Nairobi — Deputy Chief of Staff in the Executive Office of President, Eliud Owalo has proposed a performance-based management model that links government funding and rewards directly to results.
Under the new framework, high-performing institutions will receive increased budgets, while under-performers face sanctions.
"Government organizations will now be required to demonstrate tangible results in line with their mandates," Owalo declared. "A reward and sanction regime will be introduced to incentivize high-performing institutions; those that excel will receive increased budget allocations, while underperformers will face sanctions," he stated.
Speaking at a ministerial retreat in Nanyuki, Owalo emphasized the need for strategic planning, midterm reviews, and strict accountability, with performance contracts to be signed by July 1, 2025.
Keep up with the latest headlines on WhatsApp | LinkedIn
He also called for stronger inter-agency coordination through Service Level Agreements and urged ministries to use their strategic plans to mobilize resources beyond Treasury allocations.
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.
Cooperatives Cabinet Secretary Wycliffe Oparanya, echoed these sentiments, highlighting the importance of prioritization 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.
The CS added that 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," Oparanya stated.
