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The economic performance of the county has a spill-over effect on the county’s economic performance. The risks to the outlook for  2017/18  and  the  medium-term  include continued weak growth in advanced economies that will impact negatively on our exports  and  tourism  activities. Policy priorities to address the risks to economic growth are; support demand through tax reforms and spending reprioritization and; adopt structural reforms to raise production and remove production bottlenecks.

The main risk to the county outlook remains the challenges associated with the timely release of resources from the National Government to the Counties. The observed delays in effecting the transfer of funds to the County will definitely affect the performance if they recur. However, the county shall engage the concerned institutions for timely release of funds.

Secondly, the county revenue projections are subject to a number of general risks that can affect collections. These include resistance that may arise from County Finance Bill, 2016, tax evasion and avoidance, weak revenue administrative structures and significant fluctuations in major revenue sources due to changes in the economic environment. These challenges may result in a significant deviation from revenue projections and consequently lead to huge unfunded budget deficits.

Other fiscal risks also include potential natural disasters due to unfavorable weather conditions, crop failure due to maize lethal necrosis, terrorist threats causing decline in tourist arrivals and the uncertainties in the release of county funds. Such occurrences have in the past resulted in unexpected increases in expenses which disrupt the planned execution of the budget. Should these risks materialize; the County government in consultation with the National government will undertake appropriate measures to safeguard macroeconomic stability.