NANYUKI, Kenya — The government is rolling out a stringent performance-based management system that ties funding and rewards directly to the delivery of tangible results, Deputy Chief of Staff Eliud Owalo has announced.
Speaking at a ministerial performance review retreat in Nanyuki, Owalo unveiled a new framework that will hold government institutions accountable by requiring measurable outcomes aligned with their mandates.
“Government organisations will now be required to demonstrate tangible results in line with their mandates,” Owalo declared, emphasizing that this approach will foster a culture of accountability and effectiveness across the public sector.
The initiative, organised by the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs), introduces a reward and sanction regime designed to incentivize high-performing entities while penalizing underperformers.
“Those institutions that excel will receive increased budget allocations, while those that fail to meet expectations will face sanctions,” Owalo said.
Highlighting the significance of the retreat, Owalo noted, “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.”
Under the new system, all performance contracts for the 2025/2026 financial year must be signed by July 1, cascading from top leadership down to individual staff through detailed scorecards.
This is intended to ensure accountability at every level of government.
Owalo stressed the importance of strategic planning in navigating Kenya’s complex economic landscape.
“Without a strategic plan, you’re leaving everything to chance and are likely to fail,” he warned.
He also underscored the critical role of midterm reviews of five-year strategic plans, explaining that such reviews help ministries adjust priorities and strategies to maximize impact.
To strengthen transparency and public trust, Owalo urged Cabinet and Principal Secretaries to provide quarterly updates on progress and challenges.
“Public trust is earned through consistent, honest communication,” he said.
Meanwhile, Cabinet Secretary for Cooperatives, Wycliffe Oparanya, called on all government departments and agencies to complete their strategic plans and service charters by June 30, 2024.
He highlighted six priority areas across MSMEs and cooperatives, reaffirming the government’s commitment to reforms in the coffee sector.
“Coffee is our gold. Reviving this sector is central to Kenya’s economic recovery,” Oparanya remarked.
He noted ongoing legislative efforts, including reviews of the Coffee Act and the Cooperatives Act amendments currently before the Senate.
Owalo emphasized that all government initiatives must be time-bound, measurable, and assigned to accountable units.
Furthermore, strategic plans must align with national and regional frameworks such as the Bottom-Up Economic Transformation Agenda (BETA), the Medium-Term Plan IV, Kenya Vision 2030, the East African Community Vision 2050, and the African Union Agenda 2063.
To reduce duplication and boost efficiency, Owalo announced the formalisation of Service Level Agreements (SLAs) between government entities sharing responsibilities.
He also encouraged proactive resource mobilization, urging ministries to use their strategic plans to attract development partners and investors rather than relying solely on Treasury allocations.
Additionally, Owalo reminded government agencies of their role in delivering on President William Ruto’s pre-election service charters signed with all 47 counties, reinforcing the administration’s commitment to transforming public service delivery across Kenya.



