County Budget Implementation Review Report (Kisumu county) The Office of the Controller of Budget First Quarter FY2013/2014 NOV 2013
“Kisumu County Assembly approved a Budget of Kshs. 8.6 billion for the FY2013/2014.
The Budget comprises of Kshs. 5.2 billion (60%) for recurrent expenditure and Kshs.3.4 billion (40%) for development expenditure. However, the County was advised to revise the Budget
to remove unauthorized allocations such as car grants and other anomalies.
In the first quarter of the FY 2013/2014, Kisumu County raised revenue amounting to
Kshs.108.5 million from local sources.
Data from the County Treasury shows that Kshs. 39.5 million was raised in July, Kshs.34.7 million in August and Kshs.34.3 million in September, 2013.
Out of the locally collected revenue, only Kshs.100.16 million was banked
with Kshs.6.35 million being spent at source which is contrary to Section 109(2) of the PFM Act, 2012.
The County received exchequer issues amounting to Kshs.415.2 million during the period under review.
A total of Kshs.338.4 million was spent in the first quarter, all on recurrent expenditure.
Out of the total expenditure, Kshs. 268.3 million (79%) was spent on personnel emoluments and the remaining Kshs.70.1 million (21%) on operations and maintenance.
It is important to note that the County owes the National Government Kshs. 416.3 million as salaries paid to staff seconded to the County under the devolved functions.
A further analysis of the operations and maintenance expenditures indicate that the County spent Kshs. 14.1 million (20.1%) on travel and subsistence allowances, Kshs. 2.9 million (4.1%) on conferences, and Kshs. 3.4 million (4.9%) on training. The remaining Kshs. 49.7 million (70.8%) was spent on other categories of operations and maintenance such as fuel cost, motor vehicle repairs and maintenance, and printing among others.
The County faced some challenges during the period under review. Key among them is the current huge wage bill which is not sustainable. The wage bill is expected to increase after additional County staff such as Chief Officers and Sub County Administrators are hired by the County Public Service Board.
The County should carry out skills audit, rationalize staff and consider appropriate steps to contain the wage bill in order to free up more resources for development programs.”