Hard truths.

News

Kindiki orders 30-day review of Kenya’s external resources policy

Speaking during the 15th Development Partnership Forum in Karen on Wednesday, Kindiki said Ministries, Departments and Agencies should integrate youth employment targets into their annual performance contracts...

By
3 min read
Kindiki orders 30-day review of Kenya’s external resources policy

Deputy President Kithure Kindiki has directed government agencies to set clear targets for youth employment in their annual performance contracts, saying development partnerships must deliver jobs, business opportunities, skills and access to financing for young Kenyans.

Speaking during the 15th Development Partnership Forum in Karen on Wednesday, Kindiki said Ministries, Departments and Agencies should make youth employment a clear part of their performance plans and sector programmes.

He said the targets should focus on areas with the potential to create opportunities for young people, including agriculture, manufacturing, the digital economy, tourism and the blue economy.

“I, therefore, call upon Ministries, Departments and Agencies to integrate clear youth employment targets into their annual performance contracts and sector plans,” he said.

Kindiki also called on development partners and the private sector to work with the government in designing and funding youth programmes.

He said such partnerships should help youth-led micro, small and medium enterprises gain access to markets and mentorship, while also supporting programmes aimed at creating employment.

The Deputy President pointed to the National Youth Opportunities Towards Advancement Project (NYOTA), saying the programme had reached close to one million young people during its first phase.

He said NYOTA is now being expanded to reach two million youth following additional financing from the World Bank and the Government of Kenya.

Kindiki said NYOTA and the Kenya Jobs and Economic Transformation (KJET) project were among the programmes being used by the government to expand employment opportunities for young people.

He also listed Kazi kwa Ground, Kazi Majuu, Kazi Mtandaoni, affordable housing, Vijana Baharini and increased enrolment in Technical and Vocational Education and Training (TVET) institutions among the initiatives forming part of the government’s employment strategy.

At the forum, Kindiki also directed the National Treasury to speed up the review of the Kenya External Resources Policy (KERP) and present the revised policy to Cabinet within 30 days.

“The reviewed policy will provide clear guidance in coordination, ownership, transparency, accountability, debt sustainability and expanded External financing,” he said.

The Kenya External Resources Policy was introduced in 2014 to guide the sourcing and management of official development assistance, including loans, grants and technical assistance.

The National Treasury started the formal review of the policy in 2024, pointing to changes in the economic and financial environment, debt sustainability concerns, changing donor priorities and the need to improve transparency and efficiency in the management of external resources.

A draft of the revised KERP states that the 2014 policy no longer fully matches the current development finance environment. The proposed changes seek to update the framework used to coordinate external resources with Kenya’s national development priorities.

Kindiki further raised concern over the rate at which development assistance is being used, saying there was a continued difference between the funds development partners commit and the money that is eventually disbursed and absorbed by government agencies and counties.

“It is a matter of concern... that a persistent gap continues to exist between resources committed by our development partners and resources actually disbursed and absorbed,” he said.

He called for an implementation matrix to be prepared within 15 days covering areas already agreed upon by the government and development partners.

Kindiki said the next Development Partnership Forum should be used to assess whether there had been measurable progress in the disbursement and absorption of development funds.

More from NewsBrowse the section
Continue to the next story →