Transcript Performance contracts in Kenya

PERFORMANCE CONTRACTS IN KENYA
RESTORING AND BUILDING TRUST IN GOVERNMENT
THROUGH
INNOVATIONS TO PROMOTE QUALITY OF PUBLIC SERVICE
PRESENTATION BY
Ambassador Francis Muthaura,
Secretary to the Cabinet and Head of Public Service
Office of the President
KENYA
6/25/2007
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Performance Contracts in Kenya
• quality of an effective government cannot be
lower than that of its clients → the citizens
and the public at large.
• Government therefore, in 2003, introduced
performance agreements
↓
management tools to create accountability to
the public for targeted results
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Performance Contracts in Kenya
• Performance Contracts expanded from a pilot group of 16
commercial public enterprises in 2004, to eventually cover
the entire public service in Kenya, comprising the following
institutions:
• 38 Ministries and Accounting
Departments
• 130 Public Enterprise
• 175 Local Authorities (ie municipalities, local, county, and
urban councils)
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Performance Contracts in Kenya
• Extension of Performance Contracts to local
authorities has ensured inclusion of grass root
level communities in ensuring achievement of
Kenya’s Vision 2030.
• The initiative has turned out to be a powerful
tool in restoring and building trust in a
Government that the public had almost lost
hope in.
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Innovations
• This entailed systematic demystifying of
government and the process of governance,
through creation of synergies in the
relationship with citizens by involving and
empowering the public to demand
accountability from all holders of public office
through a series of innovations:
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Innovations…
• These innovations focus on the following key
areas;
1. Performance & quality of service;
2. Involvement of service consumers;
3. Evaluation of quality of service delivery; and
4. Ranking of institutions by excellence in
performance by using composite score.
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Innovations
Citizen Service Delivery Charter
• a key performance indicator in the
performance contract of every public
institution;
• statement prepared by a public institution
which outlines the nature, quality and
quantity of service that citizens should expect
from the institution.
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Citizen Service Delivery Charter
It sets out,
• What the institution does,
• What services users can expect,
• The standard of the service to be provided,
• Time frame within which the service will be provided.
• Any user charges, and the requirements,
• How users may seek redress if they are dissatisfied
with the service or in the event the institution does not
live up to the commitments in the charter.
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Service Delivery Charter
• The charter has, among others,
– Created radical paradigm shift in the management
of the public service by aligning service delivery
with the values and needs of the public;
– Ensured focus on customer value proposition
which has entailed evaluation of service delivery
through the eyes of the customer;
– Provided strong feedback mechanisms on quality
and timeliness of service delivery.
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Public/Private Partnership
Involvement of private sector and civil society in the
broad process of policy determination, by,
specifically, having these partners carrying out
the following functions:
• Negotiating performance targets with public
institutions
• Evaluating performance
• Providing feedback on implementation of
government programs and service delivery
shortfalls
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Customer Satisfaction Surveys
• all public institutions are required to carry out
annual Customer Satisfaction Surveys and to
progressively work towards increasing customer
satisfaction.
These initiatives have resulted in:
– wide credibility in the process because evaluation of
performance is carried out by the citizens themselves,
and,
– highly positive impact on service delivery ;
- Remarkable change in attitude to work and
work ethics by public employees;
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Results of Initiatives
• Adoption of competitive strategy in the delivery
of public service, driven by deliberate public
disclosure and ranking of performance results;
• decline in reliance on Exchequer funding by
public enterprises, resulting in increase in
downstream investment in public projects and
empowerment of public employees through
progressive improvement in terms of service.
• Creation and maintenance of strategic focus by
public employees
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Result of Initiatives
• Increased willingness of the public to pay
taxes.
for example, tax collections grew by 114%
between 2001/2002 and 2007/2008 from
KShs183,428,000.000 (US$2,780,000,000) to
KShs391,694,000,000* (US$5,935,000,000)
translating to an average of 13.6% per year.
*target
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Result of Initiative
•
Increase in Profitability
1.pre-tax profit for the 16 commercial public
enterprises increased by 282%
2. pre-tax profit for all 130 public enterprises increased
by an average of 39%
• Annual electricity connections have risen from 40,000
to over 120,000
• Because of the improved tax collections and improved
efficiencies in the delivery of services, the government
has been able to;
• Give free primary education
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Results…
• Give free ARVs, malaria TB treatment
• From next year, tuition fees for secondary
education will be waived.
• The road network rehabilitation is near
completion.
• Doubling of civil service salaries while at the
same time lowering the wage bill from 9.7% to
7% of GDP
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Ultimate Outcomes
• Government is currently able to finance up to
95% of its budget from internal sources. This
compares favorably with an average of 60%
internal financing for countries in the region.
• The economy has grown from a negative level
in 2002 to over 6%.
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Local Initiative
• local initiative which has benefited from best
practices from countries world over which
have successfully implemented the system. It
has also been fully locally funded and is not
donor driven.
THANK YOU
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