REPUBLIC OF KENYA COUNTY GOVERNMENT OF KERICHO FINANCE AND ECONOMIC PLANNING MEDIUM TERM COUNTY FISCAL STRATEGY PAPER 2016 FEBRUARY 2016 1 | P a g e © County Fiscal Strategy Paper (CFSP) 2016 Office of the Governor County Government of Kericho P.O. Box 112- 20200 Kericho Email: info@kericho.go.ke The document is also available on the internet at: www.kericho.go.ke 2 | P a g e Foreword This Fiscal Strategy Paper, the third since the operationalization of the County Governments, sets out county policy goals and strategic priorities that will be the basis for formulation of County’s Financial Year 2016/17 budget and the Medium Term. The Paper is prepared in accordance with the Public Finance Management Act, 2012. The County priorities and goals outlined herein are based on the County Integrated Development Plan 2013/17, the Annual Development Plan 2016/17 and the Strategic Plan with emphasis on investment in: Agriculture and food security, Infrastructure, accessibility of water, accessible health care and education. These priorities shall form the basis for formulation of FY 2016/17 budget and the Medium Term. The paper therefore links county planning and policies to Budget which is the main objective of the Medium Term Expenditure Framework. The fiscal framework presented in the paper ensures a sustainable financing while allowing continued spending on priority programmes. It also reviews the fiscal performance of financial year 2014/2015; highlights of the recent economic developments and the economic outlook; Hon. Patrick Mutai County Executive Committee Member for Finance and Economic Planning and Head of County Treasury. 3 | P a g e Acknowledgement The County Fiscal Strategy Paper (CFSP) will be tabled in the County Assembly under Section 117 of the Public Finance Management Act, 2012. It outlines the broad strategic macroeconomic issues and fiscal framework, together with a summary of County Government spending plans, as a basis of 2016/17 budget and the medium- term. We expect the document to improve the public’s understanding of the County’s public finances and guide public debate on economic and development matters. The preparation of the 2016 CFSP continues to be a collaborative effort. Much of the information in this report was obtained from the County Departments. We are grateful for their inputs. We are also grateful for the comments from the Public Participation Hearing of February 2016 and the 2015 County Budget Review and Outlook Paper (CBROP), which provided inputs to this 2016 CFSP. Leah Chirchir (Mrs.) Chief Officer Finance and Economic Planning. 4 | P a g e ABBREVIATIONS AND ACRONYMS ADP - Annual Development Plan CFSP - County Fiscal Strategy Paper CIDP - County Integrated Development Plan CRA - Commission on Revenue Allocation CSP - County Strategic Plan ECDE - Early Childhood Development Education ERP - Enterprise Resource Planning FIF - Facility Improvement Fund FY - Financial Year HDU - High Dependency Unit ICU - Intensive Care Unit ICT - Information Communication Technology IFMIS - Integrated Financial Management Information System MTEF - Medium Term Expenditure Framework MTP - Medium Term Plan NHIF - National Hospital Insurance Fund NSSF - National Social Security Fund O&M - Operation and Maintenance PFM A - Public Finance Management Act, 2012 PBB - Program Based Budgets 5 | P a g e Legal basis for the publication of County Fiscal Strategy Paper The County Fiscal Strategy Paper is published in accordance with section 117 of the Public Finance and Management Act, 2012. The law states that (1)The County Treasury shall prepare and submit to the County Executive Committee the County Fiscal Strategy Paper for approval and the County Treasury shall submit the approved Fiscal Strategy Paper to the county assembly, by the 28th February of each year. (2) The County Treasury shall align its County Fiscal Strategy Paper with the national objectives in the Budget Policy Statement. (3) In preparing the County Fiscal Strategy Paper, the County Treasury shall specify the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term. (4) The County Treasury shall include in its County Fiscal Strategy Paper the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term. (5) In preparing the County Fiscal Strategy Paper, the County Treasury shall seek and take into account the views of— (a) the Commission on Revenue Allocation; (b) the public; (c) any interested persons or groups; and (d) any other forum that is established by legislation. (6) Not later than fourteen days after submitting the County Fiscal Strategy Paper to the county assembly, the county assembly shall consider and may adopt it with or without amendments. (7) The County Treasury shall consider any recommendations made by the county assembly when finalising the budget proposal for the financial year concerned. (8) The County Treasury shall publish and publicise the County Fiscal Strategy Paper within seven days after it has been submitted to the county assembly. 6 | P a g e Fiscal Responsibility Principles for the County Government In line with the Constitution, the Public Finance and Management Act, 2012 sets out the fiscal responsibility principle to ensure that prudent and transparent management of public resources. The PFM law (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). 7 | P a g e 1. BUDGET THEME: ECONOMIC AND SOCIAL TOOL FOR CITIZEN EMPOWERMENT 1.1 INTRODUCTION 1. The County Fiscal Strategy Paper 2016 is the third fiscal strategy paper to be prepared by the County Government of Kericho. Public Finance Management Act, 2012 Section 117 requires County Treasury to prepare and submit the policy document to County Assembly. 1.2 CFSP Process Overview 2. The county Fiscal strategy paper 2016 will be a prime policy document for the county government as it reveals and specifies its priorities, how it will implement them through a number of programmes and the amount of funds it will dedicate towards financing these programmes to achieve its priorities and within the context of limited resources. 3. The county Fiscal Strategy Paper 2016 will be submitted to the County Assembly by 28th February for review by the budget and appropriation committee. Once the county Assembly approves and Adopts the policy document it shall form the basis of expenditure ceilings specified in the fiscal framework. 1.3 Outline of the CFSP 4. The County Fiscal Strategy Paper has seven chapters, that is: the County Budget Theme; Recent Economic and Fiscal Developments, Forward Economic and Fiscal Outlook, Strategic Priorities and Interventions, Fiscal Policy and budget Framework and the Medium Term Expenditure Framework. 8 | P a g e 2.0 RECENT ECONOMIC AND FISCAL DEVELOPMENTS 5. Its imoerative to analysis the recent economic development and policy outlook since this direct correlations with the equitable revenue share from the national government. Any condition at national level whether stable or unstable impact positively or negatively on the functionality of county governments. 2.1 National Economic and Fiscal Overview. 6. According to Economic Survey 2015, Kenya’s economy is estimated to have expanded by 5.3 per cent in 2014, compared to a growth of 5.7 per cent in 2013. A number of factors influenced the country’s economic performance during the review period. From the demand side, government and private final consumption increased by 2.7 per cent and 5.5 per cent, respectively. The demand side was mainly driven by a resilient private final consumption and a robust growth in fixed assets. Investment in fixed assets expanded rapidly on account of a vibrant growth in real estate sector, the on-going mega infrastructure projects and increased investments in air transport equipment. There was an increase of 7.0 per cent in exports of goods and services. However, imports of goods and services expanded more rapidly resulting to a widening of the current account deficit. 7. From the supply side, the major drivers of the economy were agriculture, forestry and fishing; construction; wholesale and retail trade; education; and finance and insurance with respective contributions of 14.5, 11.1, 9.8, 9.7 and 9.1 per cent to the growth. The accommodation and food services (hotels and restaurants) sector contracted for the second year in a row while all the other sectors recorded positive growths but of varying magnitudes during the review period. 9 | P a g e 8. During the year, the main macroeconomic indicators remained relatively stable. The Kenya Shilling generally held firm against the major trading currencies despite its depreciation against the US dollar, Sterling pound and Euro. The Shilling’s stability was mainly due to proceeds from the successful international sovereign bond floated by the government in June 2014 and increased Diaspora remittances. A significant decline in the international tourism earnings and a widening trade deficit worked against the Shilling over this period. 9. Weighted average commercial banks’ leading rate remained relatively high but stable to reach a maximum of 15.99 per cent in 2014 from 16.99 per cent in 2013. This was despite the Central Bank Rate (CBR) remaining moderately low at 8.5 throughout the year. The 91-day Treasury bill rate eased downwards to settle at 8.58 per cent in December 2014 from 9.52 per cent in December 2013. The central bank introduced Kenya Banks’ Reference Rate (KBRR) in early July 2014, which was expected to significantly bring down the cost of borrowing. The KBRR was initially set at 9.13 per cent and replaced the base lending rate, which commercial banks previously used to guide their pricing of loans and advances. 10. The Balance of Payments position improved to a surplus of Kshs 126.1 billion in 2014 from that of Kshs 31.8 billion in 2013 mainly on account of proceeds from the sale of the Eurobond. However, the current account deficit worsened due to deterioration in trade deficit. The widening of the trade deficit emanated from a fast growing import bill against a slower growth in export earnings. Government fiscal policies in the 2014/15 national budget, focused on increased revenue mobilization and containment of growth in recurrent expenditure. Consequently, the share of the development expenditure increased to 44 per cent of the total budget in 2014/15 fiscal year from 33 per cent in 2013/14. 10 | P a g e 11. Performance of the labour market remained modest with employment growing at 5.9 per cent to an estimated 14.3 million jobs in 2014. Employment within the informal sector dominated the job creation resulting in an increase in its share of total employment to 82.7 per cent during the year. 2.2 County Economic and Fiscal Overview, FY 2014/2015 and July – December 2015 and emerging challenges 12. In the Financial Year 2014/2015, the county's total revenue was Kshs 4.814 billion comprising of equitable share from national government amounting to Kshs 3.930 billion, county own revenue of Kshs 386 million and conditional grants from Danish Agency of Kshs 20 million. There was also unspent balance of Kshs 480 million brought forward from the financial period 2013/2014 which had to be appropriated before expensing. It's important to note that county own revenue is generated from the various sources identified in the Finance Act including funds generated from health facilities under the Facility Improvement Fund (FIF). In the last financial year, the county surpassed its own revenue collection by Kshs 27 million. This is composed of Kshs 9 million from health facilities and Kshs 18 million from as local revenue. 13. During the fiscal year 2014/2015, the county received a total of Kshs.4.412 Billion as total approved requisition. 11 | P a g e Expenditure 14. In terms of expenditure, the total expenditure incurred during the period under review was Kshs 4.410 billion. Recurrent expenditure amounted to Kshs. 3.042 Billion and development expenditure was Kshs. 1.367 Billion translating to 69% and 31% of total expenditure respectively. More specifically the two tables below provides an overview of the budgeted amounts against actual expenditure for both recurrent and development votes. RECURRENT EXPENDITURE, IN (KSHS) Vote 2014/2015 Target Actual Deviations 1. Recurrent grants 3.117 Billion 3.042 Billion 74 Million Total Expenditure 3.117 Billion 3.042 Billion 74 Million Source: Kericho County Treasury DEVELOPMENT EXPENDITURE, IN (KSHS) Vote 2014/2015 Target Actual Deviations 2. Development Grants 1.697 Billion 1.367 Billion 330 Million Development/Projects Total Expenditure 1.697 Billion 1.367 Billion 330 Million Source: Kericho County Treasury Overall, the total expenditure against the total revenue is 91.6% absorption rate. The unspent amount of Ksh 404 million comprising Ksh 74 million and Ksh 330 million under recurrent and development expenditure respectively will be budgeted for in the current financial year 2015/2016. 12 | P a g e 15. In the current fiscal year 2015/2016, the county’s projected revenue is estimated at Kshs. 5.081 billion comprising of Kshs. 4.505 billion from the national government equitable share base, conditional grants of Kshs. 22.6 Million and Ksh.553 million on projected local revenues. The revenue will increase to Kshs 5.182 billion due to disbursement of conditional grants for user fees forgone, free maternity for health facilities and Road Maintenance Levy Fund (RMLF) amounting to Kshs 173,760,149 which will be factored during the supplementary budget for FY 2015/2016. 16. During the first quarter of this financial period 2015/2016, the county received a total of Kshs 822 million and expended Kshs 801 million. The total amount received in the quarter was approved in three tranches in July, August and September respectively and spent against approved recurrent and development expenditure allocations. The county collected total revenues amounting to Ksh.44 million approximately 8% of the budgeted local revenues of Ksh.553 million. 17. The county gross recurrent expenditure for the 1st quarter ended 30 September, 2015 for all sectors was Kshs. 511 Million which translates to 16% absorption level of total approved recurrent budget while the development expenditure was Kshs. 309 Million representing 17% of approved development budget. 3.0 FORWARD ECONOMIC AND FISCAL OUTLOOK 3.1 National Economic and Fiscal Outlook 18. Kenya’s economy gained some steam in the third quarter of last year, growing an annual 5.8% (Q2: +5.6% year-on-year). Q3’s pickup was sustained by healthy gains in agriculture, construction, financial services and commerce. The acceleration underlines that the economy proved to be fairly resilient to headwinds such as a prolonged drop in tourism, security concerns related to 13 | P a g e terrorism, currency depreciation and monetary policy tightening. Recent data suggest that Kenya remains on a solid footing: the PMI remained in expansionary territory in December and the shilling was stable in the outset of 2016. 19. GDP growth remained robust in 2013 at 5.7% based on rebased statistics and stood at 4.4%, 5.8% and 5.5% in the first three quarters of 2014 compared with 6.4%, 7.2% and 6.2% in comparable quarters of 2013. According to the central bank’s economic monthly review of November 2014, growth was mainly supported by expansion in construction, manufacturing, finance and insurance, information, communications and technology, and wholesale and retail trade. The economy slowed in the third quarter of 2014, partly due to a sharp drop in tourism following terrorist attacks in the country. Overall GDP growth is expected to amount to 6.6% and 6.3% in 2015 and 2016, respectively. Consumer price index (CPI) inflation is expected to remain in the single digits, at around 5%, during the same period. 4.0 STRATEGIC PRIORITIES AND INTERVENTIONS 4.1 Overview 20. The County had prepared the County Integrated Development Plan (CIDP) for the period 2013-2017 which has taken into account public input through the countywide CIDP consultative meetings and the Medium Term Plan (MTP) II priority programmes covering the period 2013-2018. The county also held public participation forums at sub county level whose input form part of the priority programmes for implementation. Development expenditures are shared out on the basis of the County Integrated Development Plan (CIDP). 4.2 Strategic Priorities 21. The ultimate goal of the county government is to improve the quality of life for the residents of Kericho County. To attain this goal the county government has to achieve the following outcomes; 14 | P a g e  Enhanced Service Delivery  Improved Socio- Economic Development for the County Residents  Increased Investments in the County  Sustainable Environment in the County  Improved County Governance 22. The strategic pillars for improved quality of life will include; 4.2.1 Socio-economic Development Strategic Objectives: i) Access to quality Education ii) Access to quality Health care iii) Sustainable Agriculture iv) Sustainable Livestock and Fisheries v) Access to affordable Financial Services 4.2.2 Service Delivery Strategic Objectives: i) Access to quality services ii) Develop ICT infrastructure and access iii) County Planning iv) Promote Cultural Activities v) Enhance Public Works and Services vi) Control of drugs abuse and pornography vii) Disaster Management 4.2.3 Investments Strategic Objectives: i) Promotion and regulation of Trade ii) Provide Markets iii) Regulate Transport iv) Improve Infrastructure v) Promote Industrial development vi) Promote Tourism 15 | P a g e vii) Control of mining 4.2.4 Sustainable Environment Strategic Objectives: i) Increase access to Water ii) Improve Sanitation iii) Control pollution iv) Increase Forest cover v) Promote Conservation 4.2.5 County Administration Strategic Objectives: i) Build an effective Public service ii) Enhance Citizen Participation iii) Protection of Marginalized, women and youth 5.0 FISCAL POLICY AND BUDGET FRAMEWORK FOR 2016/17 – 2018/19 5.1 Overview 23. The priorities outlined in the Medium Term Plan of Kenya Vision 2030 and the County Integrated Development Plan will guide the development of sector priorities, policies, plans and monitoring and evaluation processes for FY 2016/17 - 2018/19 County MTEF budget. 5.2 Fiscal Policy Framework 24. The Fiscal policy underpinning the FY 2016/17 Budget and MTEF aims at revenue target 520 Million from Local Sources, 5.1 Billion from equitable share and Conditional Grants of 196 Million and need for containing growth of total expenditure over the medium term. This will translate to a total of Kshs 5.825 Billion for the financial year 2016/17. 16 | P a g e 5.2.1 Fiscal Responsibility Principles 25. In compliance with section 107 of the PFM Act, 2012 the County Treasury shall; (1). 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. 5.2.2 Fiscal and Public Finanacial Management Reforms 26. The Public Procurement System in Kenya has evolved from a crude system with no regulations to an orderly legally regulated procurement system. The Government’s Procurement system was originally contained in the Supplies Manual of 1978, which was supplemented by circulars that were issued from 17 | P a g e time to time by the Treasury. The Director of Government Supply Services was responsible for ensuring the proper observance of the provisions of the Manual. The Manual created various tender boards for adjudication of tenders and their awards. The county government has also adopted the e- procurement system as required by the national government, this will in turn help curb loop holes in the procurement system. 5.2.3 Debt Management Strategy 27. In regard to deficit financing and borrowing, the County Government is aware of the provisions of PFM Act, 2012 and adherence to the requirements of these laws is ensured. Section 107(3) (4) of the PFM Act provides as follows:  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. 28. The county government shall continue to pay its debts as outlined in the county debt management strategy paper. These debts were inherited from the defunct local governments. 5.3 FY 2016/17 Budget Framework 29. The 2016/17 budget framework is set against the background of the medium term fiscal framework, the government’s strategic objectives and priorities as outlined in the CIDP and broad development policies of the new administration. The projected growth assumes normal economic condition during the year and in the medium term. 30. The programmes and projects spelt out in County Integrated Development Plan 2013 – 2017, County Strategic Plan 2015-2017 and the Annual development Plan 2015/2016 will form the framework for the budget 2016/17. 18 | P a g e 5.3.1 Revenues projections 31. The 2016 Medium-Term Fiscal Policy aims at supporting rapid economic growth and ensuring the debt position remains sustainable while at the same time supporting the devolved system of Government for effective delivery of public goods and services in a sustainable manner. Specifically, the Fiscal policy underpinning the FY 2016/17 Budget and MTEF aims at revenue target 520 Million from Local Sources, 5.1 Billion from equitable share and Conditional Grants of 196 Million and need for containing growth of total expenditure over the medium term. Further, the policy aims at shifting more public resources from recurrent to capital investment so as to promote sustainable and inclusive growth. 5.3.2 Expenditure Forecast 32. Over the medium term, a minimum of 30% of the County budget shall be allocated to development expenditure. The County Government is committed to reducing the recurrent expenditure to devote more resources to development. The County Government’s expenditure on wages and benefits for public officers shall not exceed a percentage of the County Government revenue as prescribed by the regulations. 33. Fiscal risks shall be managed prudently. The County Government has improved its macroeconomic forecasts and regularly reviews the impact of macroeconomic projections and its implications for the budget. The Government also takes into account the fiscal risks arising from contingent liabilities, impact of the Public Private Partnership and Financial Sector Stability 34. The baseline estimates reflects current spending priorities in social programmes and infrastructural development in Roads and bridges, Water, 19 | P a g e Education and Health will receive significant allocation. Other priority areas are in Tourism and Enterprise development. However, in the expenditure plan, the government recognizes that Non-discretionary expenditures takes first charge and includes payment of statutory obligations such as salaries and allowances of state officers and public officers and related deductions. 35. The table below show the estimates for the 2016/17 budget and projections of the medium term. Table 5.7 and 5.8 show the projections for recurrent and development respectively. 20 | P a g e Global budget estimates (consolidated) %a ge share of to tal expenditu re 2015/16 2016/17 2016/17 2017/2018 2018/2019 2016/17 2015/16 2016/17 2018/19 2018/19 Department and Entity Name Approval by County Revised Revised Projections Projections Approved Variance Printed Estimates projections projections Assembly Estimates 1 Estimates 2 12% 8% Estimates County Assembly 558,037,314 559,827,854 592,298,695 56,263,525 627,007,197 677,167,772 11% 10% 10% 10% Services 536,035,170 Finance & Economic 344,325,912 607,052,732 602,052,734 552,052,734 (50,000,000) 686,619,059 741,548,584 7% 11% 11% 11% Planning Agriculture, Livestock 325,376,626 355,359,277 370,206,508 366,079,966 (4,126,542) 404,722,390 437,100,182 6% 6% 6% 6% Development & Fisheries Health Services 1,503,299,619 1,618,834,500 1,588,164,500 1,610,180,859 22,016,359 1,751,494,640 1,891,614,211 30% 27% 27% 27% Education, Youth, Children, Culture & 486,742,349 505,545,512 564,059,827 557,772,480 (6,287,347) 572,930,973 618,765,451 10% 9% 9% 9% Social Services Land, Housing & 118,023,100 132,733,998 132,733,998 130,224,642 (2,509,356) 149,782,078 161,764,644 2% 2% 2% 2% Physical Planning Public Works, Roads 802,736,779 950,575,105 701,604,006 697,783,511 (3,820,495) 1,071,364,117 1,157,073,247 16% 16% 16% 16% & Transport Water, Energy, Natural Resources & 209,878,010 266,512,603 263,268,372 260,333,826 (2,934,546) 305,214,116 329,631,245 4% 5% 5% 5% Environment Public Service & 287,626,929 332,015,309 330,836,045 (3,729,264) 378,577,146 408,863,317 6% 6% 6% 6% Administration 334,565,309 County Public 43,027,950 66,202,939 63,389,315 62,682,740 (706,575) 62,947,291 67,983,075 1% 1% 1% 1% Service Board 21 | P a g e Office of the Governor and 144,451,074 164,937,927 163,428,065 161,606,399 (1,821,666) 191,450,478 206,766,516 3% 3% 3% 3% Deputy Governor Trade, Industrialization, Tourism, Wildlife & 165,509,364 175,341,647 167,889,626 166,018,229 (1,871,397) 203,102,644 219,350,856 3% 3% 3% 3% Cooperative Development Information, Communication & 92,029,011 90,062,861 96,235,188 95,762,493 (472,695) 118,790,404 128,293,636 2% 2% 2% 2% E-Government Kenya Devolution 27,177,381 27,177,381 Support Programme GRAND TOTAL 5,081,064,037 5,825,002,259 5,583,632,619 5,610,810,000 27,177,382 6,524,002,533 7,045,922,736 100% 100% 100% 100% 5.4 Recurrent Expenditure %age share of total expenditure 2015/16 2016/17 2016/17 2017/2018 2018/2019 Department 2015/16 2016/17 2018/19 2018/19 and Entity Approval by Name County Revised Revised Projections Projections Approved Variance Printed Estimates projections projections Assembly Estimates 1 Estimates 2 12% 8% Estimates County Assembly 538,037,314 559,827,854 536,035,170 592,298,695 56,263,525.00 627,007,197 677,167,772 16% 15% 15% 15% Services Finance & Economic 299,937,168 444,385,149 439,385,149 389,385,149 (50,000,000.00) 504,431,364 544,785,873 9% 12% 12% 12% Planning Agriculture, Livestock 159,602,571 178,343,486 178,343,486 174,166,944 (4,176,542.00) 206,464,704 222,981,881 5% 5% 5% 5% Development & Fisheries Health Services 1,330,473,247 1,473,372,737 1,473,372,737 1,495,389,096 22,016,359.00 1,554,977,465 1,679,375,662 41% 38% 38% 38% Education, Youth, Children, 202,642,938 219,851,254 400,851,254 394,563,907 (6,287,347.00) 252,953,405 273,189,677 6% 6% 6% 6% Culture & Social Services Land, Housing & Physical 43,783,324 49,420,786 49,420,786 46,911,430 (2,509,356.00) 62,071,280 67,036,983 1% 1% 1% 1% Planning 22 | P a g e Public Works, Roads & 54,930,615 69,453,231 69,453,231 65,632,736 (3,820,495.00) 84,507,619 91,268,228 2% 2% 2% 2% Transport Water, Energy, Natural 69,317,442 83,081,611 83,081,611 80,147,065 (2,934,546.00) 99,771,405 107,753,117 2% 2% 2% 2% Resources & Environment Public Service & 277,357,725 303,045,673 306,045,673 301,866,409 (4,179,264.00) 346,131,153 373,821,646 8% 8% 8% 8% Administration County Public 43,027,950 66,202,939 63,389,315 62,682,740 (706,575.00) 62,947,291 67,983,075 1% 2% 2% 2% Service Board Office of the Governor and 144,451,074 164,937,927 162,928,065 161,606,399 (1,321,666.00) 191,450,478 206,766,516 4% 5% 5% 5% Deputy Governor Trade, Industrialization, Tourism, Wildlife 78,805,537 87,333,102 87,333,102 85,461,705 (1,871,397.00) 104,533,075 112,895,721 2% 3% 3% 3% & Cooperative Development Information, Communication 24,214,048 36,146,756 36,146,756 35,674,061 (472,695.00) 41,604,367 44,932,717 1% 1% 1% 1% & E- Government GRAND TOTAL 3,266,580,953 3,735,402,502 3,885,786,336 3,885,786,336 0 4,138,850,803 4,469,958,867 100% 100% 100% 100% 5.5 Development Expenditure %age share of total expenditure 2015/16 2016/17 2017/2018 2018/2019 2016/17 2015/16 2016/17 2018/19 2018/19 Department and Entity Approval by Name County Revised Revised Projections Projections Approved Variance Printed Estimates projections projections Assembly Estimates Estimates 2 12% 8% Estimates County Assembly 20,000,000 0 0 0 0 0 1% 0% 0 0 Services Finance & Economic 44,388,744 162,667,585 162,667,585 162,667,585 0 182,187,695 196,762,711 2% 8% 8% 8% Planning Agriculture, Livestock 165,774,055 177,015,791 191,913,022 191,913,022 0 198,257,686 214,118,301 9% 8% 8% 8% Development & Fisheries Health Services 172,826,372 145,461,763 114,791,763 114,791,763 0 196,517,174 212,238,548 10% 8% 8% 8% Education, Youth, Children, 284,099,411 285,694,257 163,208,573 163,208,573 0 319,977,568 345,575,774 16% 13% 13% 13% Culture & Social Services Land, Housing & Physical 74,239,776 83,313,212 83,313,212 83,313,212 0 87,710,798 94,727,662 4% 4% 4% 4% Planning Public Works, Roads & 747,806,164 881,121,212 632,150,775 632,150,775 0 986,856,498 1,065,805,018 41% 41% 41% 41% Transport Water, Energy, 140,560,568 183,121,873 180,186,761 180,186,761 0 205,442,711 221,878,128 8% 9% 9% 9% Natural 23 | P a g e Resources & Environment Public Service & 10,269,204 28,969,636 28,969,636 28,969,636 0 32,445,992 35,041,672 1% 1% 1% 1% Administration County Public 0 0 0 0 0 0 0 0% 0% 0% 0% Service Board Office of the Governor and 0 0 0 0 0 0 0 0% 0% 0% 0% Deputy Governor Trade, Industrialization, Tourism, Wildlife 86,703,827 88,008,544 80,556,524 80,556,524 0 98,569,570 106,455,135 5% 4% 4% 4% & Cooperative Development Information, Communication 67,814,963 53,916,104 60,088,432 60,088,432 0 77,186,037 83,360,920 4% 3% 3% 3% & E- Government Kenya Devolution 27,177,381 27,177,381 Support Program GRAND TOTAL 1,814,483,084 2,089,599,757 1,697,846,283 1,725,023,664 27,177,381 2,385,151,730 2,575,963,869 100% 100% 100% 100% 24 | P a g e 6.0 MEDIUM-TERM EXPENDITURE FRAMEWORK 6.1 overview 36. This chapter provides the details for resource envelope and spending priorities of the county government. It also describes the sectoral spending priority programmes and project for the remaining MTEF period. 6.2 Resource Envelope and Allocation Criteria 37. Financial Year 2016/2017 will realize a slightly increased county revenue due release of conditional grants for road works and health facilities. The estimated revenue for the fiscal year 2016/2017 is Kshs 5,583,632,619 which reflects an increase of Kshs 502,568,582 from current revenue estimate of Kshs 5,081,064,037. These fund will utilized to meet both recurrent and development expenditure in a ratio of 70% and 30% respectively. The stated estimated revenue for the current financial period excludes unspent balances for the financial year 2014/2015. 38. The table below provides a summary of all expected sources of revenue and the amounts: - Source of revenue Estimated amount Ratio % Equitable share 4,861,021,578 87.7 Own revenue 345,000,000 6 FIF allocation 175,350,000 3 Conditional grants - Fuel levy 74,689,564 1 Conditional grant - User fees revenue forgone 18,313,556 0 Conditional grant, Free maternity health care 89,327,921 2 Danida Health sector programme support III 19,930,000 0.3 Sub total 5,583,632,619 100 25 | P a g e Graphical Presentation Equitable share 5,000,000,000 Own revenue 4,500,000,000 4,000,000,000 FIF allocation 3,500,000,000 3,000,000,000 Conditional grants - Fuel 2,500,000,000 levy 2,000,000,000 1,500,000,000 Conditional grant - User fees revenue forgone 1,000,000,000 500,000,000 Conditional grant, Free 0 maternity health care Danida Health sector Source of Revenue programme support III 6.3 Overall Spending Priorities 39. The 2016/2017 Annual Development Plan spells out priority activities, projects and programmes to be undertaken by the various departments during the plan period. This is key in terms of informing allocation of resources to various sectors, projects and programmes. 6.4 Medium- Term Expenditure Baseline Ceilings 40. The baseline estimates reflects the current departmental spending levels in sector programmes. In the recurrent expenditure category, non-discretionary expenditures take first charge and includes payment of statutory obligations such salaries, pension, NHIF and NSSF. These expenditures are projected to account for about 35 percent of the expected total revenue receipts as earlier indicated. On-going projects: emphasis is given to completion of on-going projects and in particular infrastructure projects and other projects with high impact on poverty reduction and equity, employment and wealth creation. 26 | P a g e Strategic policy interventions: priority is also given to policy interventions covering the entire county, social equity and environmental conservation and priorities of the county government 27 | P a g e 6.5 Sector/Departmental Priorities 6.5.1 Public Works, Roads and Transport 41. The department is among other devolved units of the County Government of Kericho, it is made up of three sections: Roads, Public works and Transport, it devolved function is mainly to promote welfare services amongst the people. The Department is guided by among other policy instruments, departmental development plan, county medium plan, Constitution of Kenya 2010, Governor’s manifesto and county integrated development plan (CIDP 2013- 2017) that are developed by Kericho County Government as a blue print for development of the county. The department after the transition, inherited most of the defunct local authorities functions. 42. The department under the roads sector has also acquired more heavy earth moving machines like tippers and excavators though more are needed since most of the equipment from the former authorities are old, may require repairs that are expensive and maybe inefficient. 1.1. Sector Vision and Mission 43. The vision of the sector is “A World class provider of cost-effective physical infrastructure facilities and services”. The mission is ―To provide efficient, affordable and reliable infrastructure for sustainable economic growth and development through construction, modernization, rehabilitation and effective management of all infrastructure facilities‖ FISCAL PERFORMANCE FOR FY 2014/15 44. The department executed several gravel road projects, Buildings and drainage structures, despite several challenges that would be listed later in this submission. The total development budget was Kshs. 738million. KShs.106,568,775 was spent on in-house projects, whereas 28 | P a g e KShs.579,137,657 was used on contracted projects. There are other costs incurred as pending bills carried forward from previous years. 45. A total number of 34earth roads all summing to 115.72 km were procured in the first quarter, these roads have been successfully evaluated and awarded to the contractors. It should be noted challenges facing procurement of these projects were earlier encountered despite documentation being done on time. Some of the challenges faced in implementation of the plans are listed later in this submission. 46. Considerations were duly made to the special groups like the Women, The Youth and The Disable, these contractors have been awarded the contracts and most of them have started the works. The numbers of projects to the Special groups that have been awarded are 12NO Road projects, the remaining lot of the projects have been awarded to general contractors. 47. The department has managed to roll out 118 roads for construction. The tendering process for the road projects is in progress. The department is currently preparing to do evaluation process for the roads. It is expected that the award and commencement of the works will be done by mid-February 2015. Completion of the remaining works 48. The remaining works from the last financial year are on completion. The department is doing its level best to complete the remaining projects in the current financial year. Emergency works 49. The department in implementation of budget and work plan, has made arrangements to execute works that required immediate attention to be rehabilitated on emergency basis. Several of these works occurred after the short rains that swept away the road drainage structures and damaged the roads. Some of the works that were done were done are listed below. Some 29 | P a g e projects that were done in quarter one have spilled over to quarter two, some of these projects may have in one way delayed in execution. In-house works 50. The department has acquired plants and machinery so as to execute some works quickly without long procurement processes. In this financial year, more machinery have been hired so as to meet the rising demand and increased amount of works. It has however managed to ensure that the projects spread throughout the county, and that all citizens are serve equally. 51. The department with the help of the county assembly has successfully drafted the transport and Roads policy and has now been enacted to be law, the policy has not been in place hence the move is expected to strengthen service delivery and improve revenue collection. The policy making exercise involved the department’s executive as the team leader, the members of the county assembly roads committee, the legal officers and the technical team from the department. Mechanical sector 52. The sector is under the department of Public Works, Roads and Transport, it controls and facilitate maintenance, repair and service vehicles that belong to the various Departments of Kericho County Government. The following are some of the details captured on the complete rehabilitation maintenances and repairs of the plants in the first quarter. Challenges i. Supervision tools-this challenge has spilled over to this quarter. Inadequate inspection tools and equipment like inspection vehicles and record keeping tools, the sector needs well equipped offices and office equipment, in addition survey equipment are required to capture field data and precise surveying for setting out. The department requires surveyors to be assigned to do specific specialized works. 30 | P a g e ii. Quality workmanship-The department plays a key role in the inspection and supervision of all the structural and civil works being executed in the county since it has qualified personnel and resources. It is therefore a responsible for quality work and workmanships that is achieved through proper supervision of works, in contrary, the department on several occasions has not been involved in supervision of building projects and development projects related to our functions e.g. Buildings in main centers that are being constructed without proper approval, supervision and monitoring of use of quality materials for construction. It should also be noted that other department continue to execute civil works without proper consultations hence poor quality of works leading to possible collapse of structures. iii. Unpredictable weather conditions-unforeseen heavy rains that affects the implementation of the planned projects. It means that constructions activities would be seasonal. 2016/2017 PROPOSED PROJECTS PROGRAM: INFRASTRUCTURE, ROADS AND TRANSPORT - DEVELOPMENT VOTE SUB- PROGRAM-ROAD REHABILITATION OUTCOME(S):Properly designed road infrastructure and improved accessibility of county roads SUB- OBJECTIV OUTPUT TARGET DESCRIPT FY2014 FY2015/ Target PROGRA ESTIMAT PROGRAM ES S ION OF /15 16 2016/1 M ED COST ACTIVITIE 7 S Construction of To open up -Inspection -Site Progress Constructio 300KM 450KMs 520K 020201 roads and bridges all rural team for Inspection n of bridges s Ms 730,121,873 roads quality reports and opening assurance of roads To construct -Needs -Number of sites Constructio bridges identified identified in n of bridges across all Meetings and opening bridges of roads Projects -Adverts on 300KM 400KMs 450K tendered Media, tender s Ms and meeting minutes awarded & number awarded Design & -Designs & Designs Designs Design execute the plans made made for s made Roads for 400KMs for projects 300KM 450K Network s Ms 31 | P a g e and Bill of Quantities Copies of design plans -number of Graveled road with progress photos Rehabilitation of - To - -Site Progress - - - 020202 - roads and maintain the Inspection Inspection Bridges Gravel roads team for reports quality assurance Roads -Rural, Make -Accessibility to 020203 15,000,000 development, Urban& County all Areas Roads routine Roads within roads all- maintenance with Market weather acquisition of Centers roads Equipment -Sufficient - -Tender Trucks and Equipment Documents, Equipment to assist in Invoices, LSO constructio n and maintenanc e Development of Accessibility The county -Feasibility 020401 60,000,000 Air transport to Air linked to study report infrastructure Transport the Outside (Feasibility study towards Upgrading of Kerenga Airstrip) Design of roads Targeted no. Existing -linkages across 020204 56,000,000 and bridges with of Roads Roads streams &rivers Inventory &Bridges to connected Surveys be Surveyed across & designed streams and rivers -Data collected after the Inventory Survey Roads Transport Targeted Safety Roads repaired 020303 and Safety projects Improved 20,000,000. done 00 Emergency works Done TOTALS 881,121,873 DEVELOPMENT Kshs. 6.5.2 Agriculture, Livestock development and Fisheries 53. The sector is critical to economic growth, employment and poverty reduction, contributing about 70% of employment. The challenges facing the sector include high cost of agricultural inputs such as fertilizer, agrochemicals, drugs, animal feeds and poor infrastructure. Other challenges facing the are poor planning, inadequate warning systems, low value addition and 32 | P a g e competitiveness and low access to financial services as well access to affordable credit. 54. Major activities undertaken in 2014/15 include; Project/Programme Objectives Targets (No. of Description of Output(s) Project and name Benefiaries) activities Programme Cost Soin Agricultural Training To improve farmers 600 Construction of At least 600 20 m Centre Modernization access to new water pan, Fencing farmers trained on Project agricultural skills and of ATC farm and modern technologies through Kitchen/dining Hall agricultural skills provision of training construction. facilities Agricultural To improve the Give a new Renovation of offices Office renovation 2 m Mechanization & efficiency and facelift to the and construction of and rehabilitation Technology Development effectiveness in land working a road. of access road to Project preparation and water environment the office conservation structures for increased agricultural yields Horticulture Development To increase incomes 2,000 Supply of 30,000 At least 2,000 4.6 m Support project and reduce poverty passion fruit farmers adopt and among the poor rural seedlings, 16,000 expand mangoes, households bananas, avocado, bananas, avocado, and mango and passion fruit. seedlings. Sweet potato packhouse Value addition Construction 4 m Roret Pineapple plant Value addition Construction 11 m Tick control Dip rehabilitation 4,000 Countywide(all Sub 37 dips 11 m Counties) rehabilitated Supply of acaricides to 12,600 Countywide(all Sub 9,590lt bought and 11 m dips Counties) supplied to various communal dips Disease and pest control Vaccinations 24,000 Countywide(all Sub FMD 50,000 4.59 m Counties) Rabies 7,000 Stray dog destruction 10,000 Countywide(all Sub 247 Dogs/cats 0.3 m Counties) killed Meat inspectorate Refurbishment of 36,000 Countywide(all Sub 6 slaughter houses 4.8 m slaughter houses Counties) Livestock breeding Procurement of bull 74,000 Countywide(all Sub Bull 18,548 doses 8.26 m semen and liquid Counties) LN2 9,000lt nitrogen 55. The major activities for the current financial year 2015/2016 include; Project/Programme Objectives Targets (No. of Description of Expected name Benefiaries) activities Output(s) Industrial Crops To improve 1,600 Construction of coffee Increase area and Development project competitiveness of the pulping station at Productivity of industrial crops sub Kipkelion west, coffee, sugarcane sector by promoting Supply of coffee and pyrethrum by increased production, seedlings and at least 20% processing and materials for coffee marketing nursery establishment is under procurement process, Horticulture To increase incomes 8,000 Supply of 10,000 At least 8,000 33 | P a g e Development Support and reduce poverty passion fruit farmers adopt and project among the poor rural seedlings,10,000 expand irish households bananas, avocado, potato, banana, and mango seedlings avocado, mango, to passion fruit, Materials for fruit tomato, pineapple tree nursery production, value establishment is addition and under procurement marketing process, GH, vehicle, computers Food Security To increase nutritional 20,000 Purchase of sweet At least 20,000 Enhancement Project security by improving potato vines (450,000 farmers adopt and the quality and pieces) expand sweet quantity of food Seed potatoes (400 potato, finger products consumed bags var. millet, sorghum within the county Desiree/Dutch Robin) and pumpkin and production All Grains/legume (maize, beans, sorghum & millets) seeds for demonstration in all Sub Counties are under procurement process. Smallholder Irrigation To open up the 2,000 Supply, installation At least 2,000 ha Development Project marginal areas of the and testing of put under intensive (SIDP) county for maximum irrigation pipeline and production of high exploitation of the construction of 3 value crops existing agricultural tanks (Makiche potential project) are under procurement process. Agricultural To improve the 200 Procurement of farm To equip the Mechanization & efficiency and tractor and farm station with new Technology Development effectiveness in land implements is machinery (baler, Project preparation and water ongoing. mower, rake, conservation plough and a trac structures for tor) increased agricultural yields 56. In the medium term, the sector will focus its efforts on promoting an innovative, commercially oriented and modern agriculture by transforming key institutions in the sector, increasing productivity, and promoting better land use policies. Research and development plays a critical role in terms of providing farmers with modern farming technologies that include use of high yield varieties of tea, coffee, maize seeds, potatoes, and control of livestock diseases among others. This will help increase yields; reduce food poverty and hence improve overall quality of life in the county. 34 | P a g e 57. The major activities in the remaining MTEF period include; Financial Year - 2016/17 Name of Priority Projects/Programme Location Target/Activity Description Objective 1. Horticulture Production, Processing and Countywide (i)Sixty (60) demo plots established and (i)To increase incomes and reduce poverty Marketing Project maintained to train farmers in commercial among the poor rural households for which horticulture. horticultural crops are important sources of livelihood and; (ii)Sixty (60) field days conducted successfully. (ii)Improve the health and welfare of (iii)Seven (7) “ward-branded” products developed inhabitants of Kericho County by improving and commercialized the quality and increasing the quantity of (Avocado, Pineapple, Irish potato, Banana, Tomato, horticultural produce and products African Leafy Vegetables-ALV and Passion fruit). consumed within the county. (iv) 8,000 farmers benefit directly through regular trainings, field days and input supply centres. (v) 8,000 farmers adopt and/or expand production, value addition and marketing of selected horticulture crops. (vi)1,000 farmers adopt smallholder shed net and green house horticulture production; (vii)Value added horticulture products introduced and commercialized through structured market linkages 2. Kericho County Food Security Countywide (i) 20,000 farmers benefit directly through (i)To ensure adoption by the county Enhancement Project regularized Farmer Field School trainings, food inhabitants of other food crops (e.g. Millet, 35 | P a g e crop demonstrations and planting material Sorghum, Sweet potato, Pumpkins etc) that supplies. can be conveniently grown on small parcels of land; (ii) 20,000 farmers adopt and/or expand Irish (ii)To increase incomes and reduce food potato, Sweet Potato, Finger Millet, Sorghum and poverty among the poor rural households Pumpkin production, through production of diverse food crops and; (iii) 2,000 farmers get linked to better market (iii)Increase the nutritional security of outlets for their farm produce; inhabitants by improving the quality and increasing the quantity of food products (iv)Production of at least 3 „new‟ food crops consumed within the county. improved by 20% from the current baseline. 3. Smallholder Irrigation Development Countywide (i) 2,000 hectares of land put under intensive (i)To introduce commercial production of Project (SIDP) production of high value crops. high value crops under irrigated farming [ Soin /Ainamoi for high end markets; /Kipkelion dry Belt] (ii)Six (6) demos established and maintained to train farmers on commercial horticulture (ii)To open up the marginal areas of the production under irrigated farming system. county for maximum exploitation of the existing agricultural potential (iii) 4,000 farmers benefit directly through regular trainings, field days and demonstration plots. (iv) 2,000 new farmers adopt and/or expand commercial production of high value horticultural crops. (v) 500 farmers adopt smallholder shed net and green house horticulture production; 4. Kericho Industrial Crops Development Soin, Ainamoi, (i) Land under coffee, Sugarcane and pyrethrum (i)To improve competitiveness of the Programme Kipkelion West, increased by at least 20%. industrial crops sub-sector by promoting 36 | P a g e Kipkelion East increased production, processing and (ii) Productivity of industrial crops e.g. Coffee, marketing Pyrethrum, Sugarcane and Tea increased by 20%. (iii) Alternative market outlets established through promotion of product diversification 5. Livestock Breeding Programme Countywide (i) Sixty (60) private AI service providers trained (i)To improve livestock productivity and and licensed to complement County Government thereby increase income and reduce intervention. poverty among the poor rural households in (ii) Breeding diseases reduced by 50% through Kericho County. reliable, disease free and well performing insemination system. (ii)Improve the genetic make-up of the (iii)Mortality rate of young stock reduced by 40%. livestock resources in the county. (iv)Reliable database on existing genetic material established for planning and management of the livestock sector. (v)At least 50% of livestock farmers benefit directly through regular AI services and back-up trainings. (vi)Improved productivity in key livestock outputs e.g. average milk yield by at least 50% above the current baseline of 5 litres per cow per day. (vii)In-breeding reduced by 60% among small- scale farmers in the county. 6. Livestock Pests and Diseases Control Countywide (i)Dip management revolving fund established in (i)To improve livestock productivity and Programme at least 80% of all the dips in the county. thereby increase income and reduce poverty among the poor rural households in (ii) Sixty (60) private Animal Health Service Kericho County; 37 | P a g e Providers trained and registered to complement the (ii)To increase the health and welfare of public services provided by the county. inhabitants of Kericho County by improving (iii) Incidences of pest and diseases reduced by at the quality of livestock products consumed; least 50% through reliable and well performing pest and disease control system. (iii) To contribute to the penetration and (iv)Livestock mortality rate from pests & diseases competitiveness of Kericho County livestock reduced by 40%. products in both regional and international (v)At least 50% of livestock farmers benefit directly markets. through regular pest & disease control services and back-up trainings. (vi)Improved productivity in key livestock outputs e.g. average milk yield by at least 50% above the current baseline of 5 litres per cow per day. (vii)Trans-boundary pest and disease incidences reduced by at least 80% through sustained surveillance. (viii)Reduction of occurrence of zoonotic diseases e.g. Rabies, RVF, Anthrax by 40%. 7. Livestock Feeds and Products Processing Countywide (i)To improve access to high quality Project (i)Raise productivity of livestock enterprises such livestock feeds through farm level as dairy cows by at least 100%. The current per processing of feeds and supplements. capita milk yield is averaging 5 litres per cow. This will be raised to at least 10 litres. (ii)To increase market penetration and (ii)The county average laying percentage for grade competitiveness of livestock-related chicken is estimated to be about 50%. The project products through processing and other intends to raise this to about 80% through value adding techniques. improved availability of quality feeds at the small- scale farmer level. (iii)The project will increase the level of milk, hides and Skins processing by 20% from the 38 | P a g e current status. (iv) Quality of meat improved by 40% through regular inspection of abattoirs and Flaying hygienic conditions. 8. Countywide Fish Farming and Utilization Project (i)Sixty (60) demo ponds established and (i)To increase incomes and reduce poverty maintained to train farmers in commercial fish among the poor rural households in farming. Kericho County and; (ii)Sixty (60) field days conducted successfully. (iii)At least 3,000 farmers benefit directly through (ii)Increase the health and welfare of regular trainings, field days and input supply inhabitants of Kericho County by improving centres. the quality and increasing the quantity of (iv)At least 3,000 farmers adopt and/or upscale cholesterol free animal protein consumed. fish production, value addition and marketing. (v)Value added fish products produced and commercialized through structured market linkages; (vi)At least 20 on-farm fish feed formulation units established to “manufacture” feeds for easy access by farmers. 9. Agricultural Mechanization & Technology Countywide (i)One (1) new earthmover/Dozer acquired for (i) To improve the efficiency and Development Programme land development services effectiveness in land preparation for (ii) Equipment/Machinery Workshop improved to increased agricultural yields. provide effective repair services (iii) Revenue collection improved by at least 30% (ii) To increase labour productivity on the above the current level. farms by promoting energy-efficient farm (iv) Mechanized land preparation increased by tools & equipment. 20% (v) Pilot local fabrication of farm tools initiated (iii) To facilitate development of irrigation and land development infrastructures for commercial agricultural production. 39 | P a g e 10. Soin/Sigowet Soin Agricultural Training Centre (i) Revenue collection increased by at least 50% (i)To improve farmers‟ access to new Modernization Project above the current level. agricultural Skills and technologies through (ii) Number of “out-bound” seminars and provision of training facilities. trainings reduced by 30%. (iii) At least 10 adaptation trials for new (ii) To provide a facility for Government agricultural technologies conducted. staff trainings and workshops. (iv)At least 1,000 farmers trained on modern agricultural skills. (iii) To provide source for revenue to the (v) 10 crop demonstration established for County Government through hiring of technology transfer training facilities to the private sector. (vi) 4 Livestock and 2 fish farming demonstrations established 40 | P a g e 6.5.3 Water, Environment, Energy, Forestry and Natural Resources 58. The sector plays a very important role in providing a clean, secure and sustainable environment, in addition to developing natural resource that form critical linkage with other sectors of the economy. Prospects for the county’s long term growth are therefore dependent on effective management of these resources. 59. The sector objective is to promote, conserve and protect the environment and improve access to water and enhance sustainable use of Natural resources. The sector plays a key role in ensuring that every citizen has access to portable water in a clean and secure environment. Efficient use of natural resources is central to economic social and cultural development. Due to the finite nature of these resources they should be conserved and utilized in a sustainable manner. The County shall undertake strategies aimed at conserving the environment and natural resources and also ensure provision of reliable and affordable energy through exploration of environmentally friendly and renewable energy sources; and rehabilitation and protection of water resources. 60. In the financial year 2014/15 the department undertook water tank construction projects, dam rehabilitation projects installation and distribution of water pipes, masonry break pressure tanks across the county amounting to Kshs. 70.4 Million; 61. In the current financial year 2015/16 the department has been able to pay 10million to settle bills at Bomet Water Company which supplies water to Tililbei Water Company. Solid waste management projects have also been completed at Ngoina, Londiani, Kipkelion town, Chepsir and Roret market centers. 41 | P a g e 62. Over the MTEF period the sector aims to achieve expansion of water coverage and sewerage facilities; scaling up water storage to improve water security; conservation and management of catchment areas; mitigation and adaptation measures on climate change; enforcement of sector laws and regulations; mineral mapping and exploration. 63. To achieve these goals, the department has been allocated a total budget of Kshs 272 Million equivalent to 5% of total expenditure for the FY 2016/17 to undertake these activities. Development Expenditure set aside amounts to Kshs. 183 Million. 64. Some of the major activities in the 2016/17 MTEF period include; increasing tree cover, water projects and supply, drilling of boreholes, power supply, hydro power generation plant and solid waste management. 6.5.4 Trade, Industrialization, Tourism, Wildlife and Cooperative Management 65. The Sector plays a vital role in creating an enabling environment for trade development; promotion of industrial development and investment, promotion of sustainable tourism and marketing; preservation of national heritage and culture. 66. To facilitate sustainable trade, investment and tourism, vibrant industrial base, preservation of national heritage and culture for sustainable development, the sector will, in the medium term, focus on undertaking policy, legal and institutional reforms for the development of the sector; improving business environment for trade, tourism and investment; supporting entrepreneurship, industrial development, reviving of dormant cooperatives and SACCOs research, and innovation. 42 | P a g e 67. In the financial year 2014/15 the department was able to construct market sheds across the county to a tune of Kshs. 20 million. The Kericho enterprise fund used to help start up income generating activities across the county was also distributed. A total of Kshs 75 million from the fund was distributed to various individuals, women and youth groups. The only challenge in distributing the amounts was because of the high number of applications received across the county. Conservation and Improvement of Tourist Sites at Fort Ternan, Londiani, Ainamoi and Chebulu was also factored in the budget. Fort tenan Museum was completed at a tune of kshs1.7 million. Revival of dormant cooperatives was also undertaken to the tune of Kshs1.6 million. DETAILS OF SECTOR PERFORMANCE IN THE CURRENT FINANCIAL YEAR (2015/2016). No Project Section Project Name Project Activity ESTIMATE . Location 1 Trade Ainamoi Ainamoi market Construction of market shed 1,122,177 2 Trade Cheboin Cheborge market purchase of land & construction 2,000,000 3 Trade Chemosot Chemosot Market Construction of market shed 1,122,177 4 Trade Cheplanget Butuik market Construction of market shed 1,122,177 5 Trade Cheplanget Kibwastuyo Market Construction of Toilet Block Type B 893,550 6 Trade Chepseon Chesinende market Chainlink Fence 1,232,280 7 Trade Chepseon Chesinende market Construction of market shed 1,122,177 8 Trade Chepseon Chesinende market Construction of Toilet Block Type A 1,436,274 9 Trade Chilchila Fort Ternan market Chainlink Fence 934,290 10 Trade Chilchila Fort Ternan market Construction of market shed 1,122,177 11 Trade Chilchila Fort Ternan market Construction of Toilet Block Type A 1,436,274 12 Trade Kabianga Chebirirbei market Chainlink Fence 1,500,000 13 Trade Kamasian Kamasian market purchase of land & construction 2,000,000 14 Trade Kapkatet Kapkatet market Construction of market shed 1,122,177 Construction of market shed 15 Trade Kapkatet Kapkatet market 1,122,177 16 Trade Kapkatet Kapkatet market Construction of Toilet Block Type A 1,436,274 17 Trade Kapkelek Kapkelek market Excavation and Marrum 500,000 43 | P a g e No Project Section Project Name Project Activity ESTIMATE . Location 18 Trade Kapkugerwet Brooke market Construction of market shed 1,122,177 19 Trade Kaplelartet Sondu market clothe Construction of Toilet Block Type A 1,436,274 20 Trade Kaplelartet Sondu market veges Construction of Toilet Block Type A 988,470 21 Trade Kapsaos Kapsaos market Chainlink Fence 1,965,957 22 Trade Kapsoit Kapsoit market Chainlink Fencing/ masonry wall 1,826,307 23 Trade Kapsuser Kapsuser market Chainlink Fencing/ masonry wall 2,000,000 24 Trade Kapsuser Kapsuser market Construction of market shed 1,122,177 Kedowa/Kim 25 Trade Kedowa market Chainlink Fence ugul 1,600,000 Kedowa/Kim 26 Trade Londiani market Construction of market shed ugul 1,122,177 27 Trade Kericho Town Kericho Town market Renovation of main Market 2,500,000 28 Trade Kipkelion Barsiele market purchase of land & construction 2,000,000 29 Trade Kisiara Roret market purchase of land & construction - 30 Trade Kunyak Tuiyo market Chainlink Fence 1,700,000 31 Trade Kunyak Kotetni market Construction of market shed 1,122,177 32 Trade Litein Litein market Completion of main Market 3,000,000 33 Trade Londiani Jagoror market Construction of market shed 1,122,177 34 Trade Londiani Jagoror market purchase of land & construction 2,000,000 35 Trade Sigowet Sigowet market purchase of land & construction 2,000,000 36 Trade Soin Kipsitet market Chainlink Fence 1,484,000 37 Trade Soliat Kaitui market Chainlink Fence 1,000,000 38 Trade Soliat Kapsorok market Chainlink Fence 1,600,000 39 Trade Soliat Kapsorok market Construction of Toilet Block Type C 502,603 Sorget/ 40 Trade Illoti market Construction of market shed Tendeno 1,122,177 Sorget/ 41 Trade Illoti market Construction of Toilet Block Type B Tendeno 893,550 42 Trade Tebesonik Kibugat market Construction of market shed 1,122,177 43 Trade Tebesonik Kibugat market Construction of Toilet Block Type B 893,550 44 Trade Waldai Sosiot market Construction of market shed + Toilet completion 1,200,000 45 Trade Cheboin Cheborge market COMPLETION OF MARKET SHED SLAB - 46 Trade Kabianga Chebirirbei market COMPLETION OF MARKET SHED SLAB - 47 Trade kapsaos Kapsaos market COMPLETION OF MARKET SHED SLAB - 48 Trade Kapsoit Kapsoit market COMPLETION OF MARKET SHED SLAB - Tendeno/Sor 49 Trade Kiamwingi II market COMPLETION OF MARKET SHED SLAB get - 44 | P a g e No Project Section Project Name Project Activity ESTIMATE . Location 50 Trade Waldai Sosiot market COMPLETION OF MARKET SHED SLAB - SUB-TOTAL(Kshs.) 59,670,131 Kipkelion Ruskebee FCS Ltd Construction of cooling plant House 1 Cooperatives East 2,376,371 Kipkelion Kichawir FCS Ltd Construction of Coffee pulper house 2 Cooperatives East 800,000 Kipkelion Momoniat FCS Completion of cooling plant House 3 Cooperatives East 350,000 Kipkelion Kipsinende FCS Ltd Construction of Coffee bag store 4 Cooperatives West 911,168 Ainamoi Mosop FCS Ltd 5 Cooperatives Construction of Office block 1,327,792 Belgut Sosiot FCS ltd 6 Cooperatives 45 - litre aluminium milk cans 30 pieces 327,792 Belgut Kaplemeiywet FCS ltd 7 Cooperatives Construction of Office block 1,322,792 8 Cooperatives BURETI NGOINO FCS Two - Disc Coffee Pulping Machine closed with pre-grader, Re-passer, Rotary feeder, stone separator, Low speed diesel engine with accessories to run the machine. 1,000,000 Kipkelion Kasheen Farmers 1.ONE Two machines of One disc coffee pulper 9 Cooperatives West Cooperative Society C/W V-Pulley, Cherry Hopper,stand frame, hand pulpingand motorized. 360,000 2. Construction of Coffee pulper house 800,000 Kipkelion 1.One disc coffee pulper C/W V-Pulley, Cherry 10 Cooperatives West Saoset FCS Hopper, Stand frame, hand pulping and motorized. 180,000 2.Construction of Coffee pulpier house 800,000 Kipkelion Sereng Farmers’ One disc coffee pulpier C/W V-Pulley, Cherry 11 Cooperatives West Cooperative Society Hopper, Stand frame, hand pulping and motorized. 180,000 Kipkelion Subukia Farmers’ 12 Cooperatives East Cooperative Society 45 - liter aluminum milk cans 50 pieces 350,000 13 Cooperatives BURETI CHEBORGE FCS 45 - liter aluminum milk cans 50 pieces 350,000 14 Cooperatives BURETI CHEPLANGET FCS Construction of Office block 1,000,000 14 Cooperatives AINAMOI BUCHENGE FCS purchase of land & construction 2,050,000 One disc coffee pulper C/W V-Pulley, Cherry 15 Cooperatives AINAMOI AINABTANY FCS Hopper, stand frame, hand pulping and motorized. 180,000 KIPKELION 25 KVA * 3 Phase , Standby diesel Generetor , 16 Cooperatives WEST SOYMINGIN FCS water cooled 600,000 KIPKELION 1. One disc coffee pulper C/W V-Pulley, Cherry 17 Cooperatives WEST KIMOLOGIT FCS Hopper, stand frame, hand pulping and motorized. 180,000 2.Construction of Coffee pulper house 800,000 18 Cooperatives Soin/Sigowet Chepkemel FCS Construction of Office block 1,280,000 19 Cooperatives Soin/Sigowet Kosiachtany FCS Construction of Office block 1,327,792 Construction of Coffee bag store KIPkelion 20 Cooperatives west Menet FCS 911,168 KIPKELION One disc coffee pulper C/W V-Pulley, Cherry 21 Cooperatives WEST Kunyak Fcs/ Kimorio Hopper, 180,000 45 | P a g e No Project Section Project Name Project Activity ESTIMATE . Location AINAMOI TORSOGEK FCS Construction of Coffee bag store 22 Cooperatives 911,168 KIPKELION 23 Cooperatives EAST CHESINENDE FCS Construction of Office block 1,280,000 SUB-TOTAL(Kshs.) 19,764,875 Section Ward Project Location Project 2015/16 1 Tourism Ainamoi Reresik Caves Construction of office Block 1,000,000 2 Tourism Ainamoi Reresik Caves purchase of land & construction 2,629,250 3 Tourism Chilchila Fort Ternan Museum Chainlink Fence 2,258,500 4 Tourism Chilchila Fort Ternan Museum EXHIBITION HALL 0 5 Tourism Ainamoi Bagao Caves purchase of land & construction 0 6 Tourism Ainamoi Bagao Caves Construction of Toilet Block Type A 0 7 Tourism Kaplelartet Chebulu Conservancy Construction of Tourism Facilities 5,629,250 8 Tourism Londiani Tulwap Psigis Construction of Tourism Facilities 3,000,000 SUB-TOTAL(Kshs.) 14,517,000 68. Major Activities proposed in the remaining MTEF period include; Activity Indicator Unit Baseline 2016/2017 Agency Responsible Value for Reporting Enhanced Tourism Tourism Earnings M/Kshs. - Tourism Division Tourist attraction sites developed No. 4 4 Tourism Division Preserved Heritage and Historic sites and monuments developed No. 4 1 Tourism Division Culture Improved Sports Sports tourist arrivals No. - - Tourism Division Tourism Enhanced Trade Market stalls constructed for traders No. 400 30 Trade Division Investment and Enterprise Development Loans issued to boost working capital for M/Kshs. 400 Million 50 million Trade Division MSMEs Enhanced Growth and New Cooperatives Societies registered No. - 4 Cooperatives Division Development of Cooperatives Dormant Cooperatives revived No. 32 10 Cooperatives Division Sacco’s offering financial service No. - 20 Cooperatives Division Trade fairs and shows carried out. No. - 1 Cooperatives Division Increased Industrial Industrial Parks established No. 30 - Industrialization Development and Division Investments 69. To achieve the above objectives, the ceiling allocated to the Sector in the budget for FY2016/17 to undertake these programmes amounts to Kshs. 181 Million, which is equivalent to 3% of total departmental expenditures. 46 | P a g e 6.5.5 Health Sector 70. The sector mandate is to promote and participate in the provision of integrated and high quality curative, preventive and rehabilitative services that is equitable, responsive, accessible and accountable to county residents. The sector faces a number of challenges including inadequate infrastructure, shortage of qualified health personnel and medicines and medical supplies. In the medium term the sector will seek to address these challenges through continued investment in training of health professionals, medical services healthy and sanitation infrastructure and improvement in the working condition of the medical practitioners. 71. The department in the financial year 2014/2015 managed to renovate and refurbish a total of 112 facilities. Most of the level 2 and level 3 facilities were supplied with medical equipment worth Kshs. 52,823,298. The main challenge faced was late disbursement of funds to the facilities. Under Recurrent expenditure, for FY 2016-17, the following will be key expenditure areas: a) Health workers pay for the services they render at level 2, 3 and 4 health facilities will amount to Kshs. 954,039,393. This caters for automatic annual salary increments as well as recruitment of additional staff. Without staff, the sector cannot perform its core mandate. b) Purchase of essential medical commodities will stand at Kshs. 351,196,284. These are medical drugs, non-pharmaceuticals, lab reagents, X-ray supplies, safety gear, food and rations for patients, chemicals and medical gases, amongst others. These are essential items for healthcare delivery. c) Trainings : Various trainings at an estimated cost of Kshs. 10,245,798 ;will be rolled out in the FY 2016-17 for the health staff in the current staff establishment, ranging from short courses to long term courses both locally and internationally. There is also need to train the health 47 | P a g e facility management committees on the basics of overseeing management at level 2 and 3. d) Other operating expenses: This encompasses cost areas such as utilities (electricity, water ),maintenance of buildings, maintenance of plant, machinery and equipment, civil works, maintenance of vehicles, fuel costs, stationeries, daily subsistence costs, travel and accommodation costs, contracted services such as cleaning and guarding, amongst others. The projected cost under this item will be Kshs. 83,991,772. 72. Under the Development vote, estimated at Kshs. 175,461,763, the following priority areas shall be focused on: i) Kericho County Hospital – Replacement of carcinogenic asbestos roofs at Kshs. 15M Completion and furnishing of the CCC and administration block at Ksh.11M Facility facelift at Kshs. 2M ii) Kapkatet Hospital – Expansion of Water supply works at Kshs. 7M to alleviate frequent water shortage and disconnection Equipping of the new casualty wing at Ksh.5M Facility facelift at Kshs. 2M iii) Londiani Sub County Hospital Equipping of the newly constructed modern mortuary at Ksh.12M iv) Fort-Tenan Sub County Hospital Equipping of operating theatre at Ksh.9M v) Roret Sub County Hospital Equipping of operating theatre at Ksh.9M vi) Completion of level 2 and 3 health facility construction works at Kshs. 43.5M (1.5M per ward) vii) Equipping of level 2 and 3 health facilities with assorted medical equipment at a cost of Kshs. 27.4M 48 | P a g e viii) Purchase of one ambulance for out of the county referrals. This is estimated to cost Kshs. 7M 6.5.6 Education, Youth, Culture and Social Services 73. Human resource development is a key foundation for national and county socioeconomic transformation. The overall goals of the sector are to provide access to quality education, and training in an equitable manner at all levels, manpower development, employment creation and enterprise competitiveness. 74. The sectors main challenges include inadequate infrastructure and staffing, low ICT levels and low transition rates to tertiary institutions. In the medium term, the Sector’s priorities include: enhancing access, equity, quality and relevance of education at all levels. Institutionalizing human resource development within employment with emphasis on learning to deepen technological knowledge; strengthening linkages between industries and training/research institutions to promote demand driven training responsive to industry requirement and promote entrepreneurship development and competitiveness of Micro and Small Enterprises. 75. In the financial year 2014/15 the department was able to distribute bursary to the tune of Kshs 74million to various schools. A total of kshs90 million was also budgeted for and utilized in the completion of the existing ECDE centers. Upgrading and equipping existing youth polytechnics was also carried out to a tune of Kshs 10 million. 76. In the current financial year 2015/16 bursaries disbursed was kshs25 million by end of December 2015 out of the budgeted 150 Million in the current year. The table below summaries the current activities 77. 49 | P a g e ACTIVITY/PROGRAMME/ PROJECT 2015/16 Costs Procurement and Purchase of youth polytechnic training tools and equipment 9.6M CONSTRUCTION OF ECDE CLASSROOMS IN ECDE CENTERS 94M EDUCATION SCHLARSHIP BURSARY SCHEME 130M EMPLOYMENT OF 200 ECDE CARE TAKERS. 200 22M CONSTRUCTION OF YOUTH POLYTECHNIC CENTERS OF EXELLENCE IN 19.6M TECHNICAL AREAS EMPLOYMENT / COFIRMATION OF YOUTH POLYTECHNIC INSTRUCTOR UNDER 36 GIVEN EXTENSION OF THEIR CONTRACT. CONTRACT. 6.5M UPGRADING/ CONSTRUCTION OF KERICHO GREEN STADIUM. 3,569,411 CONSTRUCTION OF CULTURAL HERITAGE CENTER AT TULWAP KIPSIGIS. 3,500,000 CONDUCT THE SPORTS CHAMPIONSHIP 0N BALL GAMES, ATHLETICS, 12M CONDUCT A REGIONAL CULTURAL FESTIVALS AT THE COUNTY LEVEL. 1.4M STAFF TRAINING AND CABACITY BUILDING. 2M PROCURE AND PURCHASE ONE MOTOR VEHICLE FOR 4.3M YOUTH TRADE SHOWS, CABACITY BUILDING 1.4M MONITORING AND EVALUATION OF PROJECTA AND PROJECTS, 350,000 PROVIDE SUBSIDIZED YOUTH POLYTECHNIC TUITION FUND FOR THE 0 TRAINEES IN YOUTH POLYTECHNICS. PROCUREMENT AND PURCHASE OF TEACHING AND LEARNING MATERIALS 0 FOR THE ECDE CENTERS. 78. For the financial year 2016/17, Kshs. 511 Million has been set aside; this translates to 9% of the total expenditure. Bursaries in the 2016/17 period have been set aside at Kshs.102 Million which translates to 2% of total budget as required by the Bursaries Act. The table below summaries the proposed activities for 2016/17 ACTIVITY/PROGRAMME/ PROJECT 2016/17 Procurement and Purchase of youth polytechnic training tools and equipment 15M construction of ecde classrooms in ecde centers 87M education scholarship bursary scheme 108M Employment of 200 ecde care takers. 17M construction of youth polytechnic centers of excellence in technical areas 25M Employment / confirmation of youth polytechnic instructor under contract. 15 TO BE EMPLOYED. 4.5M Upgrading/ construction of Kericho green stadium. 15M Construction of cultural heritage center at tulwap kipsigis. 7M conduct the sports championship 0n ball games, athletics, 12M Conduct a regional cultural festivals at the county level. 1.4M Staff training and capacity building. 2.5M procure and purchase one motor vehicle for 4.3M youth trade shows, capacity building 1.6M monitoring and evaluation of projects 400,000 Provide subsidized youth polytechnic tuition fund for the trainees in youth 10M polytechnics. Procurement and purchase of teaching and learning materials for the ecde centers. 40M 50 | P a g e 6.5.7. Lands, Housing and Physical Planning 78. Part of the mandate of this department is to formulate and implement land policy, undertake physical planning, register land transactions, undertake land surveys and mapping, land adjudication, settlement, valuation and administration of state and trust land. 79. In the financial year 2014/15 the department carried out the following major projects S/NO DESCRIPTION LOCATION STATUS 1 Renovation of 22No. County residential houses in Moi Estate Moi estate Completed (Ainamoi sub-county) 2 Additional floor to County Headquarters- Office of the Governor County Completed Headquarters 3 Building works to Governor’s office extension County Ongoing Headquarters 4 Construction of Governor’s car park and driving way County Contract awarded but Headquarters to await completion of Governor’s annexe building 5 Security Fencing by use of precast concrete posts and chain Ainamoi Sub Proposed link complete with galvanized barbed wire county 6 Reroofing of all the previously asbestos roofed residential Ainamoi Sub 42 units Completed houses county 7 Repairs and renovations to transport office at County County Completed Headquarters Headquarters 8 Partitioning works to Deputy Governor’s Office & repairs to the County Completed executive Washroom Headquarters 9 Partitioning works to County procurement office County Completed Headquarters 10 Renovation works to department of LHPP building/Formerly Public works Ongoing Public works building Building 11 Painting Works to External walling at County Headquarters County Completed building Headquarters 80. In the current financial year the department is undertaking; S/NO DESCRIPTION LOCATION STATUS 1 Preparation of Local Physical Development Plan (Geoplan  Sondu Ongoing Consultants)  Kabianga  Londiani  Litein 2 Preparation of Local Physical Development Plan  Ainamoi Ongoing (Departmental Activity)  Kapkugerwet  Kapkatet  Kiptere  Fort Ternan 51 | P a g e 3 Completion of County Land Inventory and Registration The whole County Ongoing Project 81. Within the medium term, the sector's budget is expected to increase and its projected to 133.7 million by 2016/2017 financial. 82. The Department of Housing, Physical Planning and Lands will receive an allocation of 2 per cent. This is all to ensure that the Valuation Rolls and Spatial Plans of key towns are upgraded so as to generate more revenue in terms of Land Rents and rates. Major services/outputs to be provided in MTEF period 2016/17 – 2018/19 S/NO Project Name Project Objectives Description of Project Implementation Location Activities Cost status (for on- going projects) 1 Preparation of County spatial The whole To come up with a plan to guide Data collection 60 50% plan County development in the county. and Field survey. Million 2 Preparation of County Land All To increase revenue collected Data collection & 50 25% Valuation Rolls rateable from land rates; To assist in the validation of the Million land in process of plan approval existing major valuation roll, towns in Field survey. the sub counties 3 Completion of County Land Rateable To have a register of all land Secondary & 10 50% Inventory and Registration land in properties in the county; To Primary data Million Project (2014-15) the county assist in conflict resolution. collection, Field land survey. 4 Establishment of data Land & To digitise all infrastructure Purchase of the 20 Proposed Project infrastructure framework Physical data in the county for ease of required Million (GIS laboratory and studio Planning analysis; To ease update of data; equipment and for geo-information in the Office For easy transfer of data training of staff, county between departments data collection of all infrastructure, digitizing existing data 5 Routine maintenance of All major To renovate all the houses Identification of 20 Proposed Project Residential and office estates & owned by the county houses & offices Million buildings (Non Residential) offices to be renovated, across the Preparation of County bill of quantities, tendering and award of tenders 6 Urban beautification Kericho To improve the aesthetic value 5 Million Proposed Project programs (Landscape Designs town and of the towns; To enhance and models , Fountains, Litein organization of the town Monuments) town 52 | P a g e 7 Purchase of Lift Governor's To hasten movement Measurement of 10 Proposed Project office the area Million proposed for lift 8 Construction of ramps Kericho To ease movement for people Data collection 2 Million Proposed Project town with disability to establish C.B.D areas for installation 6.5.8 Public Service Management 83. The department is mandated to guide the county human capital in human resource policies provisions and guidelines both at the county headquarters and the devolved units down to the village level. 84. In the financial year 2014/2015 the department together with the county public service board was able to do a staff rationalization as required by the national government. The department was also able to procure a fire engine at a cost of 6.8 million which will be fabricated and help the available fire units to fight fire emergencies across the county. 85. In the current financial year the department is planning to construct two ward offices at Tendeno and Chilchila wards to promote service delivery to the people of Kericho County. These ward offices are estimated to cost the department a total of 5 million. 86. The sector’s strategic objectives over the MTEF period include: promoting public sector reforms, inter county integration and cooperation, public service integrity, county unity, developing policies and creating a conducive environment for fair, competitive and sustainable private sector participation and development, human resource management and development, better service delivery, efficient public finance and enterprise management, policy formulation, coordination and implementation, and county monitoring and evaluation. 53 | P a g e 87. For FY 2016/17, Kshs. 338 Million has been set aside for the department. The department also intends to construct new ward offices in 10 wards at a cost of Kshs 30 Million. It also intends to construct a Fire Station at a cost of Kshs 10 Million. 6.5.9 Finance and Economic Planning 88. The Department of Finance and Economic Planning derives its mandate from the Constitution of Kenya 2010 and other related subordinate laws including Public Management Finance Act, 2012, County Government Public Finance Management Transition Act, 2013 and County Government Act, 2012 and is responsible for finance and economic planning of the County. The department's plays pivotal role in the coordination of development planning, mobilization of public resources and ensuring effective accountability for use of the resources for the benefit of Kericho County. 89. The county received Ksh.4.412 billion as for the financial year 2014/2015 and expensed Ksh.4.410 billion to meet its county services and goods representing 99% absorption level of funding received for the 2014-2015 financial period. The expenditure includes transfers amounting to Kshs. 278 Million to funds created and adequately legislated by both arms of the county government. The county ordinary collections were estimated at Kshs. 413 million translating to 107% of the total projected revenues for the year of Kshs 386 million. 90. In the current financial year 2015/2016 The county has received Kshs. 2.415 Billion as at the end of December 2015 and expensed Kshs. 2.068 Billion to meet its county services and goods representing 85% absorption level of funding received for the half year. 54 | P a g e 91. Over the medium term, priority areas for the Sector include: policy formulation and implementation of the CIDP; development of an economic and structural reform programme which will have, among others, the following elements: deepening of public sector and structural reforms; development and implementation of a comprehensive financial sector reform programme, strengthening public finance management, and entrenching Programme-Performance Based Budgeting (PBB); operationalize the Public Private Partnership and promotion of investments. 92. The department has been allocated a total of Kshs. 613 Million. Bulk of the allocation goes towards funding of mortgages and car loans to both state and public officers. The department has also set aside Kshs 158 Million for Emergency Fund. 6.5.10 Governor's Office 93. In the medium term, the county will ensure and coordinate the participation of communities and locations in Governance at the county level and assisting communities and locations to develop the administrative capacity for the effective exercise of the functions and powers and participation in Governance at the local level. 94. Public participation in financial matters is a key requirement in the budget making process. This is enshrined in the Constitution and the Public Finance Management Act, 2012. As such, the office of the Governor together with the department of finance and economic planning shall ensure that the public is engaged in all financial matters and budget preparation. 95. For the office of the governor, a total of Kshs. 170M will be spent during the financial year 2016/17. This will go towards ensuring all activities in the sector are carried out. 55 | P a g e 6.5.11 Public Service Board 96. The County Public Service Board (CPSB) is an independent county board established by law and is in charge of handling all matters of human capital of the county. It ensures that all the sectors have qualified and adequate staff. Further the County will promote best labour practices in recruitment, allocating, motivating and effectively utilizing human resources for improved public service delivery and promote public service integrity. 97. The department has been allocated Kshs 56 Million to undertake its activities in the financial year 2016/17. 6.5.12 Information Communication and E- Government 98. The mandate of the Department of Information, Communication and E- Government in County Government of Kericho is to position itself in order to grow a knowledge-based economy in line with Mid Term Sustainable Development Goals and aspiration of Kenya's Vision 2030. Towards this end, and for the county to achieve its vision and goals, it will require leveraging the potential of Information and Communication Technologies (ICTs) in operations and programming implementation. This therefore makes ICT & e- Government a cross-cutting sub-sector, expected to contribute to the implementation of selected strategies to enhance service delivery in Kericho County. 99. In the financial year 2014/15 the department was able to carry out development activities to the tune of 20.9 Million. Some of these projects included; Biometric Access Control County Wide Area Network Londiani ICT Centre Networking Kapkatet ICT Centre. 56 | P a g e 100. The major activities to be under taken in the MTEF period include; ICT sub-sector costs ICT centers in the 42,000,000 No of ICT centers established. Site meeting Proposed entire county minutes, Reports from PWO Development and 10,000,000 To Map Business Locations, & Feasibility Study, New Installation of GIS Inform. On Economic, Political & Analysis and Platform for Social Issues Development of Kericho County Kericho GIS Development of 12,000,000 To Interconnect all Sub-counties Feasibility Study New Kericho County Civil works. BQ Wide Area and Network. To Interconnection’s interconnect the Sub-Counties Development of 12,000,000 To Bring Efficiency, Transparency, Feasibility Study, Proposed ERP for Kericho Accountability in County Operations Analysis, System County. Revenue Development and ERP, HR ERP, System Payroll ERP, Implementation Procurement ERP and Testing Licensing of All ICT 5,000,000 To Comply with Statutory Check Statutory New software. Requirement Regulations Under Applications and Kenya ICT Bill System Software 2012 Systems Security 2,000,000 Feasibility study and Security Check the System New System Implementation Vulnerability Branding of 1,000,000 Feasibility study and Security Quality Branding New Kericho County System Implementation TOTAL COST 84,000,000 7.0 CONCLUSION 101. The current economic conditions call for caution in fiscal dispensation. Macroeconomic stability will be critical to supporting growth. This should be complemented with deeper structural reforms to strengthen the county’s resilience and raise growth to a higher trajectory while ensuring that the benefits of growth are shared by all. 102. Expansion of infrastructure investment, while maintaining reasonable growth on social development continues to be a priority. Allocations to sectors reflect 57 | P a g e an equitable sharing of county resources for the betterment of the county residents. 103. The set policies outlined in this BPS reflect the changed circumstances and are broadly in line with the fiscal responsibility principles outlined in the PFM law. They are also consistent with the county strategic objectives pursued by the Government as a basis of allocation of public resources. These strategic objectives are provided in the county Government priorities. 58 | P a g e 8.0 APPENDICES 8.1: BUDGET FORECAST UNDER MTEF FOR FY 2016 TO 2019 Global budget estimates ( consolidated) %age share of total expenditure 2016/17 2018/201 2018/201 2015/16 2016/17 2017/2018 2018/2019 2015/16 2016/17 9 9 Department and Entity Estimates projection projection Name Approved Estimates Projections 12% Projections 8% Printed Estimates s s 536,035,170 County Assembly Services 558,037,314 559,827,854 627,007,197 677,167,772 11% 10% 10% 10% 607,052,732 607,052,734 Finance & Economic Planning 344,325,912 686,619,059 741,548,584 7% 11% 11% 11% 355,359,277 Agriculture, Livestock 370,256,508 Development & Fisheries 325,376,626 404,722,390 437,100,182 6% 6% 6% 6% 1,618,834,500 1,588,164,500 Health Services 1,503,299,619 1,751,494,640 1,891,614,211 30% 27% 27% 27% 505,545,512 Education, Youth, Children, 564,059,827 Culture & Social Services 486,742,349 572,930,973 618,765,451 10% 9% 9% 9% 132,733,998 Land, Housing & Physical 132,733,998 Planning 118,023,100 149,782,078 161,764,644 2% 2% 2% 2% 950,575,105 Public Works, Roads & 701,604,006 Transport 802,736,779 1,071,364,117 1,157,073,247 16% 16% 16% 16% 266,512,603 Water, Energy, Natural 263,268,372 Resources & Environment 209,878,010 305,214,116 329,631,245 4% 5% 5% 5% 332,015,309 335,015,309 Public Service & Administration 287,626,929 378,577,146 408,863,317 6% 6% 6% 6% 66,202,939 63,389,315 County Public Service Board 43,027,950 62,947,291 67,983,075 1% 1% 1% 1% 164,937,927 Office of the Governor and 157,928,065 Deputy Governor 144,451,074 191,450,478 206,766,516 3% 3% 3% 3% Trade, Industrialization, 175,341,647 Tourism, Wildlife & Cooperative 167,889,626 Development 165,509,364 203,102,644 219,350,856 3% 3% 3% 3% 90,062,861 Information, Communication & E-Government 92,029,011 96,235,188 118,790,404 128,293,636 2% 2% 2% 2% 5,825,002,259 GRAND TOTAL 5,081,064,037 5,583,632,619 6,524,002,533 7,045,922,736 100% 100% 100% 100% 59 | P a g e 5.4 Recurrent Expenditure 2016/17 %age share of total expenditure 2015/16 2016/17 2017/2018 2018/2019 2015/16 2016/17 2018/19 2018/19 Department and Entity Estimates Estimate Name Approved Estimates Projections 12% Projections 8% Printed s projections projections 559,827,854 536,035,170 County Assembly Services 538,037,314 627,007,197 677,167,772 16% 15% 15% 15% Finance & Economic 444,385,149 444,385,149 Planning 299,937,168 504,431,364 544,785,873 9% 12% 12% 12% 178,343,486 Agriculture, Livestock 178,343,486 Development & Fisheries 159,602,571 206,464,704 222,981,881 5% 5% 5% 5% 1,473,372,737 1,473,372,737 Health Services 1,330,473,247 1,554,977,465 1,679,375,662 41% 38% 38% 38% Education, Youth, 219,851,254 Children, Culture & Social 400,851,254 Services 202,642,938 252,953,405 273,189,677 6% 6% 6% 6% Land, Housing & Physical 49,420,786 49,420,786 Planning 43,783,324 62,071,280 67,036,983 1% 1% 1% 1% Public Works, Roads & 69,453,231 Transport 54,930,615 69,453,231 84,507,619 91,268,228 2% 2% 2% 2% Water, Energy, Natural 83,081,611 83,081,611 Resources & Environment 69,317,442 99,771,405 107,753,117 2% 2% 2% 2% Public Service & 303,045,673 Administration 277,357,725 306,045,673 346,131,153 373,821,646 8% 8% 8% 8% County Public Service 66,202,939 63,389,315 Board 43,027,950 62,947,291 67,983,075 1% 2% 2% 2% 164,937,927 Office of the Governor and 157,928,065 Deputy Governor 144,451,074 191,450,478 206,766,516 4% 5% 5% 5% Trade, Industrialization, 87,333,102 Tourism, Wildlife & 87,333,102 Cooperative Development 78,805,537 104,533,075 112,895,721 2% 3% 3% 3% Information, 36,146,756 Communication & E- 36,146,756 Government 24,214,048 41,604,367 44,932,717 1% 1% 1% 1% 3,735,402,502 3,885,786,336 GRAND TOTAL 3,266,580,953 4,138,850,803 4,469,958,867 100% 100% 100% 100% 60 | P a g e 5.5 Development Expenditure %age share of total expenditure 2015/16 2016/17 2017/2018 2018/2019 2015/16 2016/17 2018/19 2018/19 Department and Entity Estimate projectio projectio Name Approved Estimates Projections 12% Projections 8% Printed s ns ns County Assembly Services 20,000,000 0 0 0 1% 0% 0 0 162,667,585 Finance & Economic Planning 44,388,744 182,187,695 196,762,711 2% 8% 8% 8% Agriculture, Livestock 191,913,022 Development & Fisheries 165,774,055 198,257,686 214,118,301 9% 8% 8% 8% 114,791,763 Health Services 172,826,372 196,517,174 212,238,548 10% 8% 8% 8% Education, Youth, Children, 163,208,573 Culture & Social Services 284,099,411 319,977,568 345,575,774 16% 13% 13% 13% Land, Housing & Physical 83,313,212 Planning 74,239,776 87,710,798 94,727,662 4% 4% 4% 4% Public Works, Roads & 632,150,775 Transport 747,806,164 986,856,498 1,065,805,018 41% 41% 41% 41% Water, Energy, Natural 180,186,761 Resources & Environment 140,560,568 205,442,711 221,878,128 8% 9% 9% 9% 28,969,636 Public Service & Administration 10,269,204 32,445,992 35,041,672 1% 1% 1% 1% County Public Service Board 0 0 0 0 0% 0% 0% 0% Office of the Governor and Deputy Governor 0 0 0 0 0% 0% 0% 0% Trade, Industrialization, Tourism, Wildlife & Cooperative 80,556,524 Development 86,703,827 98,569,570 106,455,135 5% 4% 4% 4% Information, Communication & 60,088,432 E-Government 67,814,963 77,186,037 83,360,920 4% 3% 3% 3% GRAND TOTAL 1,814,483,084 1,697,846,283 2,385,151,730 2,575,963,869 100% 100% 100% 100% 61 | P a g e 8.4 PUBLIC SECTOR HEARINGS The Constitution provides that the public should be involved in the budget making process through public participation. The County Treasury organized public hearings for FY 2016/17 and the medium term budget in 4th and 5th February 2016 in all the six sub-county. The public applauded the county government for investing massively in the infrastructural development and in the medium term the county economy will improved through opening new market frontier, boost in tourism and an improved social development. Finance & Economic planning sector In the financial year 2015/2016 the county had a budgeted to raise Kshs 5.081billion in form of revenue from both national government and own revenue collection. Out of the totals amount realized of Kshs 4.410billion was fully utilized representing 100% absorption. Further in the financial year 2016/17 the county anticipate to raise Kshs 5.446 billion, which shall be allocated to sectors based on their priorities. General Economic and Commercial Affairs Sector (trade department) The public raised the issue of market shade being erected in the market center especially the one in Ainamoi where they were concern about the cost and completion time. The cost of single business permit was high and needed to be reduced. On the expensive business permit they were informed before they were set public participation was carried out and also changes in the economy warrants that they are increased relative to the current economic trend. On market shades construction has been spread across the county evenly, and progressively they will be improved to the required standards. Agriculture, Rural and Urban Development Sector Concern were raised on: Concern over the erection of slaughter slab in the middle of Ainamoi market center. Provision of subsidized fertilizer for the farmer. 62 | P a g e Why are farmer charged for A.I services while they had been promised that it will be free. The county government to provide quality bull semen to the farmer in time. The provision of acaracide to cattle dips which have not been completed in terms of refurbishment yet the acaracide have shelf life. Supply of fertilizer is carried out by national cereal & produce board and not department of agriculture, which only help in identification of farmers. Provision of AI services is subsidized and not free. The county will endure to provide semen to farmers as part of extension work. Health Sector Concerns were raised on: Upgrading of Kericho district hospitals to referral level, where they felt could lead to raise of charges and as citizen they may not benefit. Contracted worker at rural health facilities going for several month with pay. Sanitation of the market center and food kiosk were also raised, and likelihood of disease outbreak. Considering that health is a devolved function the County are in charge of the health workers whereas national government builds capacity and make policies through the intergovernmental body. The county government is in the process of promoting health as an incentive to retain and motivate the health workers. The public was concerned with the situation in hospitals where treatment is withheld until you pay and some of the cases could be emergency cases where it is not possible to pay. It was explained that the Health Bill provides for people in emergency situations and no one is to be denied treatment on the basis of no money. On sanitation issue garbage collection has been contracted however necessary supervision will be enhance to ensure the contractors entrusted with collection of garbage to carry out their work as per the terms of contract. 63 | P a g e Infrastructure and ICT Sector Concern was raise on: The youth access to information communication technology should be spread to rural shopping Centre through encouragement of development of cybercafé. Education Sector Concerns were raised on: Financing Early Childhood Development (ECD) infrastructure as well as equipping them to make them conducive for the young learners. Confirmation of ECDE caretaker into permanent and pension terms. Inadequate scholarship through County bursary scheme. The transition rate to secondary and college came into focus where there is need for the county to contribute the tuition fees for students in technical and vocational training by the county government. It was reported that free primary education remains government priority and allocation is increased annually to reach set target. On the scholarship fund, the education department and county assembly were reviewing of the current bursary Act to conform with the constitutional requirement as well as incorporate H.E.L.B (Higher education loan board) terms so that more students to benefits. Water, environment forestry & natural resources. Concerns were raised on: Incomplete water projects, Complete pipeline but dry taps. High cost of implementing water projects. On the incomplete water projects the county intention is to complete all the water projects it has initiated in the medium term since supply of water is their basic right, right fully also the completed pipeline water projects are always handed over the water service agency who are to carry out maintenance. In regard to high cost it was explain that in doesn’t only involve infrastructure but also cost of prefeasibility study as well. 64 | P a g e