The wage bill will take a huge chunk of the county budget in the 2018/19 financial year.
According to the County Fiscal Strategy Paper (CFSP) submitted to the county assembly by the finance executive, Joseph Kiuna, of the Sh13 billion planned to be spent, Sh6.1 billion has been set aside for workers’ salaries.
The CFSP has identified unsustainable growth in wages and salaries as a major fiscal risk.
The wage bill has been growing since the inaugural county government. In 2013, the wage bill was Sh4.2 billion. It grew to Sh5.1 billion in 2017 and not stands at Sh6.1 billion.
When Governor Lee Kinyanjui took over from his predecessor, Kinuthia Mbugua, last year, he promised to reduce the county wage bill, but after nine months in office, it has grown further.
Mr Kiuna has projected to spend Sh4 billion on the development projects that the new administration plans to undertake in the next 12 months.
Recurrent expenditure
The county’s recurrent expenditure has been allocated Sh3.6 billion.
The document specifies the priorities and policy goals that guide the county government in preparing its annual budget.
According to the executive, the county will receive an allocation of Sh11.8 billion, including an equitable share of Sh9.4 billion.
The allocation is ranked sixth highest after Nairobi (Sh15.79b), Kilifi (Sh10.83b), Turkana (Sh10.77b), Kakamega (Sh10.33b), and Mandera's Sh10.14 billion.
The CFSP, which was submitted to the assembly last week after a row between the executive and MCAs over the delay in the budget-making, has projected to collect Sh2 billion from local revenue sources.
The paper noted that in the period between 2013/14 to 2016/17, the county’s revenue cumulatively amounted to Sh39.7 billion against a target of Sh43.2 billion.
“Locally county own source revenue rose from Sh1.8 billion in 2013/14 to a high of Sh2.29 billion in 2015/16 and reduced to Sh1.96 billion at the end of the plan period in 2016/17," read the document.
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Against target
Cumulative county revenue amounted to approximately Sh38 billion against a target of Sh49 billion between the 2013/14 and 2016/2017 financial years.
Governor Kinyanjui has identified five fiscal strategy initiatives to guide the county development agenda in the short term.
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