The Right Honourable Prime Minister,
Distinguished Ladies and Gentlemen,

I am pleased to once again preside over the announcement of performance evaluation results for Ministries, State Corporations and Local Authorities.

As will be recalled, when we assumed office in 2003, we pledged to focus on quality service delivery. We also promised more efficient utilization of public resources as the basis of national development.

In order to achieve this goal, the Government developed the national strategic plan referred to as the 'Economic Recovery Strategy for Wealth and Employment Creation'. This was our road map to making our country globally competitive.

This is the instrument that in turn defined the tools and innovations to be used to achieve our objectives. Key among the innovations was the implementation of performance contracts in the management of the public service.

The overriding objective in the introduction of performance contracts was to bring order in the administration of public affairs. We also wanted to create a sense of accountability to accurately identify responsibility for success or failure.

Ladies and Gentlemen,
Since the implementation of performance contracting, we have witnessed its growth from a rudimentary framework to a version that is now being replicated in other countries.

A more efficient public service is evidenced by the vast improvements in infrastructure development, expansion in education and health. We are also witnessing increased food production as a result of improved payments to farmers.

I am also glad to note that the savings which are the result of efficiencies in performance have in turn been applied in critical downstream programs such as the Kazi kwa Vijana. In addition, we have boosted the women, youth and disability funds as well as the Constituency Development Fund. Indeed, improved revenue collection has also enabled us to finance the recovery of key industries in various sectors of our economy.

The process of performance contracting has not only resulted in the rapid recovery of the economy, but has also earned our country admiration at the international level. In this regard, the defining moment for performance contracts was the recognition by the United Nations in 2007. In that year our country won the United Nations Public Service Award, in the first category of transparency, accountability and accessibility.

Ladies and Gentlemen,
We have come a long way as Kenyans in general and as a public service in particular. As a country we must always strive to put the best people in the positions that best suit their competencies.

We must then allow maximum, though guided autonomy, for public service managers to achieve targeted results. As a Government, we are also making available requisite resources and logistical support to the public service. Once these are provided, it is the responsibility of public service managers to deliver results as agreed upon in the performance contract.

In addition to resources and other facilitation, the Government recognizes the dynamism in the knowledge economy. It is now clear that skills are no longer based on the number of years an officer has worked, but on competence and excellence demonstrated in one's performance. I would, therefore, like to see institutions, particularly the Public Service Commission of Kenya, introducing flexibility in recruitment and promotions based on demonstrated merit not just the years served.

Ladies and Gentlemen,
The bulk of our public institutions have fully embraced the performance contracting system. However, there are a few institutions, including ministries, departments and state corporations that have not been consistent in their implementation.

I wish to clearly indicate that implementation of performance contracts is not a selective requirement. This goes for all public institutions without exception. We must therefore place punitive punishment for those who fail to implement the program. All public servants must be held accountable because we must remain faithful to the tax-paying Kenyan public.

Ladies and Gentlemen,
The process of performance contracting is among the key programs the Government is supporting in efforts to improve the quality of the lives of Kenyans. It is incumbent on all of us, therefore, to nurture and support the system. In this regard, the Performance Contracting Department should be equipped with the necessary tools to improve service delivery.

I also wish to note that, while the process of performance contracting has progressed remarkably well it has been limited to the executive arm of Government. Needless to say, the performance and actions of any of the three arms of Government has a direct bearing on the other arms. The ultimate benefits of performance management cannot be fully harnessed until the requirement for accountability for results is extended to all the three arms of Government.

I wish to clarify that introducing accountability for results should not be interpreted to mean either of the arms of Government is interfering with the other. Accountability should be directly to the people of Kenya, whom we serve as one Government. We should therefore move quickly and ensure that both the Legislature and the Judiciary are brought on board. This will ensure that Kenyans enjoy the full benefits of measured performance from all the three arms of Government.

Finally, ladies and gentlemen, and as I join the Prime Minister in awarding top performers, I wish to thank all those who have contributed to the success of the performance contracting process. The government fully appreciates your role and contribution.

Thank you and God bless you all.