How Nyanza governors plan to spend your billions

Nyanza governors are to spend a huge chunk of their county budgets to offset salaries even as they pursue various development projects.

The huge wage bills and recurrent expenditure present a tough challenge to county chiefs in Nyamira, Kisumu, Homa Bay, Siaya, Migori and Kisii counties as they strike a delicate balance between development and recurrent expenditure.

In Nyamira, the Sh4.9 billion allocations on salaries takes more than half of the Sh7.3 budget the devolved unit intends to implement. Part of the expenses will also be used to run offices.

In Kisumu, the wage bill will take nearly half of the Sh12.3 billion budget, with an allocation of Sh4.9 billion. 

Governor Anyang’ Nyong’o’s administration is  intending to raise the amount for the budget through various avenues such as equitable share from the national government amounting to up to Sh8.3 billion, conditional grants amounting to Sh 866 million, and the county’s own source revenue projected at Sh1.7 billion.

In the budget, development expenditure has been allocated up to 30 per cent while 22 per cent has been set aside for operations and maintenance. Human resource costs will gobble up 48 per cent of the total county budget.

Health, Agriculture, and Infrastructure are among the sectors that secured a lion’s share in the first budget in Prof Nyong’o’s second and final term as the county chief.

Health was allocated Sh3.5 billion out of which 2.8 billion will be used for personal emoluments while Sh196 million will be spent on development.

The county government has prioritised several flagship projects that can help define Nyong’o’s legacy in this coming fiscal year.

The projects include the planned construction of the county headquarters, at a cost of Sh50 million. Then there is also the construction of the county assembly, which is at an advanced stage. The project has received an additional Sh150 million in the budget.

The budget also envisions the completion of mega infrastructure projects that have been dogged with controversies, including the construction of Moi Stadium, whose rehabilitation stalled in 2019. The county government has allocated Sh100 million for the stadium project which has been bogged down by controversy.

In Siaya, Governor James Orengo’s administration plans to spend Sh12.2 billion to implement its 2023-24 projects.

According to the budget, the health docket takes a lion’s share of the budget at Sh2.5 billion.

Also in the budget is the proposal to procure assorted medical equipment, including six ambulances, at a cost of Sh60 million each.

To address the problem of food insecurity, the county administration plans to spend Sh650 million, with at least Sh220 million to be used in enhancing extension services.

The county also plans to set up a sector information management system at a cost of Sh5 million. Establishing fish landing infrastructure will cost Sh20 million, while equipping the agricultural laboratory and completing the Bondo slaughterhouse will cost Sh20 million and Sh5 million, respectively.

The Department of Governance and Administration has been allocated Sh1.3 billion as Water and Lands departments plan to spend Sh337 million and Sh358 million, respectively.

The newly established Siaya and Bondo municipalities will get Sh167 million and Sh370 million, respectively, for resource mobilization and other operations.

In Kisii, Governor Simba Arati’s administration is targeting to raise Sh650 million in locally generated revenue as the county unveiled an ambitious Sh13.8 billion budget for the 2023-24 financial year.

Several mega projects have been lined up for implementation including an allocation of Sh620 million for the construction of a cancer centre. The national government has already allocated Sh1.9 billion for the same project.

Kisii will have an equitable share of Sh9.2 Billion and will also pay for the Leasing of Medical Equipment at a cost of Sh124.7 million.

Industrial parks

With President William Ruto’s promise to add more funds to the establishment of an industrial park, the county has allocated Sh100 million towards actualizing the dream.

Governor Arati has been allocated Sh538 million for office operations. The County Public Service Board got Sh 7.4 million, while Education, Technical Training and Innovation were allocated Sh1.2 billion while Medical Services will have a lion’s share of Sh4.1 billion.

The county assembly has been allocated Sh1.4 billion, Roads and Public Works Sh1.2 billion while Kisii Municipality and the newly created Ogembo Municipality will receive a share of Sh265 million and Sh74 million respectively.

Recurrent expenditure will take a whopping Sh8.6 billion of which Sh3 billion will be used to pay salaries for staff in the Medical Services, Sh1 billion for staff in the Education Department, another Sh1 billion in the Finance and Accounting Department, and Sh1.2 billion for staff in the County Assembly.

In Migori, Governor Ochillo Ayacko’s administration has drafted a budget of Sh9.3 billion, with the proposals increasing allocation to key sectors.

The proposed budget that had been tabled in the House will be taken for public participation before it is returned to the assembly.

Health has been allocated Sh1.9 billion, which represents an increase of 21 per cent. In the current financial year, the devolved unit allocated Sh1.8 billion to the health sector.

The Roads, Transport and Public Works follow with an 11 per cent increase in the proposed budget, having Sh1.042 billion compared to Sh992.796 million it received in the 2022-23 financial year.

The county assembly came third with an increase of 10 per cent, getting Sh1 billion up from its 2022-23 budget of Sh886.8 million.

Mr Ayacko is optimistic the county will also improve its local revenue collection and projects to collect Sh545 million.

In Homa Bay, Governor Gladys Wanga has endorsed a Sh11.5 billion budget which prioritizes development projects at Sh3.9 billion.

However, recurrent expenditure and payment of salaries will take a huge chunk of the budget at Sh7.6 billion.

[Reporting by Harold Odhiambo, Clinton Ambujo, Eric Abuga, Anne Atieno and Isaiah Gwengi]