A summary of Kisumu County Budget for the FY 2013/2014 -- County Governments Budget Implementation Review Report

Part of County Governments Budget Implementation Review Report that focuses on Kisumu county

 A summary of Kisumu County Budget for the HELF YEAR FY2013/2014 , revenue and expenditure for the period July to December, 2013.

 Kisumu County

The budget of Kisumu County for the FY2013/2014 was Kshs 8.3 billion. The budget has allocated Kshs 5.8 billion (70%) for recurrent activities and Kshs 2.5 billion (30%) for development projects. The expected annual revenue for the County is Kshs.4.9 billion (59%) from the national equitable share and Kshs.3.4 billion (41%) from local revenue sources.
During the first six months of the FY 2013/2014, the County received Kshs 1.6 billion (80%) as national sharable revenue, Kshs 210.3million (11%) from local revenue collections and unspent balance brought forward from last financial year of Kshs 179.5 million (9%). Local revenue collected in the second quarter was Kshs.101.8 million which is a slight decline from the Kshs.108.5 million collected in the first quarter. The total local revenue collection was 6.2 per cent of the annual revenue target. The major sources of local revenue were parking fees (39.4%), Market fees (18.5%), and land rates (9.1%).
Total funds released for the period was Kshs.1.3 billion comprising of Kshs 1.1 billion (85%) for recurrent activities and Kshs 190 million (15%) for development programmes.


Total Expenditure Analysis, Kisumu County

The total expenditure for the period under review amounted to Kshs. 863 million representing 67.2 per cent of the funds released. However, the total expenditure represents an absorption rate of 10 per cent of the annual budget. A breakdown of the expenditure shows that the County spent Kshs.796.7 million (92.4%), on recurrent expenditure, Kshs.53.6 million (6.2%) on debt repayment, and Kshs. 12.5 million (1.4%) on development project.
The recurrent expenditure for the period July to December, 2013 represented 72 per cent of the funds released for recurrent activities. However, this was an absorption rate of 7 per cent of the annual recurrent budget. Likewise, the development expenditure was 7 per cent of the development funds released during the period translating to an absorption rate of 5 per cent of the annual development budget.
An analysis of the recurrent expenditure shows that the County spent Kshs. 548 million (63.5%) on personnel emoluments and Kshs.248.7 million (28.8%) on operations and maintenance. Further breakdown of the operations and maintenance shows that Kshs. 27.7 million (10.8%) was spent on travel costs and accommodation allowances, Kshs. 26.1 million (10.2%) on purchase of vehicles, Kshs.23 million (9%) on routine maintenance, Kshs. 19.4 million (7.6%) on training, Kshs. 12.2 million (4.7%) on conferences and hospitality and Kshs.11 million (4%) on printing, advertising and information supplies. Sitting allowances for MCAs was Kshs. 13.4 million (5.2%) and the remaining Kshs.115.9 (47%) was spent on other operations and maintenance such as purchase of furniture, stationery, and fuel among other expenditure. All the development expenditure reported was on purchase of land.
It was observed that the County under-performed in its local revenue collection by  achieving 6.2 per cent of its annual target. Additionally, development funds are thinly allocated across many projects. In order to address the aforementioned, the County needs to enhance its revenue collection measures to address the declining local revenue performance. Development projects with high impact to the public should be given priority in subsequent budgets.

SOURCE: County Governments Budget Implementation Review Report
 HELF YEAR FY2013/2014
 FEBRUARY, 2014

OFFICE OF THE CONTROLLER OF BUDGET