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Performance Contracting Review Workshop: Nairobi County Finance Sector Strategizes for Fiscal Success

Mombasa, 23rd March 2024

Nairobi County Executive for Finance and Economic Planning Sector, Charles Kerich led Finance officers representing the Nine directorates in the Sector in a performance contracting review workshop.

“This is an important occurrence in our calendar to reflect as a Sector and plan the remaining part of the financial year and the year ahead,” said Mr. Kerich.

He mentioned that the sector has responsibilities and mandates that are not clearly understood by other sectors. “The Finance Sector is more than just payments. We should be acknowledged for more than that. The performance target has already been set, but we also need to take the performance management team through our mandate as well for them to understand our sector better.

He added that all the items on Sectors Performance Contract are attainable if the activities were to be divided into quarters.
Pcreviewmsa7Mr. Kerich shared that the County has big and small revenues and with the big revenues like outdoor advertising, it should come out clear that the advertising companies should be paying their annual licenses whether they have occupancy or not.

He stated that in 2023, the county collected Kshs. 10.6B, which was the highest in 5 years, but the county is capable of reaching Kshs. 12.2B.

“We also have some potential revenue streams which can help us achieve our revenue goal such as regularization of developments, sectional properties, exploring possibilities of outsourcing small format revenue collection,” he said.

To help address the issue of sectors not understanding budget spending and control, Mr. Kerich suggested that the Budget department actualizes budget monitoring and control to guide sectors on budget commitments based on county’s cash flow. “Every sector should be able to commit a certain percentage of their budget based on actual revenues.”

Chief Finance Officer and Ag. Chief Officer for Economic Planning, Asha Abdi, said, “We want to get it right this time round with Performance Contract. Every milestone achieved towards the end product should be documented and produced as evidence. We also need to prioritize our sector when it comes to county absorption.
Pcreviewmsa2County Chief Officer for Revenue Administration, Wilson Gakuya noted that there was a major concern on achieving the revenue target of Kshs. 19.9B. “Revenue mobilization is a collective responsibility that cuts across other sectors.  Our revenue targets need to be realistic because any failure to meet the target is likely to translate to pending bills. Going forward, we need to embrace the scientific approach in revenue targets setting. With the right strategies in place, our targets are achievable. However, we must address the bottlenecks around revenue mobilization, some of which are beyond the control of the Revenue Administration.”

Head of Treasury, Martha Wambugu said, “We have a team of performance contracting who have taken us through our targets setting, reviewed our performance and all other documentation. The main objective was to meet as a team representing all the finance departments, discuss our in-house issues, polish up on our performance contract, and discuss matters at length without disruptions. This has been a meaningful conversation, having our targets in place and finding solutions to our challenges as well. ”

Director Performance Management Directorate, Festus Macharia took the team through the overview of the performance contracting in the county. In his presentation, he gave a detailed framework that drives the performance of the county public service.
Pcreviewmsa4He further led the team through assessment of the sector, where he guided them in the kind of evidence to present to support the achievement of results during evaluation.

He advised the team to embrace the teamwork and always make reference to their signed performance contract document during the implementation of targets. “The approach this sector has taken to be sensitized on Performance Contract is commendable and goes a long way in pointing out various areas of improvement,” he said.

Present was Head of County Treasury, Martha Wambugu, Directors for ; Budget and Expenditure, Nancy kiruri,  Economic Planning, Geoffrey Sianga, Asset Management, George Mwariri, Debt Management, Joshua Kimeu, Revenue Mobilization, Dr. John Ntoiti,  Supply Chain Management, Richard Mogoko, Ward Development Fund CEO, Eng. Eston Njiru, Financial Services and Reporting represented by Deputy Director Charles Kibuchi, Assistant Director Administration, Ntolei Lemurt, among other officers.

 

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