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Budget1

IGAMBI READS AND SUBMITS THE NAIROBI CITY COUNTY BUDGET HIGHLIGHTS AND REVENUE RAISING MEASURES FOR FISCAL YEAR 2021/2022

Nairobi,24th June 2021

Nairobi City County Government, County Executive Committee Member for Finance and Economic Planning, Mr. Allan Esabwa Igambi today read and submitted the Budget Highlights and Revenue raising measures for fiscal year 2021/2022 to the Nairobi City County Assembly. This years’ theme being Institution Transformation for Recovery, resilience and improved services.

The budget highlights and revenue raising measures for FY. 2021/2022 is in fulfilment to the provisions of Section 132 (1) of the Public Finance Management Act, 2012 and premised on Article 201 of the Constitution of Kenya.

Mr. Igambi said that both global and domestic economy was faced with the devastating effects of Covid-19 and the pandemic had a negative impact on the performances of the own resource revenues. This in effect had affected service delivery due to the emergent resource constraints.

He further stated that to achieve medium term priorities, the County endeavors to overcome the persistent challenges that had been experienced in the previous years which are largely infrastructural, social economic among others.

Mr. Igambi said that in order to support the efforts of the National Government in curbing the spread of Covid-19, the County through the NMS embarked on a program of water provision in the informal settlements.

He said the County has also ensured continued access to education through allocation of sufficient resources towards free ECD programme, school feeding programme, education support program in form of bursaries, and waiver of business licenses for schools during the period when they were not in operation.

Said Mr. Allan “Nairobi City County Government will support traders and SMEs to bounce back from the pandemic by enforcing existing legislation, revive dormant Cooperatives, allow hotels and matatus to pay licences as per the reduced sitting capacities and social distancing compliant capacity”.

Mr. Igambi said that the County Government seeks to support the development of affordable housing through joint ventures as evidenced by the current projects in Pangani Estate where an estimated 1,042 units will be completed in 2021 and a balance of 518 units will be completed by May 2022 and Jeevanjee estate where 1,830 units are estimated to be completed in December, 2022.

Said Mr. Igambi “Delay in settlement of bills to service providers has led to serious economic and social disruptions and in the coming financial year, the County Treasury will roll out expenditure management policies and sectors will be required to ensure all their pending bills are cleared through necessary adjustments”.

He said that the County will work with KRA to address structural and administrative reforms necessary to achieve set revenue targets and will also undertake reforms to enhance prudent management of available resources in order to reduce expenditure on non-core expenditures to create the fiscal space for development expenditure.

Mr. Allan proposed an allocation of 19.2 Billion to NMS for the transferred functions while the National Government is expected to fill any resource gaps to NMS from the consolidated fund in line with the deed transfers.

He said an allocation of Kshs. 1.5Billion is proposed to the Ward Development Fund Account whose programme is aimed at reducing disparities in resource allocation and development across wards.

Mr. Allan proposed an allocation of Kshs. 4.13 Billion to the County Assembly which plays an important role in all legislative functions including approvals of County laws among others.

He also allocated Kshs. 1.3 Billion to the education sector whose main focus will be on hiring and training more ECDE teachers, improve and expand existing training infrastructure as well as integrating ICT in curriculum delivery. An allocation of 420 Million has also been allocated for provision of bursaries to needy students.

Mr. Igambi told the members of the County Assembly that the County seeks to tap into the existing opportunities in urban agriculture and has allocated Kshs. 409Million.

He said the County has allocated Kshs. 252Million for youth activities including completion of stadiums and social halls which serve as recreational centers for the youth.

Said Mr. ¬†Igambi “The FY 2021/22 budget estimates will be financed from the transfers from the National Government and Own Source Revenues. The total resource projection¬†for the FY 2021/22 stands at Kshs. 39.63 Billion up from Kshs. 37.1Billion in FY 2020/21″.

He said that the County will continuously and constructively seek to tap into the wealth of experience and legal muscle of KRA to increase the County’s revenue performance.

Mr. Igambi said that completion and implementation of the GIS based Valuation roll remains a key strategy to boost the County’s rates collections.

Said Mr. Igambi ” The County Government remains steadfast in ensuring that the County’s Development targets are met consequently transforming the County into the glorious city in the sun, a competitive city globally with its people benefitting from a high quality of life.

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