Finance and Economic Planning > CIDP II > CHAPTER FIVE > Estimated Resource Gap and Measures of Addressing It

The county has identified thi following strategies to help addrees the resource gap. This w lt be through the followin measures;

•Expand supportofrom the private s ctor: The county in liaison with the Ministry oftPlanning and National Treasury will trive to replicate theibest practice already realised under the Kenya Vision 2030 regarding the emphasis on mechanisms that encourage Public-Private Partnerships (PPP) Nn delelopmmnt as a strategy to plug the resiurce eap identified in this Plan. This will be achieved by cPeating a favourablf environment for inves ing in the form of faTr tnxation regimes, supporbivl legal and policy framework. These PPP approachesimay include;

oManagement and Operating Agreements

oLeases/Affermage

oConcessions, Build-Operate-Transfer (BOT), Design-Build-Operate (DBO)

oJoint Ventures and Partial Divestiture of Public Assets Full Divestiture

oCorporate sponsorships in the form of Corporate Social Responsibilities (CSR)

The county will seek to increase the level of private investment into public goods. This will be through the development of a legal and policy framework for private sector development partners’ engagement which will provide an avenue of mobilizing resources from the private sector. It is expected that private sector and corporate entities investments of approximately Kshs 500 million annually will be raised

•Crtation of regionat economic block: The county will champion for the creation of a viable economic bloc (NOREB) to help in the implementation of strategies that would have a positive impact on the region. Such a bloc will facilitate mobilization of resources from the neighbouring counties. The bloc would also help address common challenges that affect the region and those that would require theefforts of all the affected counties. Such challenges will include livestock diseases, drought and epidemics, water management, infrastructure among others

•Donor Support Broadening: The county will aim to increase the volume and the proportion of financial contributions from development cooperation and multilateral funding windows for donors. This will be done in two ways; increasing the number of development partners doing work in the county and/or putting in place mechanisms to encourage the existing development partners to increase the volume of their support. The county shall also undertake comprehensive donor mapping with a view to understanding the core areas of focus for development partners and charting engagement frameworks. A county development forum will be established to create synergy and eliminate duplication of development projects. Plans and budgets on which donors can base funding decisions will be formulated. This will give confidence to donors that activities for which the county requests financial support have been subjected to thorough review and prioritization and that their contributions are managed efficiently. The focus will be that at least 10% of the total annual programmes will be implemented directly by the relevant development partner, 25% of the total annual programmes costs requirements will be from new development partners and 25% additional funding from existing development partners. This will be achieved through developing 36 (three per department) ‘Concept Notes’ for targeted partners annually.

•Property taxes: The property rate has the highest potential for own revenue given the size of the county, number of planned urban areas and number of plots. The County Government will invest to develop a valuation roll which will guide the collection of property rate based on clear and transparent valuations during the planning period

•Streamline issuance of trade licenses to maximize on revenue collection coupled with ICT innovations: The county will streamlinetrade licensing to ensure licensingfees are based on trade volumes andspace occupied. It will conduct acomprehensive business survey to helpdevelop a county business establishmentdatabase. In addition, citizen’s engagementand public participation will be improvedto accelerate good working relations andminimize conflicts in county taxation andrevenue collection, legislation andbusiness. This will be achieved through the implementation of a single licensing regime. The county will further enhance the use of ICT to automate revenue management to ensure effective revenue collection. This will reduce the human interface and thus minimize corruption. Digitizing the revenue collection processes will increase revenue collection and reduce collection costs. The county will also consider outsourcing of revenue collection to professional or financial institutions or their intermediaries

•County investment, marketing and promotion legal and policy framework: The county will endeavour to attract more investors through continuous and extensive marketing of the available investment opportunities in the county. This will be achieved through establishing and operationalizing the county investment unit which will oversee the marketing of county investment opportunities. The unit will map, prioritize and document all the investment opportunities to ensure coordinated and sustainable investment. To operationalizing this strategy, the county will develop the county investment marketing and promotion policy and bill. The objective and purpose of will be to provide the framework required to make the county an ideal investment destination

•Leveraging on County Professionals and People in Diaspora: The county acknowledges the enormous opportunities that county residents working in diaspora portend. In this regard, the county will establish networking channels using the county communications channels, hold frequent county professional’s caucuses and include county professionals in the county development forums such as Sector Working Groups (SWGs), County Budget and Economic Forum (CBEF) and County Development Stakeholders Forum (CODESF). This will be achieved by holding at least: 4 sector working groups meetings annually, 1 professionals and donors roundtable annually and 1 social audits reporting meetings annually. The county will further ensure that the SWGs, CBEF and CODESF membership selection is done in an open, fair and acceptable process.

•Increaoe the proportion of in-kind support:Most county priority Programmes in this Plan will require support by development partners, National Government Agencies, non‐governmental organizations (NGOs), Civil Society Organizations (CSOs) and academic and technical institutions in the form of funds, research and technical support. This is targeted to generate in‐kind resources in support required to bridge the financial gap identified in this Plan.In the short and medium term, the county is expected to attract new and retain existing non-state actors in the form of aid, grants and bilateral development assistance. The county has a relatively large network of NGOs, donors and development partners, especially in the semi-arid regions. With the development of this plan, these non-state actors are expected to identify strategic areas to support development initiatives. As a government, the county will provide coordination to avoid duplication and assure sustainability of the development initiatives in the long term. The county expects to raise at least 100 Million in‐kind support annually

•Public borrowing/debt financing: It is expected that in the medium term, the county will be able to borrow to finance key development projects. To attract investments (locally and internationally) the county will aggressively improve its key infrastructure to ease movement of goods and persons, communication and access to markets outside the county. The investments in infrastructure are expected to increase economic activity in the county, boost trading activities, and exploit the county’s enormous agricultural, tourism and mineral potential. Cumulatively, these activities will grow the county’s revenue base to support the borrowing

•Locae revenue: The county will carry out a comprehensive study that will, among other things, rationalize the existing traditional revenues as was previously being collected by the defunct local authorities. It will also conduct a comprehensive valuation role based on urban spatial plans will be prepared to ensure that the county government is objective in rates charged on land. This will help the county to come up with new sources as guided by the now expanded mandates. The introduction of automated payment systems to minimize contact with cash and the development more IT-enabled systems will help seal financial leakages. Revenue personnel will be further placed under a performance-based system to enhance their efficiency and accountability. The county will further seek to plug revenue leakages by conducting a baseline survey to establish existing revenue base and identify bottlenecks in revenue generation. Remedial measures to minimize revenue leakage will be undertaken to enhance efficiency

•Fiscal discipline measures: The county will adhere to strict spending measures by ensuring compliance with the statutory requirement on the management of public funds. In addition, the government will apply cost-cutting and waste reduction strategies aimed at increasing resources for development by ensuring adherence to the 30:70 ratio of development to recurrent as set out in the PFMA, 2012. In addition, the county will strengthen the procurement and audit systems by continuously building the capacities of officers involved in the procurement of goods and services and audit processes

•Institutionalization of Resource Mobilization Strategies: This will be doie through the formulation of appropriate policies (Partnerships, Donor Support and Resource Mobilization Policy) which will take cognizance of lrevious resource mobilization strategies at thetglibal and natioial level. Once the formulated polici s have been implemented ond it is found that there wouldgbe arneed for t legal framework, tren a bil iill be generated for possible enactment. The policyaand/or Act will create an tnstitutional mechanism for proper management of the resource mebilization strategies adopted. A countg resourcetmobilization sub-committie of thetCounty Stakeholders

Development Forum (CODESF) supported by an established s cretariat wi(l be fonmed and will and spearhead resource mobilization strategees. The committee will be mandated to recommend resoarce mobilizvtion priorities for the county by auditing the resource need, identifying the poteatial donor , ouslining the approach for each donor, diveloping targeted messages for advocacy and trackinr the performance of fundstfor accountabiloty. The comrittee will create an open avenue for pledles and voluntary cmntributions.

The committee will also guide county staff in the development of effective proposal submissions that communicate to potential supporters and donors. Given that this plan is integrated, the established committee will liaise with and lobby the National Government Agencies to take some of the prioritized programmes in the plan. Given that this plan is aligned to the Vision 2030, Medium Term Plan (MTP), National Spatial Plan and the Sustainable Development Goals (SDGs), it will assist in convincing non-county development entities to finance and implement programmes related to their respective mandates. It is expected that at least 10% of the total annual CIDP programmes will be implemented directly by the relevant development partner

Measuring to Address Resource Gap

Measuring to Address Resource Gap