CLOSING REMARKS BY THE PERMANENT SECRETARY, MINISTRY OF STATE FOR PLANNING, NATIONAL DEVELOPMENT AND VISION 2030, DR. EDWARD SAMBILI, CBS, DURING THE SENSITIZATION WORKSHOP FOR DISTRICT DEVELOPMENT OFFICERS AND DISTRICT ACCOUNTANTS ON BUDGET MAKING PROCESS HELD ON 17 TH AND 18 TH OCTOBER, 2011 AT KCB LEADERSHIP CENTRE, KAREN

Commissioners, Commission on Revenue Allocation,

Ladies and Gentlemen, It gives me pleasure to be with you this afternoon at the closure of this sensitization workshop on the budget making process. Over the last two days, you have deliberated on the requirements of the budget making process under the current Constitutional dispensation.

The Constitution of Kenya, 2010, has brought about new ways of preparing the National and County Budgets; with the most important being the emphasis of stakeholders' involvement in the entire budget process. This is where you are expected to play a key role in ensuring stakeholders in your respective Counties participate in this process. You will in this regard be required to initiate the process of setting up a secretariat, mobilize stakeholders, coordinate and organize the consultations.

Ladies and Gentlemen:

During the workshop, a team of facilitators and resource persons exposed you to various topics which included budget making process, Programme Based Budgeting, the role of various Constitutional Bodies in the budget making process and the Integrated Financial Management Information System (IFMIS). I wish not to over emphasize what has been discussed, but let me make two critical observations:

•  Stakeholders' consultation in budgeting and any other policy making process is a constitutional requirement and therefore this will be a permanent feature;

•  Consultation is not just an obligation meant to fulfil the constitutional requirement. Quality consultation that is all-inclusive and positively informing development process is what we look forward to. To this end, we expect that you will ensure quality control during the whole budget exercise.

Ladies and Gentlemen,

The Ministry of State for Planning, National Development and Vision 2030 plays an important role in linking policies and planning to the budget through the MTEF process. Currently, we are in the process of developing County Profiles which will provide detailed baseline data and analyses of various sectors as an integral component of the County development framework. The County Profiles aim to bring out important issues affecting our country such as investment opportunities, business environment and climate change and issues on marginalized groups and communities besides other developmental issues.

County Development Planning provides a framework for identifying communities' needs, prioritizing strategies, projects and programmes that address local level needs while reflecting on our national priorities. It also provides a basis for selecting projects that maximize benefits to the local people in a cost effective and environmentally efficient way. Public spending, therefore, must be geared towards improving the wellbeing of Kenyans. This will entail having targeted programmes with high impact on sustainable economic growth, cushioning the poor and the disadvantaged members of our society. As you embark on the next budget process, we need to appreciate that this is happening against a backdrop of many challenges facing the country. These include rising inflation, the depreciating Kenya shilling, and high food and fuel prices. This is likely to impact adversely on economic growth forecast and the resources to be available as we prepare the next budget.

As key agents of development at the devolved level, I wish to encourage you to enhance dialogue with your stakeholders with the view of coming up with people-centred solutions to some of these problems so that we can continue to create employment and increase competitiveness of the county as envisaged in the Vision 2030. Further, I wish to reiterate that involvement of stakeholders is essential for successful implementation of planned programmes. Where there is participation of the people there is ownership and enhanced community oversight of the programmes being implemented. People's participation in planning, budgeting and execution of programmes must in this regard be upheld by all of us.

Ladies and Gentlemen

The realization of the Kenya's Vision 2030 objectives will largely depend on persistent allocation of resources to identified priorities and timely implementation of planned projects. You are aware that the Constitution has created the National and County Governments and devolved some of the National Government functions. To finance the devolved functions, the Constitution has assigned, at least 15% of the national revenues to the County Governments. It is important to emphasise that close to 85% of our country's revenues are assigned to the National Government that will be used to provide service in all counties. It is for this reason that the National Government is expected to involve stakeholders at both County and National levels to ensure better prioritization and equitable regional distribution of resources. Considering that we are faced with resource constraint, this will require proper prioritization of programmes within and across the sectors in order to cater for the identified priorities. We expect that in doing this, you will remain diligent and objective. Your leadership, cooperation and commitment will therefore be necessary in guaranteeing success to this process.

Ladies and gentlemen, a s you go back to your stations, be aware that the Government puts a lot of value to this process. The budget making process has clear guidelines of which some are constitutional and as such, you are expected to deliver within the stipulated time and cost provisions. I therefore urge you to ensure that there is prudent use of resources availed to you for this exercise within the timeframe provided. Finally, let me assure you of our commitment and support in this process. I also wish you safe journey back to your stations and fruitful stakeholder's engagement. With those few remarks, it is now my pleasure to declare this workshop officially closed.

Thank you and God bless you.