2023 Makueni County Debt Management Strategy Paper
The 2023 Medium Term Debt Strategy Paper is prepared in accordance with Section 123 of the Public Finance Management Act, 2012. It is the first to implement the third generation CIDP 2023-2027 and is prepared annually on a three year rolling basis covering a period of three years 2023/24 – 2025/26.
The debt strategy paper guides on debt management practices of the county government which includes the issuance process, management of the debt portfolio, and adherence to various laws and regulations governing debt contracting and management. It guides the county on the amount, type of borrowing to undertake over the medium term and evaluates the costs and risks of various scenarios and recommends an optimal strategy for implementation. The strategy ensures fiscal prudence in management of county resources to ensure debt is sustainable and is met at the lowest possible cost and with a prudent degree of risk while ensuring that the overall level of public debt is sustainable.
In the medium term, the county will enhance the resource mobilization strategies both internally and externally to fund the development programmes and priorities envisaged in CIDP III. To fund the government priorities in the medium term, the county will seek strategic partnerships to meet the fiscal gap in the implementation of the CIDP and strategic intervention. Key strategy is mobilizing additional resources above the national government transfers and the county own revenue mobilization. Additionally, the government will continuously manage its cash flow through short term lending from commercial banks to offset delays in equitable share disbursements and own source revenue mobilization.
The Medium-Term Debt Management Strategy is consistent with the broad strategic priorities and policy goals set out in the County Fiscal Strategy Paper (CFSP), 2023. The strategies are set on the background of recovery from post COVID-19 pandemic and in the advent of new county administration.