COUNTY GOVERNMENT OF NAKURU COUNTY TREASURY COUNTY FISCAL STRATEGY PAPER 2021 “Resilient and Sustainable Economic Recovery” FEBRUARY 2021 © County Fiscal Strategy Paper (CFSP) 2021 To obtain copies of the document, please contact: The County Executive Committee Member, Department of Finance and Economic Planning. Governor Building (New Town Hall) P. O. Box 2870 - 00100 NAKURU, KENYA CFSP 2021 will be published on website at: nakuru.go.ke within 7 days after adoption by the County Executive. Nakuru County Fiscal Strategy Paper 2021 2 | P a g e TABLE OF CONTENTS List Of Tables And Figures ............................................................................................. 4 List Of Abbreviations And Acronyms ........................................................................... 5 Foreword ........................................................................................................................ 9 Acknowledgement ..................................................................................................... 11 Legal Basis For The Publication Of The County Fiscal Strategy Paper ................... 12 Responsibility Principles In The Public Financial Management Law....................... 13 I. Recent Economic Developments And Medium-Term Outlook........................... 14 II. Policies To Achieve Medium Term Outlook .......................................................... 33 III. Intergovernmental Fiscal Relations And Division Of Revenue ........................... 56 IV. 2021/2022 Budget Framework And The Medium Term ...................................... 66 V. Conclusion And Next Step................................................................................... 101 Annexures .................................................................................................................. 102 Annex I: County Government Of Nakuru Operations FY 2021/2022 - 2023/2024 ............................................................................................................................... 102 Annex II: Trend In Growth Of Equitable Share Of Revenue ............................. 105 Annex III: Total Expenditure Sector Ceilings For The Period 2021/2022 - 2023/24 ............................................................................................................................... 106 Annex IV: Total Recurrent Expenditure Ceilings For The Period 2021/2022 - 2023/2024 ............................................................................................................. 110 Annex V: Total Development Expenditure Ceilings For The Period 2021/2022 - 2023/2024 ............................................................................................................. 112 Annex VI: Adherence To Fiscal Responsibility Principles .................................. 114 Annex VII: Statement Of Specific Fiscal Risks .................................................... 117 Annex VIII: Sector Composition And Sector Working Groups For MTEF Budget 2021/2022-2023/2024 ........................................................................................... 118 Annex IX: CFSP 2021 Public Hearings Highlights ................................................ 119 Annex X: Nakuru County Budget Calendar For The FY 2022/2023 ................ 127 Nakuru County Fiscal Strategy Paper 2021 3 | P a g e LIST OF TABLES AND FIGURES Table 1: First Half Revenue Report 2020/2021........................................................... 21 Table 2: Own Source Revenue Performance by Sector Classification July- December 2020. ......................................................................................................... 23 Table 3: Own Source Revenue Performance by Monthly Classification July- December 2020. ......................................................................................................... 24 Table 4: Own Source Revenue Performance by Geographical Classification July- December 2020. ......................................................................................................... 25 Table 5: Own Source Revenue Performance by Revenue Stream Classification July- December 2020. ................................................................................................. 26 Table 6: Expenditure Performance by Economic Classification- July December 2020. ............................................................................................................................. 27 Table 7: Recurrent Expenditure Performance, July- December 2020. .................. 28 Table 8: Development Expenditure Performance, July- December 2020. ........... 29 Table 9: Parameter for Revenue Allocation ............................................................. 60 Table 10: Allocation of funds to County Governments ........................................... 62 Table 11: Summary of Budget Allocations ................................................................ 71 Table 12: Medium Term Sector Ceilings 2021/22 - 2023/24 ..................................... 75 Figure 1: Trends in Kenya’s Economic Growth Rates, Percent ............................... 16 Figure 2: Sector Real GDP Growth Rates, Percent .................................................. 16 Figure 3: Year-on-Year Inflation Rate ........................................................................ 18 Figure 4: Kenya Shilling Exchange Rate .................................................................... 19 Figure 5: Short Term Interest Rate, Percent ............................................................... 19 Figure 6 Percent of Total Receipt July- Dec 2020 .................................................... 22 Figure 7: Trends in Own Source Revenue Collection FY 2019/2020 vs FY 2020/2021. .................................................................................................................... 24 Nakuru County Fiscal Strategy Paper 2021 4 | P a g e LIST OF ABBREVIATIONS AND ACRONYMS ACPA Annual Capacity Performance Assessment ADP Annual Development Plan AGPO Access to Government Procurement Opportunities AMS Agricultural Mechanism Services ANC Anti Natal Care ASALs Arid and Semi-Arid Lands ASDSP Agricultural Sector Development Support Programme ATC Agricultural Training Centre BBI Building Bridges Initiative BPS Budget Policy Statement CAB Constitution Amendment Bill CARA County Allocation on Revenue Act CBA Collective Bargaining Agreement CBK Central Bank of Kenya CBR Central Bank Rate CBROP County Budget Review Outlook Paper CEKEB Central Kenya Economic Block CFSP County Fiscal Strategy Paper CGA County Government Act CIDP County Integrated Development Plan CIMES County Integrated Monitoring & Evaluation System CoB Controller of Budget CoK Constitution of Kenya Covid-19 Corona Virus Disease CRA Commission on Revenue Allocation CRA County Revenue Allocation DANIDA Danish International Development Authority DORA Division on Revenue Act Nakuru County Fiscal Strategy Paper 2021 5 | P a g e DTI Dairy Technical Institute ECDE Early Childhood Development Education FY Financial Year FIF Facility Improvement Fund GDC Geothermal Development Corporation GDP Gross Domestic Product HE His Excellency HIV/AIDS/TB Human Immuno Virus/Acquired Immunodefiency Syndrome/ Tuberculosis HR Human Resource IBEC Intergovernmental Budget and Economic Council ICT Information Communication Technology ICU Intensive Care Unit IDePs Urban Integrated Development Plans IEC Institute of Economic Affairs IFAD International Fund for Agriculture Development IFMIS Integrated Financial Management Information System IHRIS Integrated Human Resource Information System ILO International Labour Organization KARLO Kenya Agricultural Research Organization KDSP Kenya Devolution Support Programme KIPPRA Kenya Institute of Public Policy Research Analysis KRAs Key Result Areas KSG Kenya School of Government KUSP Kenya Urban Support Programme LAN Local Area Networks LIMS Lands Information Management System MT Metric Tonne MTEF Medium Term Expenditure Framework Nakuru County Fiscal Strategy Paper 2021 6 | P a g e MTR Mid Term Review NACOSSTIP Nakuru County Sanitation Strategic and Investment Plan NARIG-P National Agricultural and Rural Inclusive Growth Project NCBEF Nakuru County Budget Economic Forum NHIF National Hospital Insurance Fund NICO Nakuru International Conference NMT Non Motorist Traffic NT The National Treasury OAG Office of Attorney General OSR Own Source Revenue PFM Public Finance Management PGH Provincial General Hospital PMTCT Prevention of Mother to Child Transmission PPRA Public Procurement Regulatory Authority PSV Public Service Vehicle PWDs People with Disabilities REC Regional Economic Block RMLF Rural Maintenance Levy Fee SCDP Smallholder Dairy Commercialization Programme SEZ Special Economic Zone SGR Standard Gauge Railways SHEP Smallholder Horticulture Empowerment and Promotion SIDA Sweden International Development Agency SMEs Small and Medium Enterprises SRC Salaries Remuneration Commission THS Transforming Heath Systems TVETA Technical & Vocational Education Training Authority UHC Universal Health Coverage ULTS Urban Led Total Sanitation Nakuru County Fiscal Strategy Paper 2021 7 | P a g e USD US Dollar WANs Wide Area Networks WASH Water and Sanitation Hygiene WiFi Wireless Fidelity Nakuru County Fiscal Strategy Paper 2021 8 | P a g e FOREWORD The County Fiscal Strategy Paper (CFSP 2021) is prepared pursuant to Section PFM Act 2012 and the PFM (County Government) Regulations 2015. CFSP 2021 has been prepared against a background of a contracting global economy occasioned by the outbreak and the rapid spread of the COVID-19 Pandemic. The Kenyan economy suffered major shocks from the adverse effect of COVID- 19 Pandemic in the year 2020. The containment measures to reduce the spreads of COVID-19 disease as well as the significant interruption of the global supply chain led to loss of livelihoods and collapse of business activities. Owing to this phenomenon, the national economy shrank significantly by 5.7 percent in the second quarter of 2020 compared to 4.9 percent growth in the first Quarter of 2020. The County has also been adversely affected by the pandemic and major sectors affected include; hospitality, transport, tourism, education and horticulture. Due the pandemic the County experienced a decline in actual own source revenue generated to Kshs. 2.44 billion in FY2019/20 compared to Kshs 2.8 billion generated in fiscal year 2018/19 depicting a decline by 14.75 percent. The County Government’s broad fiscal policy has been aligned to the national development agenda espoused in the BPS 2021. The policies have been outlined as: Promotion of accessible and affordable healthcare for all County residents toward the realisation of UHC; Promotion of agri-business and achieving food nutrition & security; Expansion and operationalization of County social and physical Infrastructure, creating an enabling conducive business environment for growth and Enhancing governance, transparency, accountability and human resource productivity in the delivery of public good and service. In the FY 2021/2022 budget estimates the total targeted revenue will amount to Kshs 17.453 billion including CRA equitable share, which is an increase by 20 percent from the approved CARA 2020. Equitable share will amount to Kshs 12.256 Nakuru County Fiscal Strategy Paper 2021 9 | P a g e billion, Conditional grants Kshs.1.742 billion and Facility Improvement Funds (FIF) is projected to remain at Kshs 1.4 billion. Overall expenditure and net external funding for FY 2021/2022 are projected at Kshs 17.453 billion. These expenditures comprise among others, recurrent of Kshs 11.519 billion (66 percent of total expenditure) and development of Kshs 5.934 billion including 45% of Ward Allocation based on the Nakuru County Revenue Administration Act, 2018. The ceiling for development expenditures (inclusive of conditional grants to County Governments) amount to Kshs. 5.934 billion in the FY 2021/2022 from Kshs. 4.350 billion in CFSP 2020 depicting a growth of 36 percent. Most of the outlays are expected to support critical infrastructure and Post COVID 19 recovery. The proposed allocation to the 55 wards in FY 2021/2022 has been set at Kshs 1.6 billion which translates to 46.5 percent of the equitable development expenditure. In arriving at the fiscal framework in the MTEF period 2021/2022 -2023/2024 the County Treasury has been guided by the need to achieve an equitable level of development across the County and maximizing utility in County Government spending and realistic fiscal forecasting. Moving forward, the County Treasury will work closely with other development partners and the private sector through the Resource Mobilization unit. Dr. Peter Ketyenya CEC Member – Finance and Economic Planning NAKURU COUNTY Nakuru County Fiscal Strategy Paper 2021 10 | P a g e ACKNOWLEDGEMENT The CFSP 2021 is prepared in line with the Public Finance Management Act, 2012. It gives a highlight on the macro-fiscal outlook over the medium term and specifies the set strategic priorities and policy goals together that will be undertaken by the County government. It also outlines the spending plans for the FY 2021/2022 and the medium term and provide the indicative ceilings as outlined in the priorities highlighted during the public hearings and sector reports. The preparation of the 2021 Fiscal strategy paper was an inclusive process. Much of the information in this report was obtained from the line departments through the Sector Working Groups (SWGs). We are grateful for comments from the County Treasury Macro Working group, the sector working groups, the County Budget and Economic Forum (CBEF) and other stakeholder inputs. May I take this opportunity to sincerely thank the general public and all interested groups who participated in the public participation meetings held in January 2021 toward the finalisation of the CFSP 2021. Your valuable contributions helped to shape the County Fiscal framework. The coordination and harmonization process was made possible by a core team from the County Treasury which spent a significant amount of time putting together the report. We are especially grateful to the County Executive Member for Finance and Economic Planning for his guidance and stewardship in achieving this planning and budget document. Special thanks go to the staff in the Economic Planning Directorate led by Ag. Director Mr. Cyrus M. Kahiga, Ag. Head of Budget Ashinah Wanga, Snr Economists Ms Dorcas Mwangi, Emma Angwenyi, Sam Mwawasi, Dennis Rono, Dennis Onchomba and the entire Secretariat who demonstrated commitment in the preparation, editing and timely finalization of the CFSP 2021. Hussein Mohammed Chief Officer – Economic Planning NAKURU COUNTY Nakuru County Fiscal Strategy Paper 2021 11 | P a g e Legal Basis for the Publication of the County Fiscal Strategy Paper The County fiscal strategy paper is prepared in accordance with Section 117 of the Public Financial Management Act, 2012. The law states that: (1) The County, Treasury shall prepare and submit to the County Executive Committee the County Fiscal Strategy Paper for approval and the County Treasury shall submit the approved Fiscal Strategy Paper to the county assembly, by the 28th February of each year. (2) The County Treasury shall align its County Fiscal Strategy Paper with the national objectives in the Budget Policy Statement. (3) In preparing the County Fiscal Strategy Paper. The County Treasury shall specify the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term. (4) The County Treasury shall include in its County Fiscal Strategy Paper the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term. (5) In preparing the County Fiscal Strategy Paper, the County Treasury shall seek and take into account the views of (a) The Commission on Revenue Allocation; (b) The public; (c) Any interested persons or groups; and (d) Any other forum that is established by legislation. (6) Not later than fourteen days after submitting the County Fiscal Strategy Paper to the county assembly, the county assembly shall consider and may adopt it with or without amendments. Nakuru County Fiscal Strategy Paper 2021 12 | P a g e Responsibility Principles in the Public Financial Management Law In line with the Constitution, the new Public Financial Management (PFM) Act, 2012, sets out the fiscal responsibility principles to ensure prudency and transparency in the management of public resources. The PFM law (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 Nakuru County Fiscal Strategy Paper 2021 13 | P a g e I. RECENT ECONOMIC DEVELOPMENTS AND MEDIUM-TERM OUTLOOK 1.1 Overview In the year 2020, The Kenyan economy suffered a major setback from the ongoing adverse effect of COVID-19 Pandemic. The disruptive containment measures for Covid-19 and the significant interruption of the global supply chain led to loss of livelihoods and collapse of business activities. Due to these impediments’ the national economy contracted by 5.7 percent in the second quarter of 2020 compared to 4.9 percent growth in the first Quarter of 2020. Generally, the national economy is expected to grow marginally by 0.6 percent in 2020. Going forward the national Budget Policy Statement (BPS 2021) has projected the national economy to recover and expand by 6.4 percent in 2021 buoyed by the relative macroeconomic stability. Interest rates remains relatively low, the foreign currency has demonstrated resilience while the inflation rate (at 5.6 percent in December 2020) is within the government target of 5+/-2.5 percent reinforced by stability in prices of food commodities and oil products. 1.2 Recent Economic Developments and Outlook Global and Regional Economic Developments The ongoing adverse effects of COVID-19 have impacted heavily on the global economy leading to both exogenous and endogenous shock on the regional and local economy. As a result, the global economy shrank by 4.4 percent in 2020 compared to 2.8 percent in 2019. Advanced economies are expected to contract by 5.8 percent in 2020 from a growth of 1.7 percent in 2019. Kenya is positioning itself to benefit from the Brexit regime in the United Kingdom although the UK and eurozone area are expected to shrink by 8 to 9 percent in 2020. Emerging economies and developing countries are expected contract by 3.3 percent in 2020. Nakuru County Fiscal Strategy Paper 2021 14 | P a g e Regionally the sub-Saharan Africa economies is projected to decline by about 3.0 percent from a growth of 3.2 percent in 2019. Economies dependant on external markets like export-oriented sectors and tourism have especially been hit by shocks of Covid-19. The East African regional economies is further expected to rise marginally approximately 1.0 percent buoyed by the strong resilience and positive improvements in Kenya, Tanzania and Rwanda. Kenya’s Economic Updates and Macro-Economic Indicators The Kenyan economy suffered a major shock from the adverse effect of Covid- 19 Pandemic in the year 2020. The containment measures to reduce the spreads fCovid-19 disease as well as the significant interruption of the global supply chain led to loss of livelihoods and collapse of business activities. Owing to the above specified phenomenon, the national economy shrank significantly by 5.7 percent in the second quarter of 2020 compared to 4.9 percent growth in the first Quarter of 2020. Generally, the national economy is estimated to grow marginally by 0.6 percent in 2020. The national economy grew by 4.9 percent in the first Quarter of 2020 compared to a growth of 5.5 percent in similar period in 2019. Measures aimed at containing the spread of Covid-19 contributed to the shrinking of the economy by 5.7 percent in the second Quarter. It is projected that the national economy will recover and expand by 6.4 percent in 2021 (see Figure 1). Nakuru County Fiscal Strategy Paper 2021 15 | P a g e Figure 1: Trends in Kenya’s Economic Growth Rates, Percent Source: Kenya National Bureau of Statistics Figure 2: Sector Real GDP Growth Rates, Percent Source: Kenya National Bureau of Statistics Nakuru County Fiscal Strategy Paper 2021 16 | P a g e Locally the County economy has been particularly hit hard by the Covid-19 pandemic and its containment. This is majorly due to dependence on the export market as well as tourism and hospitality which have remained extremely vulnerable as result of national and global lockdowns and travel bans. Despite the pandemic related challenges, the agriculture sector showed significant progress with an average national growth of 6.4 percent in the second Quarter of 2020 on account of favourable weather condition in the period under review. Most service sectors experience negative growth with an average growth national of minus 11 percent in in the second Quarter of 2020 mainly due to significant contraction of accommodation and food services (83.3percent) and education sectors (- 56.2 percent). Inflation Rate The average annual inflation remained stable and within medium term target range of 5+/-2.5 indication stability in the overall Central Bank monetary policy. The low inflation rates was further boosted by stability in prices of food commodities resulting from steady agricultural production as well as the low fuel costs arising decline in global demand for crude oil during lockdown periods. Figure 1 below shows the overall annual inflation from December 2019 to December 2020. The stable inflationary costs impacted positively to the local county economy, food prices and non- food commodity prices remained very stable, despite the significant loss of livelihood and contraction of major drivers of the local economy. Nakuru County Fiscal Strategy Paper 2021 17 | P a g e Figure 3: Year-on-Year Inflation Rate Source: Kenya National Bureau of Statistics. Kenya Shilling Exchange Rate and Money Supply The national and County economies remains sensitive to the variability in the foreign exchange market due to strong reliance on the export and import business. The uncertainty surrounding the COVID-19 pandemic and resultant disruptions to the global supply chain led to appreciable strengthening of the US Dollar (USD) in the global market. Due to these external factors therefore, the Kenya shilling marginally lost its value against the USD to trade at Ksh 110.6 in December 2020 compared to 101.5 in December 2019. A strong USD may favour proceeds from the export-oriented horticulture sector in the County but may further expose the same to strong lower demands due to its competitiveness. strengthening USD is further likely to negatively impact on the national/county fiscal framework due to dollar denominated foreign debts. Nakuru County Fiscal Strategy Paper 2021 18 | P a g e Figure 4: Kenya Shilling Exchange Rate Source: Central Bank of Kenya Interest Rates The Central bank of Kenya has retained its CBR rates low (at maximum of 7 percent in November 2020) to further promote the access to loans capital by borrowers. Access to affordable credit will come in handy to support the social economic recovery strategy from the adverse effects of Covid-19. Figure 5: Short Term Interest Rate, Percent Source: Central Bank of Kenya Nakuru County Fiscal Strategy Paper 2021 19 | P a g e Balance of Payment The overall national balance of payments demonstrated marginal improvements at 1.2 percent of the GDP in September 2020 from 1.1 percent of the GDP in September 2019 arising from improvements in merchandise account balance. Nakuru county economy continues to contribute to a positive balance of payment through its export-oriented sectors in manufacturing and horticulture industries. Fiscal Performance The County Budget implementation for FY 2020/2021 was affected by the late approval of the County Budget estimates. Additionally, further pressure was exerted by an amount of Ksh 5.6 billion balance carried forward from FY 2019/2020 as well as significant revenue shortfall from revenues in the fourth quarter of FY 2019/2020 on account of containment measures for COVID-19 Pandemic. Delays in the determination of the horizontal allocation of revenues due stalemate at the Senate also affected the fiscal forecast underpinning the MTEF Budget framework 2020/2021-2022/2023. The government containment measures and cashflow constraints in the first quarter of FY 2020/2021 also affected the general performance of the budget FY 2020/2021. The County Government embarked on re-orienting its fiscal framework to towards a post COVID-19 recovery strategy and towards a positive growth trajectory of the County economy. Revenue Performance During the period July-December 2020, the County revenue performance recorded below per performance in transfers from national Government but improvements in the collection of Own Source Revenues (OSR). Equitable share Nakuru County Fiscal Strategy Paper 2021 20 | P a g e of revenues amounted to Ksh 1.7 billion in the first half of FY 2020/2021 against an annual target of Ksh. 10.4 billion compared to Ksh 3.8 billion received in similar period in FY 2019/2020. County Own Source Revenues for the period July- December 2020 amounted to Ksh 1.1 billion against an annual target of Ksh 3.2 billion. With a growth of 98 percent this compares well with the performance for similar period in FY 2019/2020. In the period under review The County Government has received Ksh 212 million as part of forecasted Proceeds from Domestic and Foreign Grants (conditional grants) against an annual target of 1.o billion. Further during the period under review Ksh 900 million was transferred from Other Government Entities as part of undisbursed projected equitable share of revenue in FY 2019/2020. However, an amount of Ksh 5.6 billion an opening balance carried forward from previous FY help to kickstart budget operations. Table 1: First Half Revenue Report 2020/2021. Source FIRST SECOND SUB TOTAL COMPARITIVE ANNUAL GROWTH QUARTER QUARTER HALF YEAR PERIOD FY TARGET (July-Sept (Oct-Dec (2020/2021) (2019/2021) 2020) 2020) Exchequer 1,728,564,750 1,728,564,750 3,878,121,971 10,476,150,000 -55% Releases/ Equitable Share Proceeds from 212,535,514 212,535,514 922,737,822 1,096,913,839 -77% Domestic and Foreign Grants (Conditional Grant) Transfers From 900,948,900 900,948,900 499,702,648 900,948,900 80% Other Government Entities County own 588,498,843 565,793,316 1,154,292,159 582,253,338 3,200,000,000 98% Generated Receipts Total Receipts 1,489,447,743 2,506,893,580 3,996,341,323 5,882,815,779 -32% Source: Quarterly Financial Statements 2020-2021 Nakuru County Fiscal Strategy Paper 2021 21 | P a g e Figure 6 below shows the proportion of each revenue stream as a percentage of total County receipt for the period July– December 2020. Equitable share accounted for highest transfers (43 percent) while transfers for grants accounted for the lowest proportion (5 percent). Figure 6: Percent of Total Receipt July- Dec 2020 Percent of Total Receipt July- Dec 2020 Exchequer Releases/ Equitable Share Proceeds from Domestic and Foreign Grants Transfers From Other Government Entities County own Generated Receipts Total Receipts Source: Quarterly Financial Statements 2020-2021 Table 2 shows the disaggregation of County OSR for the period July- December 2020. The County mobilised an amount of Ksh 1.1 billion against a target an annual Ksh 3.2 billion. Local revenue accounted for 45.9 percent of the total collections. Further revenue streams from Lands, Physical Planning &Housing continued to provide the highest proportion total collections at 26 percent. During the period July-December 2020, Facility Improvement Fund (FIF) collected amounted to Ksh 624 million compared to Ksh 563 Million in similar period in FY 2019/2020 reflecting a growth of 11 percent. This growth further demonstrates the improved efficiency in the collections. The FIF collection accounted for more than half the total County OSR for the period under review. This progress is expected to Nakuru County Fiscal Strategy Paper 2021 22 | P a g e further improve the service delivery within the County Level-4 and Level-5 health facilities. Table 2: Own Source Revenue Performance by Sector Classification July- December 2020. Revenue Source/ Department JULY- DEC JULY- DEC ANNUAL GROWTH ACHIEVEMENT PERCENT 2019 2020 (IN KSH) TARGET FY PERCENT RATE OF TOTAL 2020.2021 REVENUES Education, Culture &Youth 841,800 111,400 5,400,000 -87% 2% 0.0% Public Service Training and 492,760 200,100 1,570,000 -59% 13% 0.0% Devolution Finance & Economic Planning 337,569 587,516 0 74% 100% 0.1% Agriculture, Livestock & Fisheries 20,619,356 14,897,625 82,524,000 -28% 18% 2.8% Health & Medical Services 27,078,613 21,070,336 100,350,000 -22% 21% 4.0% Trade &Tourism 94,501,772 100,794,836 502,070,000 7% 20% 19.0% Environment, Water & Natural 111,821,977 123,692,489 208,080,054 11% 59% 23.4% Resources Roads, Public Works & Transport 147,914,993 130,602,576 362,559,446 -12% 36% 24.7% Lands, Physical Planning &Housing 139,101,140 137,388,283 537,446,500 -1% 26% 26.0% SUB TOTAL (Local Sources) 542,709,980 529,345,161 1,800,000,000 -2% 29% 100.0% Local Sources 542,709,980 529,345,161 1,800,000,000 -2% 29% 45.9% Facility Improvement Fund 563,310,989 624,946,998 1,400,000,000 11% 45% 54.1% TOTALS 1,106,020,969 1,154,292,159 3,200,000,000 4% 36% 100.0% Source: Quarterly Financial Statements 2020-2021 Local sources performed the highest in July and September 2020 mainly on account of waiver of penalties in the payment of land rates In the period under review collections from local sources marginally declined by two percent despite the challenges brought about by COVID-19 Pandemic. Collections for FIF were highest in the month of November 2020 with a total amount of Ksh. 137 million. Nakuru County Fiscal Strategy Paper 2021 23 | P a g e Table 3: Own Source Revenue Performance by Monthly Classification July- December 2020. MON TH LOCAL REVENUE FACILITY IMPRO VEMENT FUND FY 2019/2020 FY 2020/2021 GROWTH FY 2019/2021 FY 2021/2022 GROWTH PERCENT PERCENT July 119,282,973.00 100,080,678.00 -16% 68,482,032.40 94,228,364.15 38% August 89,618,340.00 93,157,517.00 4% 88,037,162.00 83,502,484.12 -5% September 83,705,529.00 100,988,614.00 21% 100,562,431.00 116,541,186.00 16% October 90,274,668.00 90,820,629.00 1% 90,122,730.00 113,939,734.00 26% November 84,482,703.00 70,051,961.00 -17% 99,650,455.00 137,853,611.00 38% December 75,345,767.00 74,245,762.00 -1% 116,456,179.00 78,881,619.00 -32% Totals 542,709,980.00 529,345,161.00 -2% 563,310,989.40 624,946,998.27 11% Source: Quarterly Financial Statements 2020-2021. The trends shown in Figure 7 above reveals general but marginal decline in the County OSR between the period July- December for FY 2019/2020 and FY 2020/2021. Figure 7: Trends in Own Source Revenue Collection FY 2019/2020 vs FY 2020/2021. OWN SOURCE REVENUE MONTHLY TREND FY 2019/20 & 2020/21 140,000,000.00 120,000,000.00 100,000,000.00 80,000,000.00 60,000,000.00 40,000,000.00 20,000,000.00 - JUL AUG SEP OCT NOV DEC OSR (FY 2019/2020) 119,723,553.00 89,841,229.00 83,902,456.00 90,294,928.00 84,518,403.00 75,321,067.00 OSR (FY 2020/2021) 100,080,678.00 93,157,517.00 100,988,614.00 90,820,629.00 70,051,961.00 74,245,762.00 Source: County Treasury Nakuru FY 2020-2021. Nakuru County Fiscal Strategy Paper 2021 24 | P a g e Ksh. During the period July-December 2020, Nakuru East Sub County accounted for the highest contribution (32 percent) to the total local revenues despite recording a lower achievement rate (25 percent) as a percentage of forecasted annual target. On the other hand, Kuresoi South, Kuresoi North and Subukia contributes to one percent each respectively. Further during the period under review Rongai Sub County had the highest achievement rate of 41.5 percent based on the projected annual target. Table 4: Own Source Revenue Performance by Geographical Classification July- December 2020. SUB SUB-COUNTY HALF-YEAR FY ANNUAL TARGET VARIANCE ACHIEVEMENT PERCENT OF COUNTY 2020/21 FY 2020/2021 RATE TOTAL CODE COLLECTION 45600100 MOLO 20,702,823.00 59,812,000.00 (39,109,177.00) 34.6% 4% 45600200 NJORO 25,780,576.00 65,235,000.00 (39,454,424.00) 39.5% 5% 45600300 NAIVASHA 141,296,971.00 392,460,000.00 (251,163,029.00) 36.0% 27% 45600400 GILGIL 34,993,773.00 110,959,095.00 (75,965,322.00) 31.5% 7% 45600500 KURESOI SOUTH 6,140,664.00 17,067,000.00 (10,926,336.00) 36.0% 1% 45600600 KURESOI NORTH 4,725,307.00 16,135,000.00 (11,409,693.00) 29.3% 1% 45600700 SUBUKIA 4,834,994.00 5,027,905.00 (10,192,911.00) 32.2% 1% 45600800 RONGAI 29,753,476.00 71,680,500.00 (41,927,024.00) 41.5% 6% 45600800 BAHATI 33,700,131.00 110,966,000.00 (77,265,869.00) 30.4% 6% 45601000 NAKURU WEST 56,458,663.00 256,194,000.00 (199,735,337.00) 22.0% 11% 45601100 NAKURU EAST 170,957,783.00 684,463,500.00 (513,505,717.00) 25.0% 32% SUB TOTAL (Local Source) 529,345,161.00 1,800,000,000.00 1,270,654,839.00) 29.4% 100% FIF 624,946,998.27 1,400,000,000.00 (775,053,001.73) 44.6% GRAND TOTAL 1,154,292,159.27 3,200,000,000.00 (2,045,707,840.73) 36.1% Source: Quarterly Financial Statements 2020-2021. Table 5 represent the disaggregation of County OSR based on selected revenue streams. Royalties, vehicle park fees and property taxes contributed the highest proportion of the County local sources. On the other hand, County Park fees, House Rent and Slaughter house fees recorded the least achievement rates based on the forecasted annual target. Overall, the County OSR has a 36 percent achievement rate based in forecasted revenues FY 2020/2021. Nakuru County Fiscal Strategy Paper 2021 25 | P a g e Table 5: Own Source Revenue Performance by Revenue Stream Classification July- December 2020. REVENUE STREAM HALF-YEAR FY ANNUAL BUDGET VARIANCE ACHIEVEMENT PERCENT OF 2020/21 TARGET FY RATE TOTAL 2020/21 COLLECTION 1 County Park Fees - 750,000.00 (750,000.0) 0.0% 0% 2 Slaughter House Fees 4,351,357.00 25,000,000.00 (20,648,643.0) 17.4% 1% 3 House rent 6,845,610.00 50,000,000.00 (43,154,390.0) 13.7% 1% 4 Cess Revenue 10,231,754.00 50,000,000.00 (39,768,246.0) 20.5% 2% 5 Liquor Licence 18,410,640.00 72,150,000.00 (53,739,360.0) 25.5% 3% 6 Health Fees 21,070,336.00 100,350,000.00 (79,279,664.0) 21.0% 4% 7 Markets Fees 22,742,270.00 87,220,000.00 (64,477,730.0) 26.1% 4% 8 Advertisements 25,607,562.00 100,000,000.00 (74,392,438.0) 25.6% 5% 9 Approval for Building Plans 31,481,516.00 90,000,000.00 (58,518,484.0) 35.0% 6% 10 Miscellaneous Income 38,749,941.00 120,680,000.00 (81,930,059.0) 32.1% 7% 11 Trade Licences 57,776,780.00 330,000,000.00 (272,223,220.0) 17.5% 11% Property tax (Plot and Land 70,539,831.00 289,390,000.00 (218,850,169.0) 24.4% 13% 12 rates) 13 Vehicle Parking Fees 108,404,596.00 300,000,000.00 (191,595,404.0) 36.1% 20% 14 Royalties 113,132,968.00 184,460,000.00 (71,327,032.0) 61.3% 21% SUB TOTAL ( Local Sources) 529,345,161.00 1,800,000,000.00 (1,270,654,839.0) 29.41% 100% FIF (Facility Improvement Fund) 624,946,998.27 1,400,000,000.00 (775,053,001.73) 44.64% GRAND TOTAL 1,154,292,159.27 3,200,000,000.00 (2,045,707,840.73) 36.07% Source: Quarterly Financial Statements 2020-2021. Expenditure Performance County expenditure performance for the period July- December 2020 was affected by late approval of the budget FY 2020/2021, as well huge backlog of balances carried forward from FY 2019/2020. Further delays in approval and uploading of procurement plans also affected the execution of the County Budget. Prolonged debate at the Senate (between August and September 2020) on horizontal division of revenue delayed the passage of the County Allocation of Revenue Act (CARA 2020) and created uncertainties in national transfer of funds to Counties. During the period under review the County Government incurred a total expenditure of Ksh 4.8 billion against an annual budget target of Ksh 20 billion reflecting an overall 24 percent execution rate. This performance compares to Ksh 4.6 billion incurred in FY 2019/2020 a growth of 6 percent. Based on economic classification and approved annual targets; compensation to employees had the highest execution rate of 47 percent while development expenditure had the least execution rate at five percent. Table 6 summaries the expenditure performance by economic classification for the first six months of the FY 2020/2021. Table 6: Expenditure Performance by Economic Classification- July December 2020. ECONOMIC FIRST SECOND FIRST HALF COMPARISON APPROVED RATE OF PERCENT GROWTH CLASSIFICATION QUARTER QUARTER (OCT- (JULY - DEC JULY- DEC ESTIMATES FY BUDGET TO TOTAL PERCENT JULY- SEPT DEC 2020) 2020) 2019 2020/2021 EXECUTION EXPND. 2020 Compensation to 1,539,509,002 1,469,352,601 3,008,861,603 2,702,095,306 6,469,851,735.27 47% 62% 7% employees Use of goods and 232,810,457 576,431,475 809,241,932 946,614,746 3,028,977,719 27% 17% -3% services Transfers to the Other 85,331,660 341,833,596 427,165,256 371,848,961 1,254,408,526 34% 9% 1% Government Agencies1 Other grants and - 163,415,607 163,415,607 29,874,000.00 3% 3% Transfers Repayment of Loans/ - - - - - - - - borrowings Acquisition of assets 3,850,000 473,706,520 477,556,520 575,738,546 9,251,243,283 5% 10% -2% Totals 1,861,501,119 3,024,739,799 4,886,240,918 4,626,171,559 20,004,481,264 24% 100% 6% Source: Quarterly Financial Statements 2020-2021. Overall recurrent budget expenditure amounted to Ksh. 3.7 billion in the period July-December 2020 against an annual target of Ksh. 10.4 billion reflecting 36 percent execution rate. In the first half of FY 2020/2021, the Department of Health recorded the highest rate of budget execution of 44 percent while Nakuru Municipality and Naivasha Municipality recorded the lowest rate of budget execution of 12 and 16 percent respectively. 1 Transfers indicate transfer to the County Assembly of Nakuru. Nakuru County Fiscal Strategy Paper 2021 27 Table 7: Recurrent Expenditure Performance, July- December 2020. VOTE DEPAR TMENT COMPENSATION TO OPERATION & TOTAL APPROVED RATE OF NO. EMPLOYEES MAINTAINANCE RECURRENT ESTIMATES BUDGET EXPND. EXECUTION 4561 Office of the Governor & Deputy Governor 57,408,653.00 62,585,161.00 119,993,814.00 314,905,792.00 38% 4562 Finance & Economic Planning 244,839,522.70 71,546,942.80 316,386,465.50 876,154,314.12 36% 4563 County Public Service Board 10,572,423.09 4,365,237.00 14,937,660.09 68,144,790.40 22% 4565 Health Services 1,813,561,529.44 511,105,325.68 2,324,666,855.12 5,278,845,780.30 44% 4566 Trade, Industry, Marketing and Tourism 26,767,243.10 14,351,884.90 41,119,128.00 137,277,999.00 30% 4567 Infrastructure 52,435,359.65 76,138,703.80 128,574,063.45 365,037,520.00 35% 4569 Agriculture, Livestock & Fisheries 156,766,027.66 62,944,637.00 219,710,664.66 541,119,418.69 41% 4570 Lands, Physical Planning &Housing 43,323,747.85 3,549,469.30 46,873,217.15 135,436,278.00 35% 4572 Environment, Water & Natural Resources 80,826,866.20 27,989,357.35 108,816,223.55 279,458,650.00 39% 4574 Public Service, Training and Devolution 242,263,008.20 51,102,895.25 293,365,903.45 705,203,408.37 42% 4575 Education, ICT &E-Government 94,508,337.60 2,116,583.00 96,624,920.60 504,732,266.00 19% 4576 Youth, Gender, Culture, Sports & Social Services 54,198,811.90 8,763,499.85 62,962,311.75 241,225,041.50 26% 4577 Nakuru Municipality 1,886,232.40 1,530,400.00 3,416,632.40 27,410,689.55 12% 4578 Naivasha Municipality 3,703,107.80 3,703,107.80 23,877,506.40 16% 4573 County Assembly2 - - - 983,219,236.00 - TOTALS 2,883,060,870.59 898,090,096.93 3,781,150,967.52 10,482,048,690.33 36% Source: Quarterly Financial Statements 2020-2021. On Development Expenditure Vote, overall expenditure execution was further affected by huge balances carried forward from previous FY 2019/2020 as well as delays in processing preliminary documentation of procurement budget including Bills of Quantities (BoQs). Therefore only seven out of 14 departments recorded positive report on execution of development expenditure leading to six percent achievement rate in the first half of the FY 2020/2021. Nonetheless the Department of Agriculture recorded the highest rate of budget execution at 33 percent. 2 Quarterly Financial Statements exclude the data for County Assembly. Nakuru County Fiscal Strategy Paper 2021 28 Table 8: Development Expenditure Performance, July- December 2020. VOTE Department /Entity DEV. EXPND. COPMARATIVE APPROVED RATE OF (JULY - PERIOD ESTIMATES BUDGET DECEMBER 2019/2020 2020/2021 EXECUTION 2020) 4561 Office of the Governor - - 98,954,766.15 0% 4562 Finance & Economic Planning - 38,659,457.40 667,050,485.38 0% 4563 County Public Service Board - - 1,810,000.00 0% 4565 Health Services 90,250,595.00 206,089,389.25 1,544,032,440.39 6% 4566 Trade, Industry, Marketing and Tourism 14,194,826.40 29,718,592.33 225,590,748.05 6% 4567 Infrastructure 115,267,794.75 71,048,947.55 2,240,633,128.92 5% 4569 Agriculture, Livestock & Fisheries 153,572,633.00 27,525,411.00 469,395,548.62 33% 4570 Lands, Physical Planning &Housing - 20,716,266.00 1,162,844,529.80 0% 4572 Environment, Water & Natural Resources 175,710,620.15 92,767,040.80 1,125,325,500.69 16% 4574 Public Service, Training and Devolution - - 51,888,289.00 0% 4575 Education, ICT &E-Government 23,019,045.60 65,589,655.98 720,741,236.90 3% Youth, Gender, Culture, Sports & Social 4576 6,399,989.00 23,623,786.40 167,054,596.68 4% Services 4577 Nakuru Municipality - 529,825,868.00 0% 4578 Naivasha Municipality - 246,096,144.98 0% 4573 County Assembly3 271,189,289.95 - Totals 578,415,503.90 575,738,546.71 9,522,432,573.51 6% Source: Quarterly Financial Statements 2020-2021. Fiscal Policy The County Fiscal policy will continue to be guided by the aim to achieve maximum efficiency in allocation of County scarce resources to projects and programmes prioritised in the Integrated Development Plan. Further effort will be placed on post pandemic recovery programmes through investments and reliefs targeting the SMEs and other vulnerable sectors. In the medium-term period, the County envisage to maintain a balance budget with equal expenditure for equal projected receipts, and does not forecast borrowing as a source budget financing. Prioritisation of projects for funding shall continue to be in line with the national development agenda, the County Integrated Development Plan (CIDP 2018- 3 Quarterly Financial Statements exclude the data for County Assembly Nakuru County Fiscal Strategy Paper 2021 29 2020) the Annual Development Plan (ADP 2021/2022) as well as the integrated political manifesto by H.E the Governor. Focus will continue to be placed on taking lessons from the outcome of Mid Term Review (MTR 2020) as County Government enters the final stretch in implementation of the CIDP 2018-2022. To sustain the County Revenue mobilisation the County Government will focus on the following short term to medium term strategies a. Focus on formulation Finance Bill 2021 shall aim to provide relief to the most affected sectors; b. Full rollout of the new revenue management system; c. Deployment and redeployment of staff to better mobilise critical revenue streams; d. Acquisition of hardware and equipment support; e. Waiver of penalties and interest on selected revenues streams to encourage prompt payments; f. Enhancing checks and controls to reduce revenue leakages; g. Instituting enforcement and debt recovery measures; On expenditure management, the County Government will focus on improving efficiency in the implementation of County budget and further strengthening expenditure control measures to promote prudent public spending and achieve desired value for money in public expenditure spending. Reducing the number of balances carried forward shall be key in reducing pressure in annual budget targets. Further priority will be placed on reducing amount of pending bills through additional budget allocation as well as fast- tracking payment processes to further promote stimulus injection of capital into the economy as well as ensuring continuous service delivery. Nakuru County Fiscal Strategy Paper 2021 30 Economic Outlook Observing the recent economic developments and their impacts National and County fiscal framework, the national outlook has been revised downwards. The national economy is expected to recovery in 2021 by 6.4 percent partly on account of low base rate for 2020. A subdued growth is envisaged going into 2022 on account of planned general elections in 2022. However, the stability in macroeconomic variables observed in the wake of COVID-19 Pandemic and forecast into the short-term to medium term is expected to provide the foundation for firm economic recovery going into the medium- term period. Locally the County economy has demonstrated resilience amid huge impacts from the COVID-19 containment measures. Most service sectors including transport, tourism and hospitality have suffered due to measures taken to reduce the spread of COVID-19. The County fiscal framework operates within the same macro-environment of the national economy and variability and changes at the national scene have corresponding impact to the County forecast. This phenomenon has been evidenced in the slow growth of the equitable revenues transferred to counties. Risk to the Fiscal Outlook The knock-on effects COVID-19 still pose major risk to the fiscal outlook. Most companies and business premises have significantly scaled down in an attempt to cut cost and many employees have been laid off or furloughed. This has further eroded gains made in lifting the population from poverty. Some businesses particularly in the service sector and related SMEs may find it difficult to recover. Weak recovery in the global supply chain is further expected to reduce demand for goods and services in the external markets. The political activities surrounding the proposed referendum of Building Bridge Initiative (BBI) later in 2021 and the resultant general elections in 2022 may stifle Nakuru County Fiscal Strategy Paper 2021 31 the buoyance surrounding positive fiscal forecast in the current medium-term period. Rising County wage bill and new pension scheme for devolved staff is expected to increase County Government commitment to non-discretionary expenditure as a share of total annual budget. This may further reduce the ability of the County to meet its obligations for other non-salary recurrent expenditures. The County Government will continue monitor the occurrence at the national and subnational level with a view to instituting the necessary fiscal strategic changes to adapt to the changing environment. Further, the planned Post Covid- 19 Economic Recovery efforts spearheaded by Kenya Institute of Public Policy Research Analysis (KIPPRA) and Council of Governors (COG) are expected to help in providing the necessary relief to the County economy. Nakuru County Fiscal Strategy Paper 2021 32 II. POLICIES TO ACHIEVE MEDIUM TERM OUTLOOK Overview The CFSP 2021 has been prepared against a backdrop of a contracting economy occasioned by the outbreak and the rapid spread of the COVID-19 Pandemic. The Pandemic and the ensuing containment measures have devastated economies both local and global, disrupting businesses and livelihoods. The CFSP 2021 also coincides with the onset of the second half of the CIDP 2018-2022 implementation and the political agenda of both county and national governments’ administration. The COVID -19 pandemic continues to affect the performance of both the public and private sectors, 11 months after its onset. The 2021 CFSP is premised on the need to overcome the immediate socio-economic challenges faced by the residents of Nakuru County. The implementation of the current County Programmes and projects will lead to the realisation of equitable socio-economic development, create an enabling environment for private sector recovery and increase opportunities for private sector development, improved healthy living and livelihoods, promote food security and achieve sustainable development. In the MTEF period under review, the County Government consolidated gains made in the first five years of the integrated plan period and firmed up the institutional arrangement through approval of necessary policy documents and prioritisation of ongoing programmes/projects. County Performance was affected by below par budget implementation particularly for capital expenditure. Going forward therefore, the basis for strategic direction shall prioritize increasing efficiency in budget implementation, re-prioritization towards Post COVID-19- recovery initiatives and general performance management. The County’s short-to-medium term fiscal Strategic initiatives are further guided by National economic policy direction espoused in the Budget Policy Statement Nakuru County Fiscal Strategy Paper 2021 33 (BPS) 2021 whose focus is return the economy to the growth trajectory it was on pre-Corona, by increasing demand for local goods and services, cushioning vulnerable Kenyans, securing household food security for the poor, and creating employment and incomes. According to the Budget Policy Statement (BPS) 2021, the national pro-growth policy priorities informing the MTEF period 2021/2022-2023/2024 include: Rolling out the Post-Covid-19 Economic Recovery Strategy; Harnessing the implementation of the “Big Four” Agenda for job creation; Fostering a secure and conducive business environment by maintaining macroeconomic stability, enhancing security; improving business regulations; Fast tracking the development of critical infrastructure in the country such as roads, rail, energy and water, among others, so as to reduce the cost of doing business as well as promote competitiveness; Transforming economic sectors for broad based sustainable economic growth; Improving access to education, strengthening health care systems and enhance cash transfers to support the vulnerable members of our society; Support youth, women and persons with disability to enable them actively contribute to the economic recovery agenda; Facilitating the County Governments in strengthening their systems to enhance service delivery; and Implement various structural reforms to enhance the efficiency of public service delivery while at the same time ensuring accountability for better macroeconomic and fiscal stability, sustained credit ratings, improved fiscal discipline and minimized corruption. The overall County policy framework borrows heavily from the national fiscal policy priorities as espoused in BPS 2021. The CFSP 2021 shall be founded on the following five fiscal strategy initiatives that the County has adopted in the medium-term period; i. Promotion of accessible and affordable healthcare for all county residents toward the realisation of UHC; ii. Promotion of agri-business and achieving food nutrition & security; Nakuru County Fiscal Strategy Paper 2021 34 iii. Expansion and operationalization of County social and physical Infrastructure. iv. Creating an enabling conducive business environment for growth v. Enhancing governance, transparency, accountability and human resource productivity in the delivery of public good and service; In order to support participation of the Private sector in the post-corona era and achieve stability in County macroeconomic environment, the County Government will continue to focus on the creating a conducive environment for all-inclusive and sustainable growth, equitable social economic development and reduced inequalities among County residents. Fiscal Strategy Initiatives: i. Promotion of accessible and affordable healthcare for all county residents toward the realisation of UHC; The County Government continues to give focussed prioritization to the health sector, to address access, quality, affordability in line with the Universal Health Care Programme. The continuous strengthening of the sector enabled the County respond promptly and adequately to the COVID-19 Pandemic. This was backed up by allocation of funds by the County Government towards acquisition of commodities, equipping of isolation centres with ventilators, ICU beds and additional recruitment of staffs. The County Government strategy in healthcare is to build a strong referral system. The county has 14 level-4 health facilities, seven of which were upgrade in the MTEF period 2017/18-2019/20, and has prioritised expansion of infrastructure as well as services offered. The PGH Level-V hospital has been a major beneficiary to modern state-of-the art infrastructure such as the Mother-Baby Wing and the near-complete Outpatient Department Block that will consolidate all professionals offering specialised services at one place. Further, the hospital Nakuru County Fiscal Strategy Paper 2021 35 introduced new specialised services such as renal and oncology services. Naivasha level-IV is currently constructing an OPD. This is being done in collaboration with KENGEN. The facility offers services to Nakuru County residents and the residents from neighbouring counties. Other Level-IV facilities with planned major infrastructural upgrading include Gilgil, Molo, Olenguruone, Elburgon, Njoro, Maai Mahiu and Githioro Health centres. Level III facilities are also earmarked for infrastructure upgrading and expansion, with an intent to intensify services offered. The County will continue to ensure consistent supply of drugs and non-pharmaceutical commodities on the basis of level of service in each facility in order to ensure undisrupted service delivery. This will help sustain adequate service provision under curative and primary health programme. In the 2019/20 period, Ksh 768Million worth of health commodities were procured and distributed. Based on the emerging trends, the County Government has prioritised reversal of burden occasioned by non-communicable diseases through strengthening specialized services such as comprehensive oncology services, imaging, specialized clinics and theatres, renal units among others in selected major hospitals. Dental services are also planned to be operationalised in Subukia, Olenguruone, Njoro, Langalanga and Molo hospitals. To consolidate the gains realised on health infrastructure development, the County will continue to prioritise equipping of existing facilities with the aim of deepening level of services, or operationalizing them. The sector does not to envisage construction of new Level-1 facilities, as research shows the County has already attained the 5-km radius distance from one health facility to another. A notable improvement in use of health insurance has been recorded as reflected in improved revenue collection in the health sector. The County Government will continue sensitising and mobilising residents to health insurance especially the NHIF as a key strategy in promoting the attainment of UHC aims Nakuru County Fiscal Strategy Paper 2021 36 and objectives. This will help reduce the hospital expenses by individuals and households. The County Government will continue to leverage on National Government planned full roll-out of the UHC programmes as envisaged in the BPS 2021. The National government in conjunction with Nakuru County Government has undertaken biometric registration under the UHC scheme, with over 41,000 households targeting the poor and vulnerable being registered in Nakuru County, out of the one million households registered nationally. In addition, the County has allocated some funds towards NHIF coverage at the ward-level, in the current financial year. This is expected to increase in the MTEF plan period, through sensitisation and mobilisation. In order to further sustain continuous healthcare financing, the County Government has achieved greater efficiency in internal Facility Improvement Fund (FIF). The County Government has been recording annual improvements over the last three years, with an annual collection of 1.085 Billion in FY 2019/20, an achievement rate of 109 percent. Observing these gains, the County Government will continue to promote efficiency in service delivery in Level Four and Level Five Hospitals. The County Government continues to leverage on strategic partnership with stakeholders in the Health Sector through both on and off-balance sheet to support health care financing. Over the next MTEF period 2021/22-2023/24 the County Government will maximise on Partner coordination and resource mobilization to bridge the budgetary gaps and enhance efficiency and accountability. These partnerships include the Word Bank funded Transforming Health Systems (THS) for Universal Care project programme, DANIDA grant in support of primary health care services. Other partners in infrastructural development include the Geothermal Development Company supporting Naivasha Leve-IV hospital and World Bank-KDSP Capital Grant supporting Njoro Level-IV hospital. Nakuru County Fiscal Strategy Paper 2021 37 The County will collaborate with the National Ministry of Health in support of HIV/AIDS/ TB program, children immunizations, Conditional Grants for referral hospital (PGH–Nakuru), Reproductive health commodities and Anti- Malarial commodities. Further the County will continue to partner with other private healthcare providers in realising target health indicators. To address the disease burden as a result poor sanitation, the sector will place particular emphasis on Water and Sanitation Hygiene (WASH) programmes over the next medium-term period partly through Sanitation Roadmap Campaign, and Urban Led Total Sanitation (ULTS) programmes. Further the County Government will pursue multi-sectoral approach in addressing the sanitation related health concerns through the NACOSTIP (Nakuru Countywide Sanitation Strategic and Investment Plan 2017-2022) which bring together all major sectors in sanitation management including Water and Environment. Promotion of health messages to households will be intensified. Approximately 80 percent of the top ten disease burden are caused from preventable causes, hence the focus of the sector towards preventive and promotive services, as a game changer. The Mother and Baby Unit (namely the Margaret Kenyatta Wing) with a capacity of 240 beds and eight theatres has helped improve the access of maternal health services in the county. Four other facilities have modern maternity wings under construction namely; Elburgon, Njoro, Molo and Gilgil. The County will continue leveraging on the national Linda Mama programme which allow free maternal service in all public facilities, ensure all pregnant mothers attend all four ANC visits and finally deliver with the assistance of skilled birth attendant, while promoting the Prevention of Mother to Child Transmission (PMTCT) towards reduced transmission of HIV/Aids to the new-borns. To attain the goal of expanding research and development in health, the County will seek strategic partnerships with University medical schools to build the body of knowledge and expertise required. Nakuru County Fiscal Strategy Paper 2021 38 In regard to improvement of health referral services, the County Government has acquired ambulances with efficient fleet management system that leverages on GPS technology. The County will strengthen this by ensuring a coordinated approach through a central ambulance dispatch centre. Under human resource, the County recruited 23 medical specialists, 163 health workers on contract; recruited 98 universal health coverage (UHC) staff and 47 interns in the period under review. This was partially to enable specialised response to Covid-19 treatment and care, while further improving the doctor- patient ratio. The County Government will continue to leverage on usage of the adopted County Integrated Human Resources Information System (IHRIS) in order to optimize HR management in light of the limited human resource for health. Further the County Government will continue to institute measures implementing commitments to Collective Bargaining Agreement (CBA) for health workers and addressing the natural employee attrition through an effective and efficient Succession Management system. ii. Promotion of agri-business and achieving food security; The Agriculture sector as the biggest employer and contributor the Gross County Product, is very important in addressing both food and general poverty in the County. Approximately 19 percent of the population in Nakuru County are classified as food poor. It plays a significant role in contributing to economic and social development through enhancing food security, income generation, employment and wealth creation, foreign exchange earnings as well as security of land tenure and public land management. The national Big-Four agenda recognises the sector as the main pillar towards achieving food nutrition and food security in the country. The County Government will prioritise agricultural sector policies aimed at increasing food production and agriculture sector commercialisation. Nakuru County Fiscal Strategy Paper 2021 39 The broad-based approach in the sector will focus on programmes aimed at increasing crop, livestock and fish productivity to ultimately address food shortage and assure increasing productivity. The County will strengthen the provision of extension services through recruitment of additional staffs and facilitating the extension programmes to improve timely and adequate interactions with the farmer. To improve agriculture commercialisation, the County Government will sustain efforts aimed at addressing constraints that impede efficiency along the agriculture value chain. These among others will include working with farmers cooperatives to streamline the market infrastructure, construction and operationalisation of milk cooler plants. Implementation of the 50-kgs Irish potato- packaging 2019 regulations is being enforced by the County Government. The main goal will be to focus on food production and animal husbandry and thereby ensuring food nutrition and security. The County will continue focussing on pyrethrum revival, as a commercial crop. Further the Sector will focus on improving the farm incomes through on-farm small holder commercialisation initiatives, and ensuring non-exploitation of farmers by the middlemen. Crop sub sector will target to enhance knowledge and skill transfer services, improved agricultural productivity, food security, and farm incomes. Significance emphasis will be placed on crop pest and disease control, sustainable use of land resources as a basis for agricultural enterprises, promotional of uptake of modern farming methods, leveraging on the national fertiliser cost reduction programme. During the next MTEF period under consideration, the County Government will continue to reach out to farmers, through extension services across all sub- counties with the aim of equipping farmers with the right skills on proper farming methods. The County Government shall further continue to address unique farmer needs through the established a farmers’ call centre at the ATC to ensure an effective real time information response mechanism. Nakuru County Fiscal Strategy Paper 2021 40 Providing interface between Agricultural research outcomes and farmer is critical to addressing important farming challenges. The County Government will continue to leverage on the existing county Research organisations based in Nakuru County namely KARLO, RVIST, Egerton University, DTI among other to lead in Research, training, and capacity development of farmers to implementation of sub sector programmes. The County Government will continue to leverage on support from development partners in order to reduce the notable budgetary gaps in the agriculture. The main donor programs on the sector include National Agricultural Rural Inclusive Growth- Project (NARIG-P) and the Agricultural Sector Development Support Programme (ASDSP II). Under the NARIG-P Project, the County focus on increased agricultural productivity and profitability of targeted rural communities. The ASDSP II aims to enhance coordinated sector support towards resilient value chain development. IFAD and SIDA are also supporting other projects including such as SCDP, SHEP PLUS and VIJABIZ and ASDSP. To improve sustainability of sector programmes the County Government will continue to maximise on Own Source Revenues (OSR) in agriculture streams namely Agriculture Mechanisation Services (AMS), and the Agriculture Training Centre (ATC). The County Government has mainstreamed climate change as one of cross cutting issue. To further address the climate change effect in the sector, the County will prioritise promotion of climate smart agriculture through increasing the number of farmers under crop insurance, crop diversification to other non- traditional crops including macadamia nuts, avocado. Partnerships from development partners on this component will also be mobilised. The County Government continues to make significant progress in the livestock subsector by focussing on improved breeds for chicken, goats, beef and sheep. Vaccinations against common notifiable livestock diseases were done such as Foot and Mouth Disease, Lumpy Skin Disease, Anthrax, Sheep and Goat pox, Nakuru County Fiscal Strategy Paper 2021 41 Contagious Caprine pleuropneumonia, Pestes des Petit Ruminants, Rabies and other emerging pests/disease. Licensing of slaughter houses and slabs, hides and skins traders will continue for quality control. This will continue being in the MTEF period 2021/22-2023/24. To consolidate the gain realised thus far in the subsector, the County Government will prioritise the following; animal health and boost livestock productivity, animal disease control, food safety and quality control in trading of animals and animal products, control of livestock movement to reduce spread of diseases and promotion of value addition on hides and skins. Additionally, there is a plan construct an exports slaughterhouse and feedlot facility at Naivasha. Under the fisheries subsector, the County will prioritise growth in capture Fisheries resource management and fish safety through restocking of Lake Naivasha and Lake Solai, and public dams, regulation of Lake Naivasha, value addition and marketing through construction of the Naivasha fish Market and revival of fish farming across all Sub Counties through supply of fingerlings and pond liners. In the period under review approximately 1.75 MT of fish valued at Ksh. 200M were captured and marketed in the County. The operationalisation of the fish processing and cold storage facility in Naivasha combined with the proposed Smart Food Market (Fish Market) along the Naivasha Nakuru Highway, will further help increase the incomes from the fishing industry in Naivasha. Further the County continues to monitor and make surveillance visit in Lake Naivasha in order to regulate and sustainable manage the fish resource. Going forward the Fisheries Subsector will seek the right solutions on the ongoing fishing activity in Lake Nakuru, in collaboration with other relevant bodies. iii. Expansion and operationalization of County physical and Social Infrastructure. Kenya’s Vision 2030 recognises physical infrastructure that is efficient and reliable as a significant enabler to achieving goals and objectives all other sectors of the Nakuru County Fiscal Strategy Paper 2021 42 Economy. Efficient infrastructure also significantly contributes towards reduction of costs of doing business. In the MTEF period 2021/22-2023/24, the overriding priority will be to undertake completion and operationalisation of all ongoing projects. This will help the County achieve value for money in the management of public finances. Results from the 2019 National Census revealed a significant growth in the urban population in Nakuru County. A rising urban population has continued to cause stress on the limited urban infrastructures. There is also increasing demand to improve the infrastructure in rural areas. The County Government continues to place high priority in development and expansion of both physical and social infrastructure to facilitate ease of transportation and service delivery access. The County continued to strengthen the ‘Boresha Barabara Programme’ by procuring and leasing additional equipment. During the MTEF period under review, the Infrastructure Subsector procured a grader, 3 Excavators, a dozer, 8 tippers, 4 rollers, 1 low bed and 3 pick-up trucks towards the programme. The programme aims at using own machinery to address the rising cost of road construction and maintenance in the County. 3462 Kms of road were graded, 1282Kms gravelled, 7kms tarmacked and several new roads opened up. 7 bridges were also constructed, and Gilgil and Naivasha bus parks rehabilitated. In the MTEF period 2021/22-2023/24, the Subsector plans to hire additional equipment to increase the scope and frequency of works under the programme. This will enable grading of 6300Km and gravelling over 1400Km of roads. Further, the County will continue to maximise the conditional allocation on Road Maintenance Levy Fund work plan based on the following guidelines; i) Artery roads that connect more than one ward; ii) Roads that are commonly utilised by the Public Service Vehicles (PSV); iii) Roads that has industrial importance; iv) County bus parks and terminals. Nakuru County Fiscal Strategy Paper 2021 43 The County will prioritise design and construction of approximately of 47no. motorable & foot bridges & rehabilitate and maintain 3 Bus parks. The County Government is implementing the Kenya Urban Support Programme (KUSP) in Nakuru and Naivasha Municipalities through support from the World Bank. Ongoing major projects include storm water drainage works in Nakuru East, road works, Fire station in Nakuru CBD, Naivasha market and upgrading of Afraha Stadium. During the next MTEF period 2021/22-2023/24 the County Government will target finalisation of the prioritised KUSP projects with the aim of operationalizing the same to further address the growing need of urban infrastructure renewal and expansion. In addition, the Municipalities will focus on tarmacking of roads, Non- Motorized Traffic (NMT) and streetlight facilities. Towards addressing urban infrastructure needs and in preparation towards City Status, the County in collaboration with State Department of Urban Development has initiated the construction of a mixed-use modern multi-storey market consisting of a wholesale market, retail market for fresh produce, and a variety of commercial activities such as eateries, baby care centre and other businesses. This is part of the wider development initiatives towards City regeneration plan. The market shall be adjoined to a major bus park, to ensure adequate traffic of people towards businesses. Further, the County Government through the leadership of H.E Governor Lee Kinyanjui has pursued the National Government to upgrade the Lanet Barracks airstrip to a Nakuru commercial airport. The first phase of upgrading has already been awarded to a contractor at cost of Ksh 400 Million by Kenya Airports Authority. The airport will further firm up the case of Nakuru town acquiring the City Status, as one of the requirements envisaged in the Urban Areas and Cities Act 2011. Nakuru County Fiscal Strategy Paper 2021 44 The County will also benefit from the proposed dualling of the Rironi-Mau-Summit road that upon completion will ease traffic jam along the route thus reducing time taken to transport goods and services on the route. The County Government has prioritised expansion of street lighting as a strategy on increasing business hours towards the 24-hour economy and enhance security. To this end the County targets to install 100 new security lights and rehabilitate approximately 2,700 number of street lights. The County however has been struggling to maintain operating costs of street lighting programme. To promote sustainability of the street lighting programme and address the high maintenance cost, the County will adopt more energy efficient strategies including solar lighting and the low maintenance LED lights. The department of Infrastructure undertook an energy audit in 2020, whose findings and recommendations haven’t been finalised for adoption. The County Governments has prioritised Disaster management, observing frequent disaster occurrences in the recent past. Major gains in the reporting period includes establishment of County Disaster management unit, ongoing construction of a new fire station in the CBD near Old Town Hall, and acquisition of additional ambulances. Going forward the County Government will undertake the completion of the fire station, acquisition of new fire engines, training of fire marshals and emergency health officers among others, implement the planned coordinated approach of a common dispatch centre for ambulances, continuously map-out all disaster-prone areas in the County and finally develop a response and recovery strategy. In regard mainstreaming of climate change, a draft bill on climate change that will facilitate mitigation, response and adaptation is currently being deliberated on, by the County Assembly. It creates a room for funding by the County Government and also a big room for the non-state actors and development partners. Nakuru County Fiscal Strategy Paper 2021 45 During the reporting period the County Government set up various ICT infrastructural projects including installation of Local Area Networks (LAN) in several sites, partial establishment of data centre and internet connectivity at the county headquarters and various departments, operationalized five digital centres in Subukia, Kuresoi South, Shabab, Menengai East and Rongai polytechnic; establishment of Wide Area Network (WAN), and installation of free Wi-Fi at Naivasha bus park, Molo market, Gilgil town and Kabazi market. Going forward into the next MTEF 2021/22-2023/24, the ICT subsector will undertake more expansion of LANs, WANs and WIFI spots in various County offices and sites, and complete the County data centre. The County Government will leverage on the expanded ICT infrastructure to promote digitalization and digitisation of County services. The National government also plans to install CCTV cameras in Nakuru Town, in the MTEF period under consideration. This will aid security surveillance, in the soon to be City. The construction of SGR phase 2A to Maai Mahiu terminus, and the inland container depot, and a customs office were completed and operationalised in 2020 by the National Government. These fall under a designated Special Economic Zone (SEZ) comprising 1000 acres of land, a master plan for which has been finalised. This will also include an industrial park that is yet to be constructed. The connection of the Maai Mahiu SGR line to the Meter Gauge Railway at Longonot is near complete. The County Government has positioned itself to maximise on the expected multiplier effect through creating of the necessary supportive infrastructure and policy framework within the basis of County functions. Towards this goal, the County gained an allocation of 50 acres to develop complementary services that support the operations of the economic zone. These include commercial services, banking and finance, shopping mall, recreational services, residential housing, workshops and garages etc. The County has already floated an invitation request to developers, for investment proposals on the same. Further, the County stands Nakuru County Fiscal Strategy Paper 2021 46 to gain after the planned rehabilitation of Naivasha-Malaba and Nakuru-Kisumu Meter gauge Rail, with increased economic activities in the railway stations. The County is also targeting to facilitate construction of 2400 affordable houses through private sector investments within Naivasha Town. The County will seek to create job opportunities for the abundant available County labour force and generally shore up the County economic growth. The County has prioritised the expansion of other social infrastructure in order to reduce social inequality and realise effective and efficient service delivery. During the reporting period the County made significant gains in construction of ECDs, Social Halls, and Health Sector infrastructure. The County will continue to build on the gains realised in the period under review and focus mainly of operationalisation of completed infrastructure as well as equipping of the same. The County Government has gained substantial achievements in furnishing the ECDEs across the county. The increasing access to clean water and sanitation facilities significantly helps achieve the indicator for water while significantly reducing the County disease burden resulting from poor sanitation. To increase water and sanitation coverage over the next MTEF period 2021/22-2023/24 the County will prioritise completion of all ongoing water projects, solarisation of 10 boreholes, rehabilitate 30 water projects, identify and drill additional boreholes where necessary, construct 5 no. water dams/pans, desilt 7 no water pans/dams and construct Public toilets in strategic areas. The County will upscale on infrastructure development for vocational training, through construction of new workshops/classrooms, curriculum development and equipping of existing polytechnic in order to improve on education quality and also maximise on the national capitation for village polytechnics. The County is also focussed on nurturing sporting talents through the expansion of Afraha Stadium, and construction of Keringet Sports Centre. Other smaller sports facilities such as Gilgil Stadium, Bahati Stadium and St. Teresa Primary field are undergoing Nakuru County Fiscal Strategy Paper 2021 47 infrastructure improvements. A grassroot approach in identifying sports talent has been adopted by the Sports Subsector. Training of Coaches and supply of equipment and training kits has been an ongoing programme. To increase access and retention for ECD education the County will continue to prioritise on the operationalization and expansion of ECD classrooms within the already established centres as well as equipping of existing classrooms. Finally, the County will identify new core areas for infrastructure development in the 3rd Generation CIDP 2023-2027, whose preparation will commence within the MTEF period 2021/22-2023-24. iv. Creating an enabling conducive business environment for growth and private sector participation. The County Government continues to pursue policies aimed at promoting the participation of the private sector through deliberate multi-sectoral initiatives that focus on the ease of doing business. The Institute of Economic Affairs, in 2020 ranked Nakuru first among the Kenya’s five populous counties, in ease of starting business due to reduced tax burden. Towards the end of year 2020, H.E Governor Lee Kinyanjui was named as Africa’s Business Friendly Governor of the year. This depicts the extent to which the County Government leadership is receptive to creating an enabling environment for investments and business growth. During the period under review, the County Government held a Nakuru International Conference (NICO) in November 2018 under the theme “Using geothermal Energy as a Competitive Advantage” to further enhance investment promotion and Foreign Direct Investment (FDI). A number of bankable projects were identified in which Investment commitments worth more than Ksh 8 billion have been made. So far, the Simba Cement Factory (worth Ksh 6 billion of private sector investment) has been operational and is a clear indicator of the Nakuru County business climate. The company has brought Nakuru County Fiscal Strategy Paper 2021 48 changes to the prices of cement and created job opportunities directly and indirectly. Other feasible project initiatives pipelined for implementation through private sector investment include the Egerton Agri-city project, Oserian two Lakes Industrial Park. Through the Department of Trade, the County Government will continue to work towards eliminating unnecessary bureaucratic bottlenecks that limit the turnaround time for business start-ups. Through pursuit of partnerships with the national Government, a number of high impact projects have materialised, which will further improve the business environment. Some of these include the proposed Nakuru Airport at Lanet, the modern multi-storey market at Old Fire station, the allocation of 50- acre to Nakuru County Government at Maai Mahiu for complementary investments by Nakuru County residents to the Special Economic Zone, and the planned PPP Housing project at Naivasha targeting 2400 units. All these developments present chances for business investments, job opportunities and wealth creation to the populace. The County Government has initiated relevant policy legislation including Land Use zoning and enhancing collaborations with relevant State Departments & Agencies to promote County investments and fast-track regulatory frameworks necessary for business start-ups and growth. Among such initiatives include formation of Alternative Land dispute Resolutions, Spearheading of the National Titling Programme, preparation of new valuation roll, Finalisation of the Nakuru and Naivasha Strategic urban Development Plans. To promote agribusiness and spur local economy, the County will provide linkages between the local farmers and the export market and through focus on improving efficiency in the value-chains as well as expansion of market infrastructure. Over the next MTEF period 2021/22-2023/24, the County will continue pursuing an investor focused policy guided by the unique outcomes of the Investment Conference. The County is pursuing modalities of collaborating with commercial banks, with an intent of increasing access to subsidised finances to SMES for Nakuru County Fiscal Strategy Paper 2021 49 business recovery and expansion, as one of the Post-COVID-19 recovery initiatives. The County Finance Bill has continued to be a significant fiscal policy tool in Own Source Revenue Tax Administration. To address concern on payment of fees and charges, the County will continue to pursue a business oriented fiscal policy, automation of revenue services, pursue a harmonised tax regime in business licensing and continuously engage all rate payers through the public participation in the formulation and implementation of the County Finance Bills. To enhance efficiency and effectiveness in County infrastructure and further ease the cost of transport for business and general public, the County Government will prioritise expansion, rehabilitation and maintenance of county roads. This initiative will be mainly realised through Boresha Barabara Programme discussed above, RMLF Conditional grant and the KUSP programme aimed at expanding urban infrastructure. Further to considerably increase business hours for traders/merchants towards achieving the 24-hour economy, the ongoing County Street lighting program under the banner Inua Biashara will continue. To enhance service delivery through digital platforms, the County targets to reduce the turnaround time in services through investment in ICT infrastructure for both hardware and software platforms. The County has already acquired a new revenue management system which is still in early stages of implementation. The Counties continues to implement all modules of the IFMIS system such as Budget and Expenditure, E-Procurement etc. Finalisation of the Lands Information Management System (LIMS) will be pursued. The government will provide necessary operational & maintenance support to facilitate continuous and consistent performance of ICT systems. During the reporting period, the County Government established the Naivasha and Nakuru Municipal Boards, in line with the Urban Areas and cities Act 2011, to address unique needs of the urban dwellers. The County Government aims to finalise the preparation and begin the implementation of the Urban Integrated Nakuru County Fiscal Strategy Paper 2021 50 Development Plans (IDeP) for both municipalities. The County Government further, has begun to implement projects under the broader urban renewal programme in readiness for ongoing pursuit for elevation of Nakuru Town into a City. These initiatives are expected to further propel the County as a desirable investment destination. To cushion the disadvantaged/ vulnerable groups in the society and promote social equity, the County Government will continue to pursue a fiscal policy aimed at directly addressing social economic inequalities. This will among other entail implementation of the Disability Fund, Sports Fund, AGPO, Ward based funds as defined under the Nakuru County Revenue Allocation Act, 2018. The County is also at final stages of enacting the Enterprise Fund Act, 2020 and Cooperative Development Revolving Fund Act, 2020 that create an enabling framework for increased financial access to County SMEs and cooperatives, through subsidised loans. This is also a post-COVID-19 recovery initiative for businesses. Continuous capacity building of SMEs and cooperatives by the Trade Department is being undertaken, to improve their productivity and governance. v. Enhancing governance, transparency, accountability and human resource productivity in the delivery of public good and service; Prudence in management of County resources both financial and otherwise are the hall marks of achieving the stated fiscal goals. The focus in achieving good governance, transparency and accountability envisaged in the Constitution of the Kenya 2010 shall entail the following employee performance management; training and development; recruitment, induction and deployment; strengthening of internal control systems. During the reporting period, the County Government operationalised the performance management system through the Performance Contracting process as envisaged in Section 27 of the County Government Act 2012. The outcome of the 2018/19 external evaluation done by the Kenya School of Nakuru County Fiscal Strategy Paper 2021 51 Government (KSG) revealed important lessons on the general performance of the County Government Departments which include a positive correlation between Departmental performance and rate of their budget execution. However, Performance contracting wasn’t fully implemented in the 2019/20 due to COVID-19 disruptions. Going forward the County Government has prioritised taking the necessary strategies aimed at significantly improving the Departmental performance contract commitments which includes commitments for financial utilisation, in order to transform the human resource and achieve a result-oriented workforce. The comprehensive Human Resource Audit report released in the reporting period November 2018 identified significant human resource constraints and gaps ranging from mismatch in available skills sets, and an ageing workforce. Observing the expanded mandate of devolved governments, in the next MTEF period 2021/22-2023/24 the County Government will prioritise a phased implementation of the recommendations of the human resource audit reports taking cognisance of the constraints of the personnel budget. This will among other entail formation of an advisory committee on Succession Management with linkages to budget making processes. The County Public Service Board should also prioritise the critical areas that require immediate staffing, against the allocated budgets. In undertaking the recruitment mandate, the Public Service Board shall adhere to the tenets envisaged in the 2010 Constitution and the County Government Act, 2012. To promote access to information as envisaged in the Access to Government Information Law, the County has taken deliberate steps to continuously publish all the statutory documents including key budget documents and plans through the County Website (https://nakuru.go.ke). The website is planned for redesigning to make it more user friendly. Nakuru County Fiscal Strategy Paper 2021 52 To further promote employee performance and efficiency the County Government will continue to commit resources for training and employee development and align training to the needs of individual scheme services. To achieve the fiscal responsibility principles envisaged in Section 107 of the PFM Act 2012 and the PFM (County Governments) Regulations 2015, the County Government shall through County Treasury, utilise the available PFM tools to enforce fiscal responsibilities and move towards prudence in PFM. In further compliance with the requirement of the PFM Laws, in the FY 2019/2020 the County Government established the Nakuru County Audit Committee and the Nakuru County Budget and Economic Forum. Going forward into the next MTEF period, these organs are expected to instil more transparency and accountability in the budget formulation and expenditure management. In line with the Urban Areas and Cities Act 2011, the existing Nakuru and Naivasha Municipal boards will ensure adherence to conducting of urban citizen fora as required by law. To further meet the County Government financial obligations and in line with the National Treasury guidance on prioritisation of pending bills clearance, the County Government will continue settling the pending bills cleared by the Pending Bills Committee, by ensuring significant budgetary allocations. The County will continuously institute measures aimed at faster and prompt settlement of claims from its suppliers and contractors. To achieve sound human resource conduct and discipline the County Government will continue to enforce the Public officer ethics Act,2006 and values and principle for public service in accordance with Article 232 of The Constitution of Kenya 2010. In order to reduce the administrative costs of running County Government functions, eliminate duplication, transfer critical resources to core expenditure and achieve economy in utilisation of financial resources, the County Nakuru County Fiscal Strategy Paper 2021 53 Government continue to institute necessary public finance management reforms and controls measures envisaged in the PFM laws. During the reporting period (FY 2019/2020) the County Government recorded a drop in revenue collection amounting to 13 percent in County Own Source Revenues (OSR), compared to FY 2018/19. This is majorly attributable to adverse effects of COVID -19 pandemic containment measures, weak revenue systems and inadequate staffing among others. Indicative revenue reports for the first half of FY 2020/2021 reveal a performance rate of 36 percent, against the annual targets. Going forward, the County Government will stabilise the usage of the newly acquired revenue management system to optimise on local sources. Revenue mapping, improved forecasting, completion of the valuation roll and use of LIMS will help improve the revenue collection base. On the expenditure front, the County will initiate training of staff on all IFMIS modules and further (through the County Treasury) provide guidance in prudent accounting procedures for improved expenditure management and financial reporting. Other major priorities aimed at realising social equity, transparency and accountability in the next MTEF period 2021/22-2023/24 will include the following; implementation of the County Revenue Allocation Act 2018, implementation of the County Access to Government Procurement Opportunities (AGPO) , public participation in the formulation of County Statutory documents, up-scaling of the County complaints handling mechanisms and providing feedback to the external stakeholders and further use such information to make improvements. The County will also keep pace with the political happenings on the proposed Constitutional Amendment Bill, 2020 to ensure all proposals affecting the public are implemented, should the Constitutional Amendment be undertaken. The County Government has continued to conduct tracking of the implementing of the CIDP 2018-2022 within the framework of the cascaded County Integrated Monitoring and Evaluation System (CIMES). The County Government is currently Nakuru County Fiscal Strategy Paper 2021 54 finalising the preparation of the Mid-Term Review Report to assess the implementation status thus far and further recommend the implementation strategy for the second half of the plan period. The County Government continues to strengthen the processes under the devolved mandate within the prioritised Key Result Areas (KRAs) under the Kenya Devolution Support Programme, which include: Public Finance Management; ii) Planning, Monitoring and Evaluation iii) Human Resource Management; iv) Civic Education and Public Participation; v) Environmental Safeguards. The recent Annual Capacity Performance Assessment (ACPA 2020) has identified significant gains and improvements across all KRAs in the next MTEF period the County will continue to consolidate the gains made thus far to continuously strengthen the targeted subnational institutions. Nakuru County Fiscal Strategy Paper 2021 55 III. INTERGOVERNMENTAL FISCAL RELATIONS AND DIVISION OF REVENUE Introduction The Nakuru County Government will continually seek both horizontal and vertical fiscal relations with a view of promoting harmony in County social economic development. The section presents the intergovernmental fiscal relations and the division of revenue of the county. Intergovernmental Relations a) PFM Institutions The Nakuru County Government has continued to receive capacity development of officers on PFM related functions such as accounting, budgeting, revenue management and intergovernmental fiscal relations courtesy of the support from the National Treasury. The National Treasury has continuously played a key role in budgetary implementation, through the management of the IFMIS modules as well providing advisory on the budget making process. Other PFM institutions such as the Controller of Budget (CoB), Commission on Revenue Allocation (CRA), Public Procurement Regulatory Authority (PPRA), Salaries and Remuneration Commission (SRC), Central Bank Kenya (CBK) and Office of the Auditor General (OAG) have had close working interactions with the Nakuru County Government. The Intergovernmental Budget and Economic Council (IBEC), Chaired by the Deputy President has also been playing a key role in deliberating and providing direction to economic and budget issues, affecting Counties and the National Government. The County will continue working with these institutions to achieve improved budget outturns and strengthen financial processes. Nakuru County Fiscal Strategy Paper 2021 56 b) Other Institutions The Ministry of Devolution and ASALs continues to oversight the implementation of the World Bank funded Kenya Devolution Support Programme (KDSP), a performance for results grants whose objective is to improve capacities in PFM Systems, Planning Monitoring and Evaluation, Human Resource Management, Civic Education and Public Participation and Environmental and Social Safeguards. The County Government has continued to implement projects under the 4-year Kenya Urban Support Programme (KUSP) grant by the World Bank whose goal is to support the establishment and strengthening of urban institutions & systems to deliver improved infrastructure and services in participating counties, hosted by the Ministry of Transport Infrastructure, Housing and Urban Development. The grant has seen the establishment of the two municipal boards i.e. Nakuru and Naivasha municipal boards and the implementation of the identified projects is on course. The County is also working closely with the State Department for Urban Development on the construction of a 600-Million Modern multi-storey market under the Trade Department. The market is located at the Old Nakuru fire station grounds. The County is also working closely with Technical and Vocational Education and Training Authority (TVETA) on Curriculum development to implement the Akira-ILO (International Labour Organization) Project, which seeks to train youth on identified skills to enable them meet requirements of the job market and increase employability. The project, known as the “Inclusive Growth through Decent Work in the Great Rift Valley” targets both Nakuru and Narok Counties and it focuses on skills required for the Energy Sector (Geothermal Development). The 4-year project is implementable under a Public Private Development Approach, where Counties will be responsible for equipping, employing and training the personnel for the targeted polytechnics. Nakuru County Fiscal Strategy Paper 2021 57 The County still continues to benefit from the capitation programme accorded to the Vocational Training Centres. Inter-County Relations In order to consolidate devolution aspirations, County Governments have been joining forces to form Regional Economic Blocs. This will enable them leverage on economies of scale in investments, trading and infrastructural activities. Nakuru County has subscribed to the Central Kenya Economic Bloc (CEKEB) whose membership consists of 10 Counties, Namely: Embu, Kiambu, Kirinyaga, Laikipia, Nakuru, Nyandarua, Nyeri, Meru, Murang’a and Tharaka Nithi. CEKEB envisions a region where people can realize their full potential to attain high-quality life. To achieve this, CEKEB will promote sustainable regional socio-economic development for the welfare of citizens. Some of the realised developments include the revival of the Nairobi-Nanyuki Rail-line. The CEKEB seeks to ensure revival of the Gilgil-Nyahururu rail-line in the second phase. Once this is achieved, there is going to be increased economic activities in the Gilgil railway station that is going to benefit Nakuru residents. Cash Disbursement and Expenditure in FY 2019/2020 by Nakuru County Government The County received a total of Kshs. 17.44 Billion in the FY 2019/2020 as exchequer releases compared to 15.68 billion in the FY 2018/2019(CBROP 2020). The exchequer releases comprised of Kshs 9.575B Equitable share, Kshs 2.109B conditional grant, 5.667 fiscal balance and 80.5M as allowances for health workers. The growth in exchequer releases is majorly attributable to increase in the fiscal balance by Ksh 1.832 compared to the previous financial year. There was only a slight growth in receipted equitable share compared to the FY 2018/19 by Ksh 100M. However, an additional amount of Ksh 900 Million that had been reduced Nakuru County Fiscal Strategy Paper 2021 58 during national government budget cuts was later received in August 2020. Other revenue sources during the year included the local revenue sources at Ksh 1.354 Billion and Facility Improvement Fund at Ksh 1.085 Billion. The County Own source revenues had a cumulative performance of 78 percent against the annual target. The County total expenditure stood at Kshs 14.59B against a target of Kshs 21.95B. This represents an under spending of Kshs. 7.31B. The underspending was attributed to the slowed activities during the containment measures after the outbreak of the COVID-19, delayed disbursement of funds to the County Government from the National Treasury among others. Revenue Allocation to the County Government for the Year 2021/2022 As envisioned in Article 216 and 217 of the Constitution, the CRA developed and recommended the third basis for horizontal division of revenue among the county governments the revenue sharing formula was approved by the parliament in September 2020, on condition that its implementation shall be preceded by a Ksh 53.5B increase in the Counties equitable revenue, depicting a 16.9 percent growth compared to allocations in 2020/21 fiscal year. The Division of Revenue Bill (DoRB), 2021 proposes to allocate to County Governments Ksh. 370 billion as their equitable revenue share, equivalent to a growth of Ksh 53.5 billion (or 16.9 percent) against FY 2020/21. This growth in County Governments’ equitable revenue share is arrived at by: 1) Adjusting the Counties’ FY 2020/21 allocation (i.e., Ksh. 316.5 billion) by Ksh 36.1 billion or 11.4 percent. This growth is derived from anticipated improvement in revenues raised nationally in FY 2021/22 when the effects of Covid-19 pandemic are expected to ease. The increase as determined in the FY 2021/22 fiscal framework, will facilitate Post Covid-19 economic recovery at the Counties as well as ensure sustained service delivery by the devolved governments; and, Nakuru County Fiscal Strategy Paper 2021 59 2) The National Government further proposes that four existing conditional allocations funded by the National government’s revenue share (Ksh 17.4B) be converted to unconditional allocations to form part of Counties equitable revenue share. They include; the road maintenance levy fund (RMLF); the grant to level-5 hospitals; the compensation for user fee foregone and rehabilitation of village polytechnics grants. The approved Third Basis formula is informed by the Fourth Schedule of the Constitution that distributes government functions between the two levels of government, and complies with the requirements of Article 203(1) of the Constitution. The formula takes into account weighted parameters for health, road, agriculture and population among others, as outlined below; Table 9: Parameter for Revenue Allocation Objective Parameter Indicator of Assigned Expenditure Need weight To enhance Service Health Health Index 17% delivery Agriculture Agricultural Index 10% Population Population Index 18% Urban Urban Index 5% Basic Share Basic Share Index 20% Land Area Land Area Index 8% Rural Access Road Index 8% Poverty Poverty Index 14% TOTAL 100% Source: CRA 2020 In accordance with the approved third basis formula, Nakuru County ranks second after Nairobi, on equitable share allocation (BPS 2021). Accordingly, the Counties will share an estimated Kshs 409.88 billion compared with Kshs 369.87 billion in the previous year. The projected transfer to each County in FY 2021/22 is shown in Table 3.2 below. Nakuru County Fiscal Strategy Paper 2021 60 These allocations will be firmed up in the Division of Revenue Act and County Allocation Revenue Act (CARA), upon approval by parliament. Nakuru County Fiscal Strategy Paper 2021 61 Table 10: Allocation of funds to County Governments Source: BPS 2021 Nakuru County Fiscal Strategy Paper 2021 62 The Kshs 409.88B allocation to County Governments constitutes of Kshs 370B equitable share which is inclusive of Ksh 17.4B of the four proposed unconditional grants, Conditional grants amounting to 32.3B, and Supplement for construction of county Headquarters amounting to 332M. Out of the 409.88B allocation, Nakuru County Government’s allocation stands at Ksh 13.998 Billion. Each conditional allocation is distributed according to its objectives, criteria for selecting beneficiary counties and distribution formula. In the FY 2020/21 allocations to Counties stood at Kshs 316.5B compared to 1.53T to the National Government as equitable share. i. Allocation on Equitable Share Nakuru County will receive an equitable share of Kshs 13.026B, comprising of Ksh 12.2B net equitable share, and an amount of Ksh 769.4M for the four unconditional grants. The equitable share of Ksh 12.2B compared to Ksh 10.476B in the current FY 2020/21, represents a Ksh 1.724M increment translating to a 16.5% percent increase. The four grants highlighted above include: the road maintenance levy fund (RMLF); the grant to PGH level-5 hospital; the compensation for user fees foregone and rehabilitation of village polytechnics grants. ii. Allocation for Leasing of Medical Equipment of Kshs. 153,297,872 The grant was intended to facilitate the leasing of modern specialized medical equipment in at least two health facilities in each County over the medium term. The objective is to facilitate easy access to specialized health care services and significantly reduce the distance that Citizens travel in search of such services. This grant is managed by the National Government on behalf of the County Governments. The FY 2021/22 allocation depicts a 16% increase from the previous year allocation. Nakuru County Fiscal Strategy Paper 2021 63 iii. Loans and Grants amounting to Kshs. 819,285,259 The County will receive the aforementioned amount representing proceeds from external loans and grants, for various programmes under health, urban development and the Agriculture sector. They include NARIG, ASDSP, DANINDA, and THS. Final allocation details for these grants will be directed by the County Allocation Revenue Act 2021.  The National Agricultural and Rural Inclusive Growth project (NARIG-P) The Project Development objective for the NARIG-P is to increase agricultural productivity and profitability of targeted rural communities in selected counties, and in the event of an eligible crisis or emergency, to provide immediate and effective response. The project has four components: Supporting Community Driven Development; Strengthening Producer Organizations and Value Chain Development; Supporting County Community-Led Development; Project Coordination and Management.  Agriculture Sector Development Support Programme (ASDSP) The project objective is to support actors along prioritised value chains, strengthening capacity for commercialisation, sustainability, climate change resilience, and inclusion of vulnerable people, especially women and youth. The programme has three components which include: Development of a transparent system for improved agricultural sector coordination and harmonisation and an enabling policy and institutional environment for the realisation of the ASDS; Strengthening of environmental resilience and social inclusion of value chains; and Promotion of viable and equitable commercialisation of the agricultural sector through value chain development. Nakuru County Fiscal Strategy Paper 2021 64  Others- World Bank’s (KUSP) and KDSP Kenya Urban Support Programme -The County signed a participation agreement to opt-in the KUSP programme funded by World Bank. The objective of the KUSP was to support the establishment and strengthening of urban institutions and systems to deliver improved infrastructure and services in participating counties. The implementation period for this programme lapses in the current financial year. The World Bank is currently undertaking an end-term review of the programme to inform future recommendations. Kenya Devolution Support Programme – the implementation period for the programme is also in its final year, in both the recurrent and capital grants. An end-term was undertaken, to inform future actions by the financiers. Nakuru County Fiscal Strategy Paper 2021 65 IV. 2021/2022 BUDGET FRAMEWORK AND THE MEDIUM TERM FISCAL FRAMEWORK SUMMARY The 2021/2022-2023/2024 medium term expenditure framework will continue with fiscal consolidation strategy which is aimed at harnessing resources to the most productive areas and enhancing growth to areas majorly affected by COVID 19 pandemic. The fiscal framework will be based on the priorities as outlined in Medium Term Plan (III), the Big Four Agenda, the CIDP 2018-2022 and programmes geared towards Economic recovery from the COVID 19 pandemic. The County will continue to create more strategies to improve on Own Source Revenue for sustainability of development programmes/projects. The County will further engage the development partners through the External Resource Mobilization Directorate within the County Treasury to raise additional funding to bridge the gap in financing. The fiscal framework for FY 2021/2022 budget is based on the policy priorities outlined in chapter II. The County Government will promote budget transparency, accountability and effective financial management of resources based on clearly set priorities to ensure that budgets are directly linked to plans Revenue Projections The revenue projection for the FY 2021/2022 including own source revenue is approximately Kshs 17.453 billion which is an increment of 20 percent compared to the approved CFSP 2020 revenue forecast of Kshs 14.502 billion. The revenue comprises of equitable share projected at Kshs 12.256 billion in the Budget Policy Statement 2021 compared to Kshs 10.476 billion from the approved CARA 2020. This is a projected increase by 1.780 billion depicting a 17 percent rise. Loans and grant are projected to increase to Kshs. 1.742 billion from the current allocation of Kshs 1.228 billion depicting 42 percent increase. Own source revenue including FIF is projected to rise by 5.6 percent to 3.380 billion owing to the economic recovery strategies put in place by the County Nakuru County Fiscal Strategy Paper 2021 66 Government. Summary of the own source revenue forecast and national transfers over the medium term are presented in Annex I and Annex II of this document. The County Government will adopt measures geared towards improvement of revenue collection of own source revenues. This includes implementation of the Revenue Enhancement Strategy, adopt fully automated revenue system to seal revenue leakages, enactment of relevant laws that support revenue collection, external resource mobilization, review of the Finance Act, 2020 and recruitment of staff in Revenue Directorate to replace the aging staff. The allocation for the Kenya Urban Support Programme (KUSP) and Kenya Devolution Support Programme has not been confirmed in the BPS. However, continued decline in the infrastructural allocation to Nakuru Municipality and Naivasha Municipality will hamper progress of these entities since they are still in the formation stage. The allocation to the Counties through the equitable share and conditional grants will be firmed up in the County Allocation Revenue Act (CARA) 2021. Expenditure Projections The County Government will continue to pursue a balanced budget in the medium term thus the overall expenditure will equal the forecasted County receipts for the FY 2021/22. The total expenditure for the FY 2021/2022 will amount to Kshs 17.453 billion. Recurrent Expenditure In the FY2021/22 the total recurrent expenditure is estimated to be Kshs. 11.519 billion. This is an increase from the baseline approved budget for FY 2020/21 which is at Kshs. 10.482 billion. Personnel emoluments will account for 39.6 percent of the total budget which is approximately Kshs. 6.905 billion. This is above the recommended percentage of 35 percent of the total revenues as per section 25 of the PFM Regulations 2015. The increase in personnel emoluments is due to the Nakuru County Fiscal Strategy Paper 2021 67 annual increment, implementation of Phase IV of recommendations of Salaries and Remuneration Commission (SRC) recruitment of Health personnel to combat the COVID-19 pandemic. The operations and maintenance allocation will amount to Kshs. 4.613 billion representing 26.4 percent. Development Expenditure The County Government will endeavour to ensure that at least 30% of the total budget is allocated towards development as guided by the PFM Act 2012 and as outlined in this strategy paper. The County development expenditure for financial year 2021/22 projected to be at Kshs. 5.934 billion from Kshs. 4.350 billion in the CFSP FY2020/21. This accounts for 34 percent of the total budget. The Nakuru County Revenue Allocation Act, 2018, provides for an allocation not less than 45 percent excluding conditional grants towards Wards. The proposed allocation to the 55 Wards amounts to Kshs. 1.6 billion translating to 46.5 percent of the equitable share of development. The expenditure allocation are detailed in Annex III and V. Figure 8: Summary of County Expenditure COUNTY EXPENDITURE Total Development Gross 34% Total Recurrent Gross 66% Total Recurrent Gross Total Development Gross Nakuru County Fiscal Strategy Paper 2021 68 Deficit Financing Section 140 of the PFM, Act 2012 authorizes a County Executive Committee Member for the finance to borrow on behalf of the County Government. However, the Commission on Revenue Allocation in collaboration with World Bank initiated the County Creditworthiness Initiative (CCI). This initiative has only done the assessment for three Counties however this will be rolled out to other Counties. The report from this assessment will assist the County to access credit in accordance to Article 212 of the Constitution and Section 58 and 142 of the PFM Act, 2012 among other conditions. In the medium-term framework, the County will ensure its expenditure and commitments are based on the expected actual receipts. In the medium term, the County will embark on Public Private Partnership (PPP) and external resource mobilization to compliment the County Government efforts in implementation of critical programmes that will accelerate socio- economic development thus providing budget support. In line with the PFM Act 2012 borrowing can only be made to undertake development projects in line with the framework developed between the National and County Governments. In this regard the projected expenditure will be funded through own source revenues, transfers from National Government and approved conditional grants. Fiscal and Structural Reforms The County Government remains committed to improving efficiency and quality of its services. The County Government remains committed to improving efficiency and quality of its services. Public expenditure will be scrutinized including capital projects emanating from the 55 Wards in compliance with the provision of the Nakuru County Revenue Allocation Act of 2018 and to ensure value for money. The County will continue instituting strong internal controls to enhance expenditure tracking for corrective action thereon which will ensure effective and efficient execution of the budget. The County Treasury has launched a new revenue system that is at its early stages of implementation which Nakuru County Fiscal Strategy Paper 2021 69 has embraced full automation. Tax administration will be further strengthened to improve collection efficiency by recruitment of additional officer and operationalization of the new valuation roll. The County government will also identify and plug revenue leakages, improve compliance through tax code and broaden the tax base through mapping of revenue. The County Government will implement priority programmes/policies as outlined in the CIDP 2018-2022 to for economic growth and prosperity. During the plan period the County will give priority to programmes that are geared toward economic recovery for the sectors adversely affected by COVID 19 pandemic. The County reorganized its functions that saw the establishment of the Nakuru and Naivasha Municipalities. The two entities have been established as per the Urban and Cities Act, 2011 Amended 2019. The development funding for the two municipalities has been from the KUSP. Going forward the County government will need to review the Nakuru County Revenue Allocation Act, 2018. The Directorate of Disaster Management and Humanitarian Assistance has been created with a mandate of coordinating emergencies across the County. The reorganization will require extra funding to coordinate their mandates. The county will continue to implement the County Integrated Monitoring and Evaluation System (CIMES) through operationalization of the Integrated Monitoring and Evaluation system, continuous field work for all the development projects across the County to ascertain implementation status. The County will put in to consideration the recommendations of the Medium Term Review report once finalized. The County will undertake the preparation of the County Statistical Abstract that will provide baseline indicators in all sector for proper planning and decision making. This exercise will be undertaken in collaboration with the Kenya National Bureau of Statistics (KNBS). Nakuru County Fiscal Strategy Paper 2021 70 Overall Budget Financing The National Economy is still reeling on the effects of COVID-19 pandemic and the ensuing containment measures that have impacted negatively on the various sectors. In this case the National Government has adopted a cautious approach in revenue forecasting for the FY 2021/22 and in the medium term. The Fiscal policy over the medium-term aims at enhancing revenue mobilization and continuous fiscal consolidation plan to reduce budget deficit. The County government will replicate this approach aimed at improving on forecasting the Own Source Revenue. Budgetary allocation for FY 2021/22 and the Medium Term The budgetary allocation between the County Executive and the County Assembly is summarized in Table 4.1 below: Table 11: Summary of Budget Allocations Details Approved CFSP PROJECTION PROJECTION Estimates 2021/2022 2022/2023 2023/2024 2020/2021 County Executive and County 17,922,862,529 16,149,961,336 17,764,957,470 19,541,453,217 Public Service Board Nakuru & Naivasha Municipalities 827,210,209 203,081,235 223,389,359 245,728,294 County Assembly 1,254,408,526 1,100,000,000 1,210,000,000 1,331,000,000 Total 20,004,481,264 17,453,042,571 19,198,346,828 21,118,181,511 Source: County Treasury FY 2021/22 and Medium-Term Budget Priorities The paper aims at refocusing the medium-term development to achieve a prosperous and sustainable development. In order to achieve this, financial disciple will be adhered to. Going forward, and in view of limited resources, MTEF budgeting will entail adjusting non-priority expenditures to cater for the priority sectors. The approved County Integrated Development Plan (2018-2022), the Annual Development Plan (ADP) 2019/20 and the CIDP mid- term Review Report will guide development programmes. In the meantime, resource allocation will Nakuru County Fiscal Strategy Paper 2021 71 be based on strategic objectives outlined in this CFSP and programmes adopted by sector working groups. Overall, the medium-term budget framework will focus its spending on key priority sectors like Agriculture, Infrastructure & ICT, Education and Health, which will continue to receive adequate resources. By investing in these sectors, the County Government is working to reduce infrastructure gaps, improve food security, enhance access to universal health care and attain job creation as envisioned in the National Government’s Big Four Agenda. This will foster economic growth within the country. Both sectors (Roads and Health) are already receiving a significant share of resources in the budget and are required to utilize the allocated resources more efficiently to generate fiscal space to accommodate other strategic interventions in other sectors. In respect to the development agenda and economic interventions, resource allocation will be aligned to the County Government’s special focus areas including: I. Health: provision of universal health care is one the governments “Big Four Agenda”. The County has a responsibility to ensure its Citizens access quality and affordable health services. The County will roll out the UHC programme across the County and ensure that it is sustainable and the most vulnerable get access to health service. II. Infrastructure with the County Government’s commitment towards improving infrastructure countywide through the BORESHA BARABARA initiative. More resources will be allocated to this sector for the lease of equipment. This will go a long way to improve the physical infrastructure and road network therefore improving mobility. III. Agriculture, Livestock and Fisheries will receive an increasing share of resources to ensure sustainable development, combat the effects to climate change, boost agricultural productivity with a view to, promoting Nakuru County Fiscal Strategy Paper 2021 72 value addition and overcoming the threat to food security to compliment the Big Four Agenda being championed by the National Government. IV. Public Service and Good Governance-deepen good governance practices including public financial management reforms to guarantee transparency, accountability and efficiency in public spending. Have a good working relation with the non-state actor and ensure performance contracting/appraisal is implemented fully. V. Enhancing investment opportunities within the County- through robust investment campaign and measures including taxation and legislative and marketing Nakuru as a tourism destination of choice. Criteria for Resource Allocation According to Articles 201, 202 and 203 of the Constitution, revenue raised nationally is shared equitably among the two levels of governments and among county governments to enable them provide services and perform the functions assigned to them under the Fourth Schedule of the Constitution. The equitable division of revenue between the two levels of government takes into account the criteria specified in Article 203 of the Constitution. It is a requirement that, not less than 15 percent of all revenue collected by the national government be allocated to the county governments as sharable revenue. The County Governments’ equitable revenue share allocation for FY 2021/22 is based on the 3rd formula which was approved by Senate. The parameters of the third formula include uses 8 parameters namely; Health, Agriculture, population, Urban Services, Basic share, Land area, rural access and poverty head count). The equitable share as per the BPS 2021 is Kshs. 12.256 billion, Conditional grants of Kshs. 922.7 million and loans and grants of Kshs 819 million. The own source revenue is projected at Kshs. 1.980 billion and FIF of Kshs. 1.4 billion. The total resources available to the County amounts to Kshs. 13.997 billion. Nakuru County Fiscal Strategy Paper 2021 73 The following criteria will serve as a guide for allocating resources: i. Programmes that geared towards revamping of the economy specially sectors affected with the containment measures for COVID 19. ii. Linkage of the programmes with the objectives of the CIDP 2018-2022 Annual Development Plan 2021/2022 and Integrated Development Plans for Urban areas 2019-2023. iii. The programmes that addresses the core mandates of the respective County entities and geared towards achievement of the Governor’s Manifesto. iv. Ward project allocations in compliance with Section 4 NCRAA 2018 to support community-initiated projects for equitable development. v. Emphasis will be given to the on-going and multi-year projects to ensure completion and operationalization. vi. Priority will be given to paying outstanding pending bills/debts and maintain them at a sustainable level. Details of Sector Priorities This section provides the sector ceilings for the MTEF period 2021/2022-2023/24 ensuring continuity in resource allocation from the last financial year consistent with the MTEF budgeting approach. The ceilings include the strategic interventions, details of sector ceilings that will continue to be informed by programmes defined in the CIDP 2018-2022 and expected outputs. Table 4.2 below provides the projected baseline ceilings for the FY 2021/22 and the medium term per sector. Nakuru County Fiscal Strategy Paper 2021 74 Table 12: Medium Term Sector Ceilings 2021/22 - 2023/24 SECTOR APPROVED CFSP TOTAL PROJECTIONS % of Total Expenditure ESTIMATES FY CEILINGS 2020/2021 2021/2022 2022/2023 2023/2024 2021/2022 2022/2023 2023/2024 1 Agriculture Rural Sub Total 2,308,795,775 1,030,648,148 1,133,712,963 1,247,084,259 5.9% 5.9% 5.9% and Urban Recurrent Gross 676,555,697 703,007,282 773,308,010 850,638,811 6.1% 6.1% 6.1% Development Development Gross 1,632,240,078 327,640,866 360,404,952 396,445,448 5.5% 5.5% 5.5% 2 Education Sub Total 1,155,445,718 736,083,970 809,692,367 890,661,603 4.2% 4.2% 4.2% Recurrent Gross 466,163,766 590,486,695 649,535,364 714,488,901 3.4% 3.4% 3.4% Development Gross 689,281,952 145,597,275 160,157,002 176,172,702 0.8% 0.8% 0.8% 3 Social Protection, Sub Total 408,279,638 374,582,442 412,040,686 453,244,755 2.1% 2.1% 2.1% Culture and Recurrent Gross 241,225,042 259,941,705 285,935,875 314,529,463 1.5% 1.5% 1.5% Recreations Development Gross 167,054,597 114,640,737 126,104,811 138,715,292 0.7% 0.7% 0.7% 4 Energy, Sub Total 2,675,698,434 945,808,634 1,040,389,497 1,144,428,447 5.4% 5.4% 5.4% Infrastructure and Recurrent Gross 403,606,020 391,337,936 430,471,730 473,518,903 2.2% 2.2% 2.2% ICT Development Gross 2,272,092,414 554,470,697 609,917,767 670,909,544 3.2% 3.2% 3.2% 5 Environment Sub Total 1,404,784,151 476,657,542 524,323,296 576,755,625 2.7% 2.7% 2.7% Protection, Water Recurrent Gross 279,458,650 326,258,908 358,884,799 394,773,279 1.9% 1.9% 1.9% and Natural Development Gross 1,125,325,501 150,398,633 165,438,497 181,982,346 0.9% 0.9% 0.9% Resources 6 General Economics Sub Total 362,868,747 346,698,272 381,368,099 419,504,909 2.0% 2.0% 2.0% and Commercial Recurrent Gross 137,277,999 228,173,140 250,990,454 276,089,500 1.3% 1.3% 1.3% Affairs Development Gross 225,590,748 118,525,132 130,377,645 143,415,410 0.7% 0.7% 0.7% 7 Health Sub Total 6,822,878,221 6,699,927,086 7,369,919,794 8,106,911,774 38.4% 38.4% 38.4% Recurrent Gross 5,278,845,780 5,903,669,785 6,494,036,764 7,143,440,440 33.8% 33.8% 33.8% Development Gross 1,544,032,440 796,257,301 875,883,031 963,471,334 4.6% 4.6% 4.6% 8 Public Sub Total 4,865,730,580 6,842,636,479 7,526,900,127 8,279,590,139 39.2% 39.2% 39.2% Administration and Recurrent Gross 2,998,915,737 3,116,132,645 3,427,745,910 3,770,520,501 17.9% 17.9% 17.9% National/ Inter Development Gross 1,866,814,843 3,726,503,834 4,099,154,217 4,509,069,639 21.4% 21.4% 21.4% County Relations TOTAL Total Recurrent Gross 10,482,048,690 11,519,008,097 12,670,908,907 13,937,999,797 66.0% 66.0% 66.0% Total Development 9,522,432,574 5,934,034,474 6,527,437,922 7,180,181,714 34.0% 34.0% 34.0% Gross GRAND TOTAL 20,004,481,264 17,453,042,571 19,198,346,828 21,118,181,511 100.0% 100.0% 100.0% Nakuru County Fiscal Strategy Paper 2021 75 Agriculture, Rural and Urban Development Sector The Agriculture, Rural and Urban Development (ARUD) Sector has two Sub Sectors namely; Agriculture, Livestock and Fisheries, and Land, Housing and Physical Planning. The Sector is among the drivers of the socioeconomic development growth of the Country. The Sector plays vital role in the development agenda through food and nutrition security enhancement, income generation and wealth creation, land management and tenure security by implementation of land policies, undertaking physical planning, land surveys and mapping. Agriculture, Livestock and Fisheries Sub Sector The Agriculture, Livestock and Fisheries Sub Sector is comprised of Agriculture, Livestock, Veterinary Services and Fisheries Directorates. The Subsectors’ vision is a food secure, industrialized and wealthy County. Its mission is to offer client- oriented extension services, promote commercialized and sustainable Agriculture, Livestock and Fisheries industry for food security and wealth creation. The sub sector contributes indirectly to economic growth through cross linkages with other sectors. During the 2016/17-2018/19 Medium Term period, the sub sector implemented programmes and sub programs as outlined in the County Integrated Development Plan (CIDP) that include; Administration, Planning and Support Services; Livestock Resources Management and Development; Fisheries Management and Development and Crop Development and Management. The key achievement in the Subsector for the said period include; A total of 13,020,900 Pyrethrum seedlings worth over Ksh. 41M supplied to over 2,360 farmers covering 590 acres of land. Distributed to over 18,500 farmers, 376,875 Avocado seedlings covering over 4500 acres across the county and 14,000 macadamia seedlings to 700 farmers in Njoro, Bahati, Molo, Kuresoi North, Subukia, Gilgil and Rongai sub counties covering about 170 acres. Distributed about 65,000 coffee seedlings valued at Ksh. 4.9 million to farmers. The Sub Sector procured and installed five greenhouses, initiated construction/completion of Tea Nakuru County Fiscal Strategy Paper 2021 76 Buying centers in the Tea growing sub-counties. Established 35 plant clinics to aid in plant protection services. Procured 300 PPEs, a vehicle mounted sprayer, 7 motorized sprayers, 20 GPS devices to enhance early warning and preparedness in crop protection. Annually the sub sector organized and participated in nine exhibitions, one World Food Day, and 37 field days in collaboration with other stakeholders and partners. Over 300,000 farmers were reached through various extension approaches. 28 crop inspectors were appointed to enforce the new crop (Irish potato) regulations 2019. Over 2400 soil samples were analyzed for farmers and provided with recommendations on soil fertility improvement across the county. The Subsector purchased and distributed 11 milk coolers, 4 incubators, grass cutting equipment and a solar milk cooler to support dairy farming. Vaccinations were carried out in all sub counties against common notifiable diseases of cattle, sheep, goats, dogs and cats. Total of 1,057,093 vaccinations were done. 21 AI kits were distributed to active Dairy Cooperatives. 93 beehives and other bee equipment have also been distributed. 100 beef breeding stock and 130 breeding stock for sheep procured and distributed to groups. 10000 fertilized eggs for incubation and 54 incubators, 90 breeding dairy goats procured and distributed. Procured and installed 30 fish pond liners, stocking of 191,666 fish fingerlings, restocking of public dams with 150,000 tilapia and 3,343 catfish fingerlings. The Subsector is also implementing NARIGP and ASDSP II projects that support Potato, Dairy, Apiculture, Poultry, Pyrethrum and Fish value chains. Through NARIGP, 583 micro-projects in 20 project implementing wards have been approved and supported while through ASDSP the department has prepared strategic integrated value chain action plan (SIVCAP) for fish, cow milk and pyrethrum value chains, extended and innovation concepts have been developed. In the MTEF period 2021/22-2023/24 the sub sector has prioritized programmes and sub- programmes projects as outlined in the MTP II, Kenya Vision 2030, the Big four Agenda, CIDP 2018-2022 and also the Governor’s Manifesto flagship Nakuru County Fiscal Strategy Paper 2021 77 projects/interventions in order to facilitate attainment of food security, sustainable management and utilization of land and development of fisheries in the county. The Sub sector will strive to increase its efforts including mobilizing of resources and looking for more partnership in order to achieve its goal of food security being part of the big four agenda that aims at ensuring the country is a food secure nation. These efforts will be championed through reaching more farmers in terms of extension services. The Sub Sector will also ensure the new crop (Irish potato) regulations 2019 will be enforced to enable farmers get maximum benefit derived from the crop. The County will also double the focus on large scale production enhancement as well as trying as much as possible to reducing the cost of production of farm products. High quality seeds availability to farmers will ensure high yield hence increased food production. The sub sector will continue increasing field and grain store surveillance, establishing more cold stores like potato cold stores and creation of awareness on various modern technological ways of food storages for either processed or raw to ensure minimal or no post-harvest losses. Fisheries development has experience tremendous growth which can be attributed to sub sectors commitment and efforts done through stocking fish fingerlings, restocking of public dams and installation of fish pond liners across the county. To ensure more growth and improved fish productivity from fish farming, the Sub Sector will continue scaling up the establishment of fish markets, fish processing facilities and fish safety assurance. Livestock production is a major economic activity practice largely within the county, the sub sector will strive at improving breeding services, provide efficient animal health services with regard to prevention, control and eradication of animal diseases, enhance a county-wide livestock vaccination against the common diseases both livestock and poultry keeping as well as increasing the number of AI kits in the County to improve on productivity. Increased establishment of cooling plants, distribution of pasteurizers, development of Nakuru County Fiscal Strategy Paper 2021 78 marketing networks, will ensure proper facilitation of means of creating wealth through livestock products. The Sub Sector will increase focus on value addition by conducting training. In order to implement the prioritized programs, the sub sector has been allocated Kshs. 769,233,695 million, Kshs 846,157,065 million, and Kshs 930,772,771 million, for the FY 2021/22, FY 2022/23, FY2023/24 respectively. Land Housing and Physical Planning The Land, Housing and Physical planning Sub Sector has the following two Directorates, Land and Physical Planning; and Housing. Its vision is a secure and diversified human settlements. Its mission facilitates participatory planning, affordable housing and sustainable development of rural and urban areas. Some of the major achievements by the sub sector in the last MTEF period include Finalization of Nakuru Municipality elevation to city status report, Municipal Charters prepared and approved by the County Assembly, Municipal board members for Both Naivasha and Nakuru were successfully appointed and the boards are operational, and training of 25 surveyors and planners Officers. Valuation roll for the County was completed and is awaiting approval by the assembly, Preparation of Nakuru County Spatial Plan is at 95% completion, Preparation of Land Information Management System at 90% completion. Planning and Development of Trading Centers which is at 20% completion. Successful resolution of Land dispute through the Alternative Dispute Resolution (ADR). Secured 27 titles for public utilities and facilitated the issuance of 65,000 titles in collaboration with the National Government. Successful completion of physical development plans and surveys for Kongasis, Crater lake, Keringet, Kasarani, Eastleigh and Tarambete. The Sub Sector completed a feasibility study for Naivasha affordable housing project which was approved by the cabinet with a potential of providing 2,400 housing units, managed to renovate various estates namely; Flamingo, Naivasha, Kimathi, Paul Machanga, Moi, Baharini, Nakuru Press Nakuru County Fiscal Strategy Paper 2021 79 and Kaloleni. Upgrading of sewer lines and rehabilitation of toilets was achieved under housing infrastructure sub-programme. The Sub Sector in collaboration with World Bank under Kenya Urban Support Programme undertook four major projects which are currently at various stages of implementation. These are: Improvement of roads to bitumen standards and storm drainage works within Naivasha Municipality (Viwandani ward, Industrial Area, Site & Service and Kabati), Construction of 3.6 km storm water drainage within Nakuru Municipality, Construction of Nakuru CBD Fire Station in Nakuru Town in Biashara Ward of Nakuru East Sub County and Partial Construction of Naivasha Market in Viwandani Ward. For the 2021/22-2023/24 MTEF period, the sub sector will prioritize its programs in order to ensure optimal utilization of resources as well as adequate spatial planning of the County in a sustainable manner and ensure development of housing in the most affordable and sustainable methods. The sub sector expects, finalization and approval of the County Spatial Plan, finalize on Land Information System, regular maintenance of approximately 300 County estates annually, and prepare an Integrated Strategic Urban Development Plans for Molo, Keringet, Njoro and Gilgil to ensure proper management of the towns. With the approval of affordable housing feasibility study, the sub sectors aims at undertaking the construction through public private partnership and support of donors as it advocate for developing alternative building technology centers within the County. To achieve these priorities, the sub sector has been allocated Kshs 261,414,453 million, Kshs 287,555,898 million, and Kshs 316,311,488 million, for the FY 2021/22, FY 2022/23, FY 2023/24 respectively. In the FY 2020/21 Kshs 147,576,704 million has been allocated for recurrent and Kshs 113,837,748 has been allocated for development expenditure. Nakuru County Fiscal Strategy Paper 2021 80 Environment Protection, Water and Natural Resources The sector is comprised of the Department of Water, Environment, Energy and Natural Resources. The vision of the sector is to have a self-reliant, secure and quality life. The mission is to conserve environment, provide potable water and sustainable energy. The sector’s mandate includes greening and beautification, natural resource management, pollution control and sewerage services policy. The sector also undertakes promotion of alternative green energy solutions and climate change mitigation and adaptation. Through sustainable exploitation, utilization and management of its natural resources, the sector ensures sustainable development in the County. The sector plays a significant role in the attainment of the targeted annual GDP growth rate of 10% in the Kenya Vision 2030. The key achievement during the 2017/18-2019/20 MTEF period, include the adoption of the Integrated Solid Waste Management Approach Model, guided by the four strategy goals namely: Protection of public health, Reduction of poverty, Reduction of waste management cost and Protection of the environment. The procured 5 Waste skips and 2 skip loader trucks has enhanced waste collection and disposal thus improved aesthetics status of our urban areas, and reduction of waste going to our disposal sites. Capacity building of county government staff and engagement of casual workers, enhanced enforcement and compliance monitoring, Continuous disposal sites management and finally rigorous Environmental Education and awareness. The sector through policy formulation established County Clean Energy Action Plan, Waste management Bill and Policy 2018, County Climate Change Action Plan 2018-2022 and Climate Change policy which is awaiting enactment. The sector managed to plant more than 357,000 trees of various species under climate change mitigation and rehabilitated County parks i.e., Nyayo garden, Naivasha Municipal Park as well as beautifying our urban areas roundabouts, open spaces, road medians, and open spaces especially in Nakuru and Naivasha Nakuru County Fiscal Strategy Paper 2021 81 in collaboration with various partners. The sector executed her mandate with regard to noise and excessive vibrations pollution control and the sector also ensured compliance and continuous monitoring. Several compliance achievements were realised including statutory notices issued and complied with and court cases prosecuted. In an effort to increase access to water, the sector managed to drilled 32 borehole, rehabilitated 157 existing water supply systems, desilted 4 dams/water pans and developed 3 springs. For the next 2021/22-2023/24 MTEF period, the sector will continue executing her mandates and has prioritized on solarization of water boreholes, desilting of dams, completion of Nyayo gardens and Naivasha Municipal Park rehabilitation, enhance climate change mitigation and adaptation, purchase of skip loader trucks and 6 skips, purchase of greening and beautification equipment and machineries, and construction of access road, eco toilet and office at Naivasha dumpsite, solid waste management in all markets within the County. Through the established Enforcement and compliance unit at the Environment headquarters, the sector will also ensuring water, air, land and other nuisances monitoring. The sector will continue providing good policy and legal frameworks to ensure proper conservation and management of the environment hence facilitate prudent management of the natural resources within the county in a conducive environment. The sector has been allocated Kshs 476,657,542 million, Kshs 524,323,296 million, and Kshs 576,755,625 million, for the FY 2021/22, FY 2022/23, and FY2023/24 respectively, in ordered to implement its priorities in the said MTEF period. Nakuru County Fiscal Strategy Paper 2021 82 Energy, Infrastructure and Information, Communication and Technology Sector The Energy Infrastructure and Information, Communication and Technology Sector, is comprised of two subsectors namely; Roads, Public Works and Transport sub sector and ICT & E-Government sub sector. The sector is among the key driver of sustainable economic growth majorly through establishing of accessible road networks for ease mobility of goods and with the coming up of new inventions and technology, the sector strives to ensure that the county is not left behind as many things go digital. The ICT sub-sector’s mandate is to promote e-Government services, provide ICT services to other county departments, enhance ICT training and standards, promote public communication and dissemination of public information as well as provide public relations services. Roads, Public Works and Transport sub sector aims to ensure proper infrastructure development and maintenance, storm water management, effective management of county non- residential buildings, street lighting management and firefighting disaster management During the 2017/18-2019/20 MTEF period the sector managed to improve transport infrastructure by grading and graveling of existing roads and opening up new roads using county machinery. The subsector developed a number of policies geared towards improving its service delivery and facilitating its operations. Some of the policies developed include; LED Lighting policy, Solar Lighting (Green energy) policy, Firefighting & disaster management policy and Nakuru Town road safety policy. The Roads, Public Works and Transport sub sector ensured grading of 3465 Km and gravelling of 863Km and tarmacking of 7.0 Km through KUSP and KRB. The Sub Sector also constructed 28 motorcycle sheds, 2 Bus parks and rehabilitated selected transport terminals, constructed 40 motorable bridges, rehabilitated 2889 streetlights and installed 100 new ones. The directorate of disaster management was able to respond and attended to over 700 emergency calls, trained 40 personnel on fire response and disaster management, constructed two Nakuru County Fiscal Strategy Paper 2021 83 fire station which are due for completion and managed to inspect over 500 premises as well as issue compliance certificate. The key achievements of the ICT and E-Government sub-sector in the period under review include the setting up of various infrastructural projects such as establishment of Local Area Networks in several sites, internet connectivity at the county headquarters and various departments, establishment of five (5) digital centres at Subukia, Kuresoi south, Shabab, Menengai and Rongai, establishment of data centre (Phase I), establishment of Wide Area Network and installation of free Wi-Fi at Naivasha bus park, Molo market, Gilgil town and Kabazi market. The County recognizes Energy, Infrastructure and ICT sector as a key enabler for sustained development and poverty reduction. The sector, during the 2021/22- 2023/24 MTEF period, aims at sustaining and expanding physical infrastructure to support a rapidly growing economy in Nakuru County. Roads and Transport sub sector intends to Grade 6200 Km, Gravel 1370Kms of roads access, install 390 streetlights as well as rehabilitate 1900, construct 4 fire-stations and 47 motorable foot bridges, a high-capacity underground storage tank and acquire two fire engines for disaster management. The department will lease equipment that will be used in the sub-counties for improvement and expansion of road network. Public works department will ensure that county government buildings under construction adhere to stipulated government regulations, standards and set specifications. The disaster management department will ensure that staff are trained on management of disasters and possible mitigation before they happen and concurrently carry out inspections and issue out compliance certificates. The equipping and modernization of the Fire and Disaster sections will be undertaken during this period. ICT and E-government sub sector will also undertake Infrastructural development, public digital empowerment through establishment of digital centers and enhancement of e-Government services as its main area of focus. Further the department in collaboration with the National Department of ICT will spearhead the training on “Ajira Programme” for the youth. Nakuru County Fiscal Strategy Paper 2021 84 The sector has been allocated Kshs 945,808,634 million, Kshs 1,040,389,497 billion, and Kshs 1,144,428,447 billion, for the FY 2021/22, FY 2022/23, and FY2023/24 respectively, in ordered to implement its priorities. Education Sector The Sector is committed to the provision of quality education, vocational training, research and skills development for the youth, in order to contribute to meaningful engagement of the youth and entrepreneurial orientation for self- employment. The Sector is comprised of two Sub Sectors namely Early Childhood Education and Vocational Training. During the 2017/18 – 2019/20 MTEF period, the Sector made several achievements including facilitating the rolling out of bursaries worth Ksh. 424,502,513 benefiting 86,948 needy students both in secondary and tertiary institutions across all the 55 wards. It also constructed 384 ECDE classrooms increasing facilities towards enhancing early childhood learning within the county. Language activity books were procured and distributed to all public ECDE centres while environmental activity and mathematics books were procured awaiting for distribution to schools which were closed as a result of COVID-19 pandemic. It also procured age-appropriate furniture worth Ksh 30 million to benefit 450 ECDE centres and 10 800 learners. The Sector through the directorate of Vocational Training recruited 110 instructors, construction of 5 Vocational Training Centres spread across the county, construction of 2 Administration Blocks in Chemare and Molo VTC’s, put up a boys hostel at Dundori VTC at the same period the directorate procured tools and equipment worth Ksh 20 million benefiting 26 VTCs spread across the county. The gross transition rate for the period under review was 87%. The directorate provided 600 attachment places and supervision to trainees. It was also able to hold four (4) sensitization sessions across the County to popularize the Vocational training and the programmes offered. The Sector disbursed Kshs.91,033,250 to 3319 trainees as subsidized Vocational Training Centres support Nakuru County Fiscal Strategy Paper 2021 85 grant to 26 qualifying Vocational Training Centres. The transition rate for the period under review was 45.8% In the MTEF period FY2021/22 – 2023/24, the Sector has prioritized several programmes for implementation including equipping of 495 ECD classrooms, rehabilitation of 60 classrooms, equip 75 ECDs with outdoor equipment, increase the number of ECDs participating in co-curricular activities to 2817, conduct 132 workshops for capacity building, employ 1050 ECD teachers, increase number of schools benefiting from instructional materials to 3,042, induct 10,400 teachers on new curriculum, equip 275 ECD schools with ICT facilities, increase number of ECD Centres under school feeding programmes to 3,042, support needy students to a tune of Ksh 360m under bursaries programme, equip 106 VTCs, support 4965 trainees and attaches on exit programmes, recruit 180 trainers for quality service delivery, ensure at least 106 VTCs participate in co- curricular activities. The Sector is in the process of procuring ECDE teacher handbook to all public ECDE centers and will also construct 6 County Vocational Centres of Excellence and 2 County model Polytechnics. In order to implement the prioritized programmes, the Sector has been allocated Kshs 736,083,970 million, Kshs 809,692,367 million and Kshs 890,661,603 million for the FY 2021/2022, FY 2022/2023 and FY 2023/2024, respectively. General Economic and Commerce Affairs Sector The General Economic and Commerce Affairs Sector is mandated to promote, co-ordinate and implement integrated socio-economic policies and programmes for a rapidly industrializing economy. The Sector is made up of Trade, Industrialization, Tourism and Cooperatives Department. During the 2017/18 - 2019/20 MTEF, the sector undertook 5 trade exhibitions, rehabilitated 10 markets, trained 314 SME’s on business skills and issued compliance certificates to 720 traders for their weighing and measuring equipment. Cooperative directorate carried out 179 Trainings were done for Nakuru County Fiscal Strategy Paper 2021 86 Cooperative leaders, managers and members and did 127 cooperative certification audits. The tourism directorate carried out activation of three (3) Tourism sites and held two (2) major tourism promotion events. The Alcoholic Drinks Control directorate carried out two (2) sub county Alcohol Drinks committees training and held sensitization forum in the 11 sub counties. In the MTEF period FY 2021/21-2023/24 the directorate of trade will work towards rehabilitation of fifteen (15) markets and construction six (6) new market, carry out MSMEs training, hold four (4) Trade Exhibition annually and undertake consumer Protection through Verification of Weighing of Measuring instruments. The Cooperative Directorate will rehabilitate two (2) Cooperative Coffee Factory, Support Dairy Cooperatives with Value Addition Equipment, capacity build Cooperatives, carry out spot checks and audits. The Tourism directorate will promote tourism by holding two (2) annual events and activating nine (9) tourist sites. The Alcohol Drinks Control Directorate will construct three (3) rehabilitation centres annually, hold sensitization Forums for Liquor Stakeholders and the various Liquor Committees in sub counties while the County Bus terminus directorate will construct six (6) bus termini and rehabilitate twenty three (23) bus termini. In order to implement the prioritized programmes, the Sector has been allocated Kshs 346,698,272 million, Kshs 381,368,099 million and Kshs 419,504,909 million in the FY 2021/22, FY 2022/23 and FY 2023/24 respectively. Health Sector The Department of Health is the largest devolved unit in Nakuru County with a budgetary allocation of 38.4% of the entire county budget for FY2020/21 with functions including; Health facilities and pharmacies, Ambulance services, promotion of primary health care, licensing and control of undertakings that sell food to public, cemeteries, funeral parlours and crematorium. The sector comprises of two divisions namely; Medical Services (Curative and Rehabilitative services) and Public Health and Sanitation (Promotive and Nakuru County Fiscal Strategy Paper 2021 87 Preventive services), with a vision of A Healthy County and a mission to provide integrated quality health services for all. The positioned of the county requires proper planning for health service provision to serve the ever-increasing population in the county. In order to address health needs of its population, the sector developed and launched a Health strategic plan and is implementing the second County Health Strategic and Investment Plan 2018-2022 which addresses unique needs of all cohorts. This is in line with the Governor’s manifesto, the national Big Four Agenda, Kenya Health Policy Framework 2013-2030, Vision 2030 and international obligations such as Sustainable Development Goals. During the period under review 2017/18-2019/20, 12 health workers were promoted, adopted the Integrated Human Resources Information System (IHRIS) in order to optimize HR management. The sector also conducted an ICT survey and has already received the ICT EHR equipment for PGH& Molo. The county introduced a rewarding system for best performing workers, in the county as part of motivational strategy. The sector is mandated to collect facility improvement fund (FIF), where it collected a significant increase of Ksh 597,511,764. Ksh 957,022,225 and Ksh 1,085,902,883.65 respectively. The sector employed 23 doctors and consultants, 324 health workers on contract, recruited 98 universal health coverage (UHC) staff and 68 interns. Latrine coverage increased to 90% and ODF villages to 441. The department also developed the Nakuru County Sanitation Strategic and Investment Plan 2017- 2022, aimed at addressing the big burden of sanitation related diseases. The PMTCT Business Plan was also finalized aimed at sustaining the gains made in addressing the HIV scourge while HIV pregnant mother received ARVs. Through partner support, the department started programs to address the rising burden of Non-Communicable Diseases. Preventive/Promotive - 43% of the households were reached with health messages in order to reverse the downward trend of health indicators, 85% of children below one year were fully immunized in the last year financial year. The sector also created 135 new community units Nakuru County Fiscal Strategy Paper 2021 88 in order to enhance community health services. A diabetes Centre of Excellence was established at the County Referral Hospital with over 9781 patients accessing specialized services in the period under review. The County managed to procure drugs and health commodities which were distributed to various public health facilities The sector managed to expand key service areas including expansion of oncology services with upcoming radiotherapy unit at the County referral Hospital and also benefited from the Managed Equipment Service (MES) Project in three Hospitals- Nakuru, Naivasha, and Molo which greatly improved access to quality diagnostic and curative services. Increase of cervical cancer screening and operationalizing of Oncology and diabetic centers was done. In addition, the sector developed a laboratory strategic plan 2018/2022 to guide quality in laboratory diagnosis as a result of which two have achieved laboratory accreditation (Naivasha and Bahati SCHs). There is also major construction of outpatient block in PGH Nakuru and Naivasha, Maternity wings in Elburgon, Njoro, Molo and Gilgil. X-ray department have also benefit from a picture archiving and communication system, which supports digital archiving, swift retrieval of medical images and online transmission of images. This machine has been installed in PGH Nakuru. 21 Health care workers have been trained and assessment done on the imagine equipment to prevent future breakdowns. Going forward to the 2021/22-2023/24 MTEF period, the sector will ensure that accessible and affordable healthcare is provided to the County residents. Automation of health Medical /Records, HMIS and use of IT innovations will be an enabler of quality health service provision. A central ambulance dispatch center and fleet management system will also be strengthened to improve evacuations and pre hospital care. The ambulances will be strategically placed for ease of patients’ referral to major hospitals for further management. Proper planning with standard drawings, plans and facility master plans will be developed to guide development projects. The department will continue adopting the WHO standards of a health facility within 5 km radius to improve Nakuru County Fiscal Strategy Paper 2021 89 access towards Universal Health Coverage. A major infrastructural upgrading program targeting county referral hospital (PGH), Naivasha, Gilgil, Molo, Olenguruone, Elburgon, Njoro and Bahati hospitals are among these facilities. Preventive and Promotive health services will be a priority to address the over 80% of the sanitation related disease burden. To address the rising burden of NCDs, specialized services such as comprehensive oncology services, imaging and specialized clinics and theatres, renal units among others will be established and strengthened in major hospitals. These will include Oncology, Renal, Imaging and specialized theatres. Partner coordination and resource mobilization will also be enhanced to bridge the budgetary gaps and enhance efficiency and accountability. Strategic partnerships with University Medical Schools and other training institutions will be sort to develop and attract skills needed to this end. In order to strengthen dental services in the county, the department will operationalize dental services in 5 level 4 facilities that is; Subukia, Olenguruone, Njoro, Langalanga and Molo hospitals. Further the County has recruited approximately 46000 households to the Universal Health Care coverage in collaboration with the National Hospital Insurance Cover. This programme will continue to be implemented in the medium term. To achieve these priorities and ensure a healthy county the Sector has been allocated Kshs 6,699,927,086 billion, Kshs 7,369,919,794 billion, and Kshs 8,106,911,774 billion, for the FY 2021/22, FY 2022/23, FY 2023/24 respectively. In the FY 2020/21 Kshs 5,903,669,785 billion has been allocated for recurrent and Kshs 796,257,301 million has been allocated for development expenditure. Social Protection, Culture and Recreation Sector The Sector is mandated to promote sustainable employment, best labour practices, sports, gender equity, empowerment of communities and vulnerable groups, diverse cultures, heritage and arts. Nakuru County Fiscal Strategy Paper 2021 90 During the FY2017/18 – 2019/20 MTEF period, the key achievements in the Sector included: Culture Directorate was able to organize cultural festivals at both national and regional levels, train adjudicators and facilitators, Formed/launched Bahati and Njoro GBV clusters – totalling to 9 GBV clusters, involvement. The establishment and signing MoU with Kenya Museum, Gender policy formulation on progress and is being undertaken by the Sector in partnership with the Centre for Enhancement of Democracy and Good Governance, Women empowerment programmes conducted in four (4) sub counties. Capacity building conducted for the performing of visual arts, marking of national and international days, cultural festive and sports competitions. Projects completed included the levelling of sports grounds in Subukia Sub County, revamping of Kimathi grounds changing rooms as well as rehabilitation of Kamukunji stadium in Nakuru East. Purchase of land at Keringet for establishment of a Sports centre was finally completed, implementation Ward Sports through funding of sports teams and equipping of youths throughout Nakuru County with assorted items was also achieved in the period under review, the sector was also able to support PWDs during sports tournaments. Under social services several social halls including Bondeni Social hall, Gilgil, Shabab and Kayole social hall Naivasha were equipped with assorted items last financial year. Implementation of ward disability fund was achieved by signing of MOU with National Council of persons with Disabilities to facilitate expenditure of 27.5m, sensitization meetings on disability mainstreaming and procuring and distribution of mobility and assistive devices for distribution of needy PWDs throughout the county, Sensitization of over 200 families on HIV & AIDS which was achieved with public and private partnership, recruitment, registration of over 500 street boys & girls for the purpose of rehabilitation. Operationalization of youth directorate was a major plus for the department during F/Y 2019/20. In the 2021/22 – 2023/24 MTEF period, the Sector will implement various initiatives including: training at least 662 of Visual Artists, organize community cultural Nakuru County Fiscal Strategy Paper 2021 91 festivals and exhibitions, identification and mapping of new of heritage sites. The gender unit will strive to increase participation of women in leadership through sensitization and empowerment programmes, improve prevention and response to sexual and gender-based violence and continue with formation of GBV sub- county clusters. The sub sector will also carry out sensitization of the public on gambling and gaming activities, continue sensitizing PLWDs on AGPO, issue at least 6900 assistive / mobility devices, conduct capacity building sessions on care and support for the elderly. The sector will step up improvement of public amenities with construction and rehabilitation sports infrastructure including Afraha stadia to international standards Social Halls and rehabilitation programme centres. This will enhance participation in various sporting discipline, social and cultural activities. Mainstreaming and linkage opportunities will also be offered to the youth and encourage them to enrol to Vijabiz programme as well as engage in Agribusiness, environment and community service. In order to implement the prioritized programmes, the Sector has been allocated Kshs. 374,582,442 million, Kshs 412,040,686 million and Kshs 453,244,755 million for the FY 2021/2022, FY 2022/2023 and FY 2023/2024, respectively. Public Administration and National/International Relations Sector Public Administration and National/International Relations Sector is the largest sector in the county comprising of seven sub sectors namely; Office of the Governor & Deputy, Finance & Economic Planning, Public Service, Training and Devolution, County Public Service Board, Nakuru Municipality, Naivasha Municipality and County Assembly of Nakuru. The Sector plays an important role in the development and implementation of County policies and regulations, County’s governance and development. Nakuru County Fiscal Strategy Paper 2021 92 The Office of the Governor & Deputy Governor Sub Sector provides overall leadership and policy direction and resource mobilization, organization and accountability in a bid to enhance the provision of quality service delivery. The sub-sector ensures there is a conducive working environment and promotes positive mutual working relationships between the County Government and its internal and external stakeholders as well as promote peace and order within the County, promote democracy, good governance, unity and cohesion within the County. During the period under review, the sub sector realized most of planned programmes. There was a transition from the previous Executive to the newly elected County Executive. Also, appointment of the Cabinet, setting up of a second customer care desk, drawing up of a New Executive Order, holding of more than 10 Cabinet meetings with over 60 agendas being discussed. In the medium Term the sub sector will undertake the construction of Milimani Annex ensure that all the statutory documents are approved within the expected timelines. Coordinate peace and cohesion meeting within the County, hold at least 12 cabinet meetings and hold “meet the people tour” across all the sub- counties. The County Treasury as a subsector in compliance with the PFM Act 2012, the Subsector is expected to monitor, evaluate and oversee the management of public finances and economic affairs of the County Government. It coordinates the preparation of the annual budgets; guides and controls implementation of the same. Other obligations include; management of County public debt; mobilization of County financial resources for budget needs both locally and externally; preparation of financial statements as well as being the custodian of government assets; developing and implementing financial & economic policies in the County; providing leadership in the County in the acquisition and disposal of public assets. Nakuru County Fiscal Strategy Paper 2021 93 It also carried out capacity building of a number of officers in PFM including budget preparation, financial reporting, Planning, Promotional courses i.e Senior Management Course, Strategic Leadership Management Programme, Supervisory among others, recommended staff for promotion to enhance service delivery. The subsector also provided information through issuing nine treasury circulars and public notices on public participation in compliance with the Constitution of Kenya 2010. Collection of own source revenue including FIF was Kshs 2.28 billion, Ksh. 2.810 billion and Ksh.2.44 billion respectively. The revenue collection for the last financial year was greatly affected by the containement measures put in place to reduce the spread of COVID 19. The Directorate of Internal Audit undertook and prepared risk based and value for money audit reports which are credited for strenghthening intrenal control systems, operationalized the Audit Committee that stregnthen the internal audit functions. The Directorate of Finance prepared annual financial statements in compliance with the PFM Act 20102, during the period. Annual budget estimates through hyperion module were prepared and submitted to County Assembly within the stipulated time. Other budget documents prepared and submitted included the CBROP & CFSP 2018, 2019 and 2020. The sub-sector uploaded various statutory documents on the County’s official website. It was also during this period under review that the 2nd generation CIDP that will guide the County’s development process for the next 5 years was prepared and published and is in the process of MID Term Review of the CIDP 2018-2022. During the MTEF period 2021/22-2023/2024 the County treasury as a subsector will undertake the Construction of the County Treasury, carry out training for staff on the new revenue management system as well as other course, carry our 4 value for money audits, submit all the statutory documents with the timelines, carry out monitoring and evaluation of projects across the County, prepare the County statistical abstract, roll out County Project Integrated management System, carry out CIDP end term review and start the preparation of the CIDP 2023-2027. Nakuru County Fiscal Strategy Paper 2021 94 The Public Service Training and Devolution sub-sector trained 376 members of staff on various courses, concluded 256 court cases drafted 37 bills and forwarded to the County Assembly, where 31 bills have been passed into law. HRM policies and procedures manual 2016 from PSC was domesticated; additionally draft Training and Development manual and an organizational structure were developed and are awaiting approval from the NCPSB. During the period under review the department engaged PWC to conduct Human Resource Audit and the final report was submitted in August 2018.The department is currently implementing the recommendations of the report. Spearheaded Performance Management in effort to roll out performance contracting and performance appraisal system. Disaster and Humanitarian Assistance Unit responded to locust invasion in 11 sub counties, 3600 floods victims rescued, evacuated, resettled and food and non- food provided. The unit also responded to 140,000 families during the COVID 19 pandemic and 350 victims of fire were provided with consumable and non- consumable items. During the MTEF period 2021/2022-2023/24 the sub-sector will coordinate training courses for staffs, ensure insurance for all the staffs is paid, prepare and revise scheme of service for common cadre employees and carry out job evaluation of staff. The Nakuru County Public Service Board sub-sector during the 2017/18-2019/20 MTEF period, the new board was constituted and the Board recruited 637 officers on permanent basis while 774 were recruited on contract. Due to the outbreak of COVID-19 pandemic in the Country, the activities of the Board were temporarily interrupted for example the advertised positions in the Departments of Education and ICT & E- Government, Agriculture and Finance and Economic planning were rescheduled. Nakuru County Fiscal Strategy Paper 2021 95 In the 2021/22-2023/24 MTEF period, the CPSB Sub-sector’s, will continue to work towards enhancing service delivery by providing adequate office space for its members and the secretariat, through the renovation and refurbishment of additional offices and to enhance the security of its documents and assets through the installation of metal grills on office doors and windows, the Board will install bulk filing system for an efficient and effective storage of files and data, the Board in addition shall Develop Human Resource Management system that will enhance speedy receiving of Job applications, long listing, shortlisting of candidates, conducting on line interview. Similarly, the Board will continue to improve Human Resource productivity through staff and Board members trainings. As part of it mandate, the Board will also conduct recruitment as per departmental requests and continue to entrench national values and principles of governance among the county staff. The Board is also expected to develop its five years strategic plan. The Naivasha Municipal Board was formed as per the Urban and Cities Act, 2011. During the medium term the board managed to perform some of its objectives and this was due to budget constraints and also restrictions due to COVID-19 pandemic. The Sub Sector constructed one market, develop an Integrated Solid Waste Management Plan and also develop and adopted Integrated Development Plan, rehabilitated board offices and tarmacked 3.7Km road in the period under review. In the 2021/22-2023/24 MTEF period, the board intends to conduct 4 workshops that will ensure 8 members of the board, tarmac 10Kms of road, construct 9 parking lots, as well as rehabilitate 450 County housing estates. The Sub Sector will construct one modern fire station and install 15 fire hydrant and 55 streetlights and also procure and install 10 waste skip. Nakuru County Fiscal Strategy Paper 2021 96 Nakuru Municipal Board was constituted as per the Urban and Cities Act, 2011. The overall goal of the sub sector is to provide for efficient and accountable management of the affairs of the Municipality. The process of upgrading Nakuru Municipality to a City is before the senate having met the requirements stipulated in the Urban Areas and Cities Act 2011 amendment 2015 on the conditions for upgrade of a Municipality into a City Status. During the period under review, the Nakuru Municipal Board was constituted and has 9 Board Members and 11 members of staff who were transferred from line Departments to the Board to form its Secretariat under the stewardship of the Municipal Manager. The development undertaken by Nakuru Municipal Board is largely funded by the World Bank supported Kenya Urban Support Programme – Urban Development Grant. The Boards projects which were domiciled in the Department of Lands are currently being undertaken which include Construction of fire station at Nakuru Old Town Hall, Construction of a new stadium at the existing Afraha Stadium - Phase 1, Construction of new Nakuru CBD Bus Park -Phase 1 and Construction of 3.6km storm water drainage in Kiamurogi Mombasa & Kipkelion roads and purchase of 2 No fire Engines. In the next medium term 2021/2022-2023/2024, the Sub sector will work to ensure that it achieved the planned targets and effectively carry out its mandate as provided in the Municipal Charter. The board will improve on human resource productivity by recruiting 20 officers and training. It will also improve infrastructure by expanding 11Kms of pedestrian walk ways, tarmac 25Kms of road, complete construction of Afraha stadium and installed 150 litter bins.30000 of assorted trees will be planted in order to improve on greening and beautification. The Sub Sector will also seek partnerships with internal and external partners in order to seek for resources that will enable it achieve its objectives. The Board will continue Nakuru County Fiscal Strategy Paper 2021 97 to create an enabling environment for investment in the Municipality whilst laying the ground for elevation of Nakuru Town to City status. County Assembly County Governments are established under Chapter Eleven of the Constitution of Kenya 2010 and consisting of a County Assembly and a County Executive. The County Assembly of Nakuru is among the forty-seven (47) County Assemblies in Kenya established under Article 176 (1) of the Constitution. As envisaged by Article 177 (1), the Assembly consists of members elected by registered voters of the Wards, each Ward constituting a single member constituency. The Assembly further consists of a number of special seat members necessary to ensure that no more than two-thirds of the membership of the Assembly are of the same gender and the number of members of marginalized groups, including persons with disabilities and the youth all nominated by political parties in proportion to the seats received in that election in that County by each political party. The Speaker is the Head of the County Assembly. Nakuru County has a total of fifty-five (55) civic elective Wards each represented by a Member of County Assembly (MCA) at the Assembly. The Assembly has a total of seventy-eight (78) Members of which twenty-three (23) represent special interest groups. The Sub sector of County Assembly seeks to promote democratic and accountable exercise of power in Nakuru County through progressive legislation, faithful representation and effective public oversight. During the MTEF period 2017/18 - 2019/20, the Sector made considerable achievement of the set targets for the programmes during the period under review. These includes but not limited to: facilitated the operationalization of key legislation including the legal, policy and regulatory frameworks and conducted oversight on County oversight, enhanced representation of the citizens for improved service delivery. The construction of the Ugatuzi Plaza office block was Nakuru County Fiscal Strategy Paper 2021 98 completed and officially opened by H.E President Uhuru Kenyatta, phase II Office Block construction started and is ongoing, more than 80 motions debated, equipping and configuration of the chamber is complete, construction of a public gallery completed, refurbishment of the building is complete, construction of speakers House complete only landscaping remaining. During 2021/22 – 2023/24 MTEF period, the County Assembly intends to process order papers immediately upon receiving, County Assembly Board to recruit sixteen (16) employees and placed as per the existing vacancies, human resource department plans to conduct three (3) training sessions while Hansard Department will document all County Assembly proceeding at plenary and copies of Hansard published and posted online. In order to achieve its targets in the FY2020/21 – FY2022/23, the PAIR Sector has been allocated Kshs 6,842,636,479 billion, Kshs 7,526,900,127 billion and Kshs 8,279,590,139 billion for FY 2021/22, FY 2022/2023 and FY2023/2024 respectively. This includes allocation for the County Assembly Sub Sector. Public Participation/Sector Hearings and Involvement of Stakeholders The Public Finance Management Act 2012, the County Government Act 2012 and Article 201 of the Constitution of Kenya calls for openness, accountability and public participation in financial matters. The budget making process for financial year 2021/2022 started on August 2020 when the County Treasury issued a circular in accordance to Section 128 of the PFM Act, 2012 providing guidelines and procedures for preparing the 2021/22-2023/24 Medium term budget, launch the Sector Working Group on September 2020, finalized on 2020 CBROP in October 2020 and undertook all sectoral activities, meetings and engagement forums fully in the month of November and December 2020. Pursuant to section 117 of the PFM Act 2012 the County Treasury is obliged to take into account views of among others, the public and interested persons/groups in Nakuru County Fiscal Strategy Paper 2021 99 preparing the CFSP. The County in the process of preparing the CFSP 2021, organized public hearings on the County Sectoral budget proposals and recommendation for the 2021/2022-2023/2024 MTEF period. The Public participation took four days from 26th to 29th January, 2021 and due to COVID- 19, all protocols issued by the Ministry of Health on social distancing, wearing of face masks and sanitizing were strictly enforced and ensured full adherence. The purpose of the hearings was to provide an avenue where members of the public interrogated the County Sectoral performance in the previous 2017/18-2019/20 MTEF period and gave their input for the next financial year’s budget and MTEF period. All Sectors and Sub Sectors were well represented and were given an opportunity to make their presentation on their achievement for the previous years and also illustrate their plans for the next financial year. This gave the public a chance to evaluate its performance, give proposals for the next budget and also give recommendations on areas of improvement in all the Sectors. The County also made its submissions based on the Draft 2021 BPS with regard to strategic priorities, policy goals and proposed County allocations for the financial year 2021/2022 with reference to their impact on County Government of Nakuru planning and formulation, coordination and management of budget. Nakuru County Fiscal Strategy Paper 2021 100 V. CONCLUSION AND NEXT STEP The CFSP 2021 has set policies that are aimed at striking a balance on current happenings and the emerging issues. The outlined fiscal policies are in line with the national strategic objectives outlined in the BPS and the CIDP 2018-2022. The policies and sector ceilings annexed will give guidance to the sectors/Departments and County entities during finalization of the budget estimates for FY 2021/2022-2023/2024. The resources are limited therefore departments are advised to prioritise programmes/projects within the available resources and also aligned to the County Government’s priorities. The departments to give priority to the on-going projects to ensure the projects are completed and operationalized. Budget implementation plays a critical role in ensuring citizens gets the deserved services. In this regard the County will work together with other stakeholders, Civil society organizations, communities and development partners to ensure smooth implementation of the budget. Nakuru County Fiscal Strategy Paper 2021 101 ANNEXURES Annex I: County Government of Nakuru Operations FY 2021/2022 - 2023/2024 IFMIS REVENUE SOURCE REVISED CFSP PROJECTIONS ANNUAL % GROWTH CODE ESTIMATES GROWTH 2020/2021 2021/2022 2022/2023 2023/2024 2021/22 2022/23 2023/24 1520101 Property tax (Plot rent and Land rates 289,390,000 318,329,000 334,245,450 350,957,723 28,939,000 10.0% 5.0% 5.0% 1520201 Trade License 330,000,000 363,000,000 381,150,000 400,207,500 33,000,000 10.0% 5.0% 5.0% 1550101 Market Fees 87,220,000 95,942,000 100,739,100 105,776,055 8,722,000 10.0% 5.0% 5.0% 1590112 Building Approval 90,000,000 99,000,000 103,950,000 109,147,500 9,000,000 10.0% 5.0% 5.0% 1520325 Cess 50,000,000 55,000,000 57,750,000 60,637,500 5,000,000 10.0% 5.0% 5.0% 1530301 Royalties 184,460,000 202,906,000 213,051,300 223,703,865 18,446,000 10.0% 5.0% 5.0% 1580401 Stock/ Slaughter fees 25,000,000 27,500,000 28,875,000 30,318,750 2,500,000 10.0% 5.0% 5.0% 1560101 House Rent 50,000,000 55,000,000 57,750,000 60,637,500 5,000,000 10.0% 5.0% 5.0% 1590132 Advertising 100,000,000 110,000,000 115,500,000 121,275,000 10,000,000 10.0% 5.0% 5.0% 1550221 Parking fees 300,000,000 330,000,000 346,500,000 363,825,000 30,000,000 10.0% 5.0% 5.0% 1420223 Liquor Licensing 72,150,000 79,365,000 83,333,250 87,499,913 7,215,000 10.0% 5.0% 5.0% 1530331 County Park Fees 750,000 825,000 866,250 909,563 75,000 10.0 % 5.0 % 5.0 % 1530331 Water And Sewerage - - - - 1580111 Health fees and charges 100,350,000 110,385,000 115,904,250 121,699,463 10,035,000 10.0% 5.0% 5.0% 1540105 Other Fees and Charges 120,680,000 132,748,000 139,385,400 146,354,670 12,068,000 10.0 % 5.0 % 5.0 % Sub Total Local Sources 1,800,000,000 1,980,000,000 2,079,000,000 2,182,950,000 180,000,000 1580211 Facility Improvement Fund 1,400,000,000 1,400,000,000 1,442,000,000 1,485,260,000 - 0.0% 3.0% 3.0% SUB TOTAL (AIA & Local Sources) 3,200,000,000 3,380,000,000 3,521,000,000 3,668,210,000 180,000,000 5.6% 4.2 % 4.2 % 9910201 Balance in County Revenue Fund 5,629,941,240 74,343,117 (5,555,598,123) -98. 7% 1580211 Balance in Facility Improvement Fund (FIF) Account 197,404,907 (197,404,907) 1310101 Donor Grants (DANIDA) 29,790,000 - - (29,790,000) -100 .0% 1310102 Loans and Grants CRA 819,285,259 901,213,785 991,335,163 819,285,259 0.0 % 0.0 % 1310101 Symbiocity Programme 1330203 Kenya Devolution Support Program (KDSP) Level I 45,000,000 - - (45,000,000) -100.0% 0.0% 0.0% 1330203 Kenya Devolution Support Program (KDSP) Level II - - - 0.0 % 0.0% 0.0% 1310102 World bank National Agricultural and Rural inclusive 198,441,600 - - (198,441,600) 0.0% 0.0% growth Projects (NARIGP) 1310102 Agricultural Sector Development Support Projects 14,171,667 - - (14,171,667) 0.0% 0.0% (ASDSP II) 1330104 Grant to Compensate Forgone User Fees 38,723,265 38,723,265 42,595,592 46,855,151 - 0.0% 0.0% 0.0% Nakuru County Fiscal Strategy Paper 2021 102 IFMIS REVENUE SOURCE REVISED CFSP PROJECTIONS ANNUAL % GROWTH CODE ESTIMATES GROWTH 2020/2021 2021/2022 2022/2023 2023/2024 2021 /22 2022/23 2023/24 1330302 Conditional Fund -Kenya Urban Support Project - - - 0.0% 0.0% (KUSP) - Urban Development Grant 1330399 Conditional Fund -Kenya Urban Support Project - - - 0.0% 0.0% (KUSP) - Urban Institutional Grant 1330104 Conditional Fund -Leasing of Medical Equipment 132,021,277 153,297,872 168,627,659 185,490,425 21,276,595 16.1 % 0.0 % 0.0 % 1330104 Conditional Fund -Free Maternal Health - - - 1330102 Grant to Road Maintenance Fuel Levy Fund 290,544,581 290,544,581 319,599,039 351,558,943 - 0.0% 10.0% 10.0% (RMFLF) 1330104 Grant For Level 5 Hospital 373,872,832 373,872,832 411,260,115 452,386,127 - 0.0 % 10.0 % 10.0 % 1310102 World Bank THS-UC Conditional allocation 40,080,000 - - (40,080,000) 9910201 Grant for Rehabilitation of Youth Polytechnics 66,289,894 66,289,894 72,918,883 80,210,772 9910201 Work Injury Claims Benefits 14,877,704 - - (14,877,704) -100.0% 9999999 C.R.A Equitable Share 10,476,150,000 12,256,685,751 13,482,354,326 14,830,589,759 1,780,535,751 17.0% 10.0% 10.0% SUB TOTAL 17,547,308,968 14,073,042,571 15,398,569,399 16,938,426,339 (3,474,266,397) -19.8% GRAND TOTAL 20,740,200,739 17,453,042,571 18,919,569,399 20,606,636,339 (3,287,158,168) -15. 8% Allocation For Ward Projects Total Development Budget 9,813,353,660 5,934,034,474 6,527,437,922 7,180,181,714 (3,879,319,186) -39.5% 10.0% 10.0% Less Development Conditional Grant 1,519,339,019 1,935,922,573 2,129,514,830 2,342,466,313 416,583,554 27.4% 10.0% 10.0% Debt Resolution 180,000,000 445,714,470 490,285,917 539,314,509 265,714,470 147.6% 10.0% 10.0% Ongoing Projects 6,308,328,347 - - (6,308,328,347) -100.0% 0.0% 0.0% Nakuru & Naivasha Municipalities 115,000,000 126,500,000 139,150,000 115,000,000 100.0% 10.0% 10.0% Equitable Allocation 1,805,686,294 3,437,397,431 3,781,137,174 4,159,250,892 1,631,711,137 90.4% 10.0% 10.0% County Assembly HQ Development 148,000,000 100,000,000 110,000,000 121,000,000 (48,000,000) -32.4% 0.0% 0.0% Flagship HQ development 441,686,294 1,837,397,431 1,911,137,174 2,102,250,892 1,295,711,137 0.0% 0.0% - 45% of Equitable Allocation for Ward Projects 1,216,000,000 1,600,000,000 1,760,000,000 1,936,000,000 384,000,000 31.6 % 10.0 % 10.0 % Expenditure: Current Expenditure: Compensation to Employees 7,032,693,623 6,905,464,152 7,526,955,926 8,204,381,959 (127,229,471) -1.8% 0.0% 0.0% Use Of Goods And Services 3,382,080,066 4,226,738,073 4,607,144,500 5,021,787,505 844,658,008 25.0 % 0.0% 0.0% Grants And Other Transfers 305,525,715 386,805,871 417,750,341 451,170,368 81,280,156 0.0% 0.0% Other Recurrent 213,655,904 - - (213,655,904) 0.0% 0.0% 0.0% Sub Total: 10,933,955,307 11,519,008,097 12,551,850,767 13,677,339,832 585,052,789 5.4 % 0.0 % 0.0 % Capital Expenditure: Acquisition Of Non-Financial Assets 5,565,726,803 1,952,397,431 2,320,839,827 2,801,493,314 (3,613,329,372) -64.9% 0.0% 0.0% Nakuru County Fiscal Strategy Paper 2021 103 IFMIS REVENUE SOURCE REVISED CFSP PROJECTIONS ANNUAL % GROWTH CODE ESTIMATES GROWTH 2020/2021 2021/2022 2022/2023 2023/2024 2021/22 2022/23 2023/24 Capital Grants To Governmental Agencies 4,247,626,857 2,381,637,043 2,619,800,747 2,881,780,822 (1,865,989,814) -43.9% 0.0% 0.0% Other Development - 1,600,000,000 1,760,000,000 1,936,000,000 1,600,000,000 0.0% 0.0% 0.0% Sub Total: 9,813,353,660 5,934,034,474 6,700,640,574 7,619,274,136 (3,879,319,186) -39.5% 0.0% 0.0% Grand Total: 20,747,308,968 17,453,042,571 19,252,491,341 21,296,613,969 (3,294,266,397) -15. 9% 0.0 % 0.0 % DEFICIT/ SURPLUS - 0 PERCENT OF TOTAL BUDGET Current Expenditure: 52.7% 66.0% 65.2% 64.2% Capital Expenditure: 47.3% 34.0% 34.8% 35.8% Nakuru County Fiscal Strategy Paper 2021 104 Annex II: Trend in Growth of Equitable share of Revenue Trend in Growth of Equitable share of Revenue FY2013/2014 (Base Year) to FY2021/2022 EXCHEQUER RECEIPTS TRENDS ALLOCATION GROWTH % GROWTH 2013/2014 (Base Year) 5,936,875,619 5,936,875,619 100% 2014/2015 7,082,152,961 1,145,277,342 19% 2015/2016 8,116,330,943 1,034,177,982 15% 2016/2017 8,757,624,645 641,293,702 8% 2017/2018 9,271,400,000 513,775,355 6% 2018/2019 9,451,400,000 180,000,000 2% 2019/2020 10,476,150,000 1,024,750,000 11% 2020/2021 10,476,150,000 - 0% 2021/2022 (BPS 2021) 12,256,685,751 1,780,535,751 17% Trend in Growth of Own Source Revenue FY2013/2014 (Base Year) to FY2021/2022 OWN SOURCE REVENUE TRENDS LOCAL FIF ACTUAL TOTAL GROWTH % REVENUE GROWTH ACTUAL 2013/2014 (Base Year) 1,372,049,460 427,340,768 1,799,390,228 0% 2014/2015 1,600,420,288 500,576,752 2,100,997,040 301,606,812 17% 2015/2016 1,780,782,667 514,680,175 2,295,462,842 194,465,802 9% 2016/2017 1,555,180,152 405,703,607 1,960,883,759 (334,579,084) -15% 2017/2018 1,682,970,850 597,551,764 2,280,522,614 319,638,855 16% 2018/2019 1,853,568,733 957,002,225 2,810,570,958 530,048,344 27% 2019/2020 1,354,763,813 1,085,902,884 2,440,666,697 (369,904,261) -19% 2020/2021 (Target) 1,800,000,000 1,400,000,000 3,200,000,000 759,333,303 39% 2021/2022 (Target) 1,980,000,000 1,400,000,000 3,380,000,000 180,000,000 8% Nakuru County Fiscal Strategy Paper 2021 105 Annex III: Total Expenditure Sector Ceilings for the Period 2021/2022 - 2023/24 SECTOR SUB SECTOR APPROVED BUDGET CFSP CEILINGS PROJECTIONS FY 2020/2021 2021/2022 2022/2023 2023/2024 1 Agriculture Rural and 1.1 Urban Development Agriculture, Livestock and Fisheries Compensation to Employees 409,988,511 402,839,496 443,123,446 487,435,790 Use of Goods & Maintenance 131,130,908 152,591,082 167,850,190 184,635,209 Development Gross 469,395,549 213,803,118 235,183,429 258,701,772 Sub Total 1,010,514,967 769,233,695 846,157,065 930,772,771 1.2 Lands, Physical Planning and Housing Compensation to Employees 100,266,520 100,950,379 111,045,416 122,149,958 Use of Goods & Maintenance 35,169,758 46,626,326 51,288,958 56,417,854 Development Gross 1,162,844,530 113,837,748 125,221,523 137,743,675 Sub Total 1,298,280,808 261,414,453 287,555,898 316,311,488 SUB TOTAL (SECTOR) 2,308,795,775 1,030,648,148 1,133,712,963 1,247,084,259 2 Education 2.1 Education Compensation to Employees 279,814,072 289,821,692 318,803,861 350,684,247 Use of Goods & Maintenance 99,437,886 181,959,955 200,155,950 220,171,545 Development Gross 366,477,896 39,653,690 43,619,059 47,980,965 Sub Total 745,729,854 511,435,337 562,578,871 618,836,758 2.2 Vocational Training Compensation to Employees - - Use of Goods & Maintenance 86,911,808 118,705,048 130,575,553 143,633,108 Development Gross 322,804,056 105,943,584 116,537,943 128,191,737 Sub Total 409,715,864 224,648,633 247,113,496 271,824,845 SUB TOTAL (SECTOR) 1,155,445,718 736,083,970 809,692,367 890,661,603 3 Social Protection, 3.1 Culture and Recreation Youth, Sports, Culture and Social Services. Compensation to Employees 125,826,266 114,726,683 126,199,352 138,819,287 Use of Goods & Maintenance 115,398,776 145,215,021 159,736,523 175,710,176 Nakuru County Fiscal Strategy Paper 2021 106 SECTOR SUB SECTOR APPROVED BUDGET CFSP CEILINGS PROJECTIONS FY 2020/2021 2021/2022 2022/2023 2023/2024 Development Gross 167,054,597 114,640,737 126,104,811 138,715,292 Sub Total 408,279,638 374,582,442 412,040,686 453,244,755 SUB TOTAL (SECTOR) 408,279,638 374,582,442 412,040,686 453,244,755 4 Energy, Infrastructure 4.1 and ICT Infrastructure Compensation to Employees 148,057,021 157,694,761 173,464,237 190,810,661 Use of Goods & Maintenance 216,980,499 196,234,076 215,857,484 237,443,232 Development Gross 2,240,633,129 523,366,901 575,703,591 633,273,950 Sub Total 2,605,670,649 877,295,738 965,025,311 1,061,527,843 4.2 ICT and E-Government Compensation to Employees - - Use of Goods & Maintenance 38,568,500 37,409,100 41,150,009 45,265,010 Development Gross 31,459,285 31,103,796 34,214,176 37,635,594 Sub Total 70,027,785 68,512,896 75,364,186 82,900,604 SUB TOTAL (SECTOR) 2,675,698,434 945,808,634 1,040,389,497 1,144,428,447 5 Environment 5.1 Protection, Water and Water, Environment, Energy and Natural Resources Natural Resources Compensation to Employees 233,101,636 248,882,344 273,770,579 301,147,637 Use of Goods & Maintenance 46,357,014 77,376,564 85,114,220 93,625,642 Development Gross 1,125,325,501 150,398,633 165,438,497 181,982,346 Sub Total 1,404,784,151 476,657,542 524,323,296 576,755,625 SUB TOTAL (SECTOR) 1,404,784,151 476,657,542 524,323,296 576,755,625 6 General Economics and 6.1 Commercial Affairs Trade, Industry, Marketing and Tourism Compensation to Employees 69,465,834 89,349,693 98,284,662 108,113,129 Use of Goods & Maintenance 67,812,165 138,823,447 152,705,792 167,976,371 Development Gross 225,590,748 118,525,132 130,377,645 143,415,410 Sub Total 362,868,747 346,698,272 381,368,099 419,504,909 SUB TOTAL (SECTOR) 362,868,747 346,698,272 381,368,099 419,504,909 Nakuru County Fiscal Strategy Paper 2021 107 SECTOR SUB SECTOR APPROVED BUDGET CFSP CEILINGS PROJECTIONS FY 2020/2021 2021/2022 2022/2023 2023/2024 7 Health 7.1 Health Services Compensation to Employees 3,954,645,387 4,270,433,349 4,697,476,684 5,167,224,352 Use of Goods & Maintenance 1,324,200,393 1,633,236,436 1,796,560,080 1,976,216,088 Development Gross 1,544,032,440 796,257,301 875,883,031 963,471,334 Sub Total 6,822,878,221 6,699,927,086 7,369,919,794 8,106,911,774 SUB TOTAL (SECTOR) 6,822,878,221 6,699,927,086 7,369,919,794 8,106,911,774 8 Public Administration 8.1 and National/Inter Office of the Governor and Deputy County Relations Governor Compensation to Employees 94,514,968 103,077,564 113,385,320 124,723,852 Use of Goods & Maintenance 220,390,824 233,139,554 256,453,509 282,098,860 Development Gross 98,954,766 160,511,000 176,562,100 194,218,310 Sub Total 413,860,558 496,728,117 546,400,929 601,041,022 8.2 County Treasury Compensation to Employees 496,164,176 554,708,280 610,179,108 671,197,018 Use of Goods & Maintenance 379,990,138 365,857,610 402,443,371 442,687,708 Development Gross 667,050,485 3,272,251,964 3,599,477,160 3,959,424,876 Sub Total 1,543,204,800 4,192,817,853 4,612,099,639 5,073,309,603 8.3 Public Service, Training and Devolution Compensation to Employees 519,706,712 516,477,230 568,124,953 624,937,448 Use of Goods & Maintenance 185,496,696 184,297,056 202,726,762 222,999,438 Development Gross 51,888,289 70,863,725 77,950,098 85,745,108 Sub Total 757,091,697 771,638,011 848,801,812 933,681,994 8.4 County Public Service Board Compensation to Employees 33,661,028 32,994,117 36,293,529 39,922,882 Use of Goods & Maintenance 34,483,762 37,500,000 41,250,000 45,375,000 Development Gross 1,810,000 7,877,144 8,664,859 9,531,345 Sub Total 69,954,790 78,371,262 86,208,388 94,829,227 Nakuru County Fiscal Strategy Paper 2021 108 SECTOR SUB SECTOR APPROVED BUDGET CFSP CEILINGS PROJECTIONS FY 2020/2021 2021/2022 2022/2023 2023/2024 8.5 County Assembly Compensation to Employees 458,466,236 - - - Use of Goods & Maintenance 524,753,000 1,000,000,000 1,100,000,000 1,210,000,000 Development Gross 271,189,290 100,000,000 110,000,000 121,000,000 Sub Total 1,254,408,526 1,100,000,000 1,210,000,000 1,331,000,000 8.6 Nakuru Municipality Compensation to Employees 2,319,802 15,075,204 16,582,725 18,240,997 Use of Goods & Maintenance 25,090,888 34,340,145 37,774,160 41,551,575 Development Gross 529,825,868 65,000,000 71,500,000 78,650,000 Sub Total 557,236,558 114,415,349 125,856,884 138,442,573 8.7 Naivasha Municipality Compensation to Employees 2,319,802 8,433,360 9,276,696 10,204,366 Use of Goods & Maintenance 21,557,704 30,232,526 33,255,778 36,581,356 Development Gross 246,096,145 50,000,000 55,000,000 60,500,000 Sub Total 269,973,651 88,665,886 97,532,474 107,285,722 SUB TOTAL (SECTOR) 4,865,730,580 6,842,636,479 7,526,900,127 8,279,590,139 Total Compensation to Employees 6,928,317,971 6,905,464,152 7,596,010,567 8,355,611,624 TOTAL Total Operations & Maintenance 3,553,730,719 4,613,543,945 5,074,898,339 5,582,388,173 Total Development Gross 9,522,432,574 5,934,034,474 6,527,437,922 7,180,181,714 GRAND TOTAL 20,004,481,264 17,453,042,571 19,198,346,828 21,118,181,511 Nakuru County Fiscal Strategy Paper 2021 109 Annex IV: Total Recurrent Expenditure Ceilings for the Period 2021/2022 - 2023/2024 VOTE SOURCE OF APPROVED CFSP PROJECTIONS FUNDING ESTIMATES CEILINGS 2022/2023 2023/2024 2020/2021 2021/2022 Office of the Gross Allocation 314,905,792 336,217,117 369,838,829 406,822,712 Governor and Deputy Local Revenue 47,235,869 100,865,135 110,951,649 122,046,814 Governor CRA Equitable 267,669,923 235,351,982 258,887,180 284,775,899 Share County Treasury Gross Allocation 876,154,314 920,565,890 1,012,622,479 1,113,884,726 Local Revenue 124,673,147 276,169,767 303,786,744 334,165,418 Conditional Grant 45,000,000 - - - CRA Equitable 706,481,167 644,396,123 708,835,735 779,719,309 Share County Public Gross Allocation 68,144,790 70,494,117 77,543,529 85,297,882 Service Board Local Revenue 10,221,719 21,148,235 23,263,059 25,589,365 CRA Equitable 57,923,072 49,345,882 54,280,470 59,708,517 Share Public Service, Gross Allocation 705,203,408 700,774,286 770,851,714 847,936,886 Training and Local Revenue 105,780,511 210,232,286 231,255,514 254,381,066 Devolution CRA Equitable 599,422,897 490,542,000 539,596,200 593,555,820 Share Health Services Gross Allocation 5,278,845,780 5,903,669,785 6,494,036,764 7,143,440,440 Local Revenue 577,855,459 1,386,970,661 1,525,667,727 1,678,234,500 AIA 1,129,483,399 980,000,000 1,078,000,000 1,185,800,000 Conditional Grant 296,992,657 300,434,247 330,477,672 363,525,439 CRA Equitable 3,274,514,265 3,236,264,876 3,559,891,364 3,915,880,501 Share Trade, Industry, Gross Allocation 137,277,999 228,173,140 250,990,454 276,089,500 Marketing and Local Revenue 20,591,700 53,451,942 58,797,136 64,676,850 Tourism Fund Allocation 50,000,000 55,000,000 60,500,000 CRA Equitable 116,686,299 124,721,198 137,193,318 150,912,650 Share Infrastructure Gross Allocation 365,037,520 353,928,837 389,321,721 428,253,893 Local Revenue 54,755,628 106,178,651 116,796,516 128,476,168 CRA Equitable 310,281,892 247,750,186 272,525,204 299,777,725 Share Education, Vocational Gross Allocation 504,732,266 627,895,794 690,685,374 759,753,911 Training, ICT and E- Local Revenue 54,213,659 132,481,770 145,729,947 160,302,942 Government Bursary & 143,307,875 186,289,894 204,918,883 225,410,772 Counterpart Funding CRA Equitable 307,210,732 309,124,130 340,036,543 374,040,198 Share Nakuru County Fiscal Strategy Paper 2021 110 VOTE SOURCE OF APPROVED CFSP PROJECTIONS FUNDING ESTIMATES CEILINGS 2022/2023 2023/2024 2020/2021 2021/2022 Agriculture, Gross Allocation 541,119,419 555,430,578 610,973,635 672,070,999 Livestock and Local Revenue 81,167,913 166,629,173 183,292,091 201,621,300 Fisheries CRA Equitable 459,951,506 388,801,404 427,681,545 470,449,699 Share Lands, Physical Gross Allocation 135,436,278 147,576,704 162,334,375 178,567,812 Planning and Local Revenue 20,315,442 44,273,011 48,700,312 53,570,344 Housing CRA Equitable 115,120,836 103,303,693 113,634,062 124,997,469 Share Youth, Culture, Gross Allocation 241,225,042 259,941,705 285,935,875 314,529,463 Sports and Social Local Revenue 36,183,756 77,982,511 85,780,763 94,358,839 Services. CRA Equitable 205,041,285 181,959,193 200,155,113 220,170,624 Share Water, Environment, Gross Allocation 279,458,650 326,258,908 358,884,799 394,773,279 Energy and Natural Local Revenue 41,918,798 97,877,672 107,665,440 118,431,984 Resources CRA Equitable 237,539,853 228,381,236 251,219,359 276,341,295 Share County Assembly Gross Allocation 983,219,236 1,000,000,000 1,100,000,000 1,210,000,000 Local Revenue 147,482,885 300,000,000 330,000,000 363,000,000 CRA Equitable 835,736,351 700,000,000 770,000,000 847,000,000 Share Nakuru Municipality Gross Allocation 27,410,690 49,415,349 54,356,884 59,792,573 Local Revenue 2,613,000 14,824,605 16,307,065 17,937,772 Conditional Grant 9,990,690 - - - CRA Equitable 14,807,000 34,590,745 38,049,819 41,854,801 Share Naivasha Municipality Gross Allocation 23,877,506 38,665,886 42,532,474 46,785,722 Local Revenue 1,922,970 11,599,766 12,759,742 14,035,716 Conditional Grant 11,057,704 - - - CRA Equitable 10,896,832 27,066,120 29,772,732 32,750,005 Share SUB TOTAL 10,482,048,690 11,519,008,097 12,670,908,907 13,937,999,797 Nakuru County Fiscal Strategy Paper 2021 111 Annex V: Total Development Expenditure Ceilings for the Period 2021/2022 - 2023/2024 VOTE SOURCE OF APPROVED CFSP PROJECTIONS FUNDING ESTIMATES CEILINGS 2022/2023 2023/2024 2020/2021 2021/2022 Office of the Governor Gross Allocation 98,954,766 160,511,000 176,562,100 194,218,310 and Deputy Governor Local Revenue 14,843,215 48,153,300 52,968,630 58,265,493 CRA Equitable 84,111,551 112,357,700 123,593,470 135,952,817 Share County Treasury Gross Allocation 667,050,485 3,272,251,964 3,599,477,160 3,959,424,876 Local Revenue 73,057,573 122,175,670 134,393,237 147,832,561 Debt Resolution 180,000,000 200,000,000 220,000,000 242,000,000 KRA & Retention 245,714,470 270,285,917 297,314,509 Pending Bill Loans and Grants 819,285,259 901,213,785 991,335,163 Ward Allocation 1,600,000,000 1,760,000,000 1,936,000,000 CRA Equitable 413,992,913 285,076,564 313,584,221 344,942,643 Share County Public Service Gross Allocation 1,810,000 7,877,144 8,664,859 9,531,345 Board Local Revenue 271,500 2,363,143 2,599,458 2,859,403 CRA Equitable 1,538,500 5,514,001 6,065,401 6,671,941 Share Public Service, Gross Allocation 51,888,289 70,863,725 77,950,098 85,745,108 Training and Local Revenue 7,783,243 21,259,118 23,385,029 25,723,532 Devolution CRA Equitable 44,105,046 49,604,608 54,565,069 60,021,575 Share Health Gross Allocation 1,544,032,440 796,257,301 875,883,031 963,471,334 Local Revenue 52,064,745 33,239,274 36,563,201 40,219,521 AIA 553,537,401 420,000,000 462,000,000 508,200,000 Conditional Grant 643,396,737 265,459,722 292,005,694 321,206,263 CRA Equitable 295,033,557 77,558,305 85,314,136 93,845,549 Share Trade, Industry, Gross Allocation 225,590,748 118,525,132 130,377,645 143,415,410 Marketing and Tourism Local Revenue 33,838,612 35,557,540 39,113,294 43,024,623 CRA Equitable 191,752,136 82,967,592 91,264,352 100,390,787 Share Infrastructure Gross Allocation 2,240,633,129 523,366,901 575,703,591 633,273,950 Local Revenue 233,431,536 47,543,761 52,298,137 57,527,951 Conditional Grant 684,422,889 364,887,698 401,376,468 441,514,115 CRA Equitable 1,322,778,704 110,935,442 122,028,986 134,231,885 Share Education, Vocational Gross Allocation 720,741,237 176,701,071 194,371,178 213,808,296 Training, ICT and E- Local Revenue 96,838,367 33,123,353 36,435,688 40,079,257 Government Conditional Grant 75,152,126 66,289,894 72,918,883 80,210,772 CRA Equitable 548,750,744 77,287,824 85,016,606 93,518,267 Share Nakuru County Fiscal Strategy Paper 2021 112 VOTE SOURCE OF APPROVED CFSP PROJECTIONS FUNDING ESTIMATES CEILINGS 2022/2023 2023/2024 2020/2021 2021/2022 Agriculture, Livestock Gross Allocation 469,395,549 213,803,118 235,183,429 258,701,772 and Fisheries Local Revenue 38,517,342 64,140,935 70,555,029 77,610,532 Conditional Grant 212,613,267 - - - CRA Equitable 218,264,939 149,662,182 164,628,400 181,091,241 Share Lands, Physical Gross Allocation 1,162,844,530 113,837,748 125,221,523 137,743,675 Planning and Housing Local Revenue 48,287,880 34,151,324 37,566,457 41,323,103 Conditional Grant 840,925,332 - - CRA Equitable 273,631,319 79,686,424 87,655,066 96,420,573 Share Youth, Culture, Sports Gross Allocation 167,054,597 114,640,737 126,104,811 138,715,292 and Social Services. Local Revenue 25,058,190 34,392,221 37,831,443 41,614,588 CRA Equitable 141,996,407 80,248,516 88,273,368 97,100,704 Share Water, Environment, Gross Allocation 1,125,325,501 150,398,633 165,438,497 181,982,346 Energy and Natural Local Revenue 168,798,825 45,119,590 49,631,549 54,594,704 Resources CRA Equitable 956,526,676 105,279,043 115,806,948 127,387,642 Share County Assembly Gross Allocation 271,189,290 100,000,000 110,000,000 121,000,000 Local Revenue 40,678,393 30,000,000 33,000,000 36,300,000 CRA Equitable 230,510,896 70,000,000 77,000,000 84,700,000 Share Nakuru Municipality Gross Allocation 529,825,868 65,000,000 71,500,000 78,650,000 Local Revenue - 19,500,000 21,450,000 23,595,000 Conditional Grant 529,825,868 - - - CRA Equitable - 45,500,000 50,050,000 55,055,000 Share Naivasha Municipality Gross Allocation 246,096,145 50,000,000 55,000,000 60,500,000 Local Revenue - 15,000,000 16,500,000 18,150,000 Conditional Grant 246,096,145 - - - CRA Equitable - 35,000,000 38,500,000 42,350,000 Share SUB TOTAL 9,522,432,574 5,934,034,474 6,527,437,922 7,180,181,714 Nakuru County Fiscal Strategy Paper 2021 113 ANNEX VI: ADHERENCE TO FISCAL RESPONSIBILITY PRINCIPLES In line with Article 201 of the Constitution of Kenya 2010, Section 107 of the Public Finance Management Act (PFMA), 2012 the County Government has adhered to the fiscal responsibility as envisaged in the aforementioned statutes. 1) The County Government’s recurrent expenditure shall not exceed the County Government’s total revenue The County Government has always implemented a balanced budget and ensures that a maximum of 70 percent is allocated towards recurrent expenditure. Recurrent expenditures as per the Approved Estimates for the MTEF Period FY2018/19 – FY2020/2021 excluding fiscal balance have been 64.8%, 65% and 70% of the total budget respectively. For the FY2021/2022, the recurrent expenditure is projected at 66% of the total expenditure. 2) Over the medium term, a minimum of 30% of the County budget shall be allocated to development expenditure The County Government of Nakuru has over time continued to adhere to the stipulated allocation requirement of a minimum of 30 percent to its development budget. In the medium term FY2018/2019-FY2020/2021, the County’s allocation for development expenditure stood at 35.2%, 35%, 47.3% respectively excluding balances carried forward. The development expenditure for the next MTEF period FY2021/2022 – 2023/2024 will reach Ksh 5.9 billion, Ksh. 6.6 billion and Ksh. 7.6 billion respectively which translates to 34%, 34.8 and 35.7% of the total 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. Section 25(1) (b) of the PFM (County Governments) Regulations, 2015 requires that County Governments’ wage bill shall not exceed 35 percent of their total Nakuru County Fiscal Strategy Paper 2021 114 revenue. The wage bill in the FY 2021/22 is estimated at 39.6% of the county budget which is still higher than the prescribed 35%. The high percentage rate is however occasioned by other factors including SRC salary harmonization, implementation of pension scheme after passing of the County Governments’ Retirement Scheme Act (2019), worker’s collective bargaining agreements. 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. Nakuru County Government has continued to ensure that it maintains a rationalized and balanced budget. Deliberate efforts exercised by the County enabled the clearance of any existing loans and as a result, the County is also working towards sorting the remainder of existing pending bills. The County is committed to comply to this principle through ensuring that borrowings; if any will be informed by the County Debt Management Strategy Paper and all borrowing shall be used to finance development expenditure. 5) Public debt and obligations shall be maintained at a sustainable level as Approved by County Government (CG) Pursuant to Section 107(2) and 107 (4) of the PFM Act, County debt ought to be maintained at sustainable levels and does not exceed a percentage of its annual revenue in respect of each financial year by resolution of the County Assembly. In its commitment towards reducing pending bills, the County has constituted and gazetted a Pending Bills Committee as directed by Controller of Budget which will continuously analyze pending bills and provide report on the same regularly. This measure in addition to prudent financial management and improved credibility of the budget associated with realistic revenue estimates is expected to ensure that the County continues to maintain a balanced budget ensuring realistic Nakuru County Fiscal Strategy Paper 2021 115 revenue estimates which equals total expenditure with the aim of limiting the level of pending bills. Focus will also be on ensuring the reduction of current debt through servicing of pending bills. 6) Fiscal risks shall be managed prudently The County Government has improved its macroeconomic forecasts and regularly reviews the impact of macroeconomic projections and its implications to the budget. The County Government will continue to put measures in place to enhance revenue collection, majorly through automation and widening of revenue bases. Expenditure rationalization will also be continuously pursued. 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 The County Government coordinates the collection of its local revenue to provide for revenue raising measures relating to County taxes, licenses, fees and charges through the preparation of the annual Finance Act. The County’s realistic own source revenue targets have generally registered improvements in the County’s revenue performance over the medium term. The County Government will come up with economic recovery strategies aimed at supporting businesses across the County recover from the effects of COVID-19 pandemic. These efforts will be aimed at business regeneration, profitability and in turn payment of requisite taxes and fees. Operationalization of the recently acquired revenue system and legislative reviews of the current revenue related laws through the Finance Act are reforms the County will also adopt with the aim of strengthening local revenue performance. Nakuru County Fiscal Strategy Paper 2021 116 ANNEX VII: STATEMENT OF SPECIFIC FISCAL RISKS This section provides an assessment of fiscal risks that the County is exposed to that may affect the achievement of the macroeconomic targets and objectives detailed in this fiscal strategy paper. The fiscal risks arise from assumptions that underlie fiscal projections the growing wage bill, pending bills, magnitude of development projects, the pension scheme for staff among others. I. Roll over of projects continue to expose the County to various risks including; completion, political and reputational risk due to increased magnitude of projects to be implemented in a subsequent year. This also increases the possibility of redundancy and obsoleteness as a result of projects losing relevance due to prolonged period to completion. II. Decline in funding under loans and grant i.e. KUSP, will adversely impact on the operationalization of newly constituted urban entities of Nakuru and Naivasha Municipalities. III. The continuous growth in share of compensation to employees poses the greatest fiscal risk yet to the County budget outlook in the next MTEF period. The County has overtime exceeded the fiscal responsibility of 35% in its expenditure on wages and benefits for public officers. This is likely to further be exacerbated by the growing needs among County Departments to recruit key technical staffs as well as operationalization of the Naivasha and Nakuru Municipal Boards which might also require additional staffing. IV. At the County level, BBI and proposed Referendum Campaigns are likely to slow down County operations particularly performance of Own source revenues, in the medium term. The transitional period will also pose a high staff turnover, leading to disruption of service delivery. V. The reclassification of a substantial amount of ineligible pending bills as eligible will pose an operational risk associated with delayed disbursement tied to their settlement. Nakuru County Fiscal Strategy Paper 2021 117 Annex VIII: Sector Composition and Sector Working Groups for MTEF Budget 2021/2022-2023/2024 CLASSIFICATION OF SECTOR SECTOR COMPOSITION(S) FUNCTIONS OF GOVERNMENT (COFOG) General Public Services Public Administration and Office of The Governor and National/Inter County Deputy Governor Relations County Public Service Board Finance and Economic Planning Public Service, Training and Devolution Nakuru Municipality Naivasha Municipality County Assembly Recreation, Culture and Social Protection, Culture Dept. Of Culture, Social Protection and Recreations Dept. Of Sports Dept. Of Social Services Education Education Dept. Of Education Dept. of Vocational Training Economic Affairs Agriculture Rural and Agriculture, Livestock and Urban Development Fisheries Land, Physical Planning and Housing General Economics and Trade, Tourism Commercial Affairs And Cooperatives Energy, Infrastructure and Infrastructure ICT ICT And E-Government Environment Protection Environment Protection Water, Environment, Energy Water and Natural and Natural Resources Resources Health Health County Health Services Macro Working Group Macro Working Group Department of Finance and Economic Planning Nakuru County Fiscal Strategy Paper 2021 118 Annex IX: CFSP 2021 Public Hearings Highlights SECTOR ISSUES RAISED FEEDBACK Environment Enhancement civic education Citizens to be sensitized through public participation. Protection, Water Technical officers to guide on projects Few technical staff but the department endeavor to and Natural that require technical expertise recruit more staff Resources Noise pollution within the CBD Need to engage law enforcers to control noise pollution along the CBD Projects completion taking long For projects that required electricity KPLC derailed in power connection this made impossible for project to be completed in time Tussle on land ownership by the Authorization was required from the national national government government for county projects to commence. Disagreement among the beneficiaries Members of the public urged to support the projects on water projects Climate change- water submerging in Steps have been done to create climate change bill to lake Nakuru facilitate climate change financing Health Waivers for medical bills After evaluation by the waiver committee, those who were not able to afford to pay medical bills and needy were to be considered, Long waiting period for approvals for Funding for health services is not manageable only by wavers on unpaid bills. County and National Governments, the public has to chip in by ensuring they contribute on national health insurance Increase of teenage pregnancy There was need to by the department to work closely with education sector to ensure girls reach mature, creates programs on teenage pregnancy to be incorporated to be taught in schools Increase in family planning budget Family planning budget done by the donors hence they controlled the budget, however they will work hand in hand to ensure more funds be allocated. Establishment of youth friendly facilities The facility for youth around mortuary be moved and a five story building be constructed Nakuru County Fiscal Strategy Paper 2021 119 SECTOR ISSUES RAISED FEEDBACK How KEMSA scandal affected county There is no linkage between KEMSA and county health health services services Construction of more health facilities More health facilities constructed in the county within the recommended radius of 5km and there is need to improve the existing facilities. Low absorption rate on budgetary This is due to delayed fund disbursement allocation Increase in number of mentally ill street The County is aware of the increasing number of street persons and measure to handle them. children and mentally ill persons and has put in place a policy to handle the increasing cases. According to policy, mentally ill person are supposed to be taken to hospital/rehabilitation by their relatives to avoid unnecessary controversies Agriculture, Rural Poultry rearing The last financial year the department distributed and Urban chicks to farmers which promoted poultry value chain Development There is need to buy more medicines for preventing poultry diseases. Conflict on land use by the youth Elders still holding land thus limiting youth employment opportunities Government to provide subsidies Provision of linkages to association that wants to work with the groups of the youth. Setting up greenhouses. Fish farming in Kuresoi. The under-utilized fish machines in Naivasha and Bahati to be used in Kuresoi to increase fish production. Progress report on agricultural The department conducted regular monitoring on the equipment distributed such incubators equipment given to farmers. across the county. Use of technology Capacity building on use of technology to be carried out to the farmers Reduction on stocking by fish Due to COVID -19 the stocking reduced; harvesting production was 3000 metric tons to 2500 metric tons Nakuru County Fiscal Strategy Paper 2021 120 SECTOR ISSUES RAISED FEEDBACK Recruitment of staff. The various positions that had been advertised were in shortlisting stage waiting for interviews Distributions of seeds and fertilizers There will be subsidies in the coming years for those who cannot be able to do farming Need for extension services for urban Urban farming officers will sensitize the public on the farming need to engage in urban farming activities Engage National Land Commission to Land purchase a great challenge the public didn’t procure land for public utility respond to adverts as some not suitable for the intended purpose. Signed contract and paying of legal fees has made it difficult for the department to purchase land Purchase of land done at ward level Recruitment of more staff There was ongoing recruitment for 3 physical planners and more will be required to improve in urban planning, Projects clash between Nakuru There was need to engage the two board to avoid Municipality Board and Naivasha clashes on projects carried out by the department. Municipality Board Land sub division Land sub division was to be done formally to enable other services such as drainage and access to roads Clarity on digital title deed Digitization of land titles was a national government program and was a process that was to be enrolled throughout the country. Acquisition of land for new stadium The department will work together with the department of sports so as to have the way forward General Economics Location of rehabilitation centres Rehabilitation centre is the sectors proposals, not yet and Commercial established Affairs Inefficiency of liquor Committee Officers collecting liquor money illegally or in a wrong way will be followed up More funding to the sector for It will be put under consideration in the budget and do cooperative training follow up after registration Farmers still not benefiting from 50kg Crop inspector expected to enforce the new law from potato packaging Agriculture department Nakuru County Fiscal Strategy Paper 2021 121 SECTOR ISSUES RAISED FEEDBACK Fair allocation of market stalls and kiosk The department shall streamline stall and kiosk allocation Establish big markets with the radius of Through public participation allocate enough money 5KM like health centres for everything including washrooms, fencing, shades recommendations etc to ensure constructions of big markets, Links with business associations The sector endeavor to engage all stakeholders from all business sector. Social Protection, The department has Low rate of Going forward absorption rate will increase. Measures Culture and absorption for it budgetary allocation will be put in place. Recreation County unpreparedness on youth and Youth issues are cross cutting and there is need to unemployment engage all department on internship and attachment. Youth empowerment policy developed and to be implemented do address issues related to allocation of funds Establishment of Gender Based 10 million had been allocated for the establishment of Violence GBV centres (GBV) Recovery centre The gender recovery centre in Naivasha almost complete Need to have hall to deal with gender issue in London ward. Disability Fund The fund to facilitated PWDs attend public participation Need to develop a database for PWDs to ensure transparency and accountability Need to have interpreter for the deaf and sports kits was to be addressed All PWDs to be supported whenever they had sports as well as need to purchase a bus for PWDs Memorandum of Understanding on Mapping of museums and culture is ongoing Culture policy between national The cultural centre at Kihingo phase I over and phase II museum of Kenya and county was the construction of traditional village moved from government of Nakuru hyrax to Kihingo Nakuru County Fiscal Strategy Paper 2021 122 SECTOR ISSUES RAISED FEEDBACK Recreation facility in county Need to engage public private partnership establishment of recreation facility which will promote arts and culture within the county. Gender policy Gender policy at 95% and soon to be launched upon completion. Education Appropriate toilets and furniture in Special schools have been built and the ECDEs for the special needs children, recommendation will be put into consideration while Tablets for the visually impaired and equipping of the schools brail centres that are to be established in the financial year. Free feeding program The programme has no budget allocation currently Branding of uniforms for vocational The uniforms vary with various courses offered in the students vocational centres Energy, Borrowing from Baringo County while The subsector will put the recommendation into Infrastructure and redesigning the County website consideration while redesigning the County website ICT There is no digital centre in There is a digital centre in Olenguruone. It was the first Olenguruone- Kuresoi south place to set up a digital centre Challenges facing the Revenue system There are some few challenges in the revenue system but the department is working on it. Improvement of the pedestrian crossing The subsector will collaborate with other road agencies and make sure they are improved Vandalism of streetlights- Enforcement The subsector is working on mechanism to help it solve team be assigned to assist in the issue the issue of vandalism of streetlights. It will also look into involvement of the enforcement Hiring of Engineers The next financial year the department is planning to recruit more engineers Delayed BQs development for projects The issue will be addressed and appropriate action will be taken The subsector needs to prioritize is The department will realign its budget to match with its funding so as to achieve the set targets priorities The department needs to prioritize capital intensive projects Nakuru County Fiscal Strategy Paper 2021 123 SECTOR ISSUES RAISED FEEDBACK Road works in Kuresoi South haven’t The department will look into issue of the Kuresoi south been initiated especially in roads Olenguruone Encroachment of road reserves Road Reserves will be used for the intended purpose and actions will be taken on those encroaching w Public Civic Education to be conducted for Empowering of ward administrators and sub-county Administration and the various bills passed by the assembly administrators to help in civic education and to International/ for the public improve on mobility National Relations Increase Resource allocation to the civic education and public participation. Why there are no enforcement officers The subsector will work together with the PSB to ensure from the PWDs community PWDs are also involved in the recruitment process Decency of the enforcement officers at The public is required to report any indecent the markets, stages and others areas of enforcement officers and disciplinary actions will taken posting Criteria for selection of PWDs inclusivity PWDs are always encouraged to apply and attach registration card with application documents 5% of the PWDs do register first and apply for the various job opportunities What actions are being taken to the The Department works in committees thus means issue of understaffing in the various each committee has its responsibility. department The department also tries to work on the various departmental requests Criteria for deployment of staff Deployment is the work at the departments Employment of children attached to The board will look for a mechanism on how to the streets for casual jobs incorporate them while doing recruiting Is there a ceiling for the office of the There is a ceiling set by the CRA for recurrent governor expenditure Construction of an office for the first The department will put the request under lady consideration Nakuru County Fiscal Strategy Paper 2021 124 SECTOR ISSUES RAISED FEEDBACK Increase of allocation for the The department will also put into consideration the distribution of the sanitary pads so as to recommendation while preparing the next budget reach all the 55 wards Why the governor doesn’t give a status The governor always gives a status report each year report of projects? as expected Mentorship Programmes There is a director of special programmes who is in charge of internship and mentorship programmes Duplication of work with other sectors The Sector links with other sectors, however activities will be streamlined to avoid duplication. Nakuru Municipality manager be given Nakuru Municipality mobility plan is underway. enforcement and vehicle for mobility Cultural festivals haven’t been done Cultural festivals will be done annually, including since marathons in consultations with stakeholders. NAWASCO be under Nakuru municipal The board is advocating for one member to represent board the board in NAWASCO board How much is charged for land rates in Land rates in a Finance issue and the Finance Kaptembwo department is in charge. The Municipality to establish The board will consider having a rehabilitation centre rehabilitation centre to help drug for the Municipality. addicts. Independence of the Municipality The Municipal boards are independent Do Naivasha municipal have fire The board does not have fire engines but plan to engines have one in future but currently do depend on the one for the entire county. Recovery of lost assets and liabilities The board identify and map out its assets and liabilities. Benefits of dry port in Naivasha The Municipality will greatly benefit including job and investments opportunities creation to the residence. Need for proper enactment and The County always undertake public participation on implementation of finance bill finance bill and once passed into law , will always ensure proper implementation Leakages/loopholes in revenue New revenue system is in place and will seal all the collection loopholes and in addiction no cash payments. Nakuru County Fiscal Strategy Paper 2021 125 SECTOR ISSUES RAISED FEEDBACK Overall budget absorption rate for the The overall budget absorption for the county was at County 66%. PWD,s affairs including recruitment, There is disability fund that takes care of PWD’s issues, suitable equipment for children in there is a waiver currently, and PWD’s must have schools , waiver , interpreters in offices registration card numbers to benefit and must not and securing of tenders. misuse the offer. CBEF engagement in all sectors CBEF will sit down with County to identify the best working mechanism Collection of market fees be The County Treasury, will address the issue and urge automated the public to report on any corruption incident Procurement be fasten, departments The County treasury will investigate procurement are complaining problems and addressed them. PWD,S representations The County Assembly of Nakuru recognizes PWD’s and will always advocate for full representations. Difficulty in access to county assembly The County Assembly of Nakuru offices is open to the offices general public at normal working hours Projects Implementation County Assembly is an oversight entity and not implementing agency Upgrade of Facebook live covering of The Sub Sector will look at it and consider the proceedings and bills upload in the improvements where possible. website Technical experts during ward based There are technical experts to guide the public in public participation proper allocations of funds to identified projects. Nakuru County Fiscal Strategy Paper 2021 126 Annex X: Nakuru County Budget Calendar for the FY 2022/2023 ACTIVITY RESPONSIBLE DEADLINE 1 Performance Review and Strategic Planning County Treasury July-Aug 2021 1.1 Develop strategic plans Departments " 1.2 Prepare Annual Development Plans " " 1.3 Expenditure review " " 1.4 Preparation of Annual Work plans " “ 2 Develop and Issue County Budget Guidelines County Treasury 30th July 2021 3 Annual Development Plan submitted to County County Treasury 1st Sept. 2021 Assembly 4 Launch of Sector Working Groups County Treasury 5th Aug. 2021 5 Determination of Fiscal Framework Macro Working Group 6th Aug. 2021 5.1 Estimation of Resource Envelop County Treasury " 5.2 Determination of policy priorities " " 5.3 Preliminary Resource allocation to Sectors, " " Assembly & Sub Counties 5.4 Draft County Budget Review and Outlook " 21st Aug. 2021 Paper (CBROP) 5.5 Submission and approval by County Executive " 30th Aug. 2021 Committee 5.6 Tabling of CBROP to County Assembly " 9th Sept. 2021 5.7 Capacity building on MTEF Programme Based " 13th-17th Sept. 2021 Budget and Sector Reports 6 Preparation of County Sectoral Budget Line Ministries Proposals 6.1 Draft Sector Report Sector Working Group 3rd Oct. 2021 6.2 Submission of Draft Sector Report to County Sector Working Group 7th Oct. 2021 Treasury 6.3 Review of draft Sector Report Proposals Macro Working Group 18th-22nd Oct. 2021 7 Stakeholders/Public Participation Treasury/ Departments October 2021 8 The 2021/2022 Supplementary Budget 8.1 Develop and issue guidelines on the 2021/22 County Treasury November 2021 Revised Budget 9 Draft Budget Estimates/ County Fiscal Macro Working Group / Strategy Paper (CFSP) Departments 9.1 Public sector hearings on CFSP 2022 Macro Working Group 2nd-5th November, 2021 9.2 Budget hearings on Draft Budget Estimates Macro Working Group 2nd-5th November, 2021 9.3 Submission of Draft Budget Estimates and Departments 1st November, 2021 Final Sector Reports Nakuru County Fiscal Strategy Paper 2021 127 ACTIVITY RESPONSIBLE DEADLINE 9.4 Submission of Draft CFSP & Debt Paper to County Treasury 25th November, 2021 County Executive Committee for approval 9.5 Submission of CFSP to County Assembly for County Treasury 30th November, 2021 approval 9.6 Submission of Debt Management Strategy County Treasury 30th November, 2021 Paper to County Assembly for approval 10 Preparation and approval of Final Departments’ Programme Budgets 10.1 Issue final guidelines on preparation of County Treasury 20th December, 2021 2022/23 County Budget 10.2 Public Participation for identification of Ward County Treasury December 2021 based projects 10.3 Submission of Departmental Budget Line Departments 31st December, 2022 proposals to County Treasury 10.4 Consolidation of the Departmental Budget County Treasury 4th – 22nd January, 2022 Estimates and uploading to IFMIS Hyperion System 10.5 Submission of Original Budget Estimates for County Treasury 31st January, 2022 County Government to County Assembly 10.6 Review of Original Budget Estimates by County Assembly February, 2022 Departmental Committees 10.7 Report on Original Budget by Budget and County Assembly 28th February, 2022 Appropriations Committee (County Assembly) 11 11.1 Preparation of Annual Cashflow County Treasury 6th-10th June 2022 11.2 Submission of Annual Cashflow to Controller County Treasury 15th June, 2022 of Budget 11.3 Submission of Appropriation Bill to County County Treasury 15th March, 2022 Assembly 11.4 Resolution of County Assembly on Estimates County Treasury 25th March, 2022 and Approval 11.5 Budget Statement County Treasury 25th March, 2022 11.6 Appropriation Bill Passed County Assembly 31st March, 2022 Nakuru County Fiscal Strategy Paper 2021 128