Kwale County Budget Review and Outlook Paper 2018/2019

Abstract

The Kwale County Budget for financial year (FY) 2018/2019 was implemented against a background of promising country’s economic growth. The domestic economy is estimated to have expanded by 6.3 per cent in 2018 compared to 4.9 per cent in 2017.This economic growth was attributable to increased agricultural production, accelerated manufacturing activities, sustained growth in transportation and robust services sector activities. The FY 2018/2019 budget had actual revenues from all sources of Ksh10, 594,356,913.75 against a target of Ksh 11,518,017,573. The County received about 91.9 percent of the total expected revenues. Equitable share of revenues amounted to Ksh 7,536,000,000, County own source revenue was Kshs 315 Million and the Conditional grants received were Ksh 526.8 Million. During the period under review, a total of Ksh 7.7 Billion was spent representing an absorption capacity of 66.9 percent of the total approved budget for FY2018/2019. This was a decline compared to absorption rate of 71.99 percent achieved in the previous financial FY2017/2018. Kshs 6.71 Billion was spent in the previous financial year FY2017/2018 against a budget of Ksh 9.3 Billion. The main challenges faced in the implementation of the FY 2018/2019 was the delay in the release of funds from the National Treasury and the late procurement which was caused by adoption of the i-sourcing which had initial inefficiencies due capacity inadequacy.