The theme of the 2016 National Budget Policy Statement (BPS) is sustaining EconomicProsperity for all Kenyans. In the spirit of keeping in line with this theme, this 2016 KwaleCounty Fiscal Strategy Paper (CFSP) will aim at consolidating the gains made so far inimplementation of planned programmes and projects and build on the successes to achieve evengreater economic prosperity for the Kwale Citizens. Thus, the 2016 CFSP re-emphasizes theCounty Government's economic transformation agenda and propose strategic priorities aimed ataddressing our key development challenges to sustain economic prosperity which we havegained so far. The strategic priorities as outlined in our recent Annual Development Plan of2016/2017 include(i) improvement in infrastructural facilities in education,roads,water andsanitation systems, markets and others.(ii)investing in quality, accessible and affordable( bothpreventive and curable) health care services through the rehabilitation and upgrading of ourhospitals, health centres and dispensaries, provision of medical supplies, research andemployment of more health workers (iii) investing in agricultural transformation and foodsecurity through increased extension services, agricultural mechanization,irrigation,livestockbreeding and disease control and fisheries upgrading. This will enhance food security, createemployment, raise rural incomes and reduce poverty (iv)working towards effective managementof land and physical planning of urban areas, our natural resources and investing in landbanking.(v)investing in social welfare programmes for the youths, women and the vulnerablegroups to ensure inclusivity and equity in development. These strategic priorities will guide thepreparation of the county budget for FY 2016/2017 and over the medium term.The strategic priorities contained in this 2016 CFSP are linked to our policy goals in the firstCounty Integrated Development Plan 2013-2017 and the priorities of the MTP 11 and strategicobjectives of the Kenya Vision 2030. Implementation of the strategic priorities and plannedsector programmes outlined in this 2016 CFSP aims at achieving the objectives of the five pillarthematic areas mentioned in the three previous years BPS and reiterated in this financial year2016 BPS. Implementation of the prioritised programmes is expected to raise productivity andefficiency in the county economy thereby achieving economic prosperity and inclusive growthfor all citizens.Budget execution for the last three years of devolution has had positive tremendous impact onthe socio economic development of the people of Kwale. There has been great improvement inproductivity and growth in agriculture, trade, industry and infrastructure.Likewise, greaterachievement has been made in public awareness and engagement with the county government indevelopment of county plans and policies. This has resulted in enhanced good governance. TheCounty Government will build on the progress made so far and address the challenges thatcontinue to derail the county's transformation agenda.The Global economic environment has been beset by a myriad of challenges chief among them isthe continued declining commodity prices. Global economic growth is projected to be 3.1 COUNTY FISCAL STRATEGY PAPER 2016iii Kwale County Treasury 2016 County Fiscal Strategy Paperpercent in 2015,a decline from a growth of 3.4 percent in 2014.This is expected to recover in2016 to about 3.6 per cent although risks and emergent challenges remain. Such risks andemergent challenges include declining commodity prices, depreciating emerging marketcurrencies and increasing financial markets volatility. On the domestic front, the Kenyaneconomy remains to be robust despite the shocks from the global economic environment.Kenyan economy grew by 5.3 percent in 2014 and is projected to rise to 5.6 per cent in 2015,6.0percent in 2016 and 6.5 per cent over the medium term. This will be achieved and sustained bythe maintenance of prudent macroeconomic policies and suitable structural reforms. Since thecounty economy does not operate in isolation it is expected to be affected by such exogenousmacroeconomic environment. Challenges to the Global and domestic economies will haveinfluence in our economy. Such challenges include high levels of unemployment, risinginsecurity, unstable fixed exchange rates, high interest rates which impedes borrowing by privateinvestors and fluctuating inflation rates. Despite these challenges, the county's economic growthoutlook looks promising as there is greater growth potential in agriculture,trade,industry,tourismand land development. With the continued private investment in mining and agri-businessindustry, the county's economy will recover and growth is expected across all sectors.In this 2016 CFSP,the County Government of Kwale will build on the gains made thus far andimplement strategic interventions that will address our core development challenges in order toprovide better service delivery and enhance the county's transformation agenda for economicprosperity of our people.

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