The Kenyan economy registered an estimated growth rate of 5.8 percent in 2016 compared to arevised growth of 5.7 percent in 2015. Although there was marked improvement in growth ofmost sectors there was deceleration in growth in the key sectors of agriculture, energy, miningand quarrying, financial and insurance services. Agriculture which is the main stay of oureconomy was affected by the prolonged drought in the fourth quarter of 2016. Macroeconomicindicators had mixed performance though remained fairly stable.Performance of the county economy which is highly influenced by the macroeconomic factors inthe Kenyan economy was subdued. Agricultural production in particular was affected by theprolonged drought and other climate change effects resulting in famine and call for emergencyservices by the County Government. The General Elections compounded the challenge asbusinesses performed poorly in the months prior to the elections. The County Fiscal performancewas thus affected on the local front. Local revenue though remaining robust performed below therevised target of Kshs 261 Million. On the expenditure side, recurrent budget had higherabsorption rates while development expenditure performance rate was lower compared to FY2015/2016.The aftermath of the General Elections will be felt on the County fiscal performancein the FY 2017/2018 budget. Though we anticipate the situation to improve and have positiveeffect on budget implementation, risks still remain.In the current financial year, deliberate efforts shall be undertaken to improve on local revenuecollection. Among such efforts will include: intensifying compliance and enforcement efforts,fast tracking the implementation of revenue system automation, enactment of the Finance Bill2015 and its other affiliated bills and establishment of the new valuation roll. To improve ondevelopment budget absorption, prompt preparation of procurement plans shall be enforcedusing e-procurement system to achieve efficiency and technical capacity in relation to projectsimplementation in key areas shall be enhanced.The Kenyan macroeconomic outlook is expected to show positive growth. This coupled withimprovement in security and implementation of the reforms in the areas of governance andjustice will ensure prosperity in the country. We anticipate positive growth in the local economy COUNTY BUDGET REVIEW AND OUTLOOK PAPER, 2017KWALE COUNTY TREASURY Page viias tourism earnings improve owing to improved security. Favorable weather patterns and effortsto enhance non-rain fed agriculture will also encourage growth in our economy. The effects ofpositive growth in the Kenya economy will stimulate growth in the various sectors of our localeconomy thereby increasing savings, investments and incomes of the people. This will providean enabling environment to enhance our local revenue collection and thus enhance public servicedelivery.

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