PS Susan Mang’eni Champions Kenya’s Bold Shift to Outcomes Based Financing at UN Forum

By John Kariuki

Principal Secretary for MSME Development Susan Mang’eni has reaffirmed Kenya’s leadership in innovative development financing by championing Outcomes Based Financing (OBF) during the United Nations Fourth Financing for Development Forum (FfD4) held in Seville, Spain.

Speaking at a high level roundtable attended by global policymakers, development partners, and private sector leaders, PS Mang’eni spotlighted Kenya’s progressive move from traditional input based budgeting to a bold, results driven financing model. She emphasized that Kenya is now intentionally aligning public investments with measurable impact, particularly through flagship programs such as the National Youth Opportunities Towards Advancement (NYOTA).

“Kenya is not just spending. We are investing for real outcomes. Our youth programs must deliver meaningful livelihoods, not just temporary relief,” PS Mang’eni said.

At the heart of her address was NYOTA, a groundbreaking youth employment initiative backed by the World Bank. The program targets over 800,000 young people across all 47 counties, focusing on those with limited formal education. Through Results Based Financing structures, NYOTA engages social enterprises that are paid only when they help youth achieve sustainable income. Employers are also incentivized, receiving compensation only after youth are trained, placed, and retained in jobs for at least five months.

PS Mang’eni noted that the transition to OBF is critical in the context of tightening fiscal environments and shrinking aid budgets. By focusing on outcomes over inputs, Kenya is ensuring that every coin spent delivers value and accountability.

Kenya’s Outcomes Based Financing model, as presented by PS Mang’eni, is built on four pillars. It prioritizes real livelihoods by targeting income generating results for youth. It promotes inclusion by deliberately involving marginalized groups such as women, persons with disabilities, and underserved regions. It fosters accountability by linking funding to verified performance outcomes. And it supports scalability by promoting program models that are simple, adaptable, and pilot tested for effectiveness.

The country’s approach is closely aligned with the Bottom up Economic Transformation Agenda (BETA), which places MSMEs, agriculture, healthcare, affordable housing, and the digital economy at the center of national growth.

Through her leadership on the global stage, PS Susan Mang’eni has positioned Kenya not just as a participant in the development conversation, but as a thought leader setting a new standard in financing for impact.