Ministries, Departments and Agencies Supported by PFMR Secretariat

Teachers Service Commission is clustered together with Ministry of public service, PSC, SRC Pension Treasury and PSCMU. These Implementing Agencies deal with Human resource management in Kenya. Specifically, TSC deals with management of teachers employed to teach in Public Learning Institution ie Primary schools, Secondary schools, CEMESTEA, KISE and Teachers Training Colleges. To effectively manage teaching resource, the Commission has resulted to embrace technology. As at December 2020 the Commission had 335076 teachers on payroll.

The roles of TSC in PFMR strategy 2018-2023 is to Manage the data for teachers so as it can be uploaded in upgraded GHRIS. To ensure the data to uploaded will be credible the Commission was tasked under result Area 1.6 to develop a strategy to carryout payroll cleansing by Accounting all teachers at school level. Under result Area 5 the Commission has a role of strengthening TSC payroll systems. These systems include automation of HR processes under HRMIS, digitizing teachers’ manual files under Electronic Data Management System EDMS and development of new payroll systems to be integrated with HRMIS. These systems are aimed at easing service delivery to teachers. Additionally, TSC has specific role under result area 8.1 to strengthen internal audit function and implement Risk Management Framework. This role includes automation TSC internal Audit and Risk Management Function through Teammate and IDEA systems.

Public Service Performance Management and Monitoring Unit (PSPMMU) is in charge of Management and co-ordination of performance contracting in the public service; Provision of policy direction and strategic leadership for improved performance of the public service; Mainstreaming performance management in the public service; Development of policy framework/guidelines on performance contracting; Provision of technical support on performance contracting to public agencies in both national and county governments; and evaluation of the performance of public institutions. The overall goal is to entrench a culture of performance and accountability in public service.

The Government has used Performance Contracting since 2003 as a key accountability framework in its endeavor to improve service delivery in the public service. Performance Contracting is part of the broader public sector reforms aimed at improving efficiency and effectiveness in public service management.

Public Service Performance Management and Monitoring Unit is implementing Key Result Area 5 on Value for Money, Performance & Accountability in Staffing for Service Delivery under Reform Result Uniform Norms and Standards in Public Service Management entrenched.

The Macro and Fiscal Affairs Department main functions can be subdivided into the following broad areas namely macroeconomic policy formulation, analysis and review; fiscal policies analysis and review; and Monitoring and evaluation of the Annual Budget implementation.

The Department contributes toward the key result area 1 of the PFMR Reform Strategy which seeks to realize predictable and sustainable increase in fiscal space for efficient execution of national and county programmes. To this end the Department’s work plan focuses on two reform results, namely:

  • A fit for purpose, revenue policy and legal framework and rationalized tax expenditures including exemptions; and
  • Credible fiscal frameworks at the national and county level include realistic revenue and expenditure projections consistent with a reduction in the national fiscal deficit over time.

Under GESDeK, the Department plays a lead role in the Disbursement Linked Results (DLR) 2.2 which seeks to realize improved revenue projections. The DLR is assessed through the performance of total domestic (tax plus non-tax) revenue as a percentage of the annual printed budget. In the FY2020/21, the target for the total domestic (tax plus non-tax) revenue was 94.0 percent of the annual printed budget.

The Public Service Commission is one of the core team members, responsible for achievement of:

  • Results Area 1: Sustainable and Predictable Fiscal Space to deliver Government Programs (1.6) Mandates and functions are rationalized at the national and county levels and the growth in the wage and pension bill is limited relative to other expenditure and is maintained below 35% of government revenues
  • Results Area 5: Value for Money, Performance & Accountability in Staffing for Delivery.

The other team members responsible for achievement of this result areas include State Department for Public Service. SRC, GIPE from the NT, Inspectorate of State Corporations and TSC.

The Commission is more specifically responsible for the following reform results:

  • Implementing the rationalization of MDA, SC and County level mandates, functions, structures, establishments and staffing;
  • Ensuring uniform norms and standards are entrenched, for effective performance and productivity of public servants; and
  • Ensuring Public Service HR data is consolidated and consistent.

The planned key steps to achieve the above reform result include:

  • Developing a Package of tools and work plan for rationalizing mandates, functions, structures, establishments and staffing and cleaning payrolls;
  • Ensuring a Regulatory requirement is in place for reporting and sharing of HR data by public service institutions with all public service institutions   holding payroll data in GHRIS;
  • Reviewing institutional and      frameworks     for       public  service management and performance norms and  standards  in  MDAs  and  county governments and develop joint work- plan and tools to address issues;
  • Developing and  submiting  to  Cabinet  a Public  Service  Management  Bill  to provide  clear  institutional  and  legal framework  for  institutional      reforms and enforcement of compliance with uniform   norms   and   standards   in public  service  management  at  both levels of Government; and
  • Ensuring an HR Master Plan is in place which comprehensively identifies skills, gaps and scarcities in the medium to longterm, and human    capital development and succession plans across the public sector.                              

The main roles of the Public Investment Management Department / The National Treasury are; Public Investment Management Policy and oversight where a draft PIM policy and the regulations have been developed; Designing, developing and maintaining an efficient, effective and reliable Public Investment Management Information System; Developing standards, methodologies, and tools for appraisal of project concept notes, pre-feasibility and feasibility studies; Independent appraisal of concept notes, pre-feasibility and feasibility studies for medium, large and mega projects.

Under the PFMR Strategy 2018-2023, PIM takes Result Area 2 which addresses the strategic and transparent spending on Public Investment and service delivery in line with the National and county Policy Commitments. The expected outcome is the improved linkage of public spending to national and county government priorities to deliver efficient and effective investments and services.

Salaries and Remuneration Commission (SRC) is established under Article 230 of the Constitution of Kenya (CoK 2010) to:

  • Set and regularly review the remuneration and benefits of all State Officers; and
  • Advise the National and County Governments on the remuneration and benefits of all other Public Officers

SRC plays a critical role in delivering key reforms in PFMR Strategy 2018 -2023 Specifically;


Results Area 5:   Value for money, performance & accountability in staffing for service delivery.

The strategy outcome from Results Area 5 is value for money, performance and accountability   in staffing for service delivery, with MDAs and Counties able to control and manage their wage bill.

To enable this, uniform norms and standards have been entrenched, for effective performance and productivity of public servants. Public sector human resource information is consolidated, consistent and up to date and salaries are paid through integrated systems which have effective payroll controls.

Under this result area, SRC is expected to play critical role in both results 5.1 and 5.2 ;

  • 5.1 : Public Service Human Resource (HR) data is consolidated and consistent
  • 5.2 : Public Sector Institutions Payrolls are fully automated, have effective controls and are integrated with GHRIS and IFMIS

Intergovernmental Fiscal Relations Department (IGFRD) is a department under the Directorate of Budget Fiscal and Economic Affairs. The Department is charged with the responsibility of the preparation of Division of Revenue Bill, County Allocation of Revenue Bill, Cash Disbursement Schedule and management of the Equalization Fund. In addition, the department also reviews policy and legal frameworks governing County Governments public finances, monitors and analyses budget and financial reports for county governments as well as capacity building. Within the PFMR Strategy, 2018-2023, the Department falls under two Key Result Areas (KRAs) namely; KRA 1: Sustainable and Predictable Fiscal space to deliver government programmes and KRA 2: Strategic and Transparent Spending on Public Investment and Service Delivery in line with National and County Policy Commitments.

The core mandate of the Commission on Revenue Allocation is to recommend the basis for equitable sharing of revenues raised nationally between the national and the county governments, and among the county governments.

The Commission’s constitutional mandate also entails giving recommendations on matters concerning financing and financial management of county governments. Further, the Commission is required under Article 216(3)(b) to define and enhance the revenue sources of national and county governments when appropriate.

Flowing from this mandate, Under the PFMR Reform Strategy 2018-2023, the Commission plays a role within Key Result Area 1 on Predictable and sustainable increase in fiscal space for efficient execution of national and county programmes.

More specifically, the Commission’s role under the PFMR Strategy is centered around strengthening county assembly’s legislative capacity on OSR. Additionally, the Commission is conducting an own sources revenue potential study. These activities seek to encourage and support county governments to increase their own revenue sources and enhance predictability.

The Commission’s role further seeks to address the below potential revenue collection at the county level and inadequate policy, legal framework, and administration.

The Government Digital Payments Unit is mandated to digitize all payments into Government, to increase revenue collection, minimize the cost of collection and enhance service delivery. It ensures that Citizens, non-Citizens and Business entities can access Government Services online and make Payments electronically and conveniently, using their preferred method of payment, 24 hours a day and from wherever they may be in the world.

By April 2013, only a few government services were partially digitized and most receipts by the government were manual. A survey done then found that over a third of the payments were cash-based, presenting a high opportunity for leakage and abuse of the system, in addition to high cost of collection.

To address these loopholes, His Excellency The President issued a directive in November 2013 that all payments into government be digitized. This culminated in the formation of a cabinet committee chaired by His Excellency The Deputy President and thereafter Government Digital Payments Taskforce and the Taskforce Secretariat was established vide Gazette Notice No. 2725 of April 24, 2014.

The eCitizen portal, was subsequently developed as a payment gateway and integrated with electronic payment platforms including mobile telephone money payment services. The portal was entrenched in a Gazette Notice No. 9290 of 30th December 2014 and the mandate of the Taskforce later enhanced through Gazette Notice No. 3299 of 13th May 2015. On the 12th January 2018, the Unit was moved from the Presidency to the National Treasury under the Directorate of Accounting Services and Quality Assurance and reports to a Steering Committee chaired by the PS/National Treasury created through Gazette Notice No. 400 of the same date.

GDP Unit (eCitizen) falls under Key Result Area 2 of National Treasury’s Strategic Plan, the Medium Term Plan III, and is one of the Government’s Digital Finance Flagship Projects. Other than providing resource mobilization for Government and enhancing service delivery to Kenyans, eCitizen is a facilitator in providing an open (eKYC), digitized financial system, powering a digitally driven and inclusive economy. NT’s MTPIII (2018-2022) recommends that ‘All P2G and B2G payments be digital’ and has tasked the Unit with its implementation. The eCitizen programme cuts across the Social and Economic Pillar of the Vision 2030, and is linked directly to Technology and Innovation as well as Public Sector Reforms, which are some of the principles of the Vision.

The National Treasury though IFMIS system has provided a financial system through which budgeting and planning, expenditure management and reporting are undertaken.IFMIS has made it possible for integration with other government system such as KRA and CBK.

IFMIS play a great task in supporting almost all the result areas but majorly in result area 7 where it has finalized the automation of all the agreed reporting templates.

Public Procurement Regulatory Authority (PPRA) is established under Section 8 of the Public Procurement and Asset Disposal Act, 2015; to monitor, assess, audit, and evaluate the overall functioning of the public procurement and asset disposal system in Kenya. In addition, PPRA is mandated to act on and investigate complaints, provide advice and technical support, as well as enforcement of standards developed under the Act.

The PPRA is responsible for enabling and delivering results under the Result Area 4: Value for money in procurement and contract management; as an authorizer and a result team member at National level. This result area is aimed at increasing transparency and efficiency in public procurement processes and contract management in service delivery infrastructure and inputs.  Counties, MDAs and State Corporations (SCs) conduct public procurement processes transparently, in a timely and efficient manner, using automated procurement systems.  They   negotiate and manage the implementation of complex contracts effectively in line with original cost estimates. The result area is divided into two:

4.1 Public Procurement processes are conducted by MDAS, SCs and Counties in a timely and efficient manner using automated procurement systems without causing disruption to service delivery with integrity, transparency and in accordance with the law and when malfeasance occurs the appropriate sanctions are applied.

4.2 MDAS, SCs and Counties negotiate and manage the implementation of complex contracts effectively ensuring they are delivered as planned with value for money.

The Directorate in its pursuit of public finance reforms is guided by result 6.2 of the PFMR strategy. The result is “facilities at both the national and county level, manage and report on resources transparently and efficiently