The County Fiscal Strategy Paper (CFSP) 2021, lays down the outline for the preparation of theCountys Budget estimates. It highlights the policy primacy for the County Government forimplementation in the Financial Year 2021/22 and over the Medium Term. The priorities thereinare anchored in the County Integrated Development Plan (2018-2022), and the AnnualDevelopment Plan for 2021/22 Financial Year. The priorities are in line with the GovernmentsSocio-economic Transformative Agenda and other policy guidelines. This is aimed at creatingsound enablers towards the Countys development and prosperity in the long run.In preparation of the Fiscal Outlook and Strategy, the County is dependent on the Global andKenyas Economic performance. To this end, the County in preparing the CFSP assumes that boththe Global and National economic performance, among other determinant variables will favour itfor the actualization of the envisaged programmes and projects.The world economic performance before 2020 had been stable and robust. The emergence ofCOVID-19 pandemic in China towards the end of 2019, caused a contraction of global economies.In Kenya, a decline in economic activities has been experienced. A decline in consumption andlevels of disposable income will affect the production sector which is expected to negativelyimpact the generation of National and County government revenues. Kenya Government hasinitiated some supportive modalities to many sectors to ensure the pandemic has not crippled theirsubsistence, the same has been cascaded to the County through various recovery strategies.Nyandarua County has formulated various measures to alleviate the negative effects of COVID inthe macroeconomic environment. To this end, Departments, under their various programs andprojects for the Medium-term are expected to leverage on assisting the various productive sectorsand human capital recover from the effects of the novel COVID-19. It is to be noted that theprograms are to drive a social budget in the Medium-term.The CFSP 2021 lays out the Medium-Term Fiscal Framework, which offers mechanisms forachieving sustainable growth and development through efficient service delivery in NyandaruaCounty. This calls for Openness, Transparency, Accountability, Responsiveness, and Abidingby the rule of law to facilitate fiscal discipline and maintain macroeconomic stability.The main sources of County revenue in the Medium Term will be Equitable Share from NationalGovernment, Local Revenue Collections and Donor Funding. In the 2021/22 FY and the Medium ivTerm, the County Government proposes a series of measures to increase revenue and balance itsfiscal spending. The County Governments Fiscal Policies in FY 2021/22 will also focus on reorientation of expenditure from recurrent to development.The County Treasury is set to reduce its Own-Source Revenue target to Kshs. 630 Million. This isas a result of a reduction in economic activity after the COVID-19 pandemic and unmet targets inthe FY 2019/20. For the equitable share, the County is expected to get some reprieve through anincrement of Kshs. 390 Million in FY 2021/22.This Paper, therefore, puts into perspective how the County anticipates expending its scarceresources in the 2021/22 FY and the Medium Term. For its successful implementation, goodwillfrom all its stakeholders is requisite

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