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Government to tie funding and rewards to performance results - Owalo

He said the reward management framework will link recognition and incentives directly to performance outcomes.

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by RINAH JOYCE APOFIA

News21 May 2025 - 09:28
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In Summary


  • Owalo emphasised that all performance contracts for the 2025/2026 financial year must be signed by July 1, 2025.
  • These contracts will cascade down from top leadership to individual staff through detailed scorecards to ensure accountability at all levels.

Deputy Chief of Staff for Performance Delivery Services in the Executive Office of the President, Eliud Owalo.

To transform public service delivery, the government will now link funding and rewards to performance outcomes, Deputy Chief of Staff in charge of Performance and Delivery Management at the Executive Office of the President, Eliud Owalo, has said.

Speaking during a ministerial performance review retreat in Nanyuki, Owalo unveiled a robust performance-based management framework that will require government institutions to deliver tangible results aligned with their mandates.

“Government organisations will now be required to demonstrate tangible results in line with their mandates,” Owalo declared.

The forum was organised by the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSMEs).

He said the reward management framework will link recognition and incentives directly to performance outcomes, further encouraging a results-oriented culture in the public sector.

“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,” he said.

Owalo said the retreat was the 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 emphasised that all performance contracts for the 2025/2026 financial year must be signed by July 1, 2025.

These contracts will cascade down from top leadership to individual staff through detailed scorecards to ensure accountability at all levels.

He 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.

Owalo emphasized the critical role of midterm reviews in the implementation of five-year strategic plans.

 “These reviews are essential for helping ministries refine priorities, recalibrate strategies, and ensure high-impact delivery over the remaining two and a half years of the current planning cycle,” he noted.

He further called for greater public engagement and transparency.

He urged Cabinet and Principal Secretaries to hold quarterly updates to inform citizens about progress and challenges.

“Public trust is earned through consistent, honest communication,” he said.

Cabinet Secretary for Cooperatives, Wycliffe Oparanya, called on all departments and agencies to complete their strategic plans and service charters by June 30, 2024.

 He revealed that six focus areas had been identified—three in MSMEs and three in cooperatives.

Oparanya also reaffirmed the government’s commitment to coffee sector reforms.

“Coffee is our gold. Reviving this sector is central to Kenya’s economic recovery,” he said.

The Coffee Act is currently under review, alongside proposed amendments to the Cooperatives Act now before the Senate.

The new approach mandates that all government initiatives be time-bound, measurable, and assigned to specific accountable units.

Owalo insisted that strategic plans must align with key national and continental frameworks, including the Bottom-Up Economic Transformation Agenda (BETA), MTP IV, Kenya Vision 2030, EAC Vision 2050, and AU Agenda 2063.

To eliminate duplication and inefficiencies, Owalo announced the institutionalization of Service Level Agreements (SLAs) between government entities that share responsibilities.

He also encouraged institutions to be proactive in resource mobilization.

 “Use your strategic plans to pitch to development partners and investors. Don’t depend entirely on Treasury allocations,” he advised.

He concluded by reminding ministries of their role in delivering on President William Ruto’s pre-election service charters signed with all 47 counties.

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