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P-7P~)q88,q\o pvN7}*h88,)krhxP7P}*i88,1 ips7t7zC;,>EXz_ pi7X6`%O,(,LO PE37Pt`%Q,(,>Q_ pi7 ~)[80,U<[2PG;P  '^80,[^2pPG;2p^ff jZl?xxx,x6X@`7X@|(i81,diA P-7P~)q88,q\o pvN7}*h88,)krhxP7P }*i88,1 ips7t7zC;,>EXz_ pi7X6`%O,(,LO PE37Pt`%Q,(,>Q_ pi7 ~)[80,U<[2PG;P  '^80,[^2pPG; ~)[80,fI[2xjAG;Xz}*h88,s;hxU7XP-7P~)q88,q\o"i~'K2^88Sgg888g8888gggggggggg88V{gux`]{x.]oYxckkgxxxrd888SS8Y`Y`Y<``((Y(````;S<`]]]PJSJg8ggggg8ggggggSgd({Y{Y{Y{Y{YuY`Y`Y`Y`Y.(.(.(.(x`````x`x`x`x`r]{Yxa``r]x`c`{Z{g{ZuZuZugugxnaZggggaZ{a{g{g{g{gxgxg/(gggg8dPggogZ(Z9ggZ4Z(xa{xaxgagk>iiffSSxSrff8SS?"xxSx[xxS姧0S88xcxxxxxxxxxx8S{g]ix{S8ixSi`xlxxxxxxxxxxYxxxxxxofxGcxxxxxxxSxxxxxxxJxxxxJxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxx{]iY]S{Y`MfGx`Y.(oS{V]x]iG`x`cYccJiMrYuxPr{{`x8irr{Y]rrz88iiii{xiiirrr{8`SJ8Muu]daqqZZnn{{xu{{M{aZZ5M5M҅P?k2p }K- B Ԋ B #hxP7krP# KENYA FY 1997 Development Fund for Africa:p(# $23,013,359 P.L. 480 Title II:pH(#$ 4,228,000 Introduction.  }K-  &Kenya has the potential to be one of the best economic performers in Africa. After a series of  &significant reforms, the economy posted a 3% gain in 1994 and a 5% gain in 1995. After having  &embarked on a major economic reform program, Kenya is currently in a transitional stage. While  &progress in democratization has not been satisfactory, with attendant problems of human rights  &Mviolations and official corruption, Kenya continues to maintain a stable, prowestern government and  &Ma relatively free market economy with a vibrant private sector. As a regional financial center, Kenya  &[is an economic engine for the region. Continued economic assistance to Kenya serves the U.S. national  &interest through: promotion of economic opportunity; prevention of humanitarian and other complex  &crises; enhancement of peace and stability in the Greater Horn of Africa; and protection against such  &>global dangers as rapid population growth. The Mission goal of promoting "broadbased sustainable  &economic growth in Kenya contributing to crisis prevention in the Horn of Africa" directly reflects these  &interests. Kenya is pivotal in any effort to prevent future crises in the region. It is one of the few east  &African countries which has not faced a major internal conflict in the last 20 years. The cost of such  &@a conflict in Kenya would be astronomical and would sharply increase the costs of relief and  &development to the neighboring countries of Uganda, Rwanda and the southern portion of Sudan. The  &bulk of trade and aid to these countries flows through the Kenya port, road and rail network. Thus, political and economic stability in Kenya remain key U.S. goals.  }K- The Development Challenge.  }KP-  &ySignificant progress was made over the last two years in economic liberalization and structural reforms:  & the Kenya Government has recently reached agreement with the International Monetary Fund/World  &Bank on the latest Policy Framework Paper. However, the challenge is to consolidate the economic  &\gains accomplished to date and to commit the government to reforms in democracy and governance.  &/The immediate challenge is for the United States to engage a reluctant Government of Kenya (GOK),  &with questionable political will, in constructive policy dialogue while maintaining effective donor  &coordination in pressuring for accelerated reforms in democracy and governance. The United States  &will work toward improving the political environment while continuing to address longerterm development challenges, including population, health, and other broadbased economic growth.  &Kenya's macroeconomic environment is relatively stable and has greatly improved since 1993. The  &Government has, to date, maintained sound macroeconomic policies. Strong efforts in fiscal  &management have resulted in a substantial reduction in the budget deficit, good revenue performance  &land, for the most part, better expenditure controls. This has helped reduce the fiscal deficit to an  &estimated 2% of the gross domestic product in FY 1995 from 10.4% only two years ago. Inflation has  &been brought under control, to a single digit for the first time since 1987. Improved macroeconomic policies have stimulated resumption of economic growth.  &^Kenya has also made significant strides in implementing structural reforms. Exchange control  &restrictions have been eliminated and virtually all trade restrictions have been removed. Price controls  &lhave been abolished. Although Kenya has achieved some degree of success in macroeconomic  &=management over the past two years, the reforms are still fragile and could suffer reversals, especially  &if evidence of corruption and economic mismanagement is not dealt with transparently and through an  &objective judicial process. A major challenge for Kenya is to maintain macroeconomic stability while continuing to make progress in civil service and parastatal reforms. "(0*0*0**"Ԍ &\Kenya offers an emerging family planning success story. USAID is the key donor contributing to this  &success. The fertility rate has fallen from one of the highest in the world to one of the lowest in sub &Saharan Africa. As a result, the population growth rate is now estimated to be below 3%. This makes  &it more likely that Kenya will be able to make sustainable gains in per capita income. The USAID &Nfinanced Kenya Family Planning Program is serving as a model for countries in the region as they develop their own strategies to meet family planning and health care financing challenges.  &Political reform and progress in accountability and governance are a major challenge for the USAID  &program. USAID recognizes that political change is a difficult, longterm process, and setbacks in the  &short term occur. Nevertheless, there is increased public awareness and debate on various democratic  &governance problems. This new awareness in Kenyan society is challenging the political leadership.  }K- & USAID recently commissioned a Democracy and Governance Assessment to assist the United States  &mand other donors in engaging the government in a dialogue on advancing the process of good  &governance and democratization. The study found that the degree of openness by the government to  &!change is low. It recommends assistance to civil society to build demand for the reforms among  &citizens, while the U.S. Government urges repeal of oppressive laws and harassment of opposition  &parties. It also recommends in consultation with other donorsworking with the government to permit  &open, free and fair elections in 1997. When conditions improve, the United States could work with the government to promote constitutional and legal reforms.  &zSeveral of USAID's activities cut across the five Agency goals, particularly those of environment and  &kdemocracy/governance. On environment, no problem may be threatening the biological resources of  &kKenya more than poverty and rapid population growth. These two interrelated problems are causing  &intensification of agriculture through farmer migration into forest and other fragile areas, particularly  &zaround Kenya's economically important national wildlife parks. USAID's environment initiative is using  &community groups around the parks to become engaged in decisionmaking about how best to develop  &these buffer zones. Enterprise activities, such as ecotourism, are being supported by USAID. Other  &USAID activities also cut across the Agency's democracy/governance goal. USAID is counting on civil  &>society organizations to extend USAIDsupported microenterprise lending, where USAID is a leading  &donor. Business organizations assisted by USAID are increasingly important and effective advocates  &for encouraging legislation and policy reforms that serve their members. In addition, good governance  &has been promoted through insistence on rigorous, transparent, and fair tendering of contracts for  }K-USAIDfinanced farmtomarket roads. Other Donors.  }KX-  &NUSAID coordinates closely with other donors. Other donors that complement the USAID program  &include Japan (the largest bilateral donor for the period 19921994), the World Bank (the largest  &/multilateral donor for the period 19921994), the World Food Program, Germany, the United Kingdom,  }Kx- &Sweden, the European Union, the United Nations, the International Monetary Fund, and the African Development Bank.  }K - FY 1997 Program.  }K`"- & Kenya was classified as a limited assistance program due to concerns in the area of democracy and  &governance. The USAID Mission currently has 12 U.S. direct hire employees; this presence will soon  &be reduced by roughly onehalf. Given declining resource levels, Kenya's new Strategic Plan has  &Manalyzed how best to consolidate strategic objectives. USAID's Country Strategic Plan for FY 19962000 includes the following special objective and two strategic objectives:  }K'-Effective Demand for Sustainable Political, Constitutional and Legal Reform Created;  }K(-Increase Commercialization of Smallholder Agriculture and Natural Resources Management; and  }Kh)- B "h)0*0*0*z+"  B   }K-Reduce Fertility and the Risk of HIV/AIDS Transmission through Sustainable, Integrated Family  Planning and Health Services.  }K - B  Agency Goal: Building Democracy  }K-  &The USAID democracy program seeks to increase civic participation by creating effective demand for  &sustainable political, constitutional and legal reform. This program directly supports the Agency's goal  &{of building sustainable democracies. Our program will focus on two areas: 1) strengthening civil  &society, with an emphasis on women's participation, and 2) developing a more transparent and  &egalitarian electoral process. USAID will focus resources on civil society groups and the Electoral  &Commission in an effort to make the upcoming 1997 elections reflective of the will of the people. Over  &kthe past year, we have funded 16 grants to politically active civil society groups. The building of civil  &society capacity is also an element of USAID's other two strategic objectives. USAID conducted a  &thorough assessment of the democracy and governance situation in Kenya as well as an assessment  & of the potential for civil conflict in the country (e.g., ethnic clashes, electoral violence, etc.). Despite  &@Kenya's move toward a multiparty system, Kenya continues to struggle with the transition to  &democracy and remains fragmented by political and ethnic strife that undermines movement toward increased democratic reform and economic sustainability.  &, Strategic Objective 1: Effective Demand for Sustainable Political, Constitutional and Legal Reform ` `  ,Created  }K- Agency Goal: Encouraging Broadbased Economic Growth  }K-  }K- & To accelerate broadbased economic growth, Kenyans will have to make their economy grow by 7%  &>a year. The key to economic growth in Kenya lies with the agriculture sector which is dominated by  &!smallholder farmers. Thus, agriculture remains a primary focus of USAID's strategy in achieving  &\economic growth. The Agency's objectives which support this goal include two areas in which we  &intend to invest: "Strengthened Markets" and "Expanded Access and Opportunity for the Poor."  &?Commercialization of smallholder agriculture is based on strengthening the private sector and the  &Ncompetitiveness of markets. Our work with the cereals market has resulted in the GOK reducing  &control over grain marketing. Farmers are now receiving an estimated 80% of the market price  &compared to less than 70% in 1992. Improving efficiencies in the market alone, both domestic and  &within the Greater Horn of Africa, will not necessarily improve food security in Kenya. We are also  &focusing efforts on improving consumers' incomes through increasing employment. Our analyses  &/indicate that the most effective way to maximize employment opportunity in the near future will be to  &focus our resources in the microenterprise sector. In 1993, more than half of the new jobs created in  &Kenya were in microenterprises. USAID, other donors and GOK efforts have continued to emphasize  &Lmicroenterprise growth as the major strategy for reducing poverty and thereby improving food security.  &A recent survey shows that total employment in microand smallenterprises (MSE) grew at rates of at least 10% in recent years, compared to only 5% 6% in other sectors. , Strategic Objective 2: Increase Commercialization of Smallholder Agriculture and Natural Resources ` `  Management  }K#- Agency Goal: Stabilizing World Population Growth and Protecting Human Health  }K$-   &A healthy and stable population is critical for sustainable development in Kenya. Despite encouraging  &achievements in improving health care and reducing the population growth rate, Kenya faces major  &zchallenges. High population growth is one of the significant impediments to sustainable development.  }K'- &0 USAID's strategic objective to increase the sustainability of family planning and HIV/AIDS service  &delivery systems will be achieved through activities which aim to reduce high fertility and risk of  &HIV/AIDS transmission. It will also improve health and enhance the ability of the Kenya family planning"h)0*0*0*z+"  &program to become financially and programmatically sustainable. These objectives directly support  &USAID's goal of stabilizing world population growth and protecting human health. Continued reduction  &in Kenya's population growth rate will facilitate broadbased economic growth and poverty alleviation  &lmainly by reducing unemployment, increasing per capita investments in education and health, and  &{increasing income per capita. Stabilizing population growth will lessen the degradation of Kenya's  &natural resources and maximize the attendant economic benefits. USAID, as the lead donor in the  &/population and health sector, has contributed to a substantial decrease in the fertility rate from 8.1%  &in 1978 to 5.3% in 1993, and averted an estimated 110,000 HIV infections. USAID assistance has  &yincreased Kenyan financial resources for Government curative and primary/preventive health and family  &planning services by an average of $3 million a year through Kenya's national health care financing program. , Strategic Objective 3: Reduce Fertility and the Risk of HIV/AIDS Transmission through Sustainable, ` `  Integrated Family Planning and Health Services " 0*0*0*| "  }K- B   B KENYA  }K- OFY 1997 PROGRAM SUMMARY B   B ԃ  h ddx !ddx 8HZ h    &&   `F#O P7P#nJ  w Encouraging  Broadbased Economic  Growth   `Fn4T^Stabilizing#O P7P#у TgWorld Population <T_Growth & >T]Protecting TcHuman TdHealth  Protecting the Environment  Building Democracy  S^JProviding Humanitarian A^FAssistance   `FRQ_  TOTALS ă    &&   `F  USAID Strategic  `F& Objectives                &&   SPO1. Effective Demand for Sustainable Political, Constitutional and Legal Reform Created  `F ԩ Dev. Fund for Africa     + 2,128,800   2,128,800    & &  1. Increase Commercialization of Smallholder Agriculture and Natural Resources Management Dev. Fund for Africa  `Fԩ P.L. 480, Title II   ` D!6,177,520      `7d1,238,467     `V4,228,000   `"7,415,987 `"4,228,000   &  &  2. Reduce Fertility and the Risk of HIV/AIDS Transmission through Sustainable, Integrated Family Planning and Health Services Dev. Fund for Africa   ' '   ` `b13,468,572           `"" `"13,468,572    & &   `F> Totals Dev. Fund for Africa P.L. 480, Title II`  ` D!6,177,520`  `b13,468,572`  `7d1,238,467`  `2,128,800`  `} `V4,228,000`  `"23,013,359 `"4,228,000    }K-#hxP7krP#3 B #J2PQ<P#3`k(#5USAID Mission Director: George Jones  }K-"0*0*0*" CpACTIVITY DATA SHEET  }K- PROGRAM: KENYA  }KX- & TITLE AND NUMBER: Effective Demand for Sustainable Political, Constitutional and Legal Reform  }K -Created, 615SP01  }K- STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $2,128,800 DFA  }Kx- INITIAL OBLIGATION: FY 1995 ; ESTIMATED COMPLETION DATE: FY 2000  }K@-  }K-Purpose: To create effective demand for sustainable political, constitutional and legal reform.  }K- &Background: Although Kenya in recent years has moved toward a multiparty system, the country  &continues to struggle with the transition to democracy. Political and ethnic strife fragment society and  }K( - &zundermine democratic reform and economic sustainability. To achieve sustainable economic growth,  &LKenya will need to develop a political system which is fair, equitable, and transparent, and which offers  &Oan effective voice to all Kenyans, including women. USAID has designed the democracy and  &[governance program as an exploratory "special strategic objective" which will emphasize strengthening civil society and working towards a more transparent and egalitarian electoral process.  &NThere are several external constraints which might impede achievement of this special objective.  &Kenya's political system is fragile, unintegrated, and dominated by the governing Kenya African  &National Union Party. Since the inception of multiparty politics in 1991, progress toward a full and  &zopen democratic system has been unacceptably slow. The issue is whether donors collectively can  &successfully work with the Government of Kenya and civil society to assist in conducting the 1997 elections fairly.  }KP- &LUSAID Role and Achievements to Date: Under the democracy and governance special objective, USAID  &=will implement the Strengthening Democracy and Governance Project, the private voluntary organization  & (PVO) cofinancing activity, and the Democracy and Human Rights Fund. USAID supports paralegal  &Otraining, journalist training programs, an independent public policy research institute, and civic  &education and human rights awareness projects which have benefitted over 4,000 Kenyans in the last  &Mthree years. It is still too early to determine the impact of this support. The PVO cofinancing activity  &will build on the achievement of PVO CoFinancing I (198595), which strengthened the capacity of 27  &nongovernmental organizations (NGOs) and promoted NGO networks. USAID will continue to support these important efforts.  }KX- &Description: This activity will focus on two intermediate results: (1) civil society strengthened, with  &emphasis on women's participation; and (2) an electoral process more transparent and egalitarian.  &=USAID will advocate the suspension of laws restricting party competition and build technical knowhow  &\for legal and constitutional reform through support for NG0based legal reform working groups. This  &activity will increase capacity to administer free and fair elections through civic education activities,  &kinvolving local churches, and by assisting NGObased monitoring during the campaign period and the  &election. In addition, USAID will work with local organizations for prevention of ethnic clashes and other social conflicts.  }K`"- &X` hp x (#%'0*,.8135@8:|,Host Country and Other Donors: Approximately 12 principal foreign donors and international NGOs  &contribute resources to democracy and governance activities in Kenya. Many of these donors look to  &USAID for coordination and leadership in policy dialogue and resource allocation. The World Bank  &contributes $1.4 million for support to the Registrar General and Attorney General's Chamber; and the  &0United Nations Development Program provides $6.7 million to assist constitutional reform matters. Other donors include Finland, Austria, Germany and Switzerland.  }K'- &kBeneficiaries: The people of Kenya, through USAID's work with the politically active NGO community  &.(e.g., the Law Society of Kenya, the International Federation of Women Lawyers and the Kenya Human"(0*0*0**"  &lRights Commission), the NGO Council, the Institute for Policy Analysis and Research and the local churches, will be beneficiaries of this project.  }K-  }KX- &Principal Contractors, Grantees or Agencies: To the extent possible, USAID will continue to implement  &this project through Kenyan NGOs. U.S. PVOs will be encouraged to enter into partnership with local NGOs in order to enhance the capacity of local NGOs and promote sustainability.  }Kx-Major Results Indicators: Indicators which will measure project progress will include:  }K-` `  ,hh^BaselineppTarget  }K-Number of active NGOs providinghh^10 (1996)pp25 (2000)  }K` -providing civic education,hh^pp  }K( -Percent of parliamentary,hh^2% (1996)pp5% (2000)  }K -seats held by women ,hh^  }K -Number of NGO coalitions ,hh^1 (1996)pp10 (2000)  }K -formed to promote conflict , prevention/resolution  }K-Percent of election results ,hh^20% (1996)pp95% (2000)  }K-published on time ,hh^  }K-Percent of voters knowledgeablehh^5% (1996)pp20% (2000)  }Kh-on voting procedures ,hh^ "0*0*0*"  }K-Cp ACTIVITY DATA SHEET  }K- PROGRAM: KENYA  }KX- &. TITLE AND NUMBER: Increase Commercialization of Smallholder Agriculture and Natural Resources Management, 615S001  }K- STATUS: Continuing  }K- & PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $7,415,987 DFA; $4,228,000 P.L. 480, Title II  }K@- INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2000  }K-Purpose: To increase commercialization of smallholder agriculture.  }K` - &|Background: The key to economic growth in Kenya lies with agriculture, which dominates the  &economy, providing employment for 70% of the country's work force and accounting for over one &Lfourth of gross domestic product. The commercialization of smallholder farmers, which comprises most  &=of Kenya's agriculture, will require a transformation from a relatively subsistenceorientation to a market  }K -orientation.   }KH - &USAID Role and Achievement to Date: USAID support for economic growth includes increased  &.agricultural production, employment, income, and foreign exchange earnings. Between 1972 and 1993,  &agricultural investments by USAID in areas such as policy reform, research, education, grain storage,  &and nontraditional agricultural exports has contributed to growth in this predominantly agriculture &Lbased economy. Total factor productivity in agriculture averaged 0.6% per year, a notable achievement  &Mwhen compared with the average for subSaharan Africa of 0.38% per year. Likewise, horticulture  &exports have been increasing annually at about 10% in recent years. USAID has been and continues  &zto be a lead donor in microenterprise development, a sector that provides more opportunities for rural  &and urban labor than any other sector in Kenya. The P.L. 480, Title II food program was "suspended"  &in FY 1996 due to the Government of Kenya's assessment of duties and taxes on imports. We  &anticipate that the program will be reinstated in FY 1997, and that food assistance to the needy will continue.  }Kp- &?Description: USAID's strategic objective will result in: increased strength and competitiveness of  &agricultural markets, increased services and labor opportunities for smallholders through microenterprise  }K- &=development, and increased growth of nontraditional agricultural exports. These results will contribute  &significantly to key Agency initiatives, particularly in the Greater Horn of Africa and microenterprise  }K- &development. For example, USAID investments in markets and highyielding inputs will support Kenya's  &Lrole as a regional model for research and source of improved seed varieties. In addition, USAID's policy  &/analysis will facilitate regional trade. USAID investments in nongovernmental organizations (NGOs)  }K- &.that provide services to microenterprises include assistance to the first African microenterpriselending  &NGO to become a viable banking facility, thus making it sustainable while dramatically increasing its  &outreach. These efforts will, in turn, contribute directly to increasing food security in Kenya and in the  &region. As smallholder agriculture is commercialized, agricultural productivity will increase, thereby  &stimulating positive growth in the agriculture sector. Such growth will, in turn, directly affect economic growth, employment creation, and income opportunities for all Kenyans.  }K!-  }K`"- &Host Country and Other Donors: The Government of Kenya's role is to: ensure a policy/regulatory  &menvironment for growth, maintain/improve infrastructure, and develop and transfer agriculture  &technology. Other donors, such as the World Bank, the United Kingdom, and the European Union, will  &ksupport applied agricultural research, agricultural policy analysis, sustainable financial institutions for microenterprise lending, infrastructure development, and macroeconomic stabilization.  }KH&-  }K'- &=Beneficiaries: Smallholder farmer households, who constitute 80% of Kenyan households and account for 75% of total agriculture production. "(0*0*0**"Ԍ }K- &Principal Contractors, Grantees or Agencies: USAID will implement the activity through private and public nonprofit organizations, and U.S. and host country NGOs.  }KX-Major Results Indicators:  }K - ,hh^Baselinepp&Target  }K-Percentage of smallholder maize  }K-production marketed ,hh^35% (1996)pp&50% (2000) Percentage of maize/milk sales  }K@-to state corporations ,hh^45%/40% (1995)pp&15%/25% (2000) Employment in microand small  }K-enterprises (millions) ,hh^1.2 (1994)pp&1.7 (2000) Increase NonTraditional Export earnings as a percentage  }K( -of total export earnings,hh^22% (1995)pp&  X35% (2000) " 0*0*0*| "  }K-3 B #xmM PʖQdP#3Cp ACTIVITY DATA SHEET  }K- PROGRAM: KENYA  }KX- & TITLE AND NUMBER: Reduce Fertility and the Risk of HIV/AIDS Transmission through Sustainable, Integrated Family Planning and Health Services, 615S002  }K- STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $13,468,572 DFA  }Kx- INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000  }K- &#Purpose: To reduce high fertility and the risk of Human Immunodeficiency Virus/Acquired  &MImmunodeficiency Syndrome (HIV/AIDS) transmission through sustainable, integrated family planning and health services.  }K( - &jBackground: Kenya has the highest number of officially reported AIDS cases in Africa. The AIDS death  &toll in Kenya to date is estimated to be about 100,000 people and 2.7 million more people are expected  &to die from AIDS and related diseases during the next 10 years. AIDS will also impede Kenya's  &progress in improving child survival. Without strong HIV/AIDS interventions, we could expect a quarter  &of a million people to develop AIDS every year in Kenya. Within the next 10 years, the epidemic could  &reduce per capita income by 10% due to a staggering increase in AIDSrelated health care costs, a decline in savings and a decline in formal sector employment.  &The Kenyan population has grown from 8.7 million people at independence in 1963 to an estimated  &27.5 million by mid1995. Although notable progress has been made in recent years in reducing  &!fertility, the current population growth rate, estimated at just under 3%, is still unacceptably high.  &Should family planning programs stall, by the year 2020 there could be 8.2 million more people to feed,  &educate and employ (a total projected population of 49.6 million). AIDS will likely have a significant  &impact on population size, but under the worst case AIDS scenario, the population growth rate would still be 1.7% per year in the year 2005.  &\Constraints which may impede achievement of this strategic objective include: declining public health  &sector resources per capita, particularly for preventive health care; demand for family planning greater  &than the supply of services; a lack of coordinated and comprehensive HIV/AIDS prevention programs;  &a dearth of costeffective solutions to the worsening malaria problem; the persistence of significant  &kgeographic disparities in health and fertility status; inability of young adults to access information and  &services in order to protect themselves from unwanted pregnancies, sexually transmitted diseases  &(STDs) and HIV; the Government of Kenya's (GOK) high degree of dependence upon external assistance  &to meet public health needs; inadequate attention to sustainability; less than optimal coordination of  &external resources; and the existence of serious procurement and accountability problems which impede the effective use of external resources by the GOK.  }K@- &USAID Role and Achievements to Date: Since 1984, USAID has been the lead donor to the Kenyan  &national family planning program, accounting for over onehalf of annual program expenditures.  &USAID's financial and technical assistance has contributed to an increase in the modern method  &contraceptive prevalence rate among women of reproductive age from 9% in 1984 to 21% in 1990 &1993; a decrease in the fertility rate from one of the highest in the world 8.1% in 19771978, to one  &zof the lowest in subSaharan Africa 5.35% in 19901993; and a decrease in the population growth  &"rate from 4.1% in 19801985 to just under 3.0% in 1994. Kenya has benefitted from USAID's  &technical expertise in family planning in the areas of policy; quality assurance; logistics; training;  &"information, education and communication; research; management; clinical contraception and  &communitybased service delivery. Since 1989, USAID has also been a lead donor to Kenya's national  &HIV/AIDS prevention program, providing an average of $2.8 million annually for a private sector  &condom social marketing project, a public sector condom program and other AIDS prevention  &interventions implemented by various U.S. cooperating agencies and grantees. USAID continues to be  &the single most important donor to Kenya's widelyacclaimed health care financing program. Through"h) 0*0*0*z+"  &this national policy reform initiative, more than $12 million has been generated for public sector facilities  &=and primary health care services. This USAIDfunded initiative serves as one of the Ministry of Health's most successful attempts to increase local level control and participation in health services.  }K - &.Description: Under this program, resources will focus on two preeminent health challenges: stabilizing  &population growth and controlling AIDS. The activities to be supported by this project include policy  &kdialogue, service delivery, training, limited commodities procurement and expert technical assistance.  &These activities are intended to: (a) expedite opportunity for replication of Kenya's successes in family  &{planning and health care financing programs throughout Africa; (b) achieve peoplelevel impact in  &HIV/AIDS prevention and disseminate the success story regionally; (c) improve child survival through  &targeted programs in family planning, AIDS control and malaria prevention; (d) assist selected Kenyan  &nongovernmental organizations (NGOs) to become selfsustaining and encourage the rational growth  &of private sector services and insurance; (e) meet the immediate needs of over 1.5 million Kenyan  &ywomen who want to protect themselves from unwanted pregnancies and sexually transmitted diseases  &M(STDs)/AIDS; and (f) support the recent implementation of progressive GOK health policies designed to improve the efficiency, impact and sustainability of family planning and health services.  }KH - & Host Country and Other Donors: There are about 15 donors active in Kenya's health and population  &Nsector. In addition to USAID, the major donors engaged in family planning activities are the United  &MNations Population Fund, the United Kingdom, Sweden, Germany, and the World Bank. In the area of  &]HIV/AIDS and sexually transmitted diseases, donors include: the United Kingdom, Belgium, Japan, Finland, the World Bank, the United Nations Development Program and the European Community.  }K0-   }K- &>Beneficiaries: Beneficiaries under the USAID program include women of reproductive age, children under five and men.  }K-  }KP- &MPrincipal Contractors, Grantees, or Agencies: USAID implements activities through the Government  &of Kenya, 25 international private voluntary organizations and 17 Kenyan nongovernmental organizations.  }Kp-Major Results Indicators: Indicators which will measure project progress will include:  }K-` `  ,hh^Baselinepp&Target  }K-Costsharing revenue in the, hh^$3.6 million/year (1996)&$7.2 million/year (2000) public sector  }KX-Contraceptive supplies ,hh^80%required suppliespp&90% of required supplies  }K -maintained at service  ,hh^onhand at 60% of pp&onhand at 80% of  }K- points` `  ,hh^delivery points (1996)pp&delivery points (2000)  }K-Private sector condom sales,hh^500,000/month (1996)&  X1 million/month (2000)##  }Kx-External grant and loan,hh^35% (1996)pp&50% (2000) resources available for  }K -family planning and HIV/AIDS,hh^  }K -activities (other donor assistance)hh^pp  }K!-Modern contraceptive prevalence hh^23% (1996)pp&31% (2000)  }K`"-rate using modern methods,hh^  I#-#xmM PʖQdP#  #xmM PʖQdP#