Nairobi only used 14pc of budget on Development in 2016-2017

November 2, 2017
Shares
According to their Annual Report, the county’s recurrent expenditure that includes salaries, allowances, office supplies hit Sh20 billion representing 78 percent of total revenue for the period/FILE

, NAIROBI, Kenya, Nov 2 – Nairobi County government spent only Sh3.7 billion for development against a target of Sh11.3 billion in the 2016/2017 financial year, which 14 percent of total revenue.

According to their Annual Report, the county’s recurrent expenditure that includes salaries, allowances, office supplies hit Sh20 billion representing 78 percent of total revenue for the period.

Some of the development projects in the period under review include refurbishment of buildings, construction of roads, purchase of vehicles and transport equipment, purchase of specialized plants and machinery in different departments.

Nairobi county total revenue hit Sh25.5billion in the 2016/2017 financial year from a target of Sh34 billion missing the target by Sh8.5 billion.

Total debt stood at Sh52 billion in the period under review with foreign loans at Sh15 billion and a KCB Bank long-term loan of Sh4 billion.

The report predicts that the country recurrent expenditure is expected to grow at an annual rate of 5 percent.

“Development expenditure is projected to require a resource outlay of Sh26 billion during the 2018- 2019. The calls for the county to leverage on a partnership with the national government in executing this plan,” the report states.

The county has projected to collect Sh39 billion for the 2017/2018 financial year with a focus on improving revenue collection mechanisms and systems to ensure the achievement of collection targets.

“The top five revenue streams are rates, parking fees, single business permits, business permits and billboards and adverts. The revenue projections from these revenue streams in 2017 -2018 are Sh6 billion, Sh3.6 billion, Sh3.7 billion, I.87 billion and Sh1.3 billion respectively,” the report reads.

In the 2017/2018 financial year, the 47 counties will share a total allocation of Sh341 billion, consisting of Sh302 billion of an equitable share of national government revenue, Sh23 billion in conditional grants from the national government and a further Sh16.4 billion in conditional allocations from loans and grants from development partners.

Nairobi County will get Sh15.4 billion, an increase from Sh14 billion in the 2016/17 financial year.

Shares

Latest Articles

Stock Market

Most Viewed