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KENYA
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Development Challenge FY2001 Program /
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Previous Years' Activities
2000, 1999, 1998, 199730
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Introduction
As the gateway to a regional market of over 180 million people, Kenya offers opportunities to advance U.S. Government (USG) interests in economic prosperity in the Greater Horn of Africa region and much of East and Central Africa. Our overriding national interests in Kenya are democracy and good governance; peace and stability; economic growth; and humanitarian assistance. USAID's goal of promoting broad-based, sustainable economic growth in Kenya is essential to the overall development of the region, and thus achieving our humanitarian interests in several countries as well as fostering an environment in which democracy can flourish. The Embassy and USAID employs a strategy involving advocacy, crosscutting development work and public diplomacy to achieve the goals built around these interests. USAID democracy and governance funding, for example, has been channeled into Kenya's expanding, organized civil society sector. The groups supported have forced change on the Government of Kenya and continue to demand constitutional reforms and action to prevent public sector corruption in Kenya. Additionally, the Embassy and USAID coordination with other donors has expanded exponentially USG leverage over the Kenyan government. While the Mission presses for the fundamental changes in Kenyan politics and policy that will allow Kenya and the region to prosper in the future, key elements of the USAID strategy are designed to mitigate further decline in the economy that would make recovery impossible. Economic growth funds, for example, have created thousands of jobs and provided a safety net of small entrepreneurship in the midst of a stalled economy. Due to USAID assistance, the total fertility rate (TFR) has fallen dramatically over the past 20 years, from an estimated 8.1 to 4.5 children per woman between the late 1970s and 1999, representing a 44% decline in fertility. This decline represents the most spectacular decline in fertility ever recorded in Africa.
The Development Challenge
The major challenge currently facing Kenya is the increasing poverty brought about by a declining economy, falling agricultural production, high unemployment and low incomes. Kenyan agriculture is experiencing constant shifts in cropping patterns due to price changes, lack of improved seeds during planting season, and market inefficiencies. Farmers lack access to inputs, financial services, technologies, efficient markets and there is low effective demand for products; costs of production are high compared to consumer prices. The trend after agricultural market liberalization shows sharp declines in government services provision. In some cases, private sector has been able to fill these gaps, and farmers are now using less fertilizer, less improved seeds and have no access to information (extension services) resulting in sharp declines in productivity. As a result incomes for farmers have stagnated over the last generation, and in the last five years have declined. Recent household level surveys also reveal that, for maize, the principal staple crop, only 28% of farmers produce enough to sell their surplus, while many farmers are net buyers. USAID is addressing some of these problems by targeting the more vulnerable groups of the poor through its efforts to transform subsistence agriculture to market-oriented production, while simultaneously stimulating small and microenterprise development. This should help increase income for farmers, while creating jobs off the farms. USAID will also build the capacity of institutions in private sector and public sector so that these can provide the necessary services to agricultural enterprises. We will foster private sector-public sector-non-governmental organizations partnerships to provide the key services.
Even though the country's TFR has experienced one of the most spectacular declines ever recorded in the world, the health sector faces major challenges. Between 1989 and 1993 life expectancy increased from 49 years to 60 years. In 1998, this level fell to 57 years. This downward trend is expected to continue due to AIDS. HIV sero-prevalence has risen from 3.5% of the population in 1990 to 14% of all adults in early 1999. It is estimated that over 2.0 million Kenyans are currently living with HIV and, some 90,000 of those infected are children under the age of five. Under-five mortality rates have worsened in the 1990s, with child mortality increasing by some 40% during the period between the late 1980s and the mid-1990s. Immunizations of children aged 12-23 months have dropped to 60% in 1998, from 79% in 1993. USAID continues to emphasize the need to space and limit births as the major contribution to improving child survival and improving reproductive health.
Other Donors
Donors that complement the USAID program include Japan, the World Bank, the United Kingdom, Germany, Sweden, the European Union, and the African Development Bank. USAID closely collaborates with these donors. The United States is the third largest bilateral donor.
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Last Updated on: November 09, 2000 |