Eliud Owalo, who serves as the Deputy Chief of Staff in the Office of the President, has declared major alterations to how the government allocates funds to ministries, departments, and agencies (MDAs).
During the performance review of the National Water Harvesting and Storage Authority (NWHSA) on Tuesday, Owalo disclosed that the government will assess the MDA’s performance and allocate funds based on that assessment in the future.
Owalo stated, “Going forward, we will connect performance management and evaluation with reward management to ensure that organizations contributing more to the government’s development agenda receive larger financial allocations.”
“As a government, we are choosing not to allow organizations that consistently underperform to keep draining the public purse.” These organizations should be permitted to die naturally.”
This tactic is anticipated to inspire the MDAs’ management to enhance their performance in order to receive improved funding and to eliminate those who do not meet performance standards.
Owalo stated that among state agencies, self-sufficiency and innovation are of the utmost importance. He, thus, encouraged the MDAs to create independent sources of revenue instead of depending exclusively on the exchequer.
The government announced the merger and dissolution of several state corporations due to redundancy just two weeks before this development.
In a bid to boost operational efficiency, President William Ruto’s cabinet approved the merging of 42 parastatals into 20.
Other than this corporation, there were nine other state corporations that were designated for dissolution. The merger did not impact those already recommended for privatization.
This came after the Ministry of National Treasury assessed 271 State Corporations.
The move faced opposition, as some Members of Parliament from the North Eastern region have already opposed the dissolution of one of the parastatals.
