Deputy Chief of Staff Eliud Owalo has proposed a performance-based management approach that will tie funding and rewards directly to results arguing that the framework will link recognition and incentives directly to performance outcomes, further encouraging a results-oriented culture in the public sector.
“Government organisations will now be required to demonstrate tangible results in line with their mandates,” Owalo said. “A reward and sanction regime will be introduced to incentivise high-performing institutions; those that excel will receive increased budget allocations, while underperformers will face sanctions.”
Owalo made the remarks during a ministerial performance review retreat in Nanyuki, organised by the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs).
Owalo said the retreat was a first of its kind and should be a turning point in how the government evaluates its own performance.
“This is the first time I have seen a Cabinet Secretary convene a working session focused squarely on delivery. I hope this sets the pace for other ministries,” he said.
Owalo said that the next round of performance contracts covering the 2025/2026 financial year should be signed by July 1, 2025, and must align with each institution’s annual work plan. These contracts will cascade down to individual scorecards, ensuring that accountability is embedded at every level of government.
Owalo underscored the importance of strategic planning in navigating a complex economic and policy environment.
“You must have a strategic plan to give you the roadmap to survive in a turbulent environment. Without it, you’re leaving everything to chance and are likely to fail,” he warned.
Cabinet Secretary for Cooperatives, Wycliffe Oparanya, echoed these sentiments, highlighting the importance of prioritisation in the remaining two and a half years of the Kenya Kwanza administration.
“All departments and agencies must finalize their strategic plans and service charters before June 30, 2024. We must leave a mark. We have selected six key focus areas – three in MSMEs and three in cooperatives,” Oparanya said.
Oparanya said a major focus will be reforming the coffee sector, which he described as “our gold and a pillar of economic recovery.” He confirmed that the Coffee Act is undergoing review, alongside ongoing amendments to the Cooperatives Act, currently before the Senate.
All ministries, departments, and agencies (MDAs) are now expected to operate with time-bound, measurable targets. Every initiative will be anchored to a responsible unit and executed within clear timelines.
Owalo said all strategic plans must align with broader frameworks such as the Bottom-Up Economic Transformation Agenda (BETA), the Fourth Medium-Term Plan (MTP IV), Kenya Vision 2030, the East Africa Community Vision 2050, and the African Union Agenda 2063.
To further strengthen inter-agency coordination, Owalo announced plans to institutionalise Service Level Agreements (SLAs) between government entities that share operational responsibilities. “SLAs will reduce inefficiencies caused by disjointed operations and introduce a clear framework for accountability,” he said.
Recognising the financial constraints facing many MDAs, Owalo challenged institutions to leverage their strategic plans as tools for resource mobilisation.
“Use your plans to attract funding from partners and investors. Be creative. Don’t rely solely on the National Treasury,” he urged.
Owalo also called for enhanced communication and stakeholder engagement and encouraged Cabinet Secretaries and Principal Secretaries to hold quarterly forums to update the public on progress, challenges, and future plans.
“Transparency builds trust. You must communicate consistently to maintain public confidence,” he added.
Owalo reminded ministries of their role in fulfilling the commitments made by President William Ruto, who signed service charters with all 47 counties ahead of the August 2022 general elections. “You have an obligation to help the President deliver on those charters,” he said.
