Treasury to penalise State agencies failing to implement development plans

The government, through the National Treasury’s State Department for Economic Planning, has embarked on the formulation of an Economic Planning Policy that will introduce enforcement measures for ministries and state agencies failing to implement development plans such as Vision 2030 and the Medium Term Plan Four.

According to the Principal Secretary in the State Department for Economic Planning, Dr Bonface Makokha, the move is aimed at reining in stalled projects and restoring discipline in public spending.

The shift marks a change in approach by the State Department, which is now pushing for stricter compliance with the economic planning framework. Under the proposed policy, the government will, for the first time, introduce enforcement mechanisms to ensure state entities adhere to approved development blueprints.

Dr Makokha cited complacency as a key factor behind the country’s slow progress in achieving its development agenda, arguing that existing plans have often been treated as optional rather than binding.

"If a plan is like an advisory you eiotehr decide to take it or not even when you deviate nothing happens and i think that is the main weakness that we have and we are trying to adress that by introductionn of economic planning policy which will now strengthen the link between policy planning budgetting and implementation and include enforcement mechanism of if you are not able to stick by the boan then what happens to you," said Dr Makokha.

Among the most consequential measures under consideration is the reduction of budgetary allocations to ministries, departments and agencies that fail to meet implementation targets. This means entities that do not deliver could see their future funding reduced — a sharp departure from the current system, where enforcement remains limited with minimal to no consequences.

"When we have a policy that now allows a very uniform template in how things are done, this will be a motivation because no one wants their plans to be delayed... delayed approvals mean you are delaying implementation," Dr Makokha added.

By enforcing fidelity to development plans, the government hopes to improve project completion rates, enhance value for money, and restore credibility to the economic planning process.

However, the State Department acknowledges that implementation failures have often been linked to delayed funding, procurement bottlenecks and shifting priorities—challenges the new policy will also seek to address.