Planning to Win: Why strategic planning is crucial for government agencies

 

Mobile money transactions prior to 2017 felt like groping in the dark. It was impossible to determine the cost of the transaction without doing some arithmetic after the fact. This inconvenience was eradicated after the Competition Authority of Kenya ordered financial service providers to display all costs in-flight to enhance transparency and enable consumers to make informed decisions.

This intervention was groundbreaking for two reasons: the telecommunication and finance sectors are enablers of economic growth in Kenya, and 82% of Kenyans use mobile money services, according to official statistics. Noting the large number of Kenyans being disenfranchised in the process, the Authority planned and undertook an inquiry into this key sector. The consumer welfare issues highlighted in the inquiry, including the need for receipt issuance on the transaction platform, were addressed.

This narrative helps counter a belief that strategic planning within Government is a tick-a-box exercise. Planning enables public institutions to structure and direct their actions and resources to impactful activities. Again, since public agencies operate in a fast-changing environment, they must be proactive and anticipate changes. Strategic planning facilitates this aspiration by defining success and its measurement.  

In the first Plan, which covered FY 2013/14 - 2016/17, the Authority focused on establishing structures that have supported our growth. It was during this period that enforcement frameworks were developed, including applicable rules and guidelines. The Authority was equipped with both human and financial resources. In addition, the law was gradually tested, and soft enforcement prioritised to occasion behaviour change by explaining the benefits of competition law to the country

During this phase, we concentrated on key enablers of economic growth: the telecommunications, agriculture, and banking sectors. Some outcomes of this period were: reduced USSD prices, compliance programmes, policy change recommendations to enhance the banking sector’s competitiveness, and increased transparency by financial service providers. The second Plan tested the adequacy of the Competition Act through both soft and hard enforcement.

During the four years to June 2021, SMEs received a lifeline through sanctioning abuse of buyer power, shielding them from exploitation by powerful buyers. The Authority interrogated the operation of digital lenders, highlighting the consumer welfare concerns therein and recommending policy changes to the Central Bank of Kenya. In addition, consumer savings of Sh900 million were recorded when the Authority extinguished a cartel by paint manufacturers who artificially inflated prices and limited consumer choice.

In the lifetime of the third Plan, which is coming to an end on 30th June, 2025, we ventured into novel areas of enforcement. We prioritised public procurement by investigating bid rigging cases, in partnership with the Public Procurement Regulatory Authority. The Government spends 40% of its budget on procurement and, therefore, sanctioning bid riggers ensures that value for money through competitive bidding is realised.

Moreover, fines of over Sh1.5 billion were imposed on those contravening the law in the steel and retail sectors. Additionally, over 2,500 consumer concerns were resolved, mostly on e-commerce and digital finance, ensuring that consumer concerns on quality, data privacy, disclosure and transparency were addressed.

In hindsight, strategic planning allowed the Authority to articulate its vision and mission and prioritise the most impactful sectors, including proactive merger reviews, consumer protection, SME growth and sustainability, and reining in restrictive trade practices. In the realisation that public resources are finite, strategic planning ensures that finances, time, and human capital are efficiently utilised.

What gets measured gets done. We live by this mantra at the Authority, cognizant of the fact that a well-structured Plan includes measurable indicators and provides reporting protocols enabling us to track progress and enhance accountability. Strategic planning enables us to build public trust and enhance consumer welfare.

As we embark on the fourth Plan from 1st July, 2025, we will apply the lessons learned over 14 years, while cognizant of the evolving needs of consumers, the dynamism of global trade, and a fast-changing regulatory landscape. Consequently, we will invest in human capital, technology and data systems, and legal frameworks to enhance agility, effectiveness, and stakeholder trust. The Authority shall enhance transparency and the predictability of its decision-making by reviewing its regulatory frameworks. Moreover, we will leverage regional trade frameworks like the AfCFTA to harmonise competition enforcement and protect Kenyan markets from cross-border anti-competitive distortions.

We realise that stakeholders are the key cog in our engine. We have prioritised collaborations and partnerships in the implementation of this plan, through joint investigations, market studies, information exchange, capacity building or resource mobilisation.

In a country where millions depend on fair markets to access goods, services, and economic opportunity, strategic planning enables us to uphold our social contract with Kenyans. And when done well, it ensures that the Authority’s interventions are appreciable by every citizen.

The writer is the Manager, Planning, Policy and Research at the Competition Authority of Kenya