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MUNICIPAL COUNCIL OF ELDORET
SPEECH BY CHAIRPERSON, FINANCE, STAFF AND GENERAL PURPOSES COMMITTEE, COUNCILLOR REBECCA C. MAGUT DURING THE MUNICIPAL BUDGET DAY ON THURSDAY, 30TH JUNE, 2011.
The Deputy Provincial Commissioner,
District Commissioner,
Your Worship the Mayor of Eldoret,
Your Worship The Deputy Mayor,
Chairmen of Various Committees,
Councillors,
Chief Officers,
Senior Government Officers,
Heads of Departments, All Council Staff,
Stakeholders,
Ladies and Gentlemen,
1.0 INTRODUCTION
Today is Budget Day for all Councils in Kenya. It is an annual event meant to enhance transparency and accountability when Local Authorities lay out their spending and revenue collection proposals.
Our Vision
To be the best managed and accountable metropolis in Kenya.
Mission
To provide efficient and effective services through participatory approaches and prudent use of resources.
Core Values
Integrity: In all our undertakings, we are committed to act in an honest and professional manner.
Transparency: We shall endeavour to be as open as possible and ensure that we are easily understood.
Accountability: We are committed to be responsible for our actions and continuously improve service delivery, report appropriately to stake holders and clients.
Customer focus: We commit to place the customer at the center of our focus in service delivery.
Further, the Council is working towards achieving the goals of Vision 2030 through improved service provision.
The Council has 14 wards, each represented by an elected councilor. There are also five other nominated councilors and 1 public officer.
The Council Members or Full Council constitutes the policy making organ which operates through eight committees.
The Council has a work force of 843 permanent employees who work in the 7 departments.
2.0 HIGHLIGHTS OF THE FINANCIAL YEAR ENDING TODAY, 30TH JUNE, 2011
During the financial year ending 30th June, 2011 there have been remarkable achievements. The following are the highlights:-
2.1 The Council successfully met all LATF conditionalities and had no penalties. Further, the Council met five (5) out of six (6) LATF High Performance conditions and was allocated Kshs.17 million to be implemented in the Financial Year (FY) 2011/2012.
2.2 The debt reduction plan was strictly followed and payments made according to plan.
As a result, the following debts were amicably resolved:
a) National Housing Corporation and
b) In-house (Local Provident) Scheme
As revised debt repayment plan has also been put in place to complete the outstanding Valuation Roll fees (Kshs.20 million), Bank Loan secured to reduce financial costs,(Kshs.150 million) and salary arrears (Kshs.46.6 million) which arose from the implementation of the new Collective Bargaining Agreement (CBA). To this end, we also continue appealing to the Government to bail us out by clearing accrued contribution in Lieu of Rates.
Other defaulters, especially rate payers are asked to pay up to avoid more penalties and other actions contemplated by the Council.
2.3 The Council continued to realize its estimated local revenue targets all along. This is illustrated by collections up to 3rd quarter @ 31st March, 2011 which was Kshs.338 million against annual expectation of Kshs.379 million. We expect to collect over Kshs.60 million in the 4th quarter ending today. This will result into a surplus.
I call upon Council staff especially Heads of Departments to strive to collect all revenues attributable to their departments.
2.4 Capital projects were delayed due to late receipt of LATF monies.
As of now, most of them are on-going and we expect to complete them within the next two or so months.
These projects include the following:-
a) Educational facilities at Kapkenduiywo Primary, Oasis Primary, Racecourse Secondary, Kapsoya deaf school, Central Secondary School, Tuiyobei Primary, Kipkaren Primary, Chebarus Primary, Kipkenyo Primary, Kipkenyo Secondary, Sosiani Secondary, Saroiyot Primary, Pioneer Nursery, Kapsaos Secondary, Kandie Secondary, Chepkoilel Secondary, Moi Marula Primary, Ainabtich Primary, Kimumu Primary, Chepkoilel Primary, Kamukunji Primary, Kapchumba ECD, Kapkeben Primary/ECD, St. Mary’s Primary, Union Primary, St. Patrick’s Primary, U.G. Secondary and Umoja Secondary.
Note that approval for some changes is still being awaited.
b) Electricity installations at Mwiruti Secondary, Mwiruti Primary, Gitwe Primary and Fims-Olessos-Hawkers market.
c) Water connections at Oletepes-car-doctor, Olwenge-Sigei, Munyaka, Radar, Judea-Keroka and Junction-Stephen Mahindi-Neema.
d) Maternity wing at Cheboin Health Centre
e) Women, men and Youth Capacity building in Racecourse, Hospital, Radar and Market wards.
f) Drainage works along Ken-Knit, Huruma, Kapkoros, Emkoin
g) Construction of chief’s office, Radar Ward
h) Bridge between Mwanzo and West and also Mwanzo to 64 Ward
i) 64/Industrial area Ward ICT Centre
j) Wholesale market renovation and
k) Murraming of Shirika
Other notable activities that the Council has been involved in include the UNICEF funded Child Protection Centre and the River Sosiani Clean-up.
2.5 The Arab crisis/uprising being experienced has also resulted into additional fuel prices which has knock-on-effects on other sectors. This has been a challenge in our budget implementation especially on fuel, power, stationery, construction materials etc.
2.6 All targets on the Performance Contract for the Year 2010/2011 are on course. Further, the Council performed well in the evaluation/ranking of performance contracts for 2009/2010 at position 8 out 175 Local Authorities having moved from position 26.
3.0 COUNCIL BUDGET FOR THE YEAR 2011/2012
It is now my pleasure to present to you the Council Budget for the year 2011/2012 in accordance with Section 212 of the Local Government Act, Cap 265 and Ministry of Local Government Budget Guidelines (Ministerial Circular No.38/2011 dated 23rd March, 2011).
3.1 The main guidelines that were considered include the following:-
a) The personnel ratio should not exceed 50% of total expenditure estimates.
b) Amounts allocated to Capital expenditure be equivalent to at least 65% of the LATF service delivery amount.
c) At least 10% of total expenditure be spent on repairs and maintenance.
d) At least 20% be allocated to core poverty programmes.
e) Adherence to the revenue ceiling of Ksh.686.5 million provided by the Ministry of Local Government.
3.2 The main objectives of the coming year’s budget are:-
a) To implement activities in accordance with the plans within the year.
b) To provide better services in a cost-effective manner.
3.3 Proposals in the Strategic Plan continue to be factored in the budget and through departmental work plans.
3.4 Revenue Sources
The Council has two broad revenue sources i.e. from central Government will be Kshs.326,986,385 made up as follows:-
2011/2012 2010/2011
CILOR Kshs. 22,940,394 22,997,029
RMLF Kshs. 28,381,407 50,889,500
LATF Kshs.275,664,587 185,272,906
Kshs.326,986,388 262,159,435
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c) Receipts from local sources will be Kshs.359,577,437/= as follows:-
2011/2012 2010/2011
Land Rates Kshs.104,200,037 102,105,630
Plots Rents Kshs. 1,046,000 1,050,000
Single Business Permits Kshs. 50,700,000 45,200,000
Markets and slaughter houses Kshs. 10,440,000 13,320,000
Vehicle Parks Kshs. 59,275,000 50,785,000
House and stall Rents Kshs. 19,346,400 29,647,229
Water Lease Kshs. 36,000,000 36,000,000
Conservancy Fess Kshs. 12,000,000 12,000,000
Building plans, advertisement etc Kshs. 28,100,000 16,200,000
Health services, Nursery schools
And other fees/charges Kshs. 38,470,000 17,510,000
Kshs.359,577,437 323,817,859
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3.5 Expenditure by departments
2011/2012 2010/2011
Civic Department Kshs. 21,054,000 19,555,700
Clerk’s Department Kshs.167,562454 118,714,701
Treasurer’s Department Kshs.160,105,918 75,294,739
Social Services & Housing Dept. Kshs. 37,841,043 22,235,672
Education Dept Kshs. 43,185,276 29,844,705
Public Health & Environment Kshs.164,158,913 113,420,300
Engineer’s Dept. Kshs.143,628,477 95,343,970
Debt Reduction - 63,000,000
Capital Projects Kshs.111,329,434 101,832,770
Loan Repayment Kshs. 85,000,000 -_____
Kshs.945,312,183 638,743,157
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The above expenditure is categorized under the following main vote heads:-
2011/2012 2010/2011
Personnel Kshs.461,176,688 296,204,222
Operations Kshs.186,556,061 125,861,935
Maintenance Kshs. 94,640,000 51,844,230
Loan Repayment Kshs. 85,000,000 -
Debt Resolution Plan Kshs. 54,636,061 63,000,000
Capital Projects Kshs.117,939,434 101,832,770
Kshs.945,312,183 638,743,157
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3.6 Budget Deficit/Surplus
From items 3.3 and 3.4, the Council’s overall budget is as follows:-
2011/2012 2010/2011
Total Income Kshs.686,563,825 585,977,293
Expenditure Kshs.945,312,183 638,743,157
Budget deficit Kshs.258,748,358 52,765,864
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The budget deficit will be financed from additional income over and above the budgeted figures which were regulated by the ceiling.
The additional income is reflected by the track record on collections by this Council which has been improving over the last four years. These sources include the following:-
- Land Rates - Kshs. 70 million
- Rates arrears Kenya Railways - Kshs. 50 million
- Savings on unfilled vacancies - Kshs. 17 million
- Business Permits - Kshs. 20 million
- Housing Estates - Kshs. 18 million
- Vehicle Parks - Kshs. 18 million
- Water Lease - Kshs. 6 million
- Rates National Housing Corp. - Kshs. 20 million
- Annual Rates, KRC - Kshs. 3 million
- Other fees/charges including court - Kshs. 30 million
- Staff houses - Kshs. 25 million
Kshs.260 million
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This leaves a surplus of Kshs.1.2 million.
3.7 Local Authority Service Delivery Action Plan (LASDAP) Projects
Through community participation, the residents identified priority projects during LASDAP meetings. The projects have been incorporated in the budget wholly as follows:-
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NO.
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WARD NAME
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PRIORITISED PROJECTS
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COST OF PROJECTS (KSHS)
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1
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Racecourse
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Wareng Secondary School
Racecourse Secondary
Racecourse Primary
Oasis Primary
Youth Empowerment
Drainage improvement Hill School
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500,000
500,000
500,000
500,000
500.000
500,000
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2.
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LANGAS
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Construction of Social Hall
Langas Primary c/room construction(special)
Wareng Secondary school classroom construction
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2,300,000
500,000
200,000
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3.
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KAPSOYA
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Munyaka Primary school
Construction of laboratory Illula Secondary
Women and Youth Capacity
Koibarak Primary classroom construction
G.K. Prison construction of classroom
Construction of classroom Boarder Farm Primary
Fencing of Kapsoya market
Ngomongo Nursery school
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400,000
600,000
200,000
500,000
500,000
500,000
100,000
200,000
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4.
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KIDIWA
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Re-roofing of Township Primary 4 classrooms
Renovation of Kidiwa Primary hall
Capacity building – women
- Youth
Drainage improvement – uhuru estate
Shirika car wash/railways
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400,000
500,000
400,000
400,000
800,000
500,000
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5.
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KIMUMU
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Construction of ECD classroom Ainabtich Primary
Construction of classroom Chebarus Primary
Construction of classroom Koitebes Primary
Construction of ECD classroom Moi Chepkoilel
Construction of classroom Kimumu Primary
Construction of ECD classroom Moi Marula
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500,000
500,000
500,000
500,000
500,000
500,000
500,000
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6.
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KAMUKUNJI
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Construction of Racecourse centre
Purchase of equipment for resource centre
Youth and woman Capacity building
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2,000,000
500,000
500,000
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7.
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KAPYEMIT
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Dispensing at Kapsaos
Huruma Primary classroom
Kapkoros Primary special unit
Women and Youth capacity building
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1,500,000
700,000
400,000
400,000
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8.
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MARKET
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Renovation of wholesale market
Re-roofing of main market
Additional funds to construction of ward office
Extension of street light lower West Indies
Men, women and youth capacity
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800,000
500,000
300,000
700,000
700,000
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9.
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RADAR
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Drainage improvement and culverting Kibulgeny to cemetery road
Construction of health centre Kibulgeny
Completion of Greenfield Primary school
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1,000,000
1,500,000
500,000
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10.
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KIPKENYO
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Purchase of land for Kipkenyo Secondary
Contribution towards classroom Wareng Sec.
Chebarus Primary land Purchase
Youth and women capacity empowerment
Kipkaren Primary roofing and toilets
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1,000,000
200,000
700,000
500,000
600,000
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11.
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SHAURI
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Construction of classroom at Kandie Secondary
Fencing of Shauri market
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2,500,000
500,000
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12.
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64/INDUSTRIAL
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Construction of two classroom Union Primary
Women and youth capacity building
Construction of one class and renovation St. Mary’s
Construction of classroom St. Patrick’s
Drainage improvement Macharia/Kambi Kelele estates
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900,000
300,000
600,000
550,000
350,000
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13.
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PIONEER/ELGONVIEW
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Wareng Secondary School
Women and Youth Capacity Building
Pioneer Nursery School
Kimalel Primary Renovations
ICT Centre
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500,000
500,000
500,000
1,100,000
400,000
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14.
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HOSPITAL
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Grand Pri-Naivas road improvements and culverts
Capacity building for women and youth
Bandaptai road improvement(B/F)
Construction of resource centre/ward office
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1,000,000
1,000,000
2,000,000
1,000,000
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15.
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MUNICIPALITY
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Various projects
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38,948,027
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3.8 Road Maintenance
It is anticipated that Kenya Roads Board will send Kshs.28,381,407. This will be used for routine maintenance of roads and not to undertake new constructions.
4.0 CONCLUSION
Before concluding, may I state the following:-
4.1 Implementation of the Council Master Plan has started.
4.2 Traffic flow has been re-aligned with a view to decongesting the town. We are also planning to have designated parkings for taxis and “boda bodas”.
Meanwhile, we continue to ask the central Government to assist in the construction of a by-pass.
4.3 The Council aims at developing markets in peri-urban areas starting with Kimumu and Langas markets.
4.4 The Council is mandated to control developments and wish to warn plot owners putting up structures without Council approval.
4.5 We wish to thank our partners in development such as UNICEF including investors and other stakeholders such as KAM, KNCC&I,friends of Eldoret ( FoE), SNV and other informal sector stakeholders for the meaningful co-operation/consultations that have been going on.
In conclusion, the Council has been able to manage its financial obligations well despite the many challenges and hard economic times.
Members of the public wishing to have a copy of the detailed budget can purchase it at a minimum fee of Kshs.1,800/= to recover cost of production.
Finally, I wish to thank you for attending and making this occasion a success.
Thank you and God bless you all.
CLLR. REBECCA C. MAGUT
Chairperson, Finance, Staff and General Purposes Committee
29th June, 2011
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