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Treasury Cabinet Secretary, Njuguna Ndung'u, finds himself facing a tough challenge as he grapples with stringent conditions in order to retain his position following the signing of a performance contract at State House on August 2.
In a bid to enhance accountability and improve public service delivery, President William Ruto introduced performance contracts for all Cabinet secretaries.
The move aims to ensure that top government officials are held accountable for their actions and work diligently to achieve the nation's development goals.
Ambitious targets
Under the newly signed performance contract, Mr. Ndung'u is required to meet a series of ambitious targets, covering key areas of economic growth, fiscal responsibility, and financial stability.
These targets require significant improvements in revenue collection, prudent fiscal management, and the effective allocation of resources to critical sectors.
One of the major challenges Ndung'u faces is the pressing need to bring down inflation and the cost of living.
The CS is expected to develop and implement a macroeconomic framework that fosters strong economic growth of 5.5% in 2023 and collaborate with the Central Bank of Kenya to maintain the inflation rate at 5% (+/-2.5%).
The Ruto administration has been under pressure to bring down the cost of living and create jobs, but some of its proposed tax and policy measures have been questioned by various interest groups, which has stoked social tensions.
The overall cost of living in Kenya eased in July by six basis points to 7.3% compared to 7.9% in June, but the prices of key food items have increased significantly over the past couple of months, adding pressure on cash-starved households
The Treasury CS is expected to take decisive measures to address the ballooning budget deficit and curb unsustainable borrowing, which has been a persistent concern for the economy.
It is expected that he will raise Sh198.6 billion from external sources and Sh521.5 billion from domestic sources over the next financial year in order to bridge the budget deficit and fund government programs.
The success of his tenure as Treasury Cabinet Secretary hinges on his ability to navigate the tough conditions set forth in the contract and make tangible strides towards achieving the nation's economic and financial goals.
Only time will tell whether CS Ndung'u's tenure will be defined by significant accomplishments.