how treasury is facilitating ict development

8/7/2019 How Treasury is Facilitating ICT Development

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Joseph K. Kinyua, Permanent Secretary/Treasury

19th April 2011, at the Connecting Government

Conference, Leisure Lodge Hotel, Mombasa


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Outliney Introduction

y Treasury Interventions in Facilitating ICT development

y

Budgetary Priorities for ICT developmenty Tax incentives for an Enabling Environment

y Policy reviews for an Enabling Environment

y Treasurys leveraging on ICT to improve efficiency andeffectiveness in Public financial management

y Focus on your product, improve it ESP Monitoring tool, &IFMIS Academy

y Conclusion


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Introductiony

The Government recognizes that the efficiency andconnectivity afforded by ICT is a bedrock foraccelerated economic growth, expanded economicopportunities, and overall poverty reduction.

y This is premised by our belief that the use ofICTwould yield

y Savings in public expenditure,

y Create efficiencies for a better and more productive

economy, therebyy Create jobs and move our economy up the value

chain, while

y Reducing the cost of doing business.


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Introduction2y I

CT also plays an important role in streamliningefficiency and effectiveness in the

management of public financial resources,

y Which further contributes to fighting corruption

through the promotion of greater comprehensivenessand transparency of information across government

institutions

yWith ICT, we are able to provide of timely,

accurate, and, quality data

y whilst concurrently enhancing controls to improve

expenditure management

y

so as to deliver quality services to the Kenyan people.


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Budgetary Priorities for ICT Development

y Despite general resource limitations caused by theglobal economic downturn, and PEV, the Treasury has

nevertheless prioritized resources towards ICT

development.

y In 2010/11 the Research, Innovation and Technology

sector, to which ICT development is housed under the

MTEF sectors was allocated Kshs. 66.2 billion (up from

Kshs. 45.5 billion in 2009/10),

y 2011/12 projections set at Kshs. 68.4 billion

representing a 3.3% increase.

y This is expected to increase to Kshs. 72 billion by

2012/13.


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Budgetary Priorities for ICT Development2

yProgrammes under the ICT infrastructure sub-component include the development of BPO

centers, Digital Villages and an ICT park.

y

Treasury also prioritizesICT orientedprogrammes in other sectors. For example:

yEducation: ICT laboratories for e-learning;

Digital libraries

yGJLOS: Electronic voter registration;

Digitization of Court Registries: Automation

of court processes (Telepresence system)


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Tax Incentives for an Enabling

Environment

yThe Treasury similarly uses tax incentives topromote sectors including ICT, and therebyprovide an enabling environment. E.g.

y2009/10 budget proposed a 5% taxdeduction on computer software, and

yFurther allowed internet service providers to

offset against their taxable income the costincurred in acquiring the right to use thefibre optic cable over a period of twentyyears


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Policy Interventions for an

Enabling EnvironmentyThe Treasury mandate of creating an enabling

environment through policy development has

seen proposals made including:

1. Banking Act was amended to allow for

branchless banking which leverages on ICT.

2. Review of key business related legislation

undertaken to improve the environment fordoing business. These include the Companies,

Insolvency, Partnerships bills.


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Policy Interventions for an

Enabling Environment23. Digitization of the Companies Registry, and

4. Reduced the time to obtain construction

permits and number of days required to

start businesses.

5. We have also licensed 4 microfinance

institutions to begin taking deposits so asto increase access of SMEs to credit.


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Leveraging on ICT to improve public

financial management systemsy As initially indicated, The treasury recognizes the role

that ICT can play in facilitating economic growth and

development and in improving the efficiency,

effectiveness and transparency of public financialmanagement systems. Treasury has therefore

spearheaded the following interventions:

y IFMIS Re-engineering

y The MoF is currently implementing the re-

engineering IFMIS strategic plan, that seeks to

integrate all financial management business end to

end processes.


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financial management systems (2)y To ensure effective linkages and integration

between the Budget Process; Procurement;Accounting; Electronic Funds Transfer; Payroll;Pension System and the Public Debt Management

system.y These are being undertaken within a framework

that is structured along seven key components -the Re-engineering for Business Results; Plan toBudget; Procure to Pay; Revenue to Cash; Recordto Report; Communicate to Change and ICT toSupport.


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financial management systems (3)y The ICT to Support component is of this reforms

will elevate the pace, scope and effectiveness offinancial resource management, public serviceprovision, and, ultimately, value-based economic

growthy The newly created IFMIS department at MoF

coordinating and implementing these initiative.

yAutomation of the Kenya Revenue Authority.

y KRA has and continues to implement automationstrategies including:

y Electronic Cargo Tracking System

y Integrated Tax Management System


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financial management systems (4)y E-Promis

y To support government monitoring of implementationof projects, the MoF is facilitating the e-promisframework to keep a constant check on the

implementation of GoK programmes/projects.y E-Registryy To enable small business apply and pay for licenses

online, including through the use of mobile payment

platformsy 3.8 B Fund for the Financial Inclusion of theInformal Sector reaching the un banked andunder banked using the M-Banking Platform


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financial management systems (5)

yThe Economic Stimulus Programme

y In 2009, GoK, through MoF launched the ESP

premised on the need to urgently overcome socio-

economic challenges facing Kenya, at the time.y ESP is an intensive, high impact programme that has

stimulated economic growth, created employment

and spurred entrepreneurship and innovation.


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financial management systems (6)

y The ESP programme factored in a specific ICT

component dubbed ICT for schools

y The component has a Kshs. 960 million allocation

to provide computers to various institutions in allconstituencies

y The programme is currently being implemented

by the Ministry of Education in this financial year.


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financial management systems (7)y ESP Website/GIS mapping tooly The ESP secretariat recently launched an

interactive web page and GIS mapping tool, thefirst of its kind within government, to facilitate

the continued monitoring and evaluation of ESPprojects, as well as provide an update on statusof implementation with the general public.

y The ESP website and GIS mapping tool allows forreal time status updates on funds disbursement,

utilization and implementation of ESP activitiesso as to meet the expectations of a vigilant publicwho regularly access the tools

y The journey overcoming challenges, JKUAT,Google support through Iridium


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Whats happening in your

constituency

Find Projects in your Community


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IFMIS ACADEMYy Objective for Capacity enhancement and Change

management

y Begin with in classroom for building capacity partnerwith KIA, KSMS

y Anticipate four modules for IFMIS users

y E learning Four modules per year

y Linked with user access codes to system to ensurecompliance

y Developing the framework ICTB / Accenture support

y Started running workshops BPR workshops betweenmarch & April had 307 participants.


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Conclusiony

It is our view that creating an enablingenvironment for ICT development y Will streamlining efficiency and effectiveness in the

management of public financial resources,

y

Improve public sector governance through the promotion ofgreater comprehensiveness and transparency of informationacross government institutions

y able to provide of timely, accurate, and quality data,

y whilst concurrently enhancing controls to improve expenditure

managementy so as to deliver quality services to the Kenyan people.

y Ultimately - enhancing economic development andcontributing to poverty reduction


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Conclusion

The sky is the limit

how treasury is facilitating ict development

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