COUNTY GOVERNMENT OF UASIN GISHU

THE COUNTY TREASURY

COUNTY BUDGET REVIEW AND OUTLOOK

PAPER 2013/2014
(CBROP)

SEPTEMBER 2014

 County Budget Review and Outlook Paper (CBROP) 2014

The County Treasury P. O. Box 40-30100 ELDORET, KENYA

Email: info@uasingishu.go.ke
Website: www.uasingishu.go.ke

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FORWARD
The Constitution of Kenya 2010 introduced significant changes to the governance
structure in Kenya that saw the creation of national and county governments each
with clear functions. To operationalize the fiscal discipline spirit within the
constitution, the Public Finance Management Act was enacted in 2012.
The Act transformed budget making process in Kenya for both level of
governments. Besides introducing reforms in the public financial management
system in the country, the PFM Act entrenched financial discipline and fiscal
responsibility principles for the respective governments.
The County Budget Review and Outlook Paper (CBROP) was prepared by the
County Treasury pursuant to the provisions of section 118 of the Public Finance
Management (PFM) Act 2012. The Act requires that the budget review and outlook
paper (BROP) is submitted to the County Executive Committee by 30 th September
of the year; the BROP being one of the budget documents meant to enhance
financial discipline and fiscal responsibilities within the countys financial
management framework.
The CBROP presents the actual fiscal performance for financial year 2013/14 and
indicating deviations from the budget appropriation for that year. In addition, it
provides details on how actual financial performance for the previous financial
year may have affected compliance with the fiscal responsibility principles.
Further, the updated macroeconomic outlook opined to in this paper also provides a
basis used to revise the 2013/14 financial year budget in the context of the
Supplementary Estimates, as well as set out the broad fiscal parameters for the next
budget.
The paper also gives an insight into the 2013/2014 budget; key government
strategies and policies for the management of revenues and expenditures; and the
medium-term outlook for government revenues and expenditures.

SHADRACK SAMBAI,
CEC, FINANCE AND ECONOMIC PLANNING
UASIN GISHU COUNTY GOVERNMENT
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ABBREVIATIONS AND ACRONYMS

A.IA

Appropriation in Aid

CBROP

County Budget Review and Outlook Paper

CFSP

County Fiscal Strategy Paper

CIDP

County Integrated Development Plan

ECDE

Early Childhood Development Education

IFMIS

Integrated Financial Management Information System

NCPB

National Cereals and Produce Board

PFMA

Public Finance Management Act

TABLE OF CONTENTS
YFORWA

ABBREVIATIONS AND ACRONYMS...........................................................................3

1.0

INTRODUCTION...................................................................................................5

1.1

LEGAL FRAMEWORK.......................................................................................5

1.2

OBJECTIVES OF THE CBROP..........................................................................6

2.0

REVIEW OF FISCAL PERFORMANCE IN FY 2013/14......................................7

2.1

OVERVIEW.........................................................................................................7

2.2

FISCAL PERFORMANCE..................................................................................8

2.2.1

Revenue.........................................................................................................8

2.2.3

Expenditure..................................................................................................10
3 | Page

3.0

RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK............................12

3.1

RECENT ECONOMIC DEVELOPMENTS......................................................12

3.2

MACROECONOMIC OUTLOOK AND POLICIES.........................................13

3.3

GROWTH PROSPECTS (REVENUE OUTLOOK)..........................................14

3.4

MEDIUM TERM FISCAL FRAMEWORK.......................................................17

4.0

RESOURCE ALLOCATION FRAMEWORK......................................................18

4.1

EXPENDITURE JUSTIFICATIONS.................................................................18

4.2

FISCAL RISKS TO THE OUTPUT...................................................................19

4.3

EXPENDITURE DRIVERS...............................................................................19

5.0

CONCLUSION......................................................................................................20

ANNEX 1:.......................................................................................................................22

1.0 INTRODUCTION
This section presents the legal framework underpinning the county budget review
and outlook paper (CBROP). It also gives objectives of CBROP.
1.1

LEGAL FRAMEWORK

Section 118 of the Public Finance Management (PFM) Act 2012 requires the
County Treasury to prepare County Budget Review and Outlook Paper (CBROP)
for the county and the same to be submitted to the County Executive Committee by
30th September of the year. This BROP was therefore prepared by the County
Treasury in pursuant of this provision. The PFMA 2012 section 118 (1) states thus;
the county treasury shall

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 prepare a County Budget Review and Outlook Paper in respect of the county
for each financial year; and
submit the paper to the County Executive Committee by the 30 th September
of that year.
The County Budget Review and Outlook Paper is required to detail the fiscal
performance for the previous financial year and to indicate how this affects the
financial objectives contained in the CFSP of that particular year. However, this is
not possible in this years CBROP because there was no CFSP for the financial
year 2013/2014 given that the county government only came into being after the 4 th
March, 2013 General

elections.

The last financial year was a transition period

meant to lay foundation and guide the operations of the devolved structure of
governance. This CBROP cannot therefore contain information to show variations
in the forecasts in the CFSP.
Upon this background the CBROP does not make any reference to the CFSP and
only looks at the fiscal outlook of the financial year and the medium term.
The county will comply with fiscal responsibility principles and ensure
transparency and accountability by providing feedback on performance indicators
as envisaged in the Constitution 2010 and the Public Finance Management Act
2012.

1.2

OBJECTIVES OF THE CBROP

The CBROP draws its objectives from Public Finance Management Act 2012
section 118 (2). The main objectives are to specify;

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a) The details of the actual fiscal performance in the previous year compared to
the budget appropriation for that year;
b) The updated economic and financial forecasts in relation to the changes from
the forecasts in the most recent County Fiscal Strategy Paper(CFSP);
c) Any changes in the forecasts compared with the CFSP;
d) How actual financial performance for the previous financial year may have
affected compliance with the fiscal responsibility principles, or the financial
objectives in the CFSP for that financial year; and
e) Reasons for any deviation from the financial objectives in the CFSP together
with proposals to address the deviation and the time estimated for doing so.
In summary, this BROP is expected to present a review of the fiscal performance
for the financial year 2013/2014. It is also expected to provide a summary of the
national macroeconomic outlook and how this affects the Countys economic
performance.
The fiscal framework presented in this document provides a strong basis for future
developments for the people of Uasin Gishu. The paper also presents an overview
of budget financing sources that includes revenue and grants. In the last section of
the document, the paper presents conclusions and the way forward.
2.0

REVIEW OF FISCAL PERFORMANCE IN FY 2013/14

This section reviews the actual financial performance for the FY 2013/14 and how
this might have affected compliance with the fiscal responsibility principles.
2.1

OVERVIEW

The fiscal responsibility principles are meant to ensure prudency and transparency
in the management of public resources. The principles as illustrated in the Public
Finance Management Act 2012 Section 15 require that:
a) Over the medium term, a minimum of 30% of the county budget shall be
allocated to development expenditure;
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b) The county governments expenditure on wages and benefits for public

officers shall not exceed a percentage of the county governments revenue as
prescribed by the regulations;
c) Over the medium term, the county governments borrowings shall be used
only for the purpose of financing development expenditure and not for
recurrent expenditure;
d) Public debt and obligations shall be maintained at a sustainable level as
approved by county assembly;
e) Fiscal risks shall be managed prudently;
f) 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 fiscal performance in 2013/14 faced quite a lot of challenges especially
occasioned by revenue shortfalls and increased expenditure pressures. This led to
supplementary budgets being presented to county assembly for consideration.
However, fiscal performance was generally satisfactory.
2.2

FISCAL PERFORMANCE

2.2.1 Revenue
Table 1: Consolidated Revenue July 2013 to June 2014
ITEM
Court Fines
Financial Management Unit
Street Parking
Land Rates Management
Unit
Business Permit
Management Unit
Cess Management Unit
Home Craft Center
Management
Social Service and Housing
Management Unit
Nursery School Fees

1ST
QUARTER
1,889,425.00
2,646,965.00
13,880,010.0
0
12,481,498.0
0

2ND
QUARTER
1,593,615.00
1,856,773.00

3RD
QUARTER
1,415,672.00
4,667,942.00

4TH
QUARTER
2,005,472.00
3,943,673.00

TOTAL
6,904,184.00
13,115,353.00

18,574,890.00

19,743,925.00

20,410,422.00

72,609,247.00

9,744,392.00

70,995,531.00

30,192,120.00

123,413,541.00

4,748,481.00
653,502.00

1,065,640.00
2,967,087.00

87,567,340.00
8,135,764.00

21,013,806.00
3,281,456.00

114,395,267.00
15,037,809.00

35,400.00

34,800.00

37,300.00

32,250.00

139,750.00

9,578,174.00
261,950.00

7,826,285.00
156,700.00

10,320,502.00
329,300.00

8,662,974.00
257,500.00

36,387,935.00
1,005,450.00

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Epidemic Control and

Inspection Unit
Cemetery Unit
Pest Control Unit
Health Centers and
Maternity Fees
Refuse Collection Unit
Slaughter House
Management Unit
Engineering & Urban
Planning Management Unit
County Markets
Bus Park Fee
others charges
Cooperative societies Audit
and supervision
Uasin Gishu District
Hospital
Huruma Sub-District
Hospital
Alcoholic Drinks License
Direct Banking
TOTAL

138,400.00
213,600.00
49,720.00

282,550.00
177,400.00
48,210.00

706,460.00
226,200.00
381,380.00

1,243,800.00
224,100.00
1,112,640.00

2,371,210.00
841,300.00
1,591,950.00

845,590.00
298,300.00

341,020.00
151,415.00

674,000.00
9,071,760.00

766,050.00
1,648,184.00

2,626,660.00
11,169,659.00

1,201,225.00
10,263,177.0
0
3,803,612.09
13,762,240.0
0
20,925.00

1,433,230.00

2,670,570.00

983,595.00

6,288,620.00

8,919,373.00
2,955,771.00

22,754,668.00
4,455,536.00

13,290,725.00
3,978,550.00

55,227,943.00
15,193,469.09

15,183,815.00
94,120.00

20,912,106.00
1,500,970.00

19,782,101.00

69,640,262.00
1,616,015.00

170,650.00

317,770.00

488,420.00

17,492,091.2
5
94,264,285.3

4,932,218.80
78,339,304.80

0.00

0.00

184,400.00
13,421,000.00

184,400.00
13,421,000.00

44,688,086.65
191,256,274.6

101,704,722.05
665,374,166.14

34,592,325.35
301,514,301.3

Graphical illustration of the quarterly revenue performance during the period under
review is given below:

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Graph 1: Quarterly Revenue Performance

REVENUE (KES)
350,000,000.00
300,000,000.00
250,000,000.00
200,000,000.00

REVENUE (KES)

150,000,000.00
100,000,000.00
50,000,000.00
0.00
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Graph 1above shows graphical picture of quarterly revenue performance during the
period under review. Revenue collection dropped in the second quarter (OctoberDecember 2013) from the previous figure in the first quarter (July-September
2013). However, collections increased sharply in the third quarter (January-March
2014), before again dropping in the fourth quarter (April-June 2014). The sharp
increase in revenue collection in quarter three was because that is normally the
peak period in revenue collection. This is the time during which clients make
payments on land rates and renewal of single business permits by entrepreneurs.

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Table 2: Projected Revenue from Local Sources 2013/14 FY.

ACCOUNT DESCRIPTION

ESTIMATES

LAND RATES

316,176,614

BUSINESS PERMITS

114,733,000

CESS

56,871,362

PLOT RENTS

6,600,000

ADMINISTRATIVE SERVICES FEES

6,974,007

VARIOUS FEES

16,060,000

COUNTY'S NATURAL RESOURCES

EXPLOITATION

10,605,000

SALES OF COUNTY ASSETS

240,000

COUNTY PREMISES & ASSETS RENTING /

HIRING

1,038,500

LEASE / RENTAL OF COUNTY'S

INFRASTRUCTURE ASSETS

INTERESTS & REVENUES FROM FINANCIAL

INVESTMENTS

11,300,000

INSURANCE CLAIMS RECOVERY

500,000

MEDIUM TERM LOANS (1-3 YR REPAYMENT)

LONG TERM LOANS (OVER 3 YR RPAYMENT)

TRANSFERS FROM RESERVE FUNDS

DONATIONS

FUND RAISING EVENTS

SUB-COUNTY/MARKET CENTRE FEES

17,042,560

VEHICLE PARKING FEES

97,131,887

HOUSING

32,166,720

SOCIAL PREMISES USE CHARGES

SCHOOL FEES

2,000,000

OTHER EDUCATION-RELATED FEES

PUBLIC HEALTH SERVICES

3,000,000
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PUBLIC HEALTH FACILITIES OPERATIONS

28,910,000

ENVIRONMENT & CONSERVANCY

ADMINISTRATION

30,000,000

SLAUGHTER HOUSES ADMINISTRATION

15,155,500

WATER SUPPLY ADMINISTRATION

SEWERAGE ADMINISTRATION

TECHNICAL SERVICES FEES

63,274,830

EXTERNAL SERVICES FEES

1,600,000

TOTAL RECEIPTS FROM LOCAL SOURCES

831,380,003

2.2.3 Expenditure
Table 3: Recurrent Expenditures for the periods July 2013-June 2014
S/NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

RECURRENT EXPENDITURE
DEPARTMENTS
County Assembly
Office of the Governor and Deputy Governor
County Executive Committee
County Public Service
Finance
Agriculture
Environment & Natural Resources
Education, Youth Affairs & Social Services
Health Services
Physical Planning & Development
Public Works
Trade
TOTAL EXPENDITURE RECURRENT

Estimates
Expenditures Balance
563,390,967
517,173,485
46,217,482
624,103,216
520,473,296 103,629,920
33,211,214
10,389,030
22,822,184
25,689,168
3,523,085
22,166,083
345,289,730
296,579,395
48,710,335
172,229,513
156,611,638
15,617,875
76,101,804
51,584,171
24,517,633
192,936,628
95,283,645
97,652,983
614,178,573
612,118,881
2,059,692
78,926,604
60,129,005
18,797,599
239,901,708
188,969,112
50,932,596
40,278,565
15,960,142 24,318,423
3,006,237,690 2,528,794,885 477,442,805

Note: The balances indicated in the table 2 above were as a result of short fall in
revenue collection (over-budgeting).

Table 4: Development Expenditures for the Periods July 2013-June 2014

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DEVELOPMENT EXPENDITURE
DEPARTMENTS

Estimates

Commitments
Expenditure

Total
Payments
Commitment

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Balance

1.

12,500,000
County Assembly
Office of the Governor and
Deputy Governor
County Executive
Committee

2.
3.

12,500,000

12,500,000

5,000,000

5,000,000

5,000,000

60,000,000

5,000,000
10,000,000

0
-

4.

County Public Service

5.

0
Finance

5,000,000

6.

58,915,816
Agriculture
Environment & Natural
Resources
Education, Youth Affairs &
Social Services

7.
8.

60,000,000

1,084,184

140,000,000

13,076,000

126,924,000

140,000,000

170,000,000

170,000,000
92,292,925

170,000,000

120,000,000

27,707,075

120,000,000

13,800,000

1,013,000,000
80,000,000

76,868,000
-

1,410,538,
046

1,619,300
,000

9.
Health Services
Physical Planning &
Development

10.

13,800,000
13,800,000

11.
Public Works

1,013,000,000

158,762,695

12.
ICT & e-government

80,000,000

3,132,000

13.
Trade

TOTAL EXPENDITURE

1,624,300
,000

854,237,30
5

203,761,954

The development expenditure was on various development projects across the

county.
3.0

RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK

3.1

RECENT ECONOMIC DEVELOPMENTS

Global and national economic events have a direct bearing on the countys
economic performance. The world trade volume expanded in the first and second
quarter of 2014 which saw Kenyas exports register significant growth during the
period. Similarly, the national economy posted an enhanced growth of 4.6 percent
in 2013 and it impacted positively on the countys economy as well. In the first
three quarters of 2013 the economy expanded by 4.6 percent on average compared
13 | P a g e

5,000,000

to 4.4 percent in the same period in 2012. This growth was mainly attributed to
expansions in building and construction, mining and quarrying, wholesale and
retail, manufacturing, transport and communication, financial intermediation,
agriculture and forestry sectors.
In the same period, the Uasin Gishu Countys economy experienced similar growth
largely driven by increased investments in growth potential areas of agriculture,
education; health services and physical infrastructure due to increased inflows
from national government to support devolved functions. In addition, expansion of
trade in the county as a result of favorable policies put in place by the county
government also contributed to this growth. Further, investments in the
construction industry remained robust during the period against a background of
stable interest rates coupled with ongoing county government infrastructural
projects and private sectors resilient participation in the real estate development.
3.2

MACROECONOMIC OUTLOOK AND POLICIES

The macroeconomic stability witnessed in 2013 spilled into the first quarter of
2014. This macroeconomic stability experienced during the period under review
was supported by a projected stable low inflation, moderate interest rates and
stable exchange rate which created a conducive environment for improved
economic growth. Inflation declined from double digits in 2011 towards 5 percent
in the recent months under review. On average, annual inflation declined to 5.7
percent in December 2013. In line with the decline in inflation short-term interest
rates also eased in the same period.

In addition, the shilling exchange rate

stabilized against major currencies during the period.

14 | P a g e

However, the county economy still faced a number of internal and external risks
during the period under review. Poor rainfall experienced in the county during the
first and second quarters of 2014 which coincided with the planting season almost
dampened the agricultural sector growth. Domestic oil prices have been on an
upward trend since January 2014 despite global prices easing downwards. The
high fuel prices experienced during the period and delays in distribution of
fertilizers by NCPB also affected investments in agriculture. Furthermore, the
insufficient rains experienced in early 2014 within the water catchment regions for
hydro-power generation led to countrys dependent on thermal power generation
which pushed up the cost of energy and consequently the cost of production and
doing business. Insecurity concerns remained a key obstacle to the tourism
industry over the period which led to underperformance of the sector.
In conclusion, the county government during the period remained committed to
implementing policies as set out in the CIDP.
3.3

GROWTH PROSPECTS (REVENUE OUTLOOK)

Over the period, the county government instituted measures to expand revenue
base and eliminate revenue collection leakages. In addition, A.I.A from devolved
functions and the automation of revenue collection was expected to enhance the
revenue yield. Further, institutionalization of public financial management systems
was anticipated to form a basis for sustained growth.
However, during the period, the county government managed to collect Kshs.
665,374,166.14, a shortfall of 20 percent against a target of kshs. 831,380,003
budgeted.

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Table 5: Revenue outlook

Revenue Type
Local Revenue
Central Government
Transfer
Total

Projected Estimates
2015/2016
2016/2017

2013/14

2014/2015

Estimates

Estimates

Estimates

Estimates

1,193,421,62

1,217,290,06

1,278,154,56

4,419,574,96

4,507,966,46

4,733,364,78

5,612,996,59

5,725,256,52

6,011,519,35

665,374,166.14
3,796,628,687
4,462,002,853.14

Table 6: Local Revenue Outlook by Revenue Stream

LOCAL REVENUES:
COST CENTRE

ACCOUNT
DESCRIPTION

1.0 PUBLIC SERVICE MANAGEMENT

Law court
Court Fines
2.0 FINANCE AND ECONOMIC PLANNING
Financial Management Unit
All Admin/
miscellaneous fees
3.0 TRADE, COOPERATIVES AND TOURISM
Main Municipal Market
Produce Inspection
Fee
Eldoret West Market
Market Entrance /
Gate Fee
Wholesale Market
Market Stalls Rent
Kimumu Market
Market Entrance /
Gate Fee
Kahoya Market
Market Entrance /
Gate Fee
Main Bus Park
Enclosed Bus Park
Fee
Open Air Market Fee
Livestock
Auction/Sales Fees
Hawkers Market &
Sub-County Markets
Business Permit Management Unit Business Permits
Current Year &

Estimated
Projections
2014/2015

Estimated
Projections
2015/2016

Estimated
Projections
2016/2017

12,000,000

12240000

12852000

17,000,000

17340000

18207000

500,000

510000

535500

4,000,000

4080000

4284000

8,400,000
350,000

8568000
357000

8996400
374850

150,000

153000

160650

60,000,000

61200000

64260000

10,000,000

10200000

10710000

8,000,000

8160000

8568000

200,000,000

204000000

214200000

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Penalties
Drilling calibration
Cooperative societies
Audit and
supervision

5,000,000
1,000,000

5100000
1020000

5355000
1071000

Enclosed Bus Park

30,000,000
Fee
Street Parking
Street Parking Fee &
108,000,000
Clamping Fee
Engineering & Urban Planning
Right-of-Way / Way4,000,000
Management Unit
Leave Fee (KPLN,
Telkom, etc.)
Engineering & Urban Planning
Sign Boards &
100,000,000
Management Unit
Advertisement Fee
Fire-Fighting & Ambulance
Fire-Fighting
25,000,000
Management Unit
Services
5.0 LANDS HOUSING AND PHYSICAL PLANNING
Land Rates Management Unit
Land Rates Current
290,246,919
Year & Penalties
Housing Management Unit
Housing Estates
65,000,000
Monthly Rent
Engineering & Urban Planning
Buildings Plan
25,000,000
Management Unit
Approval Fee
Engineering & Urban Planning
Buildings Inspection
15,000,000
Management Unit
Fee
6.0 EDUCATION, CULTURE AND SOCIAL SERVICES
Education Management Unit
Council Premises
50,000
Occasional Hire
(Offices, etc.)
Uasin Gishu Assessment centre
Nursery Schools Fee
900,000
7.0 HEALTH SERVICES
Epidemic Control & Inspection
Innoculation Fee
3,000,000
Unit
Epidemic Control & Inspection
Medical Examination
3,000,000
Unit
Cemetery Unit
Burial Fees
2,000,000
Pest Control Unit
Food Quality
10,750,000
Inspection Fee
County Health Facilities
Health Centres
23,000,000
Services Fee
8.0 ENVIRONMENT, WATER AND NATURAL RESOURCES
Refuse Collection Unit
Refuse Collection Fee
35,000,000
Environment
Lease of water
46,000,000
(Eldowas)
9.0 AGRICULTURE, FISHERIES AND LIVESTOCK
Cess Management Unit
Wheat Maize, Milk and
60,000,000
other Produce fees
Slaughter House Management
Slaughtering Fee
16,074,710
Unit

30600000

32130000

110160000

115668000

4080000

4284000

102000000

107100000

25500000

26775000

296051857.4

310854450.2

66300000

69615000

25500000

26775000

15300000

16065000

51000

53550

918000

963900

3060000

3213000

3060000

3213000

2040000
10965000

2142000
11513250

23460000

24633000

35700000
46920000

37485000
49266000

61200000

64260000

16396204.2

17216014.41

Cooperative societies Audit and

supervision
4.0 ROADS
Sosiani Matatu Park

17 | P a g e

Veterinary Services
TOTAL LOCAL REVENUE

3.4

5,000,000

5100000

5355000

1,193,421,629

1,217,290,062

1,278,154,565

MEDIUM TERM FISCAL FRAMEWORK

Though the county government had laid most of its governance structure, there
were significant challenges that hindered proper implementation of its budget
denying the anticipated level of grass-root induced growth. It is also important to
note that during the period under review, the county did not have any deficits in its
budget.
In its bid to exercise prudency in fiscal management during the period, the county
treasury ensured there was prioritization of county public spending while cutting
on non-essential spending. In addition, the focus was to modernize revenue
collection through automation and opening new revenue streams. Borrowing was
also pursued in line with the set laws and regulations to manage cash flow issues
and expand infrastructure development.
Going forward, on the expenditure front, the county Government will continue
with rationalization of expenditure to improve efficiency and reduce overlaps and
wastage. Expenditure management will be strengthened with implementation of
the Integrated Financial Management Information System (IFMIS) and other
appropriate financial management systems across all departments. In addition, the
PFM Act, 2012 is expected to accelerate reforms in expenditure management
system at the county. Further, adoption of Programme Based Budgeting in the
budgeting process by the county Government will allow tracking of
implementation of projects and programmes.

18 | P a g e

Further, the revenue collection performance will be underpinned by ongoing efforts

to revamp revenue collection. These efforts include: automation of revenue
collection; allocation of more funds for valuation roll to determine rates; spatial
planning to map out economic activities with the intention of raising more
resources; classification of urban areas with intent to raise revenue through parking
charges and bus parks; and intensification and expansion of revenue streams. In
addition to the proposed Finance Bill 2014, the County Government is reviewing
all other tax and Cess policies in order to simplify and modernize them.
4.0

RESOURCE ALLOCATION FRAMEWORK

4.1

EXPENDITURE JUSTIFICATIONS

Future resource allocation and utilization over the medium term will be guided by
the emerging priorities, county plans and the principles of PFM Act to ensure
effective utilization of public finances. It is also important to note that sector
allocations are informed by the county goals and people's aspirations as captured in
the County Integrated Development Plan (CIDP).
Whereas expenditure cuts are targeted on the one-off expenditures that do not
require additional expenditure for the subsequent financial years, expenditure
increments are informed by core needs identified through analysis by fiscal experts
in the County as well as from insightful and welcome submissions from the county
public and submissions by individuals and organizations on the 2014/15 budget
proposals.
4.2

FISCAL RISKS TO THE OUTPUT

However, these prospects will be constrained by certain risks both in the short and
medium term. The risks to the 2014/15 financial years budget include challenges
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in revenue performance as the county continues to put structures in place, seal loop
holes and expand the revenue base. The current process of county restructuring
and rationalization of staff is expected to exert pressure on wage expenditures.
With commitment in improving infrastructure within the county, the share of
resources going to priority physical infrastructure sector, such as roads and water
will rise over the medium term.
In addition, systemic risks such as high fuel prices, high food prices, eroding
Kenya shilling against major currencies and inflation will pose a major challenge
to growth as it will constrain consumption and productivity. Other risks that need
to be addressed include declining agricultural productivity, insecurity, wage bill
pressures and transition challenges.
4.3

EXPENDITURE DRIVERS

County development initiatives to be implemented in the coming Fiscal Years are

contained in the CIDP whose development proposals were identified by the
residents of Uasin Gishu County through a consultative process. All the sectors in
the county had priority programmes identified. These proposed programmes will
drive expenditures for the five Fiscal Years. These key expenditure drivers in the
respective sectors include:
Health Sector: Improvement and upgrading of health facilities; service delivery
enhancement; and supply of requisite drugs and equipments.
Agriculture Sector: Cash crops development, productivity and technology
adoption, fruits and vegetables enhancement, promotion and support of fish
farming, livestock production enhancement initiatives, value addition and
marketing, and value chain linkages.
20 | P a g e

Education Sector: ECDE strategy, schools infrastructural enhancement,

vocational and tertiary training strategy and quality enhancement in educational
institutions; sports activities initiatives and cultural promotion.
Infrastructure Sector: roads construction and improvement, public works quality
assurance and street lighting.
ICT and e-government Sector: Management Information Systems (MIS) and ICT
in public institutions and communities.
Environment Sector: Improvement of water supply infrastructure, water
management systems and waste disposal systems. Others are environmental
conservation strategies and other natural resources management and harnessing
systems, and electricity connections to public institutions.
Trade Sector: Trade promotion and marketing strategies; Tourism marketing
strategies; Enterprise creation, incubation and commercialization; value addition.
Lands, Housing and Physical Planning: County Spatial Planning; Local
development planning; Housing Development.
5.0

CONCLUSION

The fiscal outlook presented herein will seek to achieve the objectives outlined in
the PFM Act and lay ground for the next financial year in terms of preparing the
CBROP and CFSP. Fiscal discipline will be important in ensuring proper
management of funds and delivery of expected output, outcome and impacts.
Effective and efficient utilization of funds especially on capacity building on
different sectors of the county will be crucial in ensuring that the county gets to
deliver on its functions.

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ANNEX 1:
RECURRENT EXPENDITURE
TITLE AND DETAILS
COUNTY ASSEMBLY
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL

Estimates
160,759,619
402,631,348
563,390,967

Expenditures
160,463,640
356,709,845
517,173,485

Balance
295,979
45,921,503
46,217,482
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OFFICE OF THE GOVERNOR

AND DEPUTY GOVERNOR
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL

336,822,908
287,280,308
624,103,216

328,823,920
191,649,376
520,473,296

County Executive Committee

Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL

14,901,214
18,310,000
33,211,214

1,075,949
9,313,081
10,389,030

7,998,988
95,630,932
103,629,920
13,825,265
8,996,919
22,822,184

1,291,540
2,231,545
3,523,085

1,788,128
20,377,955
22,166,083

191,904,326
104,675,069
296,576,395

4,210,357
44,499,978
48,710,335

148,832,717
7,778,921
156,611,638

4,408,839
11,209,036
15,617,875

41,494,440
10,089,731
51,584,171

15,887,663
8,629,970
24,517,633

75,265,858
20,017,787
95,283,645

57,636,795
40,016,188
97,652,983

568,372,706
43,746,175
612,118,881

863,060
1,196,632
2,059,692

County Public Service

Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
FINANCE
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
AGRICULTURE
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
ENVIRONMENT & NATURAL
RESOURCES
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
EDUCATION, YOUTH AFFAIRS
& SOCIAL SERVICES
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
HEALTH SERVICES
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL
PHYSICAL PLANNING & DEVT

3,079,668
22,609,500
25,689,168

196,114,683
149,175,047
345,289,730

153,241,556
18,987,957
172,229,513

57,382,103
18,719,701
76,101,804

132,902,653
60,033,975
192,936,628

569,235,766
44,942,807
614,178,573

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Personal Emoluments (PE)

Operations & Maintenance (OM)
TOTAL

67,307,498
11,619,106
78,926,604

54,168,187
5,960,818
60,129,005

13,139,311
5,658,288
18,797,599

PUBLIC WORKS
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL

150,117,977
89,783,731
239,901,708

101,555,412
87,413,700
188,969,112

48,562,565
2,370,031
50,932,596

TRADE
Personal Emoluments (PE)
Operations & Maintenance (OM)
TOTAL

16,292,565
23,986,000
40,278,565

8,281,326
7,678,816
15,960,142

8,011,239
16,307,184
24,318,423

3,006,237,690

2,528,794,885

477,442,805

1,624,300,000

203,769,554

1,420,530,440

4,630,537,690

2,732,564,439

1,897,973,251

TOTAL EXPENDITURE
RECURRENT
DEVELOPMENT EXPENDITURE
TOTAL EXPENDITURE
DEVELOPMENT
TOTAL EXPENDITURES
(REC+DEV)

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