The 2017/2018 Budget is tabled at a time when first term of county government is ending andexpectations continue to be high for performance. County Government is unwavering in itscommitment to stay on course of sound fiscal management in the face of this challengingenvironment. The approach of using the expenditure ceiling as a fiscal control mechanism, asprovided in Public Finance Management Act No 18 of 2012, serves this purpose well. Toachieve the fiscal adjustment necessary, the expenditure level has been reasonably set andfurther revenue enhancement measures introduced in the 2017/18 MTEF period.Over the 2017/18- MTEF period expenditure is Ksh 13.169 billion, which will grow at anaverage annual rate of 6 per cent of the revised budget. During consultations in the budgetpreparation process trade-offs in financing different policy objectives were carefullyexamined and culminated in recommendations on how policies, practices and organizationalarrangements would be adjusted in line with the national Treasury Budget Policy Statementand other key policy documents including County Fiscal Strategy Paper- 2017/18, CountyIntegrated Development Plan of 2013-2017, the Annual Development Plan and the CountyGovernor Manifesto and in a manner consistent with fiscal consolidation.For the 2017/18 MTEF period, budget has been prepared through the reprioritization ofexisting funding within the expenditure ceiling, with movements away from areas of lowerpriority to key priorities areas. Service intensive departments received substantial funding forcompensation of employees, owing to spending pressures related to the rising County wagebill. In the case of departments which have in the first term of devolved government spend onnon- devolved government functions, the budgets for such functions have been reducedaccordingly. A ceiling is put on compensation of employees budgets at 35 percent to adhere tofiscal responsibility requirement as provided by the PFM Act of 2012. Further, developmentbudget expenditure estimates is 50 percent which is higher than the minimum of 30 percentthat is provided in the PFMA 2012 and over the medium term.The financial information and key performance indicator in the County budget Estimates,provides the County Assembly and the public with the information to hold the Countygovernment of Kakamega accountable against its outcomes, set out in its medium termstrategic framework.The budget process is ably managed by Executive Committee Member for finance, supportedby a devoted team of County Treasury officers and the Planning team in the planningdepartment under the office of the Deputy Governor. As the County Treasury team we arevery grateful for their guidance and hard work. We are also indebted to the department chiefofficers, the Budget economic Forum members and the County Assembly budget committeefor making what is otherwise an impossible task, seem easier. The presentation of this budgetis the product of all their collective efforts.

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