The Kenyan government has unveiled a new funding model aimed at improving the efficiency and accountability of Ministries, Departments, and Agencies (MDAs). The Deputy Chief of Staff for Performance and Delivery Management in the Executive Office of the President, Eliud Owalo, announced that ministerial funding will now be tied directly to the performance of these entities. Under this new system, organizations that contribute significantly to the national development agenda will see an increase in their funding, while underperforming entities may risk being phased out.
Owalo emphasized that the new approach will reward organizations that demonstrate value in advancing the government’s development goals, while discouraging those that drain public resources without delivering results. “We are not going to have organizations that are perpetually underperforming continue to be a drain on the exchequer,” Owalo stated, underscoring the need for state agencies to become more self-sufficient and reduce their dependence on government funding.
The government has made it clear that this shift is designed to encourage innovation and more responsible fiscal management across MDAs. Owalo further stressed the importance of building independent revenue streams for these agencies, thereby reducing the strain on the national budget.
In line with this, the National Water Harvesting and Storage Authority (NWHSA), which faces significant funding challenges, has been evaluated against its performance metrics. The NWHSA has had to grapple with budgetary constraints, prolonged project timelines, and limited fiscal space. Despite these obstacles, the agency continues to work towards addressing Kenya’s chronic water scarcity, a challenge faced by much of the country due to its classification as predominantly arid or semi-arid.
To tackle these challenges, the NWHSA has outlined an ambitious 2023-2027 Strategic Plan, which aims to increase national water storage by 125 million cubic meters. The plan includes the construction of major dams such as the Siyoi Muruny Dam and Soin Koru Dam, as well as projects like household rainwater harvesting to benefit 100,000 homes. These efforts align with Kenya’s Vision 2030, focusing on enhancing water security and boosting food production through irrigation.
With a target to increase water coverage from 60% to 80% by 2027, the government’s new performance-based funding system aims to ensure that resources are directed towards projects that demonstrate tangible benefits for the nation. The success of this initiative will depend on the ability of MDAs to meet their targets and contribute to the broader development objectives outlined in the government’s plans.
