1. COMMISSION OF REVENUE ALLOCATION MEETING 25 TH JULY 2016

2. EXECUTIVE SUMMARY: The objective of the CRA visit is to hold discussions on the following key matters:  The basis for revenue sharing amongst Counties  Financial Management in County Governments  County Budget ceilings  Revenue enhancement in Counties  CIDP implementation and review  Feedback from Counties on the implementation of the CRA mandate

3. COUNTY GOVERNMENT OF KIRINYAGA POSITION: REVENUE SHARING FORMULA PARAMETERS AND RATIONALE SUPPORTING THE COUNTY’S COUNTER ARGUMENT The population and Land area basis of revenue sharing formula should be have more weight on the population density rather than considering the two parameter independently. Geographical, cultural and social economic factors should be taken into consideration as should the gross land mass that is viable for economic use. Low land area and low population impacts negatively on Kirinyaga’s revenue share despite having a culture of handworking especially in contributing to the Country’s food basket

4. Development and County GDP Factor  The contribution of the County to the National GDP should be taken into consideration as a factor to increase its share of revenue.  The rationale is simple, a County that produces more should be rewarded

6. FINANCIAL MANAGEMENT IN THE COUNTY (Below the Table are the Pillars supporting the growth of :

7. CONT’D………….FINANCIAL MANAGEMENT IN THE COUNTY Enactment of revenue based County legislation An improved formal relationship with the judiciary and the Kenya Revenue Authority (KRA). We are about to appoint our own County based prosecutors that will prosecute County Offences and we will be sharing data of rates defaulters with the KRA. Capacity Building – Greater focus on training our staff ad citizens on revenue collection and management practices

8. FEEDBACK ON CRA IMPLEMENTATION MANDATE: Whereas the CRA has proven to be the Counties greatest defender in devolution matters, its key weakness lies in its policy and regulatory framework  Article 216 mandates the Commission to make recommendations on the equitable basis for revenue sharing among county governments.  Article 217 (1) mandates the Senate to determine once every five years the basis for allocating among counties the share of national revenue that is annually allocated to county government.  The Sixth Schedule Section 16 provides for preparation of the first and second basis of sharing revenue be made at three year intervals. An amendment of the PFMA 2012 is required to entrench the role of the CRA when it makes its recommendations on revenue sharing. At present, all CRA efforts are diluted by the legislative arm of the Government and are largely based on the political enmity and competition. At all times, and as much as possible, revenue sharing between the National and County Government’s should be data based and follow a scientific approach. If all Counties economic potential is harnessed, the knock on effect on the National economy will be substantial and the Country will be able to produce more, employ more citizens and improve the overall quality of life for all its citizens.

9. Implementation of County Integrated Development Plan Financial YearApproved budgetAnnual development expenditure Absorption rate 2013/14 Kshs 907,787,621 Kshs 308,825,63747% 2014/15 Kshs 1,566,696,338 Kshs 894,428,63557% 2015/16 Kshs 2,255,236,129 Kshs 1,063,670,44747%

10. DEVELOPMENT HIGHLIGHTS OVER THE THREE FY During the period of CIDP implementation, the County Government has gradually increased the budget allocation for health department as follows: This allocation goes towards covering the expenses of the entire department including recurrent expenditure and Personnel Emoluments. Below is a highlight of some of the Milestones as achieved over CIDP implementation period……… FY 2013/14FY 2014/15FY 2015/16 Kshs 688 Million Kshs 1.18 billion 1.45 billion HEALTH DEPARTMENT Cadre20132016 Medical Consultants 79 Medical Officers 1934 Nurses407478 Medical Lab Technologists 46117 Clinical Officers52119 Other Cadres305559 TOTAL8361312

11. Cont’d …… Kirinyaga Health output and Outcome indicators Kirinyaga Health Infrastructure (PUBLIC) Facility Type2013April 2016 Public Hospitals 34 Health Centers 1222 Dispensaries 3733 (10 dispensaries upgraded to Health Centers and 7 new dispensaries opened) Community Units 6265 Indicator201320142015 Doctor: Population Ratio 1:21,6521:18,4521:13,518 Nurse: Population Ration 1:13831:12461:1226 Immunizing Centers 566966 Fully Immunized Children 87%85.2%88.5% ANC attendance 92.4/4896.4/60- Skilled Delivery 73 %92.5 % Hospital Beds/100,00 0 757982

12. ROADS, TRANSPORT AND PUBLIC WORKS The Department of Transport and Infrastructure has spent Kshs 594,586,177 since inception of the county geared towards improvement of the Road network within the County. In the County’s Agenda to continually improve the County Access Roads the County Government has set aside Kshs 524,647,808 in the Current FY 2016/17. 2013-142014-152015-162016/17 208.2 million 231.6 million 294.7 million 524.6 million From Utilization of these Resources, the department had Gravelled/ Murramed a cumulative 107.2km by Dec. 2015, Spearheaded construction of over 20 footbridges, Installed over 13 Box Culvert Bridges.

13. Environment, water and natural resources In the Constitution of Kenya, 2010, fourth Schedule the devolved function in the department involves Implementation of specific national government policies on natural resources and environmental conservation The County has achieved over 80% connection of water to households owing to the significant budgetary allocation and expenditure towards the same over the period of CIDP allocation. The development expenditures to the department are as follows 2013-142014-152015-16 144.7 M326.7 M311.6 M Summary of Achievements The Department has constructed 15 water tanks for 15 water projects. Supplied water pipes to over 60 water projects, Constructed over 20 water intakes and Drilled boreholes to ensure sustained supply of Clean and Safe water to the County’s semi arid region.

14. Education The County department of education has continually worked towards ensuring a conducive learning environment for the ECDE pupils while at the same time ensuring that there is adequate value addition amongst the youth by reviving/ introducing courses trained in the polytechnics. The County Department has also Cushioned Financially disadvantaged Students through Bursaries as listed Financial YearTotal Allocation ‘Million’Beneficiaries Students ‘no.’ Secondary SchoolTertiary InstitutionUniversity Students 2013/14 5011,0379581,342 2014/15 6318,3461,8642,237 2015/16 76.7 2016/17 90

15. Trade, Tourism, Cooperative, Industrialization & Enterprise Development The county department of trade is focused towards creating a favorable atmosphere for residents to do business Below is a highlight of the development projects undertaken by the department over the medium term. 2013-142014-152015-16 0 M11.7 M60.5 M

16. Cont’d … Trade