The 2014 National Budget Policy Statement set out five broad strategies which aimed attransforming the Kenyan economy. In the 2015 Budget Policy Statement the nation aims atenhancing transformation of the economy by ensuring successful implementation of the fivepillar strategy. In the 2015 Kwale County Fiscal Strategy Paper, we set out policy priorities andprograms which will spearhead the transformation of the county economy while at the same timecomplement the nations efforts in realizing the Kenya's Vision 2030.The fiscal policy framework which this paper adopts and proposes for the preparation of the2015/16-2017/18 MTEF Budget continues to be one that will ensure there is efficiency andeffectiveness in public service delivery. The county government's effort will be to link policies,planning and budgeting, implement the expenditure reforms and ensuring prudent financialmanagement. In order to create fiscal space to finance our core priority areas in education,health, physical infrastructure, water services and agricultural productivity, the growth of nonpriority expenditures will be curtailed. In the preparation of the 2015/16-2017/18 MTEF budget,the main guiding factors will be:-i. Preparing a balanced budget that is affordable and sustainable to ensure the countygovernment spends within its income and avoiding a finance gap.ii. Careful evaluation and costing of all existing policies, programs and projects to avoidcost variations and wastage.iii. Building a link between our recurrent and development budget and maintenance of therecurrent to development ratio of 40 to 60 percent in the medium termiv. Developing a performance driven and results based budgeting to improve the linkbetween expenditure and results.In keeping in line with the national broad strategic objectives as outlined in the Kenya's 2015Budget Policy statement (BPS), this 2015 Kwale County Fiscal Strategy Paper (CFSP) willadopt the five pillar strategy. The five pillar strategy include:-i. Creating a conducive business environment in order to encourage innovation, investment,growth and expansion of economic and employment opportunities;Kwale County Fiscal Strategy Paper-20152 Kwale County Treasuryii. Investing in agricultural transformation and food security to expand food supply, reducefood prices, support expansion of agro- processing industries and spur export growth;iii. Investment in first class transport and logistics hub and scaling investments in other keyinfrastructure including roads, energy and water to reduce cost of doing business andimprove competitiveness;iv. Investing in quality and accessible health care services and quality education as well associal safety net to reduce the burden on households and complement and sustain ourlong term growth and development through enhanced productivity, andv. Further entrenching devolution for better service delivery and enhanced equitabledevelopment.The priority strategies set out in this 2015 Kwale CFSP will link with the nine thematic areas andstrategies set out in the Kwale CIDP, MTP II and the objectives of the Kenya's Vision 2030. Inexecuting our priority programs stipulated in the nine thematic areas set out in the CIDP for thelast two years of devolution, much progress has been achieved. Agricultural output has improvedfollowing agricultural mechanization, provision of farm inputs and animal breeding. Tradesubsector has operationalised trade loans to small scale traders. In education, overall ECDEenrolment has reached 72 percent with increased infrastructural development and the scholarshipand bursary scheme has been revamped to increase the beneficiaries bracket. The health sectorhas registered improvement in the provision of medical drugs and health facilities' infrastructuraldevelopment. Much still need to be done in the infrastructure, energy and water sectors.The economic growth momentum has been held back by emerging challenges particularlyinsecurity and its negative impact on the tourism sector. Besides insecurity, other challengesinclude;i. Poor education standards and inadequate skilled manpower,ii. Low agriculture, livestock and fisheries productioniii. Low and stagnating investment in trade, industry and tourismiv. Lack of collateral and weak capital basev. Poor delivery of quality health servicesvi. Poor infrastructure and unreliable energy supply, andKwale County Fiscal Strategy Paper-20153 Kwale County Treasuryvii. Uncoordinated and weak citizen participationThis 2015 CFSP will set out priorities and earmark significant resources to address thesechallenges. As we implement the CIDP in the coming Financial Year 2015/2016, we shall buildon the achievements made so far in most of our sectors and through the policies set out in this2015 CFSP, efforts will also be made to address the existing as well as emerging challenges.In this 2015 CFSP, we review the progress we have made in the past two years of devolution andthe priorities spelt out in the 2014 CFSP. The county economic transformation can be achievedby implementing the set out priorities in this 2015 CFSP. We are confident that this will form abasis to decisively deal with the concerns of Kwale citizens on insecurity, unemployment, lowincomes and high poverty levels, food insecurity among others. With improved infrastructure ineducation, health, water, energy, transport and ICT, we envisage sustainable and acceleratedpace of economic growth to realize our vision of being a competitive, industrialized and socioeconomically self- sustaining and secure county.

Download