This is the third County fiscal strategy paper (CFSP 2016) 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 FY2016/2017-2018/19. It is prepared in line with requirements of PFM Act of 2012 Section117.Kakamega County has witnessed tremendous economic development including improvedinfrastructure, revitalized agricultural sector, and massive investments in education andhealth sectors since the inception of county governments. In addition, the continueddevelopment of modern markets and mikopo mashinani trade loans are expected to boostthe volume of trade which has a multiplier effect in job creation, increased incomes andopening up of opportunities for entrepreneurial growth in the County.However, there are challenges that continue to hold the County back from achieving itsfull potential. They include: Inadequate budgetary allocation from the National Treasury,low local revenue base, high unemployment rates, inadequate human resource capacityand political interest. Strategies to address these challenges have been highlighted in thisFiscal strategy 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 parameters for the 2016/17 budget and the medium-termexpenditure framework which is consistent with both County and National Governmentpriority programs, strategies and policies. The CFSP 2016 is prepared taking intoconsideration equitable shareable revenue from the national government, in addition toCountys own source of revenue.

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