The government has introduced a new funding system aimed at enhancing ministerial funding. Eliud Owalo, the Deputy Chief of Staff for Performance and Delivery Management in the Executive Office of the President, made the announcement in a statement on Wednesday.
Owalo explained that Ministries, Departments, and Agencies (MDAs) that make significant contributions to the national development agenda will receive increased funding, while underperforming entities may face being phased out. He emphasized that the government plans to tie performance management and evaluation to reward management, ensuring that organizations that add more value to the government’s development agenda are allocated more resources.
Speaking during a performance contract evaluation for the 2023/2024 fiscal year at the National Water Harvesting and Storage Authority (NWHSA), Owalo stated that the new outlook would not favor underperforming entities. He noted that such organizations waste significant public resources. “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 also highlighted the importance of innovation and self-sufficiency for state agencies. He urged them to develop independent revenue streams instead of relying solely on government funding. Additionally, he stressed the need for investment in irrigation by harvesting excess rainwater and storing it for future use, pointing out that the nation cannot rely on rain-fed agriculture alone.
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Symon Kimaru, the NWHSA Board Chairperson, acknowledged that financial constraints, prolonged project timelines, and limited fiscal space were major challenges affecting their performance.
The performance evaluation will assess NWHSA’s performance against key indicators, including financial stewardship, fund absorption, service delivery, dam construction and supervision, flood control measures, and water supply enhancement.
By Our Reporter.
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