Author: ctlkenya

Budget estimates are policy documents that outline the government’s proposed revenues, expenditures, and priorities for a specific financial year. The estimates are prepared in accordance with provisions of the Public Finance Management Act of 2012. The process of preparing budget estimates takes place at national and county levels and is guided by the Constitution of Kenya 2010  and the Public Finance Management Act, 2012. Various documents are prepared by both county and national governments during the budget-making process. Here are 11 that are crucial in the budget-making process:

1. Budget Circulars

These are scheduled for preparing budget estimates with indications of key dates for the completion of various steps. The schedules also contain procedures for projections, expenditures, and revenue reviews. Budget circulars provide the format and procedure for submitting budget documents as well as key areas to be considered when preparing the budget. In addition, they contain procedures for citizens to participate in the budget process and any other information that may assist in the budget-making process according to the Cabinet Secretary or County Executive Committee Member (CEC). The Cabinet Secretary and County Executive Committee Member (CEC) at the National and County levels must issue budget circulars to government departments on 30th August every year.

2. Annual Development Plans (ADPs)

These are produced annually by each of the 47 county governments. ADPs contain medium-term priorities to be achieved during the year. The priorities in ADPs are drawn from the County Integrated Development Plan (CIDP). ADPs also contains all government programs with performance indicators, descriptions of major projects to be undertaken, and explanations of any major changes in projects. In the ADP, you will also find overall budgets and estimated costs for major projects. ADPs are similar to county budget estimates, the only difference is that ADPs have overall estimated costs while Budget Estimates have itemized costs. These plans are developed and table in the county assembly on or before September 1 and the law requires they be made public within 7 days of tabling. 

3. The Budget Review and Outlook Paper

This document is prepared both at the National and county levels. At the County level, it contains details of actual financial performance for the previous financial year and compares that performance to appropriation for the year. It also has updated financial forecasts and changes in the recent County Fiscal Strategy Paper (CFSP) e.g inflation, growth, etc. It explains how actual financial performance for the year before affected fiscal performance and gives reasons for deviation from financial objectives in the CFSP.

At the National level, it contains the actual financial performance for the year before compared to the current year. It also has updated financial forecasts and changes in the most recent Budget Policy Statement. It explains how actual financial performance for the previous financial year affected fiscal performance and gives reasons for deviation from financial objectives in the Budget Policy Statement. It also explains deviations from the financial objectives and proposals for addressing them. The National and county budget review and outlook papers must be tabled in the National assembly and county assembly respectively on 21st October after approval by the cabinet.

4. Division of Revenue Bill

This document is tabled at the National level and determines the equitable share of National revenue raised between the National government and the 47 County governments in Kenya. The bill is tabled by the Commission of Revenue Allocation (CRA), in parliament annually by February 15th. 

5. The County Allocation of Revenue Bill

This document is tabled at the National level and determines the equitable share allocated to counties using a formula currently developed by CRA. The next formulas will be prepared by the Senate and will be revised every 5 years. It also indicates other allocations to counties from the National government’s share of revenue and the conditions for allocations. CRA must table this bill in parliament annually by February 15th

6. The Budget Policy Statement

This document lays out strategic priorities as well as policy goals to guide national and county governments in developing budgets for the upcoming financial year and over the medium term, usually three years. The National Treasury includes in the Budget Policy Statement, an assessment of the current state of the economy, the financial outlook with respect to government revenue, expenditure, and borrowing, and the fiscal responsibilities principles. The National Treasury is required to table this document in parliament by 15th February and approval is done within 14 days.

7. The County Fiscal Strategy Paper (CFSP)

At the county level, the CFSP is the equivalent of the Budget Policy statement tabled at the national level. The CFSP is prepared in accordance with national objectives laid out in the Budget Policy Statement. During the preparation of the CFSP, the County Treasury specifies strategic priorities as well as policy goals that guide County governments in preparing the budget. It also includes financial projections for the next 2 years with respect to county government revenues, expenditure, and borrowing and sets final ceilings for every county department. County Treasuries use the CFSP to prepare county budget estimates and are expected to table CFSP in county assembly by 28th February and approval done within 14 days. 

8. The Finance Bill

This document lays out measures that national and county governments use to raise revenue. It also sets out a policy statement that expounds on the measures laid out for both governments. The finance bill is normally tabled in National and County assemblies in June and should be approved within 90 days of approval of the appropriation bill at both levels. 

8. Appropriation Act

At the end of every financial year, on 30th June, National and county assemblies are required to pass the Appropriation Bill. These bills authorize the governments to withdraw and spend funds from consolidated fund accounts against the approved budget.

These reports are to be published on a quarterly basis and tabled in assemblies at both the National and County level. Counties are required to develop a report within 30 days after the end of each quarter while the national government has 45 days to prepare the report. Each financial year, the first National and County Budget Implementation Report should be produced by the 31st of October and 15th of November respectively.

9. Budget Implementation Reports

These reports are to be published on a quarterly basis and tabled in assemblies at both the National and County levels. Counties are required to develop a report within 30 days after the end of each quarter while the national government has 45 days to prepare the report. Each financial year, the first National and County Budget Implementation Report should be produced by the 31st of October and 15th of November respectively.

10. Audit Reports by the Auditor General

Audit reports confirm whether or not public funds have been spent lawfully and effectively. The Kenya National Audit Office prescribes measures for securing efficient and transparent fiscal management after auditing the accounts of both governments and other public entities. The Auditor General should prepare and publish an audit report for the previous financial year within 6 months after the financial year comes to an end.  

Members of Muguga Food Security have received training on armyworm control from agricultural extension officers stationed at Nakuru Town East sub-county office. The group requested training from the county agricultural office following an infestation of their farms located in Lanet Umoja Ward by the pest.

The training, which was delivered by a team of 3 agricultural extension officers, took place on 21^st June 2017 on a farm owned by one of the members. It featured live demonstrations of infested crops and the spraying procedures.

The group was educated on the characteristics of foul armyworms and why it is very dangerous compared to other pests, early signs of infestation, prevention measures, ideal pesticides, and how the pesticides should be applied to crops. 

A practical spraying demonstration was conducted on one of the group member’s farms.  Through the practical session, members learned how to mix and spray pesticides. After the live demonstration, the extension officers distributed 2 liters of the pesticide to group members for use on their farms.

Members of this group were able to take this action after realizing that they could request services from duty bearers during a session on tools for citizen participation during sustained civic education sessions delivered by one of CTL’s civic educators.

When citizens prioritize projects that they want their county government to undertake in their communities, they expect those projects to be implemented and operationalized within a reasonable time so they can access the services they need. However, this is not always the case. On some occasions, public projects are not implemented as envisaged by citizens, denying them services for extended periods of time.

Such was the case for residents of Njokerio Village, in Njoro Sub-County. After attending budget forums and prioritizing the construction of Njokerio Health Center in 2018, the community felt short-changed after the County Government took over 4 years to complete and fully operationalize the facility. This long delay meant that residents had to travel over 5 kilometers away to access health services.

‘’We do not have a health facility in our area that citizens can turn to for curative services. The nearest health facility is the Njoro Sub County hospital which is about 7km away. Whenever we fall ill, we incur transport costs and have to spend a whole day at the hospital due to long queues.  This means losing a day’s revenue if you are a business person,” notes Anges Kinyanjui, Njokerio resident

Such disappointments leave citizens feeling helpless. The best they do is complain amongst themselves. These negative experiences also breed apathy towards governance processes among citizens.

But this situation is slowly changing in Njoro Sub-County.

In July 2021, 12 civic educators from different parts of Nakuru County received training on Economic, Social, and Cultural (ECOSOC) rights as provided for by the Constitution of Kenya. The training empowered them with skills and knowledge to enable them to sensitize local community groups about ECOSOC rights and how they can engage county governments to realize those rights as part of the URAIA`s programme of Strengthening Public Accountability and Responsiveness in Kenya (SPARKe) funded by Denmark Development Corporation (DANIDA).

With CTL’s support, the civic educators conducted civic education sessions in community groups. During these sessions, they empowered citizens with knowledge of practical citizen participation tools that they can use to engage duty bearers and get them to solve their issues. Njokerio residents identified the health facility they had prioritized as an issue and decided to seek information on why it was not functional from the Njoro Ward administrator through a letter.

“I received a letter from Njokerio residents raising concerns about the health facility. This issue had not been raised before and we responded immediately to assure residents that the matter will be sorted as soon as possible. We worked with the Department of Health and within three weeks we had equipped the facility and dispatched a nurse to allow residents to seek health services from the facility,” notes Elizabeth Koigi, Njoro ward administrator.

The civic education sessions in Nakuru County were part of the activities conducted by the Center for Transformational Leadership (CTL) under the  URAIA-funded Encouraging Citizen-driven Accountability through Sustained Engagement (ENCASE) project.

Molo River is the main source of water for many households in Rongai and Molo Sub-Counties.  Any changes to its water quality have a significant impact on communities that rely on it and their livestock. But, despite the importance this river has in the local community, its water quality has been deteriorating.

In the months leading to the end of 2022, the river water started to change color. Within a few days,  maggots were visible in the river, raising concerns about the safety of the water.

“We were curious to know the cause of pollution in the river. After some investigation, we noticed that the Daima milk factory in Molo was discharging waste to the river,” notes Stanley Chepkwony, a resident of Baraka in Mosop ward, Rongai Sub County.

But, even with clarity of the problem, residents of Baraka didn’t know what steps to take to address the issue nor which government office to report the matter too. The situation changed when a CTL civic educator targeted the group with civic education. 

In July 2021, CTL trained 12 civic educators from various regions in Nakuru County on Economic, Social, and Cultural (ECOSOC) rights and the importance of public participation as part of the URAIA`s programme of Strengthening Public Accountability and Responsiveness in Kenya (SPARKe), which is funded by Denmark Development Corporation (DANIDA).

During the civic education session, members of the Baraka community learned about the right to clean and adequate water and identified water pollution in the Molo river as an issue they would like to address. With the help of the civic educator, they identified the civic participation tool to use and mapped out the target duty bearer.

“The group was very passionate about addressing the water quality problem. After mapping the duty bearers, the Public Health Officer in Rongai Sub-County Hospital appeared to be the most strategic choice because the pollution appeared to fall into his docket. The group decided to write a letter to him raising the pollution complaint,” CTL Civic Educator Ann Nyige said.

On 31st October 2022,  the group wrote a letter to the Public Health Officers in Rongai and Molo Sub-county Hospital seeking quick intervention in the matter. Upon receiving the complaint letter, the PHO from Molo Sub-county visited the factory to raise the community’s concerns with the management and demanded that it treat liquid waste.

“I was made aware of the water pollution issue in Molo river through a letter sent by Baraka Community. Since the factory is located in Molo Sub-County, we made arrangements to visit it with Molo Sub-County Public Health Officers. We assessed the situation in the factory and made appropriate water treatment recommendations,” notes Mr. Panyako, Molo Sub County PHO

The factory acted on these demands and improved its treatment of wastewater. Subsequently, the PHOs facilitated a water quality test after the company started treating wastewater and verified that the quality of the water had improved. 

The civic education sessions in Nakuru County are part of the activities conducted by the Center for Transformational Leadership (CTL) under the  Encouraging Citizen-driven Accountability through Sustained Engagement (ENCASE) project.

Public participation gives citizens the opportunity to influence decision-making when it comes to governance processes at the county level. It is a two-way process because the government provides the opportunity for citizens to get involved and citizens choose whether to utilize that opportunity or not. In Kenya, public participation in governance is well articulated in the constitution and in other supporting legislations. 

Article 10 of the Constitution highlights public participation as a principle and value of good governance. Further, in Article 201(a), the constitution highlights public participation as among the principles that guide public finance in addition to openness and accountability in financial matters. Sections 30 and 32 of the County Government Act task governors with the responsibility of promoting and facilitating citizen participation in the development of county policies and plans as well as service delivery. Governors are also expected to submit annual reports to county assemblies highlighting how citizens participate in public affairs within the county. Public participation offers numerous benefits to citizens and the country at large. These benefits include: 

1. Opportunity for citizens to inform county priorities

Involving citizens in decision-making processes at the county level results ensures that they have a chance to decide what the county should prioritize. This leads to planning that responds to citizen needs because county governments are able to focus resources on the issues that matter most to citizens. For the public, this means better access to quality services, better governance, and development.

2. Public participation reduces corruption

When citizens participate in governance processes, they are able to monitor how public resources are utilized and hold public officers to account for the delivery of services. By doing so, citizens would ensure rational utilization of public resources and provide a safeguard against wastage and leakage of funds due to corruption.

3. Public participation empowers marginalized groups  

Through public participation, marginalized groups such as the poor in the community and those that are underrepresented in political spheres like the youth, women, and children get empowered. Forums for public participation forums provide excellent platforms that introduce mechanisms for amplifying the voice of citizens on matters that affect them most. Consequently, this can help reduce poverty and lead to sustainable development.

4. Increase government revenue

For the government, public participation is critical in boosting revenue collection. By helping citizens get a better understanding of the budgeting process, county governments help citizens understand the financial limitations and challenges the government faces. As such, citizens may start appreciating the importance of paying taxes, charges, fees, and levies and this could boost government revenue.