The Kenyan government is set to revolutionize its funding strategy for ministries, departments, and agencies (MDAs) by linking financial allocations to performance.
Eliud Owalo, Deputy Chief of Staff in the Office of the President, announced the policy change during a performance evaluation of the National Water Harvesting and Storage Authority (NWHSA) on Tuesday.
“Going forward, we will tie performance management to reward systems, allocating more funds to organizations that add value to the government’s development agenda,” said Owalo.
He emphasized that perpetual underperformance would no longer be tolerated, suggesting that underachieving agencies should “die natural deaths.”
The move is expected to incentivize MDAs to innovate and deliver better results. Owalo urged agencies to develop independent revenue streams instead of relying solely on the national treasury.
This announcement follows the recent government decision to merge and dissolve 42 parastatals to enhance operational efficiency.
Nine state corporations were marked for dissolution, though privatization efforts remained unaffected.
However, not everyone supports the changes. The Pastoralists Parliamentary Group (PPG) has voiced concerns over the proposed dissolution of the National Council for Nomadic Education in Kenya (NACONEK).
They argue that it plays a crucial role in advancing education for marginalized communities in arid regions.
