The 2020/2021 Programme Based Budget Estimates, the fourth to be prepared in the secondadministration of the county government of Nandi in line with the County Integrated Development Plan(CIDP 2018-2022), County Annual Development (CADP 2019/2020) and County Fiscal Strategy Paper(CFSP 2020) reaffirms the countys priority policies and strategies as prioritized in the Third MediumTerm Plan of the Kenya Vision 2030. In this regard, the Government has taken decisive steps to harnessthe implementation of various policies and programmes hitherto. Implementation of the policies andprogrammes highlighted in these estimates is expected to accelerate and sustain inclusive growth, createopportunities for employment creation, reduce poverty and provide a better future for all the residents ofNandi.Over the 2019/20- fiscal year, the County Government has not realized major growth in Revenues asanticipated due to various unforeseen challenges resulting in shortfalls on revenue projections. TheCounty Local Revenue targets may not be optimally met majorly due to persistent non remittance ofCess by the Multinational Tea Estates and land rates after the county assembly approved Finance Bill2019/2020 with increased rates hence escalating to Court cases which has dealt a great blow on localrevenue targets since these are major revenue sources. Other local revenue sources including Singlebusiness permits, parking fees, market fees among other revenue lines have been seriously hampered bythe closure of businesses ,eateries and open air markets occasioned by the outbreak of the highlyinfectious Corona Virus causing slowed down economic activities hence the anticipated revenuecollection shortfall. The National treasury on the same vein has indicated the intent to revise downwardsthe shareable revenue and conditional grants from National Government and development partners dueto the challenges posed by the aforementioned pandemic on the national economy which has forced thegovernment to adjust the tax rates to cushion the mwananchi and businesses against the effects of thedisease hence the national taxman facing huge revenue shortfalls which negatively affects the exchequerissues to the counties which are grappling in putting up measures in readiness for response to thepandemic. These factors and forces brings forth huge budget deficits due toNandi County Medium Term Expenditure Framework-2020-2020/20223 | P a g erevenue shortfalls on the 2019/2020 F/Y which negatively affects the 2020/2021 F/Y budget estimates.Global economic growth is expected to slow down as a result of weakening growth rate in both theadvanced and emerging market economies which have been adversely affected by the global COVID 19pandemic since major economic drivers like crude oil reports lowest ever prices resulting in economicdepression. This is expected to have a ripple effect on the local economy over the medium term. The raftof measures taken by government aimed at containment of spread of the virus including cessation ofsections of population, restrictions on travel and transport business, nationwide curfew has caused tradetensions and slowed down socio-economic activities which negatively affects the national economy aswell as the county through revenue losses.In view of the above, trade-offs in financing different policy objectives have therefore been carefullyexamined and adjusted in line with the National Treasury Budget Policy Statement and other key policydocuments including County Allocation of Revenue Bill 2020 and County Fiscal Strategy Paper- 2020in a manner consistent with fiscal consolidation. To cater for the deficit, the County Treasury has inthese estimates aligned expenditure priorities to revenues as follows:i. Reconsidered funding to actualize programmes budgeted for in FY 2019/2020 which could notbe realized due to shortfalls in revenue targets and exchequer releases as well as funding the multi-yearflagship projects which includes County Referral Hospital with Mother and Child Unit, Milk Processingplant and Textile and Apparel Unit which are Countys initiatives aimed at realization of the NationalBig 4 Agenda.ii. Completion and operationalization of programmes and projects funded in the previous years andnot complete and functional as opposed to starting new projects as directed by the National Treasury.Nandi County Medium Term Expenditure Framework-2020-2020/20224 | P a g eiii. Prioritization of Pending Bills as triggered by the Presidential directive on inclusion in theGovernment budgets and following the Gazettement of the County Task Force on Pending Bills by theoffice of Auditor General.iv. The growth in Personnel Emoluments occasioned by the promotions of healthcare workers whichare due as well as operationalizing the proposed County Youth Service to take up opportunities on thecleaning, security, bush clearing ,drainages maintenance as opposed to outsourcing/ contracting firmswith an aim of creating employment opportunities.

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