By Sandra Blessings
The government undertook performance contracting on its State Corporations to determine performance.
A total of 269 State Corporations were evaluated, out of which 17, representing 6.32 percent, attained “EXCELLENT” Performance Grade, while 134, representing 49.81 percent, attained “VERY GOOD” Grade. In addition, 109, representing 40.52 percent, achieved “GOOD” Grade; nine, representing 3.35 percent, achieved “FAIR” Grade, while none attained “POOR” Grade.
Analysis of the performance of the State Corporations’ average composite scores indicated that there was a marginal improvement in performance from 3.0301 in FY 2023/2024 to 2.9616 in FY 2024/2025.
In regard to performance by Functional Categories for State Corporations, the best-performing category was Public Universities with an average Composite Score of 2.6946, while the least performing was Commercial/Manufacturing with an average Composite Score of 3.2462.
The Performance Contracting Report has revealed the 10 top-performing State Corporations, with five top performers still holding their position.
Five new entrants in the top ten performers have staked their claim on the list.
Top 10 performers
Leading the pack of top performers were:
- Kenya Industrial Estates – 1.7999
- Tharaka University – 1.8554
- Kenya Institute of Special Education – 2.0949
- Lake Victoria South Water Works Development Agency – 2.1027
- Moi Teaching and Referral Hospital – 2.1520
- Chuka University – 2.1706
- The Cooperative University of Kenya – 2.2147
- University of Nairobi – 2.2239
- National Research Fund – 2.2776
- National Syndemic Diseases Control Council – 2.2815
“It is worth noting that five out of the top 10 performing State Corporations during FY 2023/2024 were still among the Top 10 Performers during FY 2024/2025. These are: Kenya Industrial Estates, Tharaka University, The Cooperative University of Kenya, University of Nairobi and National Research Fund,” the report read.
Bottom 10
- Nairobi Metropolitan Area Transport Authority – 3.5991
- Kenya Literature Bureau – 3.6179
- New Kenya Planters Co-operative Union – 3.6185
- Nyayo Tea Zones Development Corporation – 3.6681
- Numerical Machining Complex Limited – 3.8471
- Kenya National Entrepreneurs Savings Trust – 3.8745
- Kenya National Trading Corporation Limited – 3.8964
- Kenya Meat Commission – 3.9921
- Kenya National Shipping Line – 4.2189
- Nairobi International Financial Centre – 4.5793
It is noted that three (3) out of the bottom 10 performing State Corporations during FY 2023/2024 are still among the bottom 10 during FY 2024/2025. These are: Kenya Meat Commission; Kenya National Trading Corporation Limited; and Kenya National Entrepreneurs Savings Trust. In the case of Kenya Meat Commission, its performance was largely affected by financial constraints coupled with low livestock supply due to delayed payment to livestock farmers.
Performance Evaluation Results for State Corporations by Functional Category
The report indicated that the best-performing Functional Category was Public Universities, while the least was Commercial/Manufacturing, a replica of the achievement of FY 2023/2024.
| Functional Category | Composite Score |
|---|---|
| Public Universities | 2.6946 |
| Service | 2.9237 |
| Training and Research | 2.9414 |
| Tertiary Education | 2.9869 |
| Regulatory | 2.9946 |
| Regional Development Authorities | 3.0186 |
| Financial | 3.0777 |
| Commercial/Manufacturing | 3.2462 |
In comparison with the performance evaluation results for FY 2023/2024, the most improved category, based on the average Composite Score, was Tertiary Education, while the most declined category was Financial.
Most Improved State Corporations
Kenya Institute of Special Education was the most improved from “GOOD” to “EXCELLENT” Performance Grade with a Composite Score of 2.0949.
The list of most improved State Corporations:
- Kenya Institute of Special Education
- Institute of Human Resource Management
- Private Security Regulatory Authority
- National Cancer Institute
- Hydrologists Registration Board
- Lake Victoria South Water Works Development Agency
- National Syndemic Diseases Control Council
- National Mining Corporation
- Postal Corporation of Kenya
- Kenya Fish Marketing Authority
Most declined State Corporations
The report said Kenya National Shipping Line was the most declined from “VERY GOOD” to “POOR” Performance Grade with a Composite Score of 4.2189.
List of most declined performers:
- Central Rift Valley Water Works Development Agency – from 2.6040 to 3.0141
- Taita Taveta University – from 2.3415 to 2.7573
- Nyayo Tea Zones Development Corporation – from 3.1613 to 3.6681
- Kenya Airports Authority – from 3.0533 to 3.5972
- Numerical Machining Complex Limited – from 3.1968 to 3.8471
- Kenyatta University Teaching, Referral and Research Hospital – from 2.3614 to 3.1390
- Kenya Literature Bureau – from 2.8355 to 3.6179
- New Kenya Planters Co-operative Union – from 2.7846 to 3.6185
- School Equipment Production Unit – from 2.3525 to 3.3167
- Kenya National Shipping Line – from 2.9086 to 4.2189
Top 10 Performing State Corporations Based on Core Mandate
It was worth noting that all the top 10 performers achieved their set core mandate targets. In addition, four State Corporations, namely: Tharaka University; University of Nairobi; Moi Teaching and Referral Hospital; and The Cooperative University of Kenya, have remained among the top 10 performing State Corporations in comparison to the performance in FY 2023/2024.
| Rank | State Corporation | Score |
|---|---|---|
| 1 | Kenya Industrial Estates | 0.8457 |
| 2 | Tharaka University | 0.9591 |
| 3 | Kenya Institute of Special Education | 1.1338 |
| 4 | Lake Victoria South Water Works Development Agency | 1.1400 |
| 5 | University of Nairobi | 1.1610 |
| 6 | Moi Teaching and Referral Hospital | 1.1744 |
| 7 | Chuka University | 1.2068 |
| 8 | The Cooperative University of Kenya | 1.2466 |
| 9 | National Syndemic Diseases Control Council | 1.2650 |
| 10 | University of Embu | 1.3345 |
Bottom 10 Performing State Corporations Based on Core Mandate
In comparison to the performance in FY 2023/2024, three State Corporations, namely: Kenya National Trading Corporation Limited; Kenya Meat Commission; and Kenya National Entrepreneurs Savings Trust, have remained among the bottom 10 performing State Corporations based on Core Mandate.
| Rank | State Corporation | Score |
|---|---|---|
| 1 | Nyayo Tea Zones Development Corporation | 2.4265 |
| 2 | New Kenya Planters Co-operative Union | 2.4343 |
| 3 | Kenya Literature Bureau | 2.4390 |
| 4 | Kenya Airports Authority | 2.4980 |
| 5 | Kenya National Trading Corporation Limited | 2.5914 |
| 6 | Numerical Machining Complex Limited | 2.6820 |
| 7 | Kenya Meat Commission | 2.7111 |
| 8 | Kenya National Entrepreneurs Savings Trust | 2.8350 |
| 9 | Kenya National Shipping Line | 3.0862 |
| 10 | Nairobi International Financial Centre | 3.1350 |
Performance
Analysis of the performance of 30 State Corporations that had a Pre-tax Profit Performance Indicator indicated that they achieved a total net pre-tax profit of KSh44,326,230,636.00 against a target of KSh52,658,869,419.00. Although the institutions fell short of the target by 15.82%, there was a notable growth of 67.09% in pre-tax profit compared to the achievement of KSh26,528,949,073.25 in FY 2023/2024.
Dividends
On Dividends to the National Treasury Performance Indicator, 18 State Corporations remitted dividends amounting to KSh20,683,118,340.00 to the National Treasury against a target of KSh24,746,119,111.78, reflecting an achievement of 83.58%.
It was noted that six (6) State Corporations, comprising Kenya Veterinary Vaccines Production Institute, New Kenya Planters Co-operative Union, Numerical Machining Complex Limited, Nyayo Tea Zones Development Corporation, Postal Corporation of Kenya, and School Equipment Production Unit, did not remit dividends despite having set performance targets on this indicator.
