REPUBLIC OF KENYA

EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF THE PRIME CABINET SECRETARY
STATE DEPARTMENT FOR PERFORMANCE AND DELIVERY
MANAGEMENT

PUBLIC SERVICE PERFORMANCE MANAGEMENT UNIT

PERFORMANCE CONTRACTING GUIDELINES FOR THE FY

2023/2024
(20TH CYCLE)

APRIL, 2023
 TABLE OF CONTENTS

LIST OF ABBREVIATIONS ............................................................................................ ii

1. Preamble ................................................................................................................ 1

2. Purpose of the Performance Contracting Guidelines ................................................ 2

3. Roles and Responsibilities of Key Players in Performance Contracting ........... 3

4. Key Elements of the Model Performance Contract ............................................ 7

5. Performance Contracting Cycle and Timelines ........................................................ 10

5.1 Review of Performance Contracting Guidelines ...................................................................... 11
5.2 Pre- Negotiation Consultations and Negotiations .................................................................... 15
5.3 Vetting of Performance Contracts ............................................................................................ 16
5.4 Signatories to the Performance Contracts ............................................................................... 17
5.5 Implementation of Performance Contracts ............................................................................. 20
5.6 Performance Monitoring and Reporting .................................................................................. 20
5.7 Annual Performance Evaluation .............................................................................................. 24

Annex I: Annual Performance Contracting Cycle .................................................. 27

Annex II: Parties to the Negotiations and Vetting of Performance Contracts ................ 28

Annex III: Performance Evaluation Methodology ........................................................ 31

Annex IV: Definition of Key Terms.............................................................................. 37

Annex V: Model Performance Contract and Matrices ................................................... 40

Annex VI: Description of Performance Indicators ........................................................ 51

Annex VII: Format for the Citizens’ Service Delivery Charter ....................................... 71

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 LIST OF ABBREVIATIONS

BeTA Bottom-up Economic Transformation Agenda

BoD Board of Directors
BoM Board of Management
CAJ Commission on Administrative Justice
CEO Chief Executive Officer
COMESA Common Market for Eastern and Southern Africa
CS Cabinet Secretary
EAC East African Community
ERP Enterprise Resource Planning
FY Financial Year
GoK Government of Kenya
GPCIS Government Performance Contracting Information System
MDAs Ministries, Departments and Agencies
MTP Medium Term Plan
NACOSTI National Commission for Science, Technology and Innovation
NTSA National Transport and Safety Authority
PC Performance Contract
PPRA Public Procurement Regulatory Authority
PAS Principal Administrative Secretary
PS Principal Secretary
PSPMU Public Service Performance Management Unit
RSTI Research, Science, Technology and Innovation
SDGs Sustainable Development Goals
SPS Sector Performance Standards
STI Science, Technology and Innovation

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PART ONE: PERFORMANCE CONTRACTING GUIDELINES FOR FY.
2023/24

1. Preamble

In its endeavour to improve service delivery, the Government continues to use

Performance Contracting as a key accountability tool. Performance Contracting is part of
the broader public sector reforms aimed at improving efficiency and effectiveness in the
management of the Public Service.

As part of the initiatives to ensure an efficient Public Service through Performance

Management, the Government is re-engineering Performance Contracting.

To leverage service delivery on information communication technology, the Office of the

Prime Cabinet Secretary will continue to automate the Performance Contracting process
through the Government Performance Contracting Information System (GPCIS). The
System has been in use since the FY. 2020/21 and will be applied for the fourth year to
develop the FY. 2023/24 Performance Contracts for all eligible Ministries, Departments
and Agencies (MDAs). The System comprises a negotiation module, vetting module,
monitoring & reporting and performance evaluation modules. The modules are fully linked
to provide for a logical flow of the Performance Contracting process from target setting
to annual performance evaluation.

In addition to preparing the System for effective transition to the next contract period
(FY. 2023/24), the priority is to enhance it by designing and developing a management
reports module for various categories of MDAs. The final design architecture of the GPCIS
will have the potential for analysis of various types of data and generation of relevant
management reports. It is expected that ultimately, an integration Application
Programming Interface (API) will be developed to facilitate integration of the GPCIS with
other Government Information Systems. In the long run, all Lead and Specialised
Agencies will also be integrated into the System for full automation of the processes,

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where all operations will be carried out online on one platform for rapid decision making.

The Performance Contracting Guidelines have been reviewed to take into account the on-
going initiatives to re-engineer and improve Performance Management through
Performance Contracting as the Commitment for Results (CFR) Framework and to align
it to the GPCIS. The priorities of the Government have also been provided for through
inclusion of specific performance indicators and classification of the core priority areas
under the Core Mandate performance criterion. MDAs will be required to apply the
Performance Contracting Guidelines to identify and implement performance indicators
and specific targets under the five key priority areas of: bringing down the cost of living;
eradicating hunger; job creation; expanding the tax revenue base; and improving the
foreign exchange balance.

Constitutional Commissions and Independent Offices are encouraged to undertake

Performance Management as a good governance practice. In addition, Cabinet
Secretaries (CSs) and Chairpersons of Constitutional Commissions and Independent
Offices are required to publish and disseminate the results of the annual performance
evaluation to the stakeholders and citizens, as envisaged by the Constitution of Kenya,
2010 and reinforced by the Public Service Commission (Performance Management)
Regulations, 2021.

2. Purpose of the Performance Contracting Guidelines

The purpose of the Performance Contracting Guidelines is to support MDAs,

Constitutional Commissions and Independent Offices in: - identification of their
performance indicators and annual targets; undertaking negotiations, and
implementation of the Performance Contracts (PCs). The Guidelines are also
intended to support Public Service Performance Management Unit (PSPMU) in
vetting of the negotiated PCs in order to ensure standardization in application of
the Performance Contracting process in the development of the PCs.

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A Model PC and Matrices for each category of public institutions form part of
these Guidelines and are provided in Annexes V(A) and V(B) respectively. To
ensure standardization, the structure of the model PC and the matrix should not
be amended.

3. Roles and Responsibilities of Key Players in Performance Contracting

The roles and responsibilities of key players have clearly been identified to
facilitate effective undertaking of the various Performance Contracting
processes:

a) Cabinet Secretary

The Cabinet Secretary has overall responsibility for negotiations and

implementation of the Performance Contracts of the Ministry and its State
Corporations, including monitoring & evaluation of performance.

b) Principal Secretary/Comptroller of State House/Solicitor General

Their role is to identify performance targets and negotiate the PCs for the State
Department/Office and its Agencies in consultation with the CS. They are also
responsible for overseeing the cascading of the performance targets, monitoring
& reporting and annual performance evaluation.

c) Chairpersons of Constitutional Commissions, Independent Offices,

State Corporations and Tertiary Institutions

They provide oversight to the Performance Contracting process in their

respective institutions including negotiations, vetting, performance monitoring &
reporting and annual performance evaluation.

d) Principal Secretary, State Department for Performance and Delivery

Management

Provide any support sought by MDAs in complying with the Performance

Contracting Guidelines in order to ensure seamless development and
implementation of the PCs.

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e) Secretary/Chief Executive Officer of State Corporations

Identify performance indicators and targets and negotiate the PC for the State
Corporation in consultation with the Board of Directors. The Secretary/Chief
Executive Officer (CEO) is also responsible for overseeing cascading of the PC
targets, monitoring & reporting and annual performance evaluation.

f) Principal Administrative Secretary, Public Service Performance

Management Unit

The Principal Administrative Secretary (PAS) is responsible for the development

of Performance Contracting Guidelines, capacity building and technical support
to MDAs, vetting (quality assurance) of negotiated PCs to ensure compliance
with the Guidelines and the custodian of the vetted PCs. PAS also has the
responsibility of undertaking quarterly performance monitoring for Ministries,
mid-year performance review, annual performance evaluation including
compiling the annual performance evaluation report and coordinating
communication of the performance evaluation results to MDAs. In addition, PAS
provides technical support and capacity building on Performance Management
to County Governments, Constitutional Commissions and Independent Offices
upon request.

g) Lead Agencies

Receive quarterly performance reports, analyze them and provide feedback to the
respective MDAs within 15 days from the date of receipt. The Lead Agencies should as
much as practicable undertake physical verification of the achievements in order to
ensure credibility of the reports.

h) Specialized Agencies

Develop relevant performance indicators and sub-indicators for implementation by

MDAs, receive quarterly performance reports on the relevant performance indicator(s),
analyze them and provide feedback within 15 days from the date of receipt, provide

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technical support to MDAs in implementation of the relevant performance indicator(s)
including capacity building, assess the annual performance of MDAs and communicate
the results to each MDA. In addition, the Specialized Agencies are required to submit a
complete list of scores, in the prescribed format for all MDAs placed on Performance
Contract to PSPMU not later than 15th July each year.

NB: Specialized Agencies should not transfer any attendant costs of

implementing specific performance indicators (capacity building,
sensitizations, awareness creation, audits etc.) that they superintend to MDAs,
as agreed upon during the Stakeholders’ Forum on Review of the Performance
Contracting Guidelines.

i) Performance Contract Coordinators

Coordinate identification of performance indicators, sub-indicators & targets and the

development of draft PCs in line with priorities of their respective institutions and the
Performance Contracting Guidelines. They are also responsible for providing mandatory
documents to support development of the PCs and facilitating keying in relevant
information in the GPCIS. In addition, PC Coordinators are required to compile evidence
to support reported achievements, facilitate quarterly performance monitoring &
reporting and coordinate the annual performance evaluation.

j) Ministerial Performance Management Committee

The functions and membership of the Ministerial Performance Management Committee

(MPMC) as provided in the Public Service Commission Delegation Instrument, July 2018
are as follows:

i) Undertake quarterly review of implementation of Strategic Plans and Performance

Contracts;
ii) Ensure linkage between Institutional Performance Contract and Staff Performance
Appraisal System;

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 iii) Ensure that the overall assessment of employee performance is within the
context of institutional performance as evaluated through Staff Performance
Appraisal System;
iv) Ensure that the performance of all officers is evaluated and feedback on
performance is relayed in writing at the end of the year;
v) Hold quarterly performance review meetings;
vi) Consider performance reports from various Departments within the Ministry and
make recommendations for improvement;
vii) Review cases of appeals on appraisal ratings between supervisors and appraisees;
viii) Make recommendations to the Authorized Officer on the application of rewards or
sanctions;
ix) Develop and implement the internal monitoring and evaluation and reporting
system; and
x) Ensure that the integrity and credibility of the overall process of rewards and
sanctions system is safeguarded and maintained at all times.

The MPMC should consist of the following members:

i) Principal Secretary - Chairperson
ii) Directors of Technical Departments
iii) Director of Administration
iv) Head of Central Planning and Project Monitoring Unit
v) Director of Human Resource Management and Development – Secretary

k) Performance Contracting Committee

The functions of the Performance Contracting Committee as provided in the Public

Service Commission (Performance Management) Regulations, 2021 are as follows:
i) Coordinate the Performance Contracting process for the public body;
ii) Coordinate the achievement of the public body’s performance targets;
iii) Monitor and evaluate public body’s annual performance; and
iv) Prepare the public body’s performance reports.

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4. Key Elements of the Model Performance Contract

The standard structure of the Performance Contract is provided in Annexes

V(A) and V(B) on Model PC and Matrices.

The structure of the PC has already been incorporated in the design of the
GPCIS. Therefore, all standard text and data that applies across all MDAs is
already part of the database and need not be keyed in when developing the PC
using the PC Preparation Module in the GPCIS. For effective application of the
Guidelines in developing the PC or for any other relevant processes, the
Guidelines should always be read and applied together with the relevant User
Guides uploaded in the GPCIS.

The following is an explanation of the key elements of the Model Performance

Contract for which MDAs are required to provide relevant information in the
GPCIS to develop the PCs for online submission to facilitate negotiations:

(a) Statement of Responsibility

This is a formal statement of commitment to performance made to the

appointing authority and the public at large.

(b) Vision Statement, Mission Statement and Strategic Objectives

This part defines the desired future positioning of the MDA. It states the purpose
of existence of the MDA and is derived from its mandate. The Vision Statement,
Mission Statement and Strategic Objectives should be drawn from the Strategic
Plan of the MDA. As much as is practicable, the Strategic Objectives should range
from three to six in order to adequately address all relevant aspects of the
mandate and at the same time avoid duplication.

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(c) Statement of Strategic Intent

The Statement of Strategic Intent reiterates the “Whole-of-Government

Approach” (Linked-up Performance), establish the linkage to the National Vision
and identify the broad organizational priorities. The strategic intents are
important in the broader scheme of national socio-economic development
because they aim at ensuring that support mechanisms are in place and are
operating efficiently and effectively at all times.

(d) Commitments and Obligations of the Government

These refer to any support that is extended to MDAs by any other public agency
to facilitate achievement of the performance targets. The commitments and
obligations are guided by the following criteria:

i) Commitments of Government are largely facilitative and should therefore

not feature where mechanisms to address them already exist;

ii) The support should be relevant and related to fulfilling the agreed
performance targets;

iii) The nature, extent and the timing of any obligation on the part of
Government should be specific, measurable and agreed upon;

iv) The required support should NOT include exemption from the existing
legal provisions;

v) Any support related to social obligations should not be included unless they
have been d i r e c t e d by the Government. In this regard, any required
support arising from voluntary actions by MDAs in the interest of good
industrial or neighbourhood relations (Corporate Social Responsibility) does
not qualify for inclusion;

vi) MDAs should ensure that annual targets for the identified performance
indicators under Core Mandate are based on the FY. 2023/24 approved

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 budget. In instances where a commitment may require additional
exchequer funding or the intervention of another public agency,
concurrence of The National Treasury and Economic Planning or the
agency must be obtained before committing the Government; and

vii) The Annual Performance Evaluation Report will document status of the
extent to which non-fulfilment of commitments and obligations made by
the Government to MDAs may have affected performance.

(e) Assignment of Weights for Performance Criteria and Performance

Indicators

The weights for various Performance Criteria should be applied as assigned here
below:
Performance Criteria Weight (%)
Financial Stewardship 10

Service Delivery 15

Core Mandate 65

Implementation of Presidential Directives 2

Affirmative Action in Procurement 4

Cross-Cutting 4
Total 100

MDAs should note the following:

i) The performance criteria sub-weights have been pre-set and already
incorporated in the GPCIS. In addition, the weights for performance indicators
under Financial Stewardship, Service Delivery, Implementation of Presidential
Directives, Affirmative Action in Procurement, Cross-Cutting criteria have
been pre-set and incorporated in the GPCIS;
ii) In the Core Mandate criterion, the balance of the sub-weight (after factoring

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 the sum total of the weights already pre-set for selected performance
indicators) should be distributed to the various performance indicators in
negotiated proportions based on the relative importance attached to each
indicator. MDAs should focus on the most critical output-based performance
indicators guided by the hierarchy of results;
iii) Ministries should ensure that they do not duplicate performance
indicators and targets that are already included in the PCs of their
respective downstream institutions in order to avoid “double counting
during the annual performance evaluation”.

5. Performance Contracting Cycle and Timelines

The Performance Contracting Cycle is a detailed representation of the PC process

that entails planning, development, implementation, monitoring & reporting,
annual performance evaluation, and planning for the subsequent cycle.

The cycle comprises review of the Performance Contracting Guidelines;

identification of performance targets; negotiations; vetting of the Performance
Contracts by PSPMU for quality assurance; signing of the PCs; implementation;
monitoring & reporting of performance; mid–year performance review; annual
performance evaluation, including compiling the report and release of
performance evaluation results.

The timelines for completion of the various phases of the annual Performance
Contracting cycle are provided in the table below, with an illustration in the form
of a flow chart provided in Annex I:

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 Activity Timeline
Performance Contract Development and Implementation
Identification of Performance Targets By 30th May
Pre-Negotiation Consultations 1st June - 15th June
Negotiation of Performance Targets 16th June - 22ndJune
Vetting of Performance Contracts 23rd June - 30th June
Signing of Performance Contracts 1st July - 5th July
Implementation of Performance Contracts 1st July - 30th June of the
following year
Mid-Year Performance Review 16th January – 28th February
Annual Performance Evaluation
Submission of Annual Performance Reports By 15th July
Evaluation/Moderation 1st August - 15th October
Submission of Annual Performance 31st October
Evaluation Report
Release of the Annual Performance 30th November
Evaluation Report
Deployment of the Productivity and From December
Performance Rewards and Sanctions

5.1 Review of Performance Contracting Guidelines

Review of the Performance Contracting Guidelines is carried out to incorporate

emerging issues and lessons learnt with a view to improve the process in the
subsequent period. The exercise is undertaken annually through a consultative
stakeholders’ forum involving MDAs and is coordinated by PSPMU.

The review of the Performance Contracting Guidelines for the 20th Performance
Contracting Cycle was undertaken in March, 2023. MDAs are required to fully
apply the Guidelines to ensure that the draft PCs that will be developed and
submitted for vetting meet all the prescribed standards.

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The following are the key changes to the Performance Contracting Guidelines:

a) Retirement of Performance Indicators:

Six (6) Performance Indicators have been retired namely; Disability

Mainstreaming, Gender Mainstreaming, Prevention of Alcohol and Drug Abuse,
Prevention of HIV and Non-Communicable Diseases, Corruption Prevention and
Business Process Re-engineering (BPR) . However, the performance indicator
on BPR has not been entirely retired since some of the sub-indicators are
incorporated in the new Performance Indicator on “Digitalization of Government
Services”, under the Service Delivery Performance Criteria.

The general consensus that featured throughout the deliberations during the
stakeholders forum was that the number of performance indicators under the Cross-
Cutting Performance Criteria should be substantially reduced to retain only those that
are directly related to institutional strengthening, and enhancement of the
organizational capacity to perform as a strategy to make the MDAs to focus more on
delivering on their core mandate.

It was agreed that implementation of the retired performance indicators will still be
undertaken outside Performance Contracting and be spearheaded by the respective
Specialized Agencies, since these are their core mandates and they are funded to
superintend the same. In addition, it was noted that the performance indicators are
implemented and reported on through the performance indicator on National Values
and Principles of Governance.

The following are the reasons for retiring of the specific Performance
Indicators:

S/NO. PERFORMANCE STAKEHOLDERS’ JUSTIFICATION

INDICATOR
1. Business Process The sub-indicators have effectively been incorporated in the
Re-engineering new Performance indicator on “Digitalization of Government
Services”

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S/NO. PERFORMANCE STAKEHOLDERS’ JUSTIFICATION
INDICATOR
2. Disability  Non-compliance with the Stakeholders’ Resolutions on
Mainstreaming review of the PC Guidelines for FY 2022/23.
 It is anchored in law as an affirmative action e.g. through
Access to Information Act and relevant provisions on
physical access to Government buildings.
 It has been in existence for several years and significant
milestones have been covered and institutionalized, and
its implementation can effectively continue outside the
Performance Contracting process.
 It is anchored in the National Values on Inclusivity and
Protection of the marginalized.
 The Agency has never undertaken an Impact
Assessment.
3. Gender  Non-compliance with the Stakeholders’ Resolutions on
Mainstreaming review of the PC Guidelines for FY 2022/23.
 The Specialized Agency has inadequate capacity to
oversee its implementation.
 It is anchored in National Values under equality,
inclusivity and protection of the marginalized.
4. Prevention of  Non-compliance with the Stakeholders’ Resolutions on
Alcohol and Drug review of the PC Guidelines for FY 2022/23.
Abuse  It can effectively be implemented through the through
existing legislative and administrative frameworks.
5. Prevention of HIV  Non-compliance with the Stakeholders’ Resolutions on
and Non- review of the PC Guidelines for FY 2022/23.
Communicable  During the previous Stakeholders’’ Forum, the indicator
Diseases was recommended for retirement but the Agency
requested for an extension of one contract period (FY.
2022/23) to prepare for its implementation outside the
Performance Contracting process.
 The Specialized Agency has inadequate capacity to
oversee its implementation.
 Performance evaluation of MDAs during the FY 2021/22
were conducted after the deadline.
 MDAs have institutionalized the Performance Indicator
and will continue to implement it outside the PC.
6. Corruption  It is provided for under the National Value and Principles
Prevention of Governance (integrity).

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b) Enhancement/Reduction of Sub- Weights for Performance Criteria:

The sub-weight for “Service Delivery” and “Core Mandate” Performance Criteria
has been increased from 10% to 15% and 60% to 65% respectively.
Enhancement of the sub-weights for the two Performance Criteria is to refocus
MDAs towards strengthening their service delivery systems and enhance
delivery of their core mandate.

The sub-weight for the “Cross- Cutting” Performance Criteria was reduced from
13% to 4% in order to reflect the substantial reduction in the number of
Performance Indicators and enhance the weight under service delivery and core
mandate Performance Criteria.

c) Introduction of New Performance Indicators

To facilitate automation and on boarding of services on the e-citizens platform,

a Performance Indicator on “Digitalization of Government Services” has been
introduced under the “Service Delivery” Performance Indicators to be
implemented by all MDAs.

Under the Performance Indicator on “Implementation of Presidential Directives”

a Presidential Directive on “National Tree Growing Restoration Campaign” has
been introduced to be implemented by all MDAs without exemption. The
objective is to use the PC Platform for MDAs to contribute to increasing forest
and tree cover from the current 12% to 30% by 2032.

Under the Core Mandate Performance Criteria, a new Performance Indicator on

Productivity Mainstreaming has been introduced with the aim of enabling MDAs
to develop, implement and adopt strategies, and interventions to support them
measure, manage and improve productivity and ultimately entrench a culture
of productivity.

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5.2 Pre- Negotiation Consultations and Negotiations
5.2.1 Pre-Negotiation Consultations

During this stage, MDAs are required to: create a common understanding of the
scope of their operations and the core business; confirm available financial and
human resources; identify emerging issues; and other factors that may affect
performance. The consultations should involve other institutions whose
operations may affect achievement of the MDA’s performance targets. It is also
during this phase that consensus should be sought on the nature and level of
commitments and obligations of one MDA to the other.

The pre-negotiations consultations stage is not provided for in the GPCIS

since the nature and substance of any such consultations vary from one MDA
to the other, are demand-driven and therefore cannot be standardised.

5.2.2 Negotiation of Performance Contracts

During this stage, MDAs are required to verify that performance indicators and
targets are aligned to the priorities set by the Government. In addition, the
performance indicators and targets should support achievement of the mandate
of the organization and are aligned to the Bottom-Up Economic Transformation
Agenda (BeTA) as provided in the Kenya Vision 2030 MTP IV, the Sustainable
Development Goals (SDGs), Agenda 2063, other national priorities, relevant
Sector Performance Standards, and the approved budget for the financial year.

The negotiation process should be carried out online in the GPCIS and it
commences with the MDA keying in relevant data and information in the “ PC
Preparation” module as per the instructions provided in the PC Preparation User
Guide. The User Guide is available on the GPCIS landing page for MDAs to
download. Once all relevant information is keyed in, the PC should be submitted
online for negotiations.

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The negotiations process will also be carried out online on the “ PC Negotiations”
module. The process will be guided by the instructions contained in the “ PC
Negotiation and Vetting User Guide” that is available on the GPCIS for MDAs to
download.

The CS will be responsible for negotiation of the PCs for the Ministry and all its
Agencies. It is a requirement that The National Treasury, the parent Ministry and
Specialized Agencies participate in the negotiations of the PCs for State
Corporations. Similarly, Ministry of Education should participate in the
negotiations of the PCs for Tertiary Institutions.

The Specialised Agencies are required to provide leadership during negotiations

of the respective Performance Indicators and targets that they superintend. The
Secretary/CEO of the relevant Specialised Agency will be responsible for ensuring
that adequate information on the specific performance indicator(s) is
communicated to the MDAs early to inform pre-negotiations and negotiations of
the PCs.

NB:
i) More details on the parties to negotiations and vetting of the Performance
Contract at each level in an MDA are provided in Annex II.
ii) PSPMU has defined the assigned Technical Officers in all Ministries (one
per State Department) and provided them with access credentials to the
GPCIS to facilitate the negotiation process.

5.3 Vetting of Performance Contracts

All negotiated PCs should be submitted online in the GPCIS for vetting by PSPMU. The
purpose of the vetting is to ensure quality assurance by verifying that the Performance
Contracting Guidelines have been fully complied with.

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Specifically, the purpose of vetting is to ensure:
a) Compliance with the Performance Contracting Guidelines;
b) The PC is aligned to BeTA and anchored on the Kenya Vision 2030 MTP IV,
other national priorities, relevant Sector Performance Standards, SDGs,
Agenda 2063 and the MDA’s Strategic Plan. Specifically for alignment to
BeTA, MDAs should prioritize performance indicators and specific sub-
indicators on the five core priority areas of the Government namely:
bringing down the cost of living, eradicating hunger, job creation,
expanding the tax revenue base and improving the foreign exchange
balance;
c) Performance indicators comprehensively address the mandate of the MDA
and are aligned to the budgetary allocations;
d) Performance targets are output-based and growth-oriented (unless in
instances where the optimal target has been achieved and sustainability
may apply).

NB: Once a PC has been vetted/signed, it cannot be amended.

5.4 Signatories to the Performance Contracts

The following section stipulates the signatories to the PCs at the various levels
within an MDA.

I. Ministry/State Department/ Department

Level For and on behalf of For Ministry/State

the Government Department
1st – Ministry H.E. the President Cabinet Secretary
nd Cabinet Secretary Principal Secretary
2 –State Department
rd Principal Secretary Principal Administrative
3 –Department
Secretaries*/Directors/
Heads of Department

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  The signatory level in respect of a Principal Administrative Secretary may vary
from one Ministry to another and should be guided by the specific reporting
structures that are in place.

II. Constitutional Commission/Independent Office

Level For and on behalf of Constitutional

the Government Commission/

Independent Office

1st – Constitutional Chairperson to the Secretary/CEO

Commission/Independent Board/ Council

Office

2nd – Departments Secretary/CEO Directors/ Heads of

Department

3rd – Divisions/ Sections/ Units Directors/ Heads of Heads of Divisions/

Department Sections/Units

III. State Corporation/ Statutory Body

Level For and on behalf State Corporation/

of Statutory Body
the Government
1st – State Corporation/ Cabinet Secretary Chairperson and Independent
Statutory Body Director
Cabinet Secretary, The National Treasury and Economic Planning counter-
signs the PCs at the first level
nd Chairperson to the CEO
2 – Office of CEO
Board
rd. CEO Directors/Heads of Department
3 – Departments

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IV. Public University

Level For and on behalf of Public University

the Government

1st – University Council Cabinet Secretary, Chairperson, University

Ministry of Education Council and Independent
Council Member
Cabinet Secretary, The National Treasury and Economic Planning counter-
signs the PCs at the first level

2nd - Office of Vice – Chairperson, Vice-Chancellor

University
Chancellor
Council

3rd – Colleges/ Vice-Chancellor Principals, Deans of Faculty

Faculty/ Institutes/ and Heads of Institute/

Schools Schools

V. Tertiary Institution

Level For and on behalf of Tertiary Institution

the Government

1st – Board of Cabinet Secretary, Chairperson, Board of

Management Ministry of Education Management (BoM) and

Independent BoM Member

nd Chairperson, BoM Chief Principal/Principal
2 – Office of the Chief
Principal/Principal

rd Chief Principal/ Heads of Department

3 – Departments
Principal

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NB:
i) MDAs should ensure that the FY. 2023/24 PCs are signed within the
stipulated timelines.
ii) MDAs should ensure that delay in actual signing of the vetted
Performance Contract does not affect commencement of its
implementation.

5.5 Implementation of Performance Contracts

The vetted PC should be cascaded by signing lower level Contracts in

Departments and downstream institutions and subsequently, link specific
deliverables and targets to individual officers through work plans and the staff
performance appraisal. It is also a requirement to align other planning tools such
as the Procurement and Cash Flow Plans to the vetted PCs to effectively facilitate
achievement of the performance targets.

5.6 Performance Monitoring and Reporting

5.6.1 Performance Monitoring, Reporting and Feedback

Best practice in Performance Management requires that progress in

implementation of the PC is monitored and reports prepared to assess the extent
of achievement of the set targets in order to inform decision making. MDAs are
encouraged to undertake self-reporting as part of advancement of good
governance.

a) Submission of Performance Reports

All MDAs are required to prepare and submit quarterly performance reports
within 15 days following the end of a quarter and the annual performance
reports within 30 days after the end of the contract period. The reports should
be prepared and submitted online using the Monitoring and Reporting Module in
the GPCIS. MDAs are advised to refer to the Performance Monitoring and

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Reporting User Guide for instructions and relevant information on how to prepare
and submit the reports online. A downloadable format of the User Guide can be
accessed in the GPCIS.

The following Lead Agencies will be required to analyse the submitted quarterly
performance reports using the relevant interface in the GPCIS and provide
feedback within 15 days after the date of receipt:

Category of Agency Lead Agency to Analyse Reports

and Provide Feedback

Ministries Public Service Performance Management

Unit

State Corporations Inspectorate of State Corporations

Tertiary Institutions Ministry of Education

The role of the Lead Agencies in analysing the reports should as much as
practicable include physical verification of the reported quarterly achievements
in order to ensure credibility of the reports.

The quarterly reports should be discussed and approved by the Ministerial

Performance Management Committee for Ministries, or Board/Council or the
relevant sub-committee in the case of State Corporations and Tertiary
Institutions. The signed/endorsed extracts of the minutes indicating that the
report was discussed and approved should be uploaded on the GPCIS.

b) Submission of Performance Reports to Agencies

MDAs shall submit online both the quarterly and annual reports to agencies that
have oversight mandate (Specialized Agencies) within the prescribed timelines
for respective performance indicators. In turn, the Specialised Agencies should
provide feedback online within the prescribed timelines. MDAs shall continue

21
compiling and submitting their reports using existing agency-specific reporting
platforms until the GPCIS is fully developed and all reporting tools are integrated
into the System. The table below indicates the Specialised Agencies for the
respective performance indicators:

Performance Indicator Specialised Agency

Resolution of Public Complaints Commission on Administrative Justice

Asset Management The National Treasury and Economic

Planning -The National Treasury
National Values and Principles of Directorate of National Cohesion and
Governance Values
Road Safety Mainstreaming National Transport and Safety Authority
STI Mainstreaming National Commission for Science,
Technology and Innovation
Productivity Mainstreaming National Productivity and
Competitiveness Centre

The Specialized Agencies shall communicate details of performance indicator-

specific reporting guidelines and information on how to access the reporting
platforms directly to the MDAs as well as post the information on their official
websites, in addition to any other supporting literature. The timelines for
submission of the reports should be within 15 days after the end of a quarter
for quarterly performance reports, and within 15 days after the end of the
contract period for the annual performance reports.

22
c) Submission of Performance Reports to other Agencies
MDAs should submit reports to the agencies in the table below using the prescribed
format and as per the stipulated timelines.

Performance Indicator Agency

Access to Government Procurement Public Procurement Regulatory Authority
Opportunities (AGPO)
Promotion of Local Content in Ministry of Investments, Trade and
Procurement Industry -State Department for Industry

NB:
For Access to Government Procurement Opportunities, the reports should be
submitted bi-annually as provided by the PPRA Circular NO. 01/2016 on Mandatory
Reporting Requirements by Procuring Entities.

5.6.2 Penalty for Non-Compliance with Timelines for Submission of

Quarterly Performance Reports

An MDA that fails to submit all the four quarterly performance reports online within the
stipulated timelines will have a weighted score of 0.0500 added to its composite score
as a penalty for non-compliance.

5.6.3 Mid-year Performance Review

The purpose of the Mid-year Performance Review is to track progress of

achievement, identify and address challenges and constraints affecting
performance to ensure that MDAs are on course to achieving their annual
performance targets. The review will entail physical verification of the reported
quarterly achievements in order to ensure credibility of the exercise.

23
To facilitate the exercise, MDAs are required to:
a) Participate in the Mid-year Performance Review by providing all required
information as well as facilitating any identified field verification visits;
b) Submit online the first and second quarter performance reports;
c) Avail any verifiable documented evidence of performance that may be
required; and
d) Ensure that the reported achievement for each performance indicator is
based on verifiable documented evidence of performance.

5.6.4 Release of Mid-Year Performance Review Report

The Mid-Year Performance Review Report will be released upon compilation by PSPMU.

5.7 Annual Performance Evaluation

Annual Performance Evaluation is the culmination of the process of Performance
Contracting and is carried out in a manner that ensures objectivity and integrity
of the results. MDAs are required to undertake self-performance evaluation (in-
house evaluation) based on the annual achievement for each performance
indicator using the GPCIS Annual Performance Evaluation Module. Annex III
provides information on the Performance Evaluation Methodology.

To facilitate performance evaluation, MDAs are expected to provide verifiable

and documented evidence of achievement of the agreed performance targets.
As much as is practicable, and for the purpose of objectivity in performance
evaluation, PSPMU will undertake actual verification of reported achievements.
Upon agreement on the results, the parties to the moderation phase of the
evaluation process should endorse copies of the final evaluation matrix and
detailed notes (in the form of minutes).

Performance evaluation for each performance indicator should reflect the “actual”
performance status even in instances where exogenous factor(s) may have been

24
experienced. This notwithstanding, any exogenous factor(s) should be objectively
established and documented. Once the performance moderation matrix and the
minutes have been signed by both parties, they cannot be altered by either of
the party.

MDAs that fail to participate in the Annual Performance Evaluation (based on

the duly vetted/signed PC), or for the reason that they declined to be placed
on PC shall be graded “Poor” (5.00) which is the lowest score.

The following are essential documents required for performance evaluation:

a) Performance Contracting Guidelines for the contract period;

b) Approved budget for the contract period;
c) Vetted/signed PC;
d) Annual Self-Evaluation Performance Report (compiled and submitted
online);
e) Verifiable and documented evidence to support the reported
achievements and other supporting documents; and
f) Documentation of any exogenous factors that could have affected the
performance of the MDA, either positively or negatively.

5.7.1 Release of Performance Evaluation Report

Upon completion of the annual performance evaluation and moderation, PSPMU will
compile the Annual Performance Evaluation Report, which will be released by the
President.

NB:
Any concerns raised during Quarterly Monitoring, Mid-Year Performance Review or
Annual Performance Evaluation and Moderation should be referred to Public Service
Performance Management Unit for arbitration.

25
 PART TWO

ANNEXES TO THE PERFORMANCE CONTRACTING GUIDELINES FOR FY.

2023/24

26
Annex I: Annual Performance Contracting Cycle

Review of
Performance
Deployment of Contracting
Productivity and Guidelines Identification
Performance of
Rewards and Performance
Sanctions Targets

Release of
Negotiations
Performance
of
Evaluation
Performance
Results
Contracts

Evaluation,
Vetting
Moderation and
(Quality
Ranking of
Assurance) of
Performance of
Performance
Previous FY.
Contracts

Mid-Year
Performance Signing of PCs
Review

Submission of
Performance Implementation
Reports of the of PCs
Previous FY

27
Annex II: Parties to the Negotiations and Vetting of Performance
Contracts

A: Negotiations of Performance Contracts:

I. Ministries

Government Ministry
Principal Secretary(ies)
Cabinet Secretary
Heads of Department
Specialized Agencies

II. Constitutional Commissions/Independent Offices

Government Constitutional Commission/ Independent

Office
Secretary/CEO Directors/ Heads of Department

Heads of Divisions/Sections/ Units

III. State Corporations

Government State Corporation

PS –Relevant State Department Chairperson

Independent Director/ Council Member
The National Treasury
CEO
Specialized Agencies Heads of Department

Chairperson to lead the State Corporation Team

28
IV. Tertiary Institutions

Government Tertiary Institution

PS –Relevant State Department Chairperson/ BoM

One Independent BoM Member
Specialized Agencies
Chief Principal/Principal
Heads of Department

Chairperson to lead the Tertiary Institution’s Team

B: Vetting of Performance Contracts:

I. Ministries

Government Ministry
Cabinet Secretary
Office of the Prime Cabinet
Secretary – Public Service Principal Secretary(ies)
Performance Management Unit
Heads of Department

II. Constitutional Commissions/Independent Offices

Government Constitutional Commission/ Independent

Office
Chairperson Secretary/CEO
Directors/ Heads of Department
Heads of Divisions/Sections/ Units

Secretary/CEO to lead the Constitutional Commission’s/

Independent Office’s Team

29
III. State Corporations

Government State Corporation

Office of the Prime Cabinet Chairperson

Secretary – Public Service Independent Director/ Council
Performance Management Unit Member
CEO
Heads of Department

Chairperson to lead the State Corporation’s Team

IV. Tertiary Institutions

Government Tertiary Institution

Office of the Prime Cabinet Chairperson/ BoM

Secretary – Public Service One Independent BoM Member
Performance Management Unit Chief Principal/Principal
Heads of Department

Chairperson to lead the Tertiary Institution’s Team

30
Annex III: Performance Evaluation Methodology

1.0 Performance Grades

Performance of an MDA for a particular performance indicator can fall under any
of the following performance grades: Excellent, Very Good, Good, Fair or Poor.

Excellent Grade
Achievement ranging from 130% to 200% of the performance target
i.e., 1.3T≤ Xa ≤ 2T.

Where T= Target and Xa= Actual Achievement

Very Good Grade

Achievement ranging from 100% to less than 130% of the performance target
i.e., T≤ Xa<1.3T.

Good Grade

Achievement ranging from 70% to less than 100% of the performance target i.e.,
0.7T≤ Xa<T.

Fair Grade

Achievement ranging from 50% to less than 70% of the performance target i.e.,
0.5T≤Xa<0.7T.

Poor Grade

Achievement ranging from 0% to less than 50% of the performance target i.e.,
0 ≤ Xa<0.5T.

31
1.1 Computation of Performance Criteria Values

Performance is rated on a scale of 1.00 to 5.00 where 1.00 represents

achievement equal to or greater than 2T and 5.00 represents “Zero”
achievement. This means that an achievement of 2T and above attracts a raw
score of 1.00, while an achievement of “Zero” attracts a raw score of 5.00 in
situations where achievement of a higher value is desirable.
This is illustrated in the diagram shown below:

XL
XU

(XU-XL)
Where, T = Target

Xa = Actual Achievement

XU = 2T = Upper
Criteria Value

XL =0= Lower Criteria

Value

Total Span =4 i.e.

5.00 -1.00

The methodology for computing the raw score for any achievement
entails establishing the value of the position of the performance within
entire span. Calculation of the Raw Score therefore, is based on the
Actual Achievement (Xa) as it relates to the Target (T).

XU – Xa
Raw Score = Upper Criteria Value Limit + Span XU – XL

32
NB: All criteria value ranges are determined by applying the same formula
that computes the criteria values proportionately from 1.00 to 5.00.

Similarly, the rest of the criteria value ranges can be derived using the same formula
thus:

Criteria Value Range

Performance Criteria Value Range Using Range Span

Grade Raw Score

Excellent 1.00 ≥ Xa ≥2.40 1.40

Very Good 2.40> Xa ≥ 3.00 0.60
Good 3.00> Xa ≥3.60 0.60
Fair 3.60> Xa ≥4.00 0.40
Poor 4.00> Xa ≥5.00 1.00

NB: In cases where performance falls on 2.40, 3.00, 3.60 and 4.00, the
grading will be “Excellent”, “Very Good”, “Good” or “Fair” respectively.

1.3: Computation of the Raw Score When Higher Achievement is

Desirable

Computation of the Raw Score entails determining the point at which

the achievement falls within the range 1.00 to 5.00. The value of the
raw score determines the performance grade.

Step 1: Determine the Actual Achievement, Xa

33
Step 2: Apply the Formula

Xu – Xa
Raw Score = Upper Criteria Value Limit + Span
Xu – XL

Xu – Xa
Raw Score= 1.00 + 4.00
Xu – XL

As the diagram above shows, XU=2T and

XL=0 Therefore:
2T – Xa
Raw Score= 1.00 + 4.00

2T – Xa
Raw Score= 1.00 + 4.00

2T – Xa
Raw Score= 1.00 + 2.00

Where, Upper Criteria Value Limit = 1.00, Span = 4.00, T = Target and Xa =
Actual Achievement.

Step 3: Compute the Weighted Score

Multiply Raw Score by the weight assigned to the indicator (expressed as a
percentage) to obtain the Weighted Score, i.e., Weighted Score = Raw Score x
Indicator Weight as a percentage.

34
Step 4: Compute the Composite Score
The Composite Score is computed by adding up the weighted scores of all the
performance indicators in the performance contract. The Composite Score should
range from1.00 to 5.00.

Thus, Composite Score = Sum of all the Weighted Scores.

1.3 Computation of the Raw Score When Declining Achievement is

Desirable, e.g., Reduction of Turn-around Time, Decongestion, and
Decrease in Mortality Rates etc.

Determine criteria value range where actual performance falls

(Where T= Target and Xa = Actual achievement):

i) Excellent =0.7 T ≤ Xa ≤ 0
ii) Very Good = T≤ Xa < 0.7T
iii) Good = 1.3T ≤ Xa < T
iv) Fair = 1.5T ≤ Xa < 1.3T
v) Poor =2T ≤ Xa < 1.5T

Computation of the Raw Score

XL
XU

(XU-XL)

Raw Score = Upper Criteria Value Limit + Span Xa – XL

Xu – XL

Xa – 0
2T – 0
35
 Raw Score = 1.00 + 4.00

Raw Score = 1.00 + 4 Xa

2T

Raw Score = 1.00 + 2Xa

T

1.4. Indicators Whose Achievement Cannot Exceed 100%

There are some performance indicators for which achievement beyond 100% is
not feasible. For such indicators, achievement is capped at 100% and attracts a
raw score of 3.00. e.g., capacity utilization, absorption of allocated funds, etc.

36
Annex IV: Definition of Key Terms

a) Cascading of Performance Contracts – Refers to the process of extending

Performance Contracting to downstream institutions (Departments/
Divisions/Sections/Units including Field/Regional Offices), levels and cadres of
employees. It also entails implementation of Staff Performance Appraisal for officers
in all cadres. Cascading of PC enables an MDA to effectively link individual employee’s
performance to the performance of the organisation for achievement of the strategic
objectives and ultimately its mandate.

b) Citizens’ Service Delivery Charter - A brief written public document that

provides essential information that citizens/customers and stakeholders are
entitled to know about the services and/or goods provided by a public
institution, department or unit. It contains information on services/goods
provided by the organisation, requirements to obtain the services/goods, cost
of the services/goods, time it takes to provide the services/deliver the goods
and the redress mechanisms in case of dissatisfaction.

c) Exogenous Factors – These are occurrences that affect performance either

positively or negatively and cannot reasonably be planned for, controlled or
predicted. These however, exclude factors that could have been pre-empted
by meticulous planning including risk management.

d) Independent Performance Management Team – A team that vets PCs, monitors

and evaluates performance of MDAs on behalf of the Government.

e) Ministries, Departments and Agencies – Refers to Ministries, Departments

and Agencies such as State Corporations, Constitutional Commissions &
Independent Offices and Tertiary Institutions.
f) Moderation - The process of verifying that the performance evaluation
methodology, including application of tools and instruments, has b e e n
applied uniformly for the purpose of ensuring objectivity.

37
g) Outputs – These are specific products or services (immediate results of an
activity) over a specified period.

h) Performance Criteria – Is a principle or standard for evaluating performance

represented by a set of performance indicators.

i) Performance Evaluation – The process of ascertaining the extent of

achievement of the agreed performance targets using the prescribed
performance evaluation methodology.

j) Performance Indicator – Is a measurable variable by which the performance of

an MDA is assessed.

k) Performance Monitoring –Is the consistent tracking of performance and

provision of feedback to management, work groups and employees on progress
towards achieving the agreed performance targets.

l) Performance Target - Is the desired level of achievement for a performance

indicator.

m) Productivity – is a measure of output produced per unit of input. It represents the

relationship between input and outputs in the production process. It addresses the
quantity & quality of outputs (products/services) and their worth (value) in terms of
achieving the organization’s goals and in relation to the resources consumed.

n) Productivity Index –is a measure of achievement that identifies the input

contribution of each factor of production to the final output in relation to an agreed
base year

o) Productivity Metric– is a measure of quantitative assessment used for tracking

productivity.

p) Public Complaint - Is an expression of dissatisfaction by one or more members of

the public about an action, inaction, decision or service provided by a public officer
or public institution.

38
q) Public Sector Productivity - entails optimizing the delivery of services through
efficient and effective use of public funds resulting in increased citizen satisfaction,
public trust, accountability, cost reduction, competitiveness, high quality of life and
reduction of wastes.

r) Sector Performance Standards – These are international/regional and/or national

sectoral benchmarks that inform the identification of performance indicators and
targets for MDAs.

s) Self-Evaluation – Refers to in-house performance assessment by an MDA

using the self-evaluation module in the GPCIS.

t) Total Assets - Is the net sum of fixed and current assets, including
investments, work in progress and other tangible and intangible assets.

u) Vetting – Refers to the process of verifying whether a negotiated Performance

Contract fully complies with the provisions of the Performance Contracting
Guidelines. The process is essentially a quality assurance exercise and is
undertaken by PSPMU.

39
Annex V: Model Performance Contract and Matrices

Annex V(A): Model Performance Contract for Ministries/ State

Departments, Constitutional Commissions,
Independent Offices, State Corporations and Tertiary
Institutions1

This Performance Contract (hereinafter referred to as “Contract”) is entered into

between the Government of the Republic of Kenya (hereinafter referred to as
“GoK”) represented by ………………. of P.O. Box ……………. (together with its
assignees and successors) of the one part, and …………… (hereinafter referred to
as the …………), (together with its assignees and successors) of P.O. Box ……. of
the other part.

WHEREAS;
The Government is committed to ensuring that public offices are well managed
and they are effective in delivering quality service to the public in line with the
provisions of the Constitution of Kenya;

The Government recognizes that MDAs hold a key role in the implementation of
the national priorities in order to improve the quality of life of the citizens and
make Kenya globally competitive;

The purpose of this Performance Contract is to establish the basis for ensuring
that efficient and effective services are delivered to Kenyans in line with the
provisions of the Constitution. MDAs are required to adopt systems that enable

1 The Model Performance Contract is applicable to all MDAs and therefore

relevant sections should be filled accordingly. The text and figures that apply
uniformly to all MDAs have already been standardized and provided in the
GPCIS and need not be keyed again. MDAs are advised to download the PC
Preparation User Guide from the GPCIS for instructions on the information
that they are required to key in.

40
innovativeness and adaptability of public services to the needs of users through
automation and on-boarding of services on the e-citizen platform.

This Performance Contract therefore represents the basis for continuous

performance improvement that meets the needs and expectations of the Kenyan
people.

Therefore, the parties hereto agree as follows:

Part I: Statement of Responsibility by the CS/BoD/BoM

The Mandate of the Ministry/ State Corporation/Tertiary Institution is to

…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
It is my/our responsibility to provide the required leadership in designing suitable
plans and strategies that will contribute to high and sustainable socio- economic
development. It is my/our undertaking to ensure that the Ministry/State
Corporation/Tertiary Institution has a credible Strategic Plan and Performance
Contract that will deliver the desired goals.

It is also my/our undertaking that I/we will perform my/our responsibilities

diligently and to the best of my/our abilities to support achievement of the agreed
performance targets.

Part II: Vision Statement, Mission Statement and Strategic Objectives

(a) Vision Statement of the MDA

(b) Mission Statement of the MDA

(c) Strategic Objectives of the MDA

41
Part III: Statement of Strategic Intent by the CS/BoD/BoM

In carrying out my/our duties, I/we intend to put all my/our efforts towards
contributing effectively and efficiently to the achievement of the national
development agenda as espoused in the Kenya Vision 2030 MTP IV, keeping in
mind the specific priorities of the Ministry/State Corporation/Tertiary Institution.

Bearing in mind the imperative of inclusivity, I/we will implement the following
Strategic Intents during the Financial Year:
i) ……………………………………………………………………………………………………
ii) ……………………………………………………………………………………………………
iii) ……………………………………………………………………………………………………
iv) ……………………………………………………………………………………………………

Part IV: Commitments and Obligations of the Government

Acknowledgement of receipt of correspondences and approval of requests are

made within the timelines stipulated in the Citizens’ Service Delivery Charter.

NB:

1. Any other commitment or obligation that may be relevant to a specific MDA

in execution of the Performance Contract may be included upon agreement
during the PC development process.

2. The commitment on “Release of exchequer within seven (7) days upon

submission of the request” has been removed from the GPCIS since it does
not apply uniformly across all MDAs. However, MDAs that need to commit
the Government through their Parent Ministry, may include the
commitment.

Part V: Reporting Requirements

MDAs are required to compile and submit their Quarterly and Annual performance
reports online as provided in Section 5.7.1 for the purpose of monitoring

42
progress and Annual Performance Evaluation.

Part VI: Duration of the Performance Contract

The Performance Contract will run for one financial year from 1st July to 30th June
or as otherwise specified.

Part VII: Signatories to the Performance Contract

For and on behalf of MDA

Signature………………………………Date………………………………….
Name: …………………………………………………………………….
Designation: …………………………………………………………….

For and on behalf of Government

Signature……………………………………Date…………………………………..
Name: …………………………………………………………………………...
Designation: ………………………………………………………………....

NB: The full list of the signatories to the Performance Contract is provided in Section
5.5 of the Guidelines and relevant information is available in the GPCIS for MDAs to select
as applicable. As provided in the Draft PC User Guide, all information on signatories will
be selected from a dropdown list except for the names of the signatories, which are
specific to the MDA and will therefore have to be keyed in.

43
 Annex V(B): Performance Contract Matrices2

1. Performance Contract Matrix for Ministries, Non-Commercial State

Corporations and Tertiary Institutions

S/No. Performance Criteria Unit of Weight Status Annual

Measure (%) Previous Target (FY
Year (FY 2023/24)
2022/23)
Financial Stewardship*
Absorption of Allocated % 2 100
Funds (GoK)
Absorption of Externally Mobilized % 3 100
A Funds
Appropriation-in-Aid Kshs. 2
Pending Bills Ratio % 3 ≤1
Weight Sub-Total 10

Service Delivery
Implementation of Citizens’ % 5 100
Service Delivery Charter
Digitalization of Government % 6 100
B Services
Resolution of Public % 4 100
Complaints
Weight Sub-Total 15

Core Mandate
MDA’s priority programmes/ 47

2As explained in Section 4 (Key Elements of the Model Performance Contracts ) all
standard information in the PC Matrix has already been incorporated in the PC Preparation
Module in the GPCIS. MDAs should therefore internalise the PC P User Guide to effectively and
comprehensively key in relevant information to develop the matrix online.

44
S/No. Performance Criteria Unit of Weight Status Annual
Measure (%) Previous Target (FY
Year (FY 2023/24)
2022/23)
projects (BeTA, Vision 2030
Flagship Projects, Other
National Priorities and
Programmes/ Projects) aligned
to SDGs, Agenda 2063 and SPS
Strategic Plan % 3 100
C Developed/Reviewed
Ease of Doing % 2 100
Business**
Project Completion Rate % 2 100
Revenue Collection*** Kshs. 4
Development Index**** % 2
Science, Technology and % 2 100
Innovation Mainstreaming*****
Productivity Mainstreaming****** % 3 100
Weight Sub-Total 65

Implementation of % 2
D 100
Presidential Directives
Affirmative Action in
Procurement
E
Access to Government Procurement Kshs 2
Opportunities
Promotion of Local Kshs 2
Content in Procurement
Weight Sub-Total 4

45
S/No. Performance Criteria Unit of Weight Status Annual
Measure (%) Previous Target (FY
Year (FY 2023/24)
2022/23)
Cross-Cutting
Asset Management % 0.5 100
Youth Internships/Industrial No 1
Attachments/ Apprenticeships
Competence Development % 1 100
F
National Values and Principles % 1 100
of Governance
Road Safety Mainstreaming % 0.5 100
Weight Sub-Total 4

Overall Total Weight 100

*Assignment of weights based on different scenarios depending on which

performance indicator(s) are applicable to an MDA will be as follows:

SCENARIO I: If Absorption of Externally Mobilized Funds is not applicable, the Weight for Absorption of
Allocated Funds (GoK) should be adjusted to 5

SCENARIO 2: If A- in- A is not applicable, the Weight for Absorption of Allocated Funds (GoK) should be
adjusted to 3 and the one for Absorption of Externally Mobilized Funds to 4

SCENARIO 3: If both Absorption of Externally Mobilized Funds and A –in- A are not applicable, the Weight
for Absorption of Allocated Funds (GoK) should be adjusted to 6 and the one for Pending Bills Ratio to 4

**This is applicable to MDAs that implement “Ease of Doing Business” sub-

indicators as stipulated in Annex VI on Description of Performance Indicators.

***This is only applicable to MDAs that have a specific mandate of collecting

revenue as provided by relevant statutes.

****This performance indicator is only applicable to The National Treasury

46
and Economic Planning.

***** This performance indicator applies to all MDAs that have a specific
mandate on research, science, technology and innovation as part of their core
mandate. Information on whether an MDA is eligible to implement this
performance indicator will be communicated to the MDAs individually by
NACOSTI. In addition, NACOSTI should upload the full list of the eligible
MDAs on its website www.nacosti.go.ke by 30th June, 2023.

******This Performance Indicator applies to all MDAs without exemption.

47
 2. Performance Contract Matrix for Commercial State Corporations3

S/No. Performance Criteria Unit of Weight Status Annual

Measure (%) Previous Target
Year (FY (FY
2022/23) 2023/24)
Financial Stewardship*

Absorption of Allocated % 2 100

Funds (GoK)
A
Absorption of Externally Mobilized Funds % 3 100

Appropriation-in-Aid Kshs. 2
Pending Bills Ratio % 3 ≤1
Weight Sub-Total 10
Service Delivery
Implementation of Citizens’ Service % 5 100
Delivery Charter
Digitalization of Government % 6 100
B Services
Resolution of Public Complaints % 4 100

Weight Sub-Total 15
Core Mandate
C MDA’s priority programmes/ 39
projects (BeTA, Vision 2030
Flagship Projects, Other National
Priorities and Programmes/
Projects) aligned to SDGs, Agenda
2063 and SPS

3
As explained in Section 4 (Key Elements of the Model Performance Contracts ) all
standard information in the PC Matrix has already been incorporated in the PC Preparation Module
in the GPCIS. MDAs should therefore internalise the PC Preparation User Guide to effectively and
comprehensively key in relevant information to develop the matrix online.

48
 Strategic Plan Developed/Reviewed % 3 100

Ease of Doing Business** % 2 100

Project Completion Rate % 2 100
Pre-Tax Profit Kshs. 5
Dividends to The National Treasury Kshs. 5

Return on Investment % 4
Science, Technology and Innovation % 2 100
Mainstreaming ***
Productivity Mainstreaming**** % 3 100
Weight Sub-Total 65
Implementation of % 2 100
D
Presidential Directives
Affirmative Action in Procurement

E Access to Government Kshs. 2

Procurement Opportunities

Promotion of Local Content in Kshs. 2

Procurement
Weight Sub-Total 4

Cross-Cutting
Asset Management % 0.5 100
F Youth Internships/ Industrial No 1
Attachments/ Apprenticeships
Competence Development % 1 100
National Values and Principles % 1 100
of Governance
Road Safety Mainstreaming % 0.5 100
Weight Sub-Total 4
Overall Total Weight 100

*Assignment of weights based on different scenarios depending on which

49
performance indicator(s) are applicable to an MDA will be as follows:
SCENARIO I: If Absorption of Externally Mobilized Funds is not applicable, the Weight for Absorption of
Allocated Funds (GoK) should be adjusted to 5.

SCENARIO 2: If A- in- A is not applicable, the Weight for Absorption of Allocated Funds (GoK) should be
adjusted to 3 and the one for Absorption of Externally Mobilized Funds to 4.

SCENARIO 3: If both Absorption of Externally Mobilized Funds and A –in- A are not applicable, the Weight
for Absorption of Allocated Funds (GoK) should be adjusted to 6 and the one for Pending Bills Ratio to 4.

**This is applicable to MDAs implementing ease of doing business sub-

indicators as stipulated in Annex VI on Description of the Performance
Indicator on Ease of Doing Business .

*** This performance indicator applies to all MDAs that have a specific
mandate on research, science, technology and innovation as part of their core
mandate. Information on whether an MDA is eligible to implement this
performance indicator will be communicated to the MDAs individually by
NACOSTI. In addition, NACOSTI will upload the full list of the eligible MDAs
on its website www.nacosti.go.ke by 30th June, 2023.

*****This Performance Indicator applies to all MDAs without exemption.

50
Annex VI: Description of Performance Indicators

1. Absorption of Allocated Funds (GoK) - This refers to application of

budgeted and approved funds (GoK) to programmes, projects and activities for
which they were appropriated and planned for. It links the process of budgeting
to performance target setting. Absorption will be computed by dividing the actual
total expenditure by the total allocated funds.

2. Absorption of Externally Mobilized Funds - This refers to application of

approved funds from Development Partners to programmes, projects and
activities for which they were appropriated and planned for. Externally Mobilized
Funds include donor funds (Loans, grants, etc.). MDAs are required to provide
full disclosure of all sources of their external funding.

3. Appropriation-in-Aid - This refers to classes of revenue that The National

Treasury authorizes an Accounting Officer to collect and use at source. It also
includes classes of donor funds reflected as Direct Payments A-in-A in the printed
estimates.

4. Pending Bills Ratio – This is the measure of all financial obligations that
remain outstanding at the end of the financial year that have to be provided for
in the subsequent budgeting period expressed as a percentage of the total
approved budget. The financial obligations include, but are not limited to,
payments to service providers, loan obligations and statutory deductions to
relevant institutions. For MDAs that use accruals accounting method, payments
due to suppliers and other service providers that are beyond the provided credit
period will be treated as pending bills.

MDAs should ensure that any pending bills that are incurred in a given financial
year do not exceed 1% of the actual budgetary allocation for the contract period.

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In addition, MDAs should fully document and disclose all historical pending bills
and put in place measures to resolve them.

5. Implementation of Citizens’ Service Delivery Charter

Key service delivery commitments by MDAs to the citizens are detailed in a Citizens’
Service Delivery Charter. An effective Citizens’ Service Delivery Charter should clearly
communicate the expected service delivery standards that should include requirements
to access the service/good, cost of the service/good and the turn-around-time for the
service. In addition, MDAs should ensure that they fulfill their commitments and
progressively improve customer experience. MDAs are required to:
a) Display the Citizens’ Service Delivery Charter prominently at the point of
entry/service delivery points in both English and Kiswahili using the prescribed
format that is provided in Annex VII. For the purpose of visibility and legibility
by the customers, the size of the charter should, at the minimum, be three feet
in width and four feet in height, i.e. (3’x4’), with clearly visible font size of the
contents (10%);
b) Customize the charter to unique needs and convenient access of the customers
by among others, translating the Charter to Braille, providing mechanisms for
sign language, providing audio recordings and uploading the Charter on the
MDA’s online platforms (20%);
c) Sensitize staff on the Citizens’ Service Delivery Charter (20%); and
d) Ensure conformity with commitments and standards in the Charter by
establishing compliance mechanisms e.g. maintaining records on service
delivery (50%).

NB: An institution that does not display the Citizens’ Service Delivery Charter
prominently at the point of entry/service delivery points in both English and Kiswahili,
in the prescribed format and size, will be awarded a raw score of 5.00 for this
performance indicator during the annual performance evaluation.

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6. Digitalization of Government Services
This refers to measures to be undertaken by MDAs to accelerate the adoption of ICT
solutions for: ease of access; fast; cost effective; convenient and efficiency in service
delivery. This will be done through re-engineering of business processes and the
application of digital technologies to enhance Government service delivery. In addition, it
will involve aligning institutional structures, functions, policies and strategies that will
facilitate progressive digitalization.

The performance indicator aims to facilitate MDAs to: identify and document areas of
digitalization; prioritize services to be digitalized; re-engineer, digitize and automate
business processes; onboard services to the E-Citizen platform; undertake initiatives to
achieve a paperless office; identify and set-up appropriate infrastructure; institute cyber
security strategies; monitor the availability of online service; undertake capacity
building/re-tooling on digital skills; and institute change management strategies. Services
that require digitalization are those that are citizen-oriented, have back office processes,
and are focused on enhancing effectiveness and efficiency in service delivery.

The State Department for ICT and Digital Economy will play a lead role in providing
technical support to MDAs to operationalize this indicator in consultation with Public
Service Transformation Department (PSTD).

For effective implementation of the performance indicator, MDAs are expected to create
an enabling environment by ensuring the following among others:
1. Establish and Operationalize Digitalization Committee within the MDAs.
2. Conduct a baseline survey to determine the institutional level of digitalization.
(Template to be provided by the State Department of ICT and the Digital
Economy).
3. Develop workplace digitalization and automation strategy incorporating measures
that will enable people with disabilities to access online services.

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 4. Adoption of usage of official emails, and setting up appropriate infrastructure,
(LAN, Connectivity, Data Centers, Backups) to facilitate the digitalization of
Business processes.

The above are enablers for digitalization and will not be part of the performance
evaluation criteria.

MDAs are required to:

(i) Identify and prioritize citizen-facing and back-office services to be digitalized; (5%)
(ii) Re-engineer business processes for at least 25% of the prioritized services;
(25%)
(iii) Digitalize at least 25% of the identified services; (40%)
(iv) On-board at least 25% of citizen-facing services to the e-citizen platform; (10%)
(v) Institute measures for cyber security and data protection e.g., use of biometric
security features, anti-virus updates, data back-up, Secure Socket Layer (SSL)
Certificates, privacy and data protection; (10%) and
(vi) Identify and implement Business Continuity Strategies e.g., Disaster Recovery
Plan, Backups and Storage Strategy. (10%)

7. Resolution of Public Complaints

All public institutions are required to promptly address and resolve public
complaints referred to them directly or channelled through the Commission on
Administrative Justice (CAJ), which will issue a certificate to each MDA indicating
the level of achievement in percentage for the performance indicator.
MDAs are required to undertake the following:
a) Resolution of all complaints received (50%);
b) Access to information – Reactive Disclosure (30%);
c) Awareness creation on the complaints handling mechanisms (20%).
Additional information to support MDAs in implementation of this
performance indicator including the reporting template can be accessed
from CAJ website: www.ombudsman.go.ke

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Quarterly reports should be submitted via email to the Commission through
[email protected]

8. Core Mandate - MDAs should identify the performance indicators that are
informed by the Kenya Vision 2030 MTP IV, National Priorities (as espoused in
the “Sector Reports of the inaugural Retreat of the Cabinet and the
Senior Ranks of the Executive for implementation in the year 2023”),
Agenda 2063, SPS, and the SDGs. The funding requirements should be
established under either GoK or any other sources. In addition, MDAs are required
to brand Vision 2030 Flagship Projects and submit quarterly progress reports for
all flagship projects to Kenya Vision 2030 Delivery Secretariat.

9. Strategic Plan Developed/Reviewed

Good practice in socio-economic development requires governments to implement their
development blueprints by adopting the concept of medium term planning horizon
through preparation and implementation of a series of five year plans. The Government
has adopted the five-year Medium Term Plans (MTPs) as its tool for implementation
Kenya Vision 2030.
MDAs are required to develop their next generation Strategic Plans to align to the Kenya
Vision 2020 MTP IV including prioritising core priorities of the current administration. An
MDA whose strategic plan is not aligned to Kenya Vision 2030 MTP IV Plan period will be
required to review the strategic plan. The Strategic Plans should be developed/reviewed
by 31st December, 2023.

10. Ease of Doing Business – This entails making business regulations simpler
by creating conducive environment for starting, operating and sustaining a
business. MDAs are required to select the following sub-indicators that are
relevant to their mandate:
i) Starting a business – procedures, time, cost and minimum capital to
start a new business;

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 ii) Dealing with construction permits – procedures, time and
cost to put up buildings and infrastructure;
iii) Getting utilities – procedures, time and cost to get
connected to utilities (e.g., electricity, water, sewerage etc.);
iv) Registering property – procedures, time and cost to register a
Title Deed;
v) Getting credit – ease of getting credit;
vi) Protecting investors – extent of disclosure of information to
investors and shareholders;
vii) Paying taxes – number of taxes paid, hours per year spent
preparing tax returns and total tax payable as share of
gross profit;

viii) Trading across borders – number of documents, cost and time

necessary to export and import;

ix) Enforcing contracts – procedures, time and cost to enforce a debt

contract; and
x) Resolving insolvency – the time, cost and recovery rate (%)
u n der bankruptcy proceedings.

11. Project Completion Rate – Refers to the status of implementation of

planned projects during the contract period as per the identified deliverables.
Projects refer to both physical and non-physical development undertakings. MDAs
are required to key in the required information on identified projects in the
“Projects Matrix” label under the “Define Projects” sub-label that is provided in
the GPCIS PC Preparation Module when developing their PCs. Once all the
information is keyed in, it should appear in tabular form (Captured Projects
Table) as shown below:

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 S/No. Project Project Location Total Current Status Allocation for Expected
Name Description Estimated (Status of FY 2023/24 Deliverables
Cost physical (Kshs.) (Outputs) for FY
(Kshs.) completion in 2023/24
% and
description)

Only projects that are not directly under the mandate of an MDA but support or
facilitate achievement of the core mandate e.g. construction of an administration
block, development of ERP, construction of field offices, construction of a perimeter
fence etc. should be keyed in as projects for the purpose of identifying projects under
the Project Completion Rate performance indicator.

MDAs should ensure that projects that are listed in the matrix are not
duplicated as performance indicators under the Core Mandate. In addition,
MDAs should ensure that the expected deliverables are as per the awarded contracts
or the approved work plans where such projects are implemented internally. For the
purpose of annual performance evaluation, actual achievement for Project
Completion Rate will be computed by averaging the verified level of achievement
for all the committed projects.

12. Revenue Collection – Refers to monies collected from private organisations,

public agencies and individuals in form of fines, taxes, levies, user charges or any
fees and remitted to Kenya Revenue Authority. This is only applicable to MDAs that
have a specific mandate of collecting revenue as provided by relevant statutes.

13. Development Index –Refers to the ratio of development expenditure to

total expenditure expressed as a percentage. Annual achievement is computed
by dividing the Development Expenditure (DE) by Total Expenditure (TE) i.e.,
DE/TE where TE is equal to Development Expenditure (DE) + Recurrent

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Expenditure (RE). The performance target is computed by dividing total approved
development budget for the contract period by the total approved budget.
Development expenditure includes expenditures on development of
infrastructure, acquisition of new facilities, research and development, etc.

Recurrent Expenditure (RE) on the other hand refers to expenditure on goods

and services that does not result in the creation or acquisition of fixed assets. It
consists mainly of expenditure on wages, salaries, purchase of consumer goods
and services and consumption of fixed capital (depreciation). The Index is
intended to ensure that more resources are progressively applied to development
activities to ensure progressive and sustained economic growth. The National
Treasury and Economic Planning should ensure that the minimum ratio of 70:30
for RE to DE is achieved during the budgeting process and subsequent releases
to the MDAs.

14. Pre-Tax Profit – Refers to the excess of income over expenditure after
providing for depreciation and interest, but not before providing for corporate
tax.

15. Dividends to The National Treasury – This refers to the payment made to
The National Treasury as a shareholder in a Government Agency during the
distribution of profit.

16. Return on Investment – Refers to the ratio of pre-tax profit to total assets as
a percentage.

17. Science, Technology and Innovation (STI) Mainstreaming

Investments in Research, Science, Technology and Innovation (RSTI) is indispensable for

any Country or entity that seeks to secure public safety, national security, as well as
accelerate the realization of inclusive sustainable development. The need for deployment

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and infusion of RSTI into national and global systems is further expounded by the
prevailing global insecurity and economic meltdown occasioned by regional conflicts,
climate change, and environmental degradation.

Kenya Vision 2030 & its Medium-Term Plans and the national priorities recognize the role
of RSTI in increasing productivity, enhancing efficiency levels, accelerating economic
development, as well as creating comparative advantage and competitiveness of the
country. RSTI is also recognized as key in transforming the country from a factor-based
to an innovation-led, knowledge-based economy.

MDAs are required to undertake the following:

i) Develop institutional STI Mainstreaming Strategy (for new entrants into the STI
Mainstreaming Performance Indicator) OR Implement the developed institutional
STI Mainstreaming Strategy (for MDAs that developed the Strategy in the previous
financial year) using the template provided on NACOSTI’s website (30%);
ii) Develop and implement STI Mainstreaming Annual Work Plan for institutional STI
Mainstreaming (50%); and
iii) Submit quarterly and annual reports online to NACOSTI using the STI
Mainstreaming reporting template provided on NACOSTI’s website (20%).
NB:
Additional information to support MDAs in implementation of this performance
indicator including the reporting template and the list of eligible MDAs can be
accessed from NACOSTI’s website. www.nacosti.go.ke

18. Productivity Mainstreaming - entails development, implementation and

adoption of strategies and interventions that enable organizations to measure, manage
and improve productivity and ultimately entrench a culture of productivity. This involves
interventions on productivity awareness creation, measurement and improvement. In the
public sector, productivity measurement is a deliberate assessment of the efficiency and
efficacy of delivering Government services.

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The aim of the indicator is to enable MDAs to measure the efficiency and effectiveness of
resources (labour, capital, technology and systems) utilization in converting inputs into
quality outputs. This is undertaken under three broad areas namely: Operational
Efficiency; Labour Performance; and Citizen Participation. The specific metrics related to
the three areas include but not limited to: costs; time; output rate; and resource usage
to inform decision making with respect to pricing, production scheduling, purchasing,
contracting and delivery scheduling.

For effective implementation of the performance indicator, MDAs are expected to create
an enabling environment by ensuring the following:
(i) Establish and operationalize a Productivity Mainstreaming Committee;
(ii) Train Productivity Champions; and
(iii) Create awareness/sensitization on productivity mainstreaming for all staff.

The National Productivity and Competitiveness Centre (NPCC) in the Ministry of Labour
and Social Protection will play a lead role in providing technical support to MDAs.

MDAs are required to:

(i) Develop Productivity Metrics (30%);
(ii) Collect productivity measurement data (20%);
(iii) Compute Productivity Index (25%);
(iv) Develop workplace productivity improvement strategy (20%); and
(v) Submit quarterly performance reports to NPCC using the prescribed format (5%).

1. Additional information to support MDAs in the implementation of this

performance indicator including the reporting format can be accessed from
the website of the Ministry of Labour and Social Protection at
https://www.labour.go.ke
2. Quarterly reports should be sent to the National Productivity and
Competitiveness Centre on email address:
[email protected]

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19. Implementation of Presidential Directives - This refers to directives
that are issued by H.E. The President and communicated by the Chief of Staff and
Head of the Public Service on specific areas for execution by the relevant MDA
and may include Circulars and Executive Orders. If a Presidential Directive is
already provided for as a performance indicator under the Core
Mandate performance criterion, it should not be duplicated under the
Implementation of Presidential Directives Criterion.

The Presidential Directive on “National Tree Growing Restoration Campaign”

is mandatory across all Public Institutions. All MDAs placed on Performance
Contract should commit on this Presidential Directive without exemption.

20. National Tree Growing Restoration Campaign: The World is facing the triple
planetary crisis on climate change, biodiversity loss, and land degradation. Forests and
Rangelands are important for climate and environmental stability; economic
development; and social & livelihood support systems. There is a Global call for action
to halt and reverse deforestation and land degradation with consensus to restore at least
30% of the degraded terrestrial and marine ecosystems by 2030. Kenya has more than
90% of landscapes facing degradation (61% high and 27% severe).

In response to the global call, the President launched the National Tree Growing and
Restoration Campaign to grow 15 billion trees for restoration of 10.6 million hectares by
2032 on 21st December, 2022.

This initiative is expected to increase forest and tree cover from 12% to 30% by 2032;
restore ecological integrity and functioning of ecosystems; strengthen communities’
resilience to climate change; support sustainable supply of environmental products and
services (water and biodiversity); establishment of nature-based enterprises in the rural
areas, catalyze tree growing culture among Kenyans for livelihoods support and increase
access to climate finance through carbon trading.

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MDAs are required to undertake following:

a. Grow a minimum of 30 trees per year per staff (40%);

b. MDAs to mobilize key stakeholders in liaison with the State Department for Forestry
to conduct three (3) tree planting/growing events in the year (50%); and

c. Submit half yearly (for each rain season) and annual reports to the State
Department for Forestry on the number of trees grown (10%).

1. Additional information to support MDAs in implementation of this

performance indicator including the reporting template can be accessed
via www.environment.go.ke
2. Half-yearly and annual reports should be submitted to the Ministry via
[email protected] and [email protected]

For each of the identified Presidential Directives, MDAs should key in the required
information in the “Presidential Directives Matrix” label under the “Define
Presidential Directives Matrix” sub-label provided in GPCIS PC Preparation
Module. Once all the information is keyed in, it should appear in tabular form
(Captured Presidential Directives) as shown below:

S/No Directive Directive Date Directive Estimated Allocation Expected

Name Description Issued Timelines Cost for Deliverables

(Kshs.) Current
FY (Kshs.)

For the purpose of annual performance evaluation, actual achievement for

Implementation of Presidential Directives will be computed by averaging the
achievement for all the committed Directives.

21. Access to Government Procurement Opportunities – Refers to the

allocation and actual award of at least 30% of the total value (in Kshs.) of the
procurement budget for goods and services as provided in the annual procurement

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plan by each MDA to youth, women and PWDs as individuals or in organized groups.
At least 2% of the 30% of the budget for procurement of goods and services should
be reserved for PWDs.

To facilitate achievement of this target, MDAs should build the capacity of the
three target groups through training on government procurement procedures,
requirements for accessing government procurement opportunities and on the
specific opportunities available in the MDA.

Follow-up actions will include ensuring that the three groups actually access the
procurement opportunities and facilitation of quick processing of
payments.

In addition, MDAs should pre-qualify the registered groups as (an affirmative

action) and submit to PPRA a summary of the procurement opportunities
allocated to the target groups in the format provided in the PPRA website,
www.tenders.go.ke. MDAs shall submit a summary of the procurement
opportunities allocated to PWDs to NCPWD, via [email protected]

22. Promotion of Local Content in Procurement - It refers to allocation and

actual award of at least 40% of the total value (in Kshs.) of the procurement
budget for goods and services produced locally as provided in the annual
procurement plan by each MDA. It is aimed at promoting consumption of locally
produced goods and services that will contribute to among other things,
employment creation and growth of local industries.

Goods and services will qualify as locally produced when the goods and services
meet the following principles or criteria:

i) Where goods and services are wholly produced in Kenya using local inputs;
and
ii) Where goods and services are not wholly produced in Kenya using local
inputs but have undergone a substantial transformation of value addition

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 of at least 35% (EAC and COMESA rules).

MDAs are required to prepare and submit quarterly progress reports on the
implementation of this indicator to the Ministry of Investments, Trade and
Industry.

MDAs are advised to refer to the Preferential Procurement Master Roll No. 1
of 2022 issued by the Ministry of Investments, Trade and Industry which can
be accessed on http:/www.industrialization.go.ke.

23. Asset Management

Asset management is the systematic process of planning, acquisition, operating,
maintaining and disposing of assets in the most cost-effective manner. Implementation
of this performance indicator will facilitate MDAs to prepare and maintain registers of
assets, safeguard the assets and ensure standardization of the process for: identification;
recording; disclosure; and reporting of assets. In addition, the indicator will ensure idle
and unserviceable assets are disposed, in all cases, in full conformity to the existing legal
requirements. Further, Public sector entities will ensure adequate asset management
structures and systems are in place for prudent management of public assets for optimum
economic and social benefits to the public.

The asset register reports will provide data that will be consolidated into a Government
Inventory of Assets for all Public Entities. In addition, MDAs should acquire documents of
ownership of land, buildings, equipment and motor vehicles to support ownership. To
ensure a coordinated approach in Assets Management at MDAs level and for effective
implementation of this performance indicator, MDAs shall establish an Asset Management
Standing Committee and an Asset Management Unit.

MDAs are required to undertake the following:

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 a) Maintain and update Assets Registers using the prescribed reporting templates
issued by the National Treasury (60%).
b) Disposal of Idle Assets - Ensure disposal of unserviceable, obsolete and surplus
assets by way of sale, transfer to other public institutions, destruction, donation
or other authorized methods of disposal and in all cases in full conformity to the
existing legal requirements (40%).
All MDAs are required to submit quarterly and annual reports to The National Treasury &
Economic Planning using the prescribed format by email [email protected] .

1. The National Treasury will assess the annual performance of MDAs and issue a
score at the end of the contract period.

2. Prescribed reporting templates and guidelines to support MDAs in

implementation of this performance indicator can be accessed from the
National Treasury website at https://www.treasury.go.ke.

24. Youth Internships/Industrial Attachments/Apprenticeships - MDAs are

required to engage the youth progressively in internship, industrial attachment or
apprenticeship programs for skills transfer. The minimum number of youth in
internship, industrial attachment or apprenticeship programs in MDAs should be at
least 5% of the total in-post of the staff strength. MDAs should provide a breakdown
of the youth to be engaged in internship (based on numbers declared and actual
postings by the Public Service Commission), industrial attachment or apprenticeship
programs. The target for internship opportunities should at the very minimum be the
number declared to the Commission for the contract period.

Apprenticeship refers to a system of training practitioners so that they gain a set of

skills to prepare them for a career that they wish to pursue. On the other hand,
internship refers to a method of on-the-job training, consisting of an exchange of
services for experience between a graduate and an organization.

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25. Competence Development – Refers to the systematic enhancement of skills
and proficiencies in order to address career progression of individual employees and
improve institutional performance.

Employee Performance Management is the assessment of individual employee’s

performance. It is based on the negotiated and agreed performance targets that are
drawn from the MDA’s annual work plan and the PC

MDAs should ensure that the Skills Gap Analysis is carried out objectively so that
identification of interventions is comprehensive and the Training Needs Assessment
(TNA) is undertaken effectively.

MDAs are required to:

(a) Undertake Institutional Skills Gap Analysis every 5 years (20%);
(b) Undertake Staff Training Needs Assessment every 3 years or as need
arises and prepare annual staff training projections (10%);
(c) Address the identified skills gaps and training needs through interventions
such as recruitment, outsourcing, capacity building, training, coaching,
mentoring, etc. (30%); and
(d) Undertake Employee Performance Management by carrying out the
following:
i) Set individual employees annual performance targets for FY
2023/24 using the prescribed format by 31st July, 2023 (10%);
ii) Undertake Staff Performance Appraisal for all employees and
compile the appraisal report for the FY 2022/23 by 31st August,
2023 (15%); and
iii) Develop an action plan and implement the recommendations
emanating from the staff appraisal reports (15%).

For an MDA whose Institutional Skills Gap Analysis and/or TNA are within the validity
period, the weights assigned to the sub-indicators should be re-distributed
proportionately to the other sub-indicators.

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26. National Values and Principles of Governance –
This indicator aims at making national values and principles of governance a central
rallying ingredient and theme in the planning and execution of national policies,
programs, projects and activities for improved service delivery.
MDAs are required to:
a) Implement at least four (4) commitments and submit in the prescribed format an
Annual Progress Report on the implementation of the commitments and way forward
captured in the 2022 Annual President’s Report on National Values and Principles of
Governance (40%);

The following are the six (6) commitments and way forward in the 2022 President’s
Annual Report on measures taken and progress achieved:
i) Implement measures to support the five pillars of the Government Plan as outlined
in the Bottom Up Economic Transformation Agenda (2022-2027) namely:
Agriculture, Micro, Small and Medium Enterprise (MSME) Economy, Housing and
Settlement, Improved Healthcare for all Kenyans and Digital Superhighway and
Creative Economy;
ii) Leverage on digitization and automation of government processes to make 80%
of government services online;
iii) Enhance adherence to the provisions of Article 10 of the Constitution through civic
education, training and sensitization and mainstreaming of national values and
principles of governance;
iv) Implement measures to promote accountability and openness in the management
of public affairs and institutions;
v) Support devolution by strengthening collaboration and cooperation between the
two levels of government for improved service delivery; and
vi) Continue to implement measures to protect the environment and mitigate climate
change.

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b) Submit in the prescribed format the Annual Report on Measures taken and Progress
Achieved in the Realization of National Values and Principles of Governance (60%).
1. The two reports shall be submitted to the Directorate of National Cohesion and
Values, Extelcoms House 10th floor by 15th July, 2024 in hard copy and soft
copy emailed to: [email protected] with a copy to
[email protected]
2. The Directorate will analyze MDAs’ annual reports, assess performance and
issue a certificate of compliance with a score at the end of the performance
contract period.
3. For any clarification/additional information regarding this indicator, MDAs
may contact the Directorate of National Cohesion and Values on Tel. No.
0720944992, 0740871554 or email: [email protected] and
[email protected]

27. Road Safety Mainstreaming –

This is a multi-sectoral approach to ensure that road safety issues are made an integral
part of all Government programmes and projects. MDAs are required to actively engage
in developing projects and executing activities that contribute to the prevention and
management of Road Traffic injuries and fatalities in Kenya. The overall goal is to
substantially reduce the burden and severity of road accidents in Kenya, which is currently
estimated at annual loss of over 3,500 lives and over 10,000 injuries, and a corresponding
equivalent loss of 5% of GDP, which is currently estimated at Kshs. 480 Billion.

Establishment of Road Safety Committees (RSCs) and training/sensitization of the Road

Safety Committee (RSCs) members, relevant stakeholders, members of board & members
of staff in each MDA is a pre-requisite in the implementation of this indicator. The
Authority will undertake training or sensitization at no cost to the MDAs.

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The performance indicator will be implemented at three (3) levels as follows:

I. LEVEL I
This level applies to MDAs that did not fully achieve their Road Safety Mainstreaming
targets during the 19th cycle of Performance Contracting.

MDAs are required to undertake the following:

a) Develop a Workplace Road Safety Policy anchored on the NTSA Policy

Guidelines. (10%)
b) Develop an Annual Road Safety Implementation Plan based on the approved
Workplace Road Safety Policy with the following key components included: (20%)

i. Four (4) road safety activities stipulated in the Workplace Road Safety Policy

ii. Undertaking Annual Motor Vehicle Inspections of all the vehicles.

iii. Training of all drivers on defensive driving.

iv. Reporting on non-compliance on road safety at the workplace on quarterly

basis using the prescribed Reporting Template.

c) Implement the Annual Road Safety Implementation Plan. (65%)

d) Submit quarterly reports to NTSA in the prescribed format within 15 days after the
end of a quarter. (5%)

II. LEVEL II
This level applies to MDAs that have an approved Workplace Road Safety Policy in place.
The sub-indicators under this level are derived from the road safety policy developed by
the MDA.

MDAs are required to undertake the following:

a) Develop an Annual Road Safety Implementation Plan based on the

Workplace Road Safety Policy with the following key components included: (25%)
i. Eight (8) road safety activities stipulated in the Workplace Road Safety
Policy
ii. Undertaking Annual Motor Vehicle Inspections of all the vehicles.

69
 iii. Training of all drivers on defensive driving.
iv. Reporting on non-compliance on road safety at the workplace on quarterly
basis using the prescribed Reporting Template.
b) Implement the Annual Road Safety Implementation Plan. (70%)
c) Submit quarterly reports to NTSA in the prescribed format within 15 days after the
end of a quarter. (5%)

III. LEVEL III

IV. This level applies to Technical Agencies that have an approved Road Safety Policy
in place. These MDAs have some higher and elevated roles in matters regarding
road safety owing to their mandates and roles.
MDAs are required to undertake the following:

a) Develop an Annual Road Safety Implementation Plan based on the

Workplace Road Safety Policy with the following key components included: (25%)
i. Include ten (10) road safety activities stipulated in the Workplace Road
Safety Policy
ii. Undertaking Annual Motor vehicle inspections of all the vehicles.
iii. Training of all drivers on defensive driving.
iv. Reporting on non-compliance on road safety at the workplace on quarterly
basis using the prescribed Reporting Template.
b) Implement the Annual Road Safety Implementation Plan. (70%)
c) Submit quarterly reports to NTSA in the prescribed format within 15 days after
the end of a quarter. (5%)

NB: The list of eligible MDAs for Level III can be accessed in the NTSA website:
www.ntsa.go.ke

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Annex VII: Format for the Citizens’ Service Delivery Charter

MDA LOGO

S/No. Service/Good Requirements to Cost of Timeline

Obtain Service/Good
Service/Good (if any)

WE ARE COMMITTED TO COURTESY AND EXCELLENCE IN SERVICE DELIVERY

Any service/good rendered that does not conform to the above standards
or any officer who does not live up to commitment to courtesy and
excellence in Service Delivery should be reported to:
The CS/PS/CEO/Principal of the The Commission Secretary/Chief Executive Officer,
Public Institution Commission on Administrative Justice, 2 nd Floor,
West End Towers, Waiyaki Way, Nairobi.
P.O. Box 20414-00200 Nairobi
Tel : +254 (0)20 2270000/2303000
Email : [email protected]

HUDUMA BORA NI HAKI YAKO

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