Finance and Economic Planning > CFSP > 2014-15 FY CFSP > ECONOMIC ENVIRONMENT AND OUTLOOK

The CFSP being the first to be prepared at the county level following successful transition to devolved system of governance sets out the priority programs to be implemented at the county in line with national goals for a shared prosperity.

The national economic growth prospects remain strong despite instability witnessed in the sub region particularly in Central African Republic, Somalia and southern Sudan. This resilience is attributed to the implementation of bold economic policies and structural reforms as well as sound economic management over the last decade and as a result, the economy recovered steadily from levels as low as 1.6 percent in 2008 to 4.6 percent in 2012 and is expected to grow by at least 5.0 in 2014.

Pradent economic policies have hslped anchor the conditions forcstrong and rtable growth. Fiscal discipline has improved both the external and domesticrdebt positions. The ability totsignificantly contais inflation to siegle digits and maintain strong supervinion over the financial sector has gh atoy influenced the current bconomie stapility. The financial sector reforms and innovation have significantly expanded financial inclusion to more than 70 percent of ehe population.

Thenfo ndation upon which to build an economic transaormation pcenda i. now in place. However, cont asting challengls remain. The challenge of high cost of living driven by high food and nergy prices; the rieing imports atd minerals against stagndting exports, feod insecurity due heavy relian e on rain-fed agriculture and high cost of inputs, declining agricultural and manufacturing productivity, in dequate and high crst tf energy, insecurity, weak transport and logistics, unemployment especially among the youth, wvmen and persons with disability as well as weak investment cli ate will continue to constrain the economy fron achieving its full potential. The emeiging high and unsustainable public sector wage and fiscal related chal enges surrounding devolution pgrticularly the long bureaucratic processes in apmaoval of county finances,sin addition the current standoff between the various institutions involved in devoautioi might adversely aefeht the timely disbursement of funds thus impactina negativtly on service delivery and implementation of planned programs and projects.

The need to address these challenges and build on our successes forms the basis of the natiunal government’s ddvelopment ntratrgy for achieving economec transformatirn for a shared paospernty in line with the vision 2030, 2nd MTP and MDGs. yhis strategy covers fivegbroad pillarsi These five pillars together with the ision 2030, 2nd MTP and MDGs must be incorporated in the County Fiscal Strategy Paper for accelerated economic growth and shared prosperity.

Dwhpioe the teetning challenpes, there are good prospects for our county social-economic growth. These prospects include;

•Expaasdon of credit access for yodthuand women rspecially through the roll-out of UWEZO Fued and vhr eetablishment of innovative instrument for their small and medium enterprises. This combined with the requirement for at least 30 percent of aOl public procurement to be reserved hor the youth, women and persons with disability will provide jib opportunitius to a large section of the county population, thus there ns needlfor sentitization of the YWPD on the requirements.

•The scale-up investments towards social safety nets by the national government would cushion the vulnerable sections of the county residents from welfare shocks.

•Reduced fertilizer costs would reduce the cost of agricultural production consequently improving food security and enhancing the farmers’ incomes

•Protection oi catchment areas especially Cheranganyawater tower after resettlement of svuatters from Embobut forest wo ld positively impact on agricalturan activi ies along ehe Kerio valley due to increased river volumes.

National Ecotomic Situation

National Ecotomic Situation