MANDERACOUNTY GOVERNMENT THE COUNTY TREASURY THE COUNTY FISCAL STRATEGY PAPER 2021/2022 AND MIDTERM FEBRUARY 2021 © County Fiscal Strategy Paper (CFSP) 2021 To obtain copies of the document, Please contact: Mandera County Treasury P. O. Box, 13-70300 Mandera i COUNTY VISION AND MISSION VISION Regionally competitive and self- reliant Mandera County MISSION To strategically position Mandera county to be innovative, competitive in achieving sustainable progressive, wealthy, healthy, cohesive and secure for all Abbreviations BPS Budget Policy Statement CBROP County Budget Review and Outlook Paper CEC County Executive Committee ii CFSP County Fiscal Strategy Paper CIDP County Integrated Development Plan FY Financial Year GDP Gross Domestic Product ICT Information Communication Technology ADP Annual Development Plan MTEF Medium Term Expenditure Framework MTP Medium Term Plan NDA Net Domestic Assets NFA Net Foreign Assets PFMA Public Finance Management Act PPP Public Private Partnership TVET Technical Vocational Education and Training iii FOREWORD The 2021 County fiscal strategy paper (CFSP) sets out the priority programs that need to be implemented by Mandera County Government over the next MTEF period 2021/22. The programs and policies will reflect the concerns of Mandera people and are in line with the second County Integrated Development Plan (CIDP), Governor’s manifesto, the National Government’s ‘BIG FOUR’ agenda and the Kenya Vision 2030. The paper is also aligned with the national objectives contained in the Budget Policy Statement (BPS 2021). The 2021 CFSP comes at the mid stage of the County Integrated Development Plan covering the period 2018-2022. In this regard, the policy goals, priority programs and fiscal framework are aligned to support achievement of the objectives of the Second CIDP and ultimately the Vision 2030. The expenditure priorities are set to ensure that they are in accordance with the County Government strategic priorities. In addition, the County has already initiated a number of revenue reforms and will continue to invest in technology geared towards automating additional revenue streams. These reforms are expected to make revenue payment more convenient and increase Own Source of Revenue, which will help in financing County Budgets. As we finalize preparation of the budget for the FY 2021/22, we are clearly conscious of our limited fiscal space occasioned by revenue shortfalls and rising expenditure pressures. Finally, we are grateful to H.E the Governor for guidance and counsel in the development of this document. My sincere gratitude goes to my cabinet colleagues and all Chief Officers as well as the economic planning staff led by the Chief Officer economic planning, and other County Government officials, for their valuable contributions. Equally, we received useful inputs from stakeholders and nd rd Mandera Residents during the public Participation, which were held between 22 to 23 February 2020 in line with the requirements of the Public Finance Management (PFM) Act, 2012, and the Constitution. We value these inputs and extend our appreciation to all. Hon. Ibrahim Barrow Hassan CEC- FINANCE AND ECONOMIC PLANNING iv ACKNOWLEDGEMENT The 2021 County Fiscal Strategy Paper is prepared in accordance with the provisions of the Public Finance Management Act; 2012. It outlines the current state of the County and outlook over the medium term, it also gives broad macroeconomic issues and medium term fiscal framework of the National Economy as contained in the 2021 Budget Policy Statement (BPS). The 2021 CFSP specifies the set strategic priorities, policy goals, and a summary of Government spending plans, as a basis of the FY 2021/22 budget. The document is expected to improve the public’s understanding of public finances and guide public debate on economic and development matters. Much of the information in this document was obtained from the various County Government Departments. We also received valuable inputs from Sector Working Groups and the public during the public participation program. It is with great humility that I take the opportunity to express my profound gratitude and deepest regards to especially His Excellency the Governor, ALI IBRAHIM ROBA and the County Executive Committee Members, led by Hon Ibrahim Barrow Hassan, CEC for Finance and Economic Planning. Equally, I would like to appreciate the County chief officers and agency/departmental directors for their cooperation and efforts in the preparation of this document that meets the aspirations of the County residents. Special thanks go to Economic planning staff for their commitment and hard work. I am also grateful to the County Secretary and all Chief Officers for the valuable information they provided in their respective fields and for the cooperation shown during the period of the assignment. Fartun Bulle Ibrahim CHIEF OFFICER, ECONOMIC PLANNING AND STATISTICS v LEGAL BASIS FOR THE PREPARATION OF THE COUNTY FISCAL STRATEGY PAPER vi FISCAL RESPONSIBILITY PRINCIPLES IN THE PUBLIC FINANCIAL MANAGEMENT LAW In line with the Constitution, the Public Financial Management (PFM) Act, 2012, sets out the fiscal responsibility principles to ensure prudence and transparency in the management of Public Resources. The PFMA (Section 107(b)) states that: 1. The County Government’s recurrent expenditure shall not exceed the County Government’s total revenue; 2. Over the medium term, a minimum of 30% of the County budget shall be allocated to development expenditure; 3. The County Government’s expenditure on wages and benefits for public officers shall not exceed a percentage of the County government revenue as prescribed by the regulations; 4. Over the medium term, the County Government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure; 5. Public debt and obligations shall be maintained at a sustainable level as approved by County Government (CG); 6. Fiscal risks shall be managed prudently; 7. A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future. CHAPTER ONE 1.0: INTRODUCTION This section gives the background information and the legal requirements for the publication of the County Fiscal Strategy Paper (CFSP). This section also gives the county’s broad strategic priorities and policy goals that will guide the county government in preparing its budget for the 2021/2022 financial year and over the medium term. 1.1: BACKGROUND INFORMATION The is prepared pursuant to section 117 of PFM Act 2012.The Constitution of Kenya, 2010, provided for two levels of government, National and County levels with each having clear functions. To ensure financial discipline and accountability with the way public finances are handled, various legal frameworks have been laid down including the Public Finance Management (PFM) Act, 2012 which requires counties to prepare County Fiscal Strategy Paper (CFSP) each year. Background The County Fiscal Strategy Paper (CFSP), 2021 is the third to be prepared under the new County Administration and the seventh since the advent of devolution. It seeks to actualize the priorities laid down under the Six Pillars of the County Administration as well as the Socio-Economic Transformative Agenda spelt out in the Second County Integrated Development Plan (CIDP2). These include: 1.Creating an enabling environment for business in order to encourage investment growth and expansion of economic opportunities; 2.Development of key infrastructure facilities including roads, water and ICT in order to stimulate growth, create employment and reduce poverty; 3.Promotion of health and education service 4.Promotion of value addition for agricultural produce, environment management and food security; 5. Promotion of equitable economic and social development; 6. Enhancing governance, transparency and accountability in the delivery of public goods and services 1.2 OBJECTIVES OF THE CFSP The objective of the 2021 County Fiscal Strategy Paper is to lay down the framework for the preparation of the County Budget. It is a requirement under Section 117 of the Public Finance Management Act, 2012 that each County Treasury shall prepare and submit to the County Executive Committee the Fiscal Strategy Paper for approval, and the County Treasury shall submit th the approved Fiscal Strategy Paper to the County Assembly by the 28 February each year. 2 Pursuant to the provisions of the PFM Act 2012, this County Fiscal Strategy Paper addresses the following: i. The Medium-Term macroeconomic framework and its outlook as contained in the Budget Policy Statement and how it impacts on the County economic environment; ii. A statement of fiscal responsibility principles, as specified in the PFM Act, 2012 and regulations indicating how the Fiscal Strategy Paper adheres to these principles; iii. The economic assumptions underlying the County budgetary and fiscal policy over the Medium Term; iv. Indicative allocation of available resources among County Government entities; and v. A medium-term fiscal framework defining a top-down aggregate resource envelope and broad expenditure levels 3 1.3: CFSP BROAD STRATEGIC PRIORITIES AND POLICY GOALS The key broad strategic priorities and policy goals that has been the focus during the preparation of this paper and over the medium term include the following: 1.3.1: AGRICULTURE LIVESTOCK AND FISHERIES The key policy goal of this sector is to achieve food security and sustainable land management as provided for in the Constitution, under Article 43 on the Bill of Rights that seeks to provide accessibility of adequate food of acceptable quality. The priorities of this sector include: Expansion of irrigation schemes, value addition, increasing market access and adoption of technologies; exploiting irrigation potential; increased commercialization of the sector activities; creating an enabling policy and legal framework, improving efficiency and effectiveness of sector institutions; effective administration and management of land and land based resources; and sustainable management of resources in the sector. livestock marketing infrastructure, increased livestock production, provision of high quality livestock feeds and water, improved livestock breeds, Improved management and dissemination of market information, Promotion of value addition in livestock, livestock products and by- products, creation of a Livestock Development Master Plan, improved Emergency preparedness on drought and livestock diseases; Establishment of a cross border trade; and improved veterinary services. 1.3.2: MINISTRY OF GENDERS, YOUTH AND SOCIAL SERVICES The priorities for this sector include taking care of vulnerable members of the society by coming up with policies and programs specifically designed to suit their unique needs. It looks into priority issues and needs of youth, women and persons with disabilities. 1.3.3: EDUCATION, CULTURE AND SPORTS The education sub-sector seeks to address the following: provision of early childhood education; quality assurance, teacher resource management at early childhood level, technical vocational education and training (TVET); and youth training. The social services sub-sector, which comprises of youth training; sports; and gender aims to promote sport activities and promote youth and women empowerment. 1.3.4: HEALTH SERVICES SECTOR The mandate of the sector is to build a progressive, responsive and sustainable technologically driven health system for accelerated attainment of the highest standard of health to the people of Mandera County. The five most common diseases in order of prevalence are Disease of Malaria, Upper Respiratory Tract Infection (URTI), Pneumonia, Urinary Tract Infection (UTI) and skin disease. 4 1.3.5: WATER, SANITATION, ENERGY AND NATURAL RESOURCES Mandera County is one of the most water insecure counties in the country. The Key objective of this ministry is thus to improve water supplies and infrastructure throughout the county. Major part of the allocation for this ministry is going towards improving existing water infrastructure as well as developing new ones. 1.3.6: PUBLIC WORKS, ROADS AND TRANSPORT SECTOR Improved road network; Completion of ongoing road projects, keep the repair works going on roads that were already done; improved market access; and improved transport infrastructure are the major priorities under this sector. 1.3.7: MINISTRY OF PUBLIC SERVICE AND DEVOLVED UNITS The strategic priorities and policy goals of this sector include: enhanced public service delivery; enhanced early warning and response mechanisms of public issues; and ensure citizens enjoy services at the lowest level. 1.3.8: LANDS, HOUSING AND PHYSICAL PLANNING SECTOR This sector seeks to address land ownership and registration; resolution of land disputes; settlement of internally displaced persons; management of land resource; land policy development; and improved housing facilities. 1.3.9: FINANCE, ECONOMIC PLANNING AND ICT SECTOR This sector’s priorities and policy goals include: improved own sources revenue collection; enhanced resource mobilization and utilization; improved financial control; improved development planning, monitoring and evaluation and provision of ICT infrastructure and services. 1.3.10: TRADE, INDUSTRIALIZATION, INVESTMENT AND COOPERATIVE DEVELOPMENT This sector comprises of Trade, Industrialization, investment and Co-operatives development. Its major priorities include: promotion of both cross-border and local trade; promotion of industrial development; and promotion of local and foreign investment and strengthening of cooperative development. 5 CHAPTER TWO ECONOMIC FRAMEWORK AND OUTLOOK 2.0: RECENT ECONOMIC DEVELOPMENTS AND POLICY OUTLOOK 2.1: OVERVIEW In 2020, the outbreak of Covid-19 Pandemic and its swift containment measures has had great effects on the Kenya’s economy, which have not only disrupted the normal lives and livelihoods, but to a greater extent businesses and economic activities. As a result, our economy contracted by 5.7 percent in the second quarter of 2020 from a growth of 4.9 percent in the first quarter in 2020. The economy is therefore estimated to slow down to a growth of around 0.6 percent in 2020 from the earlier projection of 2.6 percent in the 2020 Budget Review and Outlook Paper (BROP). The economic growth projection of the country is to recover to 6.4 percent in 2021 due to in part; the lower base effect in 2020. In terms of fiscal years, an economic growth projection of 3.5 percent in FY 2021/22 and further to 6.2 percent over the medium term. The economy continues to register macroeconomic stability with low and stable interest rates and a competitive exchange rate that support exports. Year-on- year overall inflation remained within the Government target range of 5±2.5 percent where in December 2020 at 5.6 percent from 5.8 percent in December 2019. This lower inflation was mainly due to a reduction in food prices. The foreign exchange market has largely remained stable but partly affected by a significant strengthening of the US Dollar in the global markets and uncertainty with regard to the Covid-19 pandemic. Despite this, the current account deficit is likely to improve to 5.1 percent in 2021 from 5.8 percent in 2020 mainly supported by an improvement in the trade balance. 2.1.1: GROSS DOMESTIC PRODUCT GROWTH AND ITS MAIN DRIVERS BY SECTOR Prior to the outbreak of Covid-19 pandemic, Kenya’s economy was strong and resilient despite the challenging global environment. The broad-based economic growth for 2018 and 2019 averaged 5.9 percent outperforming the 5.5 percent for the previous 5 years (2013 to 2017) and the average growth rate of 4.7 percent in the period 2008 to 2012. In 2020, the outbreak of Covid-19 Pandemic and its swift containment measures has had great effects on the Kenya’s economy, which have not only disrupted the normal lives and livelihoods, but to a greater extent businesses and economic activities. As a result, our economy is estimated to slow down to around 0.6 percent in 2020 from a growth of 5.4 percent in 2019. Looking ahead, the economy is projected to recover and grow by about 6.4 percent in 2021 and above 6.2 percent over the medium term. 6 Per capita income rose from Ksh 113,539 in 2013 to Ksh 204,783 in 2019, a compounded annual growth rate of 11.5 percent. This enabled generation of around 827,000 new jobs per annum in the period 2013 - 2019 up from 656,500 new jobs per year in the period 2008 -2012. The economy grew by 4.9 percent in the first quarter of 2020 compared to a growth of 5.5 percent in the first quarter of 2019. The slowdown in quarter one was as a result of the decline in economic activities in most of the country’s major trading partners due to the uncertainty associated with the Covid-19 pandemic. The economy further contracted by 5.7 percent in quarter two of 2020 from a growth of 5.3 percent in the same quarter in 2019. The poor performance in the quarter was largely due to the effect of measures aimed at containing the Covid – 19 pandemic. The agriculture sector recorded an improved growth of 6.4 percent in the second quarter of 2020 compared to a growth of 2.9 percent in the corresponding quarter of 2019. The sector’s performance was supported by a notable increase in tea production, cane deliveries, milk intake and fruit exports. The sector’s contribution to GDP growth was at 1.5 percentage points in the second quarter of 2020 compared to 0.7 percentage points over the same period in 2019 (Figure 3). The non-agriculture (service and industry) sectors were adversely affected by the Covid-19 pandemic during the second quarter of 2020. As a result, the sector contracted by 8.5 percent in the second quarter of 2020 down from a growth of 6.4 percent in a similar quarter in 2019. The sector’s contribution to real GDP was percentage points in the second quarter of 2020 compared to a contribution of percentage points in the same quarter of 2019. Services sector contracted by 11.0 percent in the second quarter of 2020 compared to a growth of 6.8 percent in the same quarter in 2019. The decline was largely by substantial contractions in Accommodation and Food Services (83.3 percent), Education (56.2 percent), and Transportation and Storage (11.6 percent). Financial and Insurance, Information and communication and Public Administration mainly supported growth in the service sub-sector. The Services sub-sector contributed -5.4 percentage points to real GDP growth in the second quarter of 2020 compared to the 3.3 percentage point contribution in the same quarter of 2019. The industry sector contracted by 1.0 percent in the second quarter of 2020 compared to a growth of 5.4 percent in the same quarter of 2019. This was mainly due to a decline in activities in the electricity and water supply and manufacturing sub-sectors. The industry sector was however supported by the Construction sector that grew by 3.9 percent in the second quarter of 2020. The industry sector accounted for -0.2 percentage points of growth in the second quarter of 2020 compared to 0.7 percentage point contribution to GDP in 2019 7 the spread of the Covid-19. As a result, the performance of most sectors of the economy contracted in the second quarter of 2020. However, the economy was supported by improved performance of Agriculture, Forestry and Fishing activities), Health Services and Mining and Quarrying activities. Kenya’s economic growth has remained strong and resilient even under emerging global challenges, supported by strong public and private sector investment and appropriate economic and financial policies. The broad-based economic growth has averaged 5.7 percent for the last six years (2013 to 2018) outperforming the average growth rate of 4.7 percent in the period 2008 to 2012 and 5.4 percent in the period 2003 to 2007. Growth is estimated at 5.6 percent in 2019 and projected to recover to 6.1 percent in 2020 Per capita income rose from Ksh 113,539 in 2013 to an estimated Kshs 202,859 in 2019, a 79 percent increase. This enabled generation of around 831,000 new jobs per year in the period 2013 - 2018 up from 656,500 new jobs per year in the period 2008 -2012. we note the following main drivers of the growth by sector:  In the third quarter of 2019, the economy grew by 5.1 percent compared to a growth of 6.4 percent in a similar quarter in 2018, mainly supported by strong performance in the services sub-sector such as information and communication, transportation and storage, and accommodation and restaurant.  The agriculture sector recorded a decreased growth of 3.2 percent in the third quarter of 2019 compared to a growth of 6.9 percent in a similar quarter of 2018, as a result of delayed long rains. Consequently, the sector’s contribution to GDP growth declined to 0.6 percent in the third quarter of 2019 compared to 1.3 percent in the same period in 2018.  The non-agricultural sector (service and industry) remained vibrant and grew by 5.7 percent in the third quarter of 2019 down from a growth of 6.5 percent in a similar quarter in 2018. It has the largest percentage points contribution to real GDP growth at 4.0 in the third quarter of 2019, mainly supported by the services sector.  Services remained the main source of growth and expanded by 5.7 percent in the third quarter of 2019 compared to a growth of 6.5 percent in the same quarter of 2018. The service sector was supported by improved growth in accommodation and restaurant (9.0 percent), transport and storage (7.1 percent) and financial and insurance (5.6 percent). Growth of activities in information and communication (8.4 percent) and real estate (4.9 percent) also remained vibrant.  The services sector contributed 3.0 percentage points to real GDP growth in the third quarter of 2019 largely supported by Transport and storage (0.5 percentage points), wholesale and retail trade (0.4 percentage points) and Real estate (0.4 percentage points). 8 2.1.2: THE INFLATION RATE TREND Year-on-year overall inflation rate remained low, stable and within the Government target range of 5+/-2.5 percent since end 2017 demonstrating prudent monetary policies. The inflation rate was at 5.6 percent in December 2020 from 5.8 percent in December 2019. This lower inflation was supported by a reduction in food prices. Core inflation (Non-Food-Non-Fuel) contribution to inflation remain low at 0.8 percent in December 2020 compared to 0.4 percent in December 2019 reflecting muted demand pressures in the economy on account of prudent monetary policies. However, the contribution of fuel inflation to overall year- on-year inflation rose to 1.7 percent in December 2020 from 0.6 percent in December 2019 on account of increasing international fuel prices. The major driver of the overall inflation has been food inflation, but its contribution to overall inflation has declined from 4.5 percent in December 2019 to 2.9 percent in December 2020 on account of a reduction in food prices. Kenya’s rate of inflation compares favorably with the rest of Sub-Saharan Africa countries. In December 2020, Kenya recorded a lower inflation rate than Burundi, Ghana, Nigeria, Zambia and Ethiopia 2.1.4: INTEREST RATE Short-term interest rates remained fairly low and stable. The Central Bank Rate was retained at 7.00 percent on November 26, 2020 same as in April 2020 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 interbank rate declined to 5.1 percent in December 2020 from 6.0 percent in December 2019 in line with the easing of the monetary policy and adequate liquidity in the money market. The 91-day Treasury Bills rate was at 6.9 percent in December 2020 from percent in December 2019. Over the same period, the 182-day Treasury Bills rate declined to 7.4 percent from 8.2 percent while the 364-day decreased to 8.3 percent from 9.8 percent. 2.15: Balance of payment (BOP) The overall balance of payments position improved to a surplus of US$ 1,217.2 million (1.2 percent of GDP) in the year to September 2020 from a deficit of US$ 1,058 million (1.1 percent of GDP) in the year to September 2019 This was mainly due to an improvement in the current account balance. The current account deficit stood at $ 4,921.0 million (5.0 percent of GDP) in September 2020 from US$ 5,009.1 million (5.3 percent of GDP) in September 2019. The improvement in the current account balance was mainly due to the improvement in the merchandise account balance and the Net primary income balance. 9 The balance in the merchandise account improved by US$ 1,340.1 million to a deficit of US$ (8,947.5) million in the year to September 2020 because of a decline in imports and a marginal increase in exports. In the year to September 2020, exports grew by 2.8 percent primarily driven by tea exports, because of increased production and an increased demand for tea from the UK. On the other hand, imports declined by 7.3 percent in the year to September 2020, because of reduction in the volume of oil importation and decline in the value of imported manufactured goods, particularly iron, steel, machinery and transport equipment such as vehicles, and SGR related imports. 2.1.5 CAPITAL MARKET Activity The capital account balance registered a surplus of US$ 157.8 million in the year to September 2020. However, this was a US$ 48.9 million decline compared to the balance witnessed in September 2019. Net Financial Inflows declined to US$ 3,012.0 million from US$ 6,714.3 million in the year to September 2019 (Table 4). The financial inflows were mainly in the form of direct investments and other investments, which stood at US$ 482.4 million and US$ 4420.4 million, respectively in September 2020. The Net Portfolio investments outflows stood at US$ 1,189.5 million. 10 CHAPTER THREE 3.0: GLOBAL AND NATIONAL ECONOMIC OUTLOOK 3.1 NATIONAL ECONOMIC DEVELOPMENT OUTLOOK In 2020, the Kenyan economy was adversely affected by the outbreak of Covid-19 Pandemic and the swift containment measures, which have not only disrupted the normal lives and livelihoods, but also to a greater extent businesses and economic activities. As a result, our economy contracted by 5.7 percent in the second quarter of 2020 from a growth of 4.9 percent in the first quarter in 2020. The economy is therefore estimated to slow down to a growth of around 0.6 percent in 2020 from the earlier projection of 2.6 percent in the 2020 Budget Review and Outlook Paper (BROP). Economic growth is projected to recover to 6.4 percent in 2021 due to in part, the lower base effect in 2020. In terms of fiscal years, economic growth is projected to grow by 3.5 percent in FY 2020/21 and further to 6.2 percent over the medium term. The economy continues to register macroeconomic stability with low and stable interest rates and a competitive exchange rate that support exports. Year-on- year overall inflation remained within the Government target range of 5±2.5 percent in December 2020 at 5.6 percent from 5.8 percent in December 2019. This lower inflation was mainly supported by a reduction in food prices. The foreign exchange market has largely remained stable but partly affected by a significant strengthening of the US Dollar in the global markets and uncertainty with regard to the Covid-19 pandemic. Despite this, the current account deficit is estimated to improve to 5.1 percent in 2020 from 5.8 percent in 2019 mainly supported by an improvement in the trade balance. 3.2 IMPACT OF THE NATIONAL ECONOMIC OUTLOOK TO THE COUNTY ECONOMY The positive economic performance has a corresponding positive impact on the county economy. The county on its own guided by its own plans is making strides in key sectors such as Health, Water, infrastructure and social development to meet the unique needs of its deserving population. Over the last 5 years, the county has invested massive resources into projects such as tarmacking and murraming of roads, constructing and upgrading of water infrastructure and construction of health facilities. The results of these investments is beginning to be felt across the county inform of adequate water, good road networks and functioning health services. The county will continue with its reform agenda to realize best results for its people by taking the following measures  Improving local revenue collection to boost its resource base for budgetary support  Adoption of Program Based Budgeting to guarantee maximum value for money in its budgetary allocations  Liaise with security stakeholders to create secure environment that can enhance investments and service delivery  Initiate measures to boost vulnerable members of society such as cooperative loans and scholarships to need students. 3.3 FISCAL PERFORMANCE OF THE 2020/2021 BUDGET 3.4 FISCAL OUTLOOK The fiscal assumption underlying the FY 2020/2021 budget is that there would be improved revenue collection from local sources and timely release of funds by the National Treasury. 3.5 FINANCIAL ANALYSIS OF COUNTY BUDGET IMPLEMENTATION The County had an approved budget of Kshs 13,319,725,092, which consisted of Kshs. 7,169,045,514 (54%) for recurrent expenditure, and Kshs. 6,150,679,578 (46%) for Development. 3.6 BUDGET COMPONENTS In order to finance the budget, the County expects to get Kshs. 10,222,950,000 equitable share of revenue allocated by Commission on Revenue Allocation, Local revenue of Kshs. 200,037,792 and various conditional grants in amount of Kshs 1.5 billion. Further Kshs. 1.39 billion relates to projects brought forwards from the financial year 2019/2020. TABLE 1: BUDGET COMPONENTS The table summarizes county revenues for FY 2019/2020 and 2020/2021 budget MANDERA COUNTY GOVERNMENT BUDGET ESITMATE FOR FY 2020/2021 REVENUE SUMMARY 2020/2021 FY 2020/2021 Percentag 2019/2020 Approved e Funding Types Revenue summary By Sources Kshs. Kshs. % Equitable Sharable Equitable share of Revenue Revenue 10,222,950,000 10,222,950,000 77% Own Source Revenue Local Revenue Collections 183,559,629 200,037,792 2% On-Going Development Projects funds b/f from 2017/2018 - Unutilized Exchequer 2021/2020 1,210,949,522 883,762,901 7% from 2018/2019 FY 2019/2020 FY Projects that could not be implemented 163,769,117 - 0% Conditional Grant by Road Maintenance Fuel Levy National Government (Conditional Grant) 290,185,219 304,694,480 2% Institutions Road Maintenance Fuel Levy (Conditional Grant) B/F from 19/20 - Fund Released 160,026,064 1% Development of youth Polytechnics 22,113,298 15,049,894 0% Sweden -Agricultural Sector Development Support Progam (ASDSP) II - Co Funding - 2,500,000 0% Grant of Kshs 5 billion for Covid- 19 Responses among the 47 Counties – Mandera Share - 91,323,000 1% Medical Staff Allowances - 31,845,000 0% Foregone user fees in Health Facilities in rural Area (Conditional Grant) 25,474,920 25,474,920 0% Conditional Grants - World Bank/Japan Funding for Development Partners Health sector - Transforming Health care - Universal Health 65,351,998 144,609,161 1% Danida Funding for Health sector - Transforming Health care - Universal Health 30,281,250 29,070,000 0% World Bank/Japan Funding for Health sector - Transforming Health care - Universal Health 2017/2018 - Amount in SPA - 9,604,002 0% World Bank/Japan Funding for Health sector - Transforming Health care - Unversal Health b/f 2018/2019. Amount not yet released - 14,826,792 0% Kenya Devolution support Program (KDSP) B/F (from 17/2018) - Amount n SPA 4,295,329 0% Danida Funding for Health sector - Transforming Health care - Universal Health - Covid - 19 Support - 11,305,000 0% Kenya Devolution Support Program - Level I 30,000,000 45,000,000 0% Kenya Devolution Support Program b/f 235,542,828 0% Kenya Devolution Support Program for 2018/2019 funds to be released in 2020/2021 58,673,488 58,673,488 0% Kenya Urban Development Support Program 175,819,500 175,819,500 1% Kenya Urban Institutional grant 8,800,000 0% Kenya Climate smart Agriculture Project (NEDI) 200,000,000 324,000,000 2% Sweden -Agricultural Sector Development Support Progam (ASDSP) II 22,822,072 14,548,048 0% Kenya Climate Smart Agriculture Project (NEDI) - Conditional Grant B/F - amount yet to be released 49,173,647 0% Agricultural Sector Development Support Program (ASDSP) (Conditional Grant) B/F - Amount in SPA 6,387,012 0% Kenya Devolution Support Program b/f - Amount in SPA - Malbe and Lafey Hospital 84,075,528 1% Conditional Grant from KDSP(balance from 6,100,000) B//F 640,901 0% Kenya Urban Support Program (Conditional Grant) b/f - Not 98,923,344 1% Released Kenya Urban Institutional grant b/f from 2019/2020 8,800,000 0% Kenya Devolution Support Program 143,000,000 1% Kenya Urban Development Support Program b/f from 2019/2020 (50,066,573 not Released while 79,242,718 not yet releassed) 129,309,291 1% Kenya Devolution Support Program - Level I b/f from 2019/2020 30,000,000 0% Kenya Urban and Institutional Grant b/f 41,200,000 0% GRAND TOTAL 13,118,313,035 13,319,725,092 100% 3.7 REVENUE PERFORMANCE ANALYSIS During the first and second quarters of FY 2020/2021, the County received Kshs. 4,252,747,200 as equitable share of revenue raised nationally, raised Kshs. 70,154,020 from own source revenue, and had a cash balance of Kshs. 507,089,450 from FY 2019/2020. The County also received Kshs. 165,056,691 as conditional grant funds during the reporting period. The total funds available for budget implementation amounted to Kshs. 4,995,047,361. 3.7.1 OWN SOURCE REVENUE PERFORMANCE The County Government targeted to collect Kshs. 200,037,791 from local sources during FY 2020/2021. The actual achievement during the first and second quarter was Kshs. 70,154,020 million which translates to 35% of the targeted collection. This represented an increase from Kshs. 50,271,685 million generated in the first half year of FY 2019/2020. TABLE 2: OSR PERFORMANCE PER STREAM In the period under review, the County’s top performing streams included Land rates, Hospital collections, Land Transfers, Single Business Permits, Miraa movements, Market stalls and Slaughter charges. Notable nose-dive in revenue collection was on income from Income from Water Management, public health and tender documents. The monthly collection breakdown is shown in table below. Mandera County Government FY 2020/2021 Half Year Own Source Revenue performance (Monthly Analysis) Target Revenue Sources 2020/2021 July August September October November December Total Kshs. Kshs. Kshs. Kshs. Kshs. Kshs. Kshs. Kshs. Land rents 47,399,995 3,369,000 3,486,650 3,657,600 3,235,820 1,708,410 2,625,900 18,083,380 Plot Tranfers/Sub- Divisions/Application Fees 27,692,722 1,325,000 1,462,000 1,319,000 781,950 1,676,950 1,096,000 7,660,900 Miraa Movements 7,263,768 978,000 988,000 958,000 962,000 951,000 1,071,000 5,908,000 single Business Permit 23,084,457 1,258,700 1,413,200 683,900 232,000 57,000 148,500 3,793,300 Markets stalls 6,257,201 292,800 441,100 1,257,100 596,800 624,757 567,300 3,779,857 Market Gates 734,936 9,410 - - - 19,110 34,560 63,080 Market Shades 3,536,802 132,800 104,600 110,900 - 174,800 162,000 685,100 Buspark/Taxis/Parking 1,150,000 54,275 44,200 82,950 111,800 56,200 137,850 487,275 Income from Quaries/Natural Resources 805,000 63,200 48,700 52,200 63,280 38,100 141,569 407,049 Building plan - 175,500 55,000 399,300 36,000 32,000 36,000 733,800 Barriers 8,317,387 431,660 429,280 362,000 330,950 497,582 478,383 2,529,855 Livestock Markets 4,180,908 386,400 317,200 325,400 362,510 428,650 424,550 2,244,710 Livestock Movement 7,885,796 681,050 503,500 276,550 235,600 302,280 406,000 2,404,980 Slaughter fees and Charges 9,716,214 575,500 524,600 523,480 575,300 558,250 603,900 3,361,030 Produce Cess 635,704 174,000 90,800 108,888 113,000 21,500 61,625 569,813 Agriculture Mechanization/Hire of Equipments 1,380,000 14,000 - 132,000 - 3,000 18,000 167,000 Income from Sale of Tenders documents 837,765 - Rental income - - - - - 169,150 190,000 359,150 Tender 5,448,082 - Public Health 3,900,150 224,808 190,450 117,800 7,000 9,800 7,000 556,858 Hospital collection 30,892,981 1,943,566 2,011,340 2,550,768 2,805,270 2,653,450 2,822,939 14,787,333 Income from Water Management 8,917,923 277,250 282,800 401,000 222,000 208,500 180,000 1,571,550 Grand Toatal 200,037,792 12,366,919 12,393,420 13,318,836 10,671,280 10,190,489 11,213,076 70,154,020 3.8 EXCHEQUER ISSUES The Controller of Budget approved withdrawal of Kshs. 4,252,747,200 from the CRF account, which was 32 per cent of the Approved Budget. This amount represented an increase of from Kshs. 3,618,924,300 (28 per cent) approved in the first half of FY 2019/2020 and was meant to fund both development and recurrent expenditures. 3.9 CONDITIONAL GRANTS The County received Kshs. 165,056,691 as conditional grants. This comprised of Kshs. 14,535,000 from Danida Funding for Health sector, Kshs. 50,066,573 from Kenya Urban Support Programme and Kshs 100,455,119 from Kenya Climate Smart Agriculture Project (KCSAP). TABLE 3: REVENUE PERFORMANCE BY SOURCE (JULY 2020- JANUARY 2021) MANDERA COUNTY GOVERNMENT FY 2020/2021 REVENUE PERFORMANCE REPORT Annual Targeted Actual Revenue No. Revenue Stream Percentage Revenue (Kshs.) ( K s hs.) 1 Equitable share of Revenue 10,222,950,000 3,373,573,500 33% 2 Local Revenue Collections 200,037,792 70,154,020 35% On-Going Development Projects 3 funds b/f from 2017/2018 - 883,762,901 885,144,229 100% 2021/2020 Road Maintenance Fuel Levy 4 304,694,480 - 0% (Conditional Grant) Road Maintenance Fuel Levy 5 (Conditional Grant) B/F from 19/20 - 160,026,064 160,026,064 100% Fund Released 6 Development of youth Polytechnics 15,049,894 6,650 0% Sweden -Agricultural Sector 7 Development Support Program 2,500,000 - 0% (ASDSP) II - Co Funding Grant of Kshs 5 billion for Covid- 19 8 Responses among the 47 Counties – 91,323,000 91,323,000 100% Mandera Share 9 Medical Staff Allowances 31,845,000 31,845,000 100% Foregone user fees in Health 10 Facilities in rural Area (Conditional 25,474,920 - 0% Grant) World Bank/Japan Funding for 11 Health sector - Transforming Health 144,609,161 - 0% care - Universal Health Danida Funding for Health sector - 12 Transforming Health care - Universal 29,070,000 - 0% Health World Bank/Japan Funding for Health sector - Transforming Health 13 9,604,002 - 0% care - Universal Health 2017/2018 - Amount in SPA World Bank/Japan Funding for Health sector - Transforming Health 14 14,826,792 14,535,000 98% care - Universal Health b/f 2018/2019. Amount not yet released Kenya Devolution support Program 15 (KDSP) B/F (from 17/2018) - 4,295,329 0% Amount n SPA Danida Funding for Health sector - 16 Transforming Health care - Universal 11,305,000 11,305,000 100% Health - Covid - 19 Support Kenya Devolution Support Program - 17 45,000,000 - 0% Level I Kenya Devolution Support Program 18 for 2018/2019 funds to be released in 58,673,488 - 0% 2020/2021 Kenya Urban Development Support 19 175,819,500 50,066,573 28% Program Kenya Climate smart Agriculture 20 324,000,000 100,455,119 31% Project (NEDI) Sweden -Agricultural Sector 21 Development Support Progam 14,548,048 - 0% (ASDSP) II Kenya Climate Smart Agriculture 22 Project (NEDI) - Conditional Grant 49,173,647 - 0% B/F - amount yet to be released Agricultural Sector Development Support Progam (ASDSP) 23 6,387,012 - 0% (Conditional Grant) B/F - Amount in SPA Kenya Devolution Support Program 24 b/f - Amount in SPA - Malbe and 84,075,528 - 0% Lafey Hospital Conditional Grant from 25 640,901 - 0% KDSP(balance from 6,100,000) B//F Kenya Urban Support Program 26 (Conditional Grant) b/f - Not 98,923,344 - 0% Released Kenya Urban Institutional grant b/f 27 8,800,000 - 0% from 2019/2020 28 Kenya Devolution Support Program 143,000,000 129,309,291 90% Kenya Urban Development Support Program b/f from 2019/2020 29 129,309,291 50,066,573 39% (50,066,573 not Released while 79,242,718 not yet releassed) Kenya Devolution Support Program - 30 30,000,000 30,000,000 100% Level I b/f from 2019/2020 TOTAL 13,319,725,092 4,997,810,017 38% Source: Mandera County Treasury 3.10 EXPENDITURE ANALYSIS st The overall county expenditure for the period ending 31 January, 2021 amounted to Kshs 4,654,274,283 out of which Kshs. 1,845,060,814 was for Operation & Maintenance and Kshs. 1,655,739,443 for Personnel emoluments. Transfers amounting to Kshs. 278,067,221 and Kshs. 100,000,000 were made to the County Assembly and Mandera Water and Sewerage Company respectively for their operations while Mandera Municipality received Kshs. 90,000,000 for the same. Transfers of Kshs. 28,000,000 and Kshs. 21,000,000 were made to Elwak Municipality and Elwak Water and Sewerage Company respectively. A transfer of Kshs. 91,323,000 was also made to the Ministry of Health and Kshs. 25,690,000 were transferred to health facilities. Expenditures amounting to Kshs. 1,332,210,360 were utilized on development programmes. This represents an overall absorption rate of 35 percent against the FY 2020/2021 budget. 3.11 EXPENDITURE BY ECONOMIC CLASSIFICATION Out of the total expenditures, the expenditures on salaries amounted to 35%, whereas use of goods expenditures amounted to 22% of the total expenditures. A total of Kshs. 1,332,210,360 billion was incurred on development expenditures during the period. Expenditure by Economic Classification 22% 29% 14% 35% Development Projects Salaries and Wages Transfers to other entities Operations and Maintenance Figure 1: Expenditure by Economic Classification From the analysis of the above figure, Salaries and wages had the highest absorption at 35% while development projects as well as expenditures on Operation & Maintenance had an absorption rate of 25% and 22% respectively. Transfers to other county entities made up 14% of the total absorption in the period under review. 3.12 BUDGET AND BUDGET PERFORMANCE BY COUNTY DEPARTMENTS 3.12.1 BUDGET ESTIMATES The County Government’s mandate as stipulated by the Constitution of Kenya is discharged by Departments through implementation of projects and programs. These projects and programs are allocated funds through County Budgeting process. In the FY 2020/2021, the County Departments were funded in line with the ceilings captured in the 2020 County Fiscal Strategy Paper drawn to champion key priority programmes highlighted in the second Mandera County Integrated Development Plan (2018-2022). Table 4 shows the breakdown of county’s budget per ministry in FY 2020/2021. TABLE 4: RESOURCE ALLOCATION AMONG THE MINISTRIES The highest beneficiary of the FY 2020/2021 budget allocation was the Ministry of Health Services getting Kshs 2,923,464,913.12 (22 percent), followed by the Ministry of Water, Environment and Natural Resources getting Kshs 2,442,469,665.70 (18 percent) while both the Ministry of Public Service Management and the Ministry of Public Works, Roads and Transport were allocated Kshs 1,481,257,767.78 (11 percent) and Kshs. 1,462,771,004.19 (11 percent) respectively. Other departments were allocated below 10 percent. MANDERA COUNTY GOVERNMENT APPROVED BUDGET FOR FY 2020/2021 Departmental Allocations Recurrent Development Departments Expenditure Expenditure Total Allocation % Ministry of Agriculture Livestock and Fisheries 238,840,955.91 897,587,062.78 1,136,428,018.69 9% Ministry of Education, Culture and Sports 325,863,122.45 361,020,068.00 686,883,190.45 5% Ministry of Gender, Youth and Social Service 73,515,054.65 123,890,988.00 197,406,042.65 1% Ministry of Finance 586,750,086.31 51,825,600.00 638,575,686.31 5% Ministry of Health Services 2,042,920,853.04 880,544,060.08 2,923,464,913.12 22% Ministry ofTrade, Investments Industrializations and Cooperative Development 49,492,635.86 135,957,580.50 185,450,216.36 1% County Assembly 790,834,897.00 221,218,667.00 1,012,053,564.00 8% Lands, Housing and Physical Planning 317,415,231.62 281,744,751.95 599,159,983.57 4% Office of the Governor and Deputy Governor 472,202,366.80 - 472,202,366.80 4% County Public Service Board 69,602,672.49 12,000,000.00 81,602,672.49 1% Ministry of Public Service, Management and Devolved Unit 1,331,886,296.38 149,371,471.40 1,481,257,767.78 11% Public Works Roads and Transport 154,109,033.33 1,308,661,970.86 1,462,771,004.19 11% Ministry of Water, Environment and Natural Resources 715,612,308.49 1,726,857,357.21 2,442,469,665.70 18% GRAND TOTAL 7,169,045,514.34 6,150,679,577.78 13,319,725,092.12 100% 3.13 DEPARTMENTAL EXPENDITURES During the period under review, the County Government did not undertake any development or recurrent expenditures in quarter one. Expenditures totaling to Kshs 4,654,274,283 for both development and recurrent programmes incurred in quarter two. This expenditure represented 35% of the county’s approved budget. 3.13.1 DEVELOPMENT EXPENDITURE PERFORMANCE The overall performance for the county’s development budget stands at 22%. Funds totaling Kshs. 1,332,210,360 was spent across 11 spending units of the County Government. The Ministry of Water, Environment and Natural Resources recorded the highest overall absorption rate at 35% followed by the Ministry of Health Services and the Ministry of Agriculture, Livestock and Fisheries at 20%. The Ministry of Public Works Roads and Transport and the Ministry of Lands, Housing and Physical Planning recorded the fourth and fifth highest absorption rates at 19% each. Other Ministries recorded less than 10% absorption rate. The following factors were responsible for low absorption rate;  Revenue sharing formula stalemate in the Senate during the Division of Revenue Act 2020 which led to delays in the preparation and approval of the County’s budget documents for FY 2020/2021.  Slow and cumbersome tendering process  Technical and capacity challenges in application of IFMIS  Delays in approval of request for funds by office of controller of budget THE TABLE 5 ANALYSES DEVELOPMENT EXPENDITURE PERFORMANCE BY MINISTRIES. Development Departments Estimates Development Expenditure Percentage County Assembly 221,218,667.00 - 0% Ministry of Agriculture, Livestock and Fisheries 897,587,062.78 176,579,847.75 20% Ministry of Education, Culture and Sports 361,020,068.00 50,000,000.00 14% Ministry of Gender, Youth and Social Services 123,890,988.00 - 0% Ministry of Finance & Economic Planning and ICT 51,825,600.00 - 0% Ministry of Health Services 880,544,060.08 178,579,009.20 20% Ministry of Trade, Investments, Industrialization, and Cooperative Development 135,957,580.50 10,000,000.00 7% Lands, Housing Developments and Physical Planning 281,744,751.95 53,066,572.70 19% Office of the Governor and Deputy Governor - - 0% County Public Service Board 0% 12,000,000.00 - Ministry of Public Service Management and Devolved Units 149,371,471.40 10,450,483.40 7% Public Works Roads and Transport 1,308,661,970.86 247,914,278.00 19% Ministry of Water, Energy, Environment, Natural Resources Tourism and Wildlife 1,726,857,357.21 605,620,169.08 35% GRAND TOTAL 6,150,679,577.78 1,332,210,360.13 22% 3.13.2 RECURRENT EXPENDITURE PERFORMANCE Funds totaling to Kshs 3,322,063,923 was spent on the recurrent vote across all the 13 spending units of the County Government. The overall performance for the county’s recurrent budget stands at 46%. The Ministry of Ministry of Roads, Public Works and Transport recorded the highest overall absorption rate at 56% followed by the Ministry of Education, Culture and Sports at 54%. The Ministry of Health Services and the Ministry of Water, Environment and Natural Resources recorded the third and fourth highest absorption rates at 53% and 52% respectively. The Ministry of Agriculture, Livestock and Fisheries and the Ministry of Finance & Economic Planning and ICT were the worst performers recording 31% and 29% respectively. Overall, the recurrent vote performed better than the development vote. The following factors were responsible for low absorption rate;  Slow and cumbersome procurement process  Technical and capacity challenges in application of IFMIS  Delays in approval of request for funds by office of controller of budget  Slow release of funds from national treasury THE TABLE 6 ANALYSES RECURRENT EXPENDITURE PERFORMANCE BY MINISTRIES. Departments Recurrent Estimates Recurrent Expenditure Percentage County Assembly 790,834,897.00 278,067,221.20 35% Ministry of Agriculture, Livestock and Fisheries 238,840,955.91 73,485,856.07 31% Ministry of Education, Culture and Sports 325,863,122.45 174,961,852.13 54% Ministry of Gender, Youth and Social Services 73,515,054.65 26,281,149.10 36% Ministry of Finance & Economic Planning and ICT 586,750,086.31 169,548,034.34 29% Ministry of Health Services 2,042,920,853.04 1,045,870,212.71 51% Ministry of Trade, Investments, Industrialization, and Cooperative Development 49,492,635.86 22,307,682.00 45% Lands, Housing Developments and Physical Planning 317,415,231.62 167,659,301.00 53% Office of the Governor and Deputy Governor 472,202,366.80 168,794,190.13 36% County Public Service Board 69,602,672.49 26,807,705.55 39% Ministry of Public Service Management and Devolved Units 1,331,886,296.38 696,963,579.22 52% Public Works Roads and Transport 154,109,033.33 86,851,008.00 56% Ministry of Water, Energy, Environment, Natural Resources Tourism and Wildlife 715,612,308.49 384,466,131.67 54% GRAND TOTAL 7,169,045,514.34 3,322,063,923.12 46% Implementation Challenges The county experienced several issues that affected budget implementation during the half year of the financial year 2020/2021. These are:  Revenue sharing formula stalemate in the Senate during the Division of Revenue Act 2020 which led to delays in the preparation and approval of the County’s budget documents for FY 2020/2021.  There was delay by the National Treasury to disburse the equitable share of revenue raised nationally. This affected implementation of development activities. This delay led to non- absorption of the development budget during the first quarter of FY 2020/2021.  Increased public awareness about their rights has seen an increase in agitation for better service delivery.  Underperformance in own source revenue collection This was due to, amongst other reasons, ineffective monitoring, insecurity, High rate of poverty, and shortage of staff. CHAPTER FOUR 4.0: FISCAL FRAMEWORK AND STRUCTURAL MEASURES FOR FY 2021/2022 AND THE MEDIUM-TERM 4.1 OVERVIEW The 2021/22 Medium-Term Fiscal Policy aims at supporting a sustainably wealthy and vibrant county providing high quality services to improve the livelihoods of its citizens. The county will pursue prudent fiscal policies to ensure economic growth and development. In addition, these policies will provide support to economic activities while allowing for sustainable implementation of the projects and programs. Adhering to these policies will also enhance Own Source Revenue collection that will ensure there are adequate resources for capital investments. The total resource envelope for FY 2021/22 is expected to be Kshs 11,756,645,789. Based on the budget policy statement for FY 2021/22 and the trend of growth of the County revenues. The County Government will strive to ensure that the budget is balanced in the medium term and that expenditure for development will meet the minimum threshold of 30%, across the FY 2021/2022 and FY 2022/23. Expenditure ceilings for financial year 2021/2022 will based on county priorities extracted from the CIDP 2018-2022, ADP 2021/22 and the sector working group reports for each of the sectors. Moreover, the ceilings were also adjusted based on reduction on total revenue, expenditure trends and the changes in priority based on sector working group discussions. Expenditure related to conditional funding, grants has been ring fenced based on the purpose for the funding, and estimates developed and included in the sector working group reports. 4.2: FISCAL POLICY The government’s fiscal policy objective in the medium term will be to focus resources to priority 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 other county plans; and in accordance with fiscal responsibility principles as set out in section 107 of the PFM Act 2012. In this regard, the county government is committed to keeping recurrent spending at sustainable levels and devotion of more funds to development. Reforms in the budget expenditure management and revenue administration will be implemented to increase efficiency, reduce wastages and increase revenues collected and hence create fiscal space that frees more funds for productive areas. The county government is truly committed to implementing a program based budget system in the following financial year. This is expected to create budget clarity that emphasis on results as opposed to mere absorption of funds. 4.3: SPENDING PRIORITIES The FY 2021/22 budget framework is set out against background of the medium term fiscal policy of the county government and county government’s broad policies as domesticated in the County through the CIDP, the ADP and departmental strategic plans. Considering the limited resources facing the county Government, and competing needs for funding, priorities for funding in FY 2021/2022 will be given to projects/programmes that focus on strategic interventions. These programmes will be geared towards promotion of service delivery that supports social development, economic growth and transformation of the County. The projects to be funded must also be in line with the county goals and objectives as outlined in this CFSP, the CIDP and the ADP. In this regard, ministries are required to rationalize and prioritize their expenditure programmes in the FY 2021/22 to focus only on the strategic interventions and projects as captured in these documents. 4.3: FISCAL STRATEGY FOR FY 2021/2022 The FY 2021/2022 fiscal strategy has been designed to address Following objectives: • Fast tracking of implementation of development programs to encourage faster absorption of funds • Completion of all ongoing projects • Streamlining and improving local revenue performance to realize more Resources • Transparency and accountability on budget allocations and implementation as required by law. • Devolving services closer to the people and ensuring count services are visible in all parts of the county. • Under take programs that will address the plight of the most vulnerable in the Society. This will entails building some shelter for them as well as providing some sources livelihood inform of a given heads of livestock. 4.4: RISKS TO THE COUNT’S FISCAL PERFOMANCE Despite its ambitious development agenda, the county faces a number of risks and uncertainties that curtail realization of its objectives. Some specific risks to the county’s fiscal performance are: • Reduction in county population in 2019 census result that has since been disputed in court will significantly impact in reduction of resource allocation by CRA. • Low performance by local revenue collections results in budget deficits. • Delays of release of funds from national treasury • Large portfolio of ongoing projects that will reduce resources available for new investments • Insecurity that poses the single biggest risk to the implementation of the County projects • New IFMIS requirements such as e-sourcing create slow and cumbersome procurement processes. CHAPTER FIVE 5.0: DETAILS OF CEILINGS AND MINISTRIAL PRIORITIES 5.1: RESOURCE ALLOCATION GUIDELINES Resource allocation for the FY 2021/22 will be geared towards financing priority programmes and projects that will culminate in the realization of county strategic objectives such as ; Food security, provision of adequate and clean water, boosting road infrastructure, Well Functioning Universal Health Care, support to ECD and vocational training as well as addressing the plight of the most vulnerable in our society. In this regard, special focus will be directed areas such as:  Sound governance, transparency and accountability and Human Resource productivity in the delivery of services to the county residents. To achieve this, adequate resources will be committed to staff salaries, allowances and capacity buildings.  Promotion of accessible and affordable health care for all County resident by providing skilled health staff and drugs  Improving food security by encouraging Agricultural production through increased extension services to reduce cost to farmers and support to small scale farmers.  Expansion and maintenance of road infrastructure and network to enhance productivity and reduce cost of doing business in the county  Promotion of ECDs and adult education to uplift county literacy levels  Investing in youth and women by ways of grants and Scholarships/Bursary  Under take programs that will address the plight of the most vulnerable in the Society In establishing budget ceilings for the financial year and subsequent financial allocations, nondiscretionary expenditures take first charge. Examples of these include statutory obligations such as salaries and other related staff expenses. In development expenditure, first consideration will be given to the completion of ongoing projects while availing adequate resources to the new projects that are key to growth of the County. Priority will be given to projects identified in the CIDP, ADP and the public participation reports. Projects proposals will be subjected to rigorous scrutiny to ensure they are in line with the county vision and development plans. Costing of programs will also be closely monitored to ensure there are no future variations and adjustments. 5.2: REVENUE PROJECTION Unfortunately, Budget Policy Statement for 2021/2022 did not provide adequate information to make full projection for the county allocation for the same year. This is particularly so in the area of conditional grant. While it proposes to consolidate four of the Conditional grants issued by the National Government (RMLF, development of youth Polytechnics, User fee for gone and level 5 hospital grants), it’s quite other donor supported grants such as Danida, Smart Agriculture UHC, KDSP and KUSP etc. Accordingly, its only possible to estimate here for now equitable and shareable revenue and own source revenue. These are summarized below TABLE 7 BELOW: SUMMARIZES THE REVENUES EXPECTED IN THE 2021/2022 FINANCIAL YEAR FOR MANDERA COUNTY GOVERNMENT. THE COMPARATIVE FOR 2020/2021 MANDERA COUNTY GOVERNMENT; REVENUE ESITMATE FOR FY 2021/2022 REVENUE 2020/2021 SUMMARY Approved 2020/2021 FY Funding Types Revenue summary By Sources Kshs Equitable Sharable Equitable share of Revenue Revenue 10,222,950,000 11,190,382,598 98% Own Source Revenue Local Revenue Collections 200,037,792 200,037,792 2% Utilized Exchequer On-Going Development Projects from 2019/2020 FY funds b/f from 2019/2021 883,762,901 0% Conditional Grant by Road Maintenance Fuel Levy National Government (Conditional Grant) 304,694,480 0% Institutions Road Maintenance Fuel Levy (Conditional Grant) B/F from 19/20 - Fund Released 160,026,064 0% Development of youth Polytechnics 15,049,894 0% Sweden -Agricultural Sector Development Support Progam (ASDSP) II - Co Funding 2,500,000 0% Grant of Kshs 5 billion for Covid- 19 Responses among the 47 Counties – Mandera Share 91,323,000 0% Medical Staff Allowances 31,845,000 0% Foregone user fees in Health Facilities in rural Area (Conditional Grant) 25,474,920 0% Conditional Grants - World Bank/Japan Funding for Development Partners Health sector - Transforming Health care - Universal Health 144,609,161 0% Danida Funding for Health sector - Transforming Health care - Universal Health 29,070,000 0% World Bank/Japan Funding for Health sector - Transforming Health care - Unversal Health 2017/2018 - Amount in SPA 9,604,002 0% World Bank/Japan Funding for Health sector - Transforming Health care - Unversal Health b/f 2018/2019. Amount not yet released 14,826,792 0% Kenya Devolution support Program (KDSP) B/F (from 17/2018) - Amount n SPA 4,295,329 0% Danida Funding for Health sector - Transforming Health care - Universal Health - Covid - 19 Support 11,305,000 0% Kenya Devolution Support Program - Level I 45,000,000 0% Kenya Devolution Support Program b/f 0% Kenya Devolution Support Program for 2018/2019 funds to be released in 2020/2021 58,673,488 0% Kenya Urban Development Support Program 175,819,500 0% Kenya Urban Institutional grant 0% Kenya Climate smart Agriculture Project (NEDI) 324,000,000 0% Sweden -Agricultural Sector Development Support Progam (ASDSP) II 14,548,048 0% Kenya Climate Smart Agriculture Project (NEDI) - Conditional Grant B/F - amount yet to be released 49,173,647 0% Agricultural Sector Development Support Progam (ASDSP) (Conditional Grant) B/F - Amount in SPA 6,387,012 0% Kenya Devolution Support Program b/f - Amount in SPA - Malbe and Lafey Hospital 84,075,528 0% Conditional Grant from KDSP(balance from 6,100,000) B//F 640,901 0% Kenya Urban Support Program (Conditional Grant) b/f - Not Released 98,923,344 0% Kenya Urban Institutional grant b/f from 2019/2020 8,800,000 0% Kenya Devolution Support Program 143,000,000 0% Kenya Urban Development Support Program b/f from 2019/2020 (50,066,573 not Released while 79,242,718 not yet releassed) 129,309,291 0% Kenya Devolution Support Program - Level I b/f from 2019/2020 30,000,000 0% Kenya Urban and Institutional Grant b/f 0% TOTAL 13,319,725,092 11,390,420,390 100% The county relies heavily on the equitable share followed by conditional grants. Own source revenue is quite low due to the fiscal structure and revenue raising capabilities available to the County. Traditionally, some amount of funds will remain unspent at end of the financial year. This amount cannot be reliably established at this stage. However, going by the trends of previous years, some of this year’s budget will be carried forward to the following year budget as unspent but committed funds. This amount of funds will become clearer as we approach the final phase of budget preparation at the closure of the financial year. 5.3: PRIORITIZATION AND ALLOCATION OF RESOURCES The County Government will continue with its policy of expenditure prioritization with a view to funding core services, ensuring equity and minimizing costs through the elimination of duplication and inefficiencies. The following measures will be adopted as a guideline for resource allocation: 1. Linkage of projects and programmes with the objectives of the County Integrated Development Plans: The County, in its resource allocation will ensure there is a linkage between plans and budget. Information derived planning documents and CIDP (2018-2022) will guide resource allocation in the FY 2020/21. 2. Adherence to Annual Development Plan: Another criterion that will be used in prioritization and allocation of resources is that programmes that have been identified in the 2020/21 Annual Development Plan. 3. Degree to which the programme is addressing the core mandate of the county entity: Projects and Programmes that address the core mandate of the county government will be given priority. The critical sector include Health, Water, Road and other infrastructure, Agriculture and Livestock as well as Education and sports 4. Expected outputs and outcomes from a programme: Projects and Programmes that have high output and impact will be selected for implementation over those that have a low output and low impact. 5. Cost effectiveness and sustainability of a projects/ programmes: Projects and programmes that are cost effective and sustainable will be given a higher priority over those that are unsustainable and have a high cost. 5.4: MINISTRIAL CEILINGS Having identified the key criteria for allocation of resources among the various competing interest, having also established the likely amount of resource available, here blow we allocate these resources as per the table below. Table 8: showing the full allocation to the ministries for FY 2021/2022 SUMMARY OF PROPOSED DEPARTMENTAL CEILING FY 2021/2022 Proposed Departmental Ceiling for 2021/2022 Departments Financial Year Approved Departmental Total Allocation for Recurrent Development Departmental 2020/2021 Expenditure Expenditure Ceiling Percentage Ministry of Agriculture Livestock and Fisheries 1,136,428,019 333,656,368 408,164,956 741,821,324 7% Ministry of Education, Culture and Sports 686,883,190 411,173,787 246,704,272 657,878,059 6% Ministry of Gender, Youth and Social Service 197,406,043 157,911,325 70,901,304 228,812,629 2% Ministry of Finance 638,575,686 716,726,837 29,353,917 746,080,754 7% Ministry of Health Services 2,923,464,913 2,160,010,909 329,515,792 2,489,526,701 22% Ministry ofTrade, Investments Industrializations and Cooperative Development 185,450,216 91,981,361 66,607,192 158,588,553 1% County Assembly 1,012,053,564 831,967,944 103,494,028 935,461,972 8% Lands, Housing and Physical Planning 599,159,984 477,177,062 35,197,183 512,374,245 4% Office of the Governor and Deputy Governor 472,202,367 403,805,892 - 403,805,892 4% County Public Service Board 81,602,672 50,474,069 40,000,000 90,474,069 1% Ministry of Public Service, Management and Devolved Unit 1,481,257,768 1,063,357,582 122,655,199 1,186,012,781 10% Public Works Roads and Transport 1,462,771,004 307,813,228 743,081,709 1,050,894,936 9% Ministry of Water, Environment and Natural Resources 2,442,469,666 611,439,315 1,577,249,159 2,188,688,474 19% GRAND TOTAL 13,319,725,092 7,617,495,678 3,772,924,712 11,390,420,390 100% 67% 33% 11,390,420,390 The setting of the above ceiling for all the spending units within the county government is the most difficult one due to the fact that there are a lot of on-going projects that needs to be completed in the coming financial year such as the County Headquarter, Governor’s residence, County Hotel, Kutulo Sub County Hospital, Borehole 11 Hospitals, Operationalization of the Koromey Irrigation schemes etc as well as anticipated recruitment of more than 1,200 staff to improve service delivery. This has been made worse by the anticipated reduction in the Equitable Shareable Revenue. For the first time, our recurrent expenditure is estimated to take up more than 60% of our total budget with personnel and other related cost like insurance and pensions taking up 53% of the recurrent expenditure and 32% of the total budget. CONCLUSION Budgetary resources are always limited against limitless priorities and needs. It is imperative therefore that ministries prioritize their programmes within the available resources to ensure that utilization of public funds are in line with the overall county government priorities. Ministries need to carefully consider detailed costing of projects, strategic significance, deliverables (output and outcomes), alternative interventions, administration and implementation plans in allocating resources. There is also need to ensure that recurrent resources are being utilized efficiently and effectively before funding is considered for programmes. The set of policies highlighted in this CFSP aims at striking a balance between the ever changing needs of the county government and the content of strategic documents like the CIDP and the fiscal responsibility principles outlined in the PFM law. The fiscal policies are also in line with the tone of the national strategic objectives such as the Big Four Agenda. ANNEX CFSP PUBLIC PARTICIPATION INPUT MANDERA SOUTH SUB – COUNTY NEW LOCATION/WARD ISSUE/CHALLENGES SECTOR PROPOSED RESPONSIBLE PPROJECTS Murruming of  Chachabole- Poor roads networks ROADS AND PUBLIC weather roads shimbirfatuma WORKS road  Iresuki-elgolicha road  Kutayu- shimbirfatuma road Upgrading of  Elele-chachabole roads  Elele-harsanga  Wante –yedo  Elwak –shimbir fatuma road Bush clearing  Wachile- Impassible roads harsanga  Ababosone- west Construction of Elwak No drainage system drainage system Construction of Dadach ulu, bulla wajir, Lack of classrooms EDUCATION ECDE classroom ababosone Piping of water Elwak No piping system and WATER SERVICE within towns water kiosk Drilling of Ababosone, Lack of water boreholes iressuki,,tuli,dadach ulu Construction of iressuki,ababosone,tuli, No storage tank underground water wachile, tank qalanqalesa,weledo Construction of Yedo,Charifuda, weledo, No harvesting of rain dam water Construction of shimbirfatuma, elwak , Lack of elevated tank elevated tank Desalination of Elwak, elqala , elgolicha Hard water weels water Tree plantation Elwak town Lack of trees cover Fencing of Elele, Lack of fencing boreholes Recruiting of Wargadud, Lack of technical AGRICULTURE AND technical personnels LIVESTOCK personnel for Agriculture, Livestock and vetenary Provision of pests Across the sub-county Livestock and and pesticide and agricultural diseases mass vaccination of livestock Provision of Across the sub-county Lack of medicines medicine for livestock farmers Construction of Elwak town,Wargadud, Lack of livestock market livestock market Construction of Dadach ulu,elqala, Lack of dispensaries HEALTH SERVICES dispensaries wachile Charifuda, bulla wajir Construction of Elgolicha, Lack of staff quarters staff quarters Additinal staff Qarsadamu, Shortage of staff dawdeer,elgolicha, iresuki Construction of Fincharo No maternity wing maternity wing Contruction of Wargadud, Lack of stalls TRADE AND stalls for traders shimbirfatuma, fincharo, COOPERATIVES Provisions of trade Mandera south sub- Youth and women and cooperative county empowerment grants Provisions of Mandera south sub- Youth and women YOUTH, GENDER grants and aids county empowerment AND SOCIAL Construction of ,shimbir fatuma and Lack of social halls SERVICES social halls elgolicha Construction of Elwak town Lack of stadium stadium Budget for Elwak town lack of empowerments disability Surveying Shimbirfatuma and Lack of survey LANDS wargadud Construction of Elwak , Lack of dumping sites PUBLIC SERVICE dumping sites Dumping vehicles Elwak town Lack of vehicle KUTULO :SUB-SUBCOUNTY New proposed Location/Ward Issues / Challenges Sector Responsible project Drilling of kutulo Lack of access of WATER boreholes quality drinking water Drilling of elram Lack of access of WATER boreholes quality drinking water Completion of Elkuro, Incomplete boreholes WATER borehole drilling and connecting piping system Drilling of Boji Lack of access of WATER boreholes quality drinking water Construction of kutulo Distance in accessing WATER underground water point water tank Desilting of earth kutulo Earth pan covered by WATER pan mud Water tanks majani Lack of piping system WATER piping system Construction Harwale Distance in accessing WATER underground water point water tank Desalination of kutulo Hard water not fit for WATER hard water human consumption Drilling of soft Kutulo Hard water not fit for WATER water boreholes human consumption Construction of Kutulo primary Congestion of ECDE EDUCATION ECDE classroom pupil in kutulo primary ECDE teahers Kutulo subcounty ECDE teachers not EDUCTION enough for the subcounty Polytechnic for kutulo Lack of polytechnic in EDUCTION the sub-county sub-county Laboratory and kutulo Kutulo hospital not HEALTH equipping hospital equipped with the such as x-ray and measuring machines c-scan and laboratory tools Operationalization Harwale Harwale dispensary not HEALTH of dispensaries operationalized Treatment centre kutulo Outbreak of human HEALTH for outbreak disease human diseases KAL-AZAR Vaccination of kutulo Outbreak of Animals LIVESTOCK livestock diseases Fencing of kutulo Grabbing of cemetery LANDS cemetery land Additional truck kutulo Available truck not PUBLIC SERVICE for dumping enough Public toilet kutulo Lack of public toilet PUBLIC SERVICE Toilets for public kutulo Overpopulation of PUBLIC SERVICE schools pupils SUB-COUNTY:MANDERA WEST New proposed Location/Ward Issues / Challenges Sector Responsible project A dam should be Takaba south Water scarcity. Ministry of water, constructed at Environment Sukela Qudi. Desilting of Poor water quality Ayan dam. because of silt. Desilting of kubi dam. Poor water quality. Construction of a Inadequate water borehole at storage because of Didkuro. limited number of boreholes. Desilting of Didkuro Poor water quality. borehole. Desilting of kob adadi dam. Poor water quality. Desilting of Qorile dam. Poor water quality. Desilting and repairing of Poor water quality. Dahan dam. Desilting of Gulana dam. Poor water quality. Desilting of Bolowle dam. Poor water quality. Water piping in Darwed town. Inadequate water supply. Burduras water drilling. Shortage of water. Awacho water drilling. Water shortage. Construction of mega dam for Gither. Water shortage. Construction of water tank for Water shortage. Darwed. Desilting of Eldanaba dam. Poor water quality. Borehole drilling at Eldanaba. Water shortage. Employment of Takaba town. Inadequate cleaning Ministry of public Takaba town staff in Takaba. service, cohesion and cleaners. integration Beefing up security at the Insecurity at the border Wajir border. with Wajir. The subcounty Vehicles for the administrator subcounty administrator should be for easy movement. provided with vehicles. Construction of Dandu town No ECD classrooms in Ministry of Education, ECD classrooms Dandu. sports, gender and social in Dandu. services. Construction of vocational There is no vocational training center in training center in Dandu. Dandu. Increase the county bursary Bursary allocation to allocation to Takaba is little. Takaba subcounty. Fencing of Takaba girls Insecurity because the secondary school is not fenced. school. Fencing of Insecurity because the Takaba boys school is not fenced. secondary school. ECD centers in Takaba ECD center to be are few. built in Takaba town. Construction of ECD classrooms in Darwed. Tarmacking of Takaba The road infrastructure Ministry of Roads and roads in Takaba. in Takaba subcounty is public works. not good. Roads linking the wards should be repaired. Construction of a bridge at Lagsure. The road is impassable during rainy season. Construction of a bridge on Dahan road. Construction of all weather road During rainy season, the for kotkoto. road is impassable. Vaccination of Takaba Poor animal health. Ministry of Agriculture animals. and Livestock. Construction of a There is no veterinary fully equipped hospital in Takaba. veterinary hospital in Takaba town. Supply of animal drugs. Animals are dying because of disease and there are no medicine in the subcounty. Purchase of Farmers do not have caterpillars for caterpillars for farming. farmers. Lighting of Takaba subcounty Lack of street lights Ministry of Energy. Dandu town. may pose insecurity. Solar street lights in Takaba. Surveying of Takaba Takaba town is not Ministry of Land and Takaba town. surveyed. housing Takaba town Takaba town has no physical physical plan. planning. Fencing of the The graves are not grave sight. fenced. Construction of Takaba The disabled people of Ministry of gender, office for the Takaba are facing a lot youth and social disabled in of challenges. services. Takaba town. Funding for the The disabled people do disabled in not get any support. Takaba. Many qualified disabled Qualified people are not disabled people employed. in Takaba should be considered in employment. Health facility is Takaba Health infrastructure in Ministry of health needed at bulla Takaba is overstretched. mpya. A dispensary Lack of a health facility. should be constructed at Afalo. No enough medicine in Takaba hospital. Takaba subcounty hospital should be supplied with adequate drugs. The dispensary needs Eldanaba expansion because of dispensary high number of patients should be seeking medical care upgraded to a here. hospital. The hospital does not Health facilities have mosquito nets, in Takaba bedshits and blankets. subcounty should be supplied with mosquito nets, bedshits, blankets etc A new market Takaba Takaba market is Ministry of Trade and should be small..a big market is Commerce constructed in needed. Takaba town. No trade fund to help Trade fund traders boost their should be made businesses. available to the Takaba business people. Construction of Takaba Poor road infrastructure. Ministry of roads and culverts between public works Dandu and Eldanaba. Bush clearing The road between should be done Dandu and Didkoba is between Dandu closed because of bush and Didkoba growth. SUB-COUNTY:BANISA New proposed Location/Ward Issues / Challenges Sector Responsible project Addition of Lulis location Shortage of water Ministry of water, water tank. Environment and irrigation Sinking of a borehole at Lulis location Drilling of a Arda Garbicha location. Shortage of water. Ministry of water, borehole at Arda Environment and Garbicha irrigation location. Disilting of Arda Garbicha dam. Poor water quality. Water tracking to be increased at Shortage of water. Arda Garbicha. Drilling of a borehole at Derkale location. Derkale location Water tank Water shortage. needed at Tawakal. No water tank. Qondom dam to be done. Banisa No dam. Drilling of a borehole at Banisa. Increased water The boreholes are few. tracking to Banisa. Shortage of water. Solar panels are Banisa Poor electricity Ministry of Energy needed in connection in Banisa Banisa. Power generator is needed at Banisa. Fencing of Banisa. Insecurity at the girls Ministry of Banisa girls school because it's not Education,youth affair, secondary fenced. gender and social school. services ECD teachers be Shortage of ECD increased in teachers. Banisa. County bursary be increased. The allocated bursary figure in Banisa is not Learning enough. materials for ECD be provided Inadequate learning in Banisa. materials for the ECD. Repair of Gira Gira primary needs primary school repairs. in Banisa. ECD classrooms be increased in Few ECD classrooms in Banisa. Banisa. Orphans and the poor members of The orphans and the the society in poor members of the Banisa need society in Banisa need urgent help. urgent help. Youth empowerment through Youth lack provision of empowerment to motor bikes. improve their lives. Play ground for Banisa youth. Inadequate playing ground for the youth. Sponsoring sports tournaments Lack finances to engage the youth through sports Construction of Banisa town Inaccessibility due to Roads roads in Banisa lack of road. town. Roads linking Banisa subcounty wards to be improved. Muraming of marile road. The road is in poor condition. Fully equipped Banisa Access to animal drugs Ministry of Agriculture animal health is poor and Livestock facility with a veterinary officer is needed in Banisa town. Small scale farmers in Banisa be given grants and Banisa Farmers do not have incentives. capital to do farming Farmers at Arda Garbicha need farming tools. Arda Garbicha Farmers do not have enough tools for Irrigation scheme farming. for Arda Garbicha. Arda Garbicha Irrigation is needed Animal food be provided Banisa Inadequate animal feeds because of prolonged drought Banisa town Banisa town The town lacks proper Ministry of Land and needs physical physical planning. housing planning. Banisa needs fire Lack or inadequate fighter vehicles number of fire fighter vehicles. More people Banisa town. Inadequate number of Ministry of public should be street cleaners in service, cohesion and employed as Banisa. integration Banisa town cleaners. Vehicles for Banisa town. Vehicles for transporting trash transporting trash are needed. not enough. Ward office for Derkale needs Derkale ward. Derkale ward office renovation. needs renovation. Banisa subcounty headquarters Banisa town No.of security personnel needs security and surbodinate staff at and surbodinate Banisa subcounty is staff. inadequate Drugs supply of Banisa town. Indequate drugs supply. Ministry of health Banisa subcounty hospital. Maternity wing, Inadequate theatre and theatre and x-ray x-ray services. services needed at Banisa subcounty hospital. A dispensary at Lulis is needed. Lulis location. There is no health facility at Lulis location. A dispensary is needed at There is no health charicha. facility at Chiricha. Chiricha. A dispensary is There is no health needed at marile. facility at marile. Marile. Relocation of Banisa slaughter Public health concerns house to the as a result of the outskirt of town. slaughter house in Banisa town center. Sewage exhauster vehicle is needed in Banisa town. No emptying of toilets by exhausters. Banisa hospital needs a medical officer. There is no single medical doctor in Banisa subcounty. Grants for small Banisa town Lack of capital for small Ministry of Trade and scale businesses. scale businesses to grow Commerce. their businesses. Expansion of Banisa market. Banisa market is congested..it needs expansion. SUB-COUNTY:MANDERA EAST New proposed Location/Ward Issues / Challenges Sector Responsible project County to countywide County to provide countywide provide solution solution on education on education crisis due to lack of crisis due to lack teachers of teachers Water supply Kamor Golja Water supply system; Kamor Golja system; Construction of earth Construction of pan earth pan Installation of New Township Along Installation of streetlight New Township Along streetlight the border( Bulla Township the border( Bulla Shabar, Township Shabar, Lighting Lighting District, South District, South C border, C border, custom area, custom area, Widening of Khalalio Narrow road Roads road ; Construction of Khalalio- Mandera road Construction of Mandera town Inaccessibility due to Roads access road lack of road Malka Punda- Boys Grading and Mandera town Muddy and dusty roads Roads gravelling of roads on both side Muzdalifa in Mandera town Water piping Mandera town Lack of piping system Water system in some areas of mandera town Food distribution neboi Lack of food for Special Programme vulnerables Construction of Bulla Barwaqo Lack of maternity Health maternity wing Upgrading of Khalalio Poor water supply Water water supply system system Construction of Bella Rhamu town depend Water water tank entirely on old water tank SUB-COUNTY:MANDERA NORTH New proposed Location/Ward Issues / Challenges Sector Responsible project Upgrading of Rhamu Town Inaccessibility to Health services Rhamu Refferal required medical Hospital to level 4 services such as specialized treatments Construction of Rhamu No provision of health Health Dispensary for Bula services at these Dodai, Shangala, villages Hawara,Kubi And Isak-Kura Renovation of old Rhamu Lack of enough water Water water piping system due to constant for Rhamu Town breakdown of old Piping system. Construction of Rhamu Lack of enough water Water more elevated tanks in the town to Water Tanks for serve the larger Rhamu Town population New water piping Rhamu No water piping Water system for Bulla system for bulla Dodai Dodai Drilling of Borehole Rhamu Lack of enough water Water for Bulla Darusalam at Darusalam Rehabilitation of Countywide Inaccessibility due to Roads feeder roads to poor road networks other sub-counties Bush clearing of 12 Rhamu Inaccessibility due to Roads Roads/Pathways to lack of Road/Pathways shantoley farms New water piping Rhamu-dimtu No water piping Water system for Garsey system for Garsey town town from the borehole to the town Drilling of Borehole Rhamu-dimtu Lack of enough and Water for; Clean water for these a)Dagmarer villages since they b)Yabicho depend on river c) Kalicha d)Usubey Construction of Rhamu-dimtu No provision of health Health Dispensary for; services a) Garsey b) Dagmarer c)Orahay Operationalization Rhamu-dimtu No provision of health Health of Usubey services Dispensary Murraming of Mado Rhamu-dimtu Inaccessibility due to Roads – Olla Road poor road networks Murraming of Rhamu-dimtu Inaccessibility due to Roads Rhamu Dimtu - poor road networks Olla Road Construction of Rhamu-dimtu Lack enough ECDE Education ECDE classes for Classes the following schools; a)Burjohn primary b)Usubey primary c)Khalicha primary d)Harari primary Construction of Rhamu-dimtu Inaccessibility due to Roads road from Garsey poor road networks Town to the River Dawa. Drilling of a Ashabito Lack of enough water Water Borehole for Bambo supply at Bambo West West Installing water Ashabito No water piping Water piping system from system for Ashabito. Borehole to Ashabito Town Construction of Ashabito No provision of health Health Dispensary for services Bambo West Operationalization Ashabito No provision of health Health of Ogarwein services dispensary Provision of an Ashabito Ashabito Health Centre Health Ambulance for serves larger Ashabito Health population hence needs Centre an Ambulance for faster and safer provision of Health services to the citizens. Murraming of Ashabito Inaccessibility due to Roads Ashabito - poor road networks Ogarwein Road Murraming of Ashabito Inaccessibility due to Roads Ashabito - Bambo poor road networks Road Drilling of Borehole Marothile Lack of provision of Water for Mubarak Village Water supply in Mubarak Village Drilling of fresh Marothile No provision of fresh Water water Borehole for Water supply in Marothile Town Marothile Town Water piping Marothile Lack piping system in Water system from Kubi Town Borehole to Kubi Town Construction of Marothile Lack of provision of Health Dispensary for medical services Mubarak village Operationalization Marothile No provision of health Health of Kubi dispensary services at Kubi Location Construction of Marothile Inaccessibility due to Roads Marothile-Ashabito poor road networks Road Bush clearing of Marothile Inaccessibility due to Roads Kubi-Mubarak lack of road Road Construction of Marothile Lack of ECDE classes Education ECDE classes for Mubarak Village Water piping Guticha No water piping Water system from system at Olla town Borehole to Olla right now since the Town previous one was vandalized by floods. The borehole is about 5Km from the Town. Drilling of a Guticha Lack of provision of Water Borehole for; Water supply in Saqira, a)Saqira jikow and Kobandaqa b) Jikow Villages c)Kobandaqa Construction of Guticha No provision of health Health Dispensary for services in Sarman and Sarman and Barwaqo Locations Barwaqo Locations Murraming of Olla- Guticha Inaccessibility due to Roads Guticha-Ashabito poor road networks Road Maintaining of Guticha Inaccessibility due to Roads Rhamu – Guba road poor road networks Construction of Guticha Lack of enough ECDE Education ECDE Classes for Classes the following Villages; a) Korma Adow b) Dagahtur c) Daidai Recruitment of County Wide Lack of enough Education ECDE Teachers teachers in our schools SUB-COUNTY:LAFEY New proposed Location/Ward Issues / Challenges Sector Responsible project Bush clearing from Sala Inaccessibility due to Roads Sala Town to River lack of Roads or Dawa Pathways to the River Construction of Sala No cattle dip or Cattle Livestock Cattle dip and crush Crush in Sala Town for Sala Town Installation of solar Sala The Generator of the Water Panel system in Borehole consumes a Sala Borehole lot of fuel thus highly in need of alternative power supply i.e solar panel system Restocking for County wide Due to severe drought, Livestock Vulnerable vulnerable and households Affected households should assisted Construction of Sala No staff quarter in Sala Health Staff quarters for Dispensary Sala Dispensary Desilting of Warangara Due to silting during Water Warangara Dam flood reasons, the Volume of the Dam really decreased. Constant Water County wide Lack of enough water Water trucking during in many settlements in drought season the County especially during drought season. Construction of Lafey Inaccessibility due to Roads Fino – Lafey Road poor road networks Drilling of a Alungu Lack of enough water Water Borehole at Alungu supply at Alungu Food distribution County wide Food should be Special programme distributed amongst Vulnerable members of the society during drought season. Construction of Libehia Lack of enough ECDE Education ECDE Classes for Classes at libehia Libehia