"A total of 116 State corporations (49.2 per cent) attained good or fair grade and hence did not attain the agreed performance target," reads the report.
Ruto said his performance contract as president is in the Constitution and the bottom-pp economic transformation agenda of Kenya Kwanza.
"My performance contract, therefore, sets out targets that the government must achieve in feeding every Kenyan, providing affordable housing, achieving universal health coverage, and establishing the necessary infrastructure for growth of the digital and creative economies, as well as creating millions of jobs through expansion of micro, small and medium enterprises and industrialisation," he said.
He said the Executive assists him in the performance of his contract through contracted delegation.
Under Article 132 (3) (b), the president told civil servants that he will direct and coordinate the functions of ministries and government departments, thereby ensuring their effective performance satisfies the government's contractual obligations to the people.
"Stabilising the economy, lowering the cost of living, creating opportunities for the Kenyan people and ensuring inclusive growth is our goal," he said.
He said his administration had made progress in developing the government's online performance contracting information system.
"This system will promote efficiency, promptness and transparency, thereby delivering the possibilities, benefits, and advantages of digital technology to the management of public service delivery," said Ruto.
Prime CS Musalia Mudavadi warned accounting officers against misuse of public resources. Citing Section 44 of the Public Procurement and Asset Disposal Act of 2015, he warned that accounting officers will have to take responsibility for failure to ensure that procurement is within approved budgets and plans.
Compliance with the law, Mudavadi said, was not optional since Section 79 of the Act makes it mandatory for public officers to comply with laws on public procurement.
"We cannot condone laxity, wastage and losses anymore. It is time to apply the penalties accruing from Section 72. Accounting officers failing to manage public assets to achieve value-for-money will henceforth be penalised ," he said.
"I have deliberately highlighted these issues because they are at the center of perennial loss of resources arising from lost cases in courts of law. Going forward, my office will issue a clear framework to address these deficiencies and make officers more accountable," he added.
Mudavadi said citizen-centered service delivery through an effective and efficient approach is what will drive economic transformation.
"The government is committed to facilitating the creation of an environment that fosters Kenya's transformation process, as envisioned in the bottom-up economic transformation agenda," he said.
Stay informed. Subscribe to our newsletter
He said this will be achieved through upscaling of gains made through the deepening of devolution, public sector reforms, and enhanced infrastructure development.
"Performance contracting has increasingly become an important tool for improving public sector performance. If implemented well, it is an instrument that should assist the country to achieve its long-term economic development policy goals.