REPUBLIC OF KENYA COUNTY ASSEMBLY OF LAIKIPIA LAIKIPIA COUNTY ASSEMBLY BUDGET AND APPROPRIATIONS COMMITTEE COUNTY FISCAL STRATEGY PAPER REPORT 16TH March 2015 1|Page TABLE OF CONTENT PREFACE ............................................................................................................ 3 ACKNOWLEDGMENT .................................................................................... 4 1. INTRODUCTION ........................................................................................ 5 2. OBSERVATIONS………………………………………………………6 3. RECOMMENDATIONS…………………………………………………7 2|Page Preface Mr. Speaker sir on behalf of the members of the Budget and Appropriation Committee, and in accordance with the PFM Act, section 117 I would like to take this opportunity to present to the House the Budget and Appropriations Committee report on the 2015/16 County Fiscal Strategy Paper submitted to the Assembly on February 27th 2015 and laid on the table of the House on 3rd March 2014. This is pursuant to Article 117 (2) requiring that interrogation and examination in consultation with the other sectoral committees, Heads of Sectoral departments and other stakeholders be done latest by 14 days after its submission. The oversight and accountability of the County Budget forms one of the County Assembly’s cardinal mandates. With the promulgation of the Constitution 2010 and the enactment of the PFM Act 2012, Legislature’s role in budget making was strengthened from being an organ for merely approving proposals from Executive to being makers of the budget. Budget approval by the County Assembly, only fulfils the minimum constitutional requirement. Effective execution of the mandate requires that County Assembly satisfies itself that the budget is credible, fiscally sound, and that the allocations of public resources is matched with the needs and priorities of the citizens. Further it behoves the County Assemblies, to ensure that the budget is implemented properly and efficiently without wastage. All the time ensuring and checking that the County Government’s stated agenda is affordable, equitable, comprehensive and transparent. Mr Speaker sir the Budget and Appropriation committee of the Laikipia County as currently constituted comprises of the following members: 1. 2. 3. 4. 5. Hon Wilson Wakahiu Hon Rose Wangu Hon Daisy Maitho Hon Paul Leshuel Hon Francis Mukuria Chair Vice Chair Member Member Member The mandate of the BAC is established under standing order 186 and is further given legal backing by the Constitution as well as the County Government Act (section 8) During the review the committee has held seven meetings with regard to the County Fiscal Strategy Paper (CFSP); held deliberations with the County Executive and invited submissions from interested organisations and the public through the media. We also received submissions from the sectoral departments and the County Assembly Service Board, all of which are considered in this report. 3|Page Acknowledgment Mr. Speaker sir we want to register our gratitude to the office of the Clerk, the Speaker, the staff of the county assembly, Madam Rose Wanjiru ( Budget Consultant ) for the support they have given to the committee during the period of concentration of this county fiscal strategy paper. The committee is also extremely grateful the CECs of the various sectoral committees and especially the CEC for Finance who led the process of engagement by sitting though our interrogation meetings. Mr. Speaker Sir, on behalf of the Committee I now have the pleasure and honour to present to this Honourable House the report and recommendations relating to the county fiscal paper for 2015/16 for debate and adoption. Hon. Wilson Wakahiu …………………………………………………. Chair ……………………………………………………. Vice Chair Hon . Rose Wangu Hon. Daisy Maitho …………………………………………………….. Member ……………………………………………………. Member Hon. Paul Leshuel Hon. Francis Mukuria 4 4|Page ……………………………………………………. Member INTRODUCTION The Budget and Appropriations Committee concurs that Executive has complied with the Constitution and PFM Act in submission of the CFSP to the County Assembly.. The report covers most of the broad economic and development needs of the people of Laikipia, if only there could be sufficient resources to translate these proposals into outcomes. Mr. Speaker, I want to assure this House that the Committee has executed its mandate according the PFM Act with diligence and broad understanding of the citizen of the Laikipia County. The Budget and Appropriations Committee concur that the County Fiscal Strategy Paper has been prepared while making due cognisance of the linkages between planning and budgeting. OBSERVATIONS 1. The 2014/15 Revised county budget 3.632bn forms the baseline upon which the 2014/15 budget will be prepared which is expected to be from 4.15bn. 2. The recommendations of Commission on Revenue Allocation ( CRA ) on the newly created offices and the County Assembly have been adhered to. It is important to note that this has guided the recurrent Ceilings in these departments. 3. The Fiscal Framework as provided in chapter four ( Page 15 of CFSP ) did not provide the actuals to date of the 2014/15 Budget, the 2015/16 Budget Estimates Summary and the Budgetary projections of 2016/17 which would have helped anyone know the expected changes in the Medium Term. 4. The priority areas per sector provided are not expounded. What was provided was just programs without sub-programs or flagship projects intended in the respective departments. 5. The County Treasury has continuously projected to collect more revenue without elaborating on the rates, charges, fees and licences and how much is anticipated from each one of them. A table indicating revenue collection in 2014/15, and projections in 2015/16 leading up to medium term 2017/ 18 ought to have been provided. 6. The County Assembly projection total is wrong ( i.e. 341m instead of 361m ) and does not take into account the new expected changes like Staff Hardship Allowances, Staff Medical Scheme and changes in general Allowances which have since been gazetted. 7. Under the Gender, Youth and Sports Department ( which is not a fully Devolved Function ) the development projects are not clear as some are undertaken by the National Government. 8. The Agriculture Sector has most of its activities being extensional and has the second highest number of staff after Health. The sector ceilings in this department do not reflect this. 5|Page 9. The County Public Service Board under the County Administration Department is an autonomous Board and its Budget has previously been disregarded. RECOMMENDATIONS. 1. The Executive should ensure that the Estimates that will be presented to the County ‘Assembly by April 30th are factual, reliable, credible and predictable and guided by the ceilings of this CFSP. The anticipated revenues from both national and county levels should be well projected and realistic. 2. The Executive must prepare the budgets using programme based budgeting which enable the sectors articulate the priority programmes and the costs of achieving them. The programme based budgeting should provide clear objective and purposes of the intended allocations in each sector. 3. The Finance and County Planning Committee have got no option but push the County Executive Department to make sure that all revenue loopholes are sealed and that the much anticipated Revenue Automation is realised as a matter of fact. As such, the committee recommends that the ceiling for revenue collection be projected at 460million. 4. To avoid duplication of programs between the National Government and the County Government in the Gender Department, the respective CEC should rearrange her priority programs and align them with the County Mandate. The committee recommends the ceiling in this department to be reduced by 15m and the same redistributed to the Agriculture department (10million) and Education Department (5million ). 5. The County Assembly ceiling total should be maintained at 400million recurrent and 70million Development. This will help take care of the added Fiscal responsibilities and realise the resolution of this house to move the County Headquarters. 6. In preparing the main Budget 2015/16, the Budget of the County Public Service Board should be viewed as an independent one and the mandate of the Board reflected in the same. The main Budget must take into consideration the views of the Board members. Mr, Speaker Sir, I beg to move and plead with the house to adopt this report with the proposed changes. Thank You! 1. Annex: CFSP AS ANNEX 6|Page