Government launches performance contract to boost MSMEs and transform cooperatives
In a significant step towards enhancing accountability and performance within the Ministry of Cooperatives and MSMEs, Deputy Chief of Staff Eliud Owalo, alongside Secretary to the Cabinet Mercy Wanjau, spearheaded negotiations for a new performance contract aimed at institutionalizing performance management across government sectors.
The initiative, driven by the Executive Office of the President, seeks to ensure that all ministries, departments, and agencies are held accountable for their results, effectively cascading responsibilities down to individual scorecards.
The team comprised key officials, including Principal Secretaries from various departments and the Director General of E-Citizen Services, who collaborated with the Ministry of Cooperatives team led by Cabinet Secretary Wycliffe Ambatsa Oparanya.
A focal point of the ministry’s efforts is the refurbishment and equipping of 21 Constituency Industrial Development Centres (CIDCs), designed to foster MSME value chains in sectors such as leather, textiles, construction, dairy, and edible oils. These centres provide essential working spaces for MSMEs, enabling them to thrive and contribute to the economy.
Cabinet Secretary for Cooperatives MSMEs and Development Wycliffe Oparanya highlighted the government’s commitment to support MSMEs, with over Ksh. 60 billion mobilized from development partners through various initiatives including the Kenya Jobs and Economic Transformation (KJET) and the National Youth Opportunities towards Advancement (NYOTA) projects.
In a bid to improve service accessibility, the ministry has successfully onboarded 319 out of 369 services, achieving an impressive 86 percent completion rate. This streamlined approach is set to enhance the delivery of services to Kenyans, particularly in the agricultural sector.
The dairy sector has also seen notable improvements, with the processing capacity of Kenya Cooperative Creameries increasing from 800,000 litres per day in 2022 to 875,000 litres per day in 2024. Additionally, the guaranteed minimum return for milk has risen by 35 percent, from KShs 37 to KShs 50, benefitting local dairy farmers.
The introduction of the Hustler Fund has further bolstered access to affordable credit, with individual subscribers reaching 21.87 million by June 2024 and loans totaling KShs 54.9 billion issued to members. Notably, cooperative registrations have surged by 325 percent reflecting growing interest and investment in the cooperative movement.
As the Executive Office of the President begins a validation exercise to assess the achievements of the 5th Administration over the past two years, Wanjau emphasized the government’s commitment to furthering key objectives, including promoting Kenyan coffee internationally and enhancing governance within the cooperative sector.
This new performance contract represents a pivotal moment for the Ministry of Cooperatives and MSMEs, setting the stage for sustained growth and accountability in the coming fiscal year and beyond.
