Kenya is set for sweeping public service reforms that will tie pay and career progression to performance, fully digitise government operations, and strengthen revenue mobilisation as part of a productivity-led transformation agenda.
The resolutions were adopted during the First National Productivity and Performance Conference held from June 17 to 19, 2026, at the Kenya School of Government, Lower Kabete Campus in Nairobi, bringing together representatives from the national and county governments, Parliament, the Judiciary, constitutional commissions, state corporations, development partners, the private sector, academia and civil society.
In a joint statement issued by the Salaries and Remuneration Commission, delegates noted that Kenya continues to face fiscal pressure driven by constrained revenues, rising expenditure demands and expanding public service needs, while productivity growth has lagged behind spending.
The conference acknowledged gains in public financial management, performance contracting and digital transformation, but flagged persistent inefficiencies, weak productivity measurement systems and a limited link between pay and performance.
A central resolution requires the government to, by June 2027, develop and operationalise all legal, policy and institutional frameworks needed to mainstream productivity across planning, budgeting, remuneration, service delivery and accountability systems.
Delegates further resolved that public sector pay systems will gradually shift from automatic salary increments and promotions to productivity and performance-based remuneration across ministries, departments and agencies at both national and county levels.
The reforms are expected to significantly reshape how public servants are evaluated, with the framework targeting an increase in annual labour productivity growth from 1.38 per cent to at least 20 per cent by June 2027.
The conference also called for a major overhaul of the performance contracting system, with productivity indicators set to rise from 3 per cent to at least 50 per cent by June 2028. The changes are aimed at strengthening service delivery, fiscal sustainability and accountability.
On governance and human capital, delegates agreed to strengthen institutional culture, ethics and change management, raising compliance with constitutional values from 46.5 per cent to at least 75 per cent by June 2028.
To boost fiscal stability, the conference resolved to improve domestic revenue collection at both national and county levels, targeting an increase in the revenue-to-GDP ratio from 14.6 per cent to 20 per cent by June 2028, alongside stricter public resource management.
Digital transformation featured prominently, with delegates agreeing to fully automate and digitise public services and internal government operations to eliminate inefficiencies and improve transparency and citizen experience.
To sustain implementation, the conference proposed a permanent governance and coordination framework bringing together government, constitutional bodies, development partners, academia, the private sector and civil society to oversee productivity reforms.
A steering committee has been tasked with producing a detailed implementation matrix within 60 days, outlining timelines, performance indicators, responsibilities and financing requirements.
The conference will also be institutionalised as an annual accountability platform to track progress, share best practices and reinforce commitment to productivity-led growth.
The resolutions signal a structural shift in Kenya’s public sector management, moving towards performance-based pay, digitised service delivery and tighter links between productivity, spending and results.