transport and Energy 341,883 414,968 900,000 800,000 8% 8% 14.1% 14.1 Trade Development and Regulation 210,536 103,532 150,000 60,000 5% 2% 2.3% 1.11 Health 572,781 632,852 600,000 500,000 13% 12% 9.4% 7.21 Education, Youth, Spoils, Culture and Social Development 305,917 178,667 220,000 160,000 7% 3% 3.4% 2.61 Water and Energy 226,905 0 0 0 5% 0 0 0 Public Service Management_______ 1,097,489 265,571 160,000 160,000 24% 5% 2.8% 2.91 Public Service Board 0 25,949 100,000 40,000 0 0% 1.7% 0.81 ICT 0 182,690 150,000 300,000 0 3% 2.3% 2.91 Finance and Economic Planning 25,000 784,258 790,000 500,000 1% 15% 12.4% 5.51 31 AMOUNT ALLOCATED PERCENTAGE INCRRa 2013/14 2014/15 2015/16 2016/17 SECTOR (000) (000) (000) (000) 13/14 14/15 15/16 Ward Development Fund_______ ______ 640,000 Environment and Disaster Management 122,488 111,232 120,000 120,000 3% 2% 1.9% County Assembly 105,000 566,000 616,000 490,000 2% 9.2% 9.4% County Executive 0 0 430,000 330,000 0 0 4.7% Pending bills 400,000 1,370,96 1,404,00 Salaries 1,105,010 4 0 2,000,000 25% 26% 25% 5,269,56 6,328,00 Total 4,509,989 2 0 6,950,000 100% 100% 100% Spending Priorities 75. Prioritization of resource allocation will be based on the 2015 ADP which spells o programmes to achieve County priorities identified during the County-wide bud" consultative meetings. 76. The County Government willteorient its el^pk^cliture programmes to fodtis on the followii - sector priorities - 77. Under the social pillar, priority shall be given to the following areas: S Provision of Provision of Solar lamps to vulnerable households in the county S Provision of clean water through drilling of boreholes and construction of dams S Supply of medicines and-medical supplies and expansion of existing health infrastructu in all facilities and opening closed facilities S School bursaries and scholarship to needy and deserving children from poor families, S construction and equipping existing ECDE centres including and employing of instructor sport development and talent nurturing; S Youth development programmes and people with disabilities. 8. Under economic pillar, priority shall be given to the following areas; ✓ Road opening and gravelling 32 y Tarmacking of major roads y Construction of the county headquarters at Lichota ✓ Street lighting to strategic major towns/markets y Construction/rehabilitation of markets/shades, ✓ Development and rehabilitation of tourism sites ✓ Enhancing food security through strengthened and improved fanners’ access to subsidized farm inputs, ✓ Improvement of livestock marketing, disease and pest control and promotion of sustainable capture fisheries 79. Under governance pillar, priority shall be given to the following areas; y Facilitating proper and prudent collection, - y - Utilization, m-a nagement t i *" and-account in-g of county resources, lp i. b—r - - y Streaming measures aimed at rejuvenating revenue generation, S Staff rationalization and training, S Establishment and strengthening of devolved units and establishment 1CT villages among others S ICT Development Details of Sector Priorities 80. The future county’s medium term expenditure estimates will ensure the resource allocation is done based on the prioritised programmes aligned with the C1DP, the Kenya Vision 2030 and other policy initiatives that ensure accelerated growth, wealth and employment creation and also poverty reduction within the county. County Assembly 81.1 his is a key sector in the implementation of development programmes in the county as it has the oversight role. It also plays the role of strengthening the democratic space and governance in the county. Due to the crucial role of the sector, it is proposed that the sector be allocated Kshs 490 Million to cater for operations and development activities excluding salaries in 2016/17FY 2015/16 FY. 33 County Executive 82. This is the sector that is in charge of enhancing public service delivery, organization and coordination of County Government business through planning, mobilization of financial and human resources in the public sector. The sector also plays the role of linking the rest of the world in matters of development. The sector is comprised of the Governor, Deputy Govcrnoi CECs, County Secretary, chief of staff, county treasury, CPSB, sub-county and ward administrators, Chief Officers and staff at the governor's office. 83. This sector requires considerable funding to oversee the implementation of the Kenyan Constitution, Vision 2030, C1DP, provision of leadership and policies in governing of the county. It has the task of supervising the County Government departments including overseeing the special programmes on youths, women and disability. 84. Due to the vital role the sector plays, its proposed that it be allocated Kshs 330 Million in 2016/17FY to cover both recurrent and development excluding salaries. Ward Development Fund 85. This is a fund that is established by an Act of Migori County Assembly. It main objective is to administer the implementation of projects at the ward level. Due to the vital role the sectoi plays, its proposed that it be allocated Kshs 670 Million to cover projects in all sectors ti*' _ including provision of school bursaries to n'eed^mcTdeserving students through the normal _ government regulations as articulated in the Migori Ward Development Fund Act sect 38 sub- sect 1. Disbursement shall be done through the Ministry of Finance and Economic Planning. Roads, Public Works and Energy 86. The priority includes areas in Roads, bridges, foot bridges, bitumen road construction, and purchase of road equipment. The overall goal of the priority is to have a well-developed and maintained physical road network for rapid and sustainable economic growth and poverty reduction. The development of infrastructure has a multiplier effect on the county economy as it enhances access to markets, improves trade and contributes towards the creation of many entrepreneurial related jobs. Funds will be apportioned to create and maintain a network of roads, bridges that will provide adequate and efficient transport of farm produce to the markets. 87. In the energy sub-sector, the following have been earmarked: supply and installation of solar street lights in major towns and markets, installation of solar PV in county headquarters and provision of solar lamps in villages among other priorities In order to achieve these programmes, it is proposed that the sector be allocated Kshs 800 lillion or 12.9 percent of the total county allocation in 2016/17Y 34 Public Service Management 89. The sector plays a key role in enhancing public service delivery, organization and coordination of County Government business. The sector is expected to provide leadership and policy direction in the governance of the county; coordinate and supervise County Government affairs; articulate and implement the county’s policies, promote efficient and effective human resource management and development for improved public service delivery, and public service integrity. 90. The sector has achieved the following: Establishment of the organizational structures, construction of sub-county and ward offices and renovation of the public service offices among other achievements. 91. To achieve the above objectives, it is proposed that the sector be allocated Kshs. 160 Million in the FY 2016/2017FY. County Public Service Board 92. This is a key department in the management of public servants in the County. The department plans to construct modern MCPSB offices in 2015/16 FY. In order for the department to successfully accomplish its mandate, it is proposed that the sector be allocated Kshs 40 Million in FY 20 F6/2017. Water, Agriculture, Livestock ami Fisheries ^ 93. This sector is critical to the county’s economic growth, employment creation and poverty reduction. The sector contains multiple linkages with other key sectors such as manufacturing, wholesale and retail, transport and distribution and other service related sectors. The challenges facing the sector include; low value addition and competitiveness, inadequate physical infrastructure, Poor quality breeding stock and lack of livestock breeding centre in the county, low production and productivity due to the use of uncertified seeds, poor marketing and marketing infrastructure, and low access to financial services as well as affordable credit. 94. The sector aims to address the above challenges in the 2016/2017 budget by raising agricultural productivity through provision of farm inputs to needy farmers, construction of 2 dams per sub-county , increased agricultural commercialization through value addition, improvement in the provision of extension services; improved livestock breeds through artificial insemination; purchase of dairy cows , adoption of appropriate livestock production technologies; introduction of traditional food crops; land development, and promotion of sustainable management of fisheries . 95. Other priorities include: Expansion/rehabilitation of existing piped water supply systems, drilling boreholes and equipping them, supporting roof harvesting in public institutions, construction of dams and protection of water springs 35 96. To achieve the above targets, it is proposed that the sector be allocated Kshs.350 Million 2016/2017. Education, Culture and Sports 97. The County is assigned pre-primary education, village polytechnics, sports, culture and Youth development. The mandate of the sectors includes: dissemination and implementation of Education policies, Administration and Management of Education programmes and construction and equipping of ECDE schools among others. The sector faces many challenges including inadequate infrastructure, inadequate learning materials and staffing. During the previous year, the sector has managed to construct 120 ECDE classrooms, 10 Youth Polytechnics and supported several activities in the sports arena. In the FY 2014/2015, the sector intends to construct ECD classrooms, purchase learning materials, recruit teachers and construct an ECDE training college. For youth polytechnics, the sector intends to construct workshops and classrooms, purchase tools, and recruit instructors. 98. Other priorities of the sector are to establish a cultural centre in the county; organize sports establish sports centres and talent centres. 99. Efforts shall be made to address social and economic issues affecting the vulnerable groups in the county, promote cultural heritage, empower youth, women and people living with disabilities. 100. Special efforts shall be made to address the-educational needs from the disadvantaged groups through provision of bursaries, scholarship and the commencement of the school feeding programme. 101. In order for this sector to effectively cater for these objectives, it is proposed that the sector be allocated Kshs.160 Million in FY 2016/2017 Environment and Disaster Management 102. This is a critical sector in the county economy charged with the responsibility to promote, conserve, and protect the environment to reduce the occurrences of disaster through community empowerment and enforcement of existing legislation for sustainable county development. During the period of one year, the sector has managed to undertake the following: establishment of a demonstration farm, Riverine conservation, Promotion of on - farm tree growing and trained tree seedlings producer and community on Disaster Risk Reduction strategies 103. Under the disaster response management, the sector aims to purchase disaster emergency supplies, engine and construction of county environment disaster center. Under forestry, the sector intends to do reforestation of degraded hills tops and promote farm trees including purchase of tree seedlings. In public health services, the sector intends to construct solid waste 36 management facilities and identify and protect of dumping sites in all major towns and purchase garbage transport trucks among other priorities 104. It is proposed that the sector be allocated Kshs. 120 Million in FY 2016/2017 Finance and Economic Planning 105. This is one sector that links all the departments in the county and the county with the rest of the world. The key role of the sector is to provide leadership and policy direction in the governance of the County, coordination and supervision of County affairs, promote sound public Financial and economic management for socio-economic development promote macroeconomic stability, planning and budgetary process, implementation, monitoring and evaluation. In the last one year the sector has put mechanisms in place for smooth functioning of the treasury, IFMIS and the preparation of the County Integrated Development plan. 106. The sector targets pay for pending bills from the FY 2015/2016, track all development projects and programmes; prepare quarterly briefs or reports on development; enhance revenue collection; source for development partners and ensure that funds in the county are prudently utilized to achieve the county objectives and the realization of the vision 2030.To achieve these objectives its proposed that the sector be allocated Kshs. 500 Million in 2016/17 FY. 1 u . Health Sendees r- — - r- — a . 107. This is a key sector in the development in any economy and therefore it is one of the County priorities. The goal of the sector is to provide equitable and affordable health care to the people of Migori County. The aim of the sector is to improve immunization coverage, reduce deaths due to malaria and other diseases, and increase the proportion of mothers delivering in health facilities among others. However, the sector is facing numerous challenges ranging from inadequate infrastructure for service delivery to shortage of personnel and untimely supply of drugs. 108. The County Government will try to address these challenges through continued investment in training of health workers; upgrading and equipping of health facilities, construction of maternity wards, laboratories and ICU; completion of Migori MTC, purchasing ambulances for all health facilities in the long-run and allocating more resources to the procurement of drugs. 109. It is proposed that the sector be allocated Kshs. 500 Million in FY 2016/2017. Land, Housing, Physical Planning and Urban development 110. This sector is in charge of lands, survey and physical planning of the county. The sector faces many challenges ranging from lack of town plans, G1S, lack of proper register of public land; lack of urban development plans, lack of firefighting equipment; and shortage of dwelling units. 37 111. So far over the last one year the sector has achieved the following; Demarcated and beaconed over 12 pubic titled land, surveyed over 10 acquired sites to be titled and converted into public land, resolved over 40 land related conflicts and issued over 2000 new parcel numbers to facilitate production of Title deeds. 112. To address the above shortcomings, the sector intends to prepare town plans for all major towns in the county; prepare county spatial plan, fast track the issuance of land documents and prepare an integrated urban development plans among others. 113. To achieve the above targets, in the FY 2016/2017, it has been proposed that the sector be allocated Kshs. 100 Million compared 2016/2017. Trade Development, Regulation and Industry 114. The sector has been entrusted with the following sub-sectors; Trade, cooperatives, weight and measures, tourism and industrialization. The mandate of the sector includes facilitating trade and investment by creating enabling environment and infrastructure development, facilitating the development of cooperative movements to ensure that they are vibrant and self reliant through savings mobilization, education and training. Ensuring fair trade practices and consumer protection. Facilitating product development, innovations and marketing tourism products. .5. Over the past one year, the'sector achie\^cfetfii following:- Registered ten new cooperatives societies, revived 7 dormant cooperatives societies dealing in dairy, fish and rice; carried out education, training and mobilization of savings in cooperative societies in the county, Capacity building of SMEs, Participated in the India for Africa business forum in Mumbai and Production of county investment opportunities profile brochure 6. However, the sector is facing many challenges ranging from high cost of production, stiff competition from accessing international markets and congestion in Migori Town. 117. To achieve these goals, it is proposed that the sector be allocated Kshs.60 Million in FY 2016/2017 Information, Communication and Technology 118. Over the past one year, the sector achieved the following; website design, setting up local area network, installation and configuration of network bandwidth, establishment of digital villages, structured network cabling, wiring of fibre cable, unified network security management system, design and implementation of citizen service charters, installation of window server 2012, installation and configuration of IPBX system, automation of revenue collection system, among others. 38 119. To achieve its mandate, it is proposed that the sector be allocated Kshs. 300 Million in FY 2016/2017 Salaries 120. The county has over two thousand employees who drew approximately Kshs. 1.97 billion in 2015/16 FY. This will increase with additional staff being hired especially in the health and education sector. Technical staffs have also been hired in various sectors in an effort to boost the capacity of the county in service delivery. To cater for this, it is proposed that salaries be allocated Kshs. 2 Billion 2016/17 FY Pending Bills 121. To adequately address the pending bills from previous years, it is proposed that Kshs 400 Million be set aside in 2016/17FY tr- A— * ' - u 39 ISSUES FROM PUBLIC PARTICIPATION EXERCISE 122. The Constitution of Kenya 2010 and Section 117 (5) of PFM Act, 2012 provides that the public should be involved in the budget making process through public participation. Members ofthe public were invited to attend public sector hearings to identify priorities that will guide the preparation ofthe County Fiscal Strategy Paper leading to the County Budget 2016/1 Financial Year. 123. The public applauded the County Government for the progress made in various sectors during the 2015/16 FY. However, various concerns were raised as will be shown below. The public were however assured that issues raised will be tackled at Sector level. The advertisement appeared on The Star Newspaper dated Monday 8,h February, 2016. 'The Sub County consultative meetings were held from 1 l,h-22nd February, 2016 from 10 am as show n below. Table 8: Schedule of Public Hearing Forums 2016/17 FY Date Sub County Venue Time Thursday Uriri Uriri Sub County 10.00 am 11th Headquarters February, 2016 Friday 12th ' iKuria East t j^?gonga.Sub County 10.00 am • February, Tlqs and Ntjmaru 2016~ Ward Administration office Monday Rongo Rongo Sub County 10.00am 15th Hqs February, 2016 Tuesday Suna East IFAD Hall 10.00 am 16th February, 2016 /ednsday Awendo Awendo Sub County 10.00am 17th Hqs February, 2016 Thursday Kuria West Kehancha Sub 10.00am 18th County Hqs February, 2016 Friday 19th Nyatike Sori DO’s Office and 10.00am February, Wath Onger CDF 2016 Office 40 Monday Suna West Chiefs Camp 10.00am 22th Kababu February, 2016 Public issues 124. Specific issues raised by members of the public on sectors include: Social Protection Culture and Recreation Sector 125. The public raised issues that included lack of a recreational centre for the youth in the whole county. The communities also proposed that sporting activities should start at the Ward levels. They also observed that cultural activities should be enhanced from the Ward level. The community also proposed that Miss Tourism Beauty Pageant should start from the Ward level. General Economics and Commercial Affairs Sector 126. There was a general public observation that most projects that had been proposed in the County Integrated Development Plan had not been done. They lamented that yearly public hearings, had not born apyljfffnts since they started in'the year -2013. They suggested t^aftte - County Government should implement projects they have suggested and not what the' CG want to implement. They also suggested that the C1DP should be given to them on time not at the end of 5 years. The public inquired why there were no Project Management Committees (PMCs) for County projects. They were informed that before such a committee is constituted, there should be a policy written that will be show among others the boundaries that such a committee will reach. They were informed that the same concern had been raised in other forums and the Public Service Management was auctioned to look in to it. 127. The public noted that there were various market shades that construction were still not complete and in some the fencing was substandard. In some markets, there were no pit latrines in other markets like Opoya market in West Sakwa Ward and Bongu market in South Sakwa Ward yet revenue was collected daily. They were informed that the department of Trade will be informed of the concerns above. Agriculture, Rural and Urban Development Sector 128. The public lamented that though farm inputs like fertilizer and certified seed were provided to them, CAN was not done because the input was not available. Though the county was promoting Soya Beans and Groundnut production like in Wasweta 11 in Suna West Sub County, farmers were not able to access the processing machines because they were far away. They were informed that machines will be idle due to lack of sufficient harvest and as soon as the produce increases the processing machines for value addition will be brought close to them. 129. The public wanted to know why only few farmers received dairy cows and why getting veterinary officers to treat animals was difficult. They were informed that the dairy cows arc 41 supposed to have a multiplier effect to be shared by all farmers in the long run and that the beneficiary areas to act as demonstration sites for training livestock farmers to adopt the same technology. The veterinary officers will visit farmers on demand basis. 130. There were fish ponds dug in Tagare Ward in Kuria West Sub County that the community said did not understand their purpose. It was noted that the community was not involved in identifying and owning the project. They were informed that a Fisheries officer in their Sub County will be contacted so that they can organize sensitization forum for the same with the community. Health Sector 131. The communities wanted to know the progress made in upgrading various dispensaries to health centers and health centers to sub county hospitals across the county. They also enquired why essential medicines were not available in many health facilities. They wanted to know the action the Health sector was taking in posting health workers to various health facilities. There were dispensaries that were being constructed that had stalled. The ambulances in the county were not sufficient. 132. On upgrading of health facilities to the next level, the communities were informed that there were various parameters considered before a health facility is upgraded like the numbei of patients received per day. On lack of essential drugs, they public was informed of the concerted efforts to ensure essential drugs in health facilities are available at all times. The CG has a Medical Training Center that will prpvidejiuman resource to enable -* - operationalization'of stalled health faciliti^'.i^ the number of ambulances in health facilities, the CG will ensure there is an ambulance for every health centre in the long run 133. There were no nurses at Oruba Dispensary in Oruba Ragana Ward. The public was informed that the staffing officer at the Health Center will be informed and the Ward Administrator should pick up the matter immediately. The public observed that the CCi was not appreciating the Community Health Volunteers in terms of allowances. They were informed that the CH Vs will be absorbed gradually when vacancies arise. Energy, Infrastructure and ICT Sector 134. The issues raised herein included: In various parts of the County like Makerero Ward in Kuria West Sub County, there are no solar street lighting. It was noted that some vital areas that required solar lights had been neglected. In other areas, the lights were either not working or not fully fitted. The communities were informed that the highlighted locations will be visited by the relevant department. 135. In other parts of the County, the community lamented that County roads were not completely done, like the Malanda-Nyakoru road in North Sakwa Ward, there is no bridge at Karenda-Tobosa road, in God Kachola Ward (North Nyandago Location) there were no roads done by the County Government. Some roads did not lead to any specific place or did not join other roads. There were roads with no or damaged bridges. They were informed that the mandate of the CG on roads was just to open a road and make it passable to the everyday 42 citizen like boda boda riders. However, the short rains experienced had also damaged roads and bridges, but when finances will be available they will be repaired and bridges erected. 136. Some community members did not see the importance of the LCD Screens erected across the county especially the one near Migori Primary School. They were informed that the screens will in the long run bring revenue to the county when they will be used as platforms to advertise various goods and services. Education Sector 137. The public noted that there was delay in payment of completed projects by treasury. There were delays in completing ECDE classrooms that were started in 2013/14 FY like Barasing ECDE, Maseno ECDE, and Nyabikemo ECDE in Wasweta II Ward in Suna West Sub County; Nyangubo ECDE, God Kachola and Aneko ECDEs in Kaler Ward, in Muhuru Ward no ECDEs have been started todate, Bukitimo and Metaburo ECDEs are stalled. Although ECDE classes were being constructed, there were no teachers. The public were informed that contractors that have relevant support documents for payment of work done should go to treasury and inquire on the progress of their payments. 138. The community was informed that there were many incomplete ECDE classrooms because most of the contractors that were awarded the tenders had no capacity/finances to do 'the works-: Most contractdtrl'were locals from Migori-County. Plans were underway tb’hitfRe - ^ sure that the classes were completed. 139. ECDE teachers had been interviewed and letters for their posting were being written. There will be 3 teachers per ECDE across the county. The communities were encouraged to take their children to Polytechnics for various trainings. They were informed that the number of technical instructors was low and so they should take advantage of the situation to educate their children to fill the positions in future. The public were urged to task Ward Representatives to set funds aside to improve the infrastructure of youth polytechnics in their wards using Ward Development Funds. 140. They were also encouraged to support the students who have been awarded the Ward bursaries and Governor’s scholarships to work hard in school so that the County resources do not go to waste. Environmental Protection, Water and Natural Resources Sector 141. Issues raised included uncollected rubbish making our towns dirty. There were areas where trees were planted by various groups but they were not taken care of like in South Kanyamkago Ward. There was no sufficient water supply in various parts of the county. 142. The communities were informed that rubbish collection has become a problem for the county but plans were underway to look for dumping sites in every sub county for disposal. 1 here was a view that tree planting to be taken directly to schools for proper and easy management by the administration and pupils/students. 143. I he communities were informed that the CG had invested on a drilling grill that will drill watei across the county. It was currently drilling in Nyatike Sub County them will be moved 43 to other areas. The cost of electricity was sighted as the major problem in pumping the Mikutra water. Public Administration and International Relations Sector 144. No issues were raised in this sector Governance, Justice, Law and Order Sector 145. No issues were raised in this sector 44