Ministries and state agencies are not adhering to the public finance management (PFM) Act on payment of financial obligations, a report on the evaluation of their performance shows.
The report states the average pending bills for some 393 Ministries, Departments and Agencies was 2.53 per cent in the 2021-22 financial year against a target of one percent.
“MDAs were to ensure that pending bills incurred during the financial year, if any, did not exceed one percent of the actual budgetary allocation,” the report reads in part.
It, however, states this is an improvement from the 3.03 per cent achieved during the 2020-221 financial year.
The State House, Office of the Deputy President and Office of the Attorney General recorded an average achievement of 1.97 per cent while state corporations posted 2.68 per cent.
Tertiary institutions recorded a 2.38 per cent progress.
The 8th Cycle Report on Evaluation of the Performance of Ministries, State Corporations and Tertiary Institutions for the FY 2021-22 was released Tuesday in an event attended by President William Ruto.
Also present were performance contract coordinators in ministries, departments and agencies, development partners and representatives from the private sector.
Performance contracting is the flagship performance management tool that the government has adopted in the running of the public service.
Every financial year, public institutions formulate and implement a performance based on their strategic plans, approved budget and annual work plan.
Executive Order No 1 dated January 6, 2023, domiciled the performance contracting function in the Office of the Prime Cabinet Secretary.
Prime Cabinet Secretary Musalia Mudavadi said performance contracting aims to ensure accountability in the use of public resources both at the institutional as well as individual employee levels.
On analysis of performance, 32 state corporations made a loss of Sh9.44 billion against a targeted loss of Sh7.59 billion.
Five out of these, representing 15.6 percent, targeted to reduce their loss to Sh33.90 billion but managed to reduce it to Sh26.93 billion.
Kenya Airports Authority for example realised a pre-tax profit of Sh981.1 million against a targeted loss of Sh1.08 billion.
“A total of 27 other state corporations representing 84.4 per cent realised Sh17.49 billion pre-tax profit against a target of Sh26.30 billion falling short of the annual target by 33.5 percent,” it reads.
East African Portland Cement, Kenya Industrial Estates and National Housing Corporation had an improvement of 1,000 per cent of the annual target.
Pyrethrum Processing Company, South Nyanza Company and Numerical Machining Complex had their achievements falling short of the annual target by more than 1,000 per cent.