COUNTY GOVERNMENT OF MARSABIT DEPARTMENT OF FINANCE AND ECONOMIC PLANNING COUNTY FISCAL STRATEGY PAPER FEBRUARY 2022 1 © County Fiscal Strategy Paper (CFSP) 2022 To obtain copies of the document, please contact: The County Executive Committee Member Department of Finance and Economic Planning P. O. Box 384 – 60500 Marsabit, Kenya CFSP 2022 will be published on the website at: www.marsabit.go.ke within 7 days of adoption by the County Executive Committee ii TABLE OF CONTENTS Foreword ...................................................................................................................................................................... vi Acknowledgement ..................................................................................................................................................... vii ABBREVIATIONS AND ACRONYMS ................................................................................................................ viii LIST OF TABLES AND FIGURES ............................................................................................................................ ix Legal Basis for the preparation of the County Fiscal Strategy Paper ............................................................... x chapter one: COUNTY STRATEGIC BLUE PRINT ............................................................................................ 1 1.1 Overview ............................................................................................................................................................. 1 1.2 Programmes for Achieving the County Strategic Blueprint’s Objective .............................................. 3 1.3 Outline of County Fiscal Strategy Paper ...................................................................................................... 8 chapter two: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK ................................ 9 2.1 Overview ............................................................................................................................................................. 9 2.2 Impact of the Macro-economic performance indicators to the County ............................................ 13 2.3 Update on Fiscal Performance and Emerging Trends ............................................................................. 14 2.4 Comparison of Actual Performance against budget ................................................................................ 16 2.5 Significant Economic, Legislative and Financial Events ............................................................................. 17 2.6 Revised Estimates ............................................................................................................................................ 18 2.7 Economic Policy and Outlook ...................................................................................................................... 18 2.8 Risks to the Outlook ...................................................................................................................................... 19 chapter three: FISCAL POLICY BUDGET FRAMEWORK .............................................................................. 22 3.1 Overview ........................................................................................................................................................... 22 3.2 Fiscal Policy Status ........................................................................................................................................... 23 3.3 Fiscal Strategy Paper’s Obligation to Observe Principles ...................................................................... 23 3.4 Budget Framework Proposed for FY 2022/23 MTEF.............................................................................. 26 3.5 Summary ............................................................................................................................................................ 32 chapter four: MEDIUM TERM EXPENDITURE FRAMEWORK ..................................................................... 33 4.1 Resource envelope.......................................................................................................................................... 33 4.2 Spending priorities .......................................................................................................................................... 34 4.3 Medium Term Expenditure Estimates ........................................................................................................ 36 4.4 Baseline Ceilings .............................................................................................................................................. 38 4.5 Finalization of spending plans ........................................................................................................................ 39 4.6 Details of Sector Priorities ............................................................................................................................ 39 4.7 Public participation/sector hearings and involvement of stakeholders .............................................. 56 chapter five: CONCLUSION AND NEXT STEPS ............................................................................................. 91 iii ANNEXES .................................................................................................................................................................... 93 Annex 1: FY 2019/20 MTEF Budget Timelines ................................................................................................ 93 iv TABLE OF TABLES Table 1: Comparison of actual performance against Budget ............................................................................ 17 Table 2: Macroeconomic Indicators Underlying the Medium Term Fiscal Framework (FY 2022/23 MTEF) ............................................................................................................................................................................ 19 Table 3: County Government Revenue trends and projections ..................................................................... 26 Table 4: County Government Fiscal Projections FY 2022/23 MTEF .............................................................. 28 Table 5: Actual Expenditure by Economic Classifications from FY 2018/19 – FY 2020/21 ...................... 29 Table 6: Actual and projected expenditure by Economic Classifications ...................................................... 30 Table 7: Actual and projected development expenditure ............................................................................... 31 Table 8: Resource Envelope for FY 2020/21-2022/23 [Kshs. Million] ........................................................... 33 Table 9: Third revenue sharing basis ..................................................................................................................... 34 Table 10: Sector ceilings recurrent and development FY 2022/23 ................................................................. 35 Table 11: Summary of Indicative Sector Ceilings for FY 2019/20 – FY 2021/22 ......................................... 37 Table 12: Conditional Grants and Loans by Beneficiary Departments .......................................................... 38 Table 13: Proposed allocations by Beneficiary Departments ........................................................................... 57 Table of figures Figure 1: Estimates versus Actual expenditures (Million Kshs) ....................................................................... 27 Figure 2: Actual Expenditure by Economic Classifications from FY 2018/19– FY 2021/21 ...................... 29 Figure 3: Expenditure by Economic Classification .............................................................................................. 30 Figure 4: Actual and projected development expenditure ............................................................................... 31 Figure 5: Ceiling projections per sector ............................................................................................................... 35 v FOREWORD This County Fiscal Strategy Paper (CFSP) is the last in the first term under Marsabit County’s administration led by H.E Gov. Mohamud Mohamed Ali. It sets out the policy goals and strategic priorities that will form the basis for formulation of County’s Financial Year 2022/2023 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 Governor’s Manifesto (AMUA) and the transformative agenda pursued by the county leadership as well as sectorial plans and the National Government’s ‘The Big Four Plan’ as contained in the 2022 BPS; all anchored on the Vision 2030, Kenya’s development blue print. The fiscal framework presented in the paper for the medium term will guide the County government in ensuring that there will be efficiency and effectiveness in the implementation of our development policies. As outlined in the previous CFSP 2021, this paper is part of efforts by the County Treasury to continue with expenditure and financial management reforms as well as containing growth of non-priority expenditures in order to create fiscal space for financing priority policy areas. The county government will enhance the budgetary allocations to the productive sectors and closely monitor implementation of projects and programmes that will have the desired impact on the lives of our people. These sectors will no doubt help in unlocking the economic potential of Marsabit County. The 2022 CFSP lays the foundation for our transformative agenda for the medium term and will guide the preparation of the FY 2022/23 budget. The policy document outlines policy measures that will continue to stimulate resilient and sustainable Economic recovery and focus on dealing with the current drought while building resilience for the future. Mr. Malicha B. Wario County Executive Committee Member Department of Finance and Economic Planning vi ACKNOWLEDGEMENT The 2022 BPS is prepared in compliance with the provisions of the Public Finance Management Act, 2012. It outlines the current state of the economy and outlook over the medium term and specifies the set strategic priorities and policy goals together with a summary of County Government spending plans as a basis for the FY 2022/23 budget. The CFSP 2022 also aims to improve the public’s understanding of the Marsabit County governments public finance management and guide debate on economic and development matters. As the County government processes finalize the budget for the FY 2022/23 and the medium term, the tight constraints being faced as a result of the drought being experienced in many parts of the County and the adverse effects of the COVID-19 Pandemic coupled with the potential uncertainty of other potent variants of the COVID-19 virus. This confronts the County Government with significant expenditure. Demands including financing the ongoing key priority projects, focusing on economic strategy, dealing with the drought related effects and building economic resilience in the future to protect livelihoods. The imminent elections planned for August 2022 may also disrupt the carefully laid plans and hence proper prioritization to ensure focus is on critical expenditures with the highest positive impact on the well-being of County residents is therefore imperative. It is with great pleasure that the Department of Finance and Economic Planning has to appreciate all those persons who put their efforts in the preparation of this CFSP 2022. The preparation of the 2022 Fiscal strategy paper was a consultative and inclusive process. Much of the information in this policy document was obtained through the CBROP and Annual Reports. We are grateful to the Marsabit County Government Executive represented by all the Departments with public officers from the leadership and technical teams that took time to analyze all information and prepare this document. Much appreciation to the Chief Officer Finance Mr Wario J. Harsama and the teams at the County government that participated in the entire CFSP 2022 preparation process. We also appreciate all the directorate for providing leadership in the budget making process. I also extend special appreciation to the team of technical officers in the Department of finance and Economic Planning for their dedication and commitment to this process, special mention goes to Mr. Ramatta Molu, the youngest economist at the Department, for his tireless effort during this tiresome process. To you all I say a big thank you from the bottom of my heart. Tache Elema Duba Ag. Chief Officer, Economic planning County Government of Marsabit. vii ABBREVIATIONS AND ACRONYMS ADP Annual Development Plan BOP Balance of Payments CBROP County Budget Review and Outlook Paper CCO County Chief Officer CBK Central Bank of Kenya CBR Central Bank Rate CECM County Executive Committee Member CFSP County Fiscal Strategy Paper CRA Commission of Revenue Allocation DMS Debt Management Strategy ECDE Early Childhood Development & Education FY Financial Year GDP Gross Domestic Product GIS Geographic Information System HIV Human Immunodeficiency Virus IBEC Inter-Governmental Budget and Economic Council ICT Information and Communication Technology IFMIS Integrated Financial Management Information System KNBS Kenya National Bureau of Statistics Ksh Kenya Shillings MTEF Medium Term Expenditure Framework MTP Medium-Term Plan NDA Net Domestic Assets NFA Net Foreign Assets NSE Nairobi Securities Exchange PE Personnel Emoluments PFM Public Finance Management PWDs People With Disabilities REA Rural Electrification Authority SRC Salaries and Remuneration Commission viii LIST OF TABLES AND FIGURES List of Tables Table 1: Comparison of actual performance against Budget Table 2: County Government Fiscal Projections FY 2019/20 MTEF (Kshs Millions) Table 3: Macroeconomic Indicators Underlying the Medium Term Fiscal Framework (FY 2019/20 MTEF) Table 4: County Government Revenue trends and projections Table 5: County Government Fiscal Projections FY 2019/20 MTEF Table 6: Actual Expenditure by Economic Classifications from FY 2015/16 – FY 2017/18 Table 7: Actual and projected expenditure by Economic Classifications Table 8: Actual and projected development expenditure Table 9: Summary of Indicative Sector Ceilings for FY 2019/20 – FY 2021/22 List of Figures Figure 1: County revenue by source, estimates, actual and trends Figure 2: Estimates versus Actual expenditures (Million Kshs) Figure 3: Expenditure by Economic Classifications from FY 2015/16 – FY 2017/18 Figure 4: Ceiling projections per sector Figure 5: Development Estimates, Actual and projections (Kshs Millions) ix LEGAL BASIS FOR THE PREPARATION OF THE COUNTY FISCAL STRATEGY PAPER The County Treasury is prepared in with Section 117 of the Public Finance Management Act, 2012 that states that: (1) 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 finalizing the budget proposal for the financial year concerned. (8) The County Treasury shall publish and publicize the County Fiscal Strategy Paper within seven days after it has been submitted to the county assembly. County Treasury Fiscal Responsibility Principles A County Treasury shall manage its public finances in accordance with the principles of fiscal responsibility and shall not exceed the limits stated in the regulations. 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 x (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 country 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 (g) 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. In addition, 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. 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. xi CHAPTER ONE: COUNTY STRATEGIC BLUE PRINT Marsabit County has a vision to build “A Cohesive and Prosperous County of Choice”. Further, the governor’s manifesto presented transformational agenda for the County for the period 2017-2022. The transformational plan has informed the County Integrated Development Plan (CIDP) for 2018-2022 and the Annual Development Plan for 2019/2020. The plans have placed key focus on programmes and interventions required to achieve the governor’s manifesto and the Jubilee government’s “Big 4” agenda towards implementation of the country’s Vision 2030. 1.1 Overview 1.1.1 General Context The 2022 County Fiscal Strategy Paper (CFSP), continues to implement programmes set out in our development plan whose broad policies and priorities are anchored in the budget policy statement of 2022. It outlines the broad strategic development issues and the fiscal framework, together with the summery of county government spending plans. The policy paper is informed by the Marsabit County Integrated Development Plan (CIDP), the vision 2030, the Governor’s manifesto, feedback from members of the public and national government policies. The Kenyan economy contracted by 0.3 percent in 2020 compared to a growth of 5.0 percent in 2019. This performance reflects the adverse effects of the COVID19 pandemic, which disrupted activities in Wholesale and Retail Trade, Education, Accommodation and Restaurant and, Transport and Storage sectors. The economy is expected to rebound to 6.0 percent in 2021, due to a stronger global demand and recovery in Service and Manufacturing sectors. The economy continues to register macroeconomic stability with low and stable inflation and interest rates, and a competitive exchange rate that support exports. Year-on-year overall inflation rate has remained low, stable and within the policy target range of 5+/-2.5 percent since the end of 2017. The year-on-year inflation rate increased to 6.45 percent in October 2021 from 4.84 percent in October 2020 driven by increased food and fuel prices. The foreign exchange market has largely remained stable despite the tight global financial conditions attributed to uncertainty due to the COVID-19 pandemic. The Kenya Shilling to the US Dollar exchanged at Ksh 110.9 in October 2021 compared to Ksh 108.6 in October 2020. Kenya’s economy is projected to rebound to 6.0 percent in 2021. The recovery in 2021 is on account of the reopening of the economy which is expected to increase economic activities and also partly reflects lower base of 2020 when most service sectors were adversely affected by the closure of the economy thereby recording negative growths. Kenya’s economy rebounded strongly in the second quarter of 2021, with real GDP growing 10.1 percent supported by easing of COVID-19 containment measures. Economic growth is projected at 6.0 percent in 2021 from the contraction of 0.3 percent in 2020. This translates to a growth of 5.9 percent in FY 2021/22 from 2.9 percent in FY 2020/21. The economic recovery reflects improved business environment after easing of COVID-19 restrictions and is supported by the prevailing stable macroeconomic environment, ongoing implementation 1 of the strategic priorities of the Government under the “Big Four” Agenda and the implementation of the third Economic Stimulus Programme. In Marsabit County, the business environment is slowly recovering from the electioneering and post-election aftermath. There was significant delay in disbursement of funds in financial year 2017/18 as well as current financial year (FY 2018/19), which has affected the operations in the county. The development budget has not been funded as expected and has greatly affected development interventions. This has had negative multiplier effect in the county development. The County Government has developed strategies and better policy framework to accelerate economic growth in different sectors to increase the capacity of the county for better service delivery. In the FY 2017/18, the county came up with ward-based projects (317 community based projects), which are at various stages of implementation of which most of it have been completed. This is expected to peak later in FY 2018/19 and be the basis for planning in FY 2019/20 MTEF. Further, the county is also working to expeditiously expand local revenue generation streams by targeting the potential in land rates, parking fees, extractive resources, cess, livestock yards fees and water tariffs and automation of revenue collection systems to increase own source revenue and capacity to provide more impactful interventions due to increased resource availability. Marsabit County received lower than expected rains between the months of October, November and December 2018. However, the rains received were enough to positively impact the agricultural sector. Access to water for domestic use, drinking and sanitation also improved within this period though there was also the negative impact of the increases of incidences of diseases associated with excessive water such as Cholera and Rift Valley Fever for the livestock. However, the Department of Health and Livestock were prepared and able to deal with all cases alleviating any negative impacts that would have significantly affected the performance of the County. 1.1.2 County Specific Context The County’s Medium Term Expenditure Framework for FY 2019/20 to FY 2021/2022 is predicated on priorities espoused in the Governors Manifesto and which were harnessed and outlined in the Marsabit CIDP 2018-2022. The priorities in the second generation CIDP are aligned to Kenya’s Vision 2030 and are in line with the Jubilee Manifesto and the President’s Big Four Point Agenda for the period 2018-2022. To propel this agenda, the following key county priorities and strategies were identified: i. Increase food and nutritional security and household income of pastoral, agro- pastoral and fisher-folk of Marsabit County ii. Ensure access to quality and affordable health services iii. Improve early childhood and vocational education, youth empowerment and sports development iv. Improve road, transport and housing development to spur economic growth v. Improve access to adequate portable water and ensure clean and safe environment vi. To facilitate and enable sustainable land use and growth of the urban centers through efficient land administration, equitable access, secure tenure, sustainable management of land-based resource and well-planned urban centers vii. Promoting green, affordable, sustainable, and reliable energy services while protecting and conserving the environment 2 viii. Improve ease of doing business for wealth creation ix. To provide quality service delivery at all decentralized units x. To improve ICT infrastructure for efficient delivery of services to the citizens xi. To improve cohesion among communities living in the County and strengthen disaster mitigation mechanism xii. To improve sensitization, awareness creation and advocacy among the citizens xiii. Ensure professional, ethical and responsive human resource that will provide effective and efficient public service delivery to the devolved units. 1.2 Programmes for Achieving the County Strategic Blueprint’s Objective This County Fiscal Strategy Paper articulates priority economic policies and structural reforms as well as sector-specific expenditure programs to be implemented under the Medium Term Expenditure Framework for FY 2022/23 are planned in order to achieve the County Government’s development goal to ensure a secure, resilient and globally competitive first class county in service delivery for all which will also support the transition to the 3rd generation integrated planning process. Hence the MTEF for the FY 2023/24 and FY 2024/25 will be updated to take into account the areas of focus in line with section 126 of the PFM Act that provides that every county shall prepare a development plan in accordance with Article 220(2) of the Constitution of Kenya for approval by the county assembly. The section requires that the county executive committee member responsible for planning shall submit the development plan before the county assembly by 1st September 2022 the 3rd generation CIDPs that will outline the 5 year plans 2022 – 2027. 1.2.1 Increase food and nutritional security of household and income of pastoral, agro-pastoral and fisher folk of Marsabit County Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Promotion of irrigated agriculture for crop and pasture development, support to agro- processing and value addition and promotion climate smart agricultural practices b) Promotion of livestock breed improvement, establishment of feed lots and disease free zones and strengthen livestock market linkage c) Promote soil, water and natural resource management d) Enhance food security through adoption of modern technologies e) Build communities resilience to drought through promotion of climate proof infrastructures and livelihood diversification. f) Strengthen research extension and farmer/pastoral community through promotion of innovative and new technologies. g) Enhance animal health and welfare through disease surveillance and disease control as well as veterinary public health h) Increased and sustainable fish production for subsistence and commercial utilization 1.2.2 Ensure access to quality and affordable health services 3 Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Investment in improving health infrastructure of existing health facilities b) Improve diagnostic services through procurements and installation of specialized equipment in the 4 referral hospitals c) Increase the workforce numbers by 20% and recruit specialist across all the cadres d) Promote and re-designate current workforce. e) Strengthening emergency services and referral system to provide 24 hours’ referral services and establishment of command center f) Increasing allocation for Essential Medicines and medical supplies g) Automation of Moyale Sub-county referral hospital and Marsabit county referral hospital h) Infrastructure and connectivity through LAN and WAN i) Improve service delivery through customer satisfaction and demand creation j) Provision of scholarships for health trainings for all cadres as well as Enhance capacity development for technical staffs on essential services k) Strengthen Monitoring and evaluation through regular support supervisions l) Establish an oxygen plant at Marsabit county referral hospital. 1.2.3 Improve early childhood and vocational education, youth empowerment and sports development Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Provide competitive and transformative quality education activities in the county b) Improve access, retention and completion rates at all education levels c) Provision of appropriate infrastructure and sufficient equipment for early childhood and vocational training d) Improve ECDE and VTCs learning programs; e) Improve school feeding program for ECDE centers; f) Scholarship and bursary support to bright students in High schools, Universities, Colleges and Vocational Training Centers. g) Link up VTC graduates with the labour market and provision of post training support to VTC graduates h) Assessment of educational institutions for quality assurance and standards especially with regards to early childhood education and vocational centres i) Provision of business start-up capital to youth and organized youth groups j) Promote youth training and development by designing policies and programs that build young people’s capacity to resist risk factors and enhance protective factors k) Talent identification, development and nurturing for all sports persons l) Stadia development and Management m) Mobilize county sports persons to participate in sports as a career n) Prepare and facilitate teams to participate in local and nationwide events. 4 1.2.4 Improve Road, Transport and housing development to spur economic growth Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Upgrade urban roads to bitumen standards in Moyale and Marsabit towns. b) Maintenance & Rehabilitation of County Roads and Bridges; c) Maintain and upgrade existing airstrips. d) Develop new airstrips in designated rural areas. e) Improve usage and safety of water transport. f) Ensure road worthiness of county government vehicles and drivers competencies. g) Construct affordable decent houses. h) Manage county government estates. i) Train youth on appropriate building technologies. j) Provide technical support for infrastructure development. 1.2.5 Improve access to adequate portable water and ensure clean and safe environment Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Infrastructure Development Services which includes construction of mega pans and major water works and drilling of boreholes; b) Reduce distance to water source by construction of pipeline connections c) Environment degradation by minimize charcoal burning activities d) Afforestation programs, mainly tree planting activities e) Farm forestry and dry land forestry f) Reduce invasive species through manual clearing. 1.2.6 To facilitate and enable sustainable land use and growth of the urban centers through efficient land administration, equitable access, secure tenure, sustainable management of land-based resource and well-planned urban centers Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) To facilitate and enable sustainable land use and growth of the urban centers through efficient land administration, equitable access, secure tenure, sustainable management of land-based resources and well-planned urban centers b) Demarcation of the already declared land adjudication sections, c) Physical planning of upcoming towns, d) Fast-tracking of title deeds of all land adjudicated sections in the County e) Fast tracking of cadastral surveys for all approved LPDPs f) Coordinating public and private partnerships, in improving provisions of urban services g) Expand urban infrastructure through effective urban planning h) Prepare integrated infrastructures and urban plans countywide i) Provide efficient waste management policies 5 j) Formulate urban policies and legislations k) Establish functional municipality to improve service delivery for social well-being of urban populations. 1.2.7 Promoting green, affordable, sustainable, and reliable energy services while protecting and conserving the environment Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Research and harnessing of Renewable Energy source and increase access to electricity to more homes and institutions. b) Continuous lighting of existing and upcoming towns [Solar Street Lights] c) Bridge budget gaps through private-public partnership d) Develop institutional, legal and Regulatory frameworks for attracting investments, especially in the areas of Renewable Energy e) Provision of Solar lantern lamps for poor households within the county f) Promotion and Development of Energy saving devices as well identify and support entrepreneurs g) Installation of hybrid [Solar/Wind] Energy systems on shallow wells. 1.2.8 Improve ease of doing business for wealth creation Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) To establish viable cooperative societies b) To develop prudent financial control of Cooperatives through regular audits c) Promote the development of small scale industries d) Improve availability of financial support to SMEs, i.e. improve access to affordable business finances e) Promote Industrialization through value addition of products in livestock and Agriculture value chains f) Promotion of wholesale and retail trade g) Attract foreign direct investment to the county h) Promotion of fair trade practices. 1.2.9 To provide quality service delivery at all decentralized units Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Construction of Sub county Administrators’ office at Saku Sub County. b) Construction of deputy sub County administrators offices for Sololo, Maikona and Loiyangalani and their respective ward administrators c) Improved coordination of county Government Departments and Non-state Actors’ programmes d) Develop bills and policies to guide the operation of the directorate. 1.2.10 To improve ICT infrastructure for efficient delivery of services to the citizens Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Digitization of county operation (ICT support) a) Infrastructure, connectivity and interoperability: establishment of Local, Metro and Wide Area Networks Countywide. 6 b) Automation of key County Services such as Revenue, lands registry etc. c) The installation and use of the integrated financial management system (IFMIS) at the Finance and Economic planning and the IPPD system at the Human Resource Department are all major ICT programs that have been fully rolled out and are fully functional. 1.2.11 To improve cohesion among communities living in the County and strengthen disaster mitigation mechanism Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Conflict management and disaster response by a creating awareness creation to enhance and reduce incidents of inter-tribal conflict. b) Strengthen Traditional Conflict resolution mechanism. c) Improved cross border Peace building initiatives d) Build institutional capacities to handle disaster and risk management e) Strengthen coordination of governments and non-state actors both for ease of Administration and emergency response f) Monitoring and evaluation of drought preparedness and response interventions by State and Non State actors. g) Dissemination of Drought Early Warning information to improved public knowledge and access to information. 1.2.12 To improve sensitization, awareness creation and advocacy among the citizens Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Civic education countywide through Community awareness, improved ability to identify and prioritize areas of development. b) Strengthen public participation at sub county and ward administration structures by further devolving resources to the ward level by implementing Ward Based Development Projects. c) Feedback mechanism established through Uwajibikaji initiative and recruitment of convener who receives and documents public complaints. d) Capacity building for County Civic education officers, County Government Administrators and other stakeholders on Governance framework. e) Conduct radio programs on available essential services provided by the county Government. 1.2.13 Ensure professional, ethical and responsive human resource that will provide effective and efficient public service delivery to the devolved units Under this strategic objective, some of the priority economic policies, structural reforms and sector-specific expenditure programs listed include: a) Recruitment/employee sourcing b) Employee Welfare Management c) Staff training and development d) Human Resource Information Systems e) Job evaluation 7 f) Performance Management Systems g) Human resource policies and regulations h) Infrastructural Development. 1.3 Outline of County Fiscal Strategy Paper This paper has four other sections. Section Two reviews the County’s recent economic developments and policy outlook that provides reviews the latest information on the macroeconomic variables and their latest trends at the national level since they were last analyzed during the compilation of the County Budget Review & Outlook Paper (C-BROP) and compared to the previous financial year to derive a percentage growth rate. Section three reviews the fiscal policy budget framework and provides the key actions the County Government has decided to take in the budget allocation. Section four sets out the budget framework proposed for FY 2022/23 MTEF and the resource envelope available for allocation among the county’s departments and agencies and is based on the County Government’s final resource projections contained in the medium term fiscal framework as outlined in the Fiscal Policy and Budget Framework section of this paper. The section has sub-sections that capture the resource envelope, spending priorities, MTEF estimates, baseline ceilings, the process for finalization of the spending plans and the details of the sector priorities. Lastly, section five gives a conclusion of the entire paper and provides a summary of the main changes and decisions to be put to effect during the MTEF period. 8 CHAPTER TWO: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK 2.1 Overview This section reviews the latest information on the macroeconomic variables and their latest trends at the national level and how these impact the Marsabit county government policies, processes and operations. These statistics are based on the National Treasury’s Budget Policy Statement of 2022. 2.1.1 Gross Domestic Product growth and its main drivers by sector The domestic economy was not spared from the adverse impact of the pandemic and estimated to have contracted to 0.3 percent in 2020. The economy is expected to rebound to 6.0 percent in 2021, attributed a pickup of activities after the reopening of the economy. This also in part reflects the lower base in 2020 when most service sectors especially accommodation and restaurant, education as well transport and storage services contracted in second and third quarters of 2020 with huge margins. The contraction was spread across all sectors of the economy but was more dismal in Accommodation and Restaurant Services activities, Education, and Transport sectors. The overall performance of the economy in 2020 was cushioned from a deeper slump by accelerated growths in Construction activities (11.8 percent), Health services (6.7 percent), Mining and Quarrying (6.7 percent) and Agricultural production (4.8 percent). Pick up of economic activities resumed in the third quarter of 2020 with further improvements in subsequent quarters. In the first and second quarters of 2021, activities in Agriculture, Forestry and Fishing sector recorded a slowdown. The sector is estimated to have contracted by 0.9 percent in the second quarter of 2021 compared to a growth of 4.9 percent in the corresponding quarter of 2020. This was mainly on account of less than expected rainfall during the period with a significant decline in production in the second quarter of 2021. The sector’s performance was cushioned from a steeper slump by a notable improvement in the production of milk, horticultural products and sugarcane. The performance of the Industry sector improved to a growth of 7.9 percent in the second quarter of 2021 compared to a contraction of 0.5 percent in the second quarter of 2020. This was mainly on account of improved performance of the Manufacturing and, Electricity and Water supply sectors. 9 Electricity and Water supply sector grew by 5.2 percent in the second quarter of 2021 compared to a 4.7 percent contraction in the second quarter of 2020. The increase in electricity generation was notable from all sources except geothermal The Manufacturing sector grew by 9.6 percent in the second quarter of 2021 compared to a contraction of 4.7 percent in the same period of 2020. This was supported by an improvement in the manufacture of food (6.7 percent) and nonfood products (12.2 percent). The improved production of non-food products was evident in the assembly of motor vehicle (10.0 percent) and manufacture of galvanized iron sheets (34.5 percent) and, paper and paper products (13.5 percent). The Construction sector relatively declined to a growth of 6.5 percent in the second quarter of 2021 compared to 8.2 percent in the second quarter of 2020. The activities in the Services sector improved significantly in 2021 due to the easing of the containment measures and the 2020 base effect. The sector grew by 15.7 percent in the second quarter of 2021, compared to a contraction of 6.7 percent in the second quarter of 2020. The contraction in 2020 was due to government measures put in place to combat the spread of the COVID-19 pandemic. Accommodation and Restaurant sector grew by 9.1 percent in the second quarter of 2021 compared to a contraction of 56.8 percent in the second quarter of 2020. This was evident in the improvement of the number of visitor arrivals and hotel operations in the review period following relaxation of most of the restrictions related to the COVID-19 pandemic. Transportation and Storage sector grew by 16.9 percent in the second quarter of 2021 compared to a contraction of 16.8 percent in the second quarter of 2020. The accelerated growth was as a result of lifting of restrictions on domestic and international movement which were in place in the second quarter of 2020. Freight movement, passenger transport and the number of visitors arrival through Standard Gauge Railway (SGR) increased in the second quarter of 2021 compared to the second quarter of 2020. 2.1.2 Money and credit Supply Trend Broad money supply (M3) moderated to a growth of 8.7 percent in the year to September 2021 compared to a growth of 10.7 percent in the year to September 2020. This reflected a relatively lower Net Foreign Assets (NFA) and reduced growth in the net lending to Government component of the Net Domestic Assets (NDA). 10 The Net Foreign Assets (NFA) of the banking system in the year to September 2021 contracted by 11.7 percent, compared to a contraction of 10.3 percent in the year to September 2020. The decline in NFA of the Central Bank was largely due to scheduled debt service and other central bank operations. The NFA of commercial banks also declined during the review period as a result of a decrease in deposits abroad. 2.1.3 The Inflation Rate Trend The year-on-year overall inflation rate remained low, stable and within the national government policy target range of 5+/-2.5 percent since the end 2017. The year-on-year inflation rate increased to 6.45 percent in October 2021 from 4.84 percent in October 2020 mainly driven by food and fuel prices. However, the inflation rate remained within the target range moderated by muted demand pressures. Food inflation remained the main driver of overall inflation in October 2021, contributing 3.8 percentage points, an increase, compared to a contribution of 2.3 percentage points in October 2020. The increase was mainly attributed to dry weather conditions and supply constraints that resulted in a rise in prices of key food items particularly traditional vegetables, tomatoes, butternut/pumpkins, peas, cooking oil and fat, beef with bones and frozen fish fillet. Fuel inflation contributed 1.6 percentage points to overall inflation in October 2021 compared to 1.7 percentage points in October 2020, following a decline of international oil prices on account of build-up of oil inventories amid concerns on supply growth. The contribution of core inflation to overall inflation has been low and stable, consistent with the muted demand pressures in the economy on account of prudent monetary policy. The contribution of core inflation to overall inflation increased to 0.9 percentage points in October 2021 from 0.7 percentage points in October 2020, reflecting a pick-up in economic activity and the effects of the implemented tax measures. 2.1.4 The Interest Rate Trend The short-term interest rates remained fairly low and stable. The Central Bank Rate was retained at 7.0 percent in the September 2021 by the Monetary Policy Committee to signal lower lending rates in order to support credit access by borrowers especially the Small and Medium Enterprises distressed by COVID-19 pandemic. The money market was relatively liquid in October 2021 supported by Government payments. The interbank rate remained low but increased slightly to 5.3 percent in October 2021 from 2.7 percent in October 2020. Interest rates on the Treasury bills remained relatively stable in October 2021. The 91-day Treasury Bills rate was at 7.0 percent in October 2021 compared to 6.5 percent in October 11 2020. Over the same period, the 182-day Treasury Bills rate increased to 7.4 percent from 6.9 percent while the 364-day Treasury Bills rate also increased to 8.1 percent from 7.8 percent. 2.1.5 External sector development trends The overall balance of payment position declined to a deficit of USD 1,499.8million (1.4 percent of GDP) in September 2021 from a surplus of USD 1,457.5 million (1.5 percent of GDP) in September 2020 (Figure 1.10). This was mainly due to a decline in receipts from services despite an improvement in the capital and financial accounts. The current account remained fairly stable in the year to September 2021. The current account deficit was at USD 5,989.3 million (5.5 percent of GDP) in September 2021 compared to USD 4,938.2 million (5.0 percent of GDP) in September 2020. The current account balance was supported by an improvement in the net primary income and net secondary income balance. The capital account balance improved by USD 283.1 million registering a surplus of USD 438.2 million in September 2021 (Table 1.5). The net financial inflows also increased to USD 6,359.4 million in September 2021 compared to USD 3,907.7 million in September 2020. This was on account of external debt in the form of other investments, portfolio investments and financial derivatives. Direct investments recorded net financial outflows during the same period. 2.1.6 Foreign exchange reserves trend The foreign exchange market has largely remained stable despite the tight global financial conditions attributed to uncertainty with regard to the COVID-19 pandemic. The Kenya Shilling to the US Dollar exchanged at Ksh 110.9 in October 2021 compared to Ksh 108.6 in October 2020. In comparison to most Sub-Saharan Africa currencies, the Kenya Shilling has remained relatively stable, weakening by 2.0 percent against the US Dollar in the year to October 2021. This depreciation of the Kenya Shilling was lower than that of Rwanda Franc, Nigeria Naira, Mauritius Rupee, Burundi Franc and Ghana Cedi. The stability in the Kenya Shilling was supported by increased remittances, adequate foreign exchange reserves and favorable horticultural exports. 2.1.7 Capital markets development Activity in the capital markets improved in October 2021 compared to October 2020, with equity share prices increasing as shown by the NSE 20 Share Index. The NSE 20 Share Index stood at 1,961 points by end of October 2021, an increase compared to 1,784 points by end 12 of October 2020. Market capitalization also increased to Ksh 2,777 billion from Ksh 2,150 billion over the same period, indicating increased trading activities 2.2 Impact of the Macro-economic performance indicators to the County In terms of fiscal years, the economy is projected to expand by 2.9 percent in the FY 2020/21, 5.9 percent in FY 2021/22 and 6.1 percent in FY 2025/26. This outlook will be reinforced by the prevailing stable macroeconomic environment and the ongoing implementation of the strategic priorities of the Government under the “Big Four” Agenda and Economic Recovery Strategy. Weather conditions are expected to be favorable supporting agricultural output. As a result, export of goods and services will expand as global demand normalizes. These factors will push up consumer demand and increase both public and private sector investment reinforcing the projected growth. The economic growth projections over the medium term are aligned to those of the Third Medium Term Plan (2018-2022) of the Vision 2030. The National Government is working with the County governments on the implementation of the Economic Recovery Strategies that aims at restoring the economy to a strong growth path, creating jobs and economic opportunities across all regions of the country with a view to tackling social and income inequalities. It is expected that the successful implementation of the Economic Recovery Strategy which is also aligned to the “Big Four” Agenda will promote inclusive growth and transform the lives of Kenyans. As the economy expands as noted by the increase in GDP, more opportunities arise for investments and growth in the productive sectors. An immediate impact will be an increase in the equitable share from the government due to increased revenue flows at the national level and which will offer the County government more resources to invest in the transformative programs already identified. Further, the growth in the economy promotes foreign direct investments and the County is able to realize more private and public investments if the trend continues in the medium term. The rate of inflation has largely been held stable due to a favorable macroeconomic environment and a prudent fiscal and monetary policy regime. Holding the rate of inflation stable enables the county maintain stable public investment and service delivery projections and hence a more stable approach to planning and budgeting. This is contrasted against an unstable inflation environment which ultimately affects the buying power of the resources both at the disposal of the government and the residents, and increases the poverty demographics to levels that may impact the spending patterns of the County Government. Hence the stability in the inflation rates is important for the continued implementation of the County development strategy. 13 The County has benefitted from the recovery of the insecurity and has already developed clear strategies and plans and address the issue of insecurity within the county. Specifically, the areas which are highly prone to insecurity. The national government big four agenda (universal health care, food security, infrastructure development and housing development for all) has largely shaped the county priorities in the four sectors while the high inflation rate in the country has led to high cost of living in the county. 2.3 Update on Fiscal Performance and Emerging Trends The County’s approved budget for FY 2020/21 was Kshs. 8.72 billion, comprising Kshs.4.56 billion (52.3 per cent) and Kshs.4.15 billion (47.7 per cent) allocation for development and recurrent programmes, respectively. To finance the budget, the County expected to receive Kshs.6.87 billion (78.8 per cent) as the equitable share of revenue raised nationally, Kshs.1.12 billion (12.8 per cent) as total conditional grants, generate Kshs.150 million (1.7 per cent) from own sources of revenue, and a cash balance of Kshs.578.81 million (6.6 per cent) from FY 2019/20. 2.3.1 Revenue In FY 2020/21, the County received Kshs.6.78 billion as the equitable share of the revenue raised nationally, Kshs.911.05 million as conditional grants, raised Kshs.110.37 million as own- source revenue, and had a cash balance of Kshs.578.81 million from FY 2019/20. The total funds available for budget implementation during the period amounted to Kshs.8.38 billion. 2.3.2 Expenditure During the reporting period, the County spent Kshs.7.2 billion on development and recurrent programmes. The expenditure represented 94.8 per cent of the total funds released by the COB and comprised of Kshs.3.44 billion and Kshs.3.76 billion on development and recurrent programmes, respectively. Expenditure on development programmes represented an absorption rate of 75.4 per cent, while recurrent expenditure represented 90.7 per cent of the annual recurrent expenditure budget. The expenditure excluded pending bills as of 30th June 2021, which amounted to Kshs.614,462,490 million for both development activities and recurrent costs. Analysis of expenditure by the Departments shows that the Department of Administration and County Public Service Board recorded the highest absorption rate of development budget at 100 per cent while the County Assembly the lowest development absorption rate at 28.5 14 per cent. The Department of Public Works and Roads had the highest percentage of recurrent expenditure to budget at 99.1 per cent while the Department of Agriculture had the lowest at 59.4 per cent. The top three sub-programmes with the highest levels of absorption rates were: General administration planning and Support Services under the Department of Roads, Housing and Public Works at 99.1 per cent, Economic and Financial Policy Formulation sub-programme under the Department of Finance and Economic Planning at 98.7 per cent, and General Administration sub-programmes in the Department of Executive Services at 98 per cent of budget allocation. Recurrent expenditure Analysis of expenditure by economic classification indicates that Kshs.2.57 billion was spent on employee compensation, Kshs.1.2 billion on operations and maintenance, and Kshs.3.44 billion on development activities. Expenditure on compensation to employees was 35.6 per cent of the total expenditure for the reporting period and 30.6 per cent of revenue. On recurrent expenditure, regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations, 2015 sets a limit of the County Government’s expenditure on wages and benefits at 35 per cent of the County’s total revenue. COVID 19 expenditure in FY 2020/2021 amounted to Kshs 18,587,674 and was used for the supply and delivery of COVID 19 mitigation items (55%), supply and delivery of face mask N95 to Marsabit county referral hospital (26%) and supply and delivery of ICU drugs to Marsabit county referral hospital (19%). Development expenditure The County incurred an expenditure of Kshs.3.44 billion on development programmes, which represented an increase of 8.8 per cent compared to a similar period in FY 2019/20 when the County spent Kshs.3.16 billion. 2.3.3 Fiscal balance In the medium term, the government is forecasting a balanced budget hence there will be no need for debt financing. 15 2.4 Comparison of Actual Performance against budget An analysis of the budget performance in the FY2020/21 reveals that while the recurrent allocation is well absorbed, the development vote is minimally absorbed. The table below shows the comparison of actual performance against Budget. 16 Table 1: Comparison of actual performance against Budget 2019/2020 FY 2020/21 FY Actual Budget Actual % estimates Utilisation Kshs Kshs Kshs TOTAL REVENUE & 6,900,570,977 8,136,288,162 7,801,289,144 -4% GANTS Unspent Bal from 578,814,049 571,814,049 -1% Previous FY 844,590,730 Revenue (Total) 7,745,161,707 8,715,102,211 8,373,103,193 -4% Equitable Share Allocation 6,190,613,400 6,868,050,000 6,779,873,100 -1% Local Revenue 126,705,276 150,000,000 110,368,253 -36% Grants (Total) 583,252,301 1,118,238,162 911,047,791 -23% TOTAL REVENUE & 6,900,570,977 8,136,288,162 7,801,289,144 -4% GANTS Total Expenditure 7,166,347,658 8,715,102,211 7,203,307,455 -21% Recurrent 4,004,926,369 4,152,951,573 3,764,875,624 -10% Development 3,161,421,289 4,562,150,638 3,438,431,831 -33% Unspent Bal Current 578,814,049 1,169,795,738 100% FY To finance the government operation in 2020/21, the County received Kshs. 6.8 billion (81%) as equitable share of revenue raised nationally, Kshs. 911 million (10.9%) as total conditional grants, generated Kshs.110.3 million from own source revenue (1.3%), and Kshs.571.8 million (6.8%) cash balance from FY 2019/20. 2.5 Significant Economic, Legislative and Financial Events The constitutional provisions for county governments financing have guaranteed stable flow of funds from the national government with Marsabit county recording an average of 12% growth per annum between 2013/14 and 2018/19. There was a dip in the funding as a result of the COVID crisis and the global economic challenges that resulted in a dip in growth. We have projected a growth of 3% between FY 2019/2020 and 2021/2022. The county government has further identified the following aspects and the remediation actions to deal with lower than planned budget implementation;  The late submission of financial reports by the County Treasury to the Controller of Budget, which affected timely preparation of budget implementation report. The County Treasury will ensure timely preparation and submission of financial reports to the Office of the Controller of Budget in line with Section 166 of the PFM Act, 2012  A high wage bill, which accounted for 35.6 per cent of the total expenditure in FY 2020/21, thus constraining funding to other programmes. The County Public Service Board 17 will establish an optimal staffing policy and structure to ensure expenditure on personnel emoluments complies with Regulation 25 (1) (b) of the Public Finance Management (County Governments) Regulations, 2015.  The underperformance of own-source revenue at Kshs.110.37 million against an annual projection of Kshs. 150 million, representing 73.6 per cent of the annual target. The County will develop specific legislation and enforcement mechanisms to address its own-source revenue performance to ensure the approved budget is fully financed. The elections in August 2022 will come immediately after the start of the financial year 2022/23 and the heated political temperatures coupled with uncertainties associated with elections and the lack of a CIDP by which to hinge the budget on will result in subdued budget implementation at the start of the financial year. However, the Assumption of the Office of Governor Act, 2019 does provide a clear process of transition and the county government will make all arrangements to ensure that the necessary processes are in place to enable a smooth transition to the new planning framework period. 2.6 Revised Estimates There are no major challenges reported in the past financial year to have big negative impact. In the medium term, macroeconomic outlook projects a stable financial situation for the county. The first quarter of 2021/2022 has recorded gross under performance of OSR of 18% and this shortfall shall be accommodated by rationalizing recurrent expenditure. The revenue shortfall has mainly been occasioned by weak legal framework and enforcement frameworks, heightened political activity and insecurity that affect the collection of the revenue as targeted. In the medium term, the government intends to put in place adequate laws and measures to address these weaknesses. 2.7 Economic Policy and Outlook The BPS 2022 projects a GDP growth of between 5.9% and 6.1% in the medium term, this is expected to guarantee a revenue growth of at least 3% annually for the county governments. This anticipated revenue allocations to the county has been factored in the budget projections in this CFSP. The government has projected a balanced budget in the medium term. Inflation has been projected to remain within target of 6+/- 2.5% in the medium term and is therefore not expected to have adverse effect on the budgetary resources for the county government. 18 Being an election year and reflecting on the 3rd integrated planning period where priorities may change and with a view to ensure policy stability the County has committed to sustain the resources envelope proportions based on trends to the key sectors. An average of 22% of budgetary allocations will go to the health sector while the agriculture, Trade and Cooperatives, Water Services and Energy & Environment sectors that support food security and value addition will consume 23% in the medium term. Table 2: Macroeconomic Indicators Underlying the Medium Term Fiscal Framework (FY 2022/23 MTEF) 2020/21 2021/22 2022/23 2023/24 National Account and Prices Annual Percentage change Real GDP 2.9 5.9 5.8 5.9 GDP Delfator 5.9 5.5 4.8 5.3 CPI Index (eop) 5.7 5.3 5 5 CPI Index (Avg) 5.6 5 5 4.8 Terms of Trade (- -2.6 1.1 0.2 0.2 deterioration) PERCENTAGE OF GDP Investments and savings Investments 20.6 20.8 20.5 20.7 Gross National Savings 16.2 16.3 15.6 15.4 Central Government 15.8 16.3 17.4 18.1 Budget Total Revenue 24.3 25 23.7 22.8 Total expenditure and Net -8.5 -8.6 -6.4 -4.7 lending Overall balance Commitment basis -8.2 -8.2 -6 -4.4 (excluding. Grants) Overall balance Commitment basis 15.8 16.3 17.4 18.1 (including. Grants) External Sector 2.8 Risks to the Outlook This sub-section deals with the risks associated with the outlook of the proposed budget 2022/23 and the medium term. Risks Mitigation measures 2.8.1 Risk in Changes in Macroeconomic Assumptions The emergence of new COVID-19 variants Vaccines could help prevent renewed waves of infection that may require broader reinstatement of and the emergence of new variants, end the health crisis 19 Risks Mitigation measures containment measures, in the county and sooner than assumed, and allow for faster normalization could lead to renewed disruptions to trade of activity in the County. and activities. Other risks relate to lower agricultural output due to potential adverse weather Development of drought resilience programmes should conditions and continued desert locust mitigate the impact of climate change and food security. infestation in the County which could potentially reduce production of food crops and animal feeds. Additionally, increased public expenditure pressures, particularly wage and Faster than projected rebound in economic activities that other recurrent expenditures, would put a would result in higher Government revenues providing strain to the fiscal space. fiscal space that would support faster reduction in pending bills and increase the fiscal space. 2.8.1 Risk in Changes in Macroeconomic Assumptions Marsabit County understands that the risks in macro- Unexpected changes in in macroeconomic economy largely affect the programmed spending on the variables create risks to both revenue and development budget. The National Treasury has developed expenditure projections in this CFSP as a national mitigation of measure by establishing the Public they play a key role in the formulation of Investment Management Unit which will be responsible for the budget. Some of these risks include ensuring that all capital projects are planned, appraised and adverse changes in real GDP growth rates, evaluated before funds are finally committed in the budget. inflation rate, exchange rate and volatility of Marsabit County shall ensure that capital projects planning, commodity prices that affect the County’s appraisal and evaluation are conducted efficiently and own source revenue. However, on the necessary commitments made through the Public overall, any negative external and internal Investment Management Unit to ensure that funds are shocks to our economy may adversely allocated early in the financial year. To this end the County affect transfers from the national will develop comprehensive work plans, procurement government and may significantly affect the plans and cash flow projections and ensure these are funds allocated to Marsabit County. submitted as required (by the 15 June of each financial year) to mitigate the effects of any adverse macroeconomic changes and ensure that if this risk crystalizes then the effects are borne by the National government. 2.8.2 Shortfall in County Revenue The third revenue sharing formula While country’s GDP growth is projected at 6.0%, the proposed by CRA will lead to reduction of county government has conservatively projected the county revenue significantly. revenue growth at 3%; 20 Risks Mitigation measures The County government has projected as Understanding the own source revenue environment, the part of its revenue envelope own source county has in the FY 2022/23 MTEF developed specific revenue that will be used for budgetary administrative responses to ensure support. Own source revenue generation However, in the medium term the government will has continued to face challenges that has undertake measures aimed at expanding the revenue base resulted in consistent drop in the revenue and increasing tax compliance through the integration of collected and the failure to achieve the technology in revenue collection. Further, the County will targets in the past. develop legislation over key revenue sources and develop enforcement mechanisms to stem the revenue leakages. 2.8.3 Pending bills Marsabit County continues to face major The pending bills of Kshs 1.29 billion as at 30th June 2021 challenges of pending debts and bills. The have been appropriated for in FY 2021/22 and is expected outstanding pending bills as of 30th June to be cleared by the end of this financial year. In the 2021 amounted to Kshs.1.29 billion. medium term, commitments will be made against the appropriated resources and payments will be made in strict compliance with the approved estimates. 2.8.4 Contingent Liabilities County Government continues to face The County will continue to ensure full compliance with potential litigation on the pending bills contractual agreements and with statutory requirements and/or due to lack of compliance on the imposed by the various national agencies. various statutory requirements including the myriad of requirements imposed by Further, the county will seek to revamp its legal department Kenya Revenue Authority. Though there to ensure that the implementing departments get the were no active cases at the time of the requisite legal advice when dealing with all contractual development of this CFSP (2022), the matters. possibility of such being brought remains a risk. 21 CHAPTER THREE: FISCAL POLICY BUDGET FRAMEWORK 3.1 Overview The FY 2022/23 MTEF budget framework is intended to consolidate the County’s fiscal agenda of transforming the lives and livelihoods of residents through strengthening the delivery of strategic and priority social economic interventions. The priorities will be updated in the 2022-2027 CIDP that is expected to be developed by 1 September 2022. The County will pursue prudent fiscal policies to ensure economic growth, development and a smooth transition to the new planning period. Further, the fiscal policies are aimed at providing support to economic activities while at the same time creating a sustainable and conducive environment for the implementation of programs to be defined in the 3rd integrated planning period. The County Government will endeavor to improve on service delivery to the county residents in the medium term. In doing so the following key decisions will guide allocation during the medium term:  There will be focus on strengthening resource mobilization to eliminate the fiscal gaps that have been experienced in the past as a result of own source revenue shortfalls. This will be through automation of revenue streams to enhance their potential and reduce leakages;  The County Government will implement performance management and institute critical actions to manage the growth in wage bill. The County Government will strive to ensure that the budget is balanced in the medium term and that expenditure for development shall constitute 35% across the FY 2022/23, FY 2023/2024 and FY 2024/25. Further and on the back of prudent financial management, the county will also seek to keep the recurrent expenditures below 65% in the medium term. Expenditure ceilings are based on county priorities extrapolated the CIDP 2018-2022, ADP 2022/23 and the sector working group feedback. These will be refined once the transition to the new planning term and the integrated planning process which will result in a CIDP for 2022-2027. Therefore the ceilings have been adjusted based on the expected total revenue, expenditure trends and the key priorities based on sector discussions and urgent current needs. Expenditure related to conditional funding and grants has been ring fenced based on the purpose for the funding and estimates developed and included in the sector working group reports. The proposed FY 2022/23 MTEF fiscal strategy is based on a balanced budget. However, any shortfall in revenue that may occur within the MTEF period and should the impact of the 22 upcoming general elections require changes, these will be addressed through supplementary or borrowing within the framework by sub-nationals as approved by the Intergovernmental Budget and Economic Forum (IBEC). 3.2 Fiscal Policy Status The government’s fiscal policy objective in the medium term will be to focus resources to key transitional priority areas and build in flexibility to and growth potential areas. Allocation and utilization of resources in the medium term will be guided by the priorities outlined in CIDP 2018-2022 and be flexible enough to accommodate any changes that will result from the 3rd CIDP 2022-2027 and other county plans; and in accordance with fiscal responsibility principles as set out in section 107 of the PFM Act 2012. For effective utilization of public finances for enhanced expenditure productivity, the county government will prioritize expenditures within the overall sector ceilings and strategic sector priorities. During the first quarter of FY2022/2023, the County Government will undertake the process of developing the CIDP 2022-2027 and will hence operationalize Sector Working Groups (SWGs) that are critical to this process and will be used to create a forum for permanent and continuing dialogue between the government and the various sectors of the county economy. The SWGs will also be key in coordinating the preparation of Departmental Public Expenditure Reviews (DPERs); reviewing sectors objectives and strategies; identifying sector priorities and rankings; identifying linkages; identifying sources of funding for sector programmes and improving communication and nurture partnerships within each of the sectors. 3.3 Fiscal Strategy Paper’s Obligation to Observe Principles To have sustainable development and growth, the government is planning to meet the fiscal targets set by making policies aimed at ensuring strict adherence to fiscal responsibility principles. These policies will aim at rationalizing allocation of more resources from recurrent to capital and development programs so as to promote sustainable and inclusive growth. Further, the government will operate within a framework of balanced budget in the medium term with occasional short term borrowing as may be necessary for cash flow management purposes. 3.3.1 Fiscal Responsibility The policies set out are in line with the Constitution of Kenya 2010 and the PFM Act, 2012 which sets out the fiscal responsibility principles to ensure prudency and transparency in the 23 management of public resources. The fiscal responsibility principles that will be observed in FY 2022/23 and in the medium term are as follows: 1. Over the medium term, a minimum of thirty (30) per cent of the budget shall be allocated to the development expenditure. In FY 2018/19, FY 2019/20, FY 2020/21 the government achieved an allocation to development expenditure of 48%, 44% and 48% respectively. The projections for the medium term is to maintain it at least 48% across the years which is within the law; 2. The Government’s expenditure on wages shall not exceed a percentage of 35% of the County total revenue. Personnel Emoluments for FY 2020/21 stood at 33%. The projected percentage of the wage bill in FY 2021/22 is 32% which represents a reduction in 1 percentage points. This is due to the rationalization of staff and the focus to improve on productivity and increase the focus on development expenditure in the light of zero expenditure on development for the 1st quarter 2021/22 FY; 3. Over the medium term, Government’s borrowing shall be used only for purpose of financing development expenditure and not for recurrent expenditure. The County government has no plans within the FY 2022/23. However, if need arises to borrow in the medium term it will be tied to development purpose; 4. The county debt shall be maintained at a sustainable level as approved by County Assembly. The county debts are limited to pending bills which stood at the commitments carried forward from FY 2020/21 of Kshs.614 million which are planned to be settled by the close of FY 2021/22. The County will also institute processes and procedures to comply with regulation 41 (2) of the Public Finance Management (County Governments) 2015 that states that “debt service payments shall be a first charge on the County Revenue Fund and the Accounting Officer shall ensure this is done to the extent possible so that the County government does not default on debt obligations”. Further, the county will also implement regulation 55(2) b of the Public Finance Management (County Governments) 2015 that requires that the finalized and signed contracts be budgeted first before new projects are considered by the accounting officer of the County government entity. 5. The fiscal risks identified under section 2.8 above shall be managed prudently and all mitigation measures indicated put in place to manage all identified and emerging risks; and 6. The government shall maintain a reasonable degree of predictability with respect to the level of tax/ levy rates and bases shall be maintained, taking into account any tax reforms that may be made in the future. The projections for the own source revenues have taken this into account and in the medium term, the county will focus more on stemming revenue leakages by instituting enforceable laws over revenue sources and move to automation of the revenue streams. 24 3.3.2 Fiscal Structural Reforms The County Government aims to widen the tax base by reviewing the relevant revenue legislations in order to improve revenue raising measures and efficiency. In order to achieve this objective, the county government will review the current tax legislation in terms of rates, processes and enforcement mechanisms to ensure that own source revenues are increased to optimal levels. Further, there will be an increased focus on automation to improve the whole process of revenue management and stem revenue leakages. Over the medium term, the government will rationalize its expenditure with an aim to reduce wastages. This will be done by ensuring there is improved accountability and transparency by the accounting officers who are in charge of public finances and more focus on programs and activities that have a high impact on service delivery to the residents. The on-going fiscal structural reforms will eliminate duplications. The government will strive to ensure that there is efficient and effective execution of the budget. This will be made possible through expenditure tracking and taking corrective measures on any deviations and instilling strong internal controls on expenditure. To achieve value for money there is need to strengthen County oversight mechanisms including the audit function and the Project Implementation function through continuous review of risks and periodic monitoring and evaluation of projects and programmes. 3.3.3 Debt Financing Policy The County Government’s current debts are limited to the pending bills. The pending bills for FY 2020/21 have been appropriated in the FY 2021/22 and will be cleared in the course of this financial year. The pending debts represent carried forward debts over the years and some that date back to the pre-devolution period. A review and consultative process will be planned for and a decision made on how to clear this amounts. Except for these two categories, the County does not finance its operations through debt and hence no outstanding debt. In the medium term, no debt has been factored in the financial projections for the County. However, Marsabit County does relish the opportunity to borrow from domestic sources for key capital investments and will be willing to revisit the current projections upon the completion of a framework to be developed by the National Treasury on borrowing by County governments. In such instances, borrowing will be undertaken upon careful and critical analysis of financial position and capability of the county in repaying its debts. 25 3.4 Budget Framework Proposed for FY 2022/23 MTEF The FY 2022/23 budget framework will continue to entrench fiscal discipline and expenditure rationalization that has been undertaken over the last two years. Taking into consideration the fiscal consolidation measures proposed by the National Treasury, the county will attempt to do more with less that is available to achieve sustainability and affordability. The strategy to be adopted will involve prioritization of key sectors and functions in order to  Ensure funding goes to the most critical needs and achieve maximum impact on the beneficiaries through prudent utilization of resources.  Linking programs and intended objectives with clearly defined inputs, outputs and outcomes.  The cash flows and procurement and implementation plans are harmonized to ensure coherence and take into account resource constraints. 3.4.1 Revenue Projections The revenue projections for the FY 2022/23 including the equitable share, local revenue and loans and conditional grants are expected to be about Kshs. 8,401,314,489. The revenue projections are based on the 2022 Budget Policy Statement which has defined the horizontal sharing of revenues among the counties. The County is expected to receive Kshs. 7.4 billion as equitable share and Kshs.986 million from the loans and conditional grants allocation. The county own revenue sources are estimated to be Kshs. 170 million which require concerted effort and better strategies to raise through better administration and supervision. In the medium term, 86.63% of the county revenues will be financed by the equitable share, 11.41% from loans and conditional grants and 1.96% per cent from county own revenue sources. This is tabulated in table 3 below. Table 3: County Government Revenue trends and projections Financial Equitable User Fees Fuel Levy Development Leasing of Other Own Total Year Share forgone of Youth Medical Loans and Source Polytechnics Equipment Grants Revenue Conditional Grant 2017/18 6,583,600,000 6,872,636 181,777,695 29,598,081 - 149,876,862 94,442,462 7,046,167,736 2018/19 6,800,652,600 6,640,000 184,360,000 26,280,000 - 461,060,000 140,000,000 7,618,992,600 2019/20 6,634,000,000 6,643,714 192,258,938 15,558,298 131,914,894 527,605,108 150,000,000 7,657,980,952 2020/21 6,833,020,000 6,643,714 192,258,938 15,558,298 131,914,894 527,605,108 160,000,000 7,867,000,952 2021/2022 6,779,873,100 6,643,714 204,701,864 10,669,894 6 8 9 , 0 3 2 , 3 19 170,000,000 7,860,920,891 - 26 % total 86.86% 0.08% 2.44% 0.20% 1.68% 6.71% 2.03% 100.00% Revenues (2020/21) % total 86.25% 0.08% 2.60% 0.14% 0.00% 8.77% 2.16% 100.00% Revenues (2021/22) % Avg of 86.55% 0.08% 2.52% 0.17% 0.84% 7.74% 2.10% 100.00% total Revenues (2022/23*) 3.4.2 Expenditure Projections From the figure below, the total expenditure for FY 218/19, 2019/20 and 2020/21 was below the budget and the difference was included in the carried forward balances. The budgets indicate a lower absorption in FY 2020/21 due to the impact of the COVID 19 pandemic though the increased absorption is expected in FY 2021/22 due to the emergency responses to the drought being experienced in the County, emergency responses to the cases of insecurity and the focus to spur recovery post COVID 19 lock down effects. The impact of the elections and electioneering period may impact this positive process and all measures will be undertaken to ensure priority area spending is focused on. The decline in the expenditure is seen because the unspent balances for the previous financial year and the reduction in equitable share allocation. Estimates vs Actual Expenditures (million KSh) 12,000 10,000 8,000 6,000 4,000 2,000 - 2018/19 2019/20 2020/21 2021/22 2022/23 (2,000) Estimates Actual Linear (Estimates) Linear (Actual) Figure 1: Estimates versus Actual expenditures (Million Kshs) 27 Table 4: County Government Fiscal Projections FY 2022/23 MTEF 2019/2020 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY Actual Budget CBROP 2020 CFSP 2021 CBROP 2021 CFSP 2022 CBROP 2022 CFSP 2023 TOTAL REVENUE & 8,380,103,192 8,945,318,521 8,333,616,393 8,401,314,489 8,333,616,393 8,914,288,837 8,333,616,393 9,185,287,502 GRANTS Unspent Bal b/f -578,814,049 -541,000,000 \Previous FY Revenue (Total) 7,801,289,143 8,404,318,521 8,333,616,393 8,401,314,489 8,333,616,393 8,914,288,837 8,333,616,393 9,185,287,502 Equitable Share 6,779,873,100 7,277,004,332 7,277,004,032 7,495,314,462 7,277,004,032 7,720,173,896 7,277,004,032 7,951,779,113 Allocation Local Revenue 110,368,253 170,000,000 150,000,000 170,000,000 150,000,000 178,500,000 150,000,000 187,425,000 Grant income 657,891,791 957,314,489 906,612,361 986,033,924 906,612,361 1,015,614,941 906,612,361 1,046,083,390 Grant (Total) 7,548,133,144 8,404,318,821 8,333,616,393 8,651,348,386 8,333,616,393 8,914,288,837 8,333,616,393 9,185,287,502 Total Expenditure 7,203,307,455 8,945,318,521 8,333,616,393 8,651,348,386 8,333,616,393 8,914,288,837 8,333,616,393 9,185,287,502 Recurrent 3,764,875,624 4,359,289,032 4,500,616,394 4,671,728,128 4,500,616,394 4,635,430,195 4,500,616,394 4,776,349,501 Recurrent as % of CG 52% 49% 54% 54% 52% 52% 52% 52% Total Revenue Personnel Emolument 2,567,866,537 2,721,991,252 2,835,388,328 2,856,446,926 2,835,388,328 1,576,046,266 2,835,388,328 2,755,586,251 Operations & 1,197,009,087 1,637,297,780 3,279,411,389 1,815,281,202 3,279,411,389 3,059,383,929 3,279,411,389 2,020,763,251 Maintenance Personnel Emoluments as 33% 32% 34% 34% 34% 34% 34% 30% % of CG Revenue Development 3,438,431,831 4,586,029,489 3,832,999,999 3,979,620,257 3,832,999,999 4,278,858,642 3,832,999,999 4,408,938,001 Development as % of CG 44% 55% 46% 47% 46% 48% 46% 48% Total Revenue 28 3.4.3 Recurrent Expenditure Forecasts The recurrent expenditure between FY 2018/19 and FY 2020/21 was relatively stable and comparable through these years. Personnel costs, operation and maintenance costs and development costs averaged 34%, 19% and 47% respectively as noted by the amounts in the table below and illustrated in the figure below. Table 5: Actual Expenditure by Economic Classifications from FY 2018/19 – FY 2020/21 Economic classification FY 2018/2019 FY FY 2019/2020 2020/21 Personnel Emoluments 2,442 2,534 2,568 O&M 1,421 1,471 1,197 Development 3,605 3,161 3,438 Total 7,468 7,166 7,203 Expenditure by Economic Classification (million KSh) 8,000 7,468 7,166 7,203 7,000 6,000 5,000 4,000 3,605 3,438 3,161 3,000 2,000 1,000 - 2018/2019 2019/2020 2020/21 Personnel O&M Development Total Linear (Personnel) Linear (Development) Figure 2: Actual Expenditure by Economic Classifications from FY 2018/19– FY 2021/21 The total recurrent expenditure forecasts is Kshs. 4.7 billion in FY 2022/23 which is an increase from the allocation of Kshs. 4.4 billion in FY 2021/2022. The slow increase in income and the need to transition to the new integrated planning period of FY 2022-2027 will require a rationalization and in built flexibility to align the FY 2022/23 budget with the manifesto that will guide the next political leadership term. With reduced equitable share, there is need to rationalize expenditures in the 2022/2023 MTEF budget. From the analysis of recurrent expenditure, personnel costs have shown an upward trend both operations and maintenance, and development expenditure has been oscillating up and 29 down for the last three financial years. While this may indicate increased use of the developed leading to higher recurrent costs, the government should seek to reign in the trend to sustainable levels as required by the fiscal responsibility principles. Table 6: Actual and projected expenditure by Economic Classifications 2020/21 FY 2021/22 FY Projections Actual Estimates 2022/23 FY 2023/24 FY 2024/25 FY Total Expenditure 7,203,307,455 8,945,318,521 8,651,348,386 8,914,288,837 9,185,287,502 Recurrent 3,764,875,624 4,359,289,032 4,671,728,128 4,635,430,195 4,776,349,501 Recurrent as % of CG 52% 49% 54% 52% 52% Total Revenue Personnel 2,567,866,537 2,721,991,252 2,856,446,926 1,576,046,266 2,755,586,251 Emolument Operations & 1,197,009,087 1,637,297,780 1,815,281,202 3,059,383,929 2,020,763,251 Maintenance Personnel Emoluments 33% 32% 34% 34% 30% as % of CG Revenue Development 3,438,431,831 4,586,029,489 3,979,620,257 4,278,858,642 4,408,938,001 Development as % of 44% 55% 47% 48% 48% CG Total Revenue Expenditure by Economic Classification (million KSh) 8,000 7,468 7,166 7,203 7,000 6,000 5,000 4,000 3,605 3,438 3,161 3,000 2,000 1,000 - 2018/2019 2019/2020 2020/21 Personnel O&M Development Total Linear (Personnel) Linear (Development) Figure 3: Expenditure by Economic Classification 3.4.4 Development and Net Lending The FY 2022/23 budget projects total development expenditure will be Kshs. 3.98 billion (47%) compared to actual expenditure of Kshs 3.44 billion in FY 2020/21 and budgeted 30 development expenditure of Kshs 4.59 billion. This proportion is expectd to be maintained over the medium term. The development expenditure will be funded by equitable share transfers from National Treasury as well as loans and grants from national government. Table 7: Actual and projected development expenditure Actual Budget Projections 2020/21 FY 2021/22 2022/23 2023/24 2024/25 FY FY FY FY Development 3,438 4,586 3,980 4,279 4,409 Development 44% 55% 47% 48% 48% as % of CG Total Revenue Development 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - 2020/21 FY 2021/22 FY Projection 2022/23Projection 2023/24 Projection 2024/25 FY FY FY Development Poly. (Development) Figure 4: Actual and projected development expenditure 3.4.5 Fiscal Balance and Deficit Financing The County Government does not plan to undertake long term borrowing in the medium term, and hence no debt has been factored in the financial projections for the County. In case 31 there arises the need to borrow for key capital investments in the medium term, it will be done as per the framework to be developed by the National Treasury on borrowing by County governments. 3.5 Summary The Government’s fiscal policy goals will focus on adherence to fiscal responsibility principles and mainly on ensuring that at least 30% of the budget is spent on development. Further, the government plans to make legislative and process changes to revenue collection including automation to enhance the own source revenues. On expenditure, strict controls over budgets and budget execution will continue to be instituted in line with the PFM Act and Public Financial Management Regulations (PFR). Through the above policies, the investments made in priority and growth potential areas will be achieved in the medium term. 32 CHAPTER FOUR: MEDIUM TERM EXPENDITURE FRAMEWORK 4.1 Resource envelope The County projects and programmes in the various departments will be funded by equitable shares from National Treasury, conditional grants, loans and grants and own source revenue collected by county government. For the FY 2022/23, own source revenue will finance about 2% of the expenditure priorities in the projected budget of Kshs. 8.401 billion. In the FY 2022/23, the projected own source revenue stands at Kshs. 170 million. This has been increased compared to the FY 2020/2021 projection of Kshs. 150 million based on the revenue potential. Equitable Share from National Government will accounts for 86.58 % of total budget resources while loans and conditional grants will be 11.39%. The equitable share in FY 2020/21 was Kshs. 6.78 billion. Table 8: Resource Envelope for FY 2020/21-2022/23 [Kshs. Million] 2020/21 FY 2021/22 FY 2022/23 FY Actual Budget Projections Equitable Share 6,779,873,100 7,274,000,000 7,245,000,000 Allocation Local Revenue 110,368,253 170,000,000 170,000,000 Grant income 657,891,791 957,314,489 986,033,924 Grant (Total) 7,548,133,144 8,401,314,489 8,651,348,386 The national government funding is capped at population (45 per cent), poverty index (20 per cent), land area (8 per cent) basic equal share (25 per cent) and fiscal responsibility (2per cent) of the national revenue released by the National Treasury. The County takes into consideration the New Formula/ Criteria that will be adopted by the CRA and the amount that will be allocated to the County Governments. Section 190 (1) (b) of PFMA, mandates the Commission to submit the determination of each county’s equitable share in the county share of the revenue. The Third Basis for revenue sharing for financial year 2021/22 to 2024/25 is summarized in the table below: 33 Table 9: Third revenue sharing basis No Indicator of expenditure need Assigned weight 1 Health index 17 2 Agricultural index 10 3 Population index 18 4 Urban services index 5 5 Basic share index 20 6 Land area index 8 7 Rural access index 8 8 Poverty head count index 14 Total 100 The Third Basis for revenue sharing has a baseline allocation to each county equivalent to 50 percent of a county’s actual allocation for financial year 2019/20. Based on a recommendation of allocating counties Ksh. 370 billion for financial year 2022/23, Ksh. 158.25 billion is therefore shared based on the 2019/2020 County allocation index and the balance of Ksh. 211.75 billion shared using the approved Third Basis for revenue sharing summarized above. Marsabit County is expected to receive Kshs 7,274 billion. 4.2 Spending priorities The County Government will finance all existing programmes and sub-programmes in the various departments. All sectors will receive funding to enable them provide service to the residents. In the medium term, priority will be given to projects and programmes geared towards completing the projects prioritized in the CIDP 2017-2022, responding to the challenges of insecurity and drought and accommodating the challenges posed by the oncoming electioneering period and the COVID 19 health impacts. The County will also work to support the completion of the legacy ‘the big 4 agenda’ projects and hence the priorities in spending. In the FY 2022/23, 25% of the county funding will be allocated to health care services, 22% to finance and economic planning which focusses on ward funds, 7% to education, skill development and youth and sports and 6% to water, environment and natural resources. 34 Tourism, Culture and Trade Industry and Social Services enterprise 2% development Roads and public works 1% 5% Water, Environ & County Assembly Physical Planning and Natural 10% Development, 6% Energy, Lands, Municipality 3% Administration, coordination County Executive and ICT 11% 3% Finance and economic planning County Health Services 22% 25% Agriculture, Livestock and Education, Skill development, Youth and sports County Public Service board fisheries 1% 4%7% Figure 5: Ceiling projections per sector Table 10: Sector ceilings recurrent and development FY 2022/23 FY 2022/23 Rec Dev Total County Assembly 788 52 840 County Executive 401 523 924 Finance and economic planning 1,093 756 1,848 Agriculture, Livestock and fisheries 132 204 336 County Public Service board 81 3 84 Education, Skill development, Youth and sports 337 251 588 County Health Services 1,362 738 2,100 Administration, coordination and ICT 244 8 252 Energy, Lands and Urban development 92 160 252 Roads and public works 73 347 420 Water, Environ & Natural 108 396 504 Trade Industry and enterprise development 38 46 84 Tourism, Culture and Social Services 95 73 168 4,845 3,556 8,401 35 4.3 Medium Term Expenditure Estimates In the medium term the government plans to spend Kshs. 8.401 billion on in FY 2022/23 and Kshs. 8.914 billion and Kshs. 9.185 billion in FY 2023/24 and FY 2024/25 respectively. Health care services has the biggest allocation as the county government moves towards offering universal healthcare to the county residents. As the government enhances service delivery, the other high beneficiaries include public services and special services, transport services, water services as well as education sector. 36 Table 11: Summary of Indicative Sector Ceilings for FY 2019/20 – FY 2021/22 County Departments Total Expenditure Kshs. % Share of Total Expenditure Actual Revised Projections Estimate Ceilings Projections expenditure Estimates s 2020/21 2021/22 FY FY FY 2020/21 2020/21 2022/23 2023/24 2024/25 2022/23 2023/24 2024/25 County Assembly 691 869 840 891 919 10% 10% 10% 10% 10% County Executive 1,053 1,085 924 891 919 15% 12% 11% 10% 10% Finance and economic planning 959 2,062 1,848 1,872 1,837 13% 23% 22% 21% 20% Agriculture, Livestock and fisheries 322 292 336 446 459 4% 3% 4% 5% 5% County Public Service board 80 103 84 89 92 1% 1% 1% 1% 1% Education, Skill development, 467 629 588 624 643 6% 7% 7% 7% 7% Youth and sports County Health Services 1,987 1,846 2,100 2,407 2,572 28% 21% 25% 27% 28% Administration, coordination and 255 310 252 178 184 4% 3% 3% 2% 2% ICT Physical Planning and Development, 213 273 252 267 276 3% 3% 3% 3% 3% Energy, Lands, Municipality Roads and public works 383 555 420 446 459 5% 6% 5% 5% 5% Water, Environ & Natural 572 660 504 535 551 8% 7% 6% 6% 6% Trade Industry and enterprise 129 105 84 89 92 2% 1% 1% 1% 1% development Tourism, Culture and Social 93 156 168 178 184 1% 2% 2% 2% 2% Services Total Projections 7,203 8,945 8,401 8,914 9,185 100% 100% 100% 100% 100% 37 In the light of resource envelope, there is reduction of equitable share from Kshs. 6.8 billion in FY 2018/19 to Kshs. 6.64 billion in FY 2019/20, therefore, the expenditure for the departments/ sectors will be reduced by 4% during the FY 2019/10 apart from health services which still remains the top priority for the county government as well as the National Government Big Four Agenda. For the FY 2020/21 and 2021/22, the expenditure will increase by 2% annually. Conditional grants and loans will be used for the designated priority areas, implying that these funds will not be shared amongst the Departments. The various conditional grants and loans that relate to specific sectors include: Table 12: Conditional Grants and Loans by Beneficiary Departments Financial Year Compensation for Road Rehabilitation of Other Loans User Fees forgone Maintenance Village and Grants Fuel Levy Fund Polytechnics 2017/18 6,872,636 181,777,695 29,598,081 149,876,862 2018/19 6,640,000 184,360,000 26,280,000 461,060,000 2019/20 6,643,714 192,258,938 15,558,298 527,605,108 2020/21 6,643,714 192,258,938 15,558,298 527,605,108 2021/2022 6,643,714 192,258,938 15,558,298 527,605,108 Department Health Services Roads & Public Education, Skills Various Works Development, Departments Youth and Sports 4.4 Baseline Ceilings The baseline for setting expenditure ceilings is consistent with the need to match the current departmental spending levels with resource requirements. In the recurrent expenditure category, non-discretionary expenditures including salaries to county employees, statutory deductions such as NHIF and employer contribution to provident funds takes the first charge. Compensation to employees covering those staff in all dockets providing services on behalf of County Government accounts for about 35% of the total revenues. The expenditure on operations and maintenance accounts for 25% of projected total revenue. About 47% of the total revenue will be available to finance planned development expenditure. However, additional development expenditure that may be targeted by the County Government can only be funded through borrowing from the domestic and foreign sources, as well as donor grants tied to projects. Development expenditures are shared out on the basis of the MTP III and will be flexible to be adopted to the 3rd CIDP priorities as well as other strategic interventions to faster growth as outlined by the manifesto of the current governorship. The following guidelines are used: 38  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.  Strategic policy interventions: priority is also given to policy interventions covering the entire county, cohesion and integration, social equity and environmental conservation and priorities of the County Government.  Counterpart funds: priority is also given to adequate allocations for donor counterpart funds. This is the portion the Government must fund in support of the projects financed by development partners. Usually it accounts between a quarter and a third of the total cost of the project. 4.5 Finalization of spending plans The finalization of the detailed budgets will entail thorough scrutiny to curtail spending on non-productive areas and ensure resources are directed to priority programmes. Since detailed budgets are scrutinized and the resource envelope firmed up, in the event that additional resources become available, the County Government will utilize them to accommodate key County strategic priorities. 4.6 Details of Sector Priorities The MTEF for FY 2022/23 will ensure that there is continuous resource allocation based on the programme priorities aligned to the CIDP 2018-2022 and is designed to respond to the CIDP 2022-2027 which will be prepared by the next County Administration by 1st September 2022 after the general elections. Consequently the next executives manifesto will be seamlessly integrated into the MTEF framework.. The MTEF for FY 2022/223 also ensures continuity in resource allocation based on prioritized programmes aligned to the CIDP 2018- 2022 and to augment the National government priorities espoused in the Budget Policy Statement 2022. The sector achievements, sector challenges and the sectors medium term plans and usage are based on the Sector Working Group Reports. These were prepared through a consultative process that involved stakeholders and give the current status and how the sectors will be funded. Areas Description 4.6.1 Agriculture, Livestock and Fisheries Development Name of sub-sectors:  Agriculture;  Livestock (Production and Veterinary services) and  Fisheries To be the leading agent towards the achievement of food security Sector Policy blueprint: for all, employment creation, income generation and poverty reduction in Marsabit County 39 Areas Description Sector mandate: To improve the livelihood of the people of Marsabit County by promoting competitive agriculture through creation of enabling environment, provision of support services and ensuring sustainable natural resource management. Key sector  26MT of assorted drought tolerant seeds were purchased achievements and distributed to 6000(4328F, 1672M) farmers, 5000) (1286M, 3714F) farmers were able to access extension services. Horticultural seeds and farm tools were also distributed.  Supporting farmers with farm mechanization services e.g. tractor services and provision of pesticides  Three Prefeasibility studies for production and appropriate technologies conducted at Bori Spate Irrigation site in Sololo, Kinisa Irrigation project in Moyale, Logologo Irrigation project in Laisamis with support of GiZ-DRP.  Teff and Irish potatoes producer groups were supported and in the process of forming one farmers’ cooperative society in Logologo.  Under the livestock asset protection, the Kenya Livestock Insurance program made the short rains 2018 payout worth Ksh 360,000 to 140 beneficiaries in Dukana in North Horr Sub-county.  The County domesticated the National Livestock Policy by drafting a County Livestock Policy which was ascended to. A draft rangeland management Policy was also developed. Livestock trade and marketing bill is at the county assembly stage.  The Livestock department with support from partners procured 600 Galla goats, 11 dairy cattle and 500 indigenous chicken were distributed to communities.  The Livestock Department distributed 1000Kg certified grass seeds and the partners distributed 2,500Kgs. Pasture week was also conducted to encourage fodder farming.  The fisheries department received Ksh 110M through the EU/IDEAS/LED Project for commercialization of fishing activities in the county. Sector challenges  Lack of adequate funding to the Department  Low adoption of technologies  High post- harvest losses  Pests and disease for crops  Low production and productivity  Frequent livestock disease out breaks  Vast terrain with poor infrastructure and inadequate logistic support  Poor road network  Inadequate and outdated fishing equipment  Inadequate cold storage facilities 40 Areas Description  Weak cooperative societies  Inadequate technical staff  Low research -extension liaison; and  Frequent drought.  Weak sector coordination Sector’s medium term The sector is projected to get Kshs 132 million shillings for plan and sector Usage recurrent expenditure and Kshs 204 million shillings for development in the FY 2022/23 financial year. The sector will spend the allocation to; purchase farm inputs and equipment, expansion/rehabilitation of irrigation scheme using ground water/flood based water harvesting, adoption of climate smart technologies, demonstration on nutrition, conduct surveillance of pest and disease, support expansion of asset creation program, enhance supply of quality, creation of livestock holding ground, promotion of apiculture, protect livestock assets through livestock insurance, improve livestock health and welfare through vaccination, improve community/public health, strengthen livestock disease surveillance, strengthen farmer extension-research liaison, conduct frame survey, strengthen fish value chain, enhance fisheries governance and sector coordination, strengthen BMUs and fisheries cooperative. 4.6.2 Health Services - Preventive & Promotive health services Name of sub-sectors: - Curative & rehabilitative health services - Health administrative services An efficient and high quality health care system that is accessible, Sector Policy blueprint: equitable and affordable for every Kenyan Sector mandate: To promote and participate in the provision of integrated and high quality curative, preventive and rehabilitative services that is responsive, equitable and accessible to county residents Key sector  Improved Health service delivery: achievements since o Skilled deliveries (64.9% to 68.8%) 2019/2020 th o 4 ANC coverage (46.3% to 51.6%) o Workload (1,184,669 to 1,008,038) o IMAM cure rate-SAM (74.2% to 68.9%).  Improved human resource numbers from 1047 to1252; Sector challenges:  The sector suffers from an unacceptably low number of Health workers and specialists across all the cadres from that recommended by the World Health Organization.  Prevalence of preventable diseases such as water borne disease still affects over 24 % of the population;  HIV prevalence has progressively increased over the last 16 years, currently at 1.4%.  High maternal & newborn mortality  Low ANC coverage 41 Areas Description  Increased number of adolescent pregnancy currently at 17%  Inadequate health sector allocation that is not adhering to program based budgeting.  Increase in Non-communicable diseases and emergence of neglected tropical diseases e.g. Kalazaar, diabetes etc  Lack of technical input in sector priorities during public participation  Inadequate equipment  Inadequate Essential Medicines & Medical Supplies for increasing population  Knowledge gap in budget making process  Poor health seeking behavior of our population  Diminishing partner support-affecting integrated outreach services  Recurrent pending bills  Inadequate free ambulance services fund  Frequent Stock out of Oxygen in the referral hospitals & high cost of procurement of the same Sector’s medium term The sector intends to address these challenges by: plan:  Investing heavily in recruitment and promotion of health workers.  Launching robust preventive, promotive and curative health services.  Operationalization of existing non-functional facilities.  Lobbying for Program based budgeting and increased health sector allocation for various programs and pending bills.  Increasing allocation for Essential Medicines and medical supplies  Capacity building of health care workers on essential services  Automation of referral hospitals and other peripheral facilities  Infrastructure & connectivity through LAN and WAN  Emphasize on guided public participation on development projects  Enhance partner collaboration Sector Resource Usage: The sector intends to use allocated resources to:  Upgrade some existing dispensaries facilities to health Centre and hospital status  Increase the workforce numbers by 20%  Promote and re-designate current workforce  Fund preventive, curative and administrative programs.  Procure adequate Essential Medicines & Medical Supplies and specialized equipment  Capacity building of health workforce  Automation of Marsabit County referral hospital and Moyale sub county referral hospital  Establish an oxygen plant at Marsabit County Referral hospital 4.6.3 Education, Skills Development, Youth and Sports 42 Areas Description Name of sub-sectors:  ECDE  Skills Development  Youth and Sports To be the leader in the provision of quality education, vocational Sector Policy blueprint: training, youth and sports programs in the country Sector mandate: To transform lives through quality education, vocational training, youth development and sports Key sector  Constructed 28 double door age appropriate ECDE pit achievements latrines.  Constructed 20 ECDE classrooms  Supplied 11 ECDE centres with furniture and teaching/learning materials.  Fenced six ECDE centres.  Supplied and installed five uni-huts for mobile ECDEs.  Constructed four kitchens/stores across the county.  Erected outdoor play materials in four ECDE centres.  Renovated/repaired four ECDE classrooms.  Supplied and installed three water tanks and fitted with gutters.  Procured and installed two energy saving stoves/jikos.  Installed one solar lighting system and accessories Sector challenges  Inadequate Early Years Education (EYE) teachers.  Inadequate infrastructure, (Classrooms, VTCs and Sports grounds)  Insufficient teaching/learning materials for the new Competency Based Curriculum (CBC).  Costly implementation of the new Competency Based Curriculum (CBC).  Untrained Early Years Education (EYE) teachers.  Low capacity enhancement of the Early Years Education (EYE) teachers.  Pastoralism/nomadism leading to low enrolment and school dropouts.  Transport/logistics problems during implementation and monitoring of projects.  Working environment [inadequate office space for departmental county staff]  Transport logistics problem for sports clubs in the league and low funding for the league leaving several wards without playing.  High demand for sports items against a low budget. 43 Areas Description  Lack of training grounds for sports persons who rely on school grounds  High usage of drugs and venture into crime by youth  High number young boda bodas riders who are accident prone due to lack of basics training and protective attire  Lack of monitoring of VTCs on quality assurance, and inadequate tools for various courses  Inadequate post training support for VTCs graduates  Need for diversification of courses that takes into consideration competitive courses relevant to the market demand. Sector’s medium term Increased transition levels from 4500 to 5500, Improved quality plan and sector Usage of pre-primary education through reduced teacher learners ratio from 82:1 to 60:1, increased access to TVET institutions through free vocational training scholarships to enhance enrolment from current 600 to 900, Improved quality of technical and vocational education & training through hiring of competent instructors in competitive courses e.g. Motor Vehicle Mechanics, Enhanced Development of sport skills and talents through long-term engagement in leagues and increase youth participation in meaningful employment and entrepreneurship by capacity building the youth. 4.6.4 Department of roads, Public works, Transport and housing development 1. Roads and Transport. Name of sub-sectors: 2. Public works and housing development To be a leading department committed to provision of prompt, Sector Policy blueprint: effective and efficient technical services in roads and public works Sector mandate: To Design, construct and maintain rural and urban county road networks. Protection of county road reserves. Design, document and supervise building works and projects. Maintain inventory and manage government estates. Conduct suitability test for drivers. Inspection of government vehicles. Construction of low cost houses/. Key sector  Upgrading of 4.3km to bitumen standards (2.4 km tarmac done achievements 1.3 km of earth works on going)  Grading of 385 km of roads completed  Gravelling of 101 km of roads completed  Opened up 163 km of new roads  Construction of 1883mtrs of Slab & Drift completed.  Documented 348 projects County Wide  Supervised to completion 278 projects Countywide. Sector challenges:  Inadequate funding for the line items of the specific activity targeted in the annual development plans;  Sector Work plan is not properly followed as planned; and 44 Areas Description  Stringent procurement procedures thus occasioning delay in timely project implementation or complete failure to start the project  Inadequate means of transport to other parts of the county affected project implementation, monitoring and evaluation.  Insecurity. Sector’s medium term  Capacity building for all technical staff as prescribed by their plan: professional Institutes.  To grade 1800 km of roads county wide.  To upgrade 600 km of roads though gravelling wet compaction.  To improve County drainage system to Construction of 3000 meters of Drainage slab and drifts,720 Lm of Culverts  To cover all the open-channel drainage system within town to closed-Drain system to address safety concern by public.  To construct 6no.footbridges to improve accessibility to Schools and Health-centers.  To open up 400km of new roads through bush-clearing in order to increase County road networks.  To tarmac 8.5 Km of roads within Marsabit and Moyale town for better accessibility to C.B.D and Market centre.  To construct and well equip Material test Laboratory for timely quality control in County roads and building county projects.  Adoption of Roads2000 strategy on County Roads Project.  Strengthening and Improvement of Roads Policy and Legal Framework.  Embracing of new technologies such as cobblestones, Dou nou Technology as an alternate road surfacing method where appropriate.  To fully maintain and service all plants and machinery to good working conditions.  Construction of low cost housing units.  Prepare tender document for all building projects for the county. Sector Resource Usage: The sector is getting an allocation of 413, 508, 241 shillings for both recurrent and development expenditures in the next fiscal year and has planned to spend on upgrading roads to bitumen standards; also upgrading to wet compaction and finally continue maintaining the already existing roads with a total allocation of 3.332 billion. 4.6.5 Water, Environment and Natural Resources  Water services Name of sub-sectors:  Environment and Natural Resources An enabling environment for access to safe water and sanitation Sector Policy blueprint: services, clean secure and sustainably managed environment and natural resources conducive for county prosperity. Sector mandate: To effectively promote, conserve, protect, monitor and sustainably manage the environment and natural resources for provision of safe water in a clean/sustainable and secure environment. 45 Areas Description Key sector  Domestic water access has been improved by purchase and achievements distribution of 110Million plastics to both urban and rural areas to enable storage during water trucking  8 boreholes drilled in the larger County to increase water access and availability to 40,000 people and 200,000 livestock units  20 earth pans constructed and desilted to increase availability of water to rural residents in the larger County and to provide water to livestock units  2 underground water storage tanks of 100m3 constructed in the county to increase availability of safe drinking water household level and act as storage facility for drought emergency water trucking.  some boreholes installed with solar equipment to reduce operation and maintenance cost for water to residents of Marsabit county. Sector challenges:  Disbursement of funds from national treasury slow pace of project implementation  Lengthy and centralized procurement process affects effectiveness and efficiency as far as service delivery is concern  Inadequate and aging technical staff visa vis vastness of the county  Low morale of staffs due to unwarranted delay in career progression and promotions (stagnation in one JG)  Misplace priorities in terms resource target arising from communities during public participation in budget get making process as well as under-costing of projects  Effective monitoring of project is also uphill task with limited number of technical personnel and a times constrictors do substandard work or poor workmanship  Recurrent drought hence reducing survival rate of trees seedlings planted  Low level of community understanding and vastness of the county hence expensive to conduct public forums on environmental awareness  Low/ zero allocation of budget to environment sector hence not achieving sector goal.  Limited environmental extension service Sector’s medium term  Improving access to clean and safe drinking water plan:  Increasing water storage and harvesting structures  Enhancing water catchment protection  Increasing awareness on environmental conservation  Improving natural resource governance Sector Resource Usage:  Drilling of Boreholes  rehabilitation of boreholes  construction Medium sized dams of 45,000M3  de-silting and expanding of Earth pans  construction of Masonry tanks of (50-100m3)  construction of (100m3) Underground tanks  procuring and supply Plastic water tanks of 10, 000litres  Planting of tree nursery 46 Areas Description  planting Fruit trees and initiating farm forestry  Rehabilitating site through gullying healing  Construction of check dams  Conducting county Natural Resource Management (NRM) forums at head quarter level  Formulation of NRM policy  Training of EMCs  Clearing of invasive species  Establishing of green schools. 4.6.6 Lands, Energy & Urban Development  Lands Name of sub-sectors:  Energy  Urban Development Excellent land management and vibrant, well planned, urban centers Sector Policy blueprint: and world class cost effective renewable energy infrastructure in Marsabit County Sector mandate: To facilitate and enable sustainable land use and growth of the urban centers through efficient land administration, equitable access, secure tenure, sustainable management of land-based resource and well-planned urban centers and promotion of clean, green, efficient, Effective, affordable and sustainable renewable energy resources Key Sector  South Horr town was planned in the financial year Achievements  validation of plans for the following towns: Kargi Logo logo Dambala Fachana, Kalacha, Upper Technical and Merille centers  Extension of control points and planning for Sololo town was done  Additional Solar Street Lights for Sololo Makutano and Anona was installed at a total cost of Kshs.1.2 Million,  Feasibility studies for Mount Kulal on potential large-scale Wind renewable energy Technology on going facilitated by Kengen  Effective solid waste management in urban and trading centers  Effective management of the public facilities. Sector challenges:  Shortage of technical staff, especially Physical Planners, Draughtsman or Cartographer and the department has shortage of transport (vehicle)  Ineffective service delivery due to inadequate personnel and lack of modern survey and planning equipment’s  Lack of institutional, legal and regulatory framework for Renewable energy as well as investment and lack of technical staff in the County  Inadequate funds to promotion and development of Renewable energy and Lack of awareness on the importance of Renewable Energy  Inadequate information on existing land and urban development status or plans from old establishments.  Lack of policy framework to guide urban development activities 47 Areas Description Sector’s medium-term  Carrying out of cadastral survey for all approved plans, plan: demarcation of the already declared land adjudication sections, Physical planning of upcoming towns and Fast-tracking of title deeds of all land adjudicated sections in the County.  Purchasing of modern equipment’s for effective service delivery and recruitment of skilled personnel and on job training for staff that are already at the department  Improve access to affordable, reliable, secure and competitive energy services as well as to ensure prudent Environmental/Climate change, social, health and safety considerations.  Prioritise and promote development of indigenous primary and secondary energy sources for Mini grids development as well additional street lights and fast racking on the development of the county energy policy for effective service delivery  formulate urban legislation and policy frame works and fast track on the approval of the town by-laws by the County assembly  increase scope of waste management programmes with in the county in order to meet the need of the growing population for public safety and sanitations Sector Resource Usage:  The sector intends to use allocated resource to increase number of technical staffs by 65%, to increase efficiency in service delivery,  Increase the number of titles issued by 2200 titles, through increase number of LDPs developed by additional 10 urban plans and complete on-going adjudication work and fast track title deeds for already completed adjudication sections.  The sub- sector intends to use the allocated resource to increase number of skilled personnel by 43%, to increase the efficiency in service delivery,  Establish renewable energy center for research and promotion of renewable energy technologies,  Formulation of renewable energy policies and regulations.  To increase the number of out sourced centers for waste collections by additional 5 centers  Establish functional municipality for efficient and effective urban service deliveries. 4.6.7 Trade, Industry and Enterprise Development Name of sub-sectors:  Weight and measures  Trade services  Cooperatives  County Enterprise fund To be the leader in promoting innovative Business Growth and Sector Policy blueprint: Investments for wealth creation in County. Sector mandate: To create a vibrant and Conducive environment for Enterprise Development and Economic Growth in the County. 48 Areas Description Key sector achievements  Construction of Marsabit Modern Market on going with an aim of accommodating about 700 traders and this will give them a competitive environment to do their business. This will improve the traders’ turnover and incomes. Completion date targeted for Dec 2019.  Two Market stalls constructed at Hellu manyatta and Dambala fachana this will give traders a decent premises to do their business with an aim of improving their turnover and incomes. Dirim Gombo market construction did not take off due land acquisition issue.  Boda boda shade constructed at Damballa fachana.  Car washing machines for Four (4) youth groups in Butiye.  11 Co-operatives Societies formed along the livestock and ushangaa value chains . Sector challenges  The major challenge was inadequate funding for the line items of the specific activity targeted in the annual development plan for the financial year  Stringent procurement procedures thus occasioning delay in timely project implementation or complete failure to start the projects  Disruptions of the operations of the IFMIS due internet network failure  Inadequate means of transport to various parts of the County affected project implementation, monitoring and evaluation.  Poor road infrastructure and communication network in parts of the county affected the quality of monitoring and evaluation of the projects. Sector’s medium term The sector is getting an allocation of 248 million shillings for both plan and sector Usage recurrent and development expenditures in the next fiscal year and has planned to spend this on Modern market completion as well as County Enterprise revolving fund. In the medium term the sector is projected to have a total allocation of about 750M shillings. 4.6.8 Tourism, Culture & Social Services 4.6.9 Public Administration, Coordination of County Affairs, Disaster Management and ICT Name of Sub-sectors  Public Administration  Cohesion, Integration and Disaster Management  Civic Education and Public Participation  ICT To be a leading Department in public policy formulation, implementation, coordination, supervision and prudent resource Sector Policy blueprint: management. Sector mandate:  The mandate of the Department is derived from The County Government Act 2012 and Executive Order No. 1/2014, which is to spearhead provision of public administration, 49 Areas Description coordination and ICT services of the county government. The decentralized section is charged with the responsibility of managing and coordinating devolved functions at the sub county, ward and village level to ensure proper service delivery to the citizens. Key sector achievements  Formation and registration of Ushanga initiative cooperatives.  Renovations of facilities at Bongole resort.  Completion and equipping of loglogo rescue center.  Development of social protection policy in collaboration with other partners.  Development of Gender policy in collaboration with other partners  Development of Child protection policy in collaboration with other partners  Celebrated international world women day in Laisamis Sub County.  Collected artefacts from 15 diverse communities within Marsabit County for display and marketing.  Equipping of Social Halls at Sessi, Dukana and Balesa.  Construction of Public Baraza shed at Shur.  Fenced Hellu cemetery.  Constructed social halls at Gar qarsa and Goro rukesa.  Renovations of social halls at Milima tatu and Kinisa,  Provision of food items to 7 children homes  Abandonment FGM and child marriage trainings for community, leaders, teachers and in and out of school children Loglogo and Illeret Wards. Sector challenges  Insufficient funds commensurate to the needs of the county given the level of need and the vastness of the county.  Political/executive interference in prioritization of project proposals by communities during county planning and budgeting processes.  Increased inter-tribal conflicts on administrative boundaries, water and pasture which affected county projects implementation.  Poor connectivity in the county. Most of the areas such as Moite, Illeret, Buluk etc. have little or no access to network. This prevents proper mobilization.  Global warming that has resulted in frequent droughts, flash floods and wild fires that has stretched county capacity to plan and respond.  Constant vandalism of fiber optic cables along Isiolo –Marsabit highway hampering internet connectivity.  Inadequate energy sources to power IT infrastructure. Sector’s medium term  The department will focus on improving Citizen participation plan in government programs by conducting public forums to 50 Areas Description enhance citizens’ capacity to participate in county programs, improve internet and infrastructure connectivity through Wide Area Networks to all sub Counties in the medium term, Establish the village administrators unit after passing the bill to improve service delivery through improved mobility, construction and equipping of administrators offices and training of officers and continuous engagement of communities on peace building processes. Sector Usage  In the medium term the department through Civic education sub sector will conduct 45 annual civic education forums Countywide, Construct a Sub county Administrators’ office at Saku Sub County and deputy sub County administrators offices for Sololo, Maikona and Loiyangalani and their respective ward administrators  The department will also do internet connectivity to three remaining sub counties of Moyale, Laisamis and North –Horr and equally cascade to 8 wards which are in proximity to the NOFBI Infrastructure  Cohesion sub sector will draft County actual plan on countering violence extremism in Marsabit County and have Continuous engagement of communities on peace building processes. 4.6.10 Finance and Economic Planning Economic Planning, Revenue, Procurement, Accounts, Audit, Name of sub-sectors: Budget Improve management of public finances and economic affairs of Sector Policy blueprint: the county Sector mandate: To provide overall leadership and policy direction in resource mobilization, management and accountability for quality public service delivery. Key sector  Compliance to mandatory county planning and PFM documents achievements o CIDP 2018-2022 o ADP 2020/21 o CFSP 2020/21 o CBROP 2020/21 o PBB 2020/21 o Finance Act 2020  The budget absorption rate improved from an average of 70% to 92%. Sector challenges:  Low adoption of new technical information like CIMES  Revenue collection was reduced due to insecurity in the county  Poor information breakdown especially in procurement application  Finance Act was prioritized over finance policy  Audit committee was not established previously until Dec 2018  Key revenue centers not established 51 Areas Description  Most of the revenue staff were paid on commission. Sector’s medium term  The sector intends to automate the revenue collection system plan: throughout the county  Adoption of the CIMES system  Capacity building of the public on e-procurement system  Development policies  Monitoring and evaluation of projects on quarterly basis Sector Resource Usage:  Automation of revenue to the 3 remaining sub counties namely Moyale, North Horr and Leisamis  Training of 2 staffs from each department on CIMES system  Capacity building of 30 people on e-procurement in every ward  Development of at least 2 policies  Preparation of 12 M & E reports of the projects within the county. 4.6.11 County Public Service Board  Human Resource Management and Development Name of sub-sectors:  Administration and Finance, Board services, Ethics, Governance and Compliance and ICT To be the champion in transforming devolved public service Sector Policy blueprint: delivery. Sector mandate: To effectively and efficiently transform public service delivery through provision of professional, ethical and responsive human resources for the realization of county development goals Key sector  Provided technical assistance to County Human Resources achievements Advisory Committee on Human Resource matters,  Promotion and Redesignations of county public Officers- Achieved for the department of health which constitute almost 60% of our County work force.  Upgrading of salaries and benefits for ECDE teachers in the County Government of Marsabit in line with draft scheme of service.  Operationalization of County Human Resource Management Advisory committee (CHRMAC) as decentralization of Human Resource Management in the public service to facilitate effective discharge of the delegated functions.  The Board has embraced Joint Consultative meetings with County departments and other stakeholders over emerging human resource matters.  Operationalized the contributory pension scheme for the County Public Service and ensured alternatives for the public officers. The employees can voluntarily join CPF and LAPFUND as service provider. Sector challenges: In the discharge of its Constitutional mandate the Board experienced a number of challenges. Key among them were: 1. Inadequate funding and delay of exchequer releases Inadequate funding adversely affected implementation of planned programmes and activities while delay of exchequer releases resulted in the Board accumulating pending bills. Payment of 52 Areas Description these pending bills from the 2017/18 financial budget will affect planned activities for the financial year. 2. Inadequate office accommodation Inadequate office accommodation for staff leading to unfavorable working conditions such as congestion, overstretched and sanitation facilities. 3. Industrial Conflict between Counties and Health Sector Unions There were strained labour relations between county Governments and health sector unions arising from failure by most counties to recognize the unions. This has resulted in prolonged stalemate between the counties and the health workers adversely affecting service delivery in the health sector. 4. Lack of a Negotiating Framework Lack of a clear negotiating framework for addressing industrial disputes at the counties led to delay in resolving disputes between the county governments and workers unions and subsequent signing of CBAs. 5. Shortage of technical staff Shortage of technical staff in the county government such as engineers, architects, surveyors, doctors etc. This has been aggravated by mass exodus of technical staff to private sector and foreign countries. 6. Performance Management Performance management in the public service has not been fully embraced. This can partly be attributed to negative performance management culture in the public service and lack of effective performance measurement tools. The Board is addressing this challenge through provision of advisory to the County Government to revive, operationalize and transform the directorate of Performance Management. 44 7. Political Interference More often than not, the political class interferes with the independence of board to discharge its mandates as prescribe in the Constitution and relevant acts. 8. Non Compliance to the laid down rules and regulations Despite the laid down policies, norms and procedures in managing and administering the county public service, sometimes the board finds anomalies in ways departments execute vested interests without regard for the above and the existing guidelines and circulars. 9. Medical and Insurance Covers For Public Officers 53 Areas Description Despite the requirement by law, the year under review the public officers have not benefited from medical cover and or the insurance covers. Thus the Board had earlier provided advisory on the same. 10. Inadequate Capacity Building Activities at the Departmental Level There were very minimal capacity building activities being undertaken by most departments for the public officers. Lack of training and development denies the officer an opportunity for career growth, leading to incapacitation hence inefficiency in public service delivery. 11. Lack of adequate platform of ICT, Skills and Services Inadequacy in information communication and technology platform in the county is an issue to contain with that has posed mega challenges in the ways we communicate, share information and support service delivery and storage of data and data security. If investment can be done on ICT infrastructure the county can leverage on it by having more efficient and effective ways of communication, information sharing, data storage and data security and cuts cost. Sector’s medium term  Competitively Sourcing /Recruitment qualified employees into plan: the public service.  Employee Welfare management of entire public servants in the county.  Staff training and development- Oversee the training and development of all public officers in the county.  Operationalizing modern human resource information system platform.  Job evaluation in conjunction with SRC and other stakeholders.  Operationalizing Performance management systems in the county public service.  Reviewing human resource policies and regulations to enhance public sector delivery.  Infrastructural development at the board main office. Sector Resource Usage:  To increase county workforce for realization of effective and efficient service delivery to the public.  To have 100% county employee staff welfare management registered and subscribed to pension scheme.  To have 100% county employee Staff training and development- Oversee the training and development of all public officers in the county.  To have one operationalizing modern human resource information system platform.  Job evaluation in conjunction with SRC and other stakeholders.  Operationalizing Performance management systems in the county public service.  Reviewing one human resource policies and regulations to enhance public sector delivery. 54 Areas Description  Infrastructural development at the board main office. Explains what the sector intends to use allocated resources for. Give facts & figures for the whole medium term period. e.g. “The sector intends to use its allocated resources to expand its workforce by 40%; increase the number of health clinics by 35 units and train up to 500 community nurses to expand the outreach of county health services.” 55 4.7 Public participation/sector hearings and involvement of stakeholders The law requires that the input of the public be taken into account before the Budget proposals are firmed up. In this regard, the County government of Marsabit has made extensive consultations on the CFSP 2022 and held a county people’s forum that harmonized the community issues, needs, priorities into the raw data guiding the development of the CFSP 2022. Public Hearings were held between 23rd and 24th February 2022 with sector presentations being made at ward levels. Dukana ward public participation on 23rd/2/2022 Golbo ward public participation on 23rd/2/2022 North Horr ward public participation on Township ward public participation on 24th/ 2/2022 24th/2/2022 The key proposals arising during the Public Hearings included: 56 Table 133: Proposed allocations by Beneficiary Departments SUB DEPARTMENT PROPOSED COST COUNTY WATER & ENVIRONMENT 200,850,000.00 TOURISM, CULTURE,GENDER AND SOCIL SERVICES 11,000,000.00 HEALTH SERVICE 29,500,000.00 LANDS 27,500,000.00 MOYALE EDUCATION & SKILLS 61,150,000.00 AGRICULTURE,LIVESTOCK AND FISHERIES 2,500,000.00 TRADE 6,500,000.00 ROADS AND PUBLIC WORKS 20,500,000.00 SUB TOTAL 350,000,000.00 WATER & ENVIRONMENT 147,900,000.00 TOURISM, CULTURE,GENDER AND SOCIL SERVICES 3,500,000.00 HEALTH SERVICE 49,800,000.00 LANDS, URBAN DEVELOPMENT AND ENERGY 1,000,000.00 LAISAMIS EDUCATION & SKILLS 26,300,000.00 AGRICULTURE,LIVESTOCK AND FISHERIES 5,000,000.00 TRADE 4,500,000.00 ROADS AND PUBLIC WORKS 2,000,000.00 SUB TOTAL 250,000,000.00 WATER & ENVIRONMENT 85,915,000.00 TOURISM, CULTURE,GENDER AND SOCIL SERVICES 12,500,000.00 HEALTH SERVICE 66,000,000.00 LANDS, URBAN DEVELOPMENT AND ENERGY 2,500,000.00 NORTH EDUCATION & SKILLS 48,585,000.00 HORR AGRICULTURE,LIVESTOCK AND FISHERIES 6,000,000.00 PUBLIC ADMINISTRATION COORDDINATION 2,500,000.00 AND ICT TRADE 1,000,000.00 ROADS AND PUBLIC WORKS 25,000,000.00 SUB TOTAL 250,000,000.00 WATER & ENVIRONMENT 56,500,000.00 TOURISM, CULTURE,GENDER AND SOCIL SERVICES 55,000,000.00 HEALTH SERVICE 6,600,000.00 SAKU LANDS, URBAN DEVELOPMENT AND ENERGY 5,000,000.00 EDUCATION & SKILLS 12,400,000.00 ROADS AND PUBLIC WORKS 14,500,000.00 SUB TOTAL 150,000,000.00 57 There were specific challenges in conducting the traditional baraza type public discussions due to the following;  COVID 19 restrictions which resulted in the team holding meetings under strict COVID 19 prevention guidelines including giving priority to those already vaccinated while also accepting written submissions from interest groups and holding virtual consultations with community heads;  Insecurity in many parts of Marsabit resulted in peace meetings being held regularly. These meetings were also used to understand the priority issues affecting various administrative units and communities and these were formally documented and prioritized in this CFSP; and  The CIDP 2018-2022 comes to an end in June 2022 and the formal process for a new CIDP will be done as part of the next administration. To allow for flexibility the next executive to plan and given that there is an extensive public participation requirement for the CIDP 2022-2027, we have limited the CFSP 2022 to the transitional/bridging processes and prioritizing critical activities which are pervasive for Marsabit residents. Some of the key issues arising during the Public consultations included: 1. The need to prioritize health and emergency response in the short-term. The spending priorities take this into account and have defined the specific areas of intervention. 2. Insecurity as a result of politics and resource availability. The spending priorities have provided for forums for peace and the spending priorities take into account intermediate measures to ensure equality and cohesion. 58 2022/23 Wards Public Participation Report 2022/23 Wards Public Participation Report LAISAMIS SUB COUNTY Departments Proposed Projects Ward Location/Site Estimated Cost Water & Environment Purchase of Genset Generator with wheels. LogLogo Gudas sub location 2,000,000.00 Water & Environment Construction of concrete water tank Loglogo Gudas Sub location 1,500,000.00 Water & Environment Construction of 2 water troughs Loglogo Gudas Sub location 1,000,000.00 Water & Environment Construction of Generator’s operator house Loglogo Gudas Sub location 500,000.00 Water & Environment Construction of Genset Generator’s room Loglogo Gudas Sub location 500,000.00 Water & Environment Fencing of the Generators house Loglogo Gudas Sub location 500,000.00 Water & Environment Purchase of Genset Generator with wheels Loglogo Soriadi Sub location 2,000,000.00 Water & Environment Construction of concrete water tank Loglogo Soriadi Sub location 1,500,000.00 Water & Environment Construction of 2 water troughs Loglogo Soriadi Sub location 1,000,000.00 Water & Environment Renovation of Genset house Loglogo Soriadi Sub location 500,000.00 Water & Environment Purchase of Genset Generator with wheels for Soriadi 2 Loglogo Soriadi Sub Location 2,000,000.00 (Loltepes) Water & Environment Construction of 1 water troughs for Soriadi 2(Loltepes) Loglogo Soriadi Sub Location 500,000.00 Water & Environment Pipes overhaul and repair Loglogo Gudas 2,000,000.00 Water & Environment Construction of 1 water trough Loglogo Gudas 1,000,000.00 Water & Environment Repair of 2 concrete tanks Loglogo Gudas 1,000,000.00 Water & Environment Construction of concrete water tank at sanchir borehole. Loglogo Town 1,500,000.00 59 Water & Environment Water Piping system at sanchir borehole Loglogo Town 1,000,000.00 Culture & social Completion of girl’s rescue center Loglogo Town 2,000,000.00 Services Health Services Construction of staff house at Lbarok Dispensary. Loglogo Lbarok 2,000,000.00 Health Services Fencing of the Lbarok dispensary. Loglogo Lbarok 1,500,000.00 Water & Environment Construction of concrete water tank at Odhola village. Loglogo Ongeli Sub location 1,500,000.00 Water & Environment Piping from Gulsan borehole to Odhola village. Loglogo Ongeli Sub location 3,000,000.00 Water & Environment Purchase of 80 plastic water tanks of 5000 Liters(Vectus Loglogo Town 5,000,000.00 type) Water & Environment Purchase of Genset Generator with wheels for Kamboe Loglogo Kamboe 2,000,000.00 Gulsan Borehole. Culture & Social Equipping of kamboe social hall Loglogo Kamboe 1,500,000.00 Services Education & Skills construction of 1 washroom for Kamboe ECD Loglogo Kamboe 1,000,000.00 Water & Environment Piping of water from Gulsan Borehole to both Maisuk and Loglogo Kamboe 6,000,000.00 Nalagari Villages. Education & Skills Construction of changing rooms for both boys and girls. Loglogo Kamboe 2,000,000.00 Education & Skills Fencing of the football pitch at Kamboe Loglogo Kamboe 2,500,000.00 Water & Environment Water piping from main tank to KAG Church. Laisamis/M Manyatta juu and 1,500,000.00 erille sabamba villages Water & Environment Provision of 43 water tanks of 5000 liters each Laisamis/M Town 1,500,000.00 erille Water & Environment Construction of manyatta juu ECD toilet Laisamis/M Manyatta juu 400,000.00 erille 60 Water & Environment Purchase and installation of solar system in laga ferji 1 Laisamis/M Silapani Sub location 1,300,000.00 borehole in Silapani sub location. erille Water & Environment Piping system from laga ferji 2 borehole to manyatta Ntiliya Laisamis/M Manyatta Ntiliya 2,000,000.00 village. erille Health services Construction of maternity ward at Nairibi dispensary. Laisamis/M Nairibi 3,300,000.00 erille Health Services Construction of toilets at Kamotonyi dispensary. Laisamis/M Kamotonyi 500,000.00 erille Health Services Fencing of Kamotonyi dispensary. Laisamis/M Kamotonyi 1,500,000.00 erille Education & Skills Construction of Kitchen at New Dawn Primary School. Laisamis/M Merille 1,700,000.00 erille Education & Skills Fencing of New Dawn Primary School. Laisamis/M Merille 500,000.00 erille Education & Skills Construction of kitchen and energy saving jiko at Merille Laisamis/M Merille 1, 800,000.00 polytechnic erille Health Services Construction of staff quarters at Merille Dispensary. Laisamis/M Merille 3,000,000.00 erille Land Urban Identification of roads and give allotment numbers. Laisamis/M Merille 1,000,000.00 Development And erille Energy Water & Environment Servicing of day life reverse osmosis at Lesola borehole Laisamis/M Sakardala 500,000.00 erille 61 Water & Environment Fencing of Sakardala dam Laisamis/M Sakardala 500,000.00 erille Education & Skills Fencing of Sakardala Primary School Laisamis/M Sakardala 2,000,000.00 erille Education & Skills Fencing of Sirata village stadium Laisamis/M Sirata 1,500,000.00 erille Water & Environment Renovation of Tirgamo borehole, water tank, troughs and Laisamis/M Tirgamo 2,000,000.00 general service. erille Water & Environment Renovation of manyatta Naigero and manyatta Korante Laisamis/M Naigero & Korante 1,500,000.00 borehole. erille villages. Water & Environment Construction of concrete tank with piping at manyatta Laisamis/M Nkutoto Village 2,000,000.00 Nkutoto. erille Health Services Construction of Losidan nurse quarters. Laisamis/M Losidan 2,500,000.00 erille Water & Environment Piping of water from County borehole to Dispensary and Laisamis/M Lontolio 2,000,000.00 Lontolio Primary. erille Education& Skills Construction of Weltei ECD class Laisamis/M Weltei 1,500,000.00 erille Education & Skills Renovation of Sokotei ECD class Laisamis/M Sokotei 500,000.00 erille Health Services Equipping of Ndikir Dispensary Laisamis/M Ndikir 2,000,000.00 erille Health Services Fencing of Lontolio Dispensary Laisamis/M Lontolio 1,500,000.00 erille 62 Water & Environment Connection of water supply system to all Kargi health Kargi/Sout Kargi Health center 500,000.00 center block. h Horr Water & Environment Piping system and masonry tank at Matarbah, Dupsahai, Kargi/Sout Matarbah, Dupsahai, 4,000,000.00 Bulyare and Kuya Villages. h Horr Bulyare & Kuya Villages. Water & Environment Distilling Kuya water pan Kargi/Sout Kuya, Dupsahai and 2,500,000.00 h Horr Kargi Water & Environment Piping system and masonry tank Kargi/Sout Elegela, Uyam and 4,000,000.00 h Horr Odhola villages Water & Environment Distilling of water pan Kargi/Sout Urowen water pan 2,000,000.00 h Horr Water & Environment Piping system and masonry tank Kargi/Sout Urowen, Galtheilan 4,000,000.00 h Horr and Gabana villages. Water & Environment Distilling of water pan Kargi/Sout Nebei Village 2,000,000.00 h Horr Water & Environment Piping system to Gangeisa primary school from Ramo Kargi/Sout Gangeisa Primary 1,000,000.00 water tank. h Horr School Health Services Repair and maintenance of Kargi Maternity wing. Kargi/Sout Kargi Health Centre 1,500,000.00 h Horr Health Services Construction of incinerator Kargi/Sout Kargi Health Centre 500,000.00 h Horr Agriculture & Livestock Construction of modern Livestock Market Kargi/Sout Kargi 3,000,000.00 h Horr 63 Trade Construction of Kurkum market stalls and solar Kargi/Sout Kurkum 3,500,000.00 installations h Horr Health Services Installation of Solar panels at Kurkum health center Kargi/Sout Kurkum 500,000.00 h Horr Education & Skills Construction and equipping of Youth Hall at Kurkum. Kargi/Sout Kurkum 3,000,000.00 h Horr Water & Environment Construction of Water pan at Kurkum Kargi/Sout Kurkum 3,000,000.00 h Horr Water & Environment Construction of borehole at Mirmiji. Kargi/Sout South Horr Town 5,000,000.00 h Horr Water & Environment Piping system from Launit through Ngatunyo/Lopokutuk to Kargi/Sout Arge Sub location 6,000,000.00 Tungu h Horr Roads & Public Works Roads spots improvement at Nadokuluponi Kargi/Sout Kurungu to 2,000,000.00 h Horr Nadukuloponi Road Education & Skills Internship Programs Kargi/Sout South Horr Location 2,000,000.00 h Horr Water & Environment Borehole drilling, Piping system installation at Korr and Korr(Halsurwa Sub 30,000,000.00 Halsurwa towns. Korr/Ngur locations) unit Health Services Construction of maternity wing at Mpagas Dispensary. Korr/Ngur Mpagas 5,000,000.00 unit Health Services Construction of Lependera Dispensary Korr/Ngur Lependera 4,000,000.00 unit 64 Trade Extension of Open Air market Korr/Ngur Ngurunit center 1,000,000.00 unit Water & Environment Piping of water to Namarei School from borehole Korr/Ngur Namarei 3,000,000.00 unit Water & Environment Renovation of tanks, Construction of tanks and piping from Korr/Ngur Lengima 2,000,000.00 rock catchment unit Health Services Installation of Lighting system and fridge at Illaut Korr/Ngur Illaut 2,500,000.00 Dispensary. unit Water & Environment Renovation of Illaut borehole tanks Korr/Ngur Illaut 2,500,000.00 unit Water & Environment Laraga piping Loiyangalan Gatab 1,500,000.00 i Water & Environment Lomugul water system extension Loiyangalan Gatab 500,000.00 i Water & Environment Mbarnat piping Loiyangalan Gatab 500,000.00 i Water & Environment Lgoon water extension Loiyangalan Gatab 500,000.00 i Water & Environment Rehabilitation of Gatab water system Loiyangalan Gatab 1,000,000.00 i Water & Environment Water Harvesting with gutters(300 households) Loiyangalan Gatab 7,200,000.00 i Health Services Construction of Staff House for Olturot dispensary. Loiyangalan Olturot 1,500,000.00 i 65 Water & Environment Construction of concrete water tank Loiyangalan Arapal 1,500,000.00 i Water & Environment Water System repair Loiyangalan Arapal 500,000.00 i Health Services Dispensary staff house at Nkororoi Loiyangalan Nkororoi 1,000,000.00 i Health Services Construction of a Dispensary at Civicon village Loiyangalan Civicon Village 3,500,000.00 i Water & Environment Extension of pipes Loiyangalan Gatab Garamet Village i 500,000.00 Water & Environment Repair of Gatab water trough Loiyangalan Gatab Garamet Village 2,000,000.00 i Education & skills Construction of 1 ECD classroom at Lkijata Village Loiyangalan Lkijata Village 1,300,000.00 i Health Services Completion, repair and equipping of Dakaye Dispensary Loiyangalan Gus 2,500,000.00 i Health Services Construction of medical staff quarters at Dakaye Loiyangalan Gus 2,500,000.00 Dispensary i Health Services Fencing of Elmolo Bay Dispensary Loiyangalan Elmolo 2,000,000.00 i Education & skills Construction of Lorus ECD and 1 pit latrine Loiyangalan Elmolo 2,500,000.00 i Health Services Construction of Elmolo Bay Dispensary modern store and Loiyangalan Elmolo 2,500,000.00 1 pit latrine i 66 Health Services Installation of lighting system to El molo Bay Dispensary Loiyangalan Elmolo 1,500,000.00 and staff quarters and purchase of two Ken tank water i tanks(10,000 liters) Health Services Full Maintenance of Ambulance( Purchase of 5 tires, major Loiyangalan Loiyangalani 1,000,000 mechanical repairs, installation of oxygen plant and i equipment of essential drugs Education & Skills Construction of Kanakorot ECD and 1 pit latrine at Moite Loiyangalan Moite 2,500,000.00 i Agriculture, Livestock Construction of water pan at Napikpik Loiyangalan Moite 2,000,000.00 & Fisheries. i Water and Drilling of borehole at Dakaye and piping system to village, Loiyangalan Gus 8,000,000.00 Environment ECD and Dispensary i 2022/23 Wards Public Participation Report MOYALE SUB COUNTY PROPOSED DEPARTMENT PROJECT WARD PROPOSED SITE COST WATER & ENVIRONMENT Supply of 5000ltrs plastic tanks(50pcs) OBBU ambalo 2,500,000.00 WATER & ENVIRONMENT Desilting and fencing ofaro dimtu dam OBBU ambalo 3,000,000.00 67 WATER & ENVIRONMENT 4 motorbike for environment OBBU ambalo 500,000.00 WATER & ENVIRONMENT generator for shauhafi borehole OBBU badanarero 2,500,000.00 WATER & ENVIRONMENT purchase of 5000ltr water tanks(50 pieces) OBBU badanarero 2,500,000.00 WATER & fencing of sololo makutano water pan using metal poles, ENVIRONMENT chain link with metallic gate OBBU sololo makutano 4,000,000.00 WATER & ENVIRONMENT desilting and fencing rapsu hoga OBBU sololo makutano 2,000,000.00 WATER & ENVIRONMENT expansion of mukugurra water pan OBBU mukugurra 2,000,000.00 WATER & ENVIRONMENT fencing of kobbu borehole OBBU ahdi 1,500,000.00 WATER & purchase of 5000ltr water tanks(100 pieces) and 40 pieces dambala fachana and ENVIRONMENT for kukub OBBU kukub 5,500,000.00 HEALTH SERVICE equipping of adadi dispensary with a refrigerator OBBU adadi 1,000,000.00 HEALTH SERVICE maternity equipping at amballo OBBU ambalo 1,500,000.00 HEALTH SERVICE renovation of dispensary OBBU badanarero 1,500,000.00 68 TOURISM, CULTURE,GENDER AND SOCIL SERVICES tent and 200 plastic chairs OBBU ambalo 500,000.00 LANDS town planning OBBU sololo makutano 5,000,000.00 LANDS fencing of graveyard OBBU sololo makutano 4,000,000.00 EDUCATION & SKILLS internship OBBU sololo makutano 1,000,000.00 EDUCATION & SKILLS ECD kitchen OBBU badanrero 1,500,000.00 EDUCATION & SKILLS internship OBBU dambala fachana 1,000,000.00 EDUCATION & SKILLS fencing of ECD classes and construction of pit latrine OBBU gadda kurma 2,000,000.00 EDUCATION & SKILLS sitting facilities at adadi ECD OBBU adadi 500,000.00 EDUCATION & fencing of ECD classrooms and purchase water tank for SKILLS dambalafachana ECD center OBBU dambala fachana 2,100,000.00 EDUCATION & SKILLS construction and equipping of ECD class at dambala fachana OBBU dambala fachana 2,400,000.00 WATER & ENVIRONMENT excavation of new aria dam SOLOLO waye 5,000,000.00 69 WATER & ENVIRONMENT purchase of5000ltrs plastic water tanks for 150 household SOLOLO waye 6,000,000.00 WATER & ENVIRONMENT drilling of borehole SOLOLO anona 3,500,000.00 WATER & ENVIRONMENT desiltating of ramole dam SOLOLO sololo ramata 2,000,000.00 WATER & ENVIRONMENT purchase of5000ltrs plastic water tanks for 127 household SOLOLO anona 5,500,000.00 HEALTH SERVICES renovation of waye godha dispensary SOLOLO waye 1,500,000.00 LANDS clearing and fencing of new graveyard SOLOLO ramatta-sololo 3,000,000.00 LANDS sololo town survey SOLOLO ramatta-sololo 6,000,000.00 ROAD AND PUBLIC WORKS flood control at the foot of the borehole SOLOLO ramatta-sololo 4,000,000.00 ROAD AND PUBLIC WORKS construction of slab at sololo primary school gate A road SOLOLO ramatta-sololo 2,000,000.00 EDUCATION AND YOUTH AFFAIRS internship SOLOLO waye,goda 1,500,000 EDUCATION AND YOUTH AFFAIRS internship SOLOLO anona 1,500,000 EDUCATION AND YOUTH AFFAIRS fencing of Abbo ECD center SOLOLO anona 1,500,000 70 EDUCATION AND YOUTH AFFAIRS construction of a kitchen at O.V.T.C SOLOLO ramatta-sololo 500,000 EDUCATION AND YOUTH AFFAIRS internship SOLOLO ramatta-sololo 2,000,000 TRADE boda boda shade modoadhi SOLOLO waye,goda 500,000 TRADE drainage and sanitation at sololo market SOLOLO ramatta-sololo 4,000,000 WATER & ENVIRONMENT purchase of 5000ltrs plastic water tanks for 313 households GOLBO odda 12,500,000.00 WATER & ENVIRONMENT piping of water from godoma borehole to watiti village 7km GOLBO godoma 10,000,000.00 WATER & purchase of 5000ltrs plastic water tanks for 200 households ENVIRONMENT at nana and yabdo sub location GOLBO nana 8,000,000.00 WATER & ENVIRONMENT desilting of haldiso dam GOLBO dabel 2,000,000.00 WATER & ENVIRONMENT desilting of qola water pan GOLBO dabel 2,500,000.00 HEALTH SERVICE construction qomqom dispensary and staff residence GOLBO nana 4,500,000.00 HEALTH SERVICE construction of maternity wing at dabel GOLBO dabel 3,500,000.00 ROADS $ PUBLIC garse to godoma didiro road spot improvement and WORKS excavation GOLBO godoma 2,500,000.00 EDUCATION & construction of ECD classroom and purchase of plastic SKILLS chairs (dirdima) GOLBO dabel 2,000,000.00 71 WATER & heilu/many ENVIRONMENT Genset generator for kinisa borehole atta kinisa 2,500,000.00 WATER & heilu/many ENVIRONMENT desiltation of harbagasa dam atta kinisa 2,000,000.00 WATER & heilu/many ENVIRONMENT 50000ltr water tanks for 90 households atta kinisa 3,500,000.00 WATER & heilu/many ENVIRONMENT 5000ltrs water tanks for 50 households atta lami 2,000,000.00 WATER & heilu/many ENVIRONMENT piping of water from mansile borehole heilu atta heilu 10,000,000.00 WATER & piping of water from mansile borehole to mansile heilu/many ENVIRONMENT dispensary atta mansile 5,500,000.00 TOURISM,CULTURE, GENDER AND heilu/many SOCIAL SERVICE community hall/cultural hall atta manyatta 6,500,000.00 heilu/many LAND electricity posts at ola shaka and ola akoyo atta manyatta 2,000,000.00 heilu/many LAND floodlight at taqwa atta lami 2,500,000.00 EDUCATION & heilu/many SKILLS ECD classroom at hallo bula village atta kinisa 1,500,000.00 EDUCATION & heilu/many SKILLS fencing of ECD classrooms at harsocko village atta kinisa 2,000,000.00 72 EDUCATION & heilu/many SKILLS construction of one ECD at rashidin ECD atta lami 2,000,000.00 EDUCATION & heilu/many SKILLS gym facilities atta manyatta 3,000,000.00 EDUCATION & heilu/many SKILLS construction of one ECD at st.mary's ECD atta lami 2,000,000.00 heilu/many HEALTH SERVICES lami dispensary fencing atta lami 2,000,000 heilu/many HEALTH SERVICES lami dispensary double door pit latrine atta lami 1,000,000 WATER & ENVIRONMENT purchase of 2 water bowsers Butiye bori juction 12,000,000.00 WATER & ENVIRONMENT construction of water pan Butiye somare 4,500,000.00 WATER & ENVIRONMENT purchase of 5000ltrs water tanks for 63 households Butiye somare 2,500,000.00 WATER & ENVIRONMENT construction of water pan Butiye teso 4,500,000.00 WATER & ENVIRONMENT purchase of 5000ltrs water tanks for 13 households Butiye teso 500,000.00 construction of social hall at bori with one pit latrine and CULTURE fencing of the social hall Butiye butiye 4,000,000.00 LANDS fencing of two cemetery Butiye butiye 3,000,000.00 73 HEALTH purchase of 4 motorbikes for CHVS Butiye butiye 500,000.00 ROADS $ PUBLIC stop improvement of roads from guyo godana to river with WORKS drift Butiye goromuda 4,000,000.00 EDUCATION & SKILLS purchase of 30 motorbike for butiye youth Butiye butiye 3,000,000.00 EDUCATION & SKILLS construction of 2 classrooms at harosa nursery harosa 2,500,000.00 EDUCATION & SKILLS construction of 2 classrooms at new goro county nursery goromuda 2,500,000.00 EDUCATION & construction of computer land and equipping at the SKILLS vocational training center Butiye butiye 5,000,000.00 EDUCATION & SKILLS construction of one classroom at goro-muda nursery Butiye goromuda 1,500,000.00 WATER & ENVIRONMENT purchase of 2 water bowsers Butiye bori juction 12,000,000.00 WATER & TOWNSHI ENVIRONMENT borehole P gurumesa 5,000,000.00 WATER & TOWNSHI ENVIRONMENT plastic water tanks 5000ltrs 450pcs P township 14,850,000.00 WATER & TOWNSHI ENVIRONMENT borehole at sessi village P sessi 3,000,000.00 ROADS AND PUBLIC Light graveling from kula to mwalimu shama and culvert at TOWNSHI WORKS mw. Shama P sessi 3,000,000.00 74 ROADS AND PUBLIC TOWNSHI WORKS Fly over between mw. Huqa plot and grave P sessi 5,000,000.00 EDUCATION & youth empowerment programme through purchase of TOWNSHI SKILLS motorbikes P sessi 3,000,000.00 EDUCATION & youth empowerment programme through purchase of TOWNSHI SKILLS motorbikes P township 1,650,000.00 EDUCATION & youth empowerment programme through purchase of TOWNSHI SKILLS motorbikes P gurumesa 10,000,000.00 TOWNSHI TRADE improvement of market stalls P gurumesa 2,000,000.00 WATER & ENVIRONMENT flushing of borehole Uran uran Godha 3,000,000.00 WATER & ENVIRONMENT piping of water Uran badanota 1,500,000.00 WATER & ENVIRONMENT piping of water to uran health center Uran lataka 1,000,000.00 WATER & ENVIRONMENT piping of water to gora gorma Uran uran Godha 2,000,000.00 WATER & ENVIRONMENT piping of water to godha dispensary Uran uran Godha 1,000,000.00 WATER & ENVIRONMENT construction of water tank qicha Uran lataka 1,000,000.00 WATER & ENVIRONMENT construction of elevated tank at funan qumbi Uran rawana 2,000,000.00 75 WATER & ENVIRONMENT construction of fence at funan qumbi borehole Uran rawana 1,000,000.00 WATER & ENVIRONMENT underground water catchment eledimtu Uran rawana 2,500,000.00 WATER & ENVIRONMENT fencing of water catchment at eledimtu Uran rawana 500,000.00 WATER & ENVIRONMENT raise water tank at itir borehole Uran rawana 2,500,000.00 WATER & ENVIRONMENT fencing of itir elevated water tank Uran rawana 500,000.00 WATER & ENVIRONMENT drilling karbururi borehole Uran karbururi 3,500,000.00 WATER & ENVIRONMENT two trough and concrete tanks of 100000 liters Uran dadacha elele 3,000,000.00 WATER & piping of water from borehole to tank and from tank to ENVIRONMENT trough 60 meters Uran dadacha elele 1,000,000.00 WATER & water piping from walda borehole to hajj guracha 300m ENVIRONMENT plus a 10,000lrs tank Uran walda 2,500,000.00 WATER & piping of water from the borehole to abdub galgalo ENVIRONMENT 250meters Uran walda 2,500,000.00 WATER & ENVIRONMENT purchase of 5000ltrs plastic water tanks for 83 households Uran golole 2,500,000.00 EDUCATION & SKILLS construction of kitchen/dining at obbu VTC Uran uran 2,000,000.00 76 HEALTH construction of VIP latrine badanota Uran lataka 500,000.00 HEALTH fencing of golole dispensary Uran golole 2,500,000.00 HEALTH construction of lab golele dispensary Uran karbururi 4,500,000.00 HEALTH walda dispensary toilet Uran walda 1,000,000.00 HEALTH construction of security house Uran lataka 1,000,000.00 maternity construction at elebor and fencing of the HEALTH maternity Uran rawana 3,000,000.00 LANDS fencing of graveyard at uran godha and lataka Uran uran godha and lataka 2,000,000 2022/23 Wards Public Participation Report NORTH HORR SUB COUNTY PROPOSED DEPARTMENT PROJECT WARD PROPOSED SITE COST WATER & ENVIRONMENT steel tank 50m3 and piping lagiwora besa Turbi shurr 2,000,000.00 WATER & ENVIRONMENT one genset for bubisa borehole Turbi bubisa 3,250,000.00 WATER & ENVIRONMENT 42 class B 2 inch, 6meter pipes for 2 borehole at bubisa Turbi bubisa 115,000.00 77 WATER & ENVIRONMENT 2 door latrine at dossawachu borehole Turbi dossawachu 500,000.00 WATER & ENVIRONMENT steel tank 100m3 with 2 trough at awaye Turbi awaye 6,500,000.00 WATER & ENVIRONMENT concrete tank 100m3 with two trough at lalesa Turbi lalesa 5,000,000.00 WATER & ENVIRONMENT 5000ltrs plastic water tanks for 150 household Turbi turbi 6,000,000.00 WATER & ENVIRONMENT construction of concrete tank at tigo primary Turbi tigo pry 2,000,000.00 WATER & ENVIRONMENT renovation of underground tank at burgabo pry Turbi burgabo 750,000.00 WATER & ENVIRONMENT water pump store at burgabo borehole Turbi burgabo 1,500,000.00 WATER & ENVIRONMENT 2 water through Turbi kambi nyoka 500,000.00 WATER & ENVIRONMENT fencing of dekhuku borehole Turbi turbi 1,000,000.00 HEALTH construction of staff houses at tigo dispensary Turbi tigo 3,500,000.00 HEALTH construction of staff houses at bubisa dispensary Turbi bubisa 3,000,000.00 HEALTH construction of MCH at mude Turbi mude 4,000,000.00 78 HEALTH construction of demo dispensary Turbi demo 3,000,000.00 EDUCATION & SKILLS ECD class for cavelera primary and furniture Turbi bubisa 1,885,000.00 EDUCATION & SKILLS ECD class for horonderi Turbi bubisa 2,000,000.00 EDUCATION & SKILLS construction of ECD classes at burgabo Turbi burgabo 3,000,000.00 LANDS AND URBAN PLANNING 2 door latrine at turbi cemetery Turbi turbi 500,000.00 WATER & ENVIRONMENT changing of pipes at dukana borehole and fencing dukana dukana 1,200,000.00 WATER & ENVIRONMENT double door pit latrine at borehole site dukana dukana 500,000.00 WATER & ENVIRONMENT expansion of genset housing dukana dukana 300,000.00 WATER & ENVIRONMENT renovation of qarsa lokho underground tank dukana balesa 500,000.00 LANDS construction of slaughter house dukana el-hadi 2,000,000.00 HEALTH construction of wards at balesa dispensary dukana balesa 4,000,000.00 HEALTH renovation of staff houses at saruu dispensary dukana saru 1,500,000.00 79 HEALTH outpatient and mortuary dukana dukana 4,500,000.00 CULTURE AND SOCIAL SERVICE construction of social hall dukana saruu 4,000,000.00 CULTURE AND SOCIAL SERVICE construction of social hall dukana el-hadi 4,500,000.00 TRADE boda boda shade dukana balesa 1,000,000.00 ROADS AND PUBLIC WORKS construction of road from lag khore to sanqote(igo) dukana dukana 4,000,000.00 ROADS AND PUBLIC WORKS dakaqaqala road dukana el-hadi 2,500,000.00 ROADS AND PUBLIC WORKS road from balesa to lamesa dam dukana balesa 5,000,000.00 ROADS AND PUBLIC WORKS new road from sabarea t balesa badaqe dukana saruu 3,500,000.00 EDUCATION YOUTH AND SPORT playing ground dukana balesa 1,500,000.00 EDUCATION YOUTH AND SPORT 2 ECD toilets at dukana girls and dukana primary dukana dukana 1,000,000.00 EDUCATION YOUTH AND SPORT construction of ECD class at dukana girls primary dukana dukana 1,500,000.00 80 EDUCATION YOUTH AND SPORT ECD staff houses for dukana primary dukana dukana 1,500,000.00 EDUCATION YOUTH playing material for all ECD in dukana( dololo boji, shamo AND SPORT tuna, dukana pry, narmadic girls, huqa gompea and kubi athi dukana dukana 500,000.00 EDUCATION YOUTH AND SPORT youth internship dukana ward wide 5,000,000.00 WATER & ENVIRONMENT piping of water illeret balcha loki 20,000,000.00 illeret, baulo,nangeloi,siesludo WATER & purchasing and distribution/planting of both indigenous and ,watalii and ENVIRONMENT exotic species of tree illeret institutions 500,000.00 EDUCATION YOUTHS AND employment of unskilled youth through collection and illeret,sieslucho, baulo, SPORTS distribution of solid waste management illeret watalii and nangolei 4,000,000.00 EDUCATION YOUTHS AND SPORTS renovation of ECD classroom illeret illeret centre 1,500,000.00 EDUCATION YOUTHS AND SPORTS renovation of ECD classroom illeret sies-lucho town 1,500,000.00 EDUCATION YOUTHS AND SPORTS employment of youth internship program illeret illeret ward 4,000,000.00 81 PUBLIC ADMINISTRATION COORDDINATION AND ICT construction of pit latrine illeret admin office 500,000.00 PUBLIC ADMINISTRATION COORDDINATION AND ICT installation of floor tiles illeret admin office 1,800,000.00 PUBLIC ADMINISTRATION COORDDINATION AND ICT rain water harvesting system illeret admin office 200,000.00 HEALTH construction of dispensary illeret aiy-beete 4,000,000.00 HEALTH servicing of illeret ward ambulance illeret illeret ward 4,000,000.00 HEALTH fully equipped maternity ward illeret sieslucho 4,800,000.00 sielucho maternity HEALTH solar power (lighting) installation illeret ward 1,500,000.00 sielucho maternity HEALTH rain water harvesting system illeret ward 200,000.00 sielucho maternity HEALTH purchase of three maternity bed illeret ward 1,500,000.00 82 WATER & ENVIRONMENT genset installation at malaba,qarqa, elbesso andtiniqo north-horr north-horr 8,000,000.00 WATER & ENVIRONMENT improvement of water facilities north-horr malabot 2,000,000.00 HEALTH north horr hospital north-horr north horr town 20,000,000.00 HEALTH equipping of lab facility at gas dispensary north-horr gas 2,000,000.00 EDUCATION internship north-horr ward wide 5,000,000.00 AGRICULTURE, LIVESTOCK AND FISHERIES grants for fisheries north-horr north horr town 3,000,000.00 AGRICULTURE, LIVESTOCK AND FISHERIES burra irrigation north-horr north horr town 3,000,000.00 ROAD construction of sukella slab konon gas road north-horr gas 3,000,000.00 ROAD sport improvement of ebesso warra road north-horr gas 4,000,000.00 WATER & ENVIRONMENT construction of 1 underground tank for gandelle maikona forolle 2,000,000.00 WATER & ENVIRONMENT construction of 1 underground tank for yaa gara maikona forolle 2,000,000.00 83 WATER & ENVIRONMENT construction of masonry tank for ECD classes maikona forolle 1,500,000.00 WATER & ENVIRONMENT repair of old underground tank maikona forolle 500,000.00 WATER & ENVIRONMENT installation of pipes, solar, tank, fencing at kutur borehole maikona kalacha 4,800,000.00 WATER & ENVIRONMENT drilling of borehole at el-guracha manyatta maikona el-gade 2,100,000.00 WATER & ENVIRONMENT purchase of 5000ltrs plastic tanks for 80 households maikona hurri hills 3,500,000.00 WATER & ENVIRONMENT drilling of borehole at dololo gocha maikona el-gade 2,400,000.00 WATER & ENVIRONMENT renovation of boji piping to maikona town maikona maikona 1,500,000.00 WATER & ENVIRONMENT underground tank for maikona health center maikona maikona 2,000,000.00 WATER & ENVIRONMENT water piping from manyatta abkul and part of guyo roba maikona maikona 1,500,000.00 HEALTH completion and equipping of OLOM dispensary maikona kalacha 2,000,000.00 HEALTH completion of hurihill dispensary fence maikona hurihill 500,000.00 HEALTH fencing of el-gade dispensary maikona el-gade 1,000,000.00 84 HEALTH construction of 2 door pit latrine at toricha dispensary maikona maikona 1,000,000.00 construction of community social hall with an office, toilet, CULTURE furniture, fencing and solar installation maikona forolle 4,000,000.00 EDUCATION kalacha nomadic ECD construction of kitchen and store maikona kalacha 1,800,000.00 EDUCATION construction of double door pit latrine for toricha maikona maikona 1,000,000.00 EDUCATION construction of ECD class at bas balesa maikona maikona 1,500,000.00 EDUCATION youth internship maikona wardwide 5,700,000.00 EDUCATION construction of ECD class at abudho wojera village maikona maikona 1,500,000.00 EDUCATION construction of ECD class for baqaqa village maikona hurrihill 1,800,000.00 EDUCATION completion and purchasing of furniture for hurrihill ECD maikona hurrihill 500,000.00 construction of toilet double door for rage ECD and EDUCATION equipping with furniture maikona el-gade 900,000.00 ROAD construction of slab around hurrihill cattle crush(120mtrs) maikona hurrihill 3,000,000.00 budget 2022/23 Wards Public Participation Report 85 SAKU SUB COUNTY PROPOSED DEPARTMENT PROJECT WARD PROPOSED SITE COST WATER & Sagante ENVIRONMENT Purchase of 5000 liters plastic tanks for Qilta Location Jaldesa Qilta 4,500,000 WATER & Sagante ENVIRONMENT Drilling of a borehole at Dirib Gombo Center Jaldesa Dirib-Gombo 4,500,000 WATER & Sagante ENVIRONMENT Gotu Gachacha Catchment Jaldesa Dirib-Gombo 2,000,000 WATER & Sagante ENVIRONMENT Purchase of 5000 liters plastic tanks for Boru Haro Jaldesa Dirib-Gombo 2,500,000 WATER & Sagante ENVIRONMENT Purchase of 5000 liters plastic tanks for sagante Jaldesa Sagante 8,500,000 WATER & Sagante ENVIRONMENT Purchase of 5000 liters water tanks for jaldesa location Jaldesa Jaldesa 4,500,000 Sagante ADMINISTRATION Renovation of Jaldesa Chief Office Jaldesa Jaldesa 1,000,000.00 CULTURE AND Sagante SOCIAL SERVICE Construction of a community social hall at Wario Duba Jaldesa Qilta 4,000,000 CULTURE AND Sagante SOCIAL SERVICE Construction of a community social hall at Kukub Tiro Jaldesa Sagante 2,500,000 CULTURE AND Sagante SOCIAL SERVICE Construction of a Social Hall at Jaldesa Jaldesa Jaldesa 5,500,000 86 LANDS, ENERGY AND URBAN Sagante DEVELOPMENT Lands adjudication for QILTA Jaldesa Qilta 1,000,000 LANDS, ENERGY AND URBAN Sagante DEVELOPMENT Lands adjudication for Dirib Gombo Jaldesa Dirib-Gombo 2,000,000 EDUCATION & Sagante SKILLS Internship for Drib Gombo Youth Jaldesa Dirib-Gombo 1,500,000 EDUCATION & Sagante SKILLS Internship for Sagante Youth Jaldesa Sagante 1,500,000 EDUCATION & Sagante SKILLS Internship for Jaldesa Youth Jaldesa Jaldesa 1,500,000 EDUCATION & Sagante SKILLS Internship for Qilta Youth Jaldesa Qilta 1,500,000 Sagante HEALTH SERVICES Equipping of Manyatta Jillo HC Laboratory Jaldesa Qilta 1,500,000 Marsabit WATER & ENVIRONMENT 150 pcs of 5000ltrs of plastic ken tanks Central jirime 8,000,000.00 Marsabit WATER & ENVIRONMENT 300 pcs of plastic water tank Central dakabaricha 8,500,000.00 Marsabit WATER & ENVIRONMENT 5000ltrs of plastic tanks Central mountain 11,000,000.00 Marsabit WATER & ENVIRONMENT 3000ltrs of plastic water tanks Central nagayo 10,500,000.00 87 Marsabit EDUCATION & SKILLS Furniture for SKM ECD Central nagayo 500,000.00 Marsabit EDUCATION & SKILLS Kitchen for comboni ECD Central jirime 1,000,000.00 Renovation (floor, doors, windows and fixing of gutters to thanks Marsabit EDUCATION & SKILLS for comboni ECD Central jirime 550,000.00 construction of 2 door pit larine and dining hall at kiwanja ndege Marsabit EDUCATION & SKILLS pry school Central dakabaricha 4,000,000.00 Marsabit HEALTH Incinerator for Jirime dispensary Central jirime 500,000.00 renovation of jirime social hall and equipping with a modern kitchen, construction of double door pit latrine, purchase of 200 chairs 20 tables and 1 cabinet, wiring and installation of Marsabit CULTURE electricity and connection of gutter for jirime social hall Central jirime 2,450,000.00 renovation of nagayo social hall and purchasing of chairs and Marsabit CULTURE tables Central nagayo 1,500,000.00 renovation of mountain social hall and connecting the tank with gutters, purchasing of chairs and tables, purchasing of tents and Marsabit CULTURE purchasing of public address system Central mountain 1,500,000.00 WATER & ENVIRONMENT Repair of pipes from Lesamachale source to Lpus Village KARARE Songa 1,000,000 WATER & ENVIRONMENT Purchase of 60 plastic tanks of 5000 liters for Kituruni KARARE Songa 3,000,000 WATER & Purchase of 35 plastic tanks of 5000 liters for parkishon ENVIRONMENT Village KARARE Hula Hula 2,000,000 88 WATER & Purchase of 35 plastic tanks of 5000 liters for Hula-Hula ENVIRONMENT Village KARARE Hula Hula 2,000,000 WATER & Purchase of 20 plastic tanks of 5000 liters for Karatina ENVIRONMENT Village KARARE Hula Hula 1,000,000 WATER & ENVIRONMENT Repair of Ngarao Water tank in Karare KARARE Karare 1,000,000 WATER & Construction of a concrete tank at Lmanarie Village in ENVIRONMENT Karare KARARE Karare 2,000,000 WATER & New water pipeline from Noongorio village to Loruko ENVIRONMENT water tank KARARE Karare 1,000,000 WATER & ENVIRONMENT Grant to Songa Conservancy KARARE Songa 2,000,000 ROADS $ PUBLIC Improvement of road from KWS to Mid rock to murram WORKS standards KARARE Songa 4,000,000 ROADS $ PUBLIC WORKS Construction of a new road from Lturuya to Leyai KARARE Songa 3,500,000 ROADS $ PUBLIC Improvement of road from M-pesa to Water point to WORKS murram standards KARARE Hula Hula 4,000,000 ROADS $ PUBLIC Construction of a road from A2 to Karare Health Center WORKS with a curvet KARARE Karare 3,000,000 HEALTH SERVICES Construction of 2 door pit latrine at Lpus Dispensary KARARE Songa 1,000,000 HEALTH SERVICES Furnishing of Leyai Dispensary KARARE Songa 1,500,000 Completion of Laboratory at Karare Health Center plus HEALTH SERVICES furnishing KARARE Karare 2,600,000 89 EDUCATION, YOUTH AND SKILLS DEVELOPMENT Renovation of Songa pry ECD Class KARARE Songa 1,000,000 EDUCATION, YOUTH AND SKILLS DEVELOPMENT Construction of an ECD class at Loruko pry KARARE Karare 1,800,000 EDUCATION, YOUTH AND SKILLS DEVELOPMENT construction of an ECD class at Karare pry KARARE Karare 1,800,000 EDUCATION, YOUTH AND SKILLS DEVELOPMENT Construction of an ECD class at Lakartinya pry KARARE Karare 1,800,000 TOURISM,CULTURE, GENDER AND SOCIAL SERVICE Construction of a Social Hall at Parkishon Village KARARE hula-hula 3,000,000.00 TRADE Garbage collection for Hula Hula KARARE hula-hula 1,000,000.00 TRADE Garbage collection for Karatina KARARE hula-hula 3,000,000.00 LANDS, URBAN DEVELOPMENT Fencing of Mt Marsabit Women Cooperative at Karare KARARE karare 1,000,000.00 LANDS, URBAN Purchase of Car washing machine and 10,000 liter water DEVELOPMENT tank for karare youth KARARE karare 1,000,000.00 90 CHAPTER FIVE: CONCLUSION AND NEXT STEPS The Marsabit County CFSP has detailed the set of fiscal policies that are aimed at balancing between changing circumstances due to emerging issues and the need to keep the link to the CIDP and the fiscal responsibility principles espoused in the PFM Act, 2012. The policies are also consistent with the national strategic objectives as detailed in the Budget Policy Statement which provides the basis for allocation of public resources to the County Government. Details of these strategic objectives are contained in the CIDP (2018-2022) and will be adjusted in the 3rd integrated planning process (CIDP 2022-2023) which is expected to be completed by 1st of September 2022. The policies and sector ceilings will guide the transition between the two integrated planning periods. Budgetary resources are usually limited, thus it is imperative that departments prioritize their programmes within the available resources to ensure that utilization of public funds are in line with county government priorities. Departments need to carefully consider detailed costing of projects, strategic significance, deliverables (output and outcomes), alternative interventions, administration and implementation plans in allocating resources. Further, allocation of resources should be done to projects that have been fully processed (project designs, project appraisals done, necessary approvals secured etc). The departments should also pay attention to estimated requirements for each of the stages in the project cycle to ensure that the budget amounts are based on clear timelines and milestones. There is also need to ensure that recurrent resources are being utilized efficiently and effectively before funding is considered for programmes. Monitoring and Evaluation will play a critical role in tracking the implementation of the projects and programmes envisaged in this document and strengthen the county’s capacity to deliver services to its residents. Monitoring and evaluation will involve the tracking of activities, tracking of budget usage, the assessment of performance and putting in place strategies and actions for the attainment of results. Proper implementation of the budget is critical towards providing services that will promote sustainable growth. Sustainability requires greater effort from all the stakeholders including county government departments, sector working groups, civil societies, communities, County Assembly and development partners to get things done. This means providing for continuous consultations with each other, finding solutions and encouraging innovation to build a sustainable County. 91 The Sector Working Groups will be formed and re-established to provide a forum for effective engagement by stakeholders during the CIDP planning for 2022-2027 and will also be used during the sector reporting and priority generation. The County government looks forward to an increased tempo in implementation and vibrancy in public participation in the budgeting and implementation of activities in FY 2022/23 and in the medium term. 92 ANNEXES Annex 1: FY 2019/20 MTEF Budget Timelines ACTIVITY RESPONSIBILITY TIMEFRAME/DEADLINE Develop and issue MTEF County Treasury 30th August 2021 Guidelines and Budget Calendar Launch of Sector Working County Treasury 15th September 2021 Groups (SWGs) Undertake Departmental Public All Departments 15th September 2021 Expenditure Review Preparation of Progress report All Departments 15th September 2021 on MTP Preparation of annual Plans and All Departments 1st September 2021 the CIDP 2022-2027 Capacity building for MTEF and County Treasury 31st October 2021 Programme Based Budget Estimation of the Resource County Treasury 30th September 2021 Envelope Determination of policy County Treasury 30th September 2021 priorities Preliminary resource allocation County Treasury 30th September 2021 to sectors Submission of Information All Departments 10th September, 2021 necessary for the Development of County Budget Review and Outlook Paper Develop County Budget Review County Treasury 20th September 2021 and Outlook Paper (CBROP) Submit County Budget Review County Treasury 30th September 2021 and Outlook Paper ( CBROP) to the County Executive Committee Departments in Sub-counties to Departments in the Sub- 30th September 2021 submit their inputs to Relevant counties Ministry Headquarters Preparation of MTEF Budget Sector Working Group 1st October 2021 Proposals draft sector report Deliberation and Approval of the County Executive 14th October, 2021 CBROP Committee Submission of Approved CBROP County Treasury 21st October, 2021 to the County Assembly Convene Public Sector Hearing County Treasury 12th November 2021 on MTEF budget proposals Issue Circular on Revised Budget County Treasury 15th November, 2021 Review of the MTEF Budget County Treasury 20th November, 2021 Proposals 93 Submission of Sector Reports to Sector Working Group 27th November, 2021 the County Treasury Submission of Supplementary All departments 8th January, 2022 Budget Proposals Review of Supplementary Budget County Treasury 15th January, 2022 Proposals Submission of Information for County Treasury 15th January, 2022 Preparation of Draft County Fiscal Strategy Paper (CFSP) Submission of CFSP to the County Treasury 1st February, 2022 County Executive Committee in preparation of Public Participation Public Participation meetings of County Treasury/ All 15th February, 2022 the departments CFSP Submission of CFSP to the County Treasury 19th February, 2022 County Executive Committee for approval Submission of CFSP to County County Treasury 28th February, 2022 Assembly for approval Submit Supplementary Budget County Treasury 28th February, 2022 Proposals to Assembly Develop and Issue final County Treasury 30th January, 2022 Guidelines on preparation of 2018/2019 Budget Estimates Preparation of itemized and All departments 15th March, 2022 Programme Based Budgets Submission of itemized and All departments 16th March, 2022 Programme Based Budgets to the County Treasury Review and finalize County Treasury 30th March, 2022 Departmental itemized and Programme Based Budgets Submission of Budget Estimates County Treasury 4th April, 2022 to Executive Committee for Approval Before Public Participation Public Hearing on the Budget County Treasury 18thApril, 2022 Estimates Consolidation of Budget County Treasury 20th April, 2022 Estimates after Public Participation Submission of Budget Estimates County Treasury 23rd April, 2022 to 94 Executive Committee for Approval Submission of Budget Estimates County Treasury 27th April, 2022 to County Assembly for approval Review of Budget Estimates by County Assembly 25th May, 2022 the County Assembly Approval of the Budget County Assembly 15th June, 2022 Estimates Consolidation of the Final County Treasury 22nd June, 2022 Budget Estimates Submission of Appropriation Bill County Treasury 27th June, 2022 to the County Assembly Consideration and Passage of County Assembly 30th June, 2022 Appropriation Bill 95 THE COUNTY GOVERNMENT OF MARSABIT P.O BOX 384-60500 MARSABIT Email: info@marsabit.go.ke 96