The preparation of 2020 County Fiscal Strategy Paper (CFSP) is guided by section 117 of thePublic Finance Management Act (PFMA), 2012 and Regulations No. 25 (1) of the PublicFinance Management Regulations 2015 (For County Governments). Section 117 of the PFMAct, 2012 states that the County Treasury shall prepare and submit to the County ExecutiveCommittee a County Fiscal Strategy Paper (CFSP) for approval and the County Treasury shallsubmit the approved Fiscal Strategy Paper to the County Assembly, by the 28th February of eachyear. Further, the County Treasury shall align its County Fiscal Strategy Paper with the nationalobjectives in the Budget Policy Statement.The 2020 CFSP is prepared against a background of anticipated upward growth of the Kenyaseconomy .The domestic economy is projected to expand by above 6.1 percent over the mediumterm. This will be attributable to the envisaged stable macro environment, robust services sectorand ongoing investments in the National Government strategic priorities under the Big FourPlan. On the local scene, increased mining activities, sugarcane production, tourism earnings,infrastructural developing roads are expected to boost the economy. We estimate economy togrow by over 2 percent in 2020 and about 5 per cent in the medium term.This 2020 CFSP has set out policy measures which prioritize strategic programmes anchored inthe second County Integrated Development Plan (CIDP) 2018-2022 and the GovernorsManifesto to the people of Kwale. The policy measures and strategic priorities highlighted in this2020 CFSP will take advantage of the ongoing National Government strategic investments asespoused in the Big Four plan (MTP III). The policy goals are geared towards positioning thecounty to benefit more in terms of enhanced economy growth as opportunities are unlocked.This 2020 CFSP gives the basis for the FY 2020/2021 budget. The fiscal policy proposed in thispaper recognizes our constrained fiscal space and therefore budget allocations have been setaccording to expenditure priorities and strategic objectives as outlined in our 2018-2022 CIDP.As a consequence, expenditure ceilings have taken into consideration the degree to whichprogrammes in each department match our strategic objectives and expenditure priorities andtheir affordability and sustainability.

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