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COUNTY FISCAL STRATEGY PAPER FOR THE FINANCIAL
YEAR 2016/2017
Table of ContentsCHAPTER ONE: OVERVIEW 1
1.1 LEGAL FRAME WORK...................................................................................................................1
1.2 Statement of Objects and Rationale............................................................................................1
1.3 Overview.....................................................................................................................................2
1.3 RECENT ECONOMIC DEVELOPMENTS..........................................................................................3
1.3.1 MACRO ECONOMIC PERFOMANCE INDICATORS 3
1.3.2 COUNTY ACHIEVEMENTS 8
1.4 2015/16 FISCAL PERFOMANCE AND EMERGING CHALLENGES.................................................21
1.5 2015/16 REVISED ESTIMATES....................................................................................................23
CHAPTER TWO: MACRO-ECONOMIC POLICY FRAMEWORK 25
2.1 Kenya’s Growth Prospects.........................................................................................................25
2.2 Key Revenue Sources.................................................................................................................25
2.2.1 Rates 26
2.2.2 Parking Fees 26
2.2.3 Building Permits 26
2.2.4 Single Business Permit (SBP) 26
CHAPTER 3: POLICIES TO ACHIEVE MEDIUM TERM OUTLOOK 33
3.0 INTRODUCTION.........................................................................................................................33
3.1 Area (I): Governance and Stakeholder Participation.................................................................33
3.1.1 Stakeholder Participation 34
3.1.2 Enabling Legislation 34
3.2 Area (II): Financial Sustainability...............................................................................................34
3.2.1 Revenue Management 35
3.2.2 Expenditure and Cost Management 35
3.2.3 Integrated Planning, Monitoring and Evaluation 35
3.2.4 Resource allocation & Absorption 36
3.3 Area (III): Institutional Transformation.....................................................................................36
3.3.1 Organizational structure 37
3.3.2 Capacity Building 37
3.3.3 Performance Management 37
3.4 Area (IV): Physical infrastructure and services.........................................................................38
3.4.1 Road Network Rehabilitation & Expansion 38
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3.4.2 Traffic Management & Decongestion 38
3.4.3 Non-Motorized Transport 39
3.4.4 Energy 39
3.4.5 Drainage Infrastructure 40
3.4.6 Water & Sewerage Infrastructure 40
3.4.7 Waste Management 40
3.5 Area (V): Social and Community Development.........................................................................41
3.5.1 Healthcare 41
3.5.2 Education, Children and Youth development 42
3.5.3 Empowering Youth, Women and Persons with Disabilities 43
3.5.4 Housing 43
3.5.5 Sports and Recreation 44
3.5.6 Arts and Culture 44
3.5.7 Libraries 44
3.5.8 Cemeteries, Crematorium and Corona Services 44
3.6 Area (VI): Safety and Environment............................................................................................45
3.6.1 Safety and Security 45
3.6.2 Disaster Management 45
3.6.3 Emergency services 45
3.6.4 Traffic Management & Parking Control 45
3.6.5 Environmental management & Climate Change 46
3.6.6 Forestry 46
3.6.7 Natural resources 46
3.6.8 Parks and Open spaces 46
3.7 Area (VII): Planning and Economic development.....................................................................47
3.7.1 Spatial and Urban Planning.......................................................................................................47
3.7.2 Urban Renewal..........................................................................................................................47
3.7.3 Agriculture & Livestock 47
3.7.4 Fisheries 47
3.7.5 Trade and industry 48
3.7.6 Cooperative & Enterprise development 48
3.7.7 Tourism & wildlife 48
3.7.8 Land Valuation and Property Management 49
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CHAPTER 4: BUDGET FOR FY 2016/17 50
4.1 Introduction.............................................................................................................................50
4.2 Guiding Philosophy.................................................................................................................50
4.3 Resource Envelope..................................................................................................................50
4.3.1 Internal Revenue 51
4.3.2 External Revenue 52
Conditional Allocations 53
4.4.1 Recurrent Expenditure 56
4.4.2 Development Expenditure 57
4.5 KEY PRIORITIES FOR THE 2016/17 MEDIUM TERM BUDGET.....................................................58
4.5.1 Physical Infrastructure and Productive Sectors (Public Works Roads & Transport, Energy, Water, Environment & Natural Resources, ICT, AGRIC, Livestock & Fisheries) 59
4.5.2 Governance, Social and Service Sectors (Public Admin, Health & Education) 59
4.5.3 Economic sectors (Trade, Industrialization & Cooperative, Finance & Economic Planning, Urban planning, Urban Renewal) 60
4.6 KEY SECTOR PRIORITIES FOR 2016/17.......................................................................................61
4.6.1 Transport, Infrastructure & Public Works 61
4.6.2 Health Services 62
4.6.3 Trade, Commerce & Industry, Tourism, Cooperative Societies 64
4.6.4 Urban Planning, Housing and Lands 64
4.6.5 Agriculture, Livestock & Fisheries Forestry & Natural Resources 65
4.6.6 Education Youth Sports, Gender Affairs & Culture & Social Services, ICT & e-Government 66
4.6.7 ICT, E-GOVERNMENT & PUBLIC COMMUNICATION 68
4.6.8 Finance & Economic Planning 68
4.6.9 Environment, Energy, Water & Sanitation 69
4.6.10 Public Service Management & Reforms 70
4.6.11 Governor’s Office 71
4.7 County Public Service Board......................................................................................................72
4.8 County Assembly.......................................................................................................................73
4.9 Ward Development Fund..........................................................................................................73
4.10 MTEF PUBLIC PRIORITIES FOR 2016/17.....................................................................................74
4.10.1 Transport, Infrastructure & Public Works 74
4.10.2 Health services 74
4.10.3 Trade, Commerce & Industry, Tourism, Cooperative Societies 74
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4.10.4 Agriculture, Livestock & Fisheries Forestry & Natural Resources 75
4.10.5 Urban Planning and Lands 75
4.10.6 Education Youth Sports, Gender Affairs & Culture & Social Services, ICT & e-Government75
4.10.8 Finance & Economic Planning 75
4.10.9 Water, Environment and Natural Resources 76
5.0 STATEMENT OF FISCAL RISKS TO THE OUTLOOK77
ANNEX I: FISCAL PERFORMANCE FOR HALF YEAR OF 2015/2016 78
ANNEX III: REVENUE AND EXPENDITURE PROJECTIONS FOR MTEF PERIOD 2016/2017-2018/201982
ANNEX IV: MEDIUM TERM SECTOR CEILINGS FOR FY 2016-2019 IN MILLIONS 84
ANNEX V: RECURRENT EXPENDITURE ANALYSIS 87
ANNEX VI: DEVELOPMENT PROJECTIONS FOR 2016/2017-2018/2019 89
ANNEX VII: SUMMARY NAIROBI CITY COUNTY LIABILITIES AS AT 31ST DECEMBER 2015 90
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CHAPTER ONE: OVERVIEW
1.1 LEGAL FRAME WORK
1.2 Statement of Objects and Rationale
1. The County Treasury pursuant to section 117(1) and (6) of the Public Finance Management
Act (PFMA), 2012 is mandated to prepare and submit the Fiscal Strategy Paper to the County
Assembly, by the 28th February of each year, and subsequently publish and publicize it not later
than seven days after it has been submitted to the County Assembly .
2. In accordance to section 117(2) of PFM Act, the County Treasury has aligned the proposed
revenue and expenditure plan to the national financial objectives contained in the National
Budget Policy Statement (BPS) for 2016. In this regard, the fiscal policies are geared towards
triggering a multiplier effect towards the achievement of the national theme of economic
transformation for shared prosperity by (i) creating a conducive business environment for job
creation; (ii) investing in infrastructure in areas such as transport, logistics, energy and water;
(iii) investing in quality and accessible health care services and quality education as well as
strengthening the social safety net to reduce the burden on households and promote shared
prosperity.
3. The Fiscal strategy paper outlines the county’s fiscal policies in the context of prevailing
macro-economic policies and outlook while articulating the Nairobi County’s strategic priorities
and policies for the fiscal year 2016/2017.
4. The proposed strategic policy priorities for the fiscal year 2016/2017 represent a consultative
mix that has taken a keen consideration of the views and opinions of the public, the Commission
on Revenue Allocation and other interested groups within our County. Indeed Ward based
forums were publicized and accorded to all Nairobi citizenry in each of the eighty five (85)
wards and their inputs thereof greatly inform the strategic thrust of this Paper.
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1.3 Overview
5. The 2016/2017 MTEF expenditure budget is being prepared in the third and last year of
transition period as per the Kenya constitution 2010. By this period the counties were expected to
have taken root and streamlined their operations, guided by existing plans and adequately
financed by internal revenue generation mechanisms.
6. Implementation of the constitutional provisions on devolution poses a fair mix of both
opportunities and challenges to the County governments in executing their constitutional
mandate. Full implementation of devolved functions should be able to achieve the ever elusive
balance between achievements of growth, in this case through revenue generation, and provision
of basic services that will better lives of residents. Amidst the rising concern on the sustainability
of the county government wage bill, slowed down global and national economic prospects, focus
must shift to new approaches to achieve sustainable development in a stable fiscal macro-
economic framework.
7. The broad development policies of the County Government as articulated by the Governor
during his inaugural address to the County assembly on 27th March 2014, provides government
with clear and progressive approach to reinvigorate inclusive growth and move the County to the
next level of prosperity.
8. While details of these priorities have been articulated in the County Integrated Development
Plan (2013-2017), this Fiscal Strategy Paper outlines economic policies and structural reforms as
well as sector-based expenditure programmes that the county government intends to implement
in the medium term in order to achieve the broad goal of the County government’s development
agenda. In particular, it emphasizes continued shift of resources in favour of growth and job
creation, and to support stronger private-sector investment in pursuit of new economic
opportunities. The proposed fiscal framework ensures continued fiscal discipline and provides
support for sustained growth, broad-based development and employment growth that benefits all.
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1.3 RECENT ECONOMIC DEVELOPMENTS
1.3.1 MACRO ECONOMIC PERFOMANCE INDICATORS
Overview of Recent Economic Developments
9. Nairobi City County operates within the global and national economic framework. The global
and national economic dynamics impacts both directly and indirectly on county fiscal decisions
and operations. Economic growth is a parameter that influences national government transfer to
the counties, given the positive correlation between it and national revenue. Exchange rate
fluctuations also affect the county processes with currency devaluation making our imports more
expensive. Interest rates affects the cost of local borrowing while inflation changes the costs of
goods and services and may affect their affordability as per existing plans
10. The IMF latest economic outlook projected Global growth to be at 3.3 percent in 2015,
marginally lower than in 2014, with a gradual pickup in advanced economies and a slowdown in
emerging market and developing economies. In 2016, growth is expected to strengthen to 3.8
percent. In emerging market economies, the continued growth slowdown reflects several factors,
including lower commodity prices and tighter external financial conditions, structural
bottlenecks, rebalancing in China and economic distress related to geopolitical factors. A
rebound in activity in a number of distressed economies is expected to pick up in growth in 2016.
11. In the domestic scene, Current statistics shows a favorable macroeconomic environment
characterized by resilient and robust growth, relatively stable inflation rate, stabilizing exchange
rate and declining short term interest rates.
Growth Update
12. Kenya’s economic growth has been robust supported by significant infrastructure
investments, construction, mining, and lower energy prices and improvement in agriculture
following improved weather.
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13. The economy grew by 5.3 percent in 2014 supported by strong performance in most sectors
of the economy which offset the contraction in the tourism sector. Kenya’s economic growth
remained resilient in 2015. The first three quarters of 2015 recorded an average of 5.5 percent
growth compared to 5.3 percent growth in a similar period in 2014.
14. In Quarter three of 2015, the economy grew by 5.8 percent, an improvement from a growth
of 5.0 percent and 5.6 percent in quarter one and two of 2015 respectively. The growth in the
third quarter was supported by improved performance in agriculture, forestry and fishing (7.1
percent), construction (14.1 percent), wholesale and retail trade (6.5 percent), transport and
storage (8.7 percent) and electricity and water supply (11.0 percent). The accommodation and
restaurant sector improved during the third quarter of 2015 with a contraction of 2.3 percent from
a contraction of 16.0 percent during the same period 2014. This improvement is as a result of the
withdrawal of the travel advisories by some key tourist source countries.
15. The economy is projected at 5.6 percent in 2015, 6.0 percent in 2016 and 6.5 percent in the
medium term.
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Inflation
Macroeconomic stability has been preserved with inflation remaining on a single digit level.
Overall month on month inflation was at 8.0 percent in December 2015 from 6.0 percent in
December 2014 and 7.3 percent in November 2015. This was attributed to the Food and Non-
Alcoholic Drink’s Index which increased by 1.23 percent following increases in prices of several
food items; the Alcoholic Beverages, Tobacco & Narcotics index increased by 11.46 per cent
from November 2015.
16. However, during the same period there were notable falls in the cost of electricity, kerosene
and cooking gas.
17. On average, the annual inflation rate was 6.5 percent in December 2015 compared to 6.9
percent in December 2014 and was therefore, within the current allowable margin of 2.5 percent
on either side of the target of 5.0 percent.
5
Interest rates
18. Short term interest rates have declined following improved monetary conditions that led to
increased liquidity in the money market. The interbank rate was at 6.2 percent as of 21st January
2016.
19. Liquidity conditions remained tight between September and October 2015, with short-term
interest rates remaining above the Central Bank Rate (CBR) and the rates on treasury bills rising
substantially. This tight liquidity situation improved beginning November 2015 resulting in
reduction in all the money market interest rates.
20. The interbank rate averaged 6.2 percent as of 21st January 2016 compared to 7.3 percent in
December 2015 and 8.8 percent in November 2015. The 91-day Treasury bill rate declined to
11.4 percent as of 22nd January 2016 from 21.7 percent in October 2015. The 182 day Treasury
bill also declined to 13.7 percent as of 22nd January 2016 from 21.5 percent in October 2015
while the 364 day Treasury bill rate averaged at 14.3 percent from 21.6 percent over the same
period.
21. The Kenya Banks Reference Rate (KBRR) was reviewed upwards from 8.5 percent in
January 2015 to 9.87 percent in July 2015 as a result of the upward revision of CBR. The
increase of the KBRR resulted to the increase of the average lending rates to 17.4 percent in
December 2015 compared to 16.0 percent in December 2014 while the deposit rate increased to
7.9 percent from 6.8 percent over the same period (Chart 2.3). As a result, interest rate spread
was at 9.5 percent in December 2015 from 9.2 percent in December 2014, a reflection of the
increase in both the lending rate and deposit rate.
The Kenya shilling Exchange Rate
22. The Kenya Shilling exchange rate has stabilized following increased foreign exchange
inflows in the money market. The current level of foreign exchange reserves, backstopped by the
precautionary program with the IMF, continues to provide an adequate cushion against
exogenous shocks. Furthermore, the current account deficit narrowed, mainly due to a lower oil
import bill, and a slowdown in consumer imports.
6
23. The Kenya Shilling exchange rate which had weakened against major international
currencies, for most of the year strengthened following foreign exchange inflows into the money
market. The currency stabilized at Kshs. 102.2 against the US dollar as of 21st January 2016
compared to Kshs. 102.8 in October 2015. The depreciation of the currency was mainly due to
the global strengthening of the US Dollar on the international market, and high dollar demand by
importers in the domestic market.
24. Against the Sterling Pound, the shilling strengthened to Ksh 145.2 as of 21st January 2016
from Kshs. 153.3 in December 2015 and against the Euro, the exchange rate also strengthened to
Kshs. 110.8 from Kshs. 111.1 over the same period. The Kenya shilling has continued to display
relatively less volatility compared with the major regional currencies due to Diaspora
remittances, increased foreign investor participation in the NSE.
7
Stock Market Developments
25. Activities at the stock market remained strong in the year to December 2015. The NSE 20
share index stood at 4,003 points in December 2015, an improvement from 3,994 points in
November 2015. At the same time, Market capitalization improved to Ksh 2,031 billion in
December 2015 from Ksh 2,015 recorded in November 2015, although lower than Ksh 2,300
billion in December 2014. The drop in market capitalization in the year to December 2015 is as a
result of an increase in share supply which depressed the overall share prices.
26. Foreign equity market turnover for the month of December 2015 stood at Ksh 16.1 billion
from Ksh 11.7 billion in November 2015, representing an increase of 37.6 percent. December
2015 bond turnover stood at Ksh 23.4 billion, 27.2 percent higher than Ksh 18.4 billion recorded
in November 2015.
1.3.2 COUNTY ACHIEVEMENTS
Public Works, Roads and Transport
27. In the Financial year 2015/2016, the sector committed KShs 875 million for installation,
rehabilitation and maintenance of street lighting and public lighting towards enhancing security
and safety across the County. The National Government also enhanced this with KShs 1.5 b of
which KShs 700 m was a grant while KShs 1 b was to be refunded to the National Treasury.
2011 No. HPS lights have been refurbished, 5228 No. new HPS lights installed and 7014 No of
LED lights installed.
28. For the ongoing street and public lighting installation projects 27 No. are 50 and 100%
complete while 13 No are between 10 and 49% complete. 7 No projects the contractor failed to
comply with commencement order and are in the process of being terminated and will be
procured afresh. 8 No the contracts have just commenced.
29. An NMT Policy was developed with stakeholder participation through support from UNEP.
30. The sector prioritized and pursued a programme to develop and expand Non-motorized
Transport. In this regard, during the reporting period, KShs 70 Million was appropriated for
8
constructing NMT along Mumias South Road and Mbagathi Way. Bid documents for Mumias
South Road have been prepared.
31. The NMT project at City Park is 80% complete while that along Manyanja Road is 45%
complete.
32. A number of road safety features were constructed. These included marking 107 km of roads,
26 No manhole and gulley covers installed, 40 No. pedestrian crossings, installing 15 No. bumps
and marking 36 No. others. Additionally, 202 No. road and traffic signs installed and 122 No.
bollards erected. These efforts have significantly reduced the number of accidents. 182 km of
roads and 253 km of drains have been maintained.
33. The ongoing road rehabilitation/construction and Drainage Improvement projects are
between 10% and 50% complete.
34. For the ongoing bridge construction projects 4 No are 50 and 100% complete while 4 No are
in the process of being terminated and will be procured afresh.
35. The sector was vibrant in economic empowerment through job creation for the youth, women
and people living with disabilities. In this regard, about 30% of the total works procured were
reserved and allocated to this group at a cost of KShs 186.3 Million.
36. Congestion is a cause of concern and the junction improvement project along Limuru Road is
5% complete while the consultancy services for development of intersection improvement
schemes is commencing.
37. Public transport facilities have been completed at Kahawa West, Pangani Shopping Centre
and Machakos Country Bus Station.
38. Other ongoing projects are at Central Bus Station and Hakati Matatu Terminus – 55%
complete, Mama Lucy Hospital – 30% complete,
39. During the first half of the FY 2015/2016, a number of programmes have been initiated the
procurement of contractors for the following 26 No. projects: -
9
40. Rehabilitation of Kongoni Road & Granti Roads, Access Road to Maji Mazuri,
Rehabilitation of Ndwaru Road, Construction of Karen Ridge, Rehabilitation of Kirichwa
Gardens, Rehabilitation of Irungu Riika Road, Construction of Salim Road, Construction of
Captain Mungai Street, Rehabilitation of Road from DO to Nyando Road/ Dhawabu Road,
Reconstruction of Dandora II Estate Roads, Construction of Access Road to Haco Industries,
Rehabilitation of Baba Dogo to Riverside and Kariadudu Roads, Rehabilitation of Mother Teresa
Road, Construction of Vietnam Road, Rehabilitation of Riverbank Road, Rehabilitation of
Bishop Ireri Road, Construction of Biason Road, Rehabilitation of Old Akiba Estate Road,
Rehabilitation of Stadium Road - Bin Agare Slum, Construction of Hope Petrol Station Road,
Rehabilitation of Dandora Bus Route including Wamulembe / Jua Kali / 41 Stage Road,
Construction of Estate roads in Matopeni, Construction of Access Road off Kirinyaga Road,
Completion of by-pass Mihang’o Link Road, Reconstruction of Access Road to Dandora
Dumpsite (John Osogo Road (Part) and Rehabilitation of California Estate Roads
41. The bid documents for following 18 No. projects have been prepared: -
42. Consultancy services for Design and tender documentation of proposed drainage
improvement along 3rd Avenue Eastleigh, Runda/Evergreen, Ridgeways, Garden and Thome
Estates, Consultancy for study, design and documentation of pedestrian crossing points at Haile
Selassie/Moi Avenue roundabout and Moi Avenue/City Hall Way Junction, Supply and Delivery
of Traffic Simulation Technologies software and equipments with associated training.
43. Bid documents for works contracts for Construction of NMT Facilities along Mumias South
Road through Rabai Road across KR lines to Tanga Road and Lunga Lunga Road (6 km),
Construction of Public Transport Facility at Westlands Inbound Terminus, Construction of a
Footbridge across Jogoo Road at Jogoo Road/First Avenue Eastleigh Junction, Construction of a
Motorable bridge at Langata North Road across Mokoyeti River, Construction of Hope Centre
Bridge Construction of bridge at Madoya Road, Construction of bridge across Kiu River to link
Kamuthi Estate with Kongo and Soweto, Construction of bridge Kisumu Ndogo/ Gatwekera,
Construction of Mama Okinda MSF Bridge, Construction of a bridge between Kahawa &
Mugumoini, Repair of Riverine Bridge, Improvement of drainage at Pangani and Ainsworth
Primary Schools, Drainage improvement to serve Real & Amboseli Estates, Drainage
10
Improvement - Kauria Close, Improvement of Flame Tree Drainage System, Drainage
Improvement - Humama Settlement
44. To enhance service delivery the sector initiated the Procurement of vehicles plant and
equipment such as: -
45. One 15m high Hydraulic Platform vehicle, 1 No. 12m high Hydraulic Platform vehicle, 4 No.
1 Ton pick-ups, Lorry with crane capable of self-loading and off-loading, Concrete mixer, Motor
cycles, Asphalt Concrete Paver, 1 No. Motor Grader, 1 No. Motor Grader and assorted Survey
equipment
Health
46. In the financial year 2014/15, the sector completed the implementation of the following
programs; Purchase of Refrigerators & generators for vaccines at 9 No. Sub County stores,
Purchase and Installation of Incinerator at Mbagathi Hospital, Rehabilitation and Equipping of
3rd Theater at Pumwani Maternity Hospital, Rehabilitation of Kitchen and Catering Section at
Pumwani Maternity Hospital, Rehabilitation of Kariokor Health centre, Rehabilitation of Lady
Northey Dental Clinic, Construction of Perimeter wall at Pangani clinic, Construction of a new
20 beds maternity hospital in Dagoretti (Mutuini), Purchase and Installation of Electric
Autoclave at Pumwani Maternity Hospital, Rehabilitation and Equipping of High Dependency
Unit at Pumwani Maternity Hospital and Equipping of centre at Njiru Health Centre.
47. During the First half of the 2015/16 Financial Year, the sector initiated a number of projects
that are aimed at expanding health infrastructure, improving diagnostic capacity and access to
high quality healthcare. In this regard, the following projects were initiated; construction of
maternity wing, installation of incinerator and mortuary coolers at Mbagathi hospital, equipping
and commissioning of 3rd theatre in PMH, completion of 66 bed maternity ward block (60%);
conversion of the kitchen to a maternity wing at Mutuini hospital; Construction of perimeter wall
at Ngara and Karen Health Centers (Tendering process complete); and construction of ENT
clinic at Ngara health centre.
11
Agriculture, Livestock and Fisheries, Forestry and Natural Resources
48. In the FY 2014/15, the sector managed to achieved the following: Gikomba fish market
refurbishment; establishment of two cold storage facility in Kamukunji and Njiru; establishment
of hatcheries in Njiru and Embakasi; Establishment of fish market vendors in Embakasi and
Starehe; promotion of fish farming in tanks in Mathare, Korogocho, Kangemi, Kibarage, Kwa
Mukuru, Kwa Njenga; refrigerated van at County HQ; Pelletizer machine in Embakasi East&
West, Dagoretti, Langata, Kibra; and provision of fishing gears in Embakasi East, West,
Dagoretti, Langata and Kibra.
49. By the first half of the FY 2015/16, the sector initiated a number of programmes that are at
various stages of implementation. Achievements made are: promoted non-ruminants and
emerging livestock enterprises in 9 Sub-counties ( Starehe, Kamukunji, Kasarani, Njiru, Langata,
Embakasi, Dagoretti, Makadara and Langata) ; established a multi-storey gardening in Mukuru
informal settlement in collaboration with Ministry of Devolution and Planning; planted 3,375
tree seedlings in schools; developed two agribusiness plans; issued 295 licenses to dog owners;
vaccinated and baited 311 dogs; supplied 1,200 fingerlings to fish farmers; carried out 125
hygiene inspections and spot checks; carried out food safety sensitization forums; carried out
integrated agricultural extension and research services; and issued five milk dispensers, chillers
and pasteurizers to five milk marketing groups in Kasarani, Njiru, Kamukunji, Westlands and
Dagoretti.
50. Ongoing projects as at the Mid-Year of FY 2015/16 include the following; construction of animal
clinic at Pangani; construction of fish ponds in Westlands, Embakasi and Kibarage; installation of 17
green houses and water harvesting tanks in selected sub counties; rehabilitation of fish ponds in Kasarani,
Dagoretti, Embakasi, Langata, Kibra, Starehe, Westlands, Roysambu and Makadara; construction of
poultry slaughterhouse in Embakasi; and integrated rabbit and poultry production in informal settlement
areas.
Trade, Industrialization, Co-Operatives and Tourism
51. In the FY 2014/15, the following projects were initiated and implemented in the sector; construction
of perimeter fence at Wakulima Wholesale Market; construction of Jogoo Road, Kangemi, Karandini,
Karen New Market, Dandora Market A-F, Landhies Road, Githurai and New Pumwani markets;
12
acquisition of the buses for tourism ; and rehabilitation of Kariokor, Landhies Road, Githurai and Quarry
Road markets.
52. In service delivery, the sector achieved the following: recovered Kshs. 8.193 million
advanced to MSMEs as loans; disbursed Kshs. 5.6 million to MSMEs; issued 3,778 liquor
licenses; issued 202 new registrations certificates to co-operatives; revived 38 dormant co-
operative societies; capacity build 48,434 co-operative leaders and members; and verified 45,591
equipment.
53. By the first half of the FY 2015/16, the sector has achieved the following: acquired two tour
buses; developed two tourism information education materials; recovered Kshs. 2.468 million
advanced to MSMEs; verified 10,226 equipment; issued 661 liquor licenses; prepared 6 audit
system reports for co-operative societies; prepared 146 annual audit reports;
54. Ongoing projects as at the Mid FY 2015/16 implemented by the sector are: construction of
Karen, City Park, Shauri Moyo Markets; and acquisition of weights and measures calibration
equipment. Projects which are at design and tendering stages are: construction of Mlango
Kubwa, Ngara, Kariokor, Wakulima and Muthurwa Markets; and acquisition of tourism
information center.
Finance and Economic Planning
55. In the FY 2014/15, the sector achieved the following; automation of revenue collection;
installation of CCTV surveillance system at cash office; preparation of County Budget Review
Outlook Paper; preparation of County monitoring and evaluation reports; dissemination of
CIDP; capacity building Public Service Board on strategic planning; and assets revaluation and
tagging.
56. By the Mid FY 2015/16, the sector achieved the following: conducted unemployment and E-
payment survey; conducted 4 Social Intelligence Reporting(SIR) in Kamukunji, Embakasi,
Langata and Makadara; produced two monitoring and evaluation reports; offered technical
support to Sector Working Groups (SWGs); prepared 10 SWG reports; CBROP; prepared county
M&E indicator handbook; conducted MTEF consultative forums in 85 wards; Prepared MTEF
13
report; prepared and published Annual Development Plan(ADP); finalized and published final
accounts; and developed asset management policy.
Water, Energy, Environment and Sanitation
57. Management of solid waste is a key area for the sector, with an estimated 2400 tonnes of
waste generated daily in the county. In the financial year 2014/15, 900 tonnes of solid waste was
collected per day, an improvement from 800 tonnes per day in the previous year. In the first half
of FY 2015/16 collection stood at 1500 tonnes per day. Challenges in solid waste collection and
transportation as a result of frequent breakdown of vehicles and withdrawal of contractor
vehicles due to non-payment were experienced, together with court cases in enforcement of
franchise system and inaccessibility of Dandora dumpsite was a major hurdle to the process. The
franchise system was however rolled out in the West of the City (Kilimani, Kangemi, Lavington,
and Kileleshwa) and works on perimeter wall and guard houses at Dandora dumpsite 80 % done.
Monthly clean ups are organized to supplement achievement of set goals towards a litter free
city. Currently there are 43 operational refuse trucks and 3 supervisory vehicles. For better
handling of waste, procurement of a Refuse Compactor, skip loaders, skip, trailers and litter bins
have been initiated.
58. In enforcement and pollution control, A draft environment policy was done in the financial
year and awaiting finalization. Environmental audits and patrols were routinely done, and Audit
reports were forwarded to NEMA and illegal discharges were reduced as a result, respectively.
Two sound meters were purchased and patrols enhanced all in an effort to curb noise pollution.
63 public toilets were maintained and 17 public toilets in CBD user friendly to disabled persons
through provision of ramps supporting rails and seats. This was in a bid to improve sanitation
standard and accessibility to all.
59. To improve the environmental aesthetic, 21 new gardens were established, 135,319 trees
were planted and maintenance of the parks was done routinely in FY 2014/15. This continued to
the current year with establishment of 10 new gardens, planting of 32,000 trees and routine
maintenance of all parks being done by mid-year. Machinery actively utilized to achieve all the
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above includes; 13 Brush cutters, 3 Ride on Mowers, 3 Gyro Mowers, 1 Tractor trailers, 1water
bower and 2 Power Saws.
60. By end of second quarter current year, 626 noise pollution permits, 45 excavation permits, 2
waste handling permits were issued. 12 permits to recycling companies were also issued and 4
incinerations done.
61. The water department continued with rehabilitation of Nairobi Rivers, and by end of second
quarter, 16 tonnes of waste had been removed from the rivers and 10 illegal discharge points
blocked. 6 km of water pipeline was also done during the same period
Public Service Management and County Public Service Board
62. During the financial year 2015/16, 60 % of service delivery charters were reviewed and
sector performance management plan developed and under implementation.
63. The culture change program, which is a key initiative to transform the public service into a
more motivated, customer focused and results oriented one was implemented. 3685 members of
staff were trained during the period aiming to improve efficiency in service delivery and 2084
were sensitized under this program.
64. Attachment/internship policy document was developed and Performance contracting was
100% done, 2 RRI waves conducted, two Huduma centres were operationalized and 50
corruption cases resolved.
Urban Planning Sector
65. In the first half of financial year 2015/16, the inception report, case study and principles
report on development of control guidelines framework were undertaken. A baseline survey of
Nairobi City Public Spaces was carried out and the draft report completed. TOR’s on crime
prevention strategy & implementation framework were reviewed for consultancy and currently
awaiting re-advertisement for request for proposals; this is in preparation for development of a
county crime prevention strategy. All the above were mechanisms geared towards
implementation of the NIUPLAN.
15
66. Towards the establishment of a physical address system; an initiative that will establish a
framework for street coding & naming, numbering & geo-referencing all properties along them;
street index/inventory, draft property register, land use maps and signage maps, quantities of
entryway and street signage were completed for designated zones 1 to 4. 70 % of the project is
complete
67. Development of e-DPMS has also been started. This is an electronic system that will enable
the submission, evaluation and approval of development applications (e.g. subdivisions, change
of use, extension of land lease etc.) on a digital platform. Mapping of the processes and
procedures has been done, process reforms developed, stakeholders workshops held, all offices
networked and computer hardware procured and installed. The project is 60% done and the
remaining 40% includes: training of staff members in ICT, designing of the e-development
permission management system, public consultation & sensitization and launch of the system.
68. Development of the Outdoor Advertisement & Signage Act has been initiated; the Bill was
forwarded to the County Attorney for Seconding to County Assembly for approval. This is an
initiative towards regulation of outdoor advertising and signage sector in order to maintain
correct balance between revenue maximizing and at the same time reduce advertisement clutter.
69. Process of procuring a consultant for Up-scaling of Ad-Manager System commenced, and
also Rehabilitation of Urban Design & Development Offices has been designed waiting for
Process to assign a contractor
70. During the second quarter of 2015/16, 115 occupation certificates were issued; 140 notices
issued, 29 court cases necessitated, and 18 demolitions undertaken in enforcement of building
codes; and 18,702,625 change of use, 826,000 extension of use, 4,653,000 extension of lease,
4,332,150 subdivisions, 315,625 amalgamation of use permits were issued under development
and construction permits.
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EDUCATION & CHILDREN, SOCIAL SERVICES & COMMUNITY DEVELOPMENT,
VOCATIONAL TRAINING, SPORTS, CULTURE, YOUTH DEVELOPMENT &
RECREATION AND ICT & E-GOVERNMENT.
Achievement for FY 2014 and Mid 2015/2016 FY
Education, Youth Affairs, Social Services, Sports, and Culture Sub-Sector
71. In the financial year 2014/2015 the sector managed to possess and undertake ground
breaking for development of infrastructure in 3 new schools and also installed 5 water points in
schools in a bid to providing conducive learning environment.
72. On improving the learning standards in ECD, the sector sourced for and acquired 72 number
of child friendly computers for the Centres. At the same time acquired play equipment for ECDE
Centres worth Kshs. 8 million.
73. In order to ensure retention and improved transition from primary to secondary, the sector
awarded bursaries to needy student. 600 students benefitted from the executive bursary of Kshs.
30,000,000 while 400 number of students from each of the 85 Wards benefitted from the
allocation of Kshs. 2,000,000/= per ward. The sector also supplied sanitary towels to over
100,000 girls in public primary schools and girls in the informal settlement in the said fiscal year.
74. On vocational education and training section the sector managed to: distributed tools and
equipment from both National Government (through ministry of Education) and County
government of Nairobi to ten Vocational training Centres of which the County spent Kshs. 6
million; held stakeholders meeting in Kiwanja Vocational training centre where a total of 23
organizations; conducted a graduation ceremony for all Vocational Training Centres graduates at
KICC and undertook rehabilitation and rebranding of six Vocational training centers trough
erecting of sign posts, repainting of classrooms workshops and offices and provision of water
tanks.
17
75. The sector also established a Sports Academy at City Stadium for football and table tennis
and established 2 County football teams, from Ward Level to County Level, for men and women.
The teams are playing in the County league.
76. By Mid FY 2015/2016, the following projects were still at tender stage: construction of a
school and rehabilitation centre in Ruai, rehabilitation of workshops at Ofafa and Bahati training
centres, construction of perimeter wall at Mji wa Huruma, construction and rehabilitation of 80
ECDE Centers in informal settlements, rehabilitation of Joseph Kang’ethe centre to a modern
resource centre/sport facilities, rehabilitation and automation of Macmillan library and
rehabilitation of City Stadium.
77. On PPP, the sector sourced for Donor / Development Partners to build New and Fully
equipped ECDE and Primary Schools namely: Olympic Primary by Britam; Mathari Primary by
Centum; St. Bakhita Primary, Mararui Primary and St. Michaels Primary by KFW (Federal
Republic of Germany Government). The county currently has 448 ECDE teachers with a
shortage of 617, considering there are 215 number of schools and with the requirement of a
minimum 5 teachers per pre-school, the sector has embarked on seeking support of Non-
Governmental Organization stakeholder to help fill the gap.
Information, Communication and E-Government Sub-sector
78. By mid-2015/2016 financial year, the following projects were ongoing: Development of ICT
Infrastructure (Data Centre and Structured Cabling WAN/LAN) and Unified Communication to
provide a reliable solution for collaboration covering telephone PABX, email, fax and video
conferencing being funded by World Bank through Kenya ICT Authority. While the following
are at tender stage: integration of City Revenue Management System that is funded by World
Bank through Kenya ICT Authority and Co-location Services to host NCC services at the co-
location facility which includes rack space, data center services, connectivity, caging options,
physical security and access.
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Governor’s office
79. Governor’s office consist of Administration, Public Relation, Security, Compliance and
disaster management, Legal department, Audit and Procurement.
(i) Administration
Achievements 2014/15 and Mid 2015/2016
70. The sector managed to: refurbish the chambers, paint front part of City hall Annex, and
purchase a bulk filing cabinet foe CEC secretariat. The following projects are however still at
ongoing: refurbishment of central registry and printing room; rehabilitation of city hall toilet;
Digitization of central registry; and establishment of reception area at the chambers. In order to
easy mobility and enhanced service delivery, the sector purchase of 17 pickups, 1 truck and 1
double cabin.
81. The Sub-County administration encompasses 17 Sub Counties and 85 Wards. On provision
of conducive working environment, by mid2015/2016, the Sub-Sector furnished Sub County
Administration offices and provided 10 temporary offices (40 ft. containers). While the
procurement of 17 vehicles for Sub- Counties are at tender stage.
(i) Security, Compliance and disaster management
Achievements 2014/15 and Mid 2015/2016
82. In the financial year 20114/2015, the sector managed to: procured 80. Hand held radios
(walkie talkie) for communication and equiped1Base Station with communication Accessories;
repair and refurbishing of County security offices (7th Floor); purchase furniture for the Dagoretti
Training School; and procure 17 security vehicles for improvement of mobility to improve
efficiency in service delivery.
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83. The sector also: conducting of refresher programmes for 82 uniformed security personnel;
deployed traffic Marshalls to decongest the City; deployment of more security personnel to
County facilities for terror related threats and devolved staff at 17 Sub-Counties Service
Delivery.
84. The sector also enhanced public relation between the general public and the political
members of County Assembly and enriched the co-operation and working relationship between
the National security Sector through stakeholders meetings
85. The following sector projects were at tender stage: Purchase of rescue equipment, purchase
of fire engines, procurement of communication equipment, purchase of VHF radios, construction
of perimeter fence at the Dagoretti training college, Construction Of Administration Block,
Rehabilitation of Muoroto Offices,
(ii) Legal Department
86. In the FY 2014/2015, the department drafted 20 County Laws. On recovery of rates, the
department served 111 demand notices served that translated to the county recovering Kshs.
5,872,904. The department also managed to register 4990 criminal cases of which 4172 persons
were fined and amount collected as fines was Kshs. 7,200,000.00.
87. On contractors’ development partners, the department prepared: 2 MOU’s, 12 contracts and 1
service transaction advisory document for Public PPP. In order for stakeholders to comply with
county laws, the department undertook sensitization of to external stakeholders where 28 traders
sensitized while 56 enforcement officers were sensitized on customer satisfaction.
(iii) Audit
88. By mid FY 2015/2016, in provision of auditing and consulting services, the department
issued 4 audit reports; namely Highridge Health Centre, market CESS, health certificates and
compliance audit report. In pursuit of improved mobility of auditors in conducting field audits,
procurement of three motor vehicles is at tender stage.
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1.4 2015/16 FISCAL PERFOMANCE AND EMERGING CHALLENGES
89. The implementation of the budget for FY 2015/16 has been slow so far. Revenues collection
has significantly lagged behind the targets and disrupted the smooth flow of funds for
development and general county operations. Budget absorption was slow in the same period,
with all sectors utilising well below half of their allocations.
Revenue Performance
90. By the end of the first half of the FY 2015/16, total cumulative revenue was Ksh 11.70
billion against the annual target of Ksh 30.898 billion, implying a collection of only 37.8% of
annual target. Against a midyear target of ksh 14.3 billion, Ksh 11.7billion was realized
representing a performance of 82%. External revenue registered an impressive outturn at 98% of
target representing a total of Ksh 6.7 billion. On the other hand, internal revenue performance
was sluggish recording a performance of 65% at mid year representing Ksh 4.9 billion.
There is a marginal improvement in revenue performance from 33% in 2014/15 to 37.1% in
2015/16.
91. While taking cognizance of the cyclical nature of key revenue sources, it is noteworthy that
the key contributors to the 35% negative deviation recorded in the performance of internal
revenue streams include; Parking fee with a deviation of 38%, Single Business Permit which
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underperformed by 48%, Building Permits that recorded a shortfall of 32% of target and Bill
Boards with a negative deviation of 52%.
Other poorly performing revenue streams include liquor licensing (-79%) , Lease fees (-71%)
and other Markets (-48%).
Collection from rates recorded an impressive performance surpassing the low season target by
3% largely due to a vigorous campaigns waged during the months of September, October and
November which included the issue of Waivers for accrued penalties. Other impressive
performances were registered in Fire certificates(+6%) and Construction site Boards (+72%).
Underperformance in internal revenue continue to pose a serious fiscal risk and will continue to
have a significant impact on budget implementation unless tacked decisively through a rapid
investment in capacity development, supervision and reporting of revenue performance.
Budget Performance/Absorption
92. The total cumulative expenditures for the first half of the financial year amounted to Ksh
11.45 billion, 37.1% of the 2015/15 FY budgeted amount of Ksh 30.89 Billion. Total
expenditure in the second quarter increased by 29.9% compared to the first quarter, evidence of
the slow budget uptake at the beginning of the financial year. This slow uptake is due to poor
project planning, identification and formulation. Half year total expenditure saw 80% used in
recurrent and 20% for development. 58.3% of total expenditure up to end of the second quarter
was utilised for compensation to employees, 21.7% for operations and maintenance, and 20% for
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development.
93. Budget absorption by the sectors has been wanting, especially the development vote. Only
one sector; water, energy, environment and natural resources, was able to utilise more than 40%
of its budget allocation by end of mid-year 2015/16 financial year. Only three of the eleven
sectors had absorbed a quarter or more of their allocation; trade, cooperative and
industrialization; water, energy environment and sanitation; agriculture, livestock and fisheries
development with more than half of the other sectors absorbing less than 20%.
94. Recurrent expenditure fared better than development expenditure. Overall absorption of
development budget stood at 15% by the end of mid period 2015/16. Six sectors (more than half
of all county sectors) absorbed less than 10% of their allocation in this vote. Agriculture,
livestock and fisheries department was the best in absorbing development expenditure having
used 44% of allocation by end of mid-year.
1.5 2015/16 REVISED ESTIMATES
95. As noted in the discussions above, budget performance, both revenue and expenditure, was
below expectation. Weaker than expected revenue collections and underperformance in sectors
budget absorption, especially in the first quarter, was noted as the main challenge in the first half
of the financial year 2015/16. However, due to increase in operations and maintenance costs;
mainly due to additional funding for garbage (800M), medical insurance (250M) and the liquor
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board (219M), and also due to increase in salaries; due to salary upgrading, new recruitment of
226 health personnel and deployment of medical interns and overtime costs, the budget 2015/16
was revised upwards. This saw an upward revision of 3.75% from the approved budget; from
30.828B to 31.984B. Operations and maintenance saw the largest upward revision 54.1%.
Proportion of budget towards development reduced from the approved 35% to the new revised
32%.
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CHAPTER TWO: MACRO-ECONOMIC POLICY FRAMEWORK
2.1 Kenya’s Growth Prospects
96. The economic growth prospects for FY 2016/17 and the medium term takes into account
developments in the global environment and internal risks while accommodating the
Government’s national strategic objectives as outlined in the second Medium Term Plan (MTP)
for the period 2013-2017 of Vision 2030 and the broad development policies of the government.
97. Real GDP is estimated to expand by 5.9 percent in FY 2016/2017, 6.3 percent in FY
2017/2018 and 6.4 percent by FY 2018/19. This robust broad based growth will be supported by
increased production in agriculture, completion of infrastructural projects to boost economic
activity while continuing with other infrastructural investment projects and recovery of Tourism.
The economy will also benefit from increased investments and domestic demand, following
enhanced investor confidence and the on-going initiatives to deepen regional integration.
98. The projected growth assumes normal weather pattern in 2016 and the medium term.
Inflation is expected to revert within 5.0 percent target and interest rates and shilling exchange
rate expected to be stable.
2.2 Key Revenue Sources
99. The key revenue sources in the county are internal and external revenues. External revenues
are transfers from the national government such as equitable share and conditional grants like
free maternal health care, compensation for user fees forgone, leasing of medical equipment and
road maintenance levy. Major internal revenue streams in the county are rates, single business
permits, parking fees, building permits and billboards and advertisements.
100. Late development and implementation of liquor Act, legal challenges on Finance Act on
rates and Betting and Control Act, non-remittance from hospitals collections and reimbursement
for free maternity care, low level of awareness on County charges and the responsibility to pay
by the public and lack of revenue from billboards from road reserves and street poles on KURA
and KENHA roads has slowed performance of county revenues.
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2.2.1 Rates
101. Slow development of valuation roll, high default rates, weak enforcement mechanism, court
injunctions by Resident Associations on land rates collection from particular areas have led to
low revenue collection from land rates. Fast tracking preparation of valuation roll, strengthening
enforcement mechanism and negotiating with Resident Associations in regard with land rates
payment has the potential of increased revenue collection. Waiving penalties on land rates will
be carried out by the county government as this will encourage rate defaulters to pay land rates.
2.2.2 Parking Fees
102. Weak enforcement due to inadequate staff and equipment, low level of awareness in the E-
payment platform and user resistance to technology are the main challenges facing collection of
parking fee. For county government to increase revenue collection from parking fees, it will
increase staff, equipment and sensitization forums on E- payment services. Further,to enhance
revenue collection by using E-payment the following will be undertaken; improve network
connectivity; reduce system failure and increase enforcement.
2.2.3 Building Permits
103. Non-disclosure and adherence of county building regulations, poor enforcement of building
standards and regulations have led to low revenue collection from building permits. Adoption of
E-construction and increase in enforcement of building regulations will enhance revenues from
building permits.
2.2.4 Single Business Permit (SBP)
104. Weak enforcement mechanism and high default rate on payment of single business permits
has slowed performance of SBP .Completion of a business register and increased enforcement
will increase revenue collection from this stream. Automation of revenue collection processes in
the sub-counties and wards will enhance revenue collection from SBP and other revenue streams.
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Analysis of Revenue Projections
105. The FY 2016/17 budget targets revenues from internal and external sources. Total revenues
projected over the medium term period are Kshs. 34.3 billion in FY 2016/17 and Kshs. 36.14
billion and Kshs. 39.61 billion in FY 2017/18 and FY 2018/19 respectively from the total revised
revenues of Kshs. 31.99 billion in FY 2015/16. It is projected that revenues will increase by 7.2
percent in FY 2016/17 and grows by 5.4 percent in FY 2017/18 and 9.6 percent in FY 2018/19.
Table 2.1 and Chart 2.1 below show revenue projections for the medium term period.
Table 2.1: Revenue Projections for FY 2016/17, FY 2017/18 and FY 2018/19
Revenues Revised 2015/16
2016/2017 2017/2018 2018/2019
External Revenues Equitable Share 12,997 14,277 15,704 17,274
Free Maternal Health Care 443 303 304 306
Compensation For User Fees Forgone 73
73 73 73
Leasing of Medical Equipment 96 96 96 96
Road Maintenance Levy 165 214 214 214
Health Sector Support Fund-Danida 28
28 28 28
Donor Funded -World Bank 3,369 1,430 67 0
Sub-Total 17,171 16,421 16,486 17,991Internal Revenues Rates 3,600 5,000 5,500 6050
Parking Fees 2,500 3100 3,410 3,751
Single Business Permits 2,800 3,400 3,740 4,114
Bldng Permits (1.25 Of Const. Cost) 1,600 1,700 1,870 2,057
Billboards & Adverts 800 885 973 1,071
Liquor Licenses 350 379 417 458
Rents 300 325 358 394
Eastlands 280 304 334 368
Decentralization-Wards 238 262 288 317
Lease Fees NWSC 33 36 40 44
Other Markets 120 123 135 149
Wakulima Market 123 135 149 164
Fire Inspection Cert 160 176 194 213
Regul. of Bldng /Change /Amalg/Sub 140
148 162 179
Construction Site Board 270 297 326 359
Other Incomes 1,500 1,600 1,760 1,936
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Revenues Revised 2015/16
2016/2017 2017/2018 2018/2019
Sub-Total 14,814 17,870 19,657 21,623Total Revenues 31,985 34,291 36,143 39,614
Source: Nairobi City County Treasury, 2016
Chart 2.1: Revenue Projections for Medium Term Period (FY 2016/17-FY 2018/19)
106. Projected external revenues are Kshs. 16.42 billion, Kshs. 16.49 billion and Kshs. 17.99
billion for FY 2016/17, FY 2017/18 and FY 2018/19 respectively from Kshs. 17.17 billion
revised revenues for FY 2015/16. Internal revenues is projected at Kshs. 17.87 billion (52.1
percent of total revenues) in FY 2016/17 up from the revised Kshs. 14.81 billion (46.32 percent
of total revenues) in FY 2015/16. Further, internal revenues are projected at Kshs. 19.66 billion
(54.39 percent of total revenues) in FY 2017/18 and Kshs. 21.62 billion (54.58 percent of total
revenues) in FY 2018/19.
107. Revenue from the key revenue streams (Rates, Parking fees, Single Business Permits,
Building Permits and Billboards & Advertisements) is projected to grow at an average growth
rate of 10 percent over the medium term period. Figure 2.1 shows projected revenues from key
revenue streams over the medium term period.
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Figure 2.1: Projections for Key Revenue Streams in the Medium Term Period (FY 2016/17-
FY 2018/19
108. In order to achieve growth in total revenues, a number of revenue enhancement measures
will need to be implemented over the medium term. Revenue enhancement will mainly come
from automation of revenue collection processes and reduction of default rates through
strengthening of enforcement and compliance mechanism.
Analysis of Expenditure Projections
109. In the FY 2016/17, total expenditure is projected at Kshs. 34.32 billion (100.1 percent of
total revenues) from the revised Kshs. 32.01 billion (100.1 percent of total revenues) in the FY
2015/16 budget. Projected expenditures in FY 2017/18 and FY 2018/19 are at Kshs. 36.17
billion (100.1 percent of total revenues) and Kshs.39.64 billion (100.1 percent of total revenues)
respectively. Total recurrent expenditures is projected at Kshs. 23.13 billion (67.45 percent of
total revenues) in FY 2016/17 down from revised Kshs. 21.76 billion (68.02 percent of total
revenues) in FY 2015/16. Projected total recurrent expenditures in FY 2017/18 and FY 2018/19
are at Kshs. 24.32 billion (67.3 percent of total revenues) and Kshs. 25.58 billion (64.56 percent
of total revenues) respectively. Table 2.2 and Chart 2.2 below shows expenditure projections
for the medium term period.
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Table 2.2: Expenditure Projections for FY 2016/17, FY 2017/18 and FY 2018/19
Expenditures Revised 2015/16
2016/2017 2017/2018 2018/2019
Recurrent Expenditures 21,756 23,130 24,323 25,575Wages & Salaries 13,636 14,340 15,082 15,862Operations & Maintenance 6,837 7,420 7,797 8,191Debt Resolutions 1,228 1,290 1,354 1,422Emergency Funds 55 80 90 100Development Expenditures 10,256 11,189 11,848 14,067Donor Funded-Danida 28 28 28 28Donor Funded -World Bank 3,369 1,430 67 0WDF Projects 1,700 1,643 1,803 1,980EPC Projects 2,000Other Development Projects 3,159 8,088 9,950 12,059Total Expenditure 32,012 34,319 36,171 39,642
Source: Nairobi City County Treasury, 2016
Chart 2.2: Expenditure Projections in the Medium Term Period (FY 2016/17-FY 2018/19)
30
110. Personnel costs in FY 2016/17 is projected at Kshs. 14.34 billion (41.82 percent of total
revenues in FY 2016/17) from revised Kshs. 13.64 billion (42.63 percent of total revenues) in FY
2015/16. Projected personnel costs in FY 2017/18 and FY 2018/19 are at Kshs. 15.08 billion
(41.73 percent of total revenues) and Kshs.15.86 billion (40.04 percent of total revenues)
respectively. Projected reduction in compensation to employees over medium term period is due
to foreseen retirement, natural attrition and freeze of employment by County Public Service
Board.
111. Operations and Maintenance costs in FY 2016/17 is projected at Kshs. 7.42 billion (21.64
percent of total expenditures) from the revised Kshs.6.84 billion (21.4 percent of total
expenditures) in FY 2015/16. Projected O&M costs in FY 2017/18 and FY 2018/19 are at Kshs.
7.8 billion (21.57 percent of total expenditures) and Kshs. 8.19 billion (20.68 percent of total
expenditures) respectively.
112. Allocation for Ward Development Fund (WDF) is projected at Kshs. 1.64 billion (4.8
percent of total revenues) in FY 2016/17 from the revised Kshs. 1.7 billion (5.3 percent of total
revenues) in FY 2015/16 budget. Projected allocations for WDF in FY 2017/18 and FY 2018/19
are at Kshs. 1.8 billion (5 percent of total revenues) and Kshs. 1.98 billion (5 percent of total
revenues) respectively.
113. Total development expenditures will increase marginally over the medium term period.
Development expenditure in the county in FY 2016/17 is projected at Kshs. 11.19 billion (32.63
percent of total revenues) from the revised Kshs. 10.26 billion (32.1 percent of total revenues) in
FY 2015/16. Projected development expenditures in FY 2017/18 and FY 2018/19 are at 11.85
billion (32.78 percent of total revenues) and Kshs. 14.07 billion (35.51 percent of total revenues)
respectively.
114. Development expenditure will be geared towards county strategic policy interventions in
health, education and physical infrastructure. Development budget will be funded through
external resources from the national government transfers, development partners like World
Bank and Danish International Development Agency (DANIDA) and through Public Private
Partnership (PPP) framework which will close gap of capital investment. PPPs will contribute to
31
accelerated development of infrastructure facilities and long-term financial sustainability and
affordability. County government has identified projects to be funded under PPP framework.
Projects earmarked for PPP are: Upgrading of Mutuini and Pumwani Maternity Hospital and
Urban Renewal Project.
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CHAPTER 3: POLICIES TO ACHIEVE MEDIUM TERM OUTLOOK
3.0 INTRODUCTION
115. The Policies set out in the 2016 CFSP are underpinned by the Governor’s stated seven point
development agenda that seeks to transform the City in order to deliver:
1) Better health, water and sanitation
2) Better services in transport, housing and infrastructure.
3) Better security and better inter-ethnic relations.
4) Better facilities and opportunities for early education and youth development
5) Better life for Nairobi residents with respect to enterprise development and employment
creation.
6) Better attention to the needs and rights of women, children and persons with disability
7) Better management of city’s resources.
116. The sustained implementation of prioritized programmes in the CIDP 2013-2017 is
expected to translate into improved quality of life for the people through positioning Nairobi as
the City of choice for all to invest, work and live. This in turn will translate into expanded
employment opportunities and rapid poverty reduction. The delivery of the seven outcomes
listed above will be pursued through seven key performance areas namely:
3.1 Area (I): Governance and Stakeholder Participation
117. Sustainable economic development and growth is largely influenced by good governance
that seeks to best deliver to the expectations of the people in a timely, efficient and predictable
manner. Furthermore, good governance is a major ingredient for attracting quality investment
that is expected to trigger economic development in the County. The Government seeks to
further entrench gains made in inculcating principles and values of good governance. These
include; Accountability, Transparency, Excellence, Accessibility, Integrity, Responsiveness,
Teamwork and Equity.
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3.1.1 Stakeholder Participation
118. The government will upgrade the communication protocol for internal and external
stakeholders so as to achieve full participation of all stakeholders in governance, development
planning, resource allocation, service delivery and monitoring & Evaluation. In realization of
the objects of devolution, already considerable gains have been made through activation of
seventeen (17) sub-county and eighty five (85) ward services. The government will be rolling out
an elaborate communication plan as a component of the just concluded Nairobi County Strategic
Plan 2015-2016.
3.1.2 Enabling Legislation
119. Being cognizant that we are in the transition to the devolved system, it is important for
relevant instruments of governance to be legislated on in order to fill existing gaps in the legal
framework for effective delivery of the mandate of the County government.
The government will be working towards reviewing relevant laws especially in Education,
security and disaster management in order to align them to devolution requirements.
Corruption Eradication
120. Corruption in all its forms must be eradicated from all arms of our institution in order for all
to obtain high quality of service and equitable socio-economic development. The government
has recently concluded government functional reorganization that was partly meant to cut
existing cartel networks in order to improve service delivery and employee productivity.
The government has resolved and embarked on implementing the Internet Banking (I/B) protocol
as a component of the Integrated Financial management Information System (IFMIS) in all its
financial transactions. This is expected to promote controlled expenditure, reduce cheque chasing
by suppliers while promoting transparency and accountability.
3.2 Area (II): Financial Sustainability
121. In line with Article 226 of the Constitution of Kenya and the Public Finance Management
Act 2012, the Government is committed to ensure sound long-term financial principles.
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3.2.1 Revenue Management
122. Challenges continue to hamper full realization of Internal revenue targets towards financing
the budget with a fiscal gap ranging between 20-25% between 2013, 2014/15 and it is projected
that the 2015/16 target shortfall will stand at 20%.
123. These below par outcomes are attributed to weak revenue collection systems, non optimal
collection in major revenue streams particularly in Rates and Parking, leakages in the system due
to inadequate internal controls and undercharging in some areas.
124. In this regard, the government will accelerate the pace of automation of the revenue
collecting system to enhance effective collection, seal existing loopholes, tighten internal
controls to eliminate pilferage, update the property and business registers so as to widen the tax
base. A regular review of fees and charges through the finance bill will be carried out on a timely
basis.
3.2.2 Expenditure and Cost Management
125. The government is committed to ensuring prudent application of public resources for
maximum returns to the public. In this regard, ongoing reforms in public procurement will be
accelerated in 2016/17 to guarantee value for money in each expenditure. Benchmarking market
prices for goods and services with the Public Procurement Oversight Authority’s guidelines,
shortening the duration of effecting payments for goods/services rendered and enforcing strict
adherence to terms and conditions of contracts.
3.2.3 Integrated Planning, Monitoring and Evaluation
126. In order to improve on development budget absorption and guarantee feasible returns on
capital investment in the medium term, the County treasury is committed to enhancing budgetary
resources towards Economic Planning in order to facilitate timely production and dissemination
of development plans, research, production and dissemination of County statistics as well as
regular monitoring & Evaluation. Emphasis will be put in impact studies on core poverty
alleviation, population and social sector investment outcomes.
35
Additionally, sector-wide capacity development on project design, Planning and management
will be enhanced to ensure that only projects with the highest propensity to address priority
socio-economic concerns facing Nairobians receive funding.
3.2.4 Resource allocation & Absorption
127. Acknowledging that resource requirements for all our programmes by far exceed the
resource outlay, we shall be seeking to address the growing budget financing gap, growing intra-
county development disparities, the low absorption of development expenditure, the growing
debt portfolio and ineffective funding towards low income areas.
128. In this regard, the Government is committed towards a realistic, balanced and pro-growth
budget that is in perfect consonance with the fiscal responsibility principles. This includes
sustaining the wage bill at current levels with prospects of a decline due to exit, exercising
restraint from non-core borrowing, and accelerating resource allocation for programmes geared
towards addressing development in low income areas.
129. Expanding resource outlay through Public Private Partnerships particularly for high return
programmes in Health, Housing and Infrastructure will particularly be leveraged on.
3.2.5 Asset Management
130. The Government will fast track the operationalization of the county Asset management
Policy in order to address the inheritated state where no framework existed for taking stock and
updating the Asset register. This has led to many county properties finding their way into private
hands. These assets include land among and buildings. We are committed to setting up a
functional central asset and risk management registry.
3.3 Area (III): Institutional Transformation
131. The County Government has put in place systems to ensure that the entire organization
shifts gear from the grim image of the defunct City Council. In this regard a new set of values
have been agreed upon through an elaborate consultative process and the government is
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committed to bring this to fruition through a well thought out Culture Change Programme that is
currently being implemented.
3.3.1 Organizational structure
132. The government has completed and adopted a structure that defines the flow and is in the
process of making substantive appointments for suitably qualified staff in order to bring to an
end uncertainty and low morale among staff that have been in acting capacity for a long time.
The County Public Service Board (CPSB) is expected to complete the exercise of making
appointments with clear terms and conditions of service in order to streamline functional
relations in the government structure in order to enhance efficiency in service delivery.
3.3.2 Capacity Building
133. The misalignment of skills, personnel deployment as well as lack of adequate succession
planning has led to overstaffing in some of the lower levels as well as misplacement of skills in
some key positions. The Government has initiated a number of programmes for capacity building
for staff.
134. The County government seeks to further the existing partnership for staff training with the
Kenya School of Government towards implementation of an effective working culture and a
positive attitude towards service delivery through professional training.
3.3.3 Performance Management
135. The County has embraced the results based Approach in all its operations. In furtherance of
this practice sector plans have been developed, RRI teams constituted and the practice of
Monitoring & Evaluation across all departments. The Council of Governors working with the
Ministry of Devolution and planning has ratified guidelines for implementing the 12 th Cycle (FY
2015/16) performance contracts. The County Government of Nairobi is committed to ensure full
implementation.
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3.4 Area (IV): Physical infrastructure and services
136. In order to ensure sustained economic transformation, and a competitive City economy, the
government has embarked on massive investment in Road network expansion and maintenance,
street lighting, energy, expansion of non-motorized transport facility and traffic decongestion.
3.4.1 Road Network Rehabilitation & Expansion
137. Considerable progress has been made in the implementation of road rehabilitation and
construction programme and a number of key projects have been completed. To date, the
government has constructed…………..
Over the medium term, the strategy is to develop the road transport in order to have an effective,
efficient and secure road network, step up road transport safety and regulation through
developing and implementing road transport policies for an efficient and safe transport system.
In this regard, the target for the medium term is to maintain 550Kms of Roads across the county
on required basis. This will involve patching, sealing, filing ruts, cracks and depressions and
rectifying defects arising from use. Key projects earmarked for implementation during the
medium term include; completion of the Outer-Ring road, Nairobi Metropolitan Services
Improvement Project (NAMSIP), Rehabilitation of Bus infrastructure(bus lanes and stations),
widening the Enterprise Road, Construction of Kangemi-Jogoo Road as a component of
NAMSIP, implementation of approved WDF road projects and other related aspects of the
NUTRIP.
3.4.2 Traffic Management & Decongestion
138. The current road network coupled with the state of traffic management systems are
inadequate to meet the current and future demands as envisaged in the Kenya Vision 2030 blue
print. The deterioration of traffic conditions can be explained by the rapid increase in the number
of private cars, lack of an efficient Rapid mass public transport system, poor enforcement of
traffic regulations and lack of discipline on motorists and other road users.
In the medium term, the target is to roll out a traffic simulation system, implement and expand
signalized junctions, develop an Intelligent Transport System for the City, construct and
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commission commuter rail and operationalize a Rapid Public mass Transport System for the
City.
3.4.3 Non-Motorized Transport
139. Non-Motorized transport facilities serve a significant proportion of the population and
constitute a major mode of transport in the City. Over the recent years, investment in these
critical facilities has not matched the demand.
140. Over the medium term, the government will seek to expand existing NMT facilities to
include the 6Km expansion at Kenyatta Market, Haille Selassie avenue from Ragati Road to Moi
Avenue, Uhuru Park and along City hall way.
Additionally, the government will maintain the existing 5000M of NMT infrastructure on as and
when required basis.
3.4.4 Energy
141. Cognizant that the energy regulatory and reticulation function has not been devolved to the
County Government; availability of affordable, reliable and adequate energy in the City is a key
concern of the County government. We are conscious of the prevailing chronic over reliance on
one source of energy, inadequacy of the regulatory framework for the energy infrastructure and
efficiency.
142. While considerable ground has been covered in lighting up the City with over…no of lights
installed in 2014/15 and …..no in 2015/16, we target to raise the proportion of the City fully lit
from the current 30% to over 80% in the medium term.
In this regard, the government is keen on developing and rolling out a green building promotion
programme in order to diversify into other eco-friendly energy sources, promote the adoption of
more efficient energy infrastructure such as LED lights and implementation of a maintenance
programme for energy infrastructure.
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3.4.5 Drainage Infrastructure
143. A well functioning drainage system is a major safeguard for road infrastructure, property
and lives of people during flash floods which have become more regular and heavier in impact
over the last few years.
In this regard, the government will invest in maintenance of 100Km of storm water drainage
through regular cleaning and replacing damaged parts. Installation of storm water drains in the
CBD. Additionally, missing manholes will be fitted alongside drainage improvement in
identified roads across the County.
3.4.6 Water & Sewerage Infrastructure
144. The rapid population growth in the City has led to an increase in the demand for water for
domestic and industrial use. With 76% of households connected to water system, the County
seeks to ensure that supply of water is reliable. In this regard, investment in developing ground
water, development of the Northern collector and rehabilitation of the cleansing depot remain a
priority for the water sub-sector.
Cognizant that only 40% of the population is connected to the sewer line, the government will
invest in expansion of the sewer line so as to serve a greater proportion of Nairobians. Further,
improvement of sanitation facilities particularly in the informal settlement areas will be
actualized.
3.4.7 Waste Management
145. The Nairobi City County generates an estimated 2000 tones of refuse daily with 68% of this
being domestic waste. The County government is committed to proper waste management to
ensure the city is clean. A number of strategies will be employed to effectively deal with solid
Waste. This includes further investment in SWD infrastructure, creating additional landfills,
enhancing the capacity for timely collection and disposal of wastes. Behavioral change
programmes for the resident in order to inculcate the 4Rs plan will be key in addressing the
waste management sustainably.
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3.5 Area (V): Social and Community Development
146. The government recognizes the important role played by the social sectors of Education and
health in making sustainable socioeconomic transformation a reality. A well coordinated and
fully functional social package will reduce the burden of economic shocks on households and
enhance access to services by most Nairobians. In this regard, the Government will continue
investing in quality and accessible healthcare services and quality education as well as
strengthening the social protection programmes. This investment will target the Youth, Women,
Children and People living with disabilities for social inclusion.
3.5.1 Healthcare
147. In line with the Kenya Health Policy (2014-2030) and the Kenya Health Sector Strategic
and Investment Plan (2014-2018), Nairobi County government is leading the way to making
universal health coverage a reality. Through rapid health infrastructure expansion, acquisition of
specialized equipment and capacity building, we continue to register impressive gains in this
sector. We are committed to accessible high quality free maternity services in all our facilities.
While we continue to rehabilitate and equip Pumwani Maternity hospital that currently registers
an average of 80 births daily, we continue to extend the capacity of other health centres to offer
this service. For instance in 2015/16, Mukuru Health centre unveiled a 20m, 24 bed capacity
maternity wing operating 24 hours. In Korogocho health Centre we unveiled a 12 bed capacity
maternity ward and Mutuini Hospital is set to open its doors to a state of the art 100 bed capacity
maternity ward in 2016.
148. In order to decongest Kenyatta Referral hospital, the County government is keen on
investing in expanding the capacity of Mbagathi District Hospital for a wider and more
comprehensive health package. Only recently, the Government unveiled the new 112 body
capacity cold room at the hospital complete with 2 autopsy tables, washing and modern
embalming equipment.
149. An upgrading programme targeting 16 health facilities will be pursued in the medium term.
Two flagship projects in this sector are set to transform the face of healthcare provision in the
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region namely Pumwani Maternity Hospital and medical school and Mutuini district hospital.
Both will be undertaken through PPP arrangement in 2016.
3.5.2 Education, Children and Youth development
2014 2015
Public Private Non-formal
Public Private Non-formal
Total number of ECDE centers 202 90 800 202 93 Over 800
Total number of primary schools 203 100 914 204 100 914
Total number of DICECE & CICECE 2 2 - -
Home crafts Centres & Youth Polytechnics 11 11 - -
150. While the education sector continues to record impressive outcomes in terms of gross
enrolment rate of over 98% and a pre-school retention rate estimated at 99.8% and a transition
rate of 98%, there is need to expand the scope of access to quality formal education. With over
80% of the operational ECDE centres being non-formal, the government is committed to ensure
access to quality education is guaranteed.
151. In the medium term, the government will put up eighty (80) new ECDE centers fully
equipped and staffed for enhanced delivery of quality education.
152. Primary and Secondary education functions still remain with the National government.
However, with a recorded dropout rate of 3.6% and a transition Rate of only 65.7%, there is need
for concerted efforts towards addressing the underlying challenges.
153. Outcomes in Secondary education are a matter of grave concern for the County
Government. With a gross Enrolment Rate of 35.5%, a net enrolment rate of 25.8% and a
dropout rate of 5.5%, the County Government will continue investing more resources towards
the Education Bursary for supporting learners from needy backgrounds. Over the last three years,
the Government has increased the level of funding towards bursary support by over 300% with
Ksh 74M in 2013/14, Ksh 212M in 2014/15 and ………in 2015/16.
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154. The DICECE& CICECE department was transferred to the management of the County
Government in the year 2015. This department is charged with the responsibility of training
ECDE teachers in two (2) established centers in the County. The government will avail adequate
resources towards supporting this department execute its mandate more effectively.
155. Improving and expanding schools and training institutions infrastructure through
construction/ rehabilitation of class rooms and integration of ICT in curriculum delivery will be a
target for the medium term.
156. The government is committed towards aligning education and training curricula to the
demands of changing labour markets by developing competency based education and training for
TVET and revitalizing the 11 Youth Polytechnics in the County.
157. The overall strategy in education during the medium term is to focus on developing
educational delivery standards and strengthening quality control, continued curriculum reforms
and educational inspectorate services in order to enforce and uphold quality education.
3.5.3 Empowering Youth, Women and Persons with Disabilities
158. The government recognizes the great potential for a social turn around through
empowerment of Youth, Women and persons with disabilities. In this regard, 30% of available
procurement opportunities will be dedicated to enterprises run by these three categories.
3.5.4 Housing
159. Housing needs for the City stand at 100,000 units annually. In order to mitigate this
demand, the County government seeks to redevelop….no of old estates through urban renewal
program. This programme is expected to deliver additional…….no of housing units within the
medium term. An estimated 650,000 additional persons will be housed in decent and affordable
shelter by end of 2017. The bulk of resources for this program will be harnessed through Public
Private Partnership.
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3.5.5 Sports and Recreation
160. The Government recognizes the important role played by sports in enhancing cohesion and
national cohesion. Additionally, there are considerable health benefits associated with functional
sporting and recreational services in the County. In this regard, the government will invest in
modern and high quality sporting and recreational facilities that are well distributed across the
County.
3.5.6 Arts and Culture
161. The City is a centre of cultural diversity with a marked presence of both local and external
content. It is the commitment of the government to promote artistic and cultural development
through festivals, museums and art exhibitions.
3.5.7 Libraries
162. The government is committed to promoting an active reading culture in the County.
Existing library services will be automated, modernized and equipped to actualize this goal over
the medium term. New libraries will be constructed in identified sub-counties with the
establishment of a mobile component to complement existing facilities.
3.5.8 Cemeteries, Crematorium and Corona Services
163. Currently, there exists an acute shortage of cemetery facilities due to inadequate land
available for this important facility. The City’s main cemetery ground at Langata is constrained
and there is urgent need for developing a new facility. The government targets to acquire 200
acres of land towards developing this facility.
The Government is committed to expanding, modernizing and improving the quality of services
offered at the City mortuary.
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3.6 Area (VI): Safety and Environment
3.6.1 Safety and Security
164. The Government is committed to guaranteeing a safe and secure environment for residents,
investors and workers to operate in. In this regard, resources will be invested in security
surveillance, intelligence gathering, personnel training and equipment. The city inspectorate
department will be modernized to achieve a trustworthy and recognized law enforcement status
that strictly observes human rights in the discharge of their mandate. This sector will require a lot
of collaboration with members of the public, National security agencies and other development
partners to actualize.
3.6.2 Disaster Management
165. The City is prone to a number of natural and manmade disasters. These include terrorism,
Flooding, Infrastructure failure, disease outbreaks and poverty. In this regard the Government is
committed to developing and implementing a resilience plan aimed at mitigating against adverse
effects of such occurrences. During the 2015/16 financial year, considerable experience on the
benefits of prior planning was gained during the El-Nino rains. Due to advance planning, no life
was lost and minimum destruction to property was reported. Going forward, the government
seeks to institutionalize the culture of preparedness in order to improve resilience.
3.6.3 Emergency services
166. In order to achieve better response times during emergencies, the Government will adopt a
distributive approach of fire and ambulance services across the County. In particular, ambulance
services will be operationalized through sub-counties while fire sub-stations will be established
on either side of the City away from the CBD. Resources will be injected in opening up access
routes especially in the Eastlands and informal settlements.
3.6.4 Traffic Management & Parking Control
167. During the medium term, the Government is committed to up scaling Traffic management
reforms initiated in the last one year so as to achieve an efficient traffic management system. A
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programme to sensitize all traffic users on compliance to traffic rules and embracing traffic
courtesy will be rolled out in the county. Development of adequate infrastructure for buses and
matatus will be undertaken to cut down on obstruction. More parking slots will be developed
through investing in multi-story car parks to accommodate more cars.
3.6.5 Environmental management & Climate Change
168. The government is committed to confronting the realities of climate change through
adoption of technologies for climate change mitigation and resilience, human resource
development and partnership with academia and other research institutions.
3.6.6 Forestry
169. Over the last decade, the City has witnessed a systematic depletion of forest cover as
development of housing and other urban infrastructure take precedence. This trend continues to
threaten the rich urban nature and biodiversity that Nairobi is endowed with. In this regard, the
government will coordinate a structured programme to restore forest cover and conserve
biodiversity for shared prosperity.
3.6.7 Natural resources
170. The Government is committed to ensuring that natural resource endowments in the county
are sustainably exploited for the maximum benefits of both the current and future generations. In
this regard, control measures will be institutionalized in the management of quarrying and water
resources in the County.
3.6.8 Parks and Open spaces
171. In the medium, the Government will seek to ensure all public open spaces and parks are
delimited, fenced and well maintained to ward off possible encroachment by private developers.
This will be achieved through integration of all parks and open spaces in the in the City’s Urban
planning programme.
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3.7 Area (VII): Planning and Economic development
3.7.1 Spatial and Urban Planning
172. The Government seeks to achieve a well regulated and integrated urban development which
ensures an inclusive City that is responsive to both the needs of the present and future
generations. Towards this end, resources will be availed in developing an integrated urban
development Plan, controlled development, enforcing development code, pursue regularization
programme for past developments and establishment of a robust physical address system.
3.7.2 Urban Renewal
173. This sector has recently been upgraded through the Government reorganization into a fully
fledged sector. This is in recognition of the urgent need to reinvest in revamping our dilapidated
neighborhoods especially in the old estates. In this regard, the government will be working
towards investing in modern housing and neighborhoods, integration of land use and
infrastructure development and maintenance.
174. The flagship programme is the redevelopment of six (6) old estates through a Public Private
Partnership arrangement.
3.7.3 Agriculture & Livestock
175. The government recognizes the enormous potential in Urban agriculture for socio-economic
transformation of communities. In particular, this sector will address food security, nutritional
status and food safety.
The strategy for the medium term is to mainstream urban agriculture into the urban planning
process, review County Acts and policies for food safety and enhance zoonotic control.
3.7.4 Fisheries
176. The target for this sub-sector in the medium term is to increase fish production to meet at
least 50% of the local demand for fish. In this regard, aquariums will be constructed, fish ponds
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and coordination of fish production enhanced as well as investing in market infrastructure. A
review of policies governing this sub sector will be undertaken.
3.7.5 Trade and industry
177. The government recognizes the important role played by Trade and Industry in employment
creation, income generation for households and thus boosting improvement of quality of life to
the people. It is also an important catalyst to economic development. In further development of
this sector, the government will inject resources for development of well planned, regulated and
maintained trading facilities and enforcement of relevant legislation.
178. Designated trading centers for informal traders will be established, a weights and measures
modern laboratory will be established and a centralized automated monitoring system
operationalized in the County. A programme will be rolled out towards facilitating growth of the
Small Micro and Medium Enterprises while reviewing the policy on Single Business Permit to
ease the process of establishing and running businesses in the City.
3.7.6 Cooperative & Enterprise development
179. In recognition of the enormous potential of the cooperative movement in capital formation
and employment creation, the County government will enforce existing legislation; revive
dormant cooperatives and upscale registration and supervision of new enterprises.
The cooperative development policy and registration will be relooked at with a view to achieving
an optimal modus operandi that will catalyze growth in this sub-sector.
3.7.7 Tourism & wildlife
180. The Government seeks to establish a world class and well developed modern tourism
facilities with a comprehensive and enabling tourism policy.
Towards this end, investments will be made in development of adequate modern tourism
infrastructure which efficiently supports tourists to visit tourist hotspots. Complementary County
branding and marketing as an internationally recognized tourist destination will be undertaken.
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3.7.8 Land Valuation and Property Management
181. The Government seeks to modernize its land management registry through adoption and
implementation of a GIS based valuation system. This will ensure that all properties are
frequently updated in the central land registry. Towards this end, investment in attainment of a
valuation and rating system backed by an effective IT system is paramount. A harmonized land
and property zoning system and a secure registration and survey system will be operationalized.
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CHAPTER 4: BUDGET FOR FY 2016/17
4.1 Introduction
182. This chapter outlines; the County’s guiding policy on expenditure, the resource envelope,
the expenditure projection. It also includes the Key priorities for the sectors for the FY
2016/2017 and Ward Development fund.
4.2 Guiding Philosophy
183. We seek to guarantee sustainable financial viability, optimize expenditure, embrace
participatory Monitoring & Evaluation in order to improve economic and human development.
4.3 Resource Envelope
184. During the FY 2015/2016, the county had an approved budget of Ksh 30.83 Billion.
However, because of increment in expenses such as: waste management due to contracting of
NYS at Ksh 420 Million, medical insurance of Ksh 250 Million and liquor board of Ksh 344
Million, the treasury proposes to revise the budget upward to Ksh 31.98 Billion through a
supplementary paper. Being guided by the County’s philosophy stated above of spending within
our means, the County treasury projects a total budget of Ksh 34.29 Billion for the FY
2016/2017. This will translated to a an increment of 11% on the current financial years’s
approved budget.
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Figure 4.1: Sources of Revenue for FY 2016/20117
185. It is expected that the internal sources of revenue would generate 52%, National
Government transfers, 44% while funding from development partners would be 4% as indicated
in the figure 4.1 above.
4.3.1 Internal Revenue
186. The internal sources are expected to generate Ksh 17.87 Billion. This will be mainly from;
Rates (Ksh 5 Billion), Single Business Permits (Ksh 3.4 Billion), Parking fees (Ksh 3.1 Billion),
Building Permits (Ksh 1.7 Billion), Billboards and Adverts (Ksh 0.88 Billion) while other fees
and charges are expected to generate Ksh 3.79 Billion during the said fiscal period 2016/2017.
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Figure 4.2: Internal sources of revenue by streams
187. From figure 4.2 above, rates will contribute the highest percentage of internal revenue at
28%, followed by SBP and parking fees at 19% and17% respectively. Revenue from building
permits and billboards are also expected to generate 10% and 5% respectively while other
revenue sources will generated an equally significant proportion of the total expected internal
revenue of 21%.
4.3.2 External Revenue
188. The external sources are projected to raise Ksh. 16.42 Billion. Ksh 14.27 Billion will be
from equitable share, Ksh 0.68 Billion will be from (Conditional grants) such as; free maternal
health care, leasing of medical equipment, compensation for user fees forgone and road
maintenance levy. Development partners on the other hand will contribute Ksh 1.46 Billion
towards the budge.
189. There is an increment of 9.85% on equitable share but a decrease on compensation for user
fees forgone by 24.83% for the fiscal period 2016/. However, road maintenance Levy has
increase by 17.58% from the allocation of FY 2015/2016
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Conditional Allocations
1. .Free Maternal Healthcare
190. The County is eligible for a conditional allocation for free maternal healthcare amounting to
Kshs 0.303 Billion which translates to 7.04% of the national allocation for free maternal
healthcare of Kshs. 4.3 Billion.
Conditions
i. This funding must be included in the budget estimates of the County government
ii. Work plans must be prepared and shared with the Ministry of health with copies to the
National Treasury
2. Leasing Medical Equipment
191. The County is eligible for a conditional allocation for Leasing Medical Equipment of Kshs.
0.096 Billion which translates to 2.13% of the national allocation for this category of Kshs. 4.5
Billion.
Conditions
i. The funding must be included in the budget estimates of the County government
ii. Work plans must be prepared and shared with the Ministry of Health with copies to the
National Treasury.
iii. The allocation must be used to lease medical equipment for County health facilities.
iv. County government must provide a report/ proof that funds were used to finance leasing
of Medical equipment.
3. Roads and Maintenance and Fuel Levy fund
192. The total allocation for the entire country was Kshs. 4.306 Billion. The County is eligible
for a conditional allocation for this category at Ksh 0.215 Billion which translates to 5% of the
total allocation.
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Conditions
i. This funding must be included in the budget estimate of the County government.
ii. Work plans must be prepared and shared with the state department of infrastructure
with copies to the national treasury.
iii. The allocation must be used for the maintenance of the County roads
iv. County government must provide a report/proof that funds were used to maintain
County roads
4. Health Sector Support Fund
193. The health sector support funds are mainly Compensation for user fees forgone and Sector
Support Project Allocation from Danida both of which have the same conditions.
The Conditions are:
i. This funding must be included in the budget estimate of the County government
ii. The allocation must be used to supplement financing of the health care facilities in the
County government
iii. County government must provide a report/proof that funds were used to finance
County health care facilities
iv. Work plans must be prepared and shared with the ministry of health
(A) Compensation for user fees forgone
194. It is the intention of government to sustain the Government policy of not charging user fees
in public health facilities. The total allocation for the entire country was Kshs. 0.9 Billion for
revenue forgone by not charging user fees in the. The County is eligible for a conditional
allocation for this category at Ksh 0.073 Billion which translates to 8.19% of the total allocation.
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(B) Sector Support Project Allocation from Danida
195. This conditional allocation from Development Partners is mainly from Danida. The County
is eligible for a conditional allocation of Ksh 28,000,000 in this category which is subject to
confirmation from the Danish Government.
4.4 Expenditure Projection
196. In the FY 2014/2015 the total expenditure was approximately Ksh 25.59 Billion, while in
2015/2016 the approved estimates were Ksh 30.83 Billion. The absorption for both recurrent and
development as at mid-financial year 2015/2016 stands at 37.1%. However, because of the
additional resource requirements, the treasury has proposed an upward revision of 3.75%.
197. For the coming FY 2016/2017, the projected total expenditure is Ksh 34.29 Billion of which
32.5% will be channeled to development programmes.
Figure 4.3: Trends in expenditure for Past, Current and the Coming 2016/217 FYs
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4.4.1 Recurrent Expenditure
198. The key recurrent expenditure items include: Personal Emoluments; Operation and
Maintenance; Debt repayment and Emergency fund. In the last financial year, the recurrent
expenditure was Ksh 18.74 Billion, for the FY 2015/2016, the approved recurrent expenditure is
Ksh 19.96 Billion but is however being proposed in the supplementary budget to increase to Ksh
21.76 Billion, as a result of increment in expenses on: waste management due to contracting of
NYS at Ksh 420 Million, medical insurance of Ksh 250 Million and liquor board of Ksh 344
Million among others.
199. The total recurrent costs for the FY 2016/2017 are projected at (Ksh23.13 Billion) that will
be a slight increase from the current financial period revised allocation by 6.3%.
Figure 4.4: Recurrent Expenditure by Category for FY 2016/2017
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200. Employee Cost will account for 62% of the recurrent cost while O&M and Debt resolution
will take 32% and 6% respectively as depicted in the figure 4.3 above.
Emergency Reserve
201. In the FY 2015/2016, the county allocated Ksh 55 million towards emergency reserves.
However, in the recent past, the County has experienced a number of emergencies such as Elnino
rains as a result of the effects of climate change, collapsing of buildings and outbreak of disease
such as cholera that were unforeseen during the budget preparation. Learning from these
experiences, the County treasury proposes to increase this reserve to Ksh 80 million that will be
used in disaster preparedness as well as mitigating on the effects of any unforeseen disasters that
may occur. Which is 45.5% increment from the allocation of FY 2015/2016.
4.4.2 Development Expenditure
202. Despite the heavy burden the County face from its recurrent expenses, the County strives to
achieve the minimum allocation of 30% of the total budget towards development each year. In
the FY 2015/2016, Ksh 10.87 Billion was allocated for development of which Ksh 1.7 Billion
was set aside for the WDF (5% of the total revenue) while the remaining Ksh 9.17 Billion for
other development programmes.
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Figure 4.5: Distribution of Development Allocation FY 2016/2017
203. The treasury proposes to allocate Ksh 11.16 Billion for development expenditure which is
an increase of 2.65 % of the previous budget’s allocation. From figure 4.4 above, WDF has been
allocated 15% of the total development allocation while other development programmes will
account for 72%. Of the expected development fund, 13% will be from development partners
mainly World Bank and Danida each contributing Ksh 1.43 Billion and 0.028 Billion
respectively.
4.5 KEY PRIORITIES FOR THE 2016/17 MEDIUM TERM BUDGET
204. Budget estimates for the FY 2016/2017 shall be based on the priorities outlined below
which are guided by the County Integrated Development Plan, County Strategic plan and Kenya
vision 2030 and the priorities will aim at accelerating growth, employment creation and poverty
reduction.
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4.5.1 Physical Infrastructure and Productive Sectors (Public Works Roads & Transport,
Energy, Water, Environment & Natural Resources, ICT, AGRIC, Livestock &
Fisheries)
205. During the period 2016/17, the County expenditure priorities will target Physical
Infrastructure and Productive Sectors to spur County economic growth and development. The
County will invest heavily in infrastructure development towards increased production, increased
access to essential services and overall economic Growth. The County will address infrastructure
challenges by accelerating ongoing physical infrastructure development, rehabilitation and
maintenance of existing infrastructure facilities as well as construction of new infrastructure
facilities. This will be achieved through continued provision of significant resources to support
provision of energy, ICT infrastructure and roads infrastructure.
206. Another sector in this category is agriculture, livestock and fisheries. Investing in
Agricultural sector not only achieves economic growth but also ensures food security, job
creation, income generation and overall poverty reduction. Though this sector is not given much
attention in the County, the sector is the mainstay of the economy with linkages in
manufacturing, distribution and other service related sectors. The County therefore aims at
raising agricultural productivity and increase commercialization of agriculture. This will be
achieved through crop development, enhanced accessibility to affordable farm inputs, adding
value to agricultural produce, extension services and promotion of agro based industries,
livestock development and promotion of fish farming in the county.
207. For water and environment the county will invest in the development and expansion of
water infrastructure, enhancing sewerage services and employing technology in waste disposal
and management in order to improve the state of the environment in the County.
4.5.2 Governance, Social and Service Sectors (Public Admin, Health & Education)
208. For FY 2016/17 the County is committed to give much allocation to social sectors which
are education and health services in order to improve quality of life of Nairobians which is in
line with social pillar of Vision 2030. Also governance and public administration will not be
under looked.
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209. Governance and public administration sector is responsible for all operations relating to the
fulfillment of public policy and the sector will provide sound policies and a solid framework for
quality and efficient service delivery to the public service. The key priorities for the sector
include; Instituting County public service reforms to ensure efficient and effective service
delivery, Providing leadership and guidance in human resource management, effective
management and coordination of government operations, and formulation of Sound public
administration policies.
210. The health sector forms a key component of the social pillar of the Vision 2030, with a goal
to develop a population that is healthy and productive and able to fully participate in and
contribute to other sectors of the economy. For health sector, the County shall ensure provision
of equitable and affordable healthcare at the highest affordable standards. In the medium term,
the County government will seek to address health related challenges through continued
investment in training of health professionals, providing preventive and promotive health care,
curative care, upgrading and rehabilitation of health centers, purchase of ambulances and
improvement of the working conditions of medical practitioners.
211. The County will also commit its resources to offer quality education, sport facilities and
youth development initiatives. This will be achieved through construction of ECDs,
polytechnics, construction of social halls, rehabilitation centers and sport facilities.
4.5.3 Economic sectors (Trade, Industrialization & Cooperative, Finance & Economic
Planning, Urban planning, Urban Renewal)
212. To spur county economic growth and development, the county will invest in trade sector,
industry and cooperatives, urban renewal and urban planning. Trade sector has potential for
wealth creation, FDI and employment creation. With regard to trade, the county will put effort to
deepen business regulatory reforms, enhance access to credit and training of small and medium
business entrepreneurs.
213. Strategic efforts will be made to diversify markets by providing an environment conducive
for business and ensuring that there is investor confidence. This will be achieved through
development of policy, legal and institutional reforms for the development of the sector, fair
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trading licenses, support entrepreneurship ,construction of markets and Jua kali sheds and
industrial development.
214. Given the current demographic trends, specifically in Nairobi due to rural- urban migration,
the county shall invest a lot in housing sector in order to provide adequate, affordable and decent
houses in a sustainable environment. This will be attained through; better development of and
access to affordable and adequate housing; housing and land reforms urban renewal Land
surveying and mapping.
215. For finance and economic planning sector, considerable resources will be allocated to
enhance its capacity for policy formulation, planning, budgeting, performance management as
well as tracking results for investments in the public sector. The sector will enforce the reviewed
fees and charges as per the County Finance Act, 2015 and prepare a revenue enhancement plan
for each revenue stream and target to reduce the current county debts.
4.6 KEY SECTOR PRIORITIES FOR 2016/17
4.6.1 Transport, Infrastructure & Public Works
216. During the FY 2016/17, the sector seeks to pursue harmonization of institutional, regulatory
and legal framework to enhance mobility of city residents, service delivery and spell out clearly
defined responsibilities and authority.
217. The sector’s priority is the development of Transportation Master Plan that will include
public transport master plan, NMT master plan, and intelligent transport system master plan. The
development of transport and drainage infrastructure development plan, Asset Management
System and Road Safety Policy and Strategy. Public Lighting Policy remains a priority for the
sector. This will also cover urban infrastructure standards, maintenance policy and strategy. The
sector will implement the priorities arising for the recommendations of the consultant on
development of traffic improvement schemes to improve traffic congestion in CBD.
218. The sector’s other priority is the development of a storm water drainage master plan and
implementation of critical storm water drainage investments and other flood mitigation measures
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which will cover the procurement of tools and equipment, development of storm water drainage
infrastructure standards, design of storm water drainage infrastructure and development of
maintenance policy, operations and maintenance manuals as well as an asset management
system.
219. The sector will continue to develop and maintain, institutional buildings, transport and
drainage infrastructure assets to ensure reduced road user costs, safeguard physical investments
and enhance safety and security. The sector will engage development partners for technical
assistance in developing the transport and storm water drainage master plans and to finance
development of priority transport and drainage infrastructure. The sector will utilize
performance based contracting for transport and drainage infrastructure maintenance.
220. Finally, the sector will progressively pursue capacity enhancement in development and
management of infrastructure, vehicle plant and equipment assets. This will involve human
resource and institutional capacity development and improvement through recruitment of
technical staff, training and skills development, procurement of tools, plant and equipment,
adoption of appropriate technologies and tools. Outsourcing of services to private sector to
enhance efficiency and effectiveness will be a salient feature of the sector’s future outlook.
221. To enhance the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Kshs.5, 772,919, 325. The recurrent expenditure will take kshs.1,
472,919,325 (25.5% of the sectorl budget) and the development expenditure will take Kshs.4,
300,000,000(74.5% of total sector budget).
4.6.2 Health Services
222. For the financial year 2016/17, the health sector will focus in the implementation of the
three key programmes .part of the budget will be allocated to general administration, planning
and support services. This will include monitoring and evaluation services and will aim at
improving service delivery at the same time providing supportive function to the County health
sector. The programme will also strengthen collaboration with health related sectors. To achieve
this, the main sector priority initiatives will be; upgrading of coronal services through acquiring
of 120 acres of land in Kitengela, purchase and installing of modern cremator and construction of
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a funeral parlor; and upgrading of medical stores through purchasing of pickup truck and
installation of power generators.
223. In addition, the sector will work towards preventive and promotive health services to reduce
the burden of violence and injuries and exposure to health risk factors. The sector will also
endeavor on reversing the rising burden of non-communicable as well as eliminating
communicable conditions.
224. Much allocation will also be committed to curative care geared to enhance the provision of
essential emergency and medical rehabilitative services as well as essential health care medical
services. For curative care, the resources will be directed to the following projects; Upgrading of
Mama Lucy Kibaki Hospital- the sector intends to construct a general maternal ward and
construct a perimeter wall to enhance adequate service delivery and increased security in the
hospital; Upgrading of PMH & School of nursing.-A new complex at PMH will be constructed;
Upgrading of Mutuini hospital- A new complex will be constructed; Purchase and Installation of
“LUVIVA” Cancer screening machine @ 3.5 M each at PMH, MLKH, and Mutuini hospitals for
the Provision of specialized preventive diagnostic interventions; Rehabilitation of Jerusalem
clinic through painting, replacement of roof, replacement of broken down door locks & window
pane, construction of perimeter wall, guard house and main gate; Rehabilitation of Embakasi
health centre through installation of sewer line; Rehabilitation of Jericho health centre through
refurbishments and installation of dental chair; Rehabilitation of Umoja health centre through
construction Perimeter wall, purchase of water tank (10,000 ltrs) and construction TB
Laboratory; Construction of a new complex at Kasarani through construction of a 1 storey
building (OPD, MCH, Maternity & Administration) and perimeter wall with gate and guard
house); Upgrading of Shauri Moyo Clinic through Perimeter wall, guard house and main gate
and finally the rehabilitation of Hono Crescent clinic through construction of Perimeter wall,
guard house and main gate, repair of roof, Painting and replacement of broken down door locks
225. To achieve the sector priorities for FY 2016/17, the sector will be allocated a total budget of
ksh.6, 583,267,764. The allocation for recurrent expenditure will be kshs.5,483,267,764 (82.3%
of sector budget) and that for development expenditure will be kshs.1,100,000,000 (16.7 % of
sector allocation).
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4.6.3 Trade, Commerce & Industry, Tourism, Cooperative Societies
226. The strategic objective of the Sector is to promote trade and investment through; managing
clean and organized markets, improving the process of licensing, ensuring fair trade practices
and consumer protection, fostering local participation in tourism, ensuring a vibrant co-operative
sector and implementing county betting & liquor-License Acts.
227. To achieve its strategic objectives in FY 2016/17 the sector will seek to promote: trade
development and market services through construction of a flagship retail market at Outer Ring
Road, new trading market facilities, rehabilitation of markets, development of business
incubation centers, provision of loans and capacity building of MSMEs; licensing and fair trade
practices ,and liquor licensing and regulation through promotion of businesses by automation of
licensing services, establishment of weighing centres, verification of weighing and measuring
equipment, calibration of county Legal Metrology Standards and construction of weights and
measures laboratory; tourism and marketing development through procurement of tour buses,
development of diversified tourism products, development of tourism information centers and
installation of tourism signage; and promotion of co-operative development and management
through revival of dormant co-operative societies, capacity building and awareness creation on
co-operative societies, consultancy services to co-operative societies, conducting annual audit
certification, compliance and system audits of co-operative societies and audit investigations.
228. In addition, the sector will regulate and control betting, gaming and lotteries and enforce
national government standards on the regulation of manufacture, advertisement, sale and
consumption of alcoholic drinks.
229. For FY 2016/17, the sector will be allocated a total budget of Kshs.1,363,482,318 for
which the recurrent expenditure will given Kshs.663,482,318 (48.7% of total sector budget)
while as the development expenditure will given Kshs.700,000,000 (51.3 % of sector budget).
4.6.4 Urban Planning, Housing and Lands
230. For the FY 2016/17, the sector will continue with the implementation of NIUPLAN with
the finalization of the Nairobi City County Development Control Guidelines, completion of
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Baseline report on Nairobi Public Spaces and crime victimization survey expected to be
undertaken.
231. The sector will endeavor to Implement the Physical Address System which will entail a
web based application , address and street index, land use maps and street address maps,
quantities of entryway signage and street signage and with a data centre fully equipped.
232. Development of e-DPMS, an online system for submission, evaluation & approval of
development applications, will be pursued in an effort to automate processes in line with
government policy.
233. To enhance the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Ksh.708, 739,938. The recurrent expenditure will take Kshs.410,
739,938 (58% of total sector budget) and the development expenditure will take Kshs.298,
000,000 (42 % of total sector allocation).
4.6.5 Agriculture, Livestock & Fisheries Forestry & Natural Resources
234. The overall goal of the sector is to attain food security for all, employment creation, income
generation and poverty reduction.
235. To achieve its overall goal in FY 2016/17, the sector will seek to promote: urban and peri-
urban agriculture; agro forestry development; agribusiness development and marketing through
development of agribusiness plans and dissemination of market information; conservation and
management of natural resources; crop, livestock and fisheries production through construction
of greenhouses, installation of multi storey gardens, construction of rabbits hatches, fish ponds
and poultry units, installation of milk dispensers, chillers and pasteurizers, construction of
slaughter houses and animal pounds; animal control and welfare; disease control and
surveillance; value addition of livestock, fish and agriculture products; development of cottage
industries; aquaculture development through promotion programme for recreational fisheries,
environmental and gene bank conservation, fish feed formulation technology, post harvest losses
technology, establishment of cold storage facilities, development of fish hatcheries and stocking
of fish ponds; agricultural integrated extension services; promote food processing technologies
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through capacity building and support of aqua/agro-industries; and food safety and quality
assurance.
236. With regard to this, the sector will be allocated a total budget of ksh.363, 979,428 for the
implementation of projects in the FY 2016/17. The recurrent expenditure will take Kshs.313,
979,428 (86% of total budget) and the development expenditure will take Kshs.50, 000, 00 (14
% of total budget).
4.6.6 Education Youth Sports, Gender Affairs & Culture & Social Services, ICT & e-
Government
a) Education, Youth Affairs and Social Services
237. The Sector Comprises of five Sub-Sectors namely; Education and Children, Social Services
and Community Development, Technical/ Vocational Training, Sports, Culture, Youth
Development & Recreation and ICT & E-government.
238. The sector will continue to strive to: provide adequate Educational, Culture, Social and
sporting services through infrastructural development; developed bills and policies on E.C.D.E &
VTC on education; Improve work environment at ECDE centres through infrastructure
development in 40 centres as well as enhance stakeholder’s relationship for partnership in
infrastructure development. Delivery of the highest possible quality of Education to the Nairobi
residence remains to be a key area of priority. This will be achieved through the continuity of the
governor’s examination and award for best performers in KCPE and KCSE to motivate learners
and teachers in the County, implementation of the governor’s and MCA’s bursary scheme as
well as enhancement of teaching/learning material for ECDE and undertaking regular 211 No. of
quality assurance and a standards assessment in E.C.D.E and training of members of school
management board.
239. Vocational training enhancement in the county remains a key priority for the sector. In
order to achieve this, the sector will ensure: prudent management of the sectors through
nomination of board of Governors (BOG) in all vocational training centers as well as registration
of all Vocational training centers with TVETA and set up of one centre of excellence.
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Develop a policy frameworks on: Vocational Education and Training; Governance and
Management of VTCs; Capitation of tuition; human resource development and training,
infrastructure refurbishment and development policy, tools and equipment policy as well as
come up with a five year strategic plan will be ensured.
240. To increase enrolment, the sector will embark on improvement of infrastructure at the
VCTs; continue equipping the centers with relevant tools and integrate ICT in teaching and
learning at the centers. In order for the centers to be self-sustainable and be able to complement
on resource allocation from the County Government, the sector will identify and set up income
generating activities (production units) at the centers and improve on public private partnership.
241. On social services, promotion of Community Social Welfare in the County; offering
guidance and counseling to all rescued children/ youths & provision of rehabilitation services
and equipping the youths with relevant skills, knowledge and enhancing their capacity to engage
in meaningful activities will be key areas of focus. Improving lives of children living in difficult
circumstances through the completion of the Ruai street children centre in collaboration with
other partners will also be fast tracked.
242. The sector will also strive to promote reading culture amongst the residents of Nairobi
through automation of library and information services, dissemination of Library and
Information services and partnering with other stakeholders like; Kenya National Library
Service, Nation Newspaper, Kenya National Archives, National Museum of Kenya to mention
but a few for book donations.
243. Promotion of sports through engagement of communities in sports, theatre and cultural
activities to nurture talents will remain a top priority for the sector. The sector will endeavor to
turn City Stadium into a world Class stadium. The sector shall also undertake: Entrepreneurship
and mentorship trainings to enhance the employability of the youths at the established one stop
centres; organizing environmental sustainability and sanitation programs and caring out
sensitization on gender mainstreaming; Organize empowerment programmes for Youths,
Women and PLWD to be able to access 30% value of all Procurement at the County.
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244. To enhance the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Kshs.2, 099,847,037. The recurrent expenditure will take Kshs.1,
699,847,037 (81% of total budget) and the development expenditure will take Kshs.400, 000,000
(19% of total budget).
4.6.7 ICT, E-GOVERNMENT & PUBLIC COMMUNICATION
245. In the FY 2016/2017, the Information, Communication and E-Government the sub-sector
will seek to automate County Services in the following areas; Electronic Document Management
System (Digitization of County Records), Electronic Solid Waste Management System at
Dandora Dumpsite, Hospital Management Information System and Integrated Library
Management System. The Sub-sector will also develop County ICT Policy and Regulation
Services, undertake County re-branding initiatives, automate County Press Unit and also
securing County ICT applications and infrastructure.
246. The Sub-sector will undertake development of ICT infrastructure, at both County offices
and sub-counties that will include: Building of Data Center, Disaster Recovery Center,
Replacement of County offices and sub-counties ageing and limited ICT infrastructure with new
IT modern infrastructure includes LAN/MAN.
247. For the implementation of the sector priorities for FY 2016/17, the sector will be allocated a
total budget of Kshs.305, 222,036. The recurrent expenditure will take kshs.155, 222,036 (50.9%
of total budget) and the development expenditure will take Kshs.150, 000,000 (49.1 % of total
budget).
4.6.8 Finance & Economic Planning
248. The goals of the sector are to: promote prudent resource management; promote evidence
based planning and budgeting; formulate and implement policy guidelines for economic growth
and development; promote resource mobilization; co-ordinate implementation of development
policies and programmes; and monitor and evaluate development programmes and activities.
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249. For the sector to achieve its goals in FY 2016/17, it will seek to adhere to public financial
management principles. The sector will further seeks to improve public finance management in
the county through efficient and effective budget formulation and control, devolve financial
services, implementation and installation of Integrated Financial Management Systems (IFMIS),
appropriate asset management, enhanced revenue collection through automation of revenue
collection processes; update of asset register and implementation of asset management system;
conduct Medium Term Expenditure Framework (MTEF) consultative forums ; reduce debt levels
to sustainable level; increase capital financing for capital projects through Public Private
Partnership (PPP); conducting revaluation of assets and promote assets management; strengthen
budget monitoring; and renovation/refurbishment of offices.
250. In addition, the sector will seek to improve economic policy formulation and management
through linking budgeting and planning; ensuring availability of county statistics by developing
County Statistical Data Management System; tracking implementation of development projects
and programmes through regular monitoring and evaluation and enhancing of monitoring and
evaluation system ; improving economic planning coordination through reviewing of County
Integrated Development Plan (CIDP) and preparation of Annual Development Plan (ADP) ;
ensure availability of county statistics and improve research and development in the county.
251. The sector will be allocated, a total budget of Kshs.3, 085,500,009 for FY 2016/17. The
recurrent expenditure will take Kshs.3, 035,500,009 (96.2 % of total budget) while the
development expenditure will take Kshs.120, 000,000 (3.8 % of total budget).
4.6.9 Environment, Energy, Water & Sanitation
252. Due to the huge amount of waste generated in the county, management of solid waste
remains a priority area in the next financial year. To increase efficiency in the process and ensure
a clean city, the sector will procure contractors for waste transportation, improve accessibility
and drainage in Dandora dumpsite, procure; 10 additional waste trucks, a back hoe, an excavator,
and a bull dozer. Awareness creation in environment matters will also be pursued towards this
end.
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253. To curb pollution, Air quality machinery will be procured and surveillance will be enhanced
to reduce both water and noise pollution. The sector will work closely with other stakeholders to
achieve this end. Environmental aesthetics will continually be improved with routine
management of parks, planting of tree seedlings and establishment of new gardens.
254. The water subsector will enhance the regeneration of Nairobi rivers, with emphasis on
rehabilitation of the Riparian reserve through reforestation, recovery and protection, removal of
solid waste, blocking of illegal discharge into the rivers and development of the Riparian zone
policy. Provision of clean safe water to the Nairobians has always been and will continue to be a
key priority area for the sector. Collection and analysis of water samples will be an ongoing
undertaking to ensure safety, whilst at least 10 km of water pipeline will be installed to boost
access. Inventory establishment and Audit of boreholes will be a new undertaking to ensure
safety and sustainability of the underground water supply.
255. With regard to the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Kshs.2, 415,749,242. The recurrent expenditure will take Kshs.1,
815,749,242 (75.2% of total budget) and the development expenditure will take Kshs.600,
000,000 (24.8 % of total budget).
4.6.10 Public Service Management & Reforms
256. For performance management and improved service delivery, the sector will conduct RRI
waves, introduce County services in more Huduma Centres, develop a functional public
participation framework, and conduct service delivery surveys and a weekly gap identification
survey. Performance Contracting will also be administered for a well-targeted and results
oriented public service.
257. Transformation of the public service will be a priority area that focuses on change of staff
culture and attitudes, coupled with continuous skill development through intensive and up to date
training. Skill growth will also be done through the internship/attachment program. The size and
competence of the public will also be put in check by the CPSB with necessary interventions to
ensure a sustainable wage bill.
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258. To enhance the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Kshs.1, 374,210,784. The recurrent expenditure will take Kshs.1,
344,210,784 (98 % of total budget) and the development expenditure will take kshs.30, 000,000
(2 % of total budget).
4.6.11 Governor’s Office
259. The administration department will seek to: establish a well-organized archive & record
centre and review of the classification schemes for all the sectors, upgrade of registry with bulk
filling cabinets, Train 50 staff on records management and digitize 12,000 current personal files
for county staff.
260. The Sub-County administration will in the FY 2016/2017, continue to provide secure and
conducive working environment to the sub-county and ward administrators through construction
of office blocks. To enhance service delivery, the sector will provide tools & equipment’s to sub
counties and wards offices. The sector will also strive to ensure timely service delivery at ward
level through procurement of vehicles for the ward administrators.
261. Security, Compliance and disaster management sector has four major programmes to
undertake, mainly; Policing services, security, enforcement, fire and disaster management.
262. Under Policing and Security, the sector seeks to: undertake training of staff; improve
security within county premises through purchase and installation of CCTV and construction of a
perimeter wall for the Dagoretti training school. The sector will enhance enforcement of County
By-laws through purchase of motor vehicles, motor bikes and a bus.
263. In reduction of economic crimes to improve revenue collection and enhance customer’s
satisfaction, the sector will: enhanced investigation capacity through use of modern investigation
tools/kits, continue implementing use of Informants through research funds and enhance
successful prosecution of offenders through improved investigation.
264. On fire and disaster management, the sector seeks to: improve efficiency in fire-fighting,
operations and timely response & refilling of fire engines, through sinking of boreholes and
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erection of fire hydrant, establishment of additional fire stations and purchase of fire engines and
all terrain fire-fighting vehicles.
265. The legal department will: undertake capacity development for the staff and installation of
software for M.I.S to improve efficiency; provide conducive working environment through
rehabilitation of building and construction of courts and enhance service delivery trough
purchase of motor vehicles
266. The audit department in recognition of its key role in the county seeks to: increase
efficiency and effectiveness in carrying out of audit assignment and preparation of timely audit
reports through procurement of audit software. This will be accompanied by training of audit
staff and request for the appointment of at least 3 IT auditors. In order to minimize operational
costs and mitigate on potential risks against all county assets, the department will create
awareness on risk management to all County staff. The department will also seek to improve
their staff morale through promotion of the existing auditors.
267. To enhance the implementation of the sector priorities for FY 2016/17, the sector will be
allocated a total budget of Kshs.5,215,598,084.The recurrent expenditure will take
kshs.4,915,598,084 (94.2% of total budget) and the development expenditure will take
Kshs.300,000,000 (5.8 % of total budget).
4.7 County Public Service Board
268. County Public Service Board will promote best labour practices in recruitment, allocating,
motivating and effectively utilizing human resources for improved public service delivery and
promote public service integrity
269. The County Public Service Board will be allocated a total budget of Kshs.105, 591,026 for
the implementation of their sector priorities and service delivery. The recurrent expenditure will
take Kshs.85, 591,026 (81.1% of total budget) and the development expenditure will take
Kshs.20, 000, 00 (18.9 % of total budget).
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4.8 County Assembly
270. The County Assembly (CA) is an independent arm of County Government that consists of
85 elected Members of County Assembly (MCA’s), 42 nominated MCA’s and the County
Assembly Speaker who is an ex-officio member. The major roles of the CA are; perform the
legislative functions within the County including approval of County laws, policies, budgets and
expenditures, integrated development plans, tariffs, rates and service charges.
271. The CA will play an important role in scrutinizing reports received from the County
Executive, approving County borrowing, ensuring community and stakeholder participation as
well as playing an oversight role of the County Executive. The CA will therefore play an
important role in ensuring that the objects and principles of devolved government as enshrined in
the constitution are achieved. In the implementation of the CIDP the CA will be responsible for
approving the policies that are aimed at developing the County, hence their role is of critical
importance.
272. The assembly’s priority will be to enhance professional development of MCAs for
effective legislation, oversight and representation and also deepen the use of ICT through
investment in Infrastructure and facilities. Continuous Human Resource development of
the Assembly staff will receive considerable attention during the 2016/17 fiscal period.
For FY 2016/17, County Assembly will be allocated a total budget of Kshs.1, 803,811,042. The
recurrent expenditure will take Kshs.1, 653,811,042 (92% of total allocation to the Assembly)
and the development expenditure will take Kshs.150, 000,000 (8 % of total allocation).
4.9 Ward Development Fund
273. Ward development fund is a statutory fund formed under Ward Development Fund Act,
2014. It constitutes 5% of the total county budget and it is aimed at reducing disparities in
resource allocation and development among wards. The fund is managed by ward development
fund secretariat. The projects to be implemented under WDF will be ward based depending on
the priorities of individual wards. The total allocation for WDF kitty for the FY2016/17 will be
1,643,000,000.
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4.10 MTEF PUBLIC PRIORITIES FOR 2016/17
4.10.1 Transport, Infrastructure & Public Works
274. The main challenges identified by the public for this sector were; Encroachment of access
roads, poor status of roads, lack of drainage system , insecurity due to lack of public/street
lighting, lack of bus parks/terminus and accidents caused by lack of bumps.
275. In this regard the public proposed the following projects in order of priority; construction
and maintenance of access roads by putting tarmac or murraming, construction and rehabilitation
of drainage systems, Installation of street /public lighting, provision of walk ways in all the roads
and cycling lanes, of bus terminals and construction of bumps.
4.10.2 Health services
276. Under this sector the following problems were identified; lack of medicine/drugs supplies
and special equipments in the health centers, lack of enough health personnel, lack of
ambulances for emergencies, lack of public health centers in some wards, high outbreak of non-
communicable diseases and malaria due to many mosquitoes. The following were the public
priorities for 2016/17 as a means of intervention for the above problems; Construction of new
public health centers with maternity wards, upgrading and rehabilitating the existing health
centers, Purchase of ambulances, training of community health volunteers and facilitation of the
same, Increase number of doctors and health personnel, equipping health facilities and ensuring
adequate medicine supply and providing fumigation services.
4.10.3 Trade, Commerce & Industry, Tourism, Cooperative Societies
277. The issues for this sector were; limited space for trading, lack of capital for starting business
and high cost of licensing and poor environment for doing business.
278. For intervention for FY 2016/17 the public proposed construction open markets ,modern
kiosks and Jua kali sheds in every ward, rehabilitation of existing markets, to end up the
harassment of traders by official, to reduce cost of licenses, train women and youth on
entrepreneurship and to provide adequate information on co-operatives Sacco.
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4.10.4 Agriculture, Livestock & Fisheries Forestry & Natural Resources
279. The following were the public priorities for 2016/17; sensitize community on urban
agriculture such as incubators (poultry farming) and green houses, capture and terminate stray
dogs to prevent them from biting peoples and funding youths doing farming.
4.10.5 Urban Planning and Lands
280. The challenges identified in most wards were; grabbing of public utilities and Lack of land
ownership documents. Therefore, the public priorities for 2016/17 were identification and
fencing of public land/utilities, repossession of grabbed public land and issuance of title deeds.
4.10.6 Education Youth Sports, Gender Affairs & Culture & Social Services, ICT & e-
Government
281. One of the issues or gaps in the sector was lack of enough ECD classes and staff and
insecurity in these schools. They reported that children of different ages shared same classes. For
intervention they proposed for construction of ECD schools, recruitment of more ECD teachers
and construction of perimeter wall around primary schools, another issue raised was the lack of
social halls, unemployment among youth especially in slums, drug addiction by youth and lack
of playground. In regard to these the public proposed construction of a multipurpose social hall
rehabilitation centers, youth polytechnics ,rescue centers, talent academies, special need
education School for the physical challenged, introduction of a revolving fund for youth and
acquisition of a sports ground to enhance and energize the youth resource and also rehabilitate
existing ones.
4.10.8 Finance & Economic Planning
282. The following were the public priorities for 2016/17; devolution of revenue services to ward
level, automation of county services at the ward and sub-county offices and Set aside at least
30% of county funds for youths, women and PLWDS
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4.10.9 Water, Environment and Natural Resources
283. The public identified the following programs in the sector, water rationing, water cartels,
garbage dumping, poor sewerage systems and poor sanitation. The proposed intervention for FY
2016/17 are; increased water piping, elimination of water cartels by law enforcement,
establishment of garbage holding site, purchase of trucks and dustbins, installation and
rehabilitation of sewer line as well as construction of public toilets in ward markets and other
identified places.
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5.0 STATEMENT OF FISCAL RISKS TO THE OUTLOOK
1. The resource envelope for 2016/17 is based on a draft Budget Policy Statement (BPS)
which is subject to parliamentary approval through the County Allocation of Revenue
Bill 2016. There is likely to be a deviation from the estimates of the draft BPS.
2. Revenue shortfalls continue to hinder effective budget implementation through a
constrained budget supply side. In particular, Rates revenues have continued to be below
expectation over the last two years largely due to high default rates among statutory
bodies and land buying companies.
3. Judgmental debts continue to constitute an unpredictable cost element due to unforeseen
litigations against the county arising from historical contingent liabilities and other
omissions.
4. Expenditure on garbage collection and disposal has recorded a significant upsurge that
negatively affects budget implementation.
5. Revenue from Liquor licensing is shrouded in a non-friendly administrative regime that
requires full rebuttal of such revenue to the liquor Board. The implication of this
guideline is that this resource may not be available for utilization on county priorities.
6. Poor project conceptualization, capacity challenges in designs and a sluggish
procurement process continue to negatively affect development budget absorption. This
remains the single most serious threat to achieving planned development targets.
7. Identification, prioritization and implementation of Ward development Fund projects
continue to record dismal outputs.
77
ANNEX I: FISCAL PERFORMANCE FOR HALF YEAR OF 2015/2016
NAIROBI CITY COUNTY FISCAL PERFORMANCE FOR HALF YEAR OF 2015/2016
A REVENUES
Revised Estimates 2014/2015
FY2015/2016
APPROVED BUDGET
Target (july-December
2015)
Actuals (July-
December 2015)
Revised Projections
% Performance on target
% Annual Performance
1 Equitable Share 11,340,191,38212,680,000,
000 6,563,287,524 6,563,287,524
12,996,608,959
100 51.8
2Free Maternal Health Care 375,367,823 151,289,600
140,515,000
443,094,200
93 37.4
3
Compensation For User Fees Forgone 22,642,400 36,577,636
6,752,220
73,155,271
18 29.8
4Leasing of Medical Equipment 99,060,091 0
95,744,680 0.0
5
Road Maintenanace Levy 165,100,152 82,550,076
165,100,152
- 0.0
6
DANIDA-HEALTH SECTOR SUPPORT 24,920,000 27,829,534 13,900,000
27,800,000
- 0.0
7DONOR FUNDED PROJECTS
-
3,368,734,326
8
TOTAL EXTERNAL SOURCES 11,365,111,382
13,370,000,000 6,847,604,836 6,710,554,744
17,170,237,588
98 50.2
9LOCAL SOURCES
10 RATES 2,800,000,000
3,400,000,000
991,666,667
1,016,997,463
3,600,000,000
103 29.9
11 PARKING FEES 2,800,000,000
3,400,000,000
1,642,300,000
1,016,642,235
2,500,000,000
62 29.9
12
SINGLE BUSINESS PERMITS
2,200,000,000
2,870,000,000
1,129,345,000
584,912,225
2,800,000,000
52 20.4
13BLDNG PERMITS (1.25 of const. cost)
1,300,000,000
1,850,000,000
951,370,000
648,293,803
1,600,000,000
68 35.0
14BILLBOADS & ADVERTS
700,000,000
1,300,000,000
650,000,000
270,220,322
800,000,000
42 20.8
15LIQUOR LICENSES
300,000,000
650,000,000
325,000,000
68,663,690
350,000,000
21 10.6
16 RENTS 250,000,000
374,000,000
187,000,000
149,451,375
300,000,000
80 40.0
78
NAIROBI CITY COUNTY FISCAL PERFORMANCE FOR HALF YEAR OF 2015/2016
A REVENUES
Revised Estimates 2014/2015
FY2015/2016
APPROVED BUDGET
Target (july-December
2015)
Actuals (July-
December 2015)
Revised Projections
% Performance on target
% Annual Performance
17 EASTLANDS 250,000,000
330,000,000
181,500,000
140,741,921
280,000,000
78 42.6
18DECENTRALIZATION-WARDS
200,000,000
237,000,000
118,500,000
106,045,785
238,000,000
89 44.7
19LEASE FEES NWSC
204,000,000
224,000,000
112,000,000
32,936,834
33,000,000
29 14.7
20OTHER MARKETS
170,000,000
187,000,000
119,277,500
61,860,476
120,000,000
52 33.1
21WAKULIMA MARKET
140,000,000
165,000,000
82,500,000
59,024,950
123,000,000
72 35.8
22
FIRE INSPECTION CERT
140,000,000
154,000,000
54,000,000
57,289,998
160,000,000
106 37.2
23
REGUL. OF BLDNG /CHANGE /AMALG/SUB
140,000,000
150,000,000
81,900,000
71,089,700
140,000,000
87 47.4
24CONSTRUCTION SITE BOARD
100,000,000
100,000,000
74,700,000
128,830,294
270,000,000
172 128.8
25OTHER INCOMES
2,529,722,061
2,137,000,000
950,617,500
584,687,896
1,500,000,000
62 27.4
26
SUB-TOTAL (LOCAL SOURCES)
14,223,722,061
17,528,000,000
7,651,676,667
4,997,688,967
14,814,000,000
65 28.5
27 TOTAL 25,588,833,443
30,898,000,000
14,336,676,667
11,708,243,711
31,984,237,588
82 37.9
28 EXPENDITURE
29 RECURRENT
30
COMPENSATION TO EMPLOYEES
13,415,954,009
13,022,831,133
6,511,415,567
6,676,069,932
13,636,522,921 102.5
51.3
31OPERATIONS & MAINTENANCE
4,720,063,844
5,568,043,149
2,784,021,575
1,830,506,736
6,837,043,149 65.8
32.9
32DEBTS RESOLUTION
600,000,000
1,228,390,523
614,195,262
653,507,415
1,228,390,523 106.4
53.2
33TOTAL RECURRENT
18,736,017,853
19,819,264,805
9,909,632,403
9,160,084,083
21,701,956,593 92.4
46.2
79
NAIROBI CITY COUNTY FISCAL PERFORMANCE FOR HALF YEAR OF 2015/2016
A REVENUES
Revised Estimates 2014/2015
FY2015/2016
APPROVED BUDGET
Target (july-December
2015)
Actuals (July-
December 2015)
Revised Projections
% Performance on target
% Annual Performance
34 DEVELOPMENT
35WDF PROJECTS
1,700,000,000
1,700,000,000
850,000,000
69,182,944
1,700,000,000 8.1
4.1
36
EMERGENCY FUND PROJECTS
55,000,000
27,500,000
-
55,000,000 0.0
-
37
DONOR FUNDED PROJECTS-WB
-
-
3,368,734,326
38 EPC PROJECTS -
2,000,000,000
39OTHER PROJECTS
5,152,815,590
9,254,429,684
4,627,214,842
2,218,049,289
3,158,546,669 47.9
24.0
40TOTAL DEVELOPMENT
6,852,815,590
11,009,429,684
5,504,714,842
2,287,232,233
10,282,280,995 41.6
20.8
41TOTAL EXPENDITURES
25,588,833,443
30,828,694,489
15,414,347,245
11,447,316,316
31,984,237,588 74.3
37.1
Notes: 1. Free maternity fees and Compensation for user fees forgone received relates to year 2014/2015,County yet to receive monies for this year.
2.RML funds not yet received ,the sector concerned to liase with the Transport ministry to fullfil the conditions set .3.Increase in salaries due to salary upgrading,,new recruitment of 226 health personnel and deployment of medical interns and overtime costs4.Increase in O& M due to additional funding for garbage (Kshs 800m,Medical Insurance ( Kshs 250m) and Liqour Board (Kshs 219m)
5.EPC Projects- Downpayment for Pumwani hospital,Mutuini and school of mid wifery.
6.Targets on expenditure not based on half of the the total annual approved budget.
80
ANNEX II: RECURRENT AND DEVELOPMENT EXPENDITURE FOR FY 2015/2016
Sector Approved Budget Payments & Commitments % Absorption
Recurrent Development Total Recurrent Development
Total Recurrent
Development
Total
County Public Service Board
79,999,862 20,000,000 99,999,862 12,007,383 0 12,007,383
15 - 12
Governor’s Office
4,488,719,477
379,000,000 4,867,719,477
1,125,899,131
30,257,200 1,156,156,331
25 8 24
ICT,E-Government
& Public Communica
tions
144,000,000
150,000,000 294,000,000
24,834,203 41,803,988 66,638,191
17 28 23
Finance & Economic Planning
2,773,390,523
127,000,000 2,900,390,523
676,102,990
4,433,800 680,536,790
24 3 23
Health 5,038,000,000
1,760,000,000
6,798,000,000
1,186,433,184
413,790,726
1,600,223,910
24 24 24
Physical Planning, Lands & Housing
375,000,000
320,000,000 695,000,000
93,087,311 31,396,685 124,483,996
25 10 18
Public Works &
Infrastructure
1,355,000,000
6,205,000,000
7,560,000,000
279,304,299
512,988,154
792,292,453
21 8 10
Education ,Youth Affairs Social
Services
1,534,000,000
436,000,000 1,970,000,000
345,346,003
38,159,281 383,505,284
23 9 19
Trade, Co-operative ,
Industrialization
278,890,000
700,000,000 978,890,000
97,863,820 221,670,322
319,534,142
35 32 33
Public Service
Management
1,016,923,808
30,000,000 1,046,923,808
173,995,348
0 173,995,348
17 - 17
Agriculture, Livestock &
Fisheries Developmen
t
288,000,001
50,000,000 338,000,001
62,361,333 21,891,398 84,252,731
22 44 25
Water, Energy
Environment Forestry & Natural Resources
893,777,250
688,000,000 1,581,777,250
399,977,267
233,020,000
632,997,267
45 34 40
County Assembly
1,553,563,884
144,429,684 1,697,993,568
389,830,140
51,640,411 441,470,551
25 36 26
Total 19,819,264,805
11,009,429,684
30,828,694,489
4,867,042,413
1,601,051,965
6,468,094,378
25 15 21
81
ANNEX III: REVENUE AND EXPENDITURE PROJECTIONS FOR MTEF PERIOD
2016/2017-2018/2019
NAIROBI CITY COUNTYREVENUE AND EXPENDITURE PROJECTIONS FOR MTEF PERIOD 2016/2017-2018/2019
Revenues 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
BROP 15CFSP 2015
BROP 2015
CFSP 16
BROP 15
CFSP 16
BROP 15
CFSP 16
BROP 15
CFSP 16
External Revenues
Equitable Share 11,340 12,680
12,997
12,997
14,057
14,277
15,463
15,704
15,463
17,274
Free Maternal Health Care 0 375
302
443
413
303
454
304
454
306
Compensation For User Fees Forgone 0 23
73
73
25
73
27
73
27
73
Leasing of Medical Equipment 0 99
96
96
96
96
Road Maintenance Levy 0 165
165
165
182
214
200
214
200
214
Health Sector Support Fund-Danida
25 28
28
28
31
28
34
28
34
28
Donor Funded -World Bank
3,369
3,369
1,056
1,430
67
Sub-Total 11,365 13,370 16,934 17,171 15,76316,42
116,17
816,48
616,17
8 17,991Internal Revenues
Rates 2,800
3,400 3,400
3,600
3,740
5,000
4,114
5,500
4,114
6,050
Parking Fees 2,800
3,400 3,400
2,500
3,740
3,100
4,114
3,410
4,114
3,751
Single Business Permits
2,200
2,870 2,870
2,800
3,080
3,400
3,388
3,740
3,388
4,114
Bldng Permits (1.25 Of Const. Cost)
1,300
1,850 1,850
1,600
2,035
1,700
2,239
1,870
2,239
2,057
Billboards & Adverts 700
1,300 1,300
800
1,430
885
1,573
973
1,573
1,071
Liquor Licenses 300
650 650
350
715
379
786
417
786
458
Rents 250
374 374
300
411
325
453
358
453
394
Eastlands 250
330 363
280
399
304
439
334
439
368
Decentralization-Wards
200
237 237
238
260
262
286
288
286
317
Lease Fees NWSC 204
224 224
33
247
36
272
40
272
44
Other Markets 170
187 187
120
206
123
226
135
226
149
Wakulima Market 140
165 165
123
182
135
200
149
200
164
Fire Inspection Cert 140
154 154
160
169
176
186
194
186
213
Regul. Of Bldng /Change /Amalg/Sub
140
150 150
140
160
148
180
162
180
179
Construction Site 150
82
NAIROBI CITY COUNTYREVENUE AND EXPENDITURE PROJECTIONS FOR MTEF PERIOD 2016/2017-2018/2019
Revenues 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
BROP 15CFSP 2015
BROP 2015
CFSP 16
BROP 15
CFSP 16
BROP 15
CFSP 16
BROP 15
CFSP 16
Board 100 100 270 170 297 190 326 190 359
Other Incomes 2,530
2,137 1,984
1,500
2,260
1,600
2,478
1,760
2,478
1,936
Sub-Total 14,224
17,528
17,458
14,814
19,204
17,870
21,124
19,657
21,124
21,623
Total Revenues 25,589
30,898
34,392
31,985
34,967
34,291
37,302
36,143
37,302
39,614
Expenditures
Recurrent Expenditures
18,736
19,900
20,014
21,701
21,109
23,050
21,987
24,233
21,987
25,475
Wages & Salaries 13,773
13,923 13,022
13,636
14,200
14,340
14,400
15,082
14,400
15,862
Operations & Maintenance
4,363
4,437 5,764
6,837
5,215
7,420
5,724
7,797
5,724
8,191
Debt Resolutions 600
1,540 1,228
1,228
1,694
1,290
1,863
1,354
1,863
1,422
Development Expenditures
6,853
10,928
14,378
10,283
13,858
11,241
15,315
11,910
15,315
14,139
Donor Funded Projects
-
- 3,369
3,369
1,056
1,430
67 0
WDF Projects 1,700
1,700 1,700
1,700
1,700
1,643
1,700
1,803
1,700.00
1,980
EPC Projects 2,000
Other Development Projects
5,153
9,173 9,254
3,159
11,041
8,088
13,548
9,950
13,548
12,059
Emergency Fund Projects
-
55 55
55
61
80
67
90
67 100
TOTAL EXPENDITURE
25,589
30,828
34,392
31,984
34,967
34,291
37,302
36,143
37,302
39,614
SURPLUS/DEFICIT
0
70
(0)
0
0
0
(0)
0
0
0
Percentage of Development 27 35 42 32 40 33 41 33 41 36
83
ANNEX IV: MEDIUM TERM SECTOR CEILINGS FOR FY 2016-2019 IN MILLIONS
NAIROBI CITY COUNTY
2015/2016 2016/2017 Projections % Share of Total
Expenditure
Sector Printed
Estimates CFSP 2017/2018 2018/2019
Estimates 2015/2016
CFSP Ceiling 2016/2017
County Assembly 1,697,993,568 1,803,811,042 1,880,876,076 1,975,244,318 5.5 5.8
Employee cost 752,298,796 812,482,700 877,481,316 947,679,821 2.4 2.6Other recurrent 801,265,088 841,328,342 883,394,760 927,564,497 2.6 2.7
Development 144,429,
684 150,000,0
00 120,000,
000 100,0
00,000 0.5 0.5County Public Service Board
99,999,862
105,591,026
109,870,577
114,364,107 0.3 0.3
Employee cost 30,299,
862 33,406,
026 35,076,327 36,830,144 0.1 0.1Other recurrent 49,700,000 52,185,000 54,794,250 57,533,963 0.2 0.2
Development 20,000,
000 20,000,
000 20,000,
000 20,0
00,000 0.1 0.1Governor’s Office 4,812,719,477 5,215,598,084 5,561,377,988 5,869,446,888 15.6 16.7
Employee cost 3,855,012,319 4,250,205,568 4,462,715,846 4,685,851,639 12.5 13.6Other recurrent 633,707,158 665,392,516 698,662,142 733,595,249 2.1 2.1
Development 324,000,
000 300,000,0
00 400,000,
000 450,0
00,000 1.1 1.0ICT, E Govt & Public Communications
294,000,000
305,222,036
342,983,138
371,132,295 1.0 1.0
Employee cost 76,589,
596 84,441,
112 88,663,
168 93,0
96,326 0.2 0.3Other recurrent
67,410,404
70,780,924
74,319,970
78,035,969 0.2 0.2
Development 150,000,
000 150,000,0
00 180,000,
000 200,0
00,000 0.5 0.5Finance and Economic
2,900,390,523
3,155,500,009
3,297,275,009
3,446,638,760
9.4 10.1
84
NAIROBI CITY COUNTY
2015/2016 2016/2017 Projections % Share of Total
Expenditure
Sector Printed
Estimates CFSP 2017/2018 2018/2019
Estimates 2015/2016
CFSP Ceiling 2016/2017
Planning
Employee cost 1,012,832,7
75 1,116,662,4
50 1,172,495,5
72 1,231,12
0,351 3.3 3.6Other recurrent
1,760,557,748
1,918,837,559
2,014,779,437
2,115,518,409 5.7 6.1
Development 127,000,
000 120,000,0
00 110,000,
000 100,0
00,000 0.4 0.4
Health Sector 6,798,443,164 6,583,267,764 7,057,431,152 7,645,302,710 22.1 21.1
Employee cost 3,673,343,301 4,049,912,908 4,252,408,553 4,465,028,981 11.9 13.0Other recurrent 1,365,099,863 1,433,354,856 1,505,022,599 1,580,273,729 4.4 4.6
Development 1,760,000,0
00 1,100,000,0
00 1,300,000,0
00 1,600,00
0,000 5.7 3.5Physical Planning, Housing and Lands
695,000,000
708,739,938
781,276,934
852,840,781 2.3 2.3
Employee cost 323,530,
759 356,697,2
35 374,532,096 393,258,701 1.0 1.1Other recurrent
51,469,241
54,042,703
56,744,838
59,582,080 0.2 0.2
Development 320,000,
000 298,000,0
00 350,000,
000 400,0
00,000 1.0 1.0Public Works and Infrastructure 5,859,556,836 5,772,919,325 6,846,565,291 8,238,893,555 19.0 18.5
Employee cost 964,209,883 1,063,055,024 1,116,207,775 1,172,018,164 3.1 3.4Other recurrent 390,346,953 409,864,301 430,357,516 451,875,391 1.3 1.3
Development 4,505,000,000 4,300,000,000 5,300,000,000 6,615,000,000 14.6 13.8Education Youth Affairs, Sports, Culture & Social Services 1,970,000,000 2,099,847,037 2,294,839,388 2,474,081,358 6.4 6.7
Employee cost 1,184,525,218 1,305,955,795 1,371,253,584 1,439,816,264 3.8 4.2Other recurrent 349,474,782 393,891,242 413,585,804 434,265,094 1.1 1.3
Development 436,000,
000 400,000,0
00 510,000,
000 600,0
00,000 1.4 1.3Trade and Enterprise Development
978,890,000
1,363,482,318
1,563,656,434
1,931,489,256 3.2 4.4
85
NAIROBI CITY COUNTY
2015/2016 2016/2017 Projections % Share of Total
Expenditure
Sector Printed
Estimates CFSP 2017/2018 2018/2019
Estimates 2015/2016
CFSP Ceiling 2016/2017
Employee cost 179,910,
000 198,353,3
18 208,270,
984 218,6
84,533 0.6 0.6Other recurrent
98,980,000
465,129,000
488,385,450
512,804,723 0.3 1.5
Development 700,000,
000 700,000,0
00 867,000,
000 1,200,00
0,000 2.3 2.2Public Service Management 1,046,923,808 1,374,210,784 1,451,421,323 1,531,992,390 3.4 4.4
Employee cost 265,467,
308 292,681,4
59 307,315,532 322,681,309 0.9 0.9Other recurrent
751,456,500
1,051,529,325
1,104,105,791
1,159,311,081 2.4 3.4
Development 30,000,
000 30,000,
000 40,000,
000 50,0
00,000 0.1 0.1Agriculture and Livestock Development Sector
338,000,001
363,979,428
389,678,399
426,162,319 1.1 1.2
Employee cost 220,501,
144 243,105,6
28 255,260,
909 268,0
23,955 0.7 0.8Other recurrent
67,498,857
70,873,800
74,417,490
78,138,364 0.2 0.2
Development 50,000,
000 50,000,
000 60,000,
000 80,0
00,000 0.2 0.2Water, Energy, Environment and Forestry Sector
1,581,777,250
2,415,749,242
2,713,086,703
2,812,191,039 5.1 7.7
Employee cost 484,310,
172 533,958,8
10 560,656,750 588,689,588 1.6 1.7Other recurrent
409,467,078
1,281,790,432
1,352,429,953
1,423,501,451 1.3 4.1
Development 688,000,
000 600,000,0
00 800,000,
000 800,0
00,000 2.2 1.9
WDF Projects 1,700,000,0
00 1,513,000,0
00 1,696,000,0
00 1,824,00
0,000 5.5 4.8World Bank Projects
1,429,900,000
67,000,000 0.0 4.6
Emergency Transfer Fund
55,000,000
80,000,000
90,000,000
100,000,000 0.2 0.3
Total 30,828,694,489 34,290,818,033 36,143,338,412 39,613,779,776 100 110
86
ANNEX V: RECURRENT EXPENDITURE ANALYSIS
NAIROBI CITY COUNTYRECCURENT EXPENDITURE
Sector
Approved
2015/2016
Analysis of Recurrent Expenditures
Total Recurrent
Fy 2016/
17
Total Recurrent
Fy 2017/
18
Total Recurrent Fy
2018/19
Employee Costs
Utilities -Electricity
KCB LOAN
Other Debts
Litigations
Insurance
Fuel/vehicle maintenance
Garbage
Bursary
Other O & M
County Public Service Board
79,999,862
33,406,026
-
-
52,185,000
85,591,026
89,870,577
94,364,106
Governor’s Office
4,488,719,477
4,250,205,568
300,000,000
150,000,000
615,392,516
5,315,598,084
5,581,377,988
5,860,446,887
ICT,E-Government & Public Communications
144,000,000
84,441,112
70,780,924
155,222,036
162,983,138
171,132,295
Finance & Economic Planning
2,773,390,523
1,116,662,450
624,000,000
666,000,000
125,000,000
503,837,559
3,035,500,009
3,187,275,009
3,346,638,760
Health
5,038,000,000
4,049,912,908
1,033,354,856
5,083,267,764
5,368,431,152
5,666,852,710
Physical Planning, Lands & Housing
375,000,000
356,697,235
54,042,703
410,739,938
431,276,934
452,840,781
Public Works & Infrastructure
1,355,000,000
1,063,055,024
280,000,000
129,864,301
1,472,919,325
1,546,565,291
1,623,893,555
87
Education ,Youth Affairs Social Services
1,534,000,000
1,305,955,795
200,000,000
193,891,242
1,699,847,037
1,784,839,388
1,874,081,358
Trade, Co-operative, Industrialization
278,890,000
198,353,318
465,129,000
663,482,318
696,656,434
731,489,255
Public Service Management
1,016,923,808
292,681,459
700,000,000
351,529,325
1,344,210,784
1,411,421,323
1,481,992,390
Agriculture, Livestock & Fisheries Development
288,000,001
243,105,628
70,873,800
313,979,428
329,678,399
346,162,319
Water, Energy, Environment Forestry & Natural Resources
1,553,563,884
533,958,810
1,000,000,000
281,790,432
1,815,749,242
1,906,536,704
2,001,863,539
County Assembly
893,777,250
812,482,700
841,328,342
1,653,811,042
1,736,501,594
1,823,326,674
TOTAL
19,819,264,805
14,340,918,031
280,000,000
624,000,000
666,000,000
300,000,000
825,000,000
150,000,000
1,000,000,000
200,000,000
4,664,000,000
23,049,918,031
24,233,413,932
25,475,084,629
88
ANNEX VI: DEVELOPMENT PROJECTIONS FOR 2016/2017-2018/2019
NAIROBI CITY COUNTY
DEVELOPMENT PROJECTIONS FOR 2016/2017-2018/2019
Sector Approved 2015/2016
PROJECTIONS
2016/2017 2017/2018 2018/2019
County Public Service Board 20,000,000
20,000,000 20,000,000
20,000,000
Governor’s Office 324,000,000 300,000,000 400,000,000 450,000,000
ICT,E-Government & Public Communications 150,000,000
150,000,000 180,000,000
200,000,000
Finance & Economic Planning 127,000,000
120,000,000 110,000,000
100,000,000
Health 1,760,000,000 1,100,000,000 1,300,000,000
1,600,000,000
Physical Planning, Lands & Housing 320,000,000
298,000,000 350,000,000
400,000,000
Public Works & Infrastructure 4,505,000,000
4,170,000,000 5,193,000,000
6,459,000,000
Education ,Youth Affairs Social Services 436,000,000
400,000,000 510,000,000
600,000,000
Trade, Co-operative, Industrialization 700,000,000
700,000,000 867,000,000
1,200,000,000
Public Service Management 30,000,000
30,000,000 40,000,000
50,000,000
Agriculture, Livestock & Fisheries Development 50,000,000
50,000,000 60,000,000
80,000,000
Water, Energy Environment Forestry & Natural Resources 688,000,000
600,000,000 800,000,000
800,000,000
County Assembly 144,429,684 150,000,000 120,000,000
100,000,000
WDF PROJECTS 1,700,000,000 1,643,000,000
1,803,000,000
1,980,000,000
EMERGENCY FUND 55,000,000 80,000,000
90,000,000
100,000,000
DONOR FUNDED PROJECTS
-
1,430,000,000
67,000,000
-
Total 11,009,429,684 11,241,000,000
11,910,000,000
14,139,000,000
89
ANNEX VII: SUMMARY NAIROBI CITY COUNTY LIABILITIES AS AT 31ST
DECEMBER 2015
SUMMARY NAIROBI CITY COUNTY LIABILITIES AS AT 31ST DECEMBER 2015
ITEM DESCRIPTION Notes 30th June 2014 30th June 2015 30th December
2015
Statutory BodiesKRA (PAYE) 1,423,492,282 2,543,360,607 2,532,462,745
NSSF 1 672,853,472 602,394,826 564,847,839 LAPTRUST 2,844,168,193 5,070,572,475 6,305,084,484 LAPFUND 3,055,165,951 4,755,553,009 5,675,839,053 Sub-total Statutory creditors 7,995,679,898 12,971,880,916 15,078,234,121
Other CreditorsSuppliers of goods & services 2014/15
948,777,204 1,696,011,717
1,762,586,295
Litigations 1,196,522,055 445,205,205 506,851,229
Kenya Power 505,626,867 341,924,514
343,581,385
IPF Loans & Overdrafts 1,775,438,080 706,711,231
1,266,594,099
KCB LOAN 2,927,244,106 2,925,153,543 3,031,414,761
Sub-total Other creditors 7,353,608,312 6,115,006,211 6,911,027,769
TOTAL OUTSTANDING (Excluding Contingent Liabilities) 15,349,288,210 19,086,887,127
21,989,261,890
Contingent LiabilitiesLAPTRUST(acturial & unagreed Interest) 4 2,624,372,573 2,624,372,573
2,624,372,573
LAPFUND(different) 5 1,710,128,510 1,432,507,951 1,432,50
7,951
Government guaranteed loans 7 3,815,640,733 3,815,640,733 3,815,64
0,733
Onlent Water (Foreign Loans) 7 15,328,285,074 15,328,285,074 15,328,285
,074
90
Sub-total (Contingent Liabilities) 23,478,426,890 23,200,806,331
23,200,806,331
GRAND TOTAL 38,827,715,100 42,287,693,458 45,190,068,221
NOTES
1. Of the amounts shown as payable to NSSF, an amount of Ksh.650,124,606 represent penalties charged against CCN on historical amounts that were not remitted to the retirement benefit scheme. Arrangements to payoff these amounts have been entered into between parties.2. Of the amount shown under payroll costs the amount of Ksh.2,404,767,705 represent gross unpaid arrears that accrued pursuant to the negotiated Collective Bargaining Agreement (CBA) that came into force in 2013.
3. Creditors in respect of suppliers of goods and services are being verified by the pending bills committee. The value is a awaiting the final report.
4. The amount shown under contingent liabilities payable to Laptrust represent CCN's share of an actuarially determined deficit for the fund. An agreement signed by the parties and endorsed by the PS MLoG says the deficit plus any historical debt will be paid through property debt swap.
5. The amount shown is a penalty accrued, which is subject to negotiation.6. The amount represent a provision for costs likely to be incurred in case the lodged court cases are ruled against CCN. It has been estimated at the value of all litigation cases under court process.(50% of the Current outstanding legal claims of Kshs 1,196,522,056)
7. The loan balances shown under contingent liabilities (ie Government guaranteed loans, LGLA and on lent Water) represent loans advanced to CCN for capital projects relating to water infrastructure. The Council no longer owns the assets which are currently being used by the Nairobi City Water and Sewerage Company on lease from Athi Water Services Board. The loan balances, whose contractual records are not available in CCN, have been obtained/estimated from the scanty information available within CCN. A task force based in Treasury has been verifying the said advances with a view to give recommendations on the way forward.
PREPARED BY …………………….……………………………………………………….
APPROVED BY ……………………………………………………………………………..
91
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