Providing an Enabling

Environment for ICT

Development
Anne Waiguru, Ag. D. IFMIS/HGU
19th April 2011, at the Connected Kenya Conference,
Leisure Lodge Hotel, Mombasa
Outline
Introduction
Treasury Interventions in Facilitating ICT development
Budgetary Priorities for ICT development
Tax incentives for an Enabling Environment
Policy reviews for an Enabling Environment
Treasury’s leveraging on ICT to improve efficiency and
effectiveness in Public financial management
Leading by Example – ESP Monitoring tool, & IFMIS
Academy
Conclusion
Introduction
The Government recognizes that the efficiency and
connectivity afforded by ICT is a bedrock for
accelerated economic growth, expanded economic
opportunities, and overall poverty reduction.
This is premised by our belief that the use of ICT would
yield –
Savings in public expenditure,
Create efficiencies for a better and more productive
economy, thereby
Create jobs and move our economy up the value chain,
while
Reducing the cost of doing business.
Introduction2
ICT also plays an important role in
streamlining efficiency and effectiveness in the
management of public financial resources,
Which further contributes to fighting corruption
through the promotion of greater comprehensiveness
and transparency of information across government
institutions
With ICT, we are able to provide timely,
accurate, and, quality data
whilst concurrently enhancing controls to improve
expenditure management
so as to deliver quality services to the Kenyan people.
Budgetary Priorities for ICT Development
Despite general resource limitations caused by the
global economic downturn, and PEV, the Treasury has
nevertheless prioritized resources towards ICT
development.
In 2010/11 the Research, Innovation and Technology
sector, to which ICT development is housed under the
MTEF sectors was allocated Kshs. 66.2 billion (up from
Kshs. 45.5 billion in 2009/10),
2011/12 projections set at Kshs. 68.4 billion
representing a 3.3% increase.
This is expected to increase to Kshs. 72 billion by
2012/13.
Budgetary Priorities for ICT Development2
Programmes under the ICT infrastructure sub-
component include the development of BPO
centers, Digital Villages and an ICT park.
Treasury also prioritizes ICT oriented
programmes in other sectors. For example:
Education: ICT laboratories for e-learning;
Digital libraries
GJLOS: Electronic voter registration;
Digitization of Court Registries: Automation
of court processes (Telepresence system)
Tax Incentives for an Enabling Environment

The Treasury similarly uses tax incentives to

promote sectors including ICT, and thereby
provide an enabling environment. E.g.
2009/10 budget proposed a 5% tax
deduction on computer software, and
Further allowed internet service providers to
offset against their taxable income the cost
incurred in acquiring the right to use the fibre
optic cable over a period of twenty years
Policy Interventions for an Enabling
Environment
The Treasury mandate of creating an enabling
environment through policy development has
seen proposals made including:
1. Banking Act was amended to allow for branchless
banking which leverages on ICT.
2. Review of key business related legislation
undertaken to improve the environment for
doing business. These include the Companies,
Insolvency, Partnerships bills.
Policy Interventions for an Enabling
Environment2
3. Digitization of the Companies Registry, and
4. Reduced the time to obtain construction
permits and number of days required to
start businesses.
5. We have also licensed 4 microfinance
institutions to begin taking deposits so as
to increase access of SME’s to credit.
Leveraging on ICT to improve public financial
management systems
As initially indicated, The treasury recognizes the role
that ICT can play in facilitating economic growth and
development and in improving the efficiency,
effectiveness and transparency of public financial
management systems. Treasury has therefore
spearheaded the following interventions:
IFMIS Re-engineering
The MoF is currently implementing the re-
engineering IFMIS strategic plan, that seeks to
integrate all financial management business end to
end processes.
Leveraging on ICT to improve public
financial management systems (2)
To ensure effective linkages and integration
between the Budget Process; Procurement;
Accounting; Electronic Funds Transfer; Payroll;
Pension System and the Public Debt Management
system.
These are being undertaken within a framework
that is structured along seven key components -
the Re-engineering for Business Results; Plan to
Budget; Procure to Pay; Revenue to Cash; Record
to Report; Communicate to Change and ICT to
Support.
Leveraging on ICT to improve public
financial management systems (3)
The ICT to Support component of this reforms will
elevate the pace, scope and effectiveness of financial
resource management, public service provision, and,
ultimately, value-based economic growth
The newly created IFMIS department at MoF
coordinating and implementing these initiative.
Automation of the Kenya Revenue Authority.
KRA has and continues to implement automation
strategies including:
 ElectronicCargo Tracking System
 Integrated Tax Management System
Leveraging on ICT to improve public
financial management systems (4)
E-Promis
To support government monitoring of implementation of
projects, the MoF is facilitating the e-promis framework to
keep a constant check on the implementation of GoK
programmes/projects.
E-Registry
To enable small business apply and pay for licenses online,
including through the use of mobile payment platforms
3.8 B Fund for the Financial Inclusion of the Informal
Sector – reaching the un banked and under banked
using the M-Banking Platform
Leveraging on ICT to improve public
financial management systems (5)
The Economic Stimulus Programme
In 2009, GoK, through MoF launched the ESP
premised on the need to urgently overcome socio-
economic challenges facing Kenya, at the time.
ESP is an intensive, high impact programme that has
stimulated economic growth, created employment
and spurred entrepreneurship and innovation.
Leveraging on ICT to improve public
financial management systems (6)
The ESP programme factored in a specific ICT
component dubbed “ICT for schools”
The component has a Kshs. 960 million allocation

to provide computers to various institutions in all

constituencies
The programme is currently being implemented

by the Ministry of Education in this financial year.

Leveraging on ICT to improve public
financial management systems (7)
ESP Website/GIS mapping tool
The ESP secretariat recently launched an interactive web
page and GIS mapping tool, the first of its kind within
government, to facilitate the continued monitoring and
evaluation of ESP projects, as well as provide an update
on status of implementation with the general public.
The ESP website and GIS mapping tool allows for real

time status updates on funds disbursement, utilization

and implementation of ESP activities so as to meet the
expectations of a vigilant public who regularly access the
tools
The journey – overcoming challenges, JKUAT, Google

support through Iridium

What’s happening in your constituency

Find Projects in your Community

IFMIS ACADEMY
Objective - Capacity enhancement and Change
management
Begin with in classroom for building capacity – partner
with KIA, KSMS
Anticipate four modules for IFMIS users
E – learning – Four modules per year
 Linked with user access codes to system to ensure
compliance
Developing the framework – ICTB / Accenture support
Started running workshops – BPR workshops between
march & April had 307 participants.
Conclusion
It is our view that creating an enabling
environment for ICT development –
 Will streamline efficiency and effectiveness in the management
of public financial resources,
Improve public sector governance through the promotion of
greater comprehensiveness and transparency of information
across government institutions
Enable us to provide timely, accurate, and quality data,
whilst concurrently enhancing controls to improve expenditure
management
So as to deliver quality services to the Kenyan people.
Ultimately - enhancing economic development and contributing
to poverty reduction.
Conclusion
With an enabling environment for ICT development -

“The sky is the limit”