Nanyuki – In a decisive push to reform Kenya’s public service, the government is introducing a new policy that will tie funding and rewards directly to the performance of state institutions.
Deputy Chief of Staff Eliud Owalo unveiled the plan during a high-level retreat of government ministers in Nanyuki, describing it as a “reward and sanction regime” aimed at improving accountability across ministries, departments, and agencies.
“Government organisations will now be required to demonstrate tangible results in line with their mandates,” Owalo said. “Those that perform will be rewarded with larger budgets. Those that don’t will face consequences.”
The approach marks a sharp shift from past practices, where funding was often distributed without close scrutiny of impact or outcomes. Under the new model, performance contracts will become mandatory and are to be signed by 1 July 2025.
A New Era of Accountability
The changes are part of a broader move by President William Ruto’s administration to anchor public service in measurable delivery. Strategic plans, once viewed as bureaucratic formalities, will now become tools for resource mobilisation, both from the Treasury and beyond.
Owalo emphasized the importance of coordination between agencies, proposing Service Level Agreements to clarify roles and streamline collaboration. He said all plans must be aligned with key national and regional goals including the Bottom-Up Economic Transformation Agenda (BETA), Kenya Vision 2030, the Fourth Medium-Term Plan, the East Africa Community Vision 2050, and the African Union’s Agenda 2063.
This alignment, he noted, would ensure coherence in execution while giving Kenya a competitive edge in regional development.
“We Must Leave a Mark”
Cooperatives Cabinet Secretary Wycliffe Oparanya backed the plan, urging ministries to act quickly to finalise strategic frameworks. All departments, he said, must submit their plans and service charters by the end of June.
“We must leave a mark,” Oparanya told officials. “We’ve selected six key focus areas three under MSMEs and three in cooperatives that will guide our priorities for the remaining two and a half years.”
A cornerstone of this strategy is reforming the coffee sector, which Oparanya called “our gold and a pillar of economic recovery.”
He confirmed that the Coffee Act is under review, and that changes to the Cooperatives Act are already before the Senate.
“All MDAs are now expected to operate with time-bound, measurable targets,” he said. “Every initiative will have a responsible unit and a clear deadline.”
Experts Cautiously Optimistic
Analysts have praised the plan’s intent but warned that implementation will be the real test.
“Performance-based budgeting can work, but only with consistent oversight and political will,” said economist Sheila Mweni, speaking to the media. “There’s also a risk of institutions gaming the system unless independent reviews are part of the process.”
Critics have also called for clarity on what constitutes “performance” and how results will be fairly assessed across vastly different sectors and functions.
Still, for a government under pressure to deliver, the message is clear: results matter and from now on, they’ll have a price.
