NATIONAL TREASURY BUILDING, NAIROBI CITY COUNTY WEDNESDAY, 22 JULY 2026 THE NATIONAL TREASURY UNDERTAKES VETTING EXERCISE FOR FY 2026/27 PERFORMANCE CONTRACT Public Investments and Assets Management Principal Secretary Mr. Cyrell Wagunda joined Economic Planning Department KE Principal Secretary, Dr. Bonface Barasa Makokha during the National Treasury FY 2026/2027 Performance Contract Vetting exercise. The vetting process was presided over by National Government Coordination Principal Secretary, Hon. Ahmed Abdisalan Ibrahim, who informed the members that the Government continues to prioritize performance contracting as a cornerstone of public sector reforms aimed at enhancing accountability, efficiency and results-oriented service delivery. The vetting of the National Treasury's FY2026/27 Performance Contract underscores the Government's commitment to ensuring that Ministries, Departments and Agencies (MDAs) remain focused on delivering measurable outcomes that support national development objectives. Performance contracting serves as an important management tool that enables public institutions to define clear targets, monitor progress and evaluate performance against agreed deliverables. It promotes prudent utilization of public resources, strengthens institutional accountability and fosters a culture of continuous improvement while supporting the implementation of Kenya Vision 2030, the Fourth Medium-Term Plan (MTP IV) and the Bottom-Up Economic Transformation Agenda (BETA). For the State Department for Public Investments and Assets Management, the performance contracting process provides a strategic framework for aligning its mandate with national development priorities while enhancing institutional effectiveness. Through clearly defined performance indicators, the State Department is better positioned to strengthen the governance and oversight of State Corporations, improve the management of Government investments and assets, and ensure that public resources generate sustainable economic and social value. PS Wagunda, while addressing the Ministerial Performance Contract Committee reiterated that the vetting process enables monitoring implementation of key reforms, tracking progress against agreed targets and identifying areas requiring policy or operational improvements thus enhancing decision-making, promoting transparency and ensuring that interventions are aligned with the Government's broader fiscal consolidation and public sector transformation agenda. In addition, performance contracting supports the State Department's efforts to optimize returns from public investments by improving corporate governance, strengthening asset management systems and advancing public-private partnership initiatives that stimulate economic growth and attract private sector investment. By measuring performance against specific outputs and outcomes, the Department is able to demonstrate its contribution to improving service delivery, safeguarding public assets and enhancing the financial sustainability of State Corporations. The framework further encourages innovation, efficiency and collaboration across Government institutions, enabling the State Department to respond more effectively to emerging challenges while delivering value for money to Kenyan taxpayers. It also reinforces public confidence by ensuring that the management of public investments and assets is guided by transparency, accountability and measurable results. Ultimately, performance contracting goes beyond compliance with Government requirements. For the State Department for Public Investments and Assets Management, it is a strategic tool that drives institutional excellence, improves operational performance and strengthens the Department's contribution to Kenya's long-term economic transformation through effective stewardship of public investments and national assets.