Nairobi City County Fiscal Strategy Paper 2021

Abstract

The Nairobi County Fiscal Strategy Paper is prepared pursuant to section 117(1) and (6) of the Public Finance Management Act (PFMA), 2012, and will provide the fiscal policy direction towards the budget 2021/2022. The CFSP 2021 is the fourth paper towards the implementation of the CIDP 2018-2022, and focus remains on the finalization of the county’s eight development objectives, while at the same time proposing interventions that will cushion Nairobian’s from the effects of the Covid-19 Pandemic and help them towards the recovery path in consonance with the Budget Policy Statement 2021. The Government did not report much successes in the FY 2019/2020 due to the Covid-19 pandemic that largely affected County’s performance both in revenue collection and expenditure. Total expenditures by commitments in financial year 2019/2020 amounted to Ksh. 23.35 B against a target of Ksh. 36.98 B. This paper proposes a budget of Ksh. 37.1 Billion, which will finance both the retained functions, and the ones transferred to NMS; a 31.9 % increment from the final accounts of FY 2019/2020, where Ksh 20.7 B was actualized. It is projected that a total of Ksh. 19.8 Billions will be collected from own source revenue (53.4% of total) and Ksh 17.3 Billion as external revenue (46.6% of total).