Inside Kipchumba Murkomen's Performance Contract With William Ruto

• President William Ruto conducted the performance contract Signing exercise at State House Nairobi on Tuesday, August 1
• The head of state read the riot act to his Cabinet members, warning them against underperformance in the 2023/2024 financial year
• Ruto signed a one-year performance contract with each CS, clearly stating what they should achieve or risk being fired
• Transport Cabinet Secretary Kipchumba Murkomen was tasked with overseeing the maintenance of roads and the construction of new ones

On Tuesday, August 1, President William Ruto graced the signing of performance contracts for Cabinet Secretaries (CSs) at State House, Nairobi.

William Ruto reveals some CSs are clueless

During the ceremony, the head of state cautioned CSs and Principal Secretaries (PSs) against underperformance as he revealed some were clueless about their ministries.

He advised the head of ministries and state departments to read widely and extensively about their jobs so that they can be able to advise him.

"The moment I know more than you in your ministry, then you must begin to understand that something is very wrong. Because you are supposed to advise... how are you going to advise me if you have less information than I do?

I call many PSs and ask them what is going on... they have no clue... and this is your department. That is the job that you have," Ruto said.

The president signed a one-year performance contract with each CS, clearly stating what they should achieve or risk being fired.

Kipchumba Murkomen's performance contract

Transport CS Kipchumba Murkomen's performance contract took effect on July 1.

"The purpose of this performance contract is to establish the basis for ensuring that efficient and effective services are delivered to Kenyans in line with the provisions of the Constitution," part of the contract read.

1. Absorption of development funds

According to his contract, Murkomen was tasked with ensuring his ministry absorbed the KSh 5 billion allocated to development and recurrent programmes.

In the 2023/2023 financial year, the CS should complete projects and activities in his ministry budgeted for.

Murkomen previously revealed that the ministry has several pending projects to complete.

2. Kenya Airways (KQ) strategy

The CS was assigned to develop a Cabinet memo explaining how debt-ridden national carrier Kenya Airways would be turned around.

KQ has been making losses yearly, despite the government pumping billions to rescue it from collapse.

Kenya Airways' loss more than doubled in the financial year ending December 31, 2022, to KSh 38.3 billion.

The net loss increased from KSh 15.8 billion, with the national carrier attributing it to fluctuations in the foreign exchange market, debts and high fuel prices.

3. Roads maintenance

Murkomen committed that his ministry would maintain 45,600km of roads and construct 86km new of high-traffic roads.

From the stated roads, 26km will be upgraded, while 12km will be rehabilitated, The Star reported

The Transport Ministry will oversee the construction of the 50km Lamu-Ijara -Garissa Road.

4. Absorption of World Bank funds

Besides the absorption of funds collected from Kenyan taxpayers, the ministry will be obligated to spend the entire sum of KSh 2.47 billion from the World Bank.

The Roads department will be allocated KSh 2.2 billion, while KSh 27 million will be set aside for the Transport department.

The money will fund the Horn of Africa Gateway Development Project.

5. Generate revenue

During the period under review, Murkomen's ministry will be expected to collect KSh 1.2 billion in revenue.

The funds will be generated from its operations, whereas KSh 60 million would be sourced from the United States (US) government, payment for using the Kenyan airspace.

Further, Murkomen must ensure at least 25% of services in his ministry are digitised.

Njuguna Ndung'u's performance contract

At the same time, Ruto will Fire Treasury CS Njuguna Ndung'u if the cost of living remains high.

Ndung'u was tasked with taming inflation within the government's range or risk losing his job.

"He (Ndung'u) will collaborate with the Central Bank of Kenya (CBK) to maintain the inflation rate at 5% plus or minus 2.5%," the contract stated.

Kenyans have been hit with a high cost of living following the implementation of the Finance Act 2023, which introduced a raft of taxes.

Among them was the doubling of Value Added Tax on fuel which saw the cost of a litre of super petrol, diesel, and kerosene rise to KSh 195.53, KSh 179.67 and KSh 173.44, respectively.