Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
KENYA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request
Child Survival and Disease.......... $ 5,600,000 $ 5,500,000 $ 5,700,000 Development Assistance.............. $14,077,650 $14,000,000 $13,600,000 Economic Support Fund............. $ 390,000 --- --- P.L. 480 Title II........................... $11,470,000 $14,519,100 $ 8,227,710
Introduction
It is in the U.S. interest to stay engaged in Kenya because of its economic potential and overriding strategic importance in the region. Kenya's continued stability is crucial to regional stability and development, and therefore contributes to U.S. national interests of peace, stability, and economic growth throughout the entire region. Kenya remains the strongest economy in the Greater Horn of Africa (GHA) region. It has a vibrant private sector and serves as the trading and commercial hub for countries in the region. It is important in providing sea access for several landlocked countries. It is also a major port of entry and transfer for humanitarian commodities for needy populations throughout the region. Kenya has a relatively developed and sophisticated financial system. The Nairobi Stock Exchange has grown to become a real stock market. Trade with the U.S. private sector is on the rise. There are more than 75 American companies, representing investments of almost $300 million, doing business in Kenya and pursuing opportunities in East and Central Africa.
Because of its regional influence and stature, Kenya plays a critical role in President Clinton's Greater Horn of Africa Initiative (GHAT). As one of the largest and most stable countries in the region, Kenya is pivotal to the success of the East Africa Community and increased integration through the Inter-Governmental Authority on Development (IGAD), as well as other efforts to resolve ongoing crises or prevent future crises in the GHA.
Development Challenges.
The most daunting development challenges facing Kenya are: poverty reduction, illiteracy and falling school enrollment, democratic reform, slowing rapid population growth, child mortality and emerging diseases, and preventing the spread of HIV/AIDS, and infrastructure destruction due to floods.
Kenyan presidential and parliamentary elections were held on December 29-30. While logistical chaos prevailed on election day, the results, on the whole, reflected the wishes of the Kenyan people, according to domestic observers and international observers from 22 diplomatic missions, including the United States. It was principally the work of many of the organizations supported by USAID that prompted the GOK to accede to reforms prior to the December 1997 elections which helped to ensure a more open electoral contest than in 1992, when the previous elections were held. Due to this support, Kenya has many fundamentals of a democratic society: strong civic institutions, including a vocal press, and citizens committed to the ideals of democracy. USAID will continue to assist Kenyans to undertake the constitutional and legal reforms necessary for the political transformation of their country.
USAID is addressing poverty reduction through its support to microenterprises and commercialization of smallholder agriculture. Past commercialization reform work in the cereals market has resulted in the Government of Kenya (GOK) reducing control over grain marketing, farmers receiving over 80% of the market price compared to less than 70% in 1992, an increase in the number of grain retailers and maize meal consumers in urban areas saving up to $20 million annually as they shift from highly refined meal to more nutritious whole meal. USAID support to the Kenya Association of Manufacturers and the Fresh Produce Export Association of Kenya has led to diversification of Kenya's overall export base.
Finally, USAID is addressing population growth; HIV/AIDs; and major preventable diseases affecting child survival. As the leading donor in this sector, USAID has contributed to a rapid decrease in the total fertility rate (8.1 in 1978 to 4.8 in 1997). Condom sales are estimated to have averted about 190,000 new HIV infections.
Kenya's external debt burden service stands at about 157% of exports. Although this figure is below the debt/export ratio of 200-250% considered as the threshold for heavily indebted countries, it is still high for a developing country.
Other Donors
Currently, the United States is the fifth largest bilateral donor to Kenya, and eight overall among donors. Other donors that complement the USAID program include Japan (the largest bilateral donor providing about $200 million annually), the World Bank (the largest multilateral donor), the International Monetary Fund, the Africa Development Bank, Britain, Germany, Denmark, Sweden, Netherlands, the European Union, United Nations Development Program, and the World Food Program. USAID is still seen as a leading donor because of its long engagement in Kenya's development.
FY 1999 Program
USAID's strategy for assisting Kenya to achieve broad-based and sustainable economic growth and improve quality of life of the poor concentrates on three objectives: (1) creating effective demand for sustainable political, constitutional and legal reform; (2) increasing commercialization of smallholder agriculture and natural resources management; and (3) reducing fertility and the risk of HIV/AIDS transmission through sustainable, integrated family planning and health services. The USAID strategy emphasizes transition from dependency on donors to more sustainable development.
The USAID democracy program seeks to increase civic participation by creating effective demand for sustainable political, constitutional and legal reform. The program focuses on three areas: 1) strengthening civil society, with an emphasis on women's participation; 2) developing a more transparent and fair electoral process; and (3) promoting conflict management. In the Spring of 1998, USAID will examine its democracy and governance strategy in light of the December 1997 elections and USAID'S investments in this sector. USAID will continue to focus resources on developing civil society groups and working with the non-governmental organizations (NGOs) to continue their efforts to strengthen the role of civil society in demanding political, constitutional and legal reform.
USAID's economic growth program strives to commercialize smallholder agriculture and natural resource management. The key to economic growth in Kenya lies in the agricultural sector which employs 70% of the Kenyan workforce and in the microenterprise sector which is exhibiting the fastest employment growth rate. USAID's program is designed to strengthen private sector participation and competitiveness in export and agricultural markets in Kenya and to increase employment opportunities in the microenterprise sector. USAID also supports income generating programs that support the sustainable development of the natural environment by communities living adjacent to national parks. Programs not only preserve the natural environment, but they contribute to the tourism industry as well. USAID's population and health program focuses in reducing fertility and the risk of HIV/AIDS transmission through sustainable, integrated family planning and health services. USAID provides family planning assistance related to service delivery and quality of care, information and education, and commodities management. Health reforms supported by USAID include restructuring and decentralization of health care management and financing, rationalizing the drug procurement and distribution systems, and promoting sustainability of the health sector in order to reduce donor dependence. USAID also concentrates increased resources in HIV/AIDS, child survival, and emerging diseases.
KENYA
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)
USAID
Strategic and Special
ObjectivesEconomic
Growth &
Agriculture
Population
& Health
Environment
DemocracyHuman
Capacity
Development
Humanitarian
Assistance
TOTALS
S.O 1. Effective Demand for Sustainable Political, Constitutional and Legal Reform Created.
- DA
---
---
---
2,500
---
---
2,500
S.O. 2. Increase Commercializati on of Smallholder Agriculture and Natural Resources Management.
- DA
- P.L. 480/II
4,000
---
---
---
800
---
---
---
---
---
---
8,228
4,800
8,228S.O. 3. Reduce Fertility & Risk of HIV/AIDS Transmission through Sustainable, Integrated Family Planning and Health Services.
- CSD
- DA
---
---
5,700
6,300
---
---
---
---
---
---
---
---
5,700
6,300Totals
-CSD
- DA
- P.L. 480/II
---
4,000
---
5,700
6,300
---
---
800
---
---
2,500
---
---
---
---
---
---
8,228
5,700
13,600
8,228
USAID Mission Director, Dr. George Jones
ACTIVITY DATA SHEET
PROGRAM: KENYA
TITLE AND NUMBER: Effective Demand for Sustainable Political, Constitutional and Legal Reform Created, 615-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,500,000 DA
INITIAL OBLIGATION: FY 1995 ; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To create effective demand for sustainable political, constitutional, and legal reform. This will be achieved through strengthening of civil society organizations, with emphasis on the participation of women, and working towards a more transparent and fair electoral process.
USAID Role and Achievements to Date: The results of USAID support to civil society were dramatically demonstrated this year as groups which USAID funded effectively challenged the Government of Kenya (GOK) and demanded election reforms. These groups put the reform on the agenda and pressured the GOK to accede to the reforms proposed by the Inter-Parties Parliamentary Group (IPPG). Due to the IPPG and continued demands for reform, most political parties that were denied registration were registered; laws were amended to allow for freedom of assembly; government officials were largely removed from the administration of the electoral process; equality of media time for opposition parties was allowed and a commitment was made by the GOK and the IPPG to participate in a post-election constitutional review process. The reforms, while late and not as far reaching as they should have been, meant that campaigning went on in a relatively open and peaceful manner, far more peaceful than in 1992. Kenyan presidential and parliamentary elections were held on December 29-30. While logistical chaos prevailed on election day, the results, on the whole, reflected the wishes of the Kenyan people, according to domestic observers and international observers from 22 diplomatic missions, including the United States. While the U.S. Embassy and USAID put pressure on the GOK to reform, the real pressure came from the Kenyan civil society. The main lesson learned is that the most important pressure for change in Kenya comes from the Kenyan people themselves and that the pressure for change must continue.
Another success story for USAID investment in elections was the domestic monitoring effort. With USAID and other donor funding, the National Council of Churches of Kenya, the Catholic Church, and the Institute for Education in Democracy trained about 28,126 local monitors who were deployed, at least two per polling station and three per counting hall. Earlier, 840 monitors observed the nomination and campaign process. This extensive effort enabled the non-governmental organizations (NGOs) to issue the most authoritative assessment on the conduct of the elections. The National Democratic Institute (NDI) played critical role in this electoral process. NDI trained the trainers of these monitors as well as some party observers. Through NDI's efforts, the numbers and quality of trained monitors and observers was greatly increased. Thus, Kenyans took the ownership of the process and Kenyans passed the final judgement on the acceptability of the elections.
USAID-assisted civil society organizations have also focused public attention on vital problems of governance, including the rising crime rate, police brutality and the abuse of human rights. The Kenya Human Rights Commission has persistently taken the government to task on the issues of police brutality including police killings and forced confessions. They have produced and publicized documentary evidence of such injustices which has been carried in the print media, quarterly reports and other periodic local and international publications. This forced the GOK to acknowledge the existence of such abuses, especially the mistreatment of prisoners and suspects.
Description: USAID's democracy and governance program has three primary concerns: 1) strengthening civil society, with an emphasis on women's participation; 2) developing a more transparent and fair electoral process; and (3) promoting conflict management.
Between FY 1998 and FY 2000, activities will be tightly focused on strengthening civil society and collateral activities supporting the growing demand for legal and constitutional reform, and in building indigenous capacity for policy analysis and information generation. Throughout the period, special emphasis will be given to enhancing the capacity of Kenyan civil society and government to avert, contain, manage, and resolve violent ethnic, racial or religious conflicts.
In spring 1998, USAID will reexamine its democracy and governance strategic approach to determine the most appropriate direction for further assistance in light of the election process and the impact of USAID'S investments in this sector.
Host Country and Other Donors: USAID'S Democracy and Governance program is designed specifically to work solely with NGOs, not with the GOK. Many donors look toward USAID for coordination and leadership in policy dialogue and resource allocation. In terms of funds channelled through civil society NGOs, the United States is the leading donor. Other donors include the World Bank, the United Nations Development Program, Finland, Austria, Germany, Switzerland, Denmark, Netherlands, Sweden, Norway and the Ford Foundation.
Beneficiaries: The people of Kenya, through USAID's work with the politically active NGO community. USAID supports the civic work of the three main churches in Kenya - the National Council of Churches in Kenya, Catholic Justice & Peace Commission and Church of Province of Kenya.
Principal Contractors, Grantees or Agencies: To the extent possible, USAID will implement this program through Kenyan NGOs. U.S. private voluntary organizations (PVOs) will be encouraged to enter into partnership with local NGOs in order to enhance the capacity of local NGOs and to promote sustainability. Currently, USAID has awarded 35 grants to local NGOs active in the Democracy and Governance sector. The major grantees are: NDI, Marquette University, the Kenya Human Rights Commission, Institute of Policy Analysis and Research, International Commission of Jurists, International Federation of Women Lawyers-Kenya Chapter, National Commission of Status of Women, Public Law Institute, National Council of Churches and Catholic Church.
Major Results Indicators: Baseline Target (1992) (2000) Weighted Effective Demand Index Increases 1.0 4.0 USAID-supported organizations offering civic education programs 10% 75% Number of women candidates contesting local and national elections 150 200 Petitions challenging election outcomes filed as percentage of total election contests 19.6 25
. This composite index is calculated by summing up the weighted values assigned to the following factors, on a scale of one to five, one being the lowest and five the highest possible score: interest groups initiate debate; local groups respond quickly to adverse actions/condition; and, relevant interest groups form coalitions.
ACTIVITY DATA SHEET
PROGRAM: KENYA
TITLE AND NUMBER: Increase Commercialization of Smallholder Agriculture and Natural Resource Management, 615-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,800,000 DA; $8,227,710 P.L. 480, Title II
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To increase productivity and incomes of smallholders in agriculture and improve natural resource management.
USAID Role and Achievement to Date: USAID support for economic growth includes efforts to increase agriculture production, employment, income, and foreign exchange earnings. Between 1972 and 1993, key strategies of agriculture investments by USAID in areas such as research, policy reform, education, grain storage, and non-traditional agricultural exports contributed significantly to Kenya's economic growth. One area in which Kenya has excelled is horticulture exports, which have been increasing annually by more than 10% in recent years. Creating new markets for agriculture and providing jobs for surplus agriculture labor requires attention to microenterprise development, an activity integrally linked to USAID's economic growth strategy. USAID has been and continues to be a lead donor in microenterprise development, a sector that provides more opportunities for rural and urban labor than any other sector in Kenya. Finally, USAID supports programs encouraging sustainable development of natural wildlife and tourism resources. These programs, which contribute significantly to the tourism industry in Kenya, foster strong community participation as communities themselves manage the majority of the programs' operational components.
Description: USAID's activities seek to: 1) strengthen and make more competitive agricultural markets, 2) increase off-farm job opportunities for smallholders through microenterprise development and natural resource management-related businesses, and 3) increase growth of non-traditional agricultural exports. These activities contribute significantly to key Agency initiatives, particularly the Greater Horn of Africa and microenterprise development. USAID investments in markets and high-yielding inputs will support Kenya's role as a regional model for research and source of improved seed varieties. In addition, USAID policy analysis and reform dialogue will facilitate regional trade. USAID investments in non-governmental organizations (NGOs) that provide services to microenterprises include assistance to the first African microenterprise-lending NGO to become a viable banking facility. As smallholder agriculture is commercialized, agricultural productivity will increase, thereby stimulating positive growth in the agriculture sector. Such growth will directly affect economic growth, employment creation, income opportunities, and food security for all Kenyans. In the more marginal areas, USAID investments in community wildlife development and P.L. 480 projects will help move those communities from relief dependency to sustainable development.
USAID's support of the P.L. 480 Title II program helps USAID to reach over 300,000 smallholder farmers and pastoralists living in marginal agricultural zones of the country. Apart from their substandard living standards and chronic food insecurity, these populations fall victim to extremities of natural disasters such as cyclical droughts, and/or flooding resulting from torrential rains.
The P.L. 480 Title II programs seeks to address, on a sustainable basis, the problems of these communities through interventions such as:
* promotion of effective health, nutrition and sanitation practices, especially among women and children;
* promotion of modern agricultural production, extension, agro-forestry, post-harvest grain handling and marketing practices;
* promotion of appropriate natural resource management practices to check environmental degradation; and
* promotion of improved water management practices.
The program directly supports two agency goals; "broad-based economic growth" and "providing humanitarian assistance." Additionally, Title II activities directly contribute to the accomplishment of the mission's sub-goal of "increased food security". Monetization of Title II commodities by PVO partners will continue to be the main source of funding for
P.L. 480 Title II........................... development projects.
Host Country and Other Donors: The World Bank is the major donor for agriculture. In addition, the United Kingdom, the Netherlands, Germany, the European Union and USAID support applied agricultural research, agricultural policy analysis, infrastructure development, macroeconomic stabilization, and biodiversity conservation. In environment and microenterprise, the GOK, USAID, the British Department for International Development, the European Union, the World Bank, and the Netherlands are the principal donors and closely coordinate investments.
Beneficiaries: Approximately three million smallholder farmer households, who constitute 80% of Kenyan households and account for 75% of total agriculture production, will be the main beneficiaries of this program. Secondary beneficiaries include local implementing agencies whose capacity has been strengthened by USAID programs. Examples of these beneficiaries include Kenya Agriculture Research Institute, Fresh Produce Export Association of Kenya, Kenya Association of Manufacturers, and Kenya Rural Enterprise Program. The disadvantaged pastoral communities in the arid and semi-arid regions of Kenya benefit most significantly from the community-based eco-tourism programs.
Principal Contractors, Grantees or Agencies: USAID will implement the activity through U.S. universities, private and public non-profit organizations, and U.S. and host country NGOs. The major grantees and contractors include Food for the Hungry, Catholic Relief Services, World Vision, Development Alternative, Inc., Technoserve, Fresh Produce Exporters of Kenya, Kenya Rural Enterprise Program, Kenya Management Assistance Program, American Breeders Service, Appropriate Technologies for Enterprise Creation, and the International Center for Economic Growth.
Major Results Indicators: Baseline Target Percentage of smallholder maize 35% (1996) 50% (2000) production marketed Percentage of maize/milk sales 5%/40% (1995) 15%/25% (2000) to state corporations Employment in micro-and small- 1.2 (1994) 1.7 (2000) enterprises (millions) Non-traditional export 22% (1995) 35% (2000) earnings as a percentage of total export earnings Growth in selected natural resource management related investments in USAID target areas 0% (1995) 38% (1998)
ACTIVITY DATA SHEET
PROGRAM: KENYA
TITLE AND NUMBER: Reduce Fertility and the Risk of HIV/AIDS Transmission Through Sustainable, Integrated Family Planning and Health Services, 615-SO03.
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $5,700,000 CSD; $6,300,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To reduce fertility and the risk of HIV/AIDS transmission through sustainable, integrated family planning and health services.
USAID Role and Achievements to Date: Since 1984, USAID has been the lead donor to the Kenya national family planning (FP) program, despite significant budget cuts beginning in 1995. USAID's financial, technical and commodity assistance has contributed to one of the fastest fertility declines in the world: from 1977-78 to 1996, Kenya's total fertility rate (TFR) dropped from 8.1 births to 4.8 births per woman. The population growth rate declined from over 4% per annum in 1980-85 to 2.6% in mid-1997. A major contributing factor to these declines has been an increase in the modern contraceptive prevalence rate (CPR). From 1984 to 1996, the CPR increased from 8% to 28% among all women of reproductive age (15-49), due in part to intensive USAID assistance. Successful donor financing and USAID technical leadership to launch the 1998 Demographic and Health Survey will provide a wide variety of data in FY 1998 to further measure progress in the areas of population, HIV/AIDS control and child survival (CS).
USAID continues to be at the forefront of a move by key donors to assist the Ministry of Health (MOH) to adapt a sector-wide approach to programming of donor and government resources in the health sector. USAID additionally provides technical assistance to the MOH Division of Health Care Financing concerned with strengthening and institutionalizing the MOH's health care financing program. USAID is developing alternative private health care financing mechanisms, enhancing the management and financial self-sufficiency of FP/AIDS non-government organizations (NGOs); and ensuring a reliable public sector supply of drugs. The MOH cost-sharing program, initiated in 1989 with USAID assistance, has generated over $28 million in revenues to be used for non-wage recurrent expenditures (e.g., gas, electricity, water).
In the area of HIV/AIDS, USAID continues to provide AIDS information and behavior change services through NGOs, building upon previous support to the Kenya NGO AIDS Consortium and MAP International, which works with religious organizations. Broader programs aimed at youth and at disadvantaged groups will be developed, as well as preparation in FY 1998 of a full-scale assessment to guide USAID HIV/AIDS efforts from FY 1999 through FY 2004. Actual use of condoms continues to increase: condoms sold through the social marketing project have increased to almost 800,000 a month, improving access to this critical AIDS prevention measure. Finally, USAID's input to prepare the book, "AIDS in Kenya" outlining the detrimental effects of AIDS on Kenya's economy and society, formed the basis for the successful passage of a national AIDS policy in Parliament in FY 1997.
Description: USAID's AIDS, Population and Health Integrated Assistance (APHIA) Project provides bilateral support to key implementing institutions and technical assistance to the Kenya MOH and to NGOs. APHIA emphasizes advocacy and policy change (through population and AIDS projections and by seeking improved standards for FP service provision); commodity management and logistics (for both FP commodities and sexually transmitted diseases drugs); training of health workers (more effective, integrated FP services); operations research, special studies and national surveys (including the Demographic and Health Survey); public education and communications for behavior change; community-based delivery of integrated FP and CS services; commercial marketing of health commodities (condoms as well as other health commodities); and development of pilot projects in malaria control. APHIA will help public and private sector implementors of FP, HIV/AIDS and CS
services focus more on sustainability and selected NGOs will be targeted for endowments to enable them to become self-sustaining. In the public sector, technical assistance will improve the National Health Insurance Fund's efficiency in collecting reimbursements from its clients, thereby increasing the level of revenues available to the MOH.
Host Country and Other Donors: In the population sector, the GOK, the United Nations Population Fund and the United Kingdom's Department for International Development provide the widest range of technical and commodity assistance. Other donors include Sweden and Germany. The World Bank finances contraceptives, but this project is winding down. Under the United States/Japan Common Agenda, the Japan International Cooperation Agency and USAID have identified several potential areas of collaboration in the health sector, including assistance to a provincial hospital which is a lead institution in health sector reform. In HIV/AIDS and control of sexually transmitted infections (STIs), major donors include the United Kingdom, Belgium, Japan, Finland, the United Nations Development Program, the European Union, and the GOK. The World Bank's $40 million credit for a project to control STIs is a major source of assistance. The United States is ranked fifth in the STIs sector, but plays an important part in donor coordination.
Beneficiaries: Beneficiaries include 6,735,000 women and 7,935,000 men of reproductive age, and 4,741,000 children under five.
Principal Contractors, Grantees or Agencies: USAID implements activities through the GOK, 13 international private voluntary organizations/universities, and several dozen Kenyan NGOs. The major ones are the Kenya AIDS NGO Consortium, MAP International, Family Planning Association of Kenya, Christian Health Association of Kenya, national women's organization, and the Church of the Province of Kenya.
Major Results Indicators: Baseline Target (1996) (2000) Cost-sharing revenue in the $6.7 million/year $9.0 million/year public sector Contraceptive supplies 80% of required supplies 90% of required maintained at service on hand at service supplies on hand at delivery points service delivery points service delivery points Private sector condom sales 500,000/month 1 million/month External grant and loan 35% of total grants/ 50% of total grants/ resources available for loans from non-USAID loans from non-USAID FP and HIV/AIDS sources sources activities (other donor assistance) Modern contraceptive 28% 38% prevalence rate (all women)
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