NAIROBI, Kenya – The government is set to overhaul its funding model for Ministries, Departments, and Agencies (MDAs), linking financial allocation to performance in a bid to drive national development.
Deputy Chief of Staff for Performance and Delivery Management, Eliud Owalo, announced the shift on Wednesday, warning that underperforming entities will no longer be sustained at the expense of taxpayers.
“Moving forward, we are going to tie performance management and performance evaluation to reward management so that we allocate more money to organizations that add more value to the government’s development agenda,” Owalo stated.
He emphasized that non-performing agencies would not be bailed out indefinitely, urging them to innovate and generate independent revenue streams rather than relying solely on the exchequer.
“The direction we are taking as a government is that we are not going to have organizations that are perpetually underperforming continue to be a drain on the exchequer. These organizations should be allowed to die their natural deaths,” he added.
Owalo made these remarks during a performance contract evaluation for the National Water Harvesting and Storage Authority (NWHSA) for the 2023/2024 fiscal year.
The meeting also highlighted Kenya’s persistent water scarcity issues, with Owalo calling for increased investment in irrigation through rainwater harvesting and storage.
He noted that the country cannot continue relying solely on rain-fed agriculture amid climate change uncertainties.
NWHSA Board Chairperson Symon Kimaru acknowledged financial constraints and prolonged project timelines as key barriers to the agency’s performance, stating that budgetary limitations have made it difficult to launch new projects.
The evaluation process will assess NWHSA’s performance based on several indicators, including financial stewardship, service delivery, flood control measures, and dam construction progress.
Kenya, where 80% of the land is classified as arid or semi-arid, faces a dire water crisis, with per capita water availability standing at 450 cubic meters—well below the global benchmark of 1,000 cubic meters.
The National Water Master Plan projects a 47% surge in demand by 2030, further straining resources.
To address these challenges, NWHSA’s 2023-2027 Strategic Plan aims to expand national water storage by 125 million cubic meters through major projects, including the Siyoi Muruny, Soin Koru, Bosto, Umaa, and Badasa dams.
The authority also plans to construct 360 small dams and pans, drill 203 boreholes, and expand flood control infrastructure.
So far, completed projects such as Maruba Dam in Machakos, Sasumua Dam serving Nairobi, and Kiserian Dam in Kajiado have contributed to increasing Kenya’s water storage capacity.
Upcoming projects across several counties, including West Pokot, Kisumu, Kitui, and Marsabit, align with Vision 2030 goals to ensure sustainable water supply for domestic, industrial, and agricultural use.
The government aims to raise water coverage from 60% to 80% by 2027, underscoring the urgency of efficient resource management amid growing demand and climate-related pressures.
