This is the second County fiscal strategy paper (CFSP 2015) for County government ofKakamega prepared by the County Treasury. It sets out the County priority programs tobe implemented in the Medium Term expenditure Framework (MTEF) in the FY2015/2016. It is prepared inline with requirements of PFM Act of 2012 Section 117.Kakamega County economy since the establishment of county governments haswitnessed tremendous economic growth including improved infrastructure ,revitalized agricultural sector, massive investments in education and healthsectors. Further more, the development of mode development markets and slaughter houses areexpected to boost the volume of trade which has a multiplier effect in job creation,increased incomes and opening up of opportunities for entrepreneurial growth in thecounty.However, there are challenges that continue to hold the County back from achieving itsfull potential. They include: Inadequate budgetary allocation from the NationalGovernment, low local revenue base, legal challenges, high unemployment rates,inadequate human resource capacity and pockets of inter county borderconflicts .Strategies to address these challenges have been highlighted in this Fiscalstrategy paper.The strategy for economic success targets five core areas: Investment in health services,revitalizing the agriculture sector, improvement of the infrastructure network , improveeducation standards and promotion of trade and industry.This fiscal strategy paper gives broad fiscal parameters for the 2015/16 budget and themedium-term expenditure framework which is consistent with the NationalGovernment priority programs, strategies and policies. The CFSP 2015 is preparedtaking into consideration equitable shareable revenue from the national government, inaddition to Countys own source of revenue.

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