MICRO AND SMALL ENTERPRISES

AUTHORITY

SENSITIZATION ON THE 18TH CYCLE

PERFOMANCE CONTRACT

JANUARY 2022

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 BACKGROUND ON PERFOMANCE CONTRACT

• Performance Contracting is a key accountability tool

used in Government since 2003 as a means to
improve service delivery in the Public Service.
• It is part of the broader public sector reforms aimed at
improving efficiency and effectiveness in the
management of the Public Service.
 PURPOSE OF PERFOMANCE CONTRACTING

• To define responsibilities and expectations between parties to

achieve mutually agreed results
• To enhance employees’ performance and thus the performance
of the whole institution
• To improve service delivery in the public sector
• To enhance efficiency and effectiveness in public service
 KEY ELEMENTS OF THE PERFORMANCE
CONTRACT

• The following are the key elements of the Model Performance

Contract;
1. Statement of Responsibility
2. Vision Statement, Mission Statement and Strategic Objectives
3. Statement of Strategic Intent by the Board of Directors
4. Commitments and Obligations of the Government
5. Assignment of Weights across Performance Criteria and Indicators
(PC Matrix and notes)
 PERFORMANCE CONTRACT
INDICATORS

• MDAs are evaluated on the following key indicators

1. Financial Stewardship and Discipline
2. Service Delivery
3. Core Mandate
4. Presidential Directives
5. Access to Government Procurement Opportunities
6. Promotion of Local Content
7. Cross Cutting Issues
 PERFORMANCE CONTRACT
INDICATORS
• The Core mandate indicators/targets are derived from the
Authority’s Strategic Plan.
• Performance contracts is one of the tools used by the Authority
to implement its strategic plan
• The Corporate PC is cascaded to all heads of departments and
staff for implementation
• The Authority has adopted a hybrid tool of performance
contracts and balance score card to enhance the performance of
staff
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 PERFOMANCE CONTRACT 2021-2022 TARGETS
S/ PERFORMANCE CRITERIA UNIT OF WT (%) STATUS TARGET
NO. MEASURE PREVIOUS YR
(FY 2021/22)
(FY 2020/21)
A FINANCIAL STEWARDSHIP        
AND DISCIPLINE
A1 Absorption of Allocated Funds % 2 100 100
(GoK)
A2 Absorption of Externally % 3 90 100
Mobilized Funds
A3 Appropriation in Aid (A-in-A) Kshs. 2 2,746,901 2,815,000

A4 Pending Bills % 3 15 ≤1

  Weight Sub-Total   10    

B SERVICE DELIVERY        

B1 Implementation of Citizens’ % 4 100 100

Service Delivery Charter
B2 Business Process Re-engineering % 3 N/A 100

B3 Resolution of Public complaints % 3 97.3 100

  Weight Sub-total   10    
 PERFOMANCE CONTRACT 2021-2022 TARGETS
C CORE MANDATE        

(“Big Four” Initiatives, Vision 2030 Flagship, Post Covid -19 Recovery Strategies and Plans and other
Projects/Programmes (Outcomes Aligned to SDGS and Sector Performance Standards
  Big Four Initiative and Vision 2030 Flagship Projects/Programmes

C1 Decent Workspaces for No. 5 38 20

MSEs provided
C2 Operationalize 20 CIDCs No.   N/A 20

C3 Operationalization model % 4 N/A 100%

for the cold storage
facilities
C4 MSE contribution to No. 5 93,715 62,400
employment enhanced
C5 Kenya Youth Employment % 5 100 100
Opportunities Project  
(KYEOP) Implemented  
  OTHER PROJECTS/PROGRAMMES
 
C6 Registration of MSEs, No. 5 N/A 100
Associations, Umbrella
Organization
C7 MSE Product Development % 5 N/A 100
and value addition
enhanced
C8 MSEs Facilitated to Access No. 5 1,097 1,330
Markets 8
C9 Ease of Doing Business % 2 100 100

C10 Project Completion Rate % 2 60 100

 PERFOMANCE CONTRACT 2021-2022 TARGETS
D Implementation % 2 80 100
of Presidential
Directives
E Access to Kshs. 3 55,260,847 59,850,000
Government
procurement
(AGPO)
F Promotion of local Kshs. 2 146,201,517 79,800,000
content in
procurement
G CROSS –        
CUTTING
G1 Asset management % 1 60 100

G2 Youth No. 1 63 135

Internships/Industr
ial Attachments/
Apprenticeships
G3 Competence % 1 100 100
Development
G4 Disability % 1 50 100
Mainstreaming
G5 Gender % 1 80 100
Mainstreaming
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G6 Prevention of % 1 70 100
Alcohol and Drug
Abuse
 PERFOMANCE CONTRACT 2021-2022 TARGETS

G7 Prevention of HIV % 1 75 100

Infections and
Non-
communicable
Diseases

G8 Safety and % 1 50 100

Security Measures
G9 National Cohesion % 1 100 100
and Values
G10 Road Safety % 1 75 100
Mainstreaming
G11 Corruption % 3 100 100
Prevention
  Weights Sub   13    
Total
  Overall Total   100    
Weight

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 PERFORMANCE MONITORING AND
REPORTING

• Performance Management requires that implementation of PCs

is monitored and reports prepared to assess the extent of
achievement of the set targets to inform Government and
Management the Authority in decision-making.
• It is encouraged that the Authority undertakes self-reporting as
part of advancement of good governance practice
 PERFOMANCE CONTRACT REPORTING TEMPLATE
QUARTER ENDING: 01st July 2020 – 30TH September 2020
DEPARTMENT: FINANCE & ACCOUNTS
NO PERFORMANCE INDICATOR (A) (B) ACTUAL ( C ) VARIANCE EXPLANATION ON
TARGET ACHEIVEMEN FROM TARGET THE VARIANCE
FOR THE T (S) (B-A)
QUARTER
  Performance Contract Indicators    
1 Absorption of Allocated Funds (GOK) 100% 70.68% 29.32% -The authority partially
met the target. This
was mainly due fdelay
in release of exchequer

2 Absorption of Externally Mobilized Funds 100% 14.34% 85.66% -Delayed ‘No

Objections’ from the
  World Bank

-The authority received

funds late into the
quarter
 SUBMISSION OF PERFORMANCE
REPORTS

• The Authority is required to prepare and submit quarterly performance reports

and related evidence to the board by the end of each quarter for onward
forwarding to relevant government agencies..
• Approved quarterly performance reports are submitted online through the PC
system and hard copy of the report is sub,itted to the Inspectorate of State
Corporations & copies to The Principal Secretary State Department of
Trade and the CS Treasury
• In addition to the above performance reports, the Authority shall submit both
quarterly and annual reports online to Specialized Agencies within the
prescribed timelines for respective performance indicators
Performance Indicator
Resolution of Public Complaints
Access to Government Procurement
Opportunities (AGPO)
Disability Mainstreaming
Prevention of HIV Infections
National Cohesion and Values
Corruption Prevention
Gender Mainstreaming
Prevention of Alcohol and Substance
Abuse
Road Safety Mainstreaming
Specialized Agency to Analyze Reports
and Provide Feedback
Commission on Administrative Justice
Public Procurement Regulatory Authority
National Council for Persons With
Disabilities
National Aids Control Council
Directorate of National Cohesion and
Values
Ethics and Anti – Corruption Commission
Ministry of Public Service and Gender,
State Department for Gender
National Authority for the Campaign
Against Alcohol and Drug Abuse
National Transport and Safety Authority
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 ANNUAL PERFORMANCE EVALUATION

• Performance evaluation is the culmination of the process of Performance

Contracting and is carried out in a manner that ensures objectivity and integrity of
the results.
• The Authority undertakes mid-year and end year performance evaluation. Individual
staff performance is evaluated and consolidated into the Corporate performance
evaluation together with relevant evidence.
• The Authority is required to undertake self-performance evaluation (in-house
evaluation) based on the annual achievement for each performance indicator using
the GPCIS Annual Performance Evaluation Module.
• In addition the Authority is expected to provide verifiable documented evidence of
achievement of the agreed performance targets. PSPMMU will undertake actual
verification of reported achievements
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