COUNTY GOVENMENT OF KITUI THE COUNTY TREASURY County Budget Review and Outlook Paper 2020 SEPTEMBER, 2020 FOREWORD The County Budget Review and Outlook Paper (CBROP), is prepared in accordance with Public Finance Management Act, 2012. It is the seventh to be prepared by the County Government of Kitui under the devolved governance structure. The outlook presents the actual fiscal performance of the FY 2019/2020 and projection of the 2020/21 FY hence making comparative analysis to the budget appropriations. The paper highlights the recent key economic development for the period under review for both the National and County Government. The report further provides an updated Medium Term Expenditure Framework (MTEF) financial forecasts and states how these projections deviated from estimates contained in the last County Fiscal Strategy Paper (CFSP) and actual budget for 2020/21 financial year (FY). The paper also shows how the actual performance at the local and national level in 2019/20 FY affected the County’s compliance with the fiscal responsibility principles and financial objectives as detailed in CFSP 2020. The County Government in collaboration with the National Government is implementing strategies and reforms geared towards accelerated economic growth and realization of the five pillars and the big four agenda. The County has adopted program based budget which is executed through the Integrated Financial Management Information System (IFMIS), the system prescribed in law for public institutions to ensure prudent and accountable use of public resources. Under the leadership of Honourable Charity Kaluki Ngilu, the county administration is making significant impact on addressing challenges faced by the residents of Kitui County residence through the implementation of the five pillars (Food and Water; Health Care, Education and Youth Development, Women Empowerment and Wealth Creation). Implementation of the five pillars in 2019/20 FY proved to bear fruits through successful Myanda irrigation project, water infrastructure and piping, artificial insemination, full operationalization of textile industry, reforms instituted in the health sector to lay ground for the Universal Health Coverage and skills development among others. The outlook gives a clear comparison of own revenue generation, grants and loans; and equitable share from the national government and other development partners hence gives appropriate recommendations on the changes in revenue. The County Government is committed and will continue to improve the welfare of the residents through implementation of life changing programs as outlined in the County Integrated Development Plan (CIDP) 2018 - 2022. Ben Katungi CECM, County Treasury County Government of Kitui. ii ACKNOWLEDGEMENT The preparation of CBROP 2020 was collaborative, with stakeholders drawn from all sectors, departments and agencies of County Government of Kitui. The whole process was guided by the department of Economic Planning. The process could not have been accomplished without the commitment, dedication, sacrifice and determination of all the members of staff of the County Government. First and foremost, I acknowledge the valuable leadership and support of Her Excellency the Governor Charity Ngilu. I wish to extend my gratitude to Mr. Ben Katungi, County Executive Committee Member for County Treasury for his technical support extended in the preparation of this paper. I appreciate the role played by all Chief Officers for leading their staff in providing the necessary information towards preparation of this document. I would like to pay special thanks to the officers working under Economic Planning department under the leadership of Director, Paul Kimwele, Principal Statistician, Victor Mwangu and the entire team of county economists Daniel Mbathi, Boniface Muli, Faith Munah, Hanrietah Ndunge, Charles Mulatia, Nicholas Koome and Geoffrey Gisaina who helped put this document together. The team put tireless quality time in production of this document. I may not mention everybody, but do acknowledge all those individuals who directly or indirectly contributed to the success of development and production of this paper. Dr. Justus M. Kalii, PhD Chief Officer – Economic Planning County Government of Kitui iii Table of Contents FOREWORD ........................................................................................................................................................... ii ACKNOWLEDGEMENT .......................................................................................................................................... iii EXECUTIVE SUMMARY ........................................................................................................................................ 1 I. INTRODUCTION.................................................................................................................................................. 2 II. REVIEW OF FISCAL PERFORMANCE IN FY 2019/20 ..................................................................................... 3 A. Overview ........................................................................................................................................................................... 3 B. 2019/20 Fiscal Performance ............................................................................................................................................. 3 C. Implications of FY 2019/20 fiscal performance on fiscal responsibility principles and financial objectives contained in the 2019 CFSP. ................................................................................................................................................................... 11 III. RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK ............................................................................ 12 Recent Economic Developments ........................................................................................................................................ 12 Macroeconomic stability (Inflation, Interest rates, Exchange rates) .................................................................................... 13 County Economic Outlook ................................................................................................................................................... 15 Risks to Economic Outlook ................................................................................................................................................. 16 IV. RESOURCE ALLOCATION FRAMEWORK .................................................................................................... 17 Adjustments to 2020/21 Budget .......................................................................................................................................... 17 Medium Term Expenditure Framework ............................................................................................................................... 17 Budget Framework 2020/2021 ............................................................................................................................................ 18 V. CONCLUSION AND WAY FORWARD............................................................................................................. 21 ANNEX I. EXPENDITURE ANALYSIS BY PROJECT/PROGRAMME ............................................................ 23 3711: Office of the Governor ((Development) ..................................................................................................................... 23 3712: Public Service Management and Administration ....................................................................................................... 24 3713: Ministry of Agriculture, Water & Livestock Development (Development) .................................................................. 25 3714: Ministry of Basic Education, ICT & Youth Development (Development) ................................................................... 29 3715: Ministry of Lands, Infrastructure Housing &Urban Development (Development) ...................................................... 30 3716: Ministry of Health and Sanitation (Development) ...................................................................................................... 31 3717: Ministry of Trade, Investment & Cooperatives (Development) .................................................................................. 43 3719: Ministry of Environment and Natural Resources ....................................................................................................... 64 3720: Ministry of Tourism, Sports and Culture .................................................................................................................... 70 3721: County Treasury ........................................................................................................................................................ 74 3723: County Assembly ...................................................................................................................................................... 74 3724: Kitui Municipality ....................................................................................................................................................... 75 3725: Mwingi Town Administration ..................................................................................................................................... 76 iv List of Tables Table 1: Revenue and Expenditure Summary for 2018/19 -2019/20FY ................................................ 3 Table 2: Schedule of Disbursement of Equitable Share 2019/2020........................................................ 5 Table 3: Own Source Revenue Generated 2019/20 FY .......................................................................... 6 Table 4: Own Source Revenue Generated by Ministry for the Period ending 30th June 2020 ............. 6 Table 5: Ministry/ Spending Entity Expenditure for the Period Ending 30th June 2020 (Kshs) .......... 10 Table 6: Revenue Projections 2015/16 – 2020/21 & Estimates for 2021/22 to 2022/23 FY ................ 19 List of Figures Figure 1: Pie Chart of Budgeted Revenue by Source ............................................................................. 7 Figure 2: Bar graph of budgeted vs Actual Revenue by Source ............................................................. 7 v ABBREVIATIONS ADP Annual Development Plan AI Artificial Insemination ASDSP Agricultural Sector Development Support Program ATC Agricultural Training Centre BQ Bills of Quantities CBROP County Budget Review and Outlook Paper CCTV Closed Circuit Television CECM County Executive Committee Member CFSP County Fiscal Strategy Paper CIDP County Integrated Development Plan CLIDP Community Level Infrastructure Development Projects COFOG Classification of Functions of Government COVID 19 Corona Virus Disease DANIDA Danish International Development Agency ECDE Early Childhood Development Education FAO Food and Agriculture Organization FY Financial Year GDP Gross Domestic Product ICT Information Communication Technology ICU Intensive Care Unit IFMIS Integrated Financial Management Information System KCEF Kitui County Empowerment Fund KCRH Kitui County Referral Hospital KDSP Kenya Devolution Support Programme KICOTEC Kitui County Textile Centre KIMWASCO Kiambere – Mwingi Water and Sanitation Company KITWASCO Kitui Water and Sanitation Company KSHS Kenya Shilling LAN Local Area Network MTEF Medium Term Expenditure Framework MTP Medium Term Plan NARGIP National Agricultural and Rural Inclusive Growth Project NBU Newborn Unit NHIF National Health Insurance Fund O&M Operation and Maintenance OPD Out Patient Department PE Personnel Emolument PFMA Public Finance Management Act PO Producer Organizations SCH School SEKU South Eastern Kenya University THSUC Transforming Health Systems for Universal Health Care vi Legal Basis for the Publication of the County Budget Review and Outlook Paper The County Budget Review and Outlook Paper is published in accordance with Section 118 of the Public Finance Management Act, 2012. The law states that: 1. A County Treasury shall – a) prepare a County Budget Review and Outlook Paper in respect of the county for each financial year; and b) Submit the paper to the County Executive Committee by 30th September of that year. 2. In preparing the county Budget Review and Outlook Paper, the County Treasury shall specify – a) details of the actual fiscal performance in the previous year compared to the budget appropriation for that year; b) updated economic and financial forecasts with sufficient information to show changes from the most recent County Fiscal Strategy Paper; c) information on – i. any changes in the forecasts compared with the County Fiscal Strategy Paper; ii. how actual financial performance for the previous financial year may have affected compliance with fiscal responsibility principle, or the financial objective in the County Fiscal Strategy Paper for that year; and d) Reasons for the deviations from the financial objectives in the County Fiscal Strategy Paper together with proposal to address the deviations and estimated time for doing so. 3. The County Executive Committee shall consider the County Budget Review Paper with a view to approving it, with or without amendments, within fourteen day after its submission. 4. Not later than seven days after the County Budget Review and Outlook Paper is approved by the County Executive Committee, the County Treasury shall – a) Arrange for the Paper to be laid before the County Assembly; and b) As soon as practicable after having done so, publish and publicise the Paper. vii Fiscal Responsibility Principles for the National and County Governments In line with the Constitution, the Public Finance Management (PFM) Act, 2012, sets out the fiscal responsibility principles to ensure prudent and transparent management of public resources. The PFM Act, 2012, (Section 107) states that: 1) A County Treasury shall manage its public finances in accordance with the principles of fiscal responsibility set out in subsection (2), and shall not exceed the limits stated in the regulations. 2) In managing the county government’s public finances, the County Treasury shall enforce the following fiscal responsibility principles- (a) the county government’s recurrent expenditure shall not exceed the county government’s total revenue; (b) over the medium term a minimum of thirty percent of the county government’s budget shall be allocated to the development expenditure; (c) the county government’s expenditure on wages and benefits for its public officers shall not exceed a percentage of the county government’s total revenue as prescribed by the County Executive member for finance in regulations and approved by the County Assembly; (d)over the medium term, the government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure; (e) the county debt shall be maintained at a sustainable level as approved by county assembly; (f) the fiscal risks shall be managed prudently; and (g) a reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future. 3) For the purposes of subsection (2) (d), 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. 4) Every county government shall ensure that its level of debt at any particular time does not exceed a percentage of its annual revenue specified in respect of each financial year by a resolution of the county assembly. 5) The regulations may add to the list of fiscal responsibility principles set out in subsection (2). viii EXECUTIVE SUMMARY The core purpose of the 2020 CBROP is to provide a review of the previous fiscal performance and how this impacts the financial objectives and fiscal responsibility principles. This are set out in the last County Fiscal Strategy Paper (CFSP) which provides the basis for the revision of the current budget in the context of supplementary estimates and informs the choice of broad fiscal parameters underpinning the next budget and medium term expenditure framework. Analysis of the 2019/20 FY fiscal performance shows a drop in absorption rate of development funds from 86% to 84%. There was reported improvement in the performance in revenue collection despite the ban on sand and charcoal cess and delay in the operationalization of liquor licence. A review of the recent economic developments and outlook both at the National and County levels reveals that the Kenyan economy has staggered from the previous year’s leading to a decrease in revenue collection and equitable share received by counties. The departments need to rationalise their budget to align resources availability to needs, allocating funds to quick-win-projects. The County Treasury has automated its revenue collection to improve revenue collection. The County Government managed to collect Kshs. 408 million from its internal sources reflecting a 7.97% decline from 2018/19 FY performance. On the expenditure side, the County Government continued to rationalize expenditures to improve efficiency and reduce wastage. In the medium term, expenditure management is expected to improve given the various budget rationalisation reforms undertaken and as a result tightening of the fiscal framework to create room for more productive expenditures. Global economic performance weakened significantly in the first half of 2020 in 2019, the global economy slowed down to 2.6% compared to 3.6% in 2018 due to the disruptions brought about by the Covid-19 pandemic. Lockdowns, travel restrictions and other measures aimed at containing the pandemic had adversely affected supply and demand of goods and services 1 I. INTRODUCTION Objective of the County Budget Review and Outlook Paper (CBROP) 2020 1. The main objective of the 2020 CBROP is to review the fiscal performance for 2019/20 FY and how this impacts the financial objectives and fiscal responsibility principles set out in the last County Fiscal Strategy Paper 2019/20 released in February 2019. The paper further outlines the expenditure and revenue in 2019/20 FY providing budgeting bases in the current financial year of 2020/21 and medium term expenditure. 2. The CBROP, like the CFSP links policy, planning and the budgeting through reviewing the performance of the government in line with the budget and the laid down policies as tied to the broad priorities. These policies include the Kenya Vision 2030 and its Medium Term Plans I, II & III (MTP I, II &III), the County Integrated Development Plan (CIDP (2018-2022) and all other national and county policies relevant to planning. 3. The report rolls out the implementation of the development projects initiated in 2019/20 financial year, and continues to address the five pillar manifesto areas of CFSP 2019 framed around the five key pillars ensuring development enjoyed by every sector of the economy. These pillars are Pillar I: Food and Water. Pillar II: Health Care. Pillar III: Education and Youth Empowerment. Pillar IV: Women Empowerment. Pillar V: Wealth Creation. 4. The rest of the paper is organised as follows: Section II provides a review of the fiscal performance in FY 2019/20 and its implications on the financial objectives set out in 2019/2020. This is followed by brief highlights of the recent economic developments and updated revenue and expenditure in section III. Section IV provides the resources allocation framework, while Section V gives the development projects implemented in 2019/2020 FY. 2 II. REVIEW OF FISCAL PERFORMANCE IN FY 2019/20 A. Overview 5. The fiscal performance shows a drop in absorption rate from 86% to 84%, and revenue side where revenue collection reduced by 7.97 % from Kshs. 443 million in 2018/19 FY to Kshs. 408 million in 2019/20FY. 6. The revenue target for the 2019/2020 FY was not attained due to staff go slow for the first two and half months of the year as a result of salary delays due to budget impasse. In addition the impact of Covid 19 pandemic had adverse effect on key revenue streams. Additionally, delays in operationalization of the liquor licensing Act led to lower than expected revenues. The revenue of the year deviated by 32% of the target amount. Due to these factors, the county collected revenues under normal circumstances for five and half months during the year under review. B. 2019/20 Fiscal Performance 7. The table below presents the fiscal performance for the FY 2018/19 and FY 2019/20 together with the deviations from the original budget estimates of FY 2019/20. Table 1: Revenue and Expenditure Summary for 2018/19 -2019/20FY 2018/19 2019/20 Deviation Actual Targets Actual Targets (%) A. TOTAL REVENUE AND GRANT 1. Revenue 10,053,012,211 10,468,402,589 9,764,845,396 9,956,560,232 (2) Equitable Share 8,729,200,000 8,729,200,000 8,830,350,000 8,830,350,000 0 Other Revenues 1,323,812,211 1,739,202,589 934,495,396 1,126,210,232 (17) Locally Generated Revenue 443,644,680 859,035,058 408,285,164 600,000,000 (32) Unspent Balances b/fwd. 880,167,531.00 880,167,531 526,210,232 526,210,232 0 2. Grants Kenya urban support program (kusp) 232,374,200 232,374,200 166,203,043 363,132,592 (54) Compensation for user Fees Forgone 22,499,906 22,499,906 22,499,906 22,499,906 0 Road Maintenance Fuel Levy 287,290,294 326,050,314 250,655,344 280,638,858 (11) Grants from World Bank Kenya devolution 65,054,392 30,000,000 30,140,998 (0) support program(KDSP) - HSSF/HSPS - (DANIDA/IDA) 29,008,126 33,824,572 35,792,500 26,062,500 37 Urban institutional grand 41,200,000 41,200,000 8,800,000 50,000,000 (82) World Bank loan for Transforming Health 67,082,450 147,468,520 103,785,962 146,059,341 (29) Systems for Universal Care Project FAO Support Vaccination Program 9,925,960 4,337,271 (100) - Agriculture Sector Development Support 8,946,484 24,573,008 19,410,807 36,633,313 (47) Programme (ASDSP) World Bank loan for National Agricultural 50,078,476 191,257,349 268,608,366 384,709,261 (30) and Rural Inclusive Growth Project Conditional Allocation for Development of 44,141,075 126,041,636 72,588,298 72,882,525 (0) Youth Polytechnics Pro Poor 1,592,166 (100) GoK Conditional Grant - Covid Fund 488,788,000 420,000,000 16 3 2018/19 2019/20 Deviation Actual Targets Actual Targets (%) Total Grants 782,621,011 1,220,269,857 1,467,132,226 1,838,688,731 (20) Total 10,835,633,222 11,688,672,446 11,231,977,621 11,795,248,963 (5) B. EXPENDITURE 1. Recurrent 6,611,386,144 7,059,912,887 7,064,243,419 7,404,757,790 (5) Salaries and Wages 4,127,719,715 4,209,457,124 4,278,690,780 4,360,436,559 (2) O&M/Others 2,483,666,429 2,850,455,763 2,785,552,639 3,044,321,231 (9) 2. Development 3,481,323,843 4,628,759,559 2,845,927,207 4,390,491,173 (35) Total 10,092,709,987 11,688,672,446 9,910,170,626 11,795,248,963 (16) C. SURPLUS/(DEFICIT) 742,923,235 1,321,806,995 Notes i. Equitable share: This is the amount of funds the county government expected to receive from the national government, as shared out using the Commission on Revenue Allocation formula, which was disbursed in full for the period. Revenue a. Equitable Share and Grants The total disbursement to the county revenue fund account during the financial year 2019/2020 was Kshs 8,830,350,000, representing 100% of the total equitable share the county expected to receive from National Treasury. This represents an improvement of 0.16% from previous financial year of 2018/19 FY. Over the same period, the county expected to receive grants totalling to Kshs 1,838,688,731 from both the National Treasury and International donors (World Bank, United Nations Development Fund and DANIDA) as outlined in Table 2. A total of Kshs 1,467,132,226 was received from grants, representing 79.8 % of the total grants while Grants from FAO Support Vaccination Program Kshs 4,337,271 was not received. Table 2 shows schedule of disbursement of equitable share and grants under the review period. 4 Table 2: Schedule of Disbursement of Equitable Share 2019/2020 Month Date Received Amount July 19/9/2019 441,517,500 August & september 25/9/2019 1,094,963,400 October 17/10/2019 706,428,000 November 13/12/2019 883,035,000 December 8/1/2020 794,731,500 January 31/1/2020 927,186,750 February 26/2/2020 794,731,500 March 27/3/2020 706,428,000 April 30/4/2020 927,186,750 May 24/6/2020 794,731,500 June 5/8/2020 759,410,100 Total 8,830,350,000 GRANTS Transforming Health Systems for 19/12/2019 33,243,367 Universal Care Projects acount-THUCS Transforming Health Systems for 8/1/2020 70,542,595 Universal Care Projects acount-THUCS DANIDA 28/1/2020 13,031,250 DANIDA 30/6/2020 9,730,000 DANIDA 15/6/2020 13,031,250 Kenya Devolution Support Programme 2/7/2020 30,000,000 Kitui Municipality Urban institutional 2/7/2020 8,800,000 Grand Kitui Municipality Urban Development 2/7/2020 166,203,043 Grand Village polytechnic grant 21/1/2020 36,294,149 Village polytechnic grant 4/6/2020 36,294,149 Agricultural sector development Project 31/1/2020 2,500,000 Agricultural sector development Project 14/2/2020 8,946,484 Agricultural sector development Project 23/3/2020 6,464,323 Agricultural sector development Project 13/5/2020 1,500,000 NARGIP 5/11/2019 67,005,055 NARGIP 19/12/2020 19,933,907 NARGIP 25/2/2020 86,672,556 NARGIP 29/5/2020 654,877 NARGIP 29/5/2020 94,341,971 COVID -19 FUNDS 4/6/2020 120,358,000 COVID -19 FUNDS 6/7/2020 68,430,000 COVID -19 FUNDS Direct Transfer to the Hospital 300,000,000 User fees 4/6/2020 22,499,906 Fuel Levy Fund 20/11/2019 62,663,836 Fuel Levy Fund 17/2/2020 62,663,836 Fuel Levy Fund 12/5/2020 62,663,836 Fuel Levy Fund 2/7/2020 62,663,836 5 Month Date Received Amount Total 1,467,132,226 Grand Total 10,297,482,226 The table 3 shows revenue target and actual amount collected during the period under review (2019/2020 FY). Table 3: Own Source Revenue Generated 2019/20 FY Month Target Amount Collected Variance July 50,000,000 35,043,245 -14,956,755 August 50,000,000 28,672,529 -21,327,471 September 50,000,000 15,552,182 -34,447,818 October 50,000,000 39,656,583 -10,343,417 November 50,000,000 29,174,726 -20,825,274 December 50,000,000 23,853,922 -26,146,078 January 50,000,000 36,931,226 -13,068,774 February 50,000,000 50,301,348 301,348 March 50,000,000 57,193,273 7,193,273 April 50,000,000 22,847,951 -27,152,049 May 50,000,000 19,379,744 -30,620,256 June 50,000,000 49,678,435 -321,565 Total 600,000,000 408,285,164 -191,714,837 Own Source Revenue Generated 8. The total revenue generated by the county over the period was Kshs 408,285,164, down from Kshs 443,644,680 collected during FY 2018/2019 amounting to a 7.97% decline. The table 4 shows performance of revenue collection per ministry in the period under review. Table 4: Own Source Revenue Generated by Ministry for the Period ending 30th June 2020 County Ministries/Entity Targeted Amount Actual Collection Variance (%) The County Treasury 140,000,000 62,542,260 (55) Kitui Municipality 67,000,000 36,591,889 (45) Mwingi Town Administration 35,000,000 20,370,670 (42) Office of the Governor 15,200,000 12,048,730 (21) 6 County Ministries/Entity Targeted Amount Actual Collection Variance (%) Ministry of Land Infrastructure, Housing & 35,000,000 18,417,352 (47) Urban Dev. Ministry of Agriculture, Water & Livestock 24,000,000 29,343,230 22 Development Ministry of Environment, Energy and Minerals 1,800,000 2,183,100 21 Investment Development Ministry of Health and Sanitation 230,000,000 181,897,534 (21) Ministry of Tourism, Sports and Culture 2,000,000 138,000 (93) Ministry of Trade, Cooperatives and 50,000,000 44,752,398 (10) Investments Total 600,000,000 408,285,164 (32) Figure 1: Pie Chart of Budgeted Revenue by Source Figure 2: Bar graph of budgeted vs Actual Revenue by Source 7 Expenditure 9. The approved budget for the county was Kshs. 11,795,248,963 comprising of 63 % recurrent (7,404,757,790) and 37 % development ( Kshs 4,390,491,173). The development vote represents 7% above the minimum PFM Act 2012 recommended ceiling for funds allocation to development expenditure. 10. Total expenditure for the year ending 30th June 2020 amounted to Kshs 9,910,170,626; representing gross absorption of 84%, down from 86% in 2018/19 FY. Of this expenditure, recurrent expenditure was Kshs 7,064,243,419 (71.3%) while development expenditure amounted to Kshs 2,845,927,207 (28.7%). 11. Analysis of recurrent expenditure shows that Personnel Emoluments (PE) and Operations and Maintenance (O&M) accounted for 36.9% and 25.8% respectively of the total expenditure, compared to 36.0% and 24.3% in the previous financial year. This reveals a slightly upward trend for PE and O&M expenses, explained by recruitment of health workers to fill in existing gaps in the sector. 12. The overall expenditure significantly decreased from Kshs 10,092,709,987 in the financial year 2018/19 to Kshs 9,910,170,626 in 2019/20 FY. The proportion of actual development expenditure to the total expenditure reduced from 34.5 % in 2018/19 to 29 % in 2019/2020 FY. However, recurrent expenditure increased from 65.5% to 71% in 2019/2020 financial year. 13. Within the financial year 2019/2020, the actual expenditure on the recurrent budget realised the highest level of absorption at 95% up from 93 % in the previous year. Development budget expenditure was 65 % in 2019/20 down from 75% in 2018/19. 8 The absorption rate in both development and recurrent expenditures resulted to the overall absorption rate rising to 84%. 14. Table 5 presents analysis of the total expenditure by county spending entities giving the overall absorption rate. Amounts in brackets indicate the deviation from the planned target expenditures. 15. The amount of Kshs 1,885,078,338 indicated in table 5 as not having been absorbed includes funds budgeted as local revenue but never realised of Kshs. 191,714,836 and an amount FAO Support Vaccination Program Kshs 4,337,271 were not received amongst other monies whose release and absorption was affected by the Covid 19 Pandemic. 16. The development expenditure for the period 2019/2020 FY was Kshs 2,845,927,207 (29) compared to Kshs 3,481,323,843 (34.5%) spent in the 2018/19 financial year. This represents a 5.5% decrease spend in the financial year 2019/20 below the amount absorbed on development budget in the previous year. 17. The decreased absorption rate in the Ministries was due to failed implementation of development projects due to Covid 19 pandemic and political animosity in the County. 9 Table 5: Ministry/ Spending Entity Expenditure for the Period Ending 30th June 2020 (Kshs) Jun – 20 Variance % Jun - 20 Variance % Jun - 20 Variance % of total exp Spending Entity Recurent Development Total to budget Actual Target Actual Target Actual Target Office of the Governor 560,938,797 627,633,518 66,694,721 11 376,639,764 758,256,302 381,616,538 50.3 937,578,561 1,385,889,820 448,311,259 67.7 Administration & 392,123,220 404,750,315 12,627,095 3 7,063,545 7,382,956 0 0.0 399,186,765 412,133,271 12,946,506 96.9 Coordination of County Affairs Agriculture, Water & 445,301,262 458,920,046 13,618,784 3 961,140,009 1,213,335,78 252,195,773 20.8 1,406,441,271 1,672,255,828 265,814,557 84.1 Livestock Development 2 Basic Education, ICT, & 463,465,309 475,008,545 11,543,236 2 54,525,722 219,093,062 164,567,340 75.1 517,991,031 694,101,607 176,110,576 74.6 Youth Development Lands, Infrastructure, 227,704,435 234,090,201 6,385,766 3 504,156,591 629,813,650 125,657,059 20.0 731,861,026 863,903,851 132,042,825 84.7 Housing, & Urban Development Health and Sanitation 3,101,383,727 3,240,240,197 138,856,470 4 364,282,236 483,137,965 118,855,729 24.6 3,465,665,963 3,723,378,162 257,712,199 93.1 Trade, Cooperatives and 303,116,192 303,984,165 867,973 0 196,594,092 315,822,571 119,228,479 37.8 499,710,284 619,806,736 120,096,452 80.6 Investments Environment & Natural 87,124,564 98,915,261 11,790,697 12 60,273,383 132,377,575 72,104,192 54.5 147,397,947 231,292,836 83,894,889 63.7 Resources Tourism, Sports and Culture 103,631,224 115,685,836 12,054,612 10 47,433,762 99,153,104 51,719,342 52.2 151,064,986 214,838,940 63,773,954 70.3 The County Treasury 383,149,492 386,342,940 3,193,448 1 4,299,600 30,140,998 25,841,398 85.7 387,449,092 416,483,938 29,034,846 93.0 County Public Service 26,425,632 29,699,077 3,273,445 11 0 0.0 26,425,632 29,699,077 3,273,445 89.0 Board County Assembly 839,817,962 909,239,760 69,421,798 8 20,550,290 40,000,000 19,449,710 48.6 860,368,252 949,239,760 88,871,508 90.6 Kitui Municipality 69,640,393 58,417,553 -11,222,840 -19 236,282,655 440,766,407 204,483,752 46.4 305,923,048 499,183,960 193,260,912 61.3 Mwingi Town 60,421,210 61,830,376 1,409,166 2 12,685,558 21,210,802 8,525,244 40.2 73,106,768 83,041,178 9,934,410 88.0 Administration TOTAL 7,064,243,419 7,404,757,790 340,514,371 2,845,927,207 4,390,491,174 1,544,244,556 9,910,170,626 11,795,248,964 1,885,078,338 84.0 10 C. Implications of FY 2019/20 fiscal performance on fiscal responsibility principles and financial objectives contained in the 2019 CFSP. 18. The performance of FY 2019/2020 did not affect the financial objectives set out in the 2020 CFSP and the budget for FY 2019/20 in any fundamental way. However: i. Due to underperformance in revenue and realisation that some grants expected from the National Treasury will not be received, actual re-vote did not include this amount; ii. The decelerated absorption rate recorded in 2019/20 FY is likely to inform the reallocation of funds during supplementary budget. However, this will have to be done within the broader priorities set out in the CFSP 2020 and all other medium-term policies; and iii. Funds not spend in the previous year (ie 2019/20 FY) whether recurrent or development are reallocated to development in current year (2020/21 FY). 19. During the third and fourth quarters of 2019/2020 FY, the world and the country experienced inactivity due to the Covid 19 pandemic while the county received inadequate rainfall hence resulting to poor crop harvest and development of livestock across the county. Due to this effect, the County ministry of Agriculture, Water and Livestock Development had introduced the Myanda irrigation projects in-order to boost the food security and livestock improvement through the Artificial Insemination (AI). 20. County’s local revenue projections will remain as set out in CFSP 2020, since the assumptions have not changed. Revenue collection from devolved functions is still performing below forecasts, mainly due to operational and other setup challenges. There is need to review all the revenue streams for each county ministry/ entity and assess its potential to ensure realised revenue does not vary much to forecasts. 21. The County economy is based on the Agriculture sector, several measures to boost the food security were put in place during the period under review. This measures included the drilling of boreholes, construction and desilting of earth dams to increase the availability of water, pest and vector control, bee keeping and honey production, artificial insemination and the Myanda irrigation project and fruit value chain promotion. 11 III. RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK Recent Economic Developments a) National 22. Global economic performance weakened significantly in the first half of 2020 In 2019, the global economy slowed down to 2.6% compared to 3.6% in 2018 due to the disruptions brought about by the Covid-19 pandemic. Lockdowns, travel restrictions and other measures aimed at containing the pandemic had adversely affected supply and demand of goods and services. The economic growth in Sub-Saharan Africa region has declined from 3.1% in 2018 to 2.4% in 2019. 23. Kenya’s economy registered a decrease in economic performance in 2019. The economy declined to 5.7 percent in 2019 from a growth of 6.3 percent in 2018. The decline in economic growth is as a result of locust invasion which led to decreased agricultural production and the Covid – 19 (coronavirus) pandemic which has led to high rate of unemployment due to closure or scaling down of operations by most of the businesses and loss of income from tourism sector. 24. The Kenyan economy adjusted 2020 forecast is at 1.0 percent. In the first quarter of 2020, the economy expanded by 4.9 percent compared to a growth of 5.6 percent in the same quarter of 2019 supported by strong growth in the service sector industries despite contraction in agricultural activities due to locust invasion, covid 19 pandemic, delayed rains and climatic changes across the country. 25. The economy continues to register macroeconomic stability with low and stable interest rates and competitive exchange rate to support exports. The overall year inflation remained within target at 4.59 percent in June 2020 compared to 5.0 percent in June 2019 driven by a general decline in food prices. 26. The foreign exchange market remains stable supported by a narrower current account deficit. The current account deficit increased to 5.2 percent of GDP in May 2020, from 3.8 percent in June 2019. The increase in current account deficit is as a result of decline in agricultural exports particularly horticulture and coffee, poor diaspora remittances, and reduced tourism receipts. 27. Climatic changes which has resulted to floods in 2019/20 and locusts invasion hence affecting agricultural productivity. These affected the food prices hence high cost of living. The Government introduced measure to ease the cost of living by pension’s coverage for those who are 70 years and above - cash transfer in the form of a monthly stipend and NHIF cover. Expansion of lower tax bracket - expand the tax bands by 10% and increase the relief by another 10%. Cash transfers to orphans and vulnerable children; the elderly; and to persons with disability. Support to education like waiver of exam fees; Free Primary Education; Free Day Secondary Education; budget support to Technical Training Institutes; Universities; and to the Higher Education Loans Board. Free Maternal Health Care (Free NHIF Cover for all mothers for one year); Free Primary Healthcare; purchase of medical equipment under the MES 12 28. Within the period under review, the government debt stood at Ksh 6.7 trillion by June 2020 during the 2019/2020 FY. This includes Kshs 3.2 trillion of domestic debt and 3.5 trillion of external debt. The significant increase in public debt over the period has seen Kenya come under increasing pressure to slow down its uptake of loans so as to avoid it approaching unsustainable levels. Some of the measure would include reducing the levels of corruption in the government ministries. b) County level 29. In the period 2019/2020 FY, the National government had several planned projects/programmes at County level which have great impacts in the Kitui County economy. The two main projects are road construction and Mega dam construction. 30. The government rolled out the Kibwezi-Mutomo-Kitui Road which is a project under the Lamu Port Southern Sudan Ethiopia Transport (LAPSSET) will have great impact on the economic growth of Kitui County. The interconnectivity of the road is expected to improve trade between Kitui County and other counties in the coastal region and Mount Kenya region. The project in end 2019/20 FY, 170 km of tarmac road had been completely constructed from Kibwezi-Mutomo-Kitui. 31. To improve the food production and availability of clean water, the government started construction of Mega dam (Thwake Dam) along the Athi-river. The project will enable the residence of Kitui County specifically in Kitui rural and Kitui south to access the water for domestic and agricultural use. In addition, the projects have created job opportunities for the youth in areas along the dam. Macroeconomic stability (Inflation, Interest rates, Exchange rates) 32. In the 2019/2020 FY, the overall inflation remained within the government target range at 4.59 percent in June 2020 down from 5.0 percent in June 2019. This decrease reflected lower prices of key food items such as carrots, potatoes, sifted maize flour, cabbages, and fresh packed milk. However, food inflation declined from 6.7% in June 2019 to 5.43 percent in June 2020 reflecting declining prices of key food items such as Sukuma wiki, Irish potatoes, Cabbages, Carrots and Tomatoes 33. The recorded inflation of the Non-Food and Non-Fuel has remained below 5% in the period under review reflecting muted demand pressures in the economy arising from prudent monetary policies. Fuel inflation rose gradually beginning August 2018 on account on the ban of charcoal and imposition of Value Added tax on petroleum products. The effect of these measures on fuel inflation coupled with declining oil prices has led to a decline in fuel inflation. 34. In the exchange rates markets, the Kenya Shilling has been relatively stable supported by continued narrowing of the current account deficit and adequate reserve buffer. The Shilling appreciated against the Euro and the Sterling pound exchanging at Ksh 117.7 and Ksh 129.864 in June 2020 from Ksh 114.9 and Ksh 125.5 in June 2019, respectively. However, against the US Dollar, the Shilling weakened in June 2020 exchanging at 106.5 13 compared to the same period in 2019 at Ksh 103.3. The depreciation of shilling is attributed to increased demand for import and excess liquidity in the money market. 35. Interest rates have remained fairly low and stable within the 2019/2020 FY. The Monetary Policy Committee in July 2020 reduced the Central Bank Rate to 7.25 percent from 9.0 percent in July 2019 hence reducing the commercial banks interest rates from 13% to 11.94%. The interbank rate remained low at 2.12 percent in August 2020 from 3.6 percent in August 2019 due to ample liquidity in the money market. The 91-day Treasury bill rate declined to 6.267 percent in June 2020 compared to 6.4 percent over the same period in June 2019. Medium Term Fiscal Framework 36. In the medium term, the county government will ensure effective fiscal policy with an aim of improving the revenue collection and controlling the county expenditure. The county ministries will be required to set-up realistic targets with clear explanation of the revenue sources, challenges and measures to mitigate the challenges in the medium term. 37. The county government will adhere to the debt management policies under the PFM Act 2012 which gives borrowing guidelines of the counties hence there is no plans to finance the budget deficit through a loan. However, the county government will raise more funds through donors and grants for the development purposes. Very high level of planning will be adopted to reduce the chances of contingent liabilities. 38. The revenue collection targets is mostly affected by the delays in passing of Finance Bills in the county assembly. Within the medium term plan, it is recommended that all laws that allow the county to collect levies be prepared and approved on time to ensure adherence to legal provisions and maximise on the revenue collection period. Any delay in passing bills into laws shortens implementation period, thus affecting resource mobilisation timeframe. 39. The county government in the fiscal years, the Socio-economic growth of the Kitui residence is expected to improve over the medium term due to investments in strategic areas under the “Five Pillars” Plan that aim to increase the level of food security and water, health care, Education and Youth Empowerment, Women Empowerment and Wealth Creation. These pillars will support the business environment, create jobs and ultimately promote broad based inclusive growth within the County. 40. The county will partner with private organizations, Non-Governmental organizations to form Public-Private partnership in implementing major projects in infrastructure such as electricity connection, solar power generation, water supply, sewer system management, ICT projects , affordable housing scheme and other infrastructure projects. 41. In procurement, the county will follow the procurement Act which give guidelines on the procurement process. The county government embrace e-procurement since every ministry has prepared the Annual Procurement Plans to guide the procurement in the current 14 fiscal year 2020/2021. The county has also trained more personnel to address procurement capacity gaps and fast-track the process. 42. Since 2013, the county has never achieved 100% revenue collection across all the ministries. To address the low achievement in revenue collection, the County Treasury will put in place Revenue Enhancement Plan which will ensure high revenue turnover in the 2020/2021 FY. Other strategies in the plan may include the automation of revenue collection across the county which is currently ongoing. County Economic Outlook 43. Kitui County’s economy has slightly decelarated in the 2019/2020 FY as compared to 2018/2019 FY. This has been due to the Covid 19 pandemic that has led to closure of small and medium enterprises due to shortage of supply and high cost of doing business resulting from restriction measures . The local revenue under the period decreased by 7.97% in relation to the previous 2018/2019 FY. 44. In the 2019/2020 FY, the county purchased a stone crusher and leased land with an aim of creating more wealth and maximising the available resources in Kitui Rural Sub- County. The crusher will act as economic boost with its supply of ballast to Thwake dam and other infrastructure within the county. In addition the crasher will create job opportunities to the youth and revenue to the County. 45. With an aim of wealth creation and Youth empowerment, the county established a Textile center (garment factory) at Syongila in Kitui Township ward. The Kitui County Textile Centre (KICOTEC) which was awarded are tender by the National Government to produce uniforms to all chiefs across the country. The factory has continuously produced school uniforms to secondary and primary schools, special group’s uniforms. The Textile Centre was tasked to manufacture masks and protective gears in aid of curbing the Covid 19 pandemic. Due its operational, the factory has created job opportunities to 350 youths and additional revenue to the county. 46. In 2019/2020 FY, the county empowered the farmers in bee keeping and honey production which involved training, purchase and distribution of the cab hives. This ensured the modern methods of bee keeping with increase the honey production and quality hence value chain addition on the honey. 47. Within the same period 2019/2020 FY, the county promoted the high value horticultural crops programmes in the Myanda irrigation project which aimed to increase the food security. The projects involved supply of assorted seeds, fungicides and the insecticides to the selected areas. This promoted the crop value chain, creates wealth and job opportunities. 48. Within the same period, operationalization of farm tractor ploughing services was conducted across the county with an aim of improving the food productivity. The long and short rains of year was below normal hence affected the productivity of green grams and other crops. 49. In the 2019/2020 FY, to provide the county residence with clean water for domestic use and agriculture, the county constructed/ desilting of earth dams/ pan and rock catchments, 15 water pipelines extensions and drilling and equipping of boreholes. These promoted the production of food and development of the livestock across the county. The boreholes were installed with solar powered pumps which reduces the cost of operation. 50. In the 2019/20 FY, the county government provided subsidies to WSPs to KITWASCO & KIMWASCO who supply water to Kitui town and Mwingi town respectively. These promoted the provision of clean water to residence of the two towns. 51. For any economy to grow, road infrastructure is a key enabler hence the county graded, constructed and repaired roads across the county. The road project included bush clearing and construction of drifts. As a result, there smooth movement of persons and goods across the county. Risks to Economic Outlook 52. A larger and unanticipated shock by the COVID-19 pandemic could reduce growth into a recession. This might have adverse effects to Kenya’s economic growth thus lead to reduced collected revenue. This will affect service delivery and through spiral effects affect many counties in their effort to serve their residents. The county government depends much on the equitable share on its operation since Local revenue contributed 3.6% of the overall expenditure of 2019/2020 FY. 53. The revenue collection target for the 2019/2020 FY, only 68% was achieved hence resulted to low service delivery due to the amounts which were not received. To address the challenge, the county government shall set up realistic revenue targets which clear explanation of the revenue sources across the ministries. 54. The national as well as the county are dependent on the rain fed agriculture. Erratic weather pattern that is so characteristic in our county derailed the county development agenda with substantial resources channelled to emergency relief services and other associated expenditures. This unpredictable weather patterns pose real threat to our forecast given that Kitui is food deficient and hunger results in emergency reallocation of resources which are unprecedented. 55. The county economic growth was much affected by the political goodwill from the political class which involved the delay in enacting of bills into laws and liquor licensing structure, approving annual supplementary budgets hence affecting project implementations and service delivery. 56. In revenue collection, resistance of revenue payments in some areas and more gaps in the revenue collection resulted to low revenue turnout across the ministries. To address the issues, most of the revenue avenues are fully automated, staff training and public awareness on the benefits of the optimum revenue collection within the county. 16 IV. RESOURCE ALLOCATION FRAMEWORK Adjustments to 2020/21 Budget 57. The National economic outlook for the 2019/20 FY on macroeconomic suggest that 2020/21 FY budget may be significantly affected by the declining economic growth due to Covid 19 pandemic, increasing public debt, instability in foreign exchange on major currencies, inflation and instability in interest rates. The national government has made milestones in exportation of crude oil and ensuring tax compliance which will act as additional revenue to the National budget. 58. In the county level, though the level of absorption of 84% in 2019/2020 reflects a decline from previous year’s budget, a strategy is being drafted to ensure that steady performance is supported while rolling over to 2020/21 financial year and aim on 90%+ budget absorption. 59. The project implementation status by the ministries clearly indicates the need for the departments to maximise the available resources on need based planning which will ensure the key projects are implemented. These project will have great impact on socio-economic lifestyle of Kitui residence. These will ensure non-priority projects are allocated the least resources and the resources allocated to development may not, by any way be allocated to recurrent expense in the upcoming supplementary budget. 60. In order to achieve the revenue target set out in the 2020/21 budget, the revenue department of the County Treasury will continue to implement the automation of revenue to improve revenue collection. The supervision of revenue collection is essential to seal off all possible revenue leakages and loss through non-collection. 61. The County Government continued to rationalize expenditures to improve efficiency and reduce wastage of the resources’. Within the medium term, the ministries will have measures on expenditure control in order to regulate any increase in pending bills. Finally, the PFM Act, 2012 is expected to guide and accelerate reforms in expenditure management system necessary for the efficient utilisation of resources hence debt management. Medium Term Expenditure Framework 62. In the 2020/2021 FY, the MTEF budgeting will consider allocation of the resources to key priority sectors in order to offer service delivery according to public participation conducted for CFSP 2020/21 FY. The prioritized projects are lifted from the broad priorities in ADP for 2020/21 FY and the CIDP 2018-2022 and other national planning documents. 63. According to the organization of the County ministries with guidelines from the Classification of Functions of Governments (COFOG) and the national level, the following key ministries have been allocated much funds to drive the key pillars. i. The ministry of Agriculture, Water and Livestock Development drives the key economic pillar of water and food security. The ministry has been allocated Kshs. 1.661B presenting 14.% of the total budget. ii. The ministry of health and Sanitation which drives the pillar number two of health care has been allocated Kshs.3.4B presenting 28% of the total budget. The ministry has the highest budget allocation for the 2020/21 FY. 17 iii. The ministry of Basic Education, ICT and Youth Development give the third pillar of education and youth empowerment has been allocated Kshs. 0.89B presenting 7% of the total budget. iv. The county treasury drives the pillar number four has been allocated Kshs. 0.5B presenting 4% of the total budget. The ministry has also a responsibility of ensuring sound financial systems and revenue collection among the ministries. v. The ministry of Trade, Cooperatives and Investment drives the fifth pillar of wealth creation has been allocated Ksh 0.73B presenting 6% of the total budget. 64. In order to achieve the five pillar, the county government has ensured key enablers are hosted in other key ministries. i. The County ministry of Lands, Infrastructure, Housing & Urban Development has been allocated Kshs. 0.97B presenting 8% of the total budget. The ministry ensure smooth and passable road network to ease movement of person and goods. ii. To achieve any production, energy and good climatic condition is very key. Ministry of Environment & Natural Resources has been allocated Kshs. 0.240B presenting 2% of the total budget. Positive climatic changes boost the food security and conservation available vegetation cover and distribution of electricity. iii. Other priority sectors include Tourism, Sports and Culture which promotes the interest of special groups. In the 2020/21 FY, the ministry has been allocated Kshs. 0.189B presenting 2% of the total budget. iv. The county assembly which ensures legislation and oversight of the county government operation has been allocated Kshs.0.85B presenting 7% of the overall budget. Finally the Office of the Governor which drives the Pro-poor programmes and the CLIDP project has been allocated Kshs. Kshs.1.71B presenting 14% of the overall budget. Budget Framework 2020/2021 65. The 2020/21 FY budget framework is based on the MTEF and fiscal policies as outlined in this 2019/20 FY outlook paper. Instability of the key macroeconomic variable such as interest rates, inflation and exchange rates having been affected by the economic inactivity of Covid 19 Pandemic will affect the Countries GDP hence decreased recovery of the economy. However, the variables are expected to remain stable throughout the financial year as Covid 19 case load curve is envisaged to flatten in the second quarter. 66. At the county level, the county is expecting productive rain season in the upcoming short and long rains which will ensure sufficient food production across the county. The county government will distribute certified seeds to the farmers. 67. The counties own revenue is projected to be Kshs. 885.2M over the medium term plan from a target of Kshs. 600M in 2018/19 FY. 18 Table 6: Revenue Projections 2015/16 – 2020/21 & Estimates for 2021/22 to 2022/23 FY Source Revenue Revenue Revenue Revenue Revenue Revenue Projected Estimates 2015/16 2016/17 2017/18 2018/19 2019/20 (Kshs) Estimates 2021/22 2022/23 (Kshs) (Kshs) (Kshs) (Kshs) 2020/21 Equitable share 7,267,273,063 7,841,480,359 8,652,300,000 8,729,200,000 8,830,350,000 8,862,000,000 9,748,200,000 10,723,020,00 0 Grants - - - - Free Maternal Healthcare 63,610,400 70,080,000 - - - Compensation for User Fees Forgone 23,606,211 23,144,996 22,499,906 22,499,906 22,499,906 22,499,906 24,299,898 26,243,890 Road Maintenance Fuel Levy 92,318,534 120,484,292 309,636,150 287,290,294 250,655,344 343,981,921 371,500,475 401,220,513 Grants from UNDP 20,000,000 - - - Grants from World Bank (KDSP) - 53,665,066 - 70,841,398 76,508,710 82,629,407 World Bank (Universal Health) - 88,992,000 103,430,429 67,082,450 103,785,962 43,906,649 47,419,181 51,212,715 World Bank (Agriculture - Rural Growth) - 50,000,000 50,078,476 268,608,366 277,878,929 300,109,243 324,117,983 HSSP/HSPS - (DANIDA/IDA) 83,985,266 18,495,000 20,982,159 29,008,126 35,792,500 25,542,200 27,585,576 29,792,422 World Bank loan to Supplement financing - 131,525,244 58,210,000 - - of County Health Facilities Conditional Grant (Others) 58,554,018 - - Development of Youth Polytechnics - 67,576,636 44,141,075 72,588,298 167,820,430 181,246,064 195,745,750 Other GOK Grants (Doctors & Nurses - - - Allowance) Kenya Urban Support Project - World 232,374,200 175,003,043 333,514,064 360,195,189 389,010,804 Bank Kenya Urban Support Project - urban 41,200,000 30,000,000 - - institutional grant FAO Support Vaccination Program - - Agriculture Sector Development Support 8,946,484 19,410,807 27,151,151 29,323,243 31,669,103 Programme (ASDSP) GoK Conditional Grant - Covid Fund 488,788,000 - - Subtotal 283,520,411 452,721,532 744,554,364 782,621,011 1,467,132,226 1,313,136,648 1,418,187,580 1,531,642,586 7,550,793,474 8,294,201,891 9,396,854,364 9,511,821,011 10,297,482,226 10,175,136,64 11,166,387,58 12,254,662,58 8 0 6 Own Revenue - - - County Ministries/Entity - - - 19 Source Revenue Revenue Revenue Revenue Revenue Revenue Projected Estimates 2015/16 2016/17 2017/18 2018/19 2019/20 (Kshs) Estimates 2021/22 2022/23 (Kshs) (Kshs) (Kshs) (Kshs) 2020/21 Office of the Governor 19,431,215.00 16,392,240 17,002,350 9,876,970 12,048,730 30,600,000 32,130,000 33,736,500 Ministry of Agriculture water and 34,374,270.00 17,167,612 12,989,871 16,418,764 29,343,230 100,900,000 105,945,000 111,242,250 Livestock Development Ministry of Land Infrastructure and Urban 127,195,566.0 24,958,150 26,196,850 26,925,512 18,417,352 85,542,921 89,820,067 94,311,070 Development 0 Ministry of Health and Sanitation 120,001,508.0 47,449,948 106,553,352 176,097,641 181,897,534 225,000,000 236,250,000 248,062,500 0 Ministry of Basic Education, Skills ICT & 65,000,000 68,250,000 71,662,500 Youth Development Ministry of Trade, Cooperatives and 1,133,475.00 425,671 428,707 1,046,812 44,752,398 127,022,079 133,373,183 140,041,842 Investments Ministry of Environment, Energy and 1,987,800.00 6,785,460 5,060,700 850,900 2,183,100 25,500,000 26,775,000 28,113,750 Minerals Investment Development Ministry of Tourism, Sports and Culture - 1,095,150 132,500 138,000 2,500,000 2,625,000 2,756,250 The County Treasury 179,572,482.0 131,313,041 91,863,116 126,941,699 62,542,260 125,000,000 131,250,000 137,812,500 0 Kitui Municipality 30,834,654.00 45,252,270 48,923,181 57,387,816 36,591,889 64,150,000 67,357,500 70,725,375 Mwingi Town Administration 15,994,926.00 25,602,970 25,009,194 27,966,066 20,370,670 34,000,000 35,700,000 37,485,000 Subtotal 530,525,896 315,347,362 335,122,471 443,644,680 408,285,164 885,215,000 929,475,750 975,949,538 TOTAL 8,081,319,370 8,609,549,253 9,731,976,835 9,955,465,691 10,705,767,389 11,060,351,64 12,095,863,33 13,230,612,12 8 0 3 Revote from previous budget 1,955,355,894 1,843,914,081 1,318,085,375 880,167,531 526,210,232 1,096,315,711 % of Equitable Share 72.41 75.01 78.30 80.56 78.62 72.90 81 81 % of Own Resurces 5.29 3.02 3.03 4.09 3.64 7.28 8 7 % of Grants 2.82 4.33 6.74 7.22 13.06 10.80 12 12 % of Revote 19.48 17.64 11.93 8.12 4.68 9.02 - - Total Resource Envelope 10,036,675,26 10,453,463,33 11,050,062,21 10,835,633,22 11,231,977,621 12,156,667,35 12,095,863,33 13,230,612,12 4 4 0 2 9 0 3 20 V. CONCLUSION AND WAY FORWARD 68. In the table 7 below, the CBROP presents the MTEF for 2019/20 FY to 2022/23 FY factoring in the challenges faced by county government in receiving the equitable share for the 2020/21 FY. The MTEF for the financial years presents the actual values and projection of 2020/21 FY obtained by moderating the revenue projections and control of expenditure based on the laid policies. The financial policies therefore are consistent with fiscal responsibilities outlined in the PFM law. 69. County government should consider allocating funds to sector projects on need based prioritization hence much impact to the society. The projects and programmes which takes shortest time possible (One quarter) to implement at a very cost effective way. Therefore, the allocation is not based on any policy shift, but program rationalisation to ensure maximum benefit with least resource allocation. 70. In this regards, the financial policies outlined in this CBROP 2020 will ensure smooth resource allocation on the ward prioritized projects which will promote the five pillars of food and water, healthcare, women and youth empowerment; and wealth creation. 71. The policies will be highlighted in the next County Fiscal Strategy Paper for 2021/22 FY which will be released by February 2021. Table 7: MTEF Actuals 2019/2020-2020/2021 FY & Projection up to 2022/2023 FY N Sector/County 2019/20 Actuals 2020/21 Projections 8% o. Ministry Estimates 2021/22 2022/23 1 Office of the SUB-TOTAL 1,385,889,820 1,714,170,856 1,861,015,611 2,020,579,055 Governor Rec. Gross 627,633,518 485,554,317 534,109,749 587,520,724 Dev. Gross 758,256,302 1,228,616,539 1,326,905,862 1,433,058,331 2 Ministry of SUB-TOTAL 412,133,271 373,101,336 410,405,081 451,438,690 Administration Rec. Gross 404,750,315 372,781,925 410,060,117 451,066,129 and Coordination Affairs Dev. Gross 7,382,956 319,411 344,964 372,561 3 The County SUB-TOTAL 416,483,938 499,821,754 548,387,101 601,695,637 Treasury Rec. Gross 386,342,940 428,980,356 471,878,392 519,066,231 Dev. Gross 30,140,998 70,841,398 76,508,710 82,629,407 4 Ministry of Health SUB-TOTAL 3,723,378,160 3,421,018,806 3,750,374,972 4,111,647,098 & Sanitation Rec. Gross 3,240,240,196 2,783,733,077 3,062,106,385 3,368,317,023 Dev. Gross 483,137,965 637,285,729 688,268,587 743,330,074 5 Ministry of Basic SUB-TOTAL 694,101,607 893,404,795 975,128,930 1,064,416,171 Education, ICT & Rec. Gross 475,008,545 512,587,562 563,846,318 620,230,950 Youth Development Dev. Gross 219,093,062 380,817,233 411,282,612 444,185,221 6 Ministry of Trade, SUB-TOTAL 619,806,736 728,352,237 795,440,770 868,778,420 Co-operatives & Rec. Gross 303,984,165 441,017,678 485,119,446 533,631,390 Investment Dev. Gross 315,822,571 287,334,559 310,321,324 335,147,030 7 Ministry of Lands, SUB-TOTAL 863,903,851 975,631,410 1,058,717,341 1,148,953,689 Infrastructure, Rec. Gross 234,090,201 251,770,935 276,948,028 304,642,831 Housing & Urban Development Dev. Gross 629,813,650 723,860,475 781,769,313 844,310,858 21 N Sector/County 2019/20 Actuals 2020/21 Projections 8% o. Ministry Estimates 2021/22 2022/23 8 Ministry of SUB-TOTAL 214,838,941 189,505,842 207,096,457 226,337,335 Tourism, Sports & Rec. Gross 115,685,836 121,507,380 133,658,118 147,023,929 Culture Dev. Gross 99,153,104 67,998,462 73,438,339 79,313,406 9 Ministry of SUB-TOTAL 1,672,255,828 1,661,019,165 1,803,834,226 1,959,067,844 Agriculture, Rec. Gross 458,920,046 496,676,379 546,344,017 600,978,419 Water & Livestock Dev. Gross 1,213,335,782 1,164,342,786 1,257,490,209 1,358,089,426 Development 10 Ministry of SUB-TOTAL 231,292,836 240,739,242 262,067,670 285,309,300 Environment & Rec. Gross 98,915,261 103,464,403 113,810,844 125,191,928 Natural Resources Dev. Gross 132,377,575 137,274,839 148,256,826 160,117,372 11 County Public SUB-TOTAL 29,699,077 35,617,550 39,179,306 43,097,236 Service Board Rec. Gross 29,699,077 35,617,550 39,179,306 43,097,236 Dev. Gross 0 0 0 12 County Assembly SUB-TOTAL 949,239,760 855,475,182 940,633,706 1,034,276,963 Rec. Gross 909,239,760 836,025,472 919,628,019 1,011,590,821 Dev. Gross 40,000,000 19,449,710 21,005,687 22,686,142 13 Kitui Municipality SUB-TOTAL 499,183,960 474,599,051 514,651,797 558,117,245 Rec. Gross 58,417,553 104,241,100 114,665,210 126,131,731 Dev. Gross 440,766,407 370,357,951 399,986,587 431,985,514 14 Mwingi Town SUB-TOTAL 83,041,178 94,210,133 103,182,641 113,016,520 Administration Rec. Gross 61,830,376 71,784,890 78,963,379 86,859,717 Dev. Gross 21,210,802 22,425,243 24,219,262 26,156,803 TOTALS TOTAL 11,795,248,963 12,156,667,359 13,270,115,608 14,486,731,203 Rec. Gross 7,404,757,790 7,045,743,024 7,750,317,326 8,525,349,059 Dev. Gross 4,390,491,173 5,110,924,335 5,519,798,282 5,961,382,144 22 ANNEX I. EXPENDITURE ANALYSIS BY PROJECT/PROGRAMME 3711: Office of the Governor ((Development) Budget Measure to Safeguard Expenditure Absorption Rate Explanation for the level of No. Programme (2019-2020) against such risk in the (Kshs) (%) Absorption Kshs future In spite of late approval of the county government of Kitui budget, The budget estimates will Governor’s the absorption rate was continue to be informed by Administration commendable with an outstanding c r e d i b l e m arket surveys to 1. Block commitments of KES 104,400 and a 24,871,453 20,671,901 0.8 reduce low absorption rate (Completion balance of KES 4,199,552. The caused by over budget works) balance was as a result of saving estimates. made from difference between budgeted sum and contract sum This project was meant to be implemented upon completion works in the Governor’s administration block. The late approval of county government budget in FY2019/2020 resulted to Governor’s Cordial relationship late completion of works at Administration between the county Governors administration block. Block a s s e m b l y a n d the county 2. Consequently, the procurement for (Installation of 12,208,465 - - executive is needed to the installation of LAN and LAN and ensure timely approval of telephony systems was delayed Telephony) the county budget which was done June 2020 with an outstanding commitment of KES 12,097,205. It is anticipated the department will get a revote of committed budget to pay for the services offered. 23 Budget Measure to Safeguard Expenditure Absorption Rate Explanation for the level of No. Programme (2019-2020) against such risk in the (Kshs) (%) Absorption Kshs future The late approval of the county government government is caused to Community the late procurement of CLIDP Cordial relationship Level projects hence a moderate between the county Infrastructure a b s o r p t i o n r a t e o b s e r v e d . T h e r e w a s a s s e m b l y a nd the county 3. Development 676,490,427 311,386,306 0.5 an outstanding commitment of KES executive is needed to Programme 311,386,306. It is anticipated the ensure timely approval of (CLIDP) department will get a revote of the county budget committed budget to pay for the services offered. Pro-Poor In spite of late approval of the Support The department will county government of Kitui budget, Programme continue to embrace the t h e a b s o r p t i o n r a t e w a s e x c e l l e n t . 4. (Fee support measures of early planning 101,592,166 99,290,250 1.0 This was attributed to early planning and and timely selection of pro- and timely selection of pro-poor fee infrastructural poor beneficiaries support beneficiaries. support) 3712: Public Service Management and Administration Budget Measures to safeguard Explanation for the level of S/N Project/Programme 19/20 Expenditure Absorption (%) against such risk in the absorption (Kshs) (Kshs) future Non-Residential Political animosity needs to Buildings (offices, be resolved to enhance T h e a m o u n t c a t e r e d f o r b i l l s t h a t 1 schools, hospitals, smooth flow of 7,382,956 7,063,545 96 were pending. etc..) – Construction implementation of of Offices development projects 24 3713: Ministry of Agriculture, Water & Livestock Development (Development) S/N Project/Programme Budget (2019- Expenditure Absorption Explanation for Measures to 2020) (Kshs) Rate (Kshs) the level of safeguard against Absorption such Risks to the future 0102003710 P2: Crops Development and management 0102013710 SP 2.1 Farm Input Support (Crops development support) 1 Ngengu Revolution (Procure 1 0 0 % T i m e l y N / A and distribute Hermetic Bags 20,000,000 19,999,932 procurement plan for storage of green grams) and follow up 0103003710 P3: Agribusiness and Information Management (Farm development & Agribusiness) 2 Operationalization of farm 1 0 0 % T r a c t o r s d i s t r i b u t e d N / A tractor ploughing services 20,000,000 20,000,000 to wards for ease of access by farmers 3 NATIONAL AGRICULTURAL & RURAL INCLUSIVE GROWTH PROJECT (NARIGP)  Promote community- 1 1 2 . 9 0 %  V i g o r o u s driven development 123,194,750 139,119,564 campaigns and initiatives (micro-projects)- mobilization of Disbursement of grants for beneficiaries  community- driven  The extra investments funds were re-voted from 2018/2019 FY   Promote market 4 0 % M o s t P O h a s l o w U p g r a d i n g the PO to linkages-Strengthen producer 94,912,600 37,943,404 capacity to absorb improve their capacity organizations (PO) and value the investment to utilise the allocate chain development funds funds  Support multi- 3 3 . 7 0 % D e l a y s i n a p p r o v i n g P e r s u a d i ng world community investments 89,778,250 30,209,939 procurement bank to hasten requests by world approval of presented bank requests 25 S/N Project/Programme Budget (2019- Expenditure Absorption Explanation for Measures to 2020) (Kshs) Rate (Kshs) the level of safeguard against Absorption such Risks to the future NB: the released & unspent funds of Kshs 97,598,858, as at 30.06.2020, was transferred to operations account in readiness for re- voting it into 2020/2021 FY 0103023710 SP 3.2 Agricultural Information Management (Extension services) 4 Improve institutional capacity of the ATC  Fruit and Tomato 1 0 0 % C o r r e c t n e s s o f B Q processing plant 25,000,000 24,995,739 that guided on the correct estimate  ATC seedling nursery 1 0 0 % T i m e l y for fruit trees 1,437,242 1,437,240 procurement plan and follow up  Construction of zero 1 0 0 % C o r r e c t n e s s o f B Q grazing unit 1,000,000 1,000,000 that guided on the correct estimate  Equipping ATC B/hole 8 2 % M a r k e t s u r v e y t h a t water pump  500,000 409,200 helped to establish prevailing prices. 5 Agriculture sector development support programme (ASDSP) Promote development of 2 0 % D e l a y i n a p p r o v i n g prioritized value chains 20,928,645 4,220,428 the concepts by (Local poultry, Sorghum, & CASSCOM G. Grams) Sub-total Agriculture 0106003710 P 6: Livestock Resources Management and Development 0106013710 SP 6.1 Livestock Production and Management 6 Office toilet construction 9 9 % C o r r e c t n e s s o f B Q 500,000 496,965 that guided on the correct estimate 26 S/N Project/Programme Budget (2019- Expenditure Absorption Explanation for Measures to 2020) (Kshs) Rate (Kshs) the level of safeguard against Absorption such Risks to the future 7 Dairy improvement through 1 0 0 % V i g o r o u s N / A artificial insemination 8,835,000 8,835,000 campaigns made & farmers present cows for insemination 8 Commercialization of local chicken enterprise  Renovation of chicken 9 9 % C o r r e c t n e s s o f B Q slaughter slab 6,000,000 5,953,305 that guided on the correct estimate  Equipping of chicken 1 0 0 % M a r k e t s u r v e y t h a t slaughter slab ( tools) 2,500,000 2,500,000 helped to establish prevailing prices. 0106023710 SP 6.2 Livestock Diseases Management and Control 9 Pests and vector control: 1 0 0 % U s e d p r e q u a l i f i e d N / A Procure 6,259,700 6,259,700 supplier (KEVEVAPI) for  vaccines and sera  vaccines  Acaricides for cattle dips Sub-total livestock 24,094,700 24,044,970 Total-Department 27 Water Department Budget Expenditure Absorption Explanation for the level of Measures to safeguard S/N Project/Programme 19/20 (Kes) (Kes) (%) absorption against such risk in the future Drilling & equipping Drilling delayed by servicing of rigs 1 of 24No. new 36,420,000 18,827,825 52 Timely servicing of drilling rigs & support trucks boreholes Construction of Pipelines increased from the initial 2 15No. Pipeline 83,490,000 105,339,436 126 Increase funding to this activity planned, some were rehabilitated extensions Construction/desilting of 13No. earth Estimated costing for the earth dams Timely surveys & designs to 3 82,750,000 133,435,547 161 dams/pans & rock differed from the engineer’s estimates capture the actual costs catchments 2No. Spring Projected springs in Miambani Ward Timely feasibility studies to 4 protection and 8,000,000 0 0 dried up assess sources pipeline supplies Borehole Programme shifted to department of To allocate some funds for this 5 hybridization 40,950,000 0 0 environment programme programme Repairs & maintenance of Schemes break un-evenly and all the 6 44,000,000 40,000,050 91 Increase allocation for this unit 103No. water supply time, some repaired more than once schemes Subsidies for WSPs (KITWASCO, Increase allocation for this unit Electricity/chemical bills for the 7 KIMWASCO & R. 81,288,051 137,651,525 169 and the companies to pay some companies too high Athi-Mutomo Water % of the bills Supply) Supply and Bulk storage tanks incorporated in Reduce allocation for this unit installation of Bulk & 8 45,281,574 2,648,000 6 major pipeline extension projects. and divert it to pipeline Plastic storage water Only plastic tanks supplied extensions tanks 28 Budget Expenditure Absorption Explanation for the level of Measures to safeguard S/N Project/Programme 19/20 (Kes) (Kes) (%) absorption against such risk in the future Construction of Estimated costing for the sump wells Timely surveys & designs to 9 11No. Sump well 119,000,000 103,215,576 87 differed from the engineer’s estimates capture the actual costs water supplies 10 Feasibility studies 9,422,700 9,422,693 100 All surveys & designs done - 3714: Ministry of Basic Education, ICT & Youth Development (Development) Measures to Explanation Budget safeguard Expenditure Absorption for the level S/NO Project /Programme 2019/20 againstsuch (Kes) (%) of (Kes) risks in the Absorption future Delay in Timely Completion of buldings at Mulango Vocational 1 10,000,000.00 9,700,000.00 97% funds preparation of Training Centre disbursement BQs Proper Increase of 2 Purchase of Educational Aids for ECDE centres 15,000,000.00 14,969,533.00 100% planning of funds for more activities activities Delay in Timely Youth upgrading training for garment making 3 33,000,000.00 27,543,750.00 83% funds preparation of and concrete making disbursement required paper 29 3715: Ministry of Lands, Infrastructure Housing &Urban Development (Development) Measure to Safeguard Budget (2019- Expenditure Absorption Explanation for the S/No. Project/Programme against such risk in the 2020) KES (KES) Rate (%) level of Absorption future Construction of sub 1. county offices at 5,000,000.00 Nil 0% Not yet started Early planning Kitui Rural Construction of sub 2. county offices at 5,000,000.00 Nil 0% Not yet started Early planning Kitui West Electrical power Timely release of funds Timely procurement of 3. connection at Kitui 2,500,000.00 2,500,000.00 100% and execution of the the project South offices project Refurbishment of Timely release of funds Timely release of funds 4. Mwingi central sub 2,443,591.04 2,443,591.04 100% and execution of the and execution of the county office project project Completion of sub Timely release of funds Timely procurement of 5. county offices at 2,442,700 2,442,700 100% and execution of the the project mwingi west project Partitioning of Timely release of funds Timely procurement of 6. public works office 208,220.00 208,220.00 100% and execution of the the project at the headquarters project Refurbishment of 7. Lihud offices across 10,000,000.00 Nil 0% Not yet started Early planning the county Project was completed Preparation of Processing of Payments but the funds were not 8. County Valuation 10,000,000.00 2,160,000.00 21.60% early before the end of available to pay the Roll the financial year. consultant. 9. Road Maintenance 250,347,351.55 171,413,830.55 68.50% Contractors delay in Enhance contractor’s 30 Measure to Safeguard Budget (2019- Expenditure Absorption Explanation for the S/No. Project/Programme against such risk in the 2020) KES (KES) Rate (%) level of Absorption future using Road completing works/Late sensitization on their Maintenance Levy procurement of contractual obligations Fund additional Savings and and consequences for re-tendered projects not performing them. Enhance contractor’s sensitization on their Contractors delay in 10. Bush Clearing 34,000,000 24,431,237.18 71.80% contractual obligations completing works. and consequences for not performing them. 3716: Ministry of Health and Sanitation (Development) Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Completion of Need to sufficiently Though absorption installation of IHIMS budget for the 1 10,000,000 10,000,000 100 was 100%, this is a in all 14 hospitals remaining work for the muilti- year project (ongoing project) project to be completed The contractor submitted invoice for Fast-track the balance towards Construction of X-ray implementation of the the end of the 2 room at Ikanga 8,749,210 4,874,605 56 activities so that financial year, hence hospital payments could be could not processed early enough successfully be processed 31 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future The contractor submitted invoice for Fast-track the balance towards Construction of X-ray implementation of the the end of the 3 room at Kauwi 8,749,210 2,637,670 30 activities so that financial year, hence hospital payments could be could not processed early enough successfully be processed Construction of X-ray 4 room at Kyuso 8,904,525 8,904,525 100 hospital The contractor submitted invoice for Fast-track the balance towards Construction of X-ray implementation of the the end of the 5 room at Mutitu 8,886,105 4,478,959 50 activities so that financial year, hence hospital payments could be could not processed early enough successfully be processed Construction of X-ray 6 8,895,147 8,895,147 100 room at Nuu hospital The contractor submitted invoice for Fast-track the balance towards Construction of X-ray implementation of the the end of the 7 room at Zombe 9,093,540 6,924,540 76 activities so that financial year, hence hospital payments could be could not processed early enough successfully be processed 32 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Construction of Need to sufficiently Though absorption perimeter wall and budget for the 8 1,500,000 1,500,000 100 was 100%, this is a chain-link at Mwingi remaining work for the muilti- year project level IV hospital project to be completed The contractor submitted invoice for Fast-track Construction of the balance towards implementation of the medical ward at the end of the 9 8,749,210 4,003,120 46 activities so that Mwingi level IV financial year, hence payments could be hospital could not processed early enough successfully be processed Need to sufficiently Construction of Though absorption budget for the 10 tuition block KMTC 851,383 851,383 100 was 100%, this is a remaining work for the mwingi campus muilti- year project project to be completed Procurement of Funds received at the medical equipment end of the FY, for dispensaries and through a Early release of funds 11 faith based 21,064,200 - - supplementary by the funding agencies organizations budget for COVID 19 (churches) FOR activities COVID -19 Funds received at the Installation a 250a end of the FY, control panel at through a Early release of funds 12 1,500,000 - Zombe level IV - supplementary by the funding agencies hospital budget for COVID 19 activities 33 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Funds received at the Installation a 800a end of the FY, control switch gear at through a Early release of funds 13 2,900,000 - Mwingi level IV - supplementary by the funding agencies hospital budget for COVID 19 activities Funds received at the end of the FY, procurement of office through a Early release of funds 14 furniture equipment 2,190,560 - - supplementary by the funding agencies for CECM block budget for COVID 19 activities Funds received at the procurement of end of the FY, equipping and through a Early release of funds 15 3,654,570 - operationalization of - supplementary by the funding agencies Tseikuru theatre budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 16 laundry machine for 1,820,000 - - supplementary by the funding agencies Kauwi budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 17 medical Equipment for 2,169,070 - - supplementary by the funding agencies Ikutha hospital budget for COVID 19 activities 34 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Funds received at the end of the FY, Installation of 250a through a Early release of funds 18 panel at Zombe 1,499,989 - - supplementary by the funding agencies hospital budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 19 hematology machine 592,200 - - supplementary by the funding agencies for Zombe Hospital budget for COVID 19 activities Funds received at the Supply of fabricated end of the FY, mixing tanks with through a Early release of funds 20 automatic mortar at 2,460,000 - - supplementary by the funding agencies Kitui County Referral budget for COVID 19 Hospital activities Funds received at the Procurement of end of the FY, ventilators for Kitui through a Early release of funds 21 County Referral 20,500,000 - - supplementary by the funding agencies Hospital and mwingi budget for COVID 19 level IV hospital activities Funds received at the Procurement delivery end of the FY, installation and through a Early release of funds 22 commissioning of 1,155,000 - - supplementary by the funding agencies dryer machine for budget for COVID 19 Kauwi hospital activities 35 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Installation of CCTV at Kitui County 23 3,000,000 3,000,000 100 Referral hospital new OPD Funds received at the end of the FY, Procurement of through a Early release of funds 24 theatre equipment for 2,951,000 - - supplementary by the funding agencies Kauwi hospital budget for COVID 19 activities Procurement of lab equip for Kitui 25 3,997,900 3,997,900 100 County Referral hospital Funds received at the Procurement of ICU end of the FY, equipment Kitui through a Early release of funds 26 8,730,740 - County Referral - supplementary by the funding agencies Hospital budget for COVID 19 activities Funds received at the Construction of end of the FY, 10,000ltrs hand through a Early release of funds 27 1,000,000 - washing facilities - supplementary by the funding agencies tank bases budget for COVID 19 activities Construction of Funds received at the container roof, slab, end of the FY, Early release of funds 28 waiting bay, fence, 2,993,330 - through a - by the funding agencies gate, elevated tank, pit supplementary latrine at Kabati budget for COVID 19 36 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future dispensary activities Funds received at the Procurement of end of the FY, equipment for through a Early release of funds 29 1,206,460 - production unit (Kitui - supplementary by the funding agencies Pharma Industries) budget for COVID 19 activities Funds received at the Procurement of end of the FY, theatre,maternity and through a Early release of funds 30 NBU equipment's for 743,950 - - supplementary by the funding agencies Mutitu sub county budget for COVID 19 Hospital activities Funds received at the end of the FY, Procurement of through a Early release of funds 31 Hematology Machine 565,000 - - supplementary by the funding agencies for Migwani Hospital budget for COVID 19 activities Funds received at the Procurement of end of the FY, 185MM2 SWA Cable through a Early release of funds 32 for power Distribution 3,891,200 - - supplementary by the funding agencies at Kitui County budget for COVID 19 Referral hospital activities Procurement of Funds received at the Early release of funds 33 fumigation automated 500,000 - end of the FY, - by the funding agencies sprayer for Kicotec through a 37 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future supplementary budget for COVID 19 activities Construction of Funds received at the container roof ,slab end of the FY, waiting through a Early release of funds 34 2,992,460 - bay,fence,fate,elevated - supplementary by the funding agencies tanks pit latrine/septic budget for COVID 19 at Kabati Dispensary activities Procurement of 35 equipment for Kauwi 874,500 874,500 100 Sub county Hospital Funds received at the end of the FY, Procurement of through a Early release of funds 36 Equipment for Kitui 787,560 - - supplementary by the funding agencies pharma Industries budget for COVID 19 activities Funds received at the Plumbing works at end of the FY, the renal Unit in through a Early release of funds 37 1,098,540 - mwingi Level Iv - supplementary by the funding agencies Hosp. budget for COVID 19 activities Funds received at the Construction of end of the FY, 10,000 Lts Hand through a Early release of funds 38 999,000 - washing facilities - supplementary by the funding agencies tanks budget for COVID 19 activities 38 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Funds received at the end of the FY, Equipping and through a Early release of funds 39 operationalizing of 1,795,198 - - supplementary by the funding agencies Tseikuru Theatre budget for COVID 19 activities Funds received at the end of the FY, Procurement of OPD through a Early release of funds 40 4,308,360 - Equipment for KCRH - supplementary by the funding agencies budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 41 Laundry Machine for 1,816,800 - - supplementary by the funding agencies Kauwi SCH budget for COVID 19 activities Funds received at the Procurement delivery end of the FY, installation and through a Early release of funds 42 commissioning of 1,150,000 - - supplementary by the funding agencies dryer machine for budget for COVID 19 Kauwi SCH activities Funds received at the Procurement of end of the FY, equipment for Ikutha through a Early release of funds 43 975,580 - hospital orthopedic - supplementary by the funding agencies unit. budget for COVID 19 activities 39 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Funds received at the Procurement of end of the FY, equipment for through a Early release of funds 44 3,628,880 - Tseikuru hospital - supplementary by the funding agencies Theatre budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 45 equipment for Kauwi 2,928,775 - - supplementary by the funding agencies Hospital budget for COVID 19 activities Funds received at the end of the FY, Procurement of through a Early release of funds 46 equipment for Ikutha 2,097,500 - - supplementary by the funding agencies Hospital budget for COVID 19 activities Funds received at the Procurement of ICU end of the FY, equipment for Kitui through a Early release of funds 47 10,080,700 - County Referral - supplementary by the funding agencies Hospital budget for COVID 19 activities Funds received at the Procurement of end of the FY, Office Furniture and through a Early release of funds 48 2,188,727 - Equipment’s for - supplementary by the funding agencies CECM Block budget for COVID 19 activities 40 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Funds received at the Procurement of end of the FY, Metallic bedside through a Early release of funds 49 Lockers for Kitui 2,698,500 - - supplementary by the funding agencies County Referral budget for COVID 19 Hospital activities Standard Metallic Funds received at the Hospital beds/ end of the FY, Tents(100 Seater)/ through a Early release of funds 50 Infrared Gun 15,214,500 - - supplementary by the funding agencies thermometers for Kitui budget for COVID 19 County Referral activities hospital Funds received at the Procurement of end of the FY, invasive and non- through a Early release of funds 51 invasive Ventilators 20,280,975 - - supplementary by the funding agencies for Kitui County budget for COVID 19 Referral Hospital activities Funds received at the end of the FY, Extension/Improveme through a Early release of funds 52 nt works for Records 662,750 - - supplementary by the funding agencies Office at Kyuso Sub budget for COVID 19 County activities Funds received at the construction of end of the FY, medical store of Kitui through a Early release of funds 53 8,739,210 - County referral - supplementary by the funding agencies Hospital budget for COVID 19 activities 41 Measures to S/NO Amount Budgeted in Amount Spent Explanation for the Name of project Absorption (%) Safeguard against . 2019/2020 FY(kes) (kes) level of absorption such risk in the future Procurement of two 9 54 seater capacity motor 15,140,000 15,140,000 100 vehicles Funds received at the end of the FY, construction of through a Early release of funds 55 Oxygen plant at 1,877,668 - - supplementary by the funding agencies KCRH budget for COVID 19 activities Funds received at the end of the FY, construction of through a Early release of funds 56 Mwingi Hospital 2,990,440 - - supplementary by the funding agencies Renal Dialysis Room budget for COVID 19 activities Renovation of 57 Isolation Ward at 2,495,479 2,495,479 100 KCRH Funds received at the Supply installation and end of the FY, Commissioning of through a Early release of funds 58 2,998,550 - dialysis water plant of - supplementary by the funding agencies Mwingi hospital budget for COVID 19 activities 42 3717: Ministry of Trade, Investment & Cooperatives (Development) Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Proposed construction of 1. 2,316,763.60 2,016,763.60 87 The Project has been completed N/a transformer house at Kwa Kilui ballast Supply and Installation of Electric Equipment Covid 19 pandemic affected Timely initiation of 2. 3,952,700.00 0 0 1200A Control project implementation procurement process Switch Gear for the ballast Crusher Supply and Installation of a 1400A automatic 3. 3,463,574.40 3,463,574.40 The Project has been completed N/a change over switch for the Ballast 100 Crusher at Kwa proposed supply and installation fabrication works for workshop benches 4. 3,909,997.00 3,909,997.00 The Project has been completed N/a shelves and machines for the operationalization of 100 stone crusher plant proposed supply of 5. personal protective 100 equipment for the 1,993,995.00 1,993,995.00 The Project has been completed N/a personnel at the stone crushing plant at 43 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future supply of multifunctional fluke 6. 1664fc UK-FC for 984,840.00 984,840.00 The Project has been completed N/a the stone crusher 100 plant Proposed supply and delivery of workshop The Project have been 7. tools and equipment 899,995.00 899,995.00 N/a completed for the stone crushing 100 plant at Kwa Kilui 8. Proposed ac security 3,801,900.00 3,801,900.00 100 The Project has been completed N/a lighting at Kwa Kilui proposed supply of workshop tools and 9. equipment for the 1,996,995.00 The Project has been completed N/a stone crushing plant 1,996,995.00 100 at Kwa Kilui proposed supply of workshop tools and 1,991,995.00 100 10. equipment for the 1,991,995.00 The Project has been completed N/a stone crushing plant at Kwa Kilui Procurement of Auxiliary works at 11. 2,006,434.60 The Project has been completed N/a Kwa Kilui Ballast 2,006,434.60 100 Crusher Site Proposed The project has started, at initial Timely initiation of 12. 997,116.00 construction of Open 449,998.45 stage. Procurement process was procurement process and fast 44 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future air market shed at delayed due to Covid 19 tracking of implementation 45 Kairungu market pandemic Proposed construction of open Timely initiation of Covid 19 pandemic affected 13. market sheds at 997,700.00 procurement process and fast project implementation Mbondoni market - 0 0 tracking of Implementation Mwingi west Proposed market 14. shed at Katalwa 996,103.00 996,103.00 The Project has been completed N/a market-Mwingi west 100 Proposed construction of 20 no 15. 3,993,104.80 3,993,104.80 The Project has been completed N/a capacity open air 100 market at Kasyala proposed construction of 20 no 16. 3,951,783.60 3,951,783.60 The Project has been completed N/a capacity open air 100 market at Museve Proposed Construction of 17. Open Air Market 1,719,300.00 1,719,300.00 The Project has been completed N/a sheds at Kwa Kilui 100 Market Kitui Rural sub County Proposed construction of a 18. typical 20n0. 997,262.45 The Project has been completed N/a capacity modern 997,262.45 100 market at Kiviu 45 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future market Proposed renovation Covid 19 pandemic affected Timely initiation of 19. 550,480.00 of Kavisuni market 0 0 project implementation procurement process Proposed Renovation Covid 19 pandemic affected Timely initiation of 20. 2,784,560.00 0 0 of Tulia Market project implementation procurement process Proposed rehabilitation of Open air Market at Covid 19 pandemic affected Timely initiation of 21. 889,000.00 Kaningo market project implementation procurement process Mwingi North sub 0 0 county proposed extra works Covid 19 pandemic affected Timely initiation of 22. at Zombe market- 3,955,000.05 project implementation procurement process Kitui east sub county 0 0 proposed plumbing 23. works at Kabati 3,942,840.00 The Project has been completed N/a market 3,942,840.00 100 proposed construction of open Covid 19 pandemic affected Timely initiation of 24. air chicken shed at 532,200.00 project implementation procurement process Kitui town - Kitui 0 0 central sub-county Proposed steel fencing and gate at 25. 2,166,700.00 2,166,700.00 The Project has been completed N/a livestock yard at 100 Kisasi Proposed chainlink 26. fencing and gate at 1,567,067.20 1,567,067.20 The Project has been completed N/a Kyamatu open air 100 46 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future market Proposed chain-link Covid 19 pandemic affected Timely initiation of 27. and gate at Nzangathi 1,449,700.00 0 0 project implementation procurement process open air market Proposed construction of 28. 100 retailing and fence at 1,705,142.00 1,705,142.00 The Project has been completed N/a Nguni livestock market proposed construction of 29. chainlink fence and 1,942,735.00 1,942,735.00 The Project has been completed N/a gate at Waita open air market Mwingi 100 central proposed construction of steel Timely initiation of Covid 19 pandemic affected 30. fencing and gate for 3,175,350.00 procurement process and project implementation livestock yard at 0 0 fasttracking of implementation Kwa Vonza Proposed steel fencing and gate at The Project have been 31. 1,632,710.00 Kwa Vonza open air 1,632,710.00 100 completed market Proposed 32. construction of 0 0 Covid 19 pandemic affected Timely initiation of fencing at Kwa Kilui 1,648,150.00 project implementation procurement process market -Kitui rural sub-county 33. proposed 1,705,142.00 1,705,142.00 The Project has been completed N/a 47 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future construction of retaining wall and repair to fence at Nguni livestock 100 market proposed construction of chainlink fence and 34. 1,942,735.00 1,942,735.00 The Project has been completed N/a gate at Waita open air market Mwingi 100 central proposed chainlink fencing, sentry rain 35. water goods at 2,437,653.00 2,437,653.00 The Project has been completed N/a Miambani open air 100 market Proposed cattle loading ramp and 36. 877,200.00 877,200.00 The Project has been completed N/a hoarding yard at 100 Kalundu market The projects have started, at Solar energy street initial stage. lighting for Kyalilini, Procurement process was Timely initiation of 37. Arusha, Kavonge and 3,285,700.00 1,265,792.00 delayed due to Covid 19 procurement process Kabati markets 2 No. pandemic posts and lamps each 39 Supply and 38. installation of 2,577,984.00 The Project has been completed N/a lighting fixtures 2,577,984.00 100 39. Installation of solar 632,165.20 Covid 19 pandemic affected Timely initiation of 48 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future energy street lights project implementation procurement process (Mulika Mwinzi)for Ituki Market Kisasi Kitui Rural 2 No. and 0 0 Lamps installation of the 40. proposed solar 0 0 Covid 19 pandemic affected Timely initiation of energy street light 1,027,650.00 project implementation procurement process (Mulika Mwinzi) for Kwa Kiara Installation of the proposed solar 41. energy street light 1,032,034.60 1,032,034.60 The Project has been completed N/a (mulika mwinzi) for 100 Kakumuti market installation of the proposed solar 42. energy street light 1,035,371.00 1,035,371.00 The Project has been completed N/a (mulika mwinzi) for 100 Kanyangi market Installation of the proposed Mulika mwinzi for 43. 1,032,034.60 1,032,034.60 The Project has been completed N/a Kanyongonyo market-Kitui rural 100 sub-county Installation of solar Timely initiation of energy street lights Covid 19 pandemic affected 44. 1,768,130.00 procurement process and fast for Kasyala market - 0 0 project implementation tracking of implementation Kyangwithya east 49 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Installation of the proposed solar 45. energy street light 1,035,371.00 The Project has been completed N/a (mulika mwinzi) for 1,035,371.00 100 Kwa Kalulini Proposed installation 1,034,836.00 of solar energy street Covid 19 pandemic affected Timely initiation of 46. light for Mang'ola project implementation procurement process market 3 no post and 0 0 lamp Proposed installation of the proposed solar 790,935.00 790,935.00 energy street lights 47. (Mulika mwinzi) for The Project has been completed N/a Kwa Kilui market Kitui rural 2 no. post and lamps 100 Proposed installation of solar energy streetlights (mulika mwizi) for 48. 1,032,034.60 1,032,034.60 The Project has been completed N/a Kanyonyoo market Yatta kwa Vonza 100 Ktui rural 3 no. post and lamps proposed installation 49. of solar energy street lights for Kasiluni Covid 19 pandemic affected Timely initiation of 633,137.15 markert Zombe project implementation procurement process Mwitika ward 2 no 0 0 posts and lamps 50 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Proposed installation of solar energy street Covid 19 pandemic affected Timely initiation of 50. lights for Mavutini 630,000.00 project implementation procurement process market 2 no post and 0 0 lamp. Proposed installation of solar energy street Covid 19 pandemic affected Timely initiation of 51. lights for Ngomoni 1,035,000.00 project implementation procurement process markert 3 no post and 0 0 lamp. Installation of solar Covid 19 pandemic affected Timely initiation of 52. Energy, street lights 329,800.00 project implementation procurement process Utalawala market 0 0 Proposed installation of solar energy street Covid 19 pandemic affected Timely initiation of 53. lights for Kavumbuni 631,678.00 project implementation procurement process markert 2 no post and 0 0 lamps Proposed installation of solar energy street Covid 19 pandemic affected Timely initiation of 54. 630,460.00 lights for Masimba 0 0 project implementation procurement process Market Installation of solar Covid 19 pandemic affected Timely initiation of 55. energy at Nguuni 600,000.00 0 0 project implementation procurement process market Proposed solar installation Kitooni Covid 19 pandemic affected Timely initiation of 56. 1,034,227.00 market 3 no post and project implementation procurement process lamps 0 0 51 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Supply of 3 Phase 4 Pole 315a CHT 57. Contactor of Code 394,000.00 394,000.00 The Project has been completed N/a NCE-256/4 to 100 KICOTEC Establishment of CCTV security 58. 3,825,000.00 3,825,000.00 The Project has been completed N/a surveillance system 100 at KICOTEC procurement of consultancy services 59. for KICOTEC 1,897,180.00 1,897,180.00 The Project has been completed N/a Environmental 100 Impact Assessment Proposed fabrication and installation of 60. 3,986,630.00 3,986,630.00 100 The Project has been completed N/a steel works at KIVOTEC Electrical renovation 61. 2,832,372.00 2,832,372.00 The Project has been completed N/a works at KICOTEC 100 one full page for placing KICOTEC 62. 278,400.00 278,400.00 The Project has been completed N/a advert in an 100 institution directory Proposed demolitions 63. and plumbing works 2,142,306.00 2,142,306.00 The Project has been completed N/a at KICOTEC Kitui 100 Proposed flooring 64. 3,904,603.00 3,904,603.00 100 The Project has been completed N/a carpet at KICOTEC 2,317,691.60 Covid 19 pandemic affected Timely initiation of 52 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future 65. Proposed erection to 0 0 project implementation procurement process completion of a transformer house at Mwingi KICOTEC Proposed conversion of existing 66. 3,829,040.00 100 dorm/class to 3,829,040.00 The Project has been completed N/a KICOTEC AT DICECEC in Mwingi Proposed construction of 67. Covid 19 pandemic affected Timely initiation of ablution block at 2,601,495.00 0 0 project implementation procurement process Mutomo KICOTEC branch Proposed cabro parking lot at 68. 3,731,396.95 100 KICOTEC Mutomo 3,731,396.95 The Project has been completed N/a branch -Kitui South South sub-county. Proposed fencing gate power house and Covid 19 pandemic affected Timely initiation of 69. sentry house at 2,653,200.00 0 0 project implementation procurement process Mutomo KICOTEC branch Proposed renovations of existing 70. 0 0 Covid 19 pandemic affected Timely initiation of agriculture cereals 3,938,200.00 project implementation procurement process block at Mutomo KICOTEC branch 71. Proposed finishes 3,660,360.00 Covid 19 pandemic affected Timely initiation of 53 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future external works and project implementation procurement process electrical works at Mutomo KICOTEC 0 0 branch proposed pigeon holes, working tables, 72. repair works and 3,790,895.00 The Project has been completed N/a rectangle door grill at 3,790,895.00 100 KICOTEC Purchase of computerized Covid 19 pandemic affected Timely initiation of 73. knitting machine 1,789,900.00 0 0 project implementation procurement process (socks, sweater scarfs) Procurement of specialized Machines as attached: Covid 19 pandemic affected Timely initiation of 74. 9,499,000.00 Computerized project implementation procurement process Sewing Machines 0 0 (Single Needle) Procurement of fusing machine, UV Covid 19 pandemic affected Timely initiation of 75. sterilizer and walk 2,397,500.00 project implementation procurement process through sterilizer as 0 0 per the attached purchase of computerized button Covid 19 pandemic affected Timely initiation of 76. attach, sole attaching 1,289,920.00 project implementation procurement process machine double unit 0 0 and walking foot 54 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future purchase of computerized sewing Covid 19 pandemic affected Timely initiation of 77. 2,339,820.00 machine as per the 0 0 project implementation procurement process attached procurement of 0 0 Covid 19 pandemic affected Timely initiation of 78. needles heavy duty as per the attached 831,000.00 project implementation procurement process procurement of Covid 19 pandemic affected Timely initiation of 79. needles heavy duty as 2,225,000.00 0 project implementation procurement process per the attached 0 purchase of toe lasting machine, back part lasting machine, Covid 19 pandemic affected Timely initiation of 80. 2,387,000.00 chiller and heal project implementation procurement process molding machine as 0 0 per Proposed installation of 1 no water tank Covid 19 pandemic affected Timely initiation of 81. and base at Kasyala 316,500.00 project implementation procurement process market element no 1 0 0 rainwater goods. proposed 2 no. water tank base, chainlink 0 Covid 19 pandemic affected Timely initiation of 82. fence repair and 824,915.00 project implementation procurement process electricity connection 0 for Mutonguni 83. Proposed installation 1,036,564.40 926,564.40 The Project has been completed N/a 55 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future of gutters and 2 no. 10,000 litres water tank bases at Katulani open air 89 market Proposed showroom for furniture and shoe Covid 19 pandemic affected Timely initiation of 84. 540,000.00 0 0 industry at project implementation procurement process Manyenyoni Pipeline extension and water installation Covid 19 pandemic affected Timely initiation of 85. 427,248.90 0 0 works at project implementation procurement process Manyenyoni. Requisition for waste Covid 19 pandemic affected Timely initiation of 86. management at Kitui 1,884,150.00 1,484,150.00 project implementation procurement process slaughter house 79 Procurement of 87. County Generic 1,474,988.00 1,474,988.00 The Project has been completed N/a Branded Items 100 proposed levelling of Kenya industrial 88. 1,451,740.00 1,451,740.00 The Project has been completed N/a estates yard at 100 Manyenyoni Proposed repair 89. works in Kitui town 2,810,860.50 2,810,860.50 The Project has been completed N/a and repairs at Kitui 100 proposed repair of roof ceiling and paint 90. 1,941,167.20 1,941,167.20 The Project has been completed N/a works at ministry of 100 trade 56 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Proposed four door (4) pit latrine with Covid 19 pandemic affected Timely initiation of 91. 763,820.00 urinal at Maliku 0 0 project implementation procurement process market Proposed 4 door pit 92. latrine at Miambani 746,692.40 The Project has been completed N/a Kitui central 746,692.40 100 Proposed four (4) Covid 19 pandemic affected Timely initiation of 93. door pit latrine with 682,820.00 project implementation procurement process urinal at Tiva market 0 0 Proposed 4 door pit 94. latrine with urinal at 687,170.00 The Project has been completed N/a Kiseuni market 687,170.00 100 Proposed 4 door pit Covid 19 pandemic affected Timely initiation of 95. latrine with urinal at 718,750.00 0 0 project implementation procurement process Mosa market proposed construction of two Covid 19 pandemic affected Timely initiation of 96. 404,464.00 0 0 (2)pit latrine at project implementation procurement process Kyamatu Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 97. door pit latrine at 445,434.20 0 0 project implementation procurement process Ngenuka Nenda market Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 98. door pit latrine with 363,240.00 0 0 project implementation procurement process urinal at Katse open air market public 57 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future toilet Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 99. door pit latrine with 366,003.20 0 0 project implementation procurement process urinal at Tseikuru open air market Proposed construction of 2 door pit latrine with Covid 19 pandemic affected Timely initiation of 100. 366,676.00 0 0 urinal at Konyu open project implementation procurement process air market -Mumoni ward Proposed 2 door pit Covid 19 pandemic affected Timely initiation of 101. latrine with urinal at 430,392.00 0 0 project implementation procurement process Ngengeka market Proposed construction of 2 no. 102. door pit latrine with a 596,187.00 596,187.00 The Project has been completed N/a urinal at Kwa Mboya 100 market Proposed construction of 2 door pit latrine with a 103. 722,000.00 722,000.00 The Project has been completed N/a urinal and repair of dustbin cubicals at 100 Matinyani. Proposed Covid 19 pandemic affected Timely initiation of 104. construction of 2 637,800.00 0 0 project implementation procurement process door pit latrine with 58 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future urinal at Kyuso market Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 105. door pit latrine with 638,058.00 0 0 project implementation procurement process urinal at Kimela market Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 106. door pit latrine at 432,230.00 0 0 project implementation procurement process Kalundu livestock market Proposed renovation of the two toilet Covid 19 pandemic affected Timely initiation of 107. block at Kwa Vonza , 295,775.00 project implementation procurement process 2 door with urinal 0 0 and 4 door with Proposed construction of 2 108. 431,971.25 The Project has been completed N/a door pit latrine at 431,971.25 100 Nzune market Proposed construction of 1 NO. Two door pit latrine Covid 19 pandemic affected Timely initiation of 109. 599,058.00 with urinal at project implementation procurement process Mwakini Katothya 0 0 market public proposed The Project have been 110. construction of two 431,662.00 N/a completed door pit latrine at 431,662.00 100 59 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Ndumoni market proposed construction of 2 Covid 19 pandemic affected Timely initiation of 111. door pit latrine with 451,260.00 project implementation procurement process urinal at Kaliku open 0 0 air market Proposed construction of 2 112. door pit latrtine with 451,052.00 The Project has been completed N/a urinal at Endau open 451,052.00 100 air market Proposed 2 door pit latrine at Bazaar Covid 19 pandemic affected Timely initiation of 113. 494,683.00 0 0 market -Mwingi project implementation procurement process West Sub County Construction of 4 no. door pit latrine , with Covid 19 pandemic affected Timely initiation of 114. 753,760.00 0 0 urinal at Makaani project implementation procurement process market proposed 4 door pit Covid 19 pandemic affected Timely initiation of 115. latrine at Mukuku 746,380.00 0 0 project implementation procurement process market- Kitui central Proposed construction of 4 no. 116. 2,581,100.00 100 door pit latrine, 2,581,100.00 The Project has been completed N/a fencing and gate and 2 no water tank base & 2 no. proposed Covid 19 pandemic affected Timely initiation of 117. 788,500.00 construction 4 door project implementation procurement process 60 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future number pit /-latrine with a urinal at 0 0 Mwingi KICOTEC Construction of pit 118. 428,736.00 428,736.00 100 The Project has been completed N/a latrine at Syongila proposed Covid 19 pandemic affected Timely initiation of 119. construction of pit 748,635.00 0 0 project implementation procurement process latrine at Usiani Proposed construction of 2 door number pit Covid 19 pandemic affected Timely initiation of 120. latrine at KIIO 431,520.00 0 0 project implementation procurement process shopping center Mwingi west sub county Proposed construction of door Covid 19 pandemic affected Timely initiation of 121. 762,550.00 0 0 pit latrine at Mutha project implementation procurement process market Proposed construction of 1 no. 4 door pit latrine without urinal at Hon 122. 241,000.00 241,000.00 The Project has been completed N/a Charles Nyamai secondary school- Mbitini ward-Kitui 100 rural sub county Proposed 123. construction of 2 431,230.00 431,230.00 The Project has been completed N/a door pit latrine with 100 61 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future urinal at Nzambani market Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 124. door pit latrine with 405,790.00 0 0 project implementation procurement process urinal at Wimbondo market proposed construction of 2 Covid 19 pandemic affected Timely initiation of 125. 407,000.00 0 0 door pit latrine at project implementation procurement process Nuu market proposed construction of 2 Covid 19 pandemic affected Timely initiation of 126. door pit latrine with 432,071.45 0 0 project implementation procurement process urinal at Zombe livestock market Proposed construction of 4 no. door pit latrine, Covid 19 pandemic affected Timely initiation of 127. fencing and gate and 2,349,250.00 0 0 project implementation procurement process 2 no water tank base & 2 no. for Katutu market Proposed renovations of 6 no. door pit 128. 270,250.00 The Project has been completed N/a latrine at Katulani 270,250.00 100 open air market proposed renovation Covid 19 pandemic affected Timely initiation of 129. of toilet block at 335,000.00 0 0 project implementation procurement process Kasyala 62 Budget Measures to safe guard Expenditure Absorption Explanation for the level of S/NO. Project/Programme 2019/20 against such measures in (KES) (%) absorption (KES) future Proposed fencing and 130. repair of toilet at 1,215,650.00 The Project has been completed N/a Mbitini market 1,215,650.00 100 Two-door pit latrine Covid 19 pandemic affected Timely initiation of 131. at Kwa Mutonga 596,187.00 0 0 project implementation procurement process market Proposed construction of 2 Covid 19 pandemic affected Timely initiation of 132. door pit latrine with 405,420.00 0 0 project implementation procurement process urinal at Ikanga market Payment for land not done due Leasing of stone Timely initiation of 133. 360,000.00 0 0 to delayed procurement crusher land procurement process process. Branding and Marketing Consultant 134. 1 1,979,987.00 1,979,987.00 100 Project Completed N/a for the County Government of Kitui Consultancy Service 135. 2 for Video 1,948,800.00 1,948,800.00 100 Project Completed N/a Documentary Kitui County Implementation process Fast track implementation Empowerment Fund 136. 3 1,879,200.00 1,315,440.00 70 ongoing. Covid-19 Pandemic once Covid-19 Pandemic is (KCEF) in respect to has delayed the process contained. professional services 63 3719: Ministry of Environment and Natural Resources Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future County tree growing Treasury to fasttrack the programme(to Delays in release of funds payment process to prevent 1 increase tree 5,000,000.00 4,763,163.00 95.26% causing delays in payments and delays in procurement of cover towards the procurement process services and payments national target of 10%) Development of the Kitui County Project management and Ongoing as per the terms of 2 forestry and 3,000,000.00 - 0.00% evaluation tools to fast track reference agroforestry implimentation policy Development of the Endui 3 2,000,000.00 1,987,500.00 99.38% Completed woodland management plan Development of the Kitui County Project management and Ongoing as per the terms of 4 Solid Waste 3,000,000.00 - 0.00% evaluation tools to fast track reference Management implimentation policy Major markets clean up 20 in 5 2,000,000.00 1,827,600.00 91.38% Completed number in the County Awareness Project management and creation and Ongoing as per the terms of 6 700,000.00 - 0.00% evaluation tools to fast track production of reference implimentation environmental 64 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future education materials Awareness creation and documentary Project management and creation on Ongoing as per the terms of 7 1,500,000.00 - 0.00% evaluation tools to fast track climate change reference implimentation adaptation and mitigation measures Supply of materials for woodlots Project management and establishment Contactor delays in project 8 1,000,000.00 0.00% evaluation tools to fast track (Planting of fast implimentation implimentation maturity drought tolerant tree species) Installation of solar water Project management and Contactor delays in project 9 pumping systems 25,523,296.00 8,601,077.00 33.70% evaluation tools to fast track implimentation and maintenance implimentation 10 in number Solar lightning Treasury to fasttrack the Delays in release of funds projects and payment process to prevent 10 35,000,000.00 - 0.00% causing delays in payments and maintenance 130 delays in procurement of procurement process in number services and payments Promotion of modern 11 900,000.00 846,500.00 94.06% Completed technology productions kilns 65 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future and briquetting technology in Charcoal hot spots Community 12 sensitization on 1,451,445.00 1,338,000.00 92.18% Completed mining issues Mapping of Delays in procurement process Fasttrack the procurement 13 mineral rich 3,900,000.00 3,385,008.00 86.80% caused by delayed release of process to prevent delays in zones funds procurement of services Levelling of the land for Setting up of mineral Project management and Contactor delays in project 14 testing laboratory 3,500,000.00 - 0.00% evaluation tools to fast track implimentation to spur wealth implimentation creation from county minerals Fencing of the land for Setting up of mineral Project management and Contactor delays in project 15 testing laboratory 1,700,000.00 - 0.00% evaluation tools to fast track implimentation to spur wealth implimentation creation from county minerals Supply of materials for woodlots 16 establishment 160,910.00 160,910.00 100.00% Completed (Planting of fast maturity drought tolerant tree 66 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future species) Pending bill FY 2018/2019 Installation of solar lighting at kyome ndauni 17 2,464,768.00 2,464,768.00 100.00% Completed markets Pending bill FY 2018/2019 Installation of solar security lighting at Kwa Kamuru, 18 Musosya and 2,338,933.60 2,338,933.60 100.00% Completed Kimangao markets Pending bill FY 2018/2019 Installation of solar pumping system at Ikoo 19 pump well water 4,344,890.00 4,344,890.00 100.00% Completed supply Pending bill FY 2018/2019 Installation of solar pumping system at Mitaani 20 3,900,000.00 3,900,000.00 100.00% Completed water borehole Pending bill FY 2018/2019 67 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future Installation of solar pumping system at 21 Makulende water 1,571,042.52 1,571,042.52 100.00% Completed borehole Pending bill FY 2018/2019 Installation of solar pumping system at Project management and Contactor delays in project 22 Kyalamoko 4,678,299.00 - 0.00% evaluation tools to fast track implimentation water borehole implimentation Pending bill FY 2018/2019 Installation of solar pumping system at Mavui 23 2,767,933.42 2,767,933.42 100.00% Completed water borehole Pending bill FY 2018/2019 Installation of solar security lights at Malili 24 and Muthue 1,170,055.06 1,170,055.06 100.00% Completed Trading centres Pending bill FY 2018/2019 Supply of briquettes 25 195,000.00 195,000.00 100.00% Completed Pending bill FY 2018/2019 68 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future Solar security lights 26 maintenance 1,300,000.00 1,300,000.00 100.00% Completed Pending bill FY 2018/2019 Solar powered boreholes 27 maintenance 3,850,600.00 3,850,600.00 100.00% Completed Pending bill FY 2018/2019 Supply of materials for development of 28 1,297,437.00 1,297,437.00 100.00% Completed tree nursery Pending bill FY 2018/2019 Supply of tree seedlings 29 3,605,800.00 3,605,800.00 100.00% Completed Pending bill FY 2018/2019 Supply of materials for annual tree 30 1,613,500.00 1,613,500.00 100.00% Completed growing launch Pending bill FY 2018/2019 Supply of uniforms for 31 artisanal miners 1,976,665.00 1,976,665.00 100.00% Completed trainees Pending bill FY 69 Measures to safeguard Name of the Budget 2019- Expenditure Absorption Explanation for the level of SN against such risk in the Project 2020 (Kshs.) (Kshs.) Rate (%) absorption future 2018/2019 Artisanal miners Training at SEKU (South 32 Eastern Kenya 2,100,000.00 2,100,000.00 100.00% Completed University) Pending bill FY 2018/2019 Consultancy services for the development of 33 2,867,000.00 2,867,000.00 100.00% Completed the mining policy Pending bill FY 2018/2019 3720: Ministry of Tourism, Sports and Culture Budget Expenditure Absorption Explanation For The Level Of Measure To Safeguard Against S/No. Project/Programme (2019-2020) (Ksh) Rate (%) Absorption Such Risk In The Future Kshs Renovation of Kaluu This was partially done as the 1. view point at Ikooo 1,000,000.00 603,460.00 60.30% budget could not complete the No risk encountered Valley entire renovation of the view point Construction of Entrance gate and 2. 2,023,956.00 2,023,956.00 100% Works well executed No risk encountered sentry at Kalundu Eco park Construction of Works were well planned, 3. 2,666,268.00 2,666,268.00 100% There were no risk encountered ablution block at procured and implemented 70 Budget Expenditure Absorption Explanation For The Level Of Measure To Safeguard Against S/No. Project/Programme (2019-2020) (Ksh) Rate (%) Absorption Such Risk In The Future Kshs Kalundu Eco –park Construction of 4. snake pit at Mutomo 1,480,370.00 1,480,370.00 100% Works were timely done No risk was encountered reptile park Slow and uncooperative Construction of contractors. There is need to Works were still on-going by close 5. snake house at 3,987,650.00 2,113,454.50 53% fast-track project completion of FY 2019/2020 Mutomo reptile park timelines by project supervisors from the ministry of LIHUD Kitui gospel music 6. 2,000,000.00 1,997,800.00 99.90% The event was successfully held No risk encountered extra-vaganza Construction of rangers unihuts at 7. 2,523,801.00 2,523,801.00 100% Works done as planned No risk encountered Kanyonyoo wildlife conservancy Construction of campsite and toilet 8. 1,326,110.00 1,326,110.00 100% Works implemented as planned There was no risk encountered at Kanyonyoo wildlife conservancy Upgrading Kanziku 9. Township 3,326,560.00 3,326,560.00 100% Works done as planned No risk encountered playground Upgrading Tuvila 10. Primary school 3,701,800.00 3,701,800.00 100% Works done as planned No risk encountered playground Upgrading of 11. Katangasua Primary 3,802,610.00 3,802,610.00 100% Works done as planned No risk encountered school playground Upgrading of 12. 3,458,934.00 3,458,934.00 100% Works done as planned No risk encountered Maseki Primary 71 Budget Expenditure Absorption Explanation For The Level Of Measure To Safeguard Against S/No. Project/Programme (2019-2020) (Ksh) Rate (%) Absorption Such Risk In The Future Kshs school playground Upgrading of 13. Mandongoi Primary 3,834,045.00 3,834,045.00 100% Works done as planned No risk encountered School playground Upgrading of St. 14. Patricks Mutune Sec 3,856,850.00 3,856,850.00 100% Works done as planned No risk encountered school playground Rennovation of 15. 2,630,150.00 2,630,150.00 100% Works done as planned No risk encountered Musila Gardens Upgrading of Ikongo The contractor faced machinery Schedule works to start in 16. Primary school 2,999,610.00 960570 32% breakdown during the second quarter to ensure timely playground implementation completion Upgrading of Nuu Schedule works to start in The contractor had not completed 17. DEB School 3,455,239.00 1,305,275.00 37.80% second quarter to ensure timely works by the closure of the FY playground completion Upgrading of Kwa Munyanzu Tussle with contractor over the Fast track contractors to ensure 18. 3,745,002.00 0 0% community expected works adept understanding of TORs. playground Upgrading of Mutitu 19. Primary school play 3,838,280.00 3,838,280.00 100% Works done as planned No risk encountered ground Civil works and Late planning and lack of enough repairs at Kitui funds to carry out earlier planned Early planning and allocation of 20. 1,500,000.00 699,596.00 46.64% Stadium parking development activities at the enough funds. area stadium. Hosting of Kenya Funds were committed but the Volleyball Health regulations to be put in 21. 1,300,000.00 1,210,000.00 93.08% event did not take place because of Federation National place for the event to take place. Covid – 19 pandemic. League and 72 Budget Expenditure Absorption Explanation For The Level Of Measure To Safeguard Against S/No. Project/Programme (2019-2020) (Ksh) Rate (%) Absorption Such Risk In The Future Kshs tournament Procurement of tents 22. and branding with 2,016,000.00 2,016,000.00 97.72% The works were properly procured. No risk encountered. county logo Procurement plastic 23. chairs and branding 3,801,880.00 3,801,880.00 100% The works were successful No risk encountered. with county logo Lower eastern heritage centre 24. gallery 1 phase 2 3,200,000.00 2,983,200.00 93% The works were well procured. No risk involved roofing of the main gallery Lower eastern heritage centre gallery 1 phase 3 installation of 25. 2,752,600.00 2,752,600.00 100% Successful procurement No risk involved windows, doors, plaster and floor finishing and painting 73 3721: County Treasury Budget Measures to safeguard Expenditure Explanation for the level S/N Project/Programme 19/20 Absorption (%) against such risk in the (Kes) of absorption (Kes) future Capacity Building The amount catered for Proper planning, Programme – Kenya bills that were pending consultation and timely 1 30,140,998 4,299,600 14.3 Devolution Support with no further capitation disbursement from the Programme for FY 2019/20. respective donor 3723: County Assembly Measures to safeguard Project Budget 19/20 Expenditure Explanation for the level S/N Absorption ( %) against such risk in the Name Kshs (Kshs) of absorption future Office Money was used to pay Increase budget to cater 1 10,000,000.00 Block for pending bills for pending bills Members Logistics concerning Cafeteria putting up cafeteria were Logistics to be finalised 2 and 10,000,000.00 985,400 10 not complete by end of on time Renovation financial year of Toilets Parking Deffered because these space and a Increase budget to cater 3 10,000,000.00 - - funds were used to pay modern for pending bills for pending bills Gate Logistics concerning Installation installation of lift were Logistics to be finalized 4 of lift in 10,000,000.00 - - not complete by end of on time Chamber financial year 74 3724: Kitui Municipality Measure to Explanation for Budget(2019- Absorption safeguard S/No Project /Programme Name Expenditure(kshs) the level of 2020) KES Rate (%) against such Absorption risks in future Proper planning, timely Proposed Renovation of procurement, Fully absorbed 1 toilet block at Kalundu 3,000,000.00 2,985,608 100 effective project as budgeted Market supervision, monitoring and evaluation. Proper planning, timely Proposed Construction of procurement, Kithomboani Modern Market Ongoing-Multi- 2 356,323,719.00 83,577,990.90 23 effective project in Kitui Town(Kenya Urban year project supervision, Support Program-KUSP) monitoring and evaluation. Proper planning, Consultancy service for the timely design review and procurement, Ongoing-Multi- 3 construction supervision of 27,700,000.00 12,700,000 46 effective project year project Kithomboani Modern supervision, Market(KUSP) monitoring and evaluation. 75 Measure to Explanation for Budget(2019- Absorption safeguard S/No Project /Programme Name Expenditure(kshs) the level of 2020) KES Rate (%) against such Absorption risks in future Consultancy services for environmental and social study, preliminary design, Proper planning, detailed design and tender timely documentation -Road re- procurement, carpeting from Kaveta to Fully absorbed 4 5,011,200.00 4,655,126.40 93 effective project ginnery main road, as budgeted supervision, Construction of pedestrian monitoring and walk on both sides, Storm evaluation. water drainage on both sides and Cabro works at Kunda Kindu Bus park-(KUSP) Project awarded Timely funds towards the end disbursemnt Proposed Kaveta to of the financial ,Proper planning, Ginnery(B7) Road year due to Late timely 5 Improvement,drainage works 119,794,980.52 0 0 disbursement of procurement, and Kunda Kindu Bus Park - funds effective project LOT 1 supervision, -ongoing monitoring and evaluation 3725: Mwingi Town Administration Budget Explanation Measure to Safeguard Expenditure Absorption S/No. Project/Programme (2019-2020) for the level of against such risk in the (KES) Rate (%) KES Absorption future 1. Overhaul of the ablution 1,000,000 989,395 98.94%  The actual - 76 Budget Explanation Measure to Safeguard Expenditure Absorption S/No. Project/Programme (2019-2020) for the level of against such risk in the (KES) Rate (%) KES Absorption future block system in old expenditure was market and construction of within the market shed allowable preserved budget range   Complete  Variation of Construction of ablution the materials Prior market price 2. 1,500,000 1,396,530 93.10% block in Musila gardens prices surveys  Complete  The actual expenditure was Construction of 2 sheds & within the 3. 2 benches at slaughter 2,000,000 1,999,497 99.97% allowable - house preserved budget range   Complete  The actual expenditure was Storm water drainage within the rehabilitation from old 4. 3,000,000 2,905,998 96.87% allowable - market to Faith medical preserved clinic to old posta budget range   Complete Installation of one flood  The actual 5. light (Street lighting mlika 5,500,000 5,249,999.92 95.45% expenditure was - mwizi at Mavoko area) within the 77 Budget Explanation Measure to Safeguard Expenditure Absorption S/No. Project/Programme (2019-2020) for the level of against such risk in the (KES) Rate (%) KES Absorption future allowable preserved budget range   Complete  The actual Rerouting of street light expenditure was cable at Mwingi Probox within the stage, repair of street 6. 2,000,000 1,978,125 98.91% allowable - lights and installation of preserved KPLC meter at Garissa budget range  stage line.  Complete  Variation of Storm water drainage the materials Prior market price 7. rehabilitation and 2,000,000 1,844,456.36 92.22% prices surveys gravelling of Bus park  complete Drainage, Grading and  Reduction of graveling of Agriculture distance of the 8. 3,500,000 2,524,650 72.13% Prior distance survey office to Ideal apartment road worked on.  access road  complete 78