Laikipia Gets Nod To Borrow For Transformational Projects
Updated on: Mar 01, 2021
Laikipia county has achieved another milestone in its effort to go to the market to raise fund from private sector to finance its ambitious transformational projects.
This is after the borrowing framework wasagreed during the recent held Intergovernmental Budget and Economic Council (IBEC).
The framework will set the guidelines and borrowing headroom of approximately Ksh 60 B available to the counties.
In addition to this, Laikipia has received a greenlight on its credit rating. The Launch of 2020 county government of Laikipia credit rating report on February 22 by GCR Rating affirmed that the countys books are clean and have a good credit worthiness.
Credit rating is an objective analysis of an institutions credit worthiness which demonstrates the ability and willingness of the government or any institution to fulfill its financial obligations fully and on time.
This will give prospective investors confidence that Laikipia will be able to honor its commitment to them. Laikipia has been banking on the transparency of its financial management as the better practice that will showcase the county as having better utilization of the public funds.
The citizens are able to analyse the spending of the monies allocated to the county. The county targets to raise Ksh 1.4 B by April for the transformative projects. The projects embarked for the fund include water for production, smart town initiative, feedlot, roads among others.
Public Financial Management Act (PFMA) allows the counties to borrow up to 20% of their total revenue. Basing the 2019/20 financial year, the budget for Laikipia was 7.1 B hence it will be borrowing the 1.4 B. This will avail more funds to the county to meet its obligations and achieve its development agenda set out by the government. On the same. The county is expected to receive
more funds as the national government increase the equitable allocation to the counties.
The coming financial year, the counties are expected to receive a total of 409 B. this will be the first time the allocation has hit the
400B mark. Ksh 370 B will be from equitable share while an additional 50 B will be conditional grants.
This is after the borrowing framework wasagreed during the recent held Intergovernmental Budget and Economic Council (IBEC).
The framework will set the guidelines and borrowing headroom of approximately Ksh 60 B available to the counties.
In addition to this, Laikipia has received a greenlight on its credit rating. The Launch of 2020 county government of Laikipia credit rating report on February 22 by GCR Rating affirmed that the countys books are clean and have a good credit worthiness.
Credit rating is an objective analysis of an institutions credit worthiness which demonstrates the ability and willingness of the government or any institution to fulfill its financial obligations fully and on time.
This will give prospective investors confidence that Laikipia will be able to honor its commitment to them. Laikipia has been banking on the transparency of its financial management as the better practice that will showcase the county as having better utilization of the public funds.
The citizens are able to analyse the spending of the monies allocated to the county. The county targets to raise Ksh 1.4 B by April for the transformative projects. The projects embarked for the fund include water for production, smart town initiative, feedlot, roads among others.
Public Financial Management Act (PFMA) allows the counties to borrow up to 20% of their total revenue. Basing the 2019/20 financial year, the budget for Laikipia was 7.1 B hence it will be borrowing the 1.4 B. This will avail more funds to the county to meet its obligations and achieve its development agenda set out by the government. On the same. The county is expected to receive
more funds as the national government increase the equitable allocation to the counties.
The coming financial year, the counties are expected to receive a total of 409 B. this will be the first time the allocation has hit the
400B mark. Ksh 370 B will be from equitable share while an additional 50 B will be conditional grants.
