Pair public final

PUBLIC ADMINISTRATION ANDINTERNATIONAL RELATIONS SECTOR

2016/17 – 2018/19MTEF BUDGET PRESENTATION

Presented By:Dr (Eng) Karanja Kibicho, CBS

Principal Secretary , Ministry of Foreign Affairs andInternational Trade

20TH NOVEMBER, 2015

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Outline1. Introduction/Sector Composition2. Sector Vision and Mission3. Strategic Objectives4. Trends in Funding, 2012/13–2014/155. Trends in Expenditure, 2012/13–2014/156. Performance Review of Programmes (Key Sector Achievements)7. Sector Medium Term Priorities, 2016/17–2018/198. Sector Financing Plan

Sector Programmes for 2016/17–2018/19 Financial Requirement/Allocation for 2016/17–2018/19

9. Key Outputs for the Medium Term 2016/17–2018/1910.Cross Sector Linkages11.Sector Emerging Issues and Challenges12.Recommendations13.Conclusion

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INTRODUCTION/SECTOR COMPOSITIONThe PAIR Sector Comprises 13 sub-sectors:

1. The Presidency2. State Department of Planning3. State Department for Devolution4. Foreign Affairs and International Trade5. National Treasury6. Parliamentary Service Commission7. National Assembly8. Commission on Revenue Allocation9. Public Service Commission10. Salaries and Remuneration Commission11. Office of the Auditor General12. Controller of Budget13. Commission on Administrative Justice

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INTRODUCTION/SECTOR COMPOSITION … (cont’d)

Semi-Autonomous Government Agencies

• The sector also hosts 37 Semi-AutonomousGovernment Agencies (SAGAs).

SECTOR VISION AND MISSION

Sector VisionExcellence in public policy and devolution management,

resource mobilization, governance and foreign relations.

Sector MissionTo provide overall policy, leadership and oversight ineconomic and devolution management, public servicedelivery, resource mobilization and implementation ofKenya’s foreign policy.

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SECTOR OBJECTIVESThe Sector will be guided by the following strategic objectives:1. Provide overall policy and leadership direction for national

prosperity;2. Promote prudent economic, financial and fiscal management

for growth and economic stability;3. Promote Kenya’s international trade and articulate Kenya’s

Foreign Policy;4. Promote good governance and accountability in the management

of public affairs at the national and county Governments levels;5. Provide quality, efficient, effective, results based and ethical

public services for national development;6. Enhance humanitarian response and affirmative action in ASALs7. Enhance Intergovernmental Relations;8. Promote a competitive business environment and public private

partnership

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SECTOR OBJECTIVES (cont’d):9. Promote public policy formulation, planning, coordination,

implementation, monitoring and evaluation of public projects fornational development;

10. Promote gender and youth empowerment, livelihoods for thevulnerable groups and marginalized areas;

11. Strengthen national and county governments capacity forimplementation of devolution;

12. Attract, retain and develop competent human resource anddeepen Public Service reforms for national competitiveness andtransformation;

13. Strengthen national legislation and oversight over publicagencies and promote good governance;

14. Promote harmony, equity and fair remuneration for attractionand retention of skilled staff in the public service; and

15. Oversee and facilitate implementation of the Constitution ofKenya, 2010, the Kenya Vision 2030 and its Medium Term Plansfor national transformation. 7

TRENDS IN FUNDING, 2012/13 – 2014/15 (RECURRENT)

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SubsectorApproved Estimates (Kshs. Millions) Actual Expenditure (Kshs. Millions)

2012/13 2013/14 2014/15 2012/13 2013/14 2014/15

Presidency 5,851.49 5,214.77 7,218.64 5,356.28 4,807.24 6,446.97State Department ofPlanning 11,229.78 12,169.10 15,319.70 11,037.00 11,826.70 14,704.20State Department forDevolution 27,923.30 4,921.95 4,336.83 16,456.30 4,728.99 4,321.99Foreign Affairs andInternational Relations 11,153.00 12,267.55 13,415.35 10,484.00 11,767.75 12,588.12

The National Treasury 22,552.08 24,663.35 29,814.51 24,132.77 23,068.70 29,349.83Parliamentary ServiceCommission 12,979.00 22,649.00 22,375.00 11,604.00 20,762.00 21,388.00Commission on RevenueAllocation 323.00 268.00 271.00 258.00 283.00 263.00

Public Service Commission 773.00 676.00 811.00 773.00 679.00 786.00Salaries and remunerationCommission 492.70 506.60 840.10 344.60 431.50 661.90

Auditor General 1,940.00 2,242.60 2,805.70 1,730.10 2,025.00 2,669.80

Controller of Budget 272.10 341.30 363.50 137.40 282.80 338.30Commission ofAdministrative Justice 188.44 254.73 355.78 189.59 244.26 318.85

Total 95,677.89 86,174.95 97,927.11 82,503.04 80,906.94 93,836.96

TRENDS IN FUNDING, 2012/13 – 2014/15 (DEVELOPMENT)

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Approved Budget (Kshs. Millions) Actual Expenditure (Kshs. Millions)

Sub Sector 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15Presidency 2,705.53 1,447.56 1,236.63 2,304.01 1,438.14 1,057.24

State Department ofPlanning 29,998.10 50,584.50 56,110.00 22,943.67 39,157.53 58,319.00

State Department forDevolution 5,420.13 5,969.82 9.72 4,788.20 4,321.82 2.25

Foreign Affairs andInternationalRelations 445.00 341.50 1,625.70 372.00 284.60 1,227.60

The National Treasury 20,497.53 10,520.64 41,489.29 11,567.04 7,287.83 27,199.32

Parliamentary ServiceCommission 2,263 2,435 4,075 1,563 1,405 -

Commission onRevenue Allocation 22.00 2.00 6.00 18.00 2.00 3.00

Public ServiceCommission 35.00 207.00 168.00 49.00 206.00 163.00Auditor General 66.5 1043.5 510.3 54.3 1022.1 80.4

Controller of Budget 109 30.2 32.4 103.2 23.9 30.5

Commission ofAdministrative Justice 27.8 42.63 44.12 26.63 39.91 36.57Total

61,589.59 72,624.35 105,307.16 43,789.05 55,188.83 88,118.88

Performance Review of Programmes (Key SectorAchievements)…/1

The resources allocated in 2012/13 - 2014/15 Medium Termperiod facilitated the sector to achieve the following:

• Distributed 32 mobile clinics to counties• Conducted special audit and routine audits for state

corporations• Held the 6th Global Entrepreneurship Summit (GES)• Published and launched the Kenya Foreign Policy and Kenya

Diaspora Policy• Deepened Kenya’s foreign relations and engagement through

coordinating outbound and inbound state/official visits andsigning of bilateral frameworks of cooperation

• Established and operationalized new diplomatic Missionsincluding construction and refurbishment of governmentowned properties abroad.

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Performance Review of Programmes (Key SectorAchievements) …/ 2

• Promoted International Trade through negotiation of severalbilateral trade agreements and MOUs

• Conducted capacity building of various Diplomats in theregion in various fields such as trade negotiation, peace andsecurity among others

• Conducted capacity building to Government of South SudanOfficials in public administration

• Provided support to county governments on developmentplanning and protocol

• Coordinated implementation of area-based communitydevelopment programmes such as: Community Dev’t TrustFund programmes, Community Empowerment & InstitutionalSupport Project, Programme for Agriculture & Livelihoods inWestern Communities, among others. Published anddisseminated macroeconomic policies and development plans

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Performance Review of Programmes (Key SectorAchievements) …/3

• Published Public Policy Research and Analysis reports• Tracked and reported on implementation of Second Medium

Term Plan through Annual progress reports• Held campaigns on population control measures• Increased intake and training of youth through the NYS

programme• Continued to empower Youth, Women and PWDs Groups

through catalytic fund• Produced annual, quarterly and monthly statistical

publications and reports• Transformed public service through various interventions e.g

placing MDAs on performance contracts, review of schemes ofservice, establishment of Huduma Centres

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• Supported devolution process through development anddissemination of Civic Education Curriculum, County modellaws, Public participation and Devolution sector policy

• Provided relief food and non-food materials to non-foodsecure communities and people affected by emergencies

• Provided humanitarian support and resettled IDPs• Implemented drought management initiatives in ASALs• Developed National Public-Private Partnerships Regulations• Enhanced capacity for internal audits through development of

Internal audit guidelines and Value for Money Standards &Guidelines

• Rolled out IFMIS module to all counties

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• Reviewed Legal and regulatory frameworks governing publicprocurement

• Conducted capacity building among institutions implementingpublic financial management reforms

• Enhanced and rolled out electronic project managementinformation system (e-ProMIS) to MDAs and Counties.

• Built capacity of the Market Competition Authority so as toeliminate restrictive trade practices through development ofmerger enforcement and consumer guidelines/ sensitization

• Enacted laws and provided oversight over usage of publicresources

• Developed and distributed model county revenue laws toguide counties in drafting of legislation

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• Made recommendation on division of revenue betweennational and county governments

• Built capacity of County Public Service Boards and CountyAssembly Service Boards

• Conducted Job re-evaluation for State Officers in CountyGovernments

• Conducted national and county audits, and specialized audits• Handled and resolved public complaints through the

Ombudsman office

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SECTOR MEDIUM TERM PRIORITIES …/1

1. Provide policy direction and coordination of functions ofGovernment Ministries, Departments and Agencies.

2. Maintain macroeconomic stability for sustained economic growthand development.

3. Expand and strengthen Kenya’s diplomatic representation andengagement for increased political and socio-economicdevelopment.

4. Promote international trade and investments for globalcompetiveness, national development and shared prosperity

5. Entrenchment of devolution for enhanced service delivery andequitable development.

6. Coordinate implementation and tracking of the Vision 2030’sSecond Medium Term Plan [MTP II], 2013-2017, for nationaltransformation.

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SECTOR MEDIUM TERM PRIORITIES …/ 2

7. Strengthen human resource capacity in the national and countygovernments for effective service delivery.

8. Promote competition for consumer and business protection.9. Promote gender equality and socio-economic empowerment of

women and the youth. Resettlement of IDPs and other vulnerablegroups.

10. Promote equitable revenue sharing between national and countygovernments, and among county governments.

11. Promote financial management and enhance revenue for bothnational and county governments.

12. Transform human resource in Public Service to enhanceprofessionalism, efficiency and effectiveness in service delivery.

13. Enhancement of Public Service delivery.

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SECTOR MEDIUM TERM PRIORITIES …/3

14. Provide and disseminate comprehensive, integrated, accurate andtimely national statistics for policy formulation.

15. Promote accelerated and sustained socio-economic developmentin arid and semi-arid lands and end drought emergencies in KenyaStrengthen legislative capacity, representation and oversightfunction of Parliament.

16. Uphold and promote the national values and principles ofgovernance and values and principles of the Public Service.

17. Ensure a competitive and fiscally sustainable public wage bill.18. Promote accountability in the use of public resources through

timely audit reports.19. Enhance monitoring and reporting of budget implementation of

national and county government to Parliament.20. Address maladministration and promote fairness in public service

delivery. 18

Sector Financing Plan:Sector Programmes For 2016/17-2018/19 …/1

The Following are the Sector programmes for 2016/17 to2018/19- Programme Based Budgeting approach based oninternational standards

1. State House Affairs2. Deputy President Services3. Cabinet Affairs4. Government Advisory Services5. Economic Policy and National Planning6. National Statistical Information Services7. Gender & Youth Empowerment8. Public Service Transformation9. Monitoring and Evaluation Services10. General Administration Planning and Support Services –

Planning11. Devolution Services12. Special Initiatives

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13. Accelerated ASAL Development14. General Administration Services – Devolution15. General Administration, Planning and Support Services –

Foreign Affairs16. Foreign Relations and Diplomacy17. International Trade and Investments18. General Administration, Planning and Support Services –

National Treasury19. Public Financial Management20. Economic and Financial Policy Formulation and

Management21. Market Competition and Creation of an Enabling Business

Environment20


22. Senate Affairs23. Legislation, Representation and oversight24. General Administration, Planning and Support Services –

Parliamentary Service Commission25. Inter Government Revenue and Financial Matters26. General Administration, Planning & Support Services –

Public Service27. Human Resource Management & Development28. Governance and National Values29. Salaries and Benefits Management30. Audit Services31. Control and Management of Public finances32. Promotion of Administrative Justice 21

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Sector Financing Plan:Financial Requirements & Allocation for

2016/17 - 2018/19Baseline Requirements

(Kshs. Millions)

Allocations

(Kshs. Millions)

ResourceGap

Public Administrationand InternationalRelations

2015/16 2016/17 2017/18 2018/19 2016/17 2017/18 2018/19 2016/17

Vote:

Recurrent 115,465.13 189,279.98 205,824.56 220,835.57 121,888.00 144,888.00 149,332.00 67,391.98

Development 127,889.00 158,427.00 165,951.13 165,217.14 124,277.00 143,094.00 148,809.00 64,150.00

Total 243,354.13 347,706.98 371,775.69 386,052.72 246,165.00 287,982.00 298,141.00 131,541.98

Financial Requirements by Sub-sector for 2016/17-2018/19 (Recurrent)

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Sub Sector2015/16 Printed

Estimates(Kshs Millions)

2016/17 Requirement(Kshs Millions)

2016/17 Allocation(Kshs Millions) Resource Gap

Presidency 5,950.56 10,367 6,219.68 4,147.32

State Department for planning 19,791.62 29,786 20,511.889,274.12

State Department for Devolution 2,300.79 13,174 3,671.719,502.27

Foreign Affairs and InternationalRelations 13,135.86 23,903 13,297.91

10,605.09The National Treasury 43,216.46 73,969 46,509.40 27,459.61National Assembly 15,156.59 16,076 15,447.52 628.48Parliamentary ServiceCommission 8,920.41 10,618 9,058.97

1,560.00Commission on RevenueAllocation 345.58 681 365.35

315.65Public Service Commission 1,126.40 2,266 1,202.60 1,063.40Salaries and remunerationCommission 722.83 884.6 559.52

325.08Auditor General 3,736.49 6,143 3,950.08 2,192.92Controller of Budget 580.83 618.38 598.89 19.49Commission of AdministrativeJustice 480.71 794 493.49

300.51Total 115,465.13 189,279.98 121,888.00 67,391.98

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Financial Requirements for 2016/17-2018/19 (Development)

Sub Sector

2015/16 PrintedEstimates

(Kshs. Millions)

2016/17Requirement

(Kshs. Millions)

2016/17Allocation

(Kshs. Millions)Resource Gap

Presidency1,846 4,855 1,846

3,009

State Department forplanning

61,713 91,720 61,71330,007

State Department forDevolution

9,389 19,971 9,38910,582

Foreign Affairs andInternationalRelations

1,402 12,168 1,34910,819

The NationalTreasury

49,770 88,377 46,21142,166

ParliamentaryService Commission

3,200 3,800 3,200600

Public ServiceCommission

167 350 167183

Auditor General402 2,110 402

1,708Total 127,889 223,351 124,277 99,074

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Resource Requirements and Allocations by EconomicClassification – Recurrent

Baseline Requirements(Kshs. Millions)

Allocations(Kshs. Millions)

PublicAdministrationandInternationalRelations

2015/16 2016/17 2017/18 2018/19 2016/17 2017/18 2018/19

Gross115,465 189,279.98 205,824.56 220,835.57 121,888.00 144,888.00 149,332.00

AIA 1,410 1,495.24 1,551.45 1,610.40 342.00 342.00 342.00Net 114,055 187,785.97 204,273.11 219,225.17 121,546.00 144,547.00 148,990.00Compensationto Employees 43,981 71,317.67 80,724.46 87,169.11 44,931.00 56,763.00 58,466.00

Transfers 24,714 35,525.69 37,366.39 36,805.00 25,613.00 25,613.00 26,557.00OtherRecurrent (O& M)

46,770 82,438.10 87,733.31 96,861.63 51,344.00 62,512.00 64,309.00

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Resource Requirements and Allocations by EconomicClassification – Development

Baseline Requirement(Kshs. Millions)

Allocation(Kshs. Millions)

PublicAdministration andInternationalRelations

2015/16 2016/17 2017/18 2018/19 2016/17 2017/18 2018/19

Gross 127,889.00 158,427.50 165,951.13 165,217.14 124,277.19 143,094.22 148,809.31

GOK 100,640.00 142,025.23 152,181.96 150,617.97 97,080.22 115,897.25 121,612.34

Loans 3,802.00 1,977.82 1,977.82 1,977.82 3,801.97 3,801.97 3,801.97

Grants 23,391.00 14,367.45 11,735.35 12,565.35 23,339.00 23,339.00 23,339.00

Local A.I.A 56.00 56.00 56.00 56.00 56.00 56.00 56.00

Key Outputs for the Medium Term, 2016/17 – 2018/19 …/1The following are the key medium term outputs for the Sector:• Improved State Houses and State Lodges infrastructure• Effective communication of Presidential functions and information• Strengthened diplomatic representation and engagement.• New Kenya missions abroad opened and honorary consuls appointed• Export markets in foreign markets established and increased Foreign

Direct Investment through international trade and investmentpromotions• Annual Presidential Report on compliance to article 10 and 232 of the

constitution• Enhanced Kenya’s image, prestige and global competitiveness• Efficiency monitoring system audits in identified MDAs conducted• Effective policy advisory through the Cabinet Office• Quarterly reports on Policy advisories to State Corporations• Macroeconomic policies and plans developed• Statistical publications and reports produced and disseminated

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Key Outputs for the Medium Term, 2016/17 – 2018/19 …/2

• Public Policy Research and Analysis publication produced• Monitoring and Evaluation reports prepared and disseminated

(Annual Progress Reports, Public Expenditure Reviews, Mid-Term andEnd-Term Evaluation of MTP II)• Monitoring and evaluation of Vision 2030 flagship projects conducted• Socio economic empowerment of communities through

implementation of targeted projects and programmes Women, Youthand PWDs Affirmative services provided• Youth mentorship and sensitization services provided• National youth training services provided• Youth empowerment services provided• Gender capacity building services provided• Human Resource Management and Development services• Public service delivery transformation through Huduma Kenya

Centres28


• County development planning support services provided• Intergovernmental relations guidelines disseminated in counties• County assets and liabilities valued and verified, functions unbundled

and county functions transferred• Successful Annual Devolution and Sector Conferences held• Institutional framework to facilitate implementation of civic

engagement programmes established Support to resettlement ofIDPs

• Disaster preparedness and mitigation coordinated• Structure for Ending Drought Emergencies both at the National and

County level coordinated• Devolution and ASALs policies developed and implemented• National Budget produced• External resources mobilized• Accounting systems and reporting format reviewed and developed

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• Integrated Financial Management Information System re-engineered• Access to Government Procurement Opportunities policy

implemented• Nairobi International Financial Centre and diplomatic hub established• Economic and financial policies formulated; fiscal and monetary

policies monitored and analyzed• Electronic project management information system (e-ProMIS)

enhanced and rolled out to MDAs and Counties• Annual debt report & medium term debt strategy published• Affordable credit disbursed to micro, small and medium–sized

enterprises• Parliamentary Bills introduced and Motions considered• Parliamentary oversight over usage of public resources provided• Recommendations on vertical and horizontal division of revenue

formulas30


• Operationalization of the Mwongozo code of governance, nationalcohesion and values

• Human resource management policies developed /reviewed• Guidelines on norms and standards of public service developed and

reviewed• Comprehensive job evaluation report for the entire Public Service• Strengthened legal framework for management of Remuneration

and Benefits• Audit reports issued by the Auditor General’s office• Timely approval of MDAs exchequer requisitions by the Controller of

Budget• Quarterly production of the budget implementation review reports -

COB• Addressed and/or resolved of public complaints on

maladministration of justice.• Increased Ombudsman service delivery points 31

CROSS SECTOR LINKAGES• The Sector mandates cuts across all other sectors.• The Sector Provides overall leadership and policy

direction in the conduct and management of publicaffairs.• It coordinates Government business, foreign policy and

relations, planning and budgeting, devolution affairs,mobilization and management of both financial andhuman resources, remuneration and benefitsmanagement and general development of the publicservice

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EMERGING ISSUES & CHALLENGES …/1

The Sector has identified the following emerging issues &challenges that may affect the implementation of programmes:

• Macroeconomic instability – such as high inflation andinterest rates and depreciation of the local currency – canlead to higher prices of goods and services and reducedrevenue collection;

• Huge Public Service Wage Bill, which consumes about 50%of ordinary revenue, reduces funds available fordevelopment;

• Litigations by institutions, individuals and groups that lead tohigh cost to government and delays in implementation ofpolicies and programmes

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EMERGING ISSUES & CHALLENGES …/2

• The fluctuation of the Kenyan Shilling against the majorcurrencies and volatility of the exchange rate markets has ledto foreign exchange losses emanating from remitting funds toKenyan Missions abroad, debt repayment and payment ofmandatory subscriptions to international organizations;

• The increasing frequency and intensity of impacts of climatechange which may result to vulnerability of the communities,thus necessitating reallocation of resources from priorityprogrammes;

• Understaffing in some MDAs as a result of re-organisation ofthe Government in 2013

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RECOMMENDATIONS …/1

• Lobby for adequate resources to ensure implementation ofincreased number of programmes as a result of expandedSector mandate

• Fast tract implementation of the ambitious sector priorities byinvolving the Private Sector through the PPP framework. Thiswould facilitate funding of some priority projects that wouldnormally be shelved due to scarcity of public resources.

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RECOMMENDATIONS …/2

• Enhancing staff capacity and development through provision ofadequate training resources to meet the demands of a modernpublic service; and

• Strengthen the monitoring and evaluation of projects andprogrammes to enhance transparency, accountability andtimely generation of status reports for projects underimplementation- plans under way to harmonize the e-PROMISand the National Integrated Monitoring and Evaluation system.

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CONCLUSION

• The Sector has outlined the key targets it intends to achieve within the2016/17 to 2018/19 MTEF period through implementation of 32programmes that are geared towards achieving a diverse set of definedobjectives, outcomes and outputs.

• The Sector recognizes the need to progressively respond to theemerging issues and challenges through putting in place variousmeasures aimed at enhancing service delivery within the varioussubsectors and autonomous and semi-autonomous agencies.

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THE END

Thank You For YourAttention