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Kenya: Press Statement addressing Budgetary Allocation in Counties (14.10.2016)

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Members of the Press,
Citizens of Kenya,
We address you today after recent coverage in the dailies portraying counties to be misusing funds allocated to them. County Governments have achieved much since the inception of the devolved system of governance and each county can readily demonstrate what they have achieved in each sector.
In line with this, the Council of Governors would like to clarify some things and the set the record straight.
ACCESS TO OVERDRAFT FACILITIES
• Counties are now able to access overdrafts from the Central bank for operations at 5% of the latest audited revenue and to be repaid within a year.
• The Central Bank of Kenya is in the process of preparing guideline since they have clearance from the Attorney General on the interpretation of the law in line with Article 212(b) of the Constitution of Kenya 2010 and Sec 140(1) of the PFM Act 2012.
The borrowing will cushion Counties financial constraints necessitated by delay in disbursement of the equitable share from the National Treasury.

UTILIZATION OF FUNDS BY COUNTY GOVERNMENTS
• According to the Controller of Budgets report for the past nine months, County Governments spent Kshs.7.15 billion on domestic and foreign travel of which Kshs.2.9Billion by the County Assembly and Kshs.4.115 Billion by the County Executive.
• The National Government Ministries and departments spent Kshs.8.023Billion in the same period of which Kshs.2.6Billion was spent by the National Assembly.
• The report further indicates that the National Government spent Kshs.107.862Billion being 26.9% of the total recurrent expenditure (Kshs.400.33Billion) on other unclassified expenditure.

WHAT DEVOLUTION HAS DONE FOR THE PEOPLE OF KENYA
• Since the advent of devolution, there is evidence to show that the people of Kenya have experienced a lot of positive change especially in service delivery. Health services are more accessible in the rural areas and more affordable. In 2012, there were 8,466 health centers and dispensaries, currently the numbers stand at 10,032 health facilities.
• Counties have employed more health care personnel. In 2013 there were 874 doctors and 6,620 nurses, the statics today stand at 1,302 doctors and 8,903 nurses in the county health facilities.
• Infant mortality rate has dropped to 39% per every 1000 live births as opposed 62% per every 1000 live births before devolution.
• In Agriculture there has been an increase in crop and livestock production. 132 Value addition projects have been instituted in 34 Counties; 1,021 greenhouses installed in 36 Counties; and 911 cattle dips have been constructed and rehabilitated in 28 Counties.
• 541,627 farmers have access to extension services with the aim of improving productivity.
• Counties have witnessed a 20% increase in enrollment of students in the ECD centers. In 2013, the ECD enrollment stood at 1,691,286, today it stands at 2,074,060. Additionally, 30,049 teachers and assistants have been recruited to cater for the increased enrollment.
• County Governments have refurbished over 598 centers, built over 5,951 ECD centers and equipped them with desks in a bid to ensuring that pre-school children learn in a conducive environment.
• Counties have embraced innovative and advanced technologies like the Pro-base road construction technology which is cost effective, durable and easy to maintain. Between 2013 and 2016, County Governments have tarmacked 379 kilometers of road and constructed 35,934 kilometers of all-weather road. Furthermore, 19,148 kilometers of new roads have been opened up and 9,572 kilometers of road rehabilitated.
• In trade, new markets for locals have been constructed to facilitate trade in the counties. The numbers of markets have grown from 362 markets to 651 markets.
• In 2013, there were 1,396 cooperatives which have since grown to 1,806 cooperatives with a turnover of KES 56 billion. The Cooperative societies in Kenya are now employing more than 300,000 people besides providing opportunities for self-employment to many more.

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