| The Scam of Vision 2030 is real. It is criminal and pathetic. It is a continuation of Colonialism Conspiracy by the Unscrupulous International Corporate Special Business Interest commissioning Chinese Agents to facilitate Free Trading investments in Kenya/East Africa and Sub-Sahara African in jeopardy to rip-off and steal from Africa's Wealth Resource corruptly, illicitly, with impunity and in graft without due care for Human Rights, and in full glare of Violation of all forms of human rights and abuse of the same. I don't agree that being black is associated with poverty. It is a condition through oppressive rule, intimidation and marginalization that majority of middle-class and the disadvantaged poor are systematically pushed through an organized calculated jeopardy in a conspiracy theory to benefit unscrupulous International Corporate Special Business Interest group of close friends, who use their wealth, connection and power to lobby, monopolize and control International business through terrorizing people and through influencing threats and fears, intimidation and marginalization against those who oppose or challenge their interest to suppress human rights. In the Ancient times in history, Africans in their Community had their cultures and traditions, with their Kings including ancient Egyptians who were Black. During that time and even now, Africans are known to be peaceful and prosperous. More specifically the Nilotics never begged for food. They tilled and saved enough to feed the whole family for the rest of the year until the next rainy season before colonization begun. Some of the greatest civilizations that have ever existed, existed in Africa and the Middle east. However, for whatever reason, there cultures have collapsed. The conspiracy to sell guns to Africans corrupt leaders so Africans kill and destroy themselves for the colonizer to walk free and loot owning African Wealth and Resources is what is destroying peace and unity with excessive poverty in Africa. African families, women and children are terrorized, carelessly killed, exposed to pain and sufferings, their livelihood and survival are being destroyed and the world is turning a blind eye. After the Colonials have looted and exploited Africa's wealth and resources and enslaved Africa financially through World Bank, IMF with other UN Financial Institutions, these International Special Interest business network to conspire with the Chinese to physically rape and destroy Africa through environmental pollution; taking and controlling all business potentials and shipping wealth and Natural Resource to China Industries. This is a serious crime against humanity. It violates and abuse human dignity value and virtue in ways and means and it cannot be tolerated. A properly working society in a good Democratic governance is possible to shape Africa to its former Glory, if the jeopardy of conspiracy which the black people have endured in some of the worst and most horrific acts of racism and bigotry against them by the Special Interest begin to respect Human Rights and see reality for what it is. Making Profit from killings and destroying livelihood and survival from the Pearl of Africa and marginalizing, intimidating and oppressing people of African descent from living an honest responsible and dignified livelihood is the worse criminal act ever known on earth since creation. Africans are destroyed and wiped out from brutal, long pain suffering organized terrorism of a Jungle primitive warfare, feeding black with cocaine drugs etc., for sinister motives is cruel and pathetic……and this must stop……… It cannot be denied the fact that there is a Conspiracy against blacks ..........crack cocaine was invented to destroy black people. Child prostitution, Trafficking and porno is invented to destroy Black families. Mostly the Rich and wealthy whites hates black with a passion and none of it is secret. Things cannot continue to be this way……..We have pleaded and prayed for Peace and Unity, we have paid by our Blood and Sweat, what else shall we do to get the respect we deserve as Human Beings and be treated with respect…….??? "Give and Take" Fair Business Undertaking: We believe that Respect must be a two ways traffic………Give and Take……and in Mutual common interest, we all must engage in business where all must play by the same set of rules. This will bring greater harmony, Peace and Unity and in sharing our cultural values in diversity. Precious Gold, Diamond, Colta, Titanium, Oil, Water, Agricultural Produce for Business and Jewellery Trade: This business have caused a lot of harm to our brothers and sisters in Congo and Ethiopia. Diamond and Gold as Blood money in Congo have been advocated by many Civil Societies, NGOs and sympathizers and the killings of Congolese is still going on…..There are deliberate attempts from some powerful rich and powerful who hate and are in conspiracy to cause confusion and fuel animosity at subversion of black culture, in a few incidents forcing men to circumcise against their tradition and culture over a conspiracy of HIV/Aids when it is clearly and scientifically known that HIV/Aids is not spread by the un-cut….!!!!!! Ethiopia was once known as the "jewel of the world" until after World War Two….... Patrice Lumumba of Congo is popularly believed, was brutally killed because he demanded Fair Trading with good Democratic Governance……..and because the powerful White Traders demanded to control wealth of the Congolese at their disposal without Regulation or Fair Deal to the Congolese. Gold offered no better a story. We witnessed shocking conditions in the gold mining areas where people claim they are forced to live with dangerously high levels of pollution around the mines and where poverty drives men to mine illegally. Cocoa, Tea, Coffee, Titanium, Colta, Gold & Diamond, Oil, Water, Fish and Agri-Business are all traded at the International Emerging Markets, an example of only 1- 3% of African Trading Commodities is known to have been purchased at the fair trading price. But the situation is worsening since Africans are not represented at the G20 to bargain for their fair value……Who is really profiting from Agricultural and Mineral Produce with outsourced Industry products…….??? Vision 2030 in Kenya/East Africa and the Sub-Sahara: The Bank campaigned for free-market without consideration of value to Africa's potentials. Structural Adjustment Program (SAP) is one of their tool attached to the manipulation of loan to Africa which has caused economic instability, caused many scandals to slide including Political and social disintegration with environmental disasters posing in numerous African developing countries. The Bank collaborated with dictators with corrupt governments to push for conditions of the spoil. It was their conspiracy to African values and dignity to destroy cultural values for greater diversity, profit in democracy and human rights and this made World Bank, IMF and United Nations Financial Institution "Wicked" when it comes to matters of Black and Africa. Vision 2030 is not realistic. President Kibaki appointed Mugo Kibati as Director General of the Vision Delivery Secretariat." This secretariat was not Legitimately appointed by the Parliament or supervised by the CIC. It was set up as a semi-autonomous Government Agency with an independent budget. A lot of money has been transferred from the World Bank, IMF with other UN Financial Trading Organizations for Vision 2030 program without details of feasibility or logistics for Statement of Facts to be used by the Legislatures in Parliament for guidance or reference. These endless corrupt schemes are creating an unjust society and eventually, people are going to figure out that they are being fooled and they are going to react. The demographics of the country should be a warning sign to everyone that this reaction is on it's way. International Corporate Special Interest Engagement: Regulatory principles for Engagement Business Commitment of Corporate Investments to embrace the value driven for Vision 2030 Pathways and Resources to facilitate shared values where it creates meaningful opportunities for the Corporates interests to promote incentives for healthier working environment between the Investments Corporates and those of the Public/Society/Community's interest to participate in employment or contribute in Welfare Development programs to provide a balance benefiting all according to public mandate is not indicative anywhere and people are left with hanging questions of authenticity and legitimacy. This vision 2030 is a scam. The Coalition Government plan to use this project for their self-interest and self-gain and not that of the public. The money is believed to have been diverted through Equity bank. James Mwangi just happen to be rubber stamped as the Chairman of the vision 2030 committee. Vision 2030 is used as a ponzi scheme or Hedge Funding for the rest of the Regional programs for East Africa. They needed a continuous cash flow to keep going, and thus using Government Facilities and Utilities to facilitate the same. Equities customer deposits are too low to keep the scheme going. The difference will be made up by government funded projects in the name of vision 2030, yet it is a private entity.......This must be investigated........
In Public Demand, What information should we know about Lamu Port and why is the constant killings of the innocent local community in Tana River, Turkana and in Lamu ? Kenya's Lamu Port Corridor proposal, part of "Vision 2030", would be Kenya's biggest ever civil engineering project. It would build a pipeline to deliver oil from South Sudan to a new refinery near Lamu on the coast, build facilities to ship the oil from a giant tanker terminal, lay more than 1700km of new highways and railways to South Sudan and Ethiopia, and build three new airports and tourist resorts in Lamu, Isiolo and at Lake Turkana. The consultancy project alone – with Japan Port Consultants – will cost the Kenya treasury more than $20 million. The padding out of the price tag with unnecessary and highly paid staff has been the subject of an investigation by Jaindi Kisero at the Daily Nation. As Jaindi points out, there is no mention of the Lamu Port Corridor consultancy on Japan Port Consultants' website, though JPC does profile their agreement on a Mombasa port consultancy (use the Google Chrome browser for in-page translation). It's also curious that consultancy work on a massive road, rail, airport and hotel-building project has been commissioned to a consultancy specialising in harbours and shipping. Concerned Anonymous on July 24, 2010 at 5:16 am Since then,the picture has only been rosy for the cable manufacturer. Last year,it expanded by acquiring a 51 per cent stake in Tanzania's Daesung Cables. The price tag was Shs 160 million. And for now the sky is the new port of call for the cable manufacturer. At the juncture,the Merali/Moi group pounced. They hurriedly patched up a company,Yana Trading,as a subsidiary of Sameer and made a quick purchase of the cable manufacturer. They bought the company at a throw away price of Shs 110 million against its market value of Shs 274 million. So, in the broader scheme of things, you should be looking at these stories and asking yourself, how can one operate in a wheel & deal culture (or a semi-criminal economy) when the playing field is either not level or totally corrupt? To think you can do it just on hard work or innovation would be quite naive. What are the proposed benefits of the Lamu Port Corridor and who will benefit in the short term….? What are the value prospects in measurable short and long term against the total cost of expenditure ?? The main benefits would be the economic development of northern Coast Province and the districts of northern Kenya through which the pipeline and railway route would pass. A secondary benefit would be to create a strategic communications route through north-east Kenya, a region currently exposed to the dangers of Somalia's ongoing disintegration and lawlessness. What negative impact would the project have on Lamu Environmental pollution?....How is the Government organized to safeguard that??? Most dramatically, there would be a huge influx of migrant labourers from other parts of Kenya. Lamu town would become a service and transport hub. A bridge to the mainland and a fast highway to Malindi would be likely to follow, which would bring roads, vehicles and building development onto Lamu. This level of infrastructure development is incompatible with Lamu's status as a Unesco World Heritage site. The town is the best existing example of a Swahili city and preserves a mass of features, through which its origins can be traced to the 14th century or earlier. Would locals benefit from the development at the port?......If yes, how??? In many cases there would be financial benefits in terms of jobs for school-leavers and bigger markets for local businesses. Some locals might also consider closer physical links with the rest of Kenya to be an advantage, emphasizing national unity. What are the disadvantages the locals might see and are there impacts the public are witnessing from the ongoing projects….?....How is the Government relating to those disadvantages…..??? Rapid, economic development parachuted onto the district would be socially disruptive. Much of the social fabric in Lamu is held together by tradition and family connections and those would be severely challenged by new opportunities and inward migration. Lamu's attraction as a destination for low-key, getaway cultural tourism would face equally severe challenges which would likely see it morph into a northern version of the international-style hotel development common near Mombasa. Can the development be stopped or changed? The consultancy process alone has already cost the Kenya treasury more than Ksh1 billion ($11 million). The normal tender process wasn't used before the Japanese consultancy was recruited, and massive corruption is being investigated by the media. The treasury has now obtained a 35% discount on the consultancy fees, and payments are currently on hold. Building the facilities and the railway links to South Sudan and Ethiopia would be extremely costly and the project would carry some security risk from local banditry and even Somali jihadists. Even if construction starts, it is quite likely that Ethiopia and South Sudan will have made other export arrangements long before it is completed.
Is a more sustainable, less intrusive option available? Yes, the full development of Mombasa port and a high-speed rail link to Nairobi and Uganda would be much more cost-effective and would sit on or alongside existing infrastructure. In terms of distance, the Lamu plan has no tangible benefits to exporters based in Juba, Addis Ababa or northern Kenya over this alternative. A new oil pipeline from South Sudan could be routed to Mombasa just as easily as to Lamu. Whose Gains and Interest is pushing for this project? Japanese consultants, Chinese and local contractors, and local vested interests. It is said to be "close to President Kibaki's heart" – or just where his wallet resides, as many Kenyans would say. How likely is it that the project will go ahead? The Lamu Port Corridor consultancy is the most expensive feasibility study ever undertaken by the Kenya government. The whole project may yet turn out to have been, either deliberately or through mismanagement, a massive white elephant consultancy project intended to offer the biggest possible private benefit to every party involved without, in the end, delivering a feasible programme for actually carrying out the work. It is funny in a very sad way the way people are defending Equity and Transcentury. They are both pale imitations of a model that is broken, has collapsed in the West, but is now being defended as indigenous to Kenya. AIG? Bear Stearn's anyone? Nobody seems to look at the origination of the economic model, it was started during the era of the Structural Adjustment Programmes advocated by IMF, World Bank the "Chicago Boys". If Kenya's goal is to emulate or simply copied some of the Asian nations program, then maybe we should emulate their economic strategies. Was there a thorough feasibility study…??? During the 90′s they " resisted the Washington consensus. They put restrictions on capital flows. The giants of Asia—China and India—managed their economies their own way, producing unprecedented growth But elsewhere, and especially in the countries where the World Bank and the I.M.F. held sway, things did not go well." (Vanity Fair article, http://www.vanityfair.com/poli.....debt200907). If there is to be true economic growth, we need a better vision. For those concerned about KE's observations, his thoughts are what quite a number of overseas investors can see in the Kenyan economy. Also, this focus on overseas investors, interesting… hmm? Btw, are there still discussions of privatization of water? Can you imagine what that effect would have on ordinary people? It is telling that someone would think that only 50 percent of Kenyans are in poverty. This is how the PEV happened and yet it seems nobody in Special Branch knew what was happening. Keep up the work, KE. Let the people know the Emperor is naked. Taking the very long view in strategic planning, is there something to worry about?? Vision statements are fine tools for ensuring that an executive team - and an entire company - are focused on the same things; however, they are often used badly. Before a team sits down to define the future, it is safe to assume that each person comes with two different understandings: the exact year 'the future' refers to; and what constitutes his/her vision for that year. Too many companies jump right into statement building only to discover after consensus is achieved that half the team is in 2021 while the other half is in 2012. Some never discover this fact and suffer when discord breaks out as budgets, targets, and interim measures need to be defined.
Good future statements are based on specific years, with follow-up report, does this vision have the same followed with monitory and inspection, if so, by who…..??? The fact is, it is impossible to accomplish big goals unless you are able to see that far in your mind's eye.
What prevents these 20- and 30-year visions from turning into random fantasies is the next step: laying out the details of what happens in the planning year. Once the team completes the prior two steps, they can describe the destination in measurable details. Revenues, profits, financial ratios, headcounts, physical locations, geographic locations, bi-lingual abilities, these are all examples of the metrics that are used to convert a far-away future into a coherent, measurable goal. The last step is the so-called Merlin Process in which the future targets are connected to today's actuals in a single matrix. Many adjustments take place at this step as the team ensures that there is a feasible pathway from the present to the planning year. Unfortunately, this is usually the point at which some nice-to-haves must be discarded as the true essence of the plan emerges.
Vision 2030: Reality or Mirage?
Wednesday, June 11, 2008
President Mwai Kibaki flanked by PM Rt. Hon. Raila Odinga, VP Hon. Kalonzo Musyoka and Minister for Planning Hon. Wycliffe Oparanya unveils the Vision 2030 Logo after he officially launched the vision and its First Medium Term plan at KICC, Nairobi.
Government of Kenya launches the most ambitious development plan since independence The Kenya Vision 2030 has finally been launched after the successful harmonization of the 2007 pre-election manifestos of ODM, PNU and ODM-K, which are the three main political parties forming the grand coalition government. The vision is planned to be implemented via 5 year medium-term rolling plans that will run concurrently with electoral cycle, and the first phase starts from June 2008 to 2012. According to an upbeat Planning Minister - Wycliffe Oparanya - the government plans to invest a staggering Kshs1.6 trillion (approx. US$25.2 billion) over the next five years so as to transform Kenya into a middle-income earner in the next 22 years. In other words, Kenya wants to play in the same league as the famed Asian 'tigers' – all very laudable. Information released yesterday indicate that Vision 2030 development plan is based on what the government calls three "pillars" namely; economic, social and political pillars. I must admit however, I have not exhaustively read the full version but sneak previews reveal that: The ECONOMIC PILLAR aims at providing prosperity of all Kenyans by the year 2030. In conservative terms, and this is the target government has given itself, Kenya must achieve a GDP growth rate of 10% per annum for the next 25 years beginning next year! Bearing in mind that the growth rate for the last five years was somewhere between 2% to 6% (and these are Kimunya's figures), and that even the current rate is expected to reverse back to 4% as effects of the post election skirmishes sink in, is a 10% growth rate really feasible within the next financial year? Unlikely I say, and even if Kenya achieves this, is it sustainable? The SOCIAL PILLAR seeks to build "a just and cohesive society with social equity in a clean and secure environment" whereas the POLITICAL PILLAR aims at "realising a democratic political system founded on issue-based politics that respects the rule of law, and protects the rights and freedoms of every individual in the Kenyan society" – again all very laudable...... after all this is what ODM has been trying to teach PNU ever since the NARC/LDP days when they were busy hatching anglo-leasing deals! Even to the most optimistic Kenyan, it is hard to imagine that Kenya as a country will actually raise the prerequisite investment, maintain political stability and achieve national cohesion all of which are required to pave the roadmap to the year 2030. And why not, one may ask? Well, for a country led by such self serving politicians who are also anti-reform, this plan is already doomed even before it starts. It is obvious even to a casual observer that the GCG is teetering at the edge of breaking down. Just two days ago, senior ODM member and cabinet minister called a press conference in the company of Spokesman Salim Lone and warned the PNU partner to 'tread carefully'. Before Ntimama's warning could be digested, the bitterly contested parliamentary by-elections in five constituencies were already scheduled and are underway as I type these lines. The very strange coincidence here is that ODM lost two of those seats in the most violent manner earlier this year. These murders are still unresolved! The third had to be annulled when ODM was in the lead and a hired mob barricaded the counting hall while the fourth, in one of the strangest coincident and in what should be the world's first, was called a 'tie' when the ECK announced the elections results. Only the fifth was voluntarily given up by ODM. As if this is not enough, two ODM members died yesterday in a yet to be explained aircraft accident. What is so wrong about being an ODM MP? Are they 'marked' men and women or these deaths are mere coincidences? My take is that 10% economic growth rate and foreign direct investment running into billions of dollars hardly ever comes when only ODM MPs are dying like flies. What's your take? On top of this political minefield, even the minister Oparanya conceded, Kenya has still to overcome humongous challenges such as high unemployment, widespread poverty, gross inequalities in income distribution and development disparities in different regions of the country and gender inequalities. One wonders whether ODM (then LDP) was talking to walls during the initial years of the NARC regime because these are the same issues that have always been highlighted on the national agenda, and are the force behind calls for a peoples' driven reform process! It has taken a bungled election, over a thousand five hundred deaths and massive displacements to harmonize these manifestos. Hopefully this time, ODM (Chungwa Moja Maisha Bora) is in partnership with reasonable gentlemen!
Office of The Prime Minister,Ministry of State for Planning,
National Development and Vision 2030 Treasury BuildingP.O.Box 30005 - 00100Nairobi, KenyaTel.254-20-252299E-mail:psplanning@planning.go.ke Website:www.planning.go.ke
FIRST MEDIUM TERM PLAN,2008 – 2012
Foreword
The publication of KenyaVision 2030:First Medium Term Plan (MTP) 2008-2012 marks a critical milestone for ournation because it is now the primary document which outlines the consensus on policies,reform measures,projectsand programmes that the Grand Coalition Government is committed to implement during 2008-2012.Indeed,the MTPhas taken on board the main policy recommendations of the manifestos of the constituent parties of the Grand CoalitionGovernment as its point of departure.As our country's next Medium Term Plan,the MTP takes over from the Economic Recovery Strategy for Wealth and Employment Creation,2003-2007. It constitutes the first phasein theimplementation of Kenya Vision 2030, whose aim is to transform our country into a modern,globally competitive,middle income country,offering a high quality of life for all citizens by the year 2030.Among the priority areasscheduled for implementation in the initial year of the Plan are projects geared towards national healing andreconciliation,as well as rapid economic reconstruction to reverse the damage and setbacks the country sufferedfollowing the December 2007 General Elections.The prominence given to equity measures in this document istherefore expected to contribute to the reconciliation process and to the overall national economic growth.In support of the goal of achieving high economic growth rate of 10 per cent by 2012,the Plan contains detailed policymeasures and interventions that will be implemented in all sectors of the economy.The policies have also beenprepared to bring about a higher and sustainablegrowth with equity.In this regard,the government is committed,overthe course of the next five years,to attaining the target of reducing the number of Kenyans currently living below thepoverty line,from 46 per cent to 28 per cent.Accordingly,this Plan also outlines specific policy interventions that willbe implemented in various sectors to ensure the realisation of this important goal.Other critical issues and challenges addressed under the various chapters and sections of the Medium Term Planinclude the creation of more employment opportunities especially for the youth who presently constitute the largestsegment of the nation's labour force and the pool of the unemployed.The attainment of gender balance in our nationalprogrammes as well as introducing measures aimed at bringing more equitable development in all regions of ourcountry is another key objective of the Plan. A large part of the financing of the infrastructure and projects scheduled for implementation under the
MTP 2008-2012
is expected to come from the private sector in the form of both local and Foreign Direct Investment (FDI).To facilitate this,the government has developed a policy on Public Private Partnerships (PPPs) and the modalities for its implementationwill soon be put in place.Learning from our previous experience,many important development initiatives have in effect,been constrained by failure to address governance issues coupled with a large quantity of inappropriate and outdatedlegal framework.Consequently,the
MTP 2008-2012 has identified and listed the major critical reforms and pieces oflegislation which need to be enacted and operationalised to ensure that the Plan is successfully implemented.Moreover,a special session of the National Assembly will be called upon to deliberate on the list of critical,legal enabling bills andlegislation that will need to be expeditiously passed to facilitate the implementation of this Medium Term Plan.Finally,I must emphasise that the successful implementation of the
MTP 2008-2012
calls for dedication andcommitment from all Kenyans.Indeed,we will also expect equal support from the private sector and developmentpartners.Kenyans have always appreciated the development assistance they receive from donor friends.I am thereforeconfident that with the renewed spirit of national reconciliation and nationhood,and under the Grand CoalitionGovernment we will collectively achieve the goals set out in this Plan.
H.E.Mwai Kibaki,C.G.H.,M.P.,President and Commander-In-Chief of the Armed Forces of the Republic of Kenya
iii List of Acronyms vi Executive Summary viii Chapter 1:SETTING THE CONTEXT OF THE VISION 2030 MEDIUM TERM PLAN 1.0Overview21.1Progress Achieved under the Economic Recovery Strategy (ERS)21.2The Remaining Challenges31.3Short Term Measures to Address Social-Economic Recovery31.4Equity and Wealth Creation opportunities for the Poor31.5Programmes and Projects for 2008 - 201241.6Information,Education and Communication (IEC) Strategy for the MTP 2008-201261.7Risks to the Implementation of the MTP 2008-2012 and Mitigation Measures6 Chapter 2:THE MACROECONOMIC FRAMEWORK 2.0Overview82.1Situation Analysis of the Economic Performance under the ERS (2003-2007)82.1Impact of External environment102.3Measures to mitigate effects of post-election crisis and growth prospects102.4External Financing132.5Structural Reforms132.6Medium Term Employment Projections14 Chapter 3:FOUNDATIONS FOR NATIONAL TRANSFORMATION 3.0Overview163.1Infrastructure163.2Information and Communications Technology (ICTs)253.3Science,Technology and Innovation293.4Land Reforms343.5Public Sector Reforms363.6Human Resource Development,Labour and Employment383.7Security,Peace Building and Conflict Resolution45 CHAPTER 4:THE ECONOMIC PILLAR 4.0Overview584.1Tourism584.2Agriculture,Livestock and Fishing634.3Wholesale,Retail and International Trade704.4Manufacturing74 4.5Business Process Outsourcing784.6Financial Services79 CHAPTER 5:THE SOCIAL PILLAR 5.0Overview865.1Education and Training 865.2Health975.3Environment,Water and Sanitation1045.4Population,Urbanisation and Housing1125.5Gender,Vulnerable Groups and Youth116 CHAPTER 6:THE POLITICAL PILLAR 6.0Overview1246.1Governance and the Rule of Law1266.2Decentralisation135 CHAPTER 7:THE IMPLEMENTATION FRAMEWORK 7.0Overview1427.1The National Integrated Monitoring and Evaluation Sytem1427.2The Role line Ministries and Government Departments1427.3District/Devolved Level Reporting and Monitoring1437.4The National Economic and Social Council1437.5The Vision Delivery Secretariat1437.6The Vision Delivery Board144 ANNEX:THEIMPLEMENTATION MATRICES 144 LIST OF TABLES Table 2.1:ERS 2003-2007 Targets and Actual Performance11Table 2.2:Real GDP Growth Targets,2008-201211Table 2.3:Projections of Main Macroeconomic Indicators,2008/09 – 2012/1312Table 2.4:External financing Requirement and resources,2007/08 – 2012/13 (US$ Million)13Table 2.5:Employment Projections,2008 - 201214Table 3.6:Interventions in the informal sector ( Jua Kali Sector) over the ERS period39Table 4.1:Tourism Arrivals and Earnings,2002 - 200759Strategic Thrust - Electoral and Political Process129Strategic Thrust - Democracy and Public Participation129Strategic Thrust - Transparency and Accountability Executive Summary •Overview :This Medium Term Plan (MTP) identifies the key policy actions and reforms as well as programmes andprojects that the Grand Coalition Government intends to implement in the period 2008-2012.It is the foundationfor the first phase ofimplementing Kenya Vision 2030 ,Kenya's new,long term policy blueprint.The overallobjective is to realise a higher and sustainable growth of the economy in a more equitable environment,accompanied by increased employment opportunities.The MTP incorporates the activities identified in the Report of the National Accord Implementation Committee on National Reconciliation and Emergency Social and Economic Recovery and the country's One-Year Economic and Social Recovery Plan ,all of which target a quick economicand social recovery,following the destructive aftermath of the December 2007 General elections. •Economic Growth Targets: The MTP aims at increasing real GDP growth from an estimated 7 per cent in 2007to 7.9-8.7 per cent by the years 2009-2010; and to 10 per cent by 2012.Over the next five years,savings andinvestment levels are targeted to increase at a high rate in order to support the high economic growth andemployment creation envisaged under the Plan. •Tourism: The overall strategy for the Tourism sector is to treble national earnings by increasing internationalarrivals from 1.6 million to 3 million,while also increasing the average spending per visitor from Kshs.40,000 to70,000.In this regard,three Tourist Resort Cities will be established in the next five years:one in Isiolo and twoat the Coast to enhance bed capacity and improve the standards of tourist accommodation and facilities. •Agriculture and Livestock: Agriculture contributes directly to over a quarter of the GDP and provides a source oflivelihood to the majority of Kenyans.Indeed,it is expected to grow at a pace of about 6-8 per cent as a result ofvarious measures to be implemented under the MTP,including a reduction in the cost of farm inputs such asfertiliser; improving farm prices; providing higher value addition; improved marketing and the implementation ofpolicies to revitalise the sector,while increasing overall agricultural productivity.The government will also irrigatean additional 1.2 million hectares of land for crop production while five disease-free zones will be established indifferent parts of the country to improve the health and quality of livestock and to facilitate export of livestock andlivestock products into the world market. •Manufacturing,Wholesale and Trade: The sector is targeted to increase from the current 5 per cent to 10 - 12per cent by 2012.To meet this target,two Special Economic Clusters will be set up in Mombasa and in Kisumufor manufacturing establishments.Additionally,at least five Small and Medium Enterprises (SMEs),IndustrialParks and Specialised Economic Zones will be set up.Among the projects to be implemented in the Wholesaleand Trade sector are the construction of wholesale,retail and hawkers markets throughout the country andfacilitating the creation of 1,000 - 1,500 producer business groups. •ICT and BPOs: A BPO Park and digital villages will be established to enhance the low cost of provision of ICTgoods and services while also facilitating productivity and growth of other sectors of the economy.The BPO sectoris expected to create an additional 7,500 jobs and to increase its contribution to GDP by Kshs.10 billion.Theunderground submarine cable currently under construction,along with the implementation of the NationalTerrestrial Fibre Optic Network Project under this Plan will create a positive developmental impact through itsfacilitation of widespread internet connectivity to ensure universal access to ICT throughout the country.All thesewill enhance Kenya's economic competitiveness and development of a knowledge-based society.It will alsocreate new income-earning opportunities for Kenya's youth,thus answering to the acute need for jobs in thatsector of the population. ix VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 •Financial Services: In order to implement the Flagship Projects in the six economic sectors falling under theEconomic pillar of Plan,an estimated Kshs.500 billion will need to be invested.The government will invest Kshs.250 billion in the next five years to ensure the implementation of these projects,with the remaining half expectedto be financed by both local and foreign private investors,and many through PPP arrangements.The FinancialServices sector is thus expected to play a key role in mobilising the savings and investments required toimplement the Medium Term Plan.Among the financial service strategies to be implemented will be the re-organisation of the National Social Security and Pension system; Insurance and Banking sectors as well asSACCOs and capital markets with a view to facilitating higher savings and investment.Measures will thereforebe taken to improve the reach and access of financial services since currently,only 19 per cent of Kenyans haveaccess to formal financial services.The Financial Services will also target improving access to informalbusinesses,SMEs,Youth and Women groups and different categories of entrepreneurs. •Employment and Job-Creation :To increase employment,the Plan targets the creation of an additional 3.5million jobs within the next five years.In order to address equity and poverty reduction,it aims at significantlyreducing the number of Kenyans living in poverty,from 46 per cent to 28 per cent,while raising average annualincomes from an estimated USD 650 in 2006 to USD 992 by 2012.It also seeks to reduce the rural and urban Gini coefficients from the current levels of 0.38 and 0.447 to 0.34 and 0.407 respectively by 2012,while raising thelevel of Kenya's Human Development Index from approximately 0.5 in 2007 to 0.7 by 2012. •Education: Among the programmes and projects planned for the education sector within the next five yearsinclude:constructing and fully equipping 560 secondary schools; building at least one boarding primaryschool in each constituency of the ASAL districts; and recruiting an additional 28,000 school teachers.Otheractivities to be implemented during the Plan period are the integration of the Early Childhood Developmentand Education Programme; the introduction of Special Needs Education into basic education; CurriculumDevelopment and Review as well as developing new programmes towards the enhancement of ICT educationand Adult Basic Education.The target set by 2012 is to raise the primary to secondary school transition rateto 75 per cent and the rate from secondary to university to 15 per cent.All this will help reduce enrolmentdisparities between regions and across gender while advancing national education indicators close to that ofa middle income country. •Health: The main goal of the health sector is to provide affordable and quality health care to all citizens,involving(among other things) the restructuring of the health delivery system in order to shift the emphasis to preventiveand promotive health-care,which will lower the nation's disease burden.A devolution approach will therefore beadopted to facilitate the allocation of funds and responsibility for delivery of health care to district hospitals,healthcentres and clinics.Furthermore,Community-level health units will be introduced to serve local populations.Suchunits will be supported by a well trained cadre of Community–Owned Resource Persons (CORPs) and CommunityHealth Extension Workers (CHEWs).Furthermore,a viable Mandatory National Health Insurance Scheme will beconsidered over the medium term period.Among the health sector targets to be achieved in the next five yearsinclude the reduction of under five years mortality rates from 120 to 33 per 1000; reducing maternal mortalityfrom 410 to 147 per 100,000 live births; increasing the proportion of birth deliveries by skilled personnel from 42per cent to 95 per cent; increasing the proportion of immunised children below one year from 71 per cent to 95per cent; reducing cases of TB from 888 to 444 per 100,000 persons; reducing the proportion of in-patientmalaria fatality to 3 per cent and reducing the HIV prevalence rate to less than 2 per cent. •Water The provision of clean water,sanitation and waste management is closely related to the status of humanhealth.However,the current water supply is poor,with only 57 per cent of households using water from sourcesconsidered safe.Available data also indicates that about 75 per cent of the country's urban population and 50per cent of the rural population currently have access to safe drinking water.To address this problem,a numberof programmes and projects will be implemented,including the rehabilitation and protection of forests in five water towers; water storage and harvesting programme through the construction of two large multi-purposedams with capacity to store 2.4 billion cubic meters as well as the development of sanitation and urban sewerageprogrammes. •Gender,Vulnerable Groups and Youth: Over the Medium Term Plan period,the government will continue tomainstream gender into all government policies,plans and budgets,with the aim of achieving gender equity in allaspects of society.Affirmative action will subsequently be implemented to ensure that women have at least 30per cent representation in recruitment,promotion and appointment at all levels.The Women Enterprise Fund willbe increased during the Plan period.Furthermore,an efficient legal system will be put in place to help protect therights of individuals and reduce gender based violence and other human rights violations on vulnerable groups.Currently,there are an estimated 2.4 million orphans in the country,including over 1.2 million orphaned due toHIV/AIDS.Measures will also be taken through the MTP to address the plight of these vulnerable groups includingthe Orphans and Vulnerable Children,Persons with Disabilities,the aged,and Internally Displaced Persons.Currently,the youth constitute 38 per cent of the population and this number is projected to increase from 11million to 16 million over the MTP period.Measures will therefore be taken to facilitate the training of young peoplein technical,vocational and entrepreneurial skills to equip them with relevant skills to participate fully inproductive activities.Youth polytechnics will also be revitalised and expanded in all districts.The Youth EnterpriseFund will be increased and in addition,youth will be employed in labour intensive road projects,tree plantingprogrammes and other productive activities. •Housing: The housing sector is characterised by the absence of adequate,affordable and decent housing,particularly for low-income earners in urban areas and equally so,in the rural sector.The country also faces theproblem of low level of urban home ownership (16 per cent) and extensive and inappropriate dwelling unitsincluding slums and squatter settlements.Out of a total of 150,000 housing units required annually in urban areas,only an estimated 35,000 are produced; i.e.only 23 per cent of the demand is met.The quality of housing alsovaries from one part of the country to another.It is estimated that only 20 per cent of the houses constructed caterfor low income households despite the fact that they constitute the majority of households in Kenya.To addressthis problem,plans are in place to build 200,000 housing units annually by 2012.In this regard,incentives will beprovided to the private sector to construct houses,and to individuals through establishment of a secondarymortgage finance corporation.The Capacity of local authorities to provide serviced land to produce low costhousing will be enhanced and they will be encouraged to construct low cost housing units through PPParrangements. •Physical Infrastructure: The development of high quality national physical Infrastructure is a critical foundationfor this MediumTerm Plan.The strategies and measurers to be pursued in the medium term period include thestrengthening of the institutional framework for infrastructure development; raising the efficiency and quality ofinfrastructure as well as increasing the pace of implementation of infrastructure projects so that they arecompleted within the specified time frames.A National Spatial Plan to optimise the development and utilisationof infrastructure facilities and services will therefore be developed.The operationalisation of the PPP policy willalso be expedited to facilitate private sector participation in infrastructure facilities and services strategicallycomplemented by public sector interventions.The five-year target is to have 64,500 km of well maintained andmotorable roads with a total of Kshs.186 billion spent on road construction and upgrade during the 2008-2012period.Over the same period,the government will concession many toll roads to be built by the private sector.A new transport corridor linking Lamu,Ethiopia,Southern Sudan and Somalia to a second port to be constructed atLamu will be developed and implemented through Build,Own,Operate and Transfer (BoT) arrangements at a costof USD 15-20 billion while a free port at Dungu Kundu in Mombasa will also be developed.The other majortransport infrastructure projects will be the development of a Rapid Bus and light rail system in the NairobiMetropolitan area,which is expected to serve as a prototype for the other main urban areas in the country. xi VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 •Energy: An Energy Access Scale-up Programme will be implemented through which a million households will beconnected with energy in the next five years at a cost of Kshs.84 billion.A major project to connect Kenya to theSouthern Africa power pool through Tanzania at a cost of USD 110 million will also be implemented in two years,while other projects in the power sector will include geothermal,solar and wind power. •Governance,Peace Building and Conflict Management: Thestrategy for improving governance and the rule oflaw will focus on rebuilding confidence among Kenyans,particularly in the light of the 2007 post-elections crisis.The aim is to ensure that the safety and security of Kenyans is guaranteed at all times; that Kenyans from all walksof life have equal access to justice and that disputes will be resolved through non-violent,amicable and legally-sanctioned mechanisms.To enhance security in urban areas,a national CCT/Camera Surveillance project will bepiloted in four major urban locations of Nairobi,Mombasa,Kisumu,and Nakuru.An additional 20,000 housingunits will be developed for Police Staff Housingwhile othermeasures will include the establishment andoperationalisation of a National Security Data Centre and the rolling out of the National Community PolicingInitiative to all parts of the country.Also,in order to improve on good governance and the rule of law,a new draftconstitution will be finalised and presented to the public through a national referendum in the early phase of theMTP.An Independent Truth,Justice and Reconciliation Commission (TJRC) will be operationalised in 2008/09while the Independent Electoral Review Committee (the Kreigler Committee) already established will present acomprehensive report in the 2008/09 fiscal year.To promote national cohesion a permanent Ethnic and Race Relations Commission of Kenya will commence operations in 2008/09.Additionally,national policy,legalframework and the justice system will be aligned with the needs of a market-based economy,with a strongnational human rights and gender equity commitments.The laws and regulation covering political parties and theregulatory framework covering the electoral process will also be amended in line with the Kenya Vision 2030 goalof promoting genuinely competitive and issue based politics. •Conclusion: The policy,legal and institutional reforms that are necessary to ensure the successful implementationof the MTP are elaborated in subsequent sections of this document.The Grand Coalition Government will thereforeensure that the requisite legislation and reforms are undertaken upfront so that the sector programmes,projectsand activities are implemented within the specified time lines and as highlighted in the strategy's ImplementationMatrix.The programmes and projects to be implemented under PPPs are also highlighted in each of the sectors'Implementation Matrices to be found in the final pages of this document. 1. Setting the Contents of Vision 2030 2. 1.0 Overview 3. The 4. Medium Term Plan (MTP) 2008-2012 5. is the first in a series of successive 5 year medium term plans which willimplement the 6. Kenya Vision 2030. 7. It will implement the Flagship Projects identified under 8. Vision 2030 9. as well as otherkey policies and programmes over the next five years.A large part of the financing and investment of the programmesand projects is expected to come from the private sector through the Public Private Partnerships (PPPs).The plan callsfor increased levels of savings and investment to facilitate the growth and development envisaged by 2012.The ratio ofinvestment to GDP is targeted to rise by 10 percentage points in the next five years while that of domestic savings to GDPis targeted to increase from the current 16 per cent to 26 per cent over the same time period.Other than high growth,the MTP places a premium on faster job creation,poverty reduction,improved incomedistribution and gender equity while also ensuring that balance is attained in development across all regions of thecountry.The policies and reforms contained herein aim at achieving faster and significant structural changes inKenya's economy in terms of increasing the share of manufacturing and industry in GDP and that of manufacturedexports in total exports.Additionally,the strategy identifies policy,legal,and institutional reforms that are required tobe implemented in each sector to facilitate the implementation of the programmes and projects over the next fiveyears.In this regard,the government will ensure that the requisite legislation is passed and necessary public sectorreforms effected expeditiously.In light of the current concerns about global warming and the need to ensuresustainable growth which safeguards the health of the environment,the government has taken on board these issueswith environmental sustainability being factored in as a cross cutting issue in all the MTP sectors. 10. 1.1Progress Achieved under the Economic Recovery Strategy (ERS) 11. The various reports and surveys published since publication of the Economic Recovery Strategy (ERS) for Employmentadn Wealth Creation,2003 - 2007 in 2003 including the Annual Economic Surveys; the Annual Progress Reports (APRs),the Annual Public Expenditure Reviews (PERs),the Mid-Term Reportof the ERS,the Annual APRM Report and the KenyaIntegrated Household Budget Survey (KIHBS) all attest to significant progress being made the ERS period.The economyrecovered from a low growth of 0.5 per cent in 2003 to 7 per cent in 2007.As a result of the strong growthperformance,real per-capita income have increased at an annual average rate of 3 per cent over the recent periodwhile poverty declined from 56.8 per cent in 2000 to 46 per cent in 2006.Following the Government policy of Universal Free Primary Education (UPE),an additional 2.1 million children havebeen enrolled in primary school,bringing total primary school enrolment to 8.2 million compared to 6.1 million in 2002.Success has been achieved in combating the HIV/AIDS with the prevalence rates declining from 13 per cent in 2001to 5.1 per cent in 2007.Significant progress has been achieved in public sector reforms resulting in Kenya winningthe United Nations Public Service Award in the category "Improving Transparency,Accountability and Responsivenessin the Public Service"in June 2007.The 2008 World Bank "Doing Business Report"records significant improvementin Kenya's overall ranking,making the country one of the top ten global reformers in terms of ease of doing business. The Remaining Challenges Despite the achievements made in reviving economic growth and meeting many of the ERS targets,the country is stillconfronted with major developmental challenges.These include the challenge of faster job creation that is requiredto address the high unemployment of labour and which is compounded by an increasing number of youths leavingschool and unable to find gainful employment; the large number of Kenyans still living in poverty; high inequality inincome distribution; inequity in gender; considerable disparities in development among the different regions of thecountry; low savings and investment rates; insecurity; persisting corruption and weak governance; poor infrastructure;slow progress in achieving structural changes in the economy,away from reliance on agriculture and export of primaryproducts. 1.3Short Term Measures to address Socio-Economic Recovery The events following the December 2007 general elections impacted negatively on the economy.In addition to loss oflives of many innocent Kenyans,they led to the dislocation of 350,000 people,destruction of property estimated atKshs.90 billion,and general disruption of social and economic life.In its first year this MTP will incorporate themeasures aimed at mitigating the effects of the post election problems and thereby facilitating faster economicrecovery.A mitigation and Settlement Committee has been set up by government to resettle and rehabilitate InternallyDisplaced Persons (IDPs).The Government will also take measures to enhance security,rebuild the affected economicand social infrastructure such as schools,health facilities,water supplies and sanitation facilities,bridges,culverts,railway lines and roads.There will also be measures to initiate and support activities that enhance the positiveengagement of the youth.These will include recruitment of 5,000 youth to the National Youth Service and employingthem in the reconstruction of damaged infrastructure and in other useful activities such as tree planting under the Treesfor Jobs Programme and other environmental projects.The youth will also be employed in expanded labour intensiveRoads construction projects including the Roads 2000 and CDF Roads Programme.To ensure quick recovery of the most adversely affected economic sectors,the Government will resettle farmers andfarm workers back to their farms,provide assistance in the form of seeds,fertiliser,land preparation and planting,and intensified extension Services.The government will also aggressively re-brand Kenya as a safe destination andenhance security on critical tour routes leading to game parks as well as strengthening the Tourist Police Force. Additionally,Kshs 10 billion will be allocated to assist the business community to re-build their premises and provideworking capital for un- insured businesses and to re-stock supplies and products. 1.4Equity and Wealth Creation opportunities for the Poor Social equity and equitable access to public services have been part of the nation's development agenda sinceindependence.However,concerns have been raised on the extent of disparities between the rich and poor andinequitable distribution of public resources between individuals,regions and along gender lines.There are also rural-urban inequalities,income disparities within the rural areas themselves and within major cities and towns.Moreover,an increasing number of urban residents live in informal settlements that lack the most basic amenities.Suchdisparities which include issues of quality have been a major cause of social tensions in the country as was evidentduring the 2007 post-election crisis.Inequality and poverty therefore remain among the key development challenges that the government continues toconfront and address.Whereas substantial attention has been placed on poverty alleviation,there exists a huge gapbetween the poor and non-poor in the entitlement to political,civil and human rights.There also exists large disparitiesin incomes and access to education,health and land,as well as to basic needs,including; clean water,adequate housing and sanitation.In addition,there exist other remarkable intra-regional,inter-regional,and gender disparities inpoverty and inequality levels.In 2006,the absolute poverty varied from a low of 11 per cent in Kajiado District,to ahigh of 94 per cent in Turkana district,and yet the two districts are in the same province.In the urban areas,the povertyprevalence was 30 per cent for male-headed households compared to 46.2 per cent for female-headed households.Further,the proportion of children who die in the first year of their lives in Nyanza province is twice that of Rift Valley.In 2004,HIV/AIDS prevalence in Kisumu and Mombasa was 18.4 and 12.3 per cent respectively,compared to 4.1 and5.0 per cent in Embu and Malindi respectively.Indeed,the scourge affects and impacts on men and women differentlywithin regions. Although various interventions have led to the reduction in poverty and improvement in equity particularly in ruralareas,the poverty and inequality levels prevailing in various regions of the country are still unacceptably high.Hence,more effort will be made under this MTP to reduce these levels even further.The key programmes aimed at reducing poverty and inequalities by 2012 are outlined in the subsequent chapters ofthis document and will be critical towards achieving a socially equitable and just society.The government willimplement policies and programmes that minimise the differences in income opportunities and access to socialservices across Kenya's geographical regions,paying special attention to the most disadvantaged communities in the Arid and Semi-Arid Districts,urban informal settlements and pockets of poverty in high potential areas.It will alsoincrease community empowerment through "devolved"public funds for both social and income programmes. Allocations to these funds will be in favour of the most disadvantaged communities and areas.Resource utilisationwill be in accordance with locally determined priorities identified in a transparent,participatory and accountableprocess.Accordingly,the realisation of the overall growth objectives projected in the macro-economic framework ofthe Medium Term Plan will act as a catalyst for poverty reduction and empowerment at community level.In the course of the first fiscal year of this Medium Term Plan,the issue of resettling the Internally Displaced Persons (IDPS)will be comprehensively addressed.The Government Finance Management Humanitarian Fund for the Mitigation of effectsand resettlement of victims of post 2007 election violence will therefore be fully operationalised.The government will alsofully implement the measures identified by the National Reconciliation and Emergency Social and Economic RecoveryStrategy Report (March 2008) prepared by the National Accord Implementation Committee to address needs of IDPs.In order to tackle poverty and inequality in the medium term period,the following key targets that are in line with thoseof industrialising countries need to be achieved:•Raising the average annual incomes per person from an estimated US$650 in 2006 to above US$992 by 2012;•Reducing poverty levels from the 46.9 per cent to 28 per cent by 2012;•Reducing rural and urban inequality from the current levels of 0.38 and 0.447 to 0.34 and 0.407 respectively by2012; and•Raising the level of Human Development Index for Kenya from about 0.532 in 2007 to between 0.6 and 0.7 by 2012. 1.5Programmes and projects for 2008 - 2012 To work towards the realisation of the above targets,the following flagship projects will be prioritised and implemented: Profiles of the Poor and their needs: This will map out the spread of the poor throughout the country and create profilesfor their pressing needs.Targeted programmes and projects will be formulated in light of the data profiles established. A Comprehensive Study and Analysis of Poverty Reduction Initiatives: A comprehensive study and analysis of thediverse poverty eradication initiatives in the country originating from the Government,NGOs,Private sector, development partners and faith-based organisations,will be undertaken to enable the government understand theireffectiveness.This will enable the government reformulate and update the National Poverty Reduction Strategyincluding using the poverty data to guide the allocation of resources to areas and regions with high poverty levels. Promotion of Pro-poor growth through targeted poverty programmes and projects: The government will promoteequitable growth that provides the poor with genuine opportunities to participate in decision making to shape theirfuture.The government will implement pro-poor growth strategies that take cognisance of the following key factors:(i) Rapid and sustainable growth as a fundamental factor for poverty reduction; (ii) Improve the capacities of the poorto participate in growth and take advantage of the opportunities that growth generates; and (iii) Provision of accessible,affordable and quality social services. An Integrated National Strategy for Good Governance and effectiveness of devolved funds: In order to enhancecommunity empowerment through devolved funds,the government aims at increasing the amount of devolved fundsby the percentage growth in annual revenue.This goal will be achieved by increasing the amount,efficiency andeffectiveness of devolved funds and increasing public participation and voice of the poorest members of localcommunities so that development issues of concern to such members can be channelled into public policy.AnIntegrated National Strategy will be developed to promote good governance and effectiveness of use of devolved funds. Social Programmes: The government will initiate programmes that target the poorest of the poor.This will take intoaccount local basis of livelihoods such as the unique needs of the poor in pastoralist communities. Gender and regional parity in access to education,health,and other social services: The government aims atraising the levels of income,education,individual health,longevity and access to basic needs of all Kenyans.Thiswill raise the Human Development Index for Kenya from about 0.532 in 2007 to between 0.6 and 0.7 by 2012.Thisachievement will reduce social inequalities the country faces today in access to wealth creating opportunities andpublic services across gender,regions and income groups.Revamping the national health infrastructure,targetingof preventive health care,reduction of child and maternal mortality ratios will all prolong the lives of those currentlyunder threat,thus presenting them with better opportunities.In addition,the Ministry of Health will completeongoing institutional reforms to delegate primary health care delivery to local health facilities with the fullparticipation of communities in decision-making.This will allow the Ministry to focus on policy issues.Overall,health expenditure will emphasise preventive and promotive care,which has the highest potential in lowering thenational disease burden. Wealth creation to reduce income disparities: The MTP is geared towards reducing inequality occasioned by lack of access and affordability of public services and to create income-earning opportunities across gender,social statusand regions.A key strategy to attaining this goal is to target more wealth creating opportunities for disadvantagedgroups and regions through increased infrastructure spending in the sub-sectors of roads,water,sewerage,communications,electricity targeting poor communities and regions; and availability of affordable and accessible creditand savings programmes.These measures will be aimed at creating an enabling environment for poor communities totake part in wealth creation. Welfare programmes: Education and health sectors will play a particularly unique role in the attainment of gender andregional parity.Achievement of a net enrolment ratio of 95 per cent in primary schools,and a transition rate of 90 percent into secondary schools,as well as integration of pre-schooling and primary education,will offer increasedopportunities for currently disadvantaged groups.A voucher system modelled along the Output Based Approach projectwill be developed for disadvantaged children who may not even make it to secondary school to be able to qualify fora bursary.Special welfare programmes will be provided to meet the needs of the most disadvantaged individuals andcommunities in the country in order to raise their overall welfare levels.A social protection fund to cushion vulnerablegroups will also be established. Information,Education and Communication (IEC) Strategy for the MTP2008-2012 To rally the nation behind the Vision 2030 and facilitate the implementation of the First Medium Term Plan,2008-2012,the government working with other partners and stakeholders will implement a comprehensive Information,Educationand Communication (IEC) strategy whose objective is to ensure that all Kenyans will be made familiar with the goalsof the Vision and that of its first Medium Term Plan.The Ministry of Education will ensure that the education curriculumfor Kenyan school children and students incorporate information relating to the key objectives and goals of the Kenya Vision 2030.The government through the Provincial Administration and the Ministry of Information and Communicationwill also launch a sustained campaign to ensure that Kenyans at all levels; from the grass roots and community levelsto urban centres,are all provided with information on the implementation and progress of Vision 2030,so that they canappreciate its role and support its successful implementation.Well-targeted capacity building programmes andtraining fora on Economic Policy and Development Journalism will be mounted for media practitioners to enableKenyan media practitioners report and critique the national Vision from a more informed standpoint.A national Vision2030 Day will be held once every year throughout the country to enable Kenyans report and reflect on what theirorganisation,community and districts have achieved towards the implementation of the Vision 2030 and its firstMedium Term Plan. 1.7Risks to the Implementation of the MTP 2008-2012 and MitigationMeasures The MTP which will implement the first five years of Kenya's long term development blueprint,Kenya Vision 2030 isbeing launched at a time when oil prices in the international market are rising to unprecedented high levels.Theincrease in oil prices has also resulted in an escalation in world food prices as food crops are increasingly being usedto produce fuel and bio-diesel.Among the measures to be implemented under this Plan are mitigating measures toaddress these risks and challenges.Some of the mitigating measures in the energy sector include expansion ofgeothermal energy projects,and expansion of initiatives to tap power from solar and wind energy sources.Theprogrammes and projects to boost agricultural output,including food crops and livestock products,through initiativesto reduce cost of fertiliser as well as expansion of land under irrigation for crops are meant to ensure adequate supplyof food and moderate food prices as well as the cost of living. 2. The Micro Economic Framework. Overview The Vision 2030 First Medium Term Plan elaborates on the government's five-year plan aimed at accelerating economic growth to 10 per cent by 2012.This chapter presents the medium term macroeconomic framework for the period 2008-2012 that is compatible with the Vision 2030 strategy and the coalition Government's development agenda1.It alsodescribes key structural reforms that the government will implement to bolster a broad-based economic growth that willaddress the social-economic challenges including increasing wealth and equality for all Kenyans. 2.1Situation Analysis of the Economic Performance under the ERS (2003-2007) In response to bold economic and structural reforms implemented by the government since 2003,the Kenyan economyrecorded a remarkable recovery over the period 2003-2007,as real Gross Domestic Product (GDP) grew steadily from2.9 per cent in 2003 to 7.0 per cent in 2007.This was in spite of the adverse effects of droughts and continuedincreases in the oil prices.On average,real GDP expanded by 5.3 per cent over the period 2003-2007,which compareswell with growth rates achieved by most reforming countries in sub-Saharan Africa.The broad-based economic growth was evident in all sectors of the economy.Agriculture grew at an average of 3.6per cent over the period 2003-2007 mainly in response to government initiatives to revitalise production in the coffee,dairy,livestock sectors.Prices were also favourable during this period leading to improved income and greaterincentives for farmers to expand production. 1.Following the post-December 2007 election unrest,the political players agreed on the National Accord and Reconciliation Bill,2008 that provides for a power-sharing arrangement in the form of a coalition government in Kenya 20032004200520062007 ActualERSActualERSActualERSActualERSProv.Real GDP (%)*2.92.35.13.75.75.16.16.57.0Inflation (%)9.83.811.63.510.33.514.53.69.891-day T-bill (%)3.44.02.93.08.45.06.85.06.8Fiscal deficit(% of GDP),FY to June-3.7-4.0-1.0-4.10.1-3.6-3.3-2.2-2.1Gross Domestic debt(% of GDP),FY to June26.829.225.328.323.427.623.225.623.6Current account (% of GDP)1.0-4.9-1.5-5.7-1.9-7.5-2.6-7.5-4.7Gross foreign reserves:In US$ million1,4681,6201,5172,0961,7662,5722,4152,5393,355Months of import cover3.34.02.75.02.66.02.55.03.3Employment creation ('000)466500483500449500469500475 2 THE MACROECONOMICFRAMEWORK Source: : ERS 2003-2007 and Economic Surveys (KNBS) Table 2.1: ERS 2003-2007 Targets and Actual Performance Industrial output also expanded by an average of 5.3 per cent over the period 2003-2007 buoyed by strengtheneddomestic and external demand,despite the strengthening of the Kenya shilling towards the end of the period.Domesticdemand was fuelled by rising incomes and strong domestic credit expansion,while external demand was supportedby favourable growth in regional trading partners' economies.The services sector expanded at an average rate of 5.3 per cent over the period 2003-2007 and rose to 5.9 per centin 2007.The continued expansion in this sector was largely driven by growth in the tourism sector,which registeredremarkable gains with increased tourist arrivals in response to improved security and marketing.The transport andcommunication sector has also expanded with improvements in port clearance and increased air freight as well ascontinued expansion of mobile telephony providers to outside Nairobi.The strong broad-based economic expansion noted above was supported by generally stable macroeconomicconditions.While the underlying rate of inflation was broadly within the 5.0 per cent target,the overall rate of inflationhas been volatile due to increases in food prices occasioned by dry spells,and the continued increase in world pricesof oil.Overall inflation averaged 11.1 per cent over the period 2003-2007.Reflecting the implementation of prudent fiscal and monetary policy,the 91-day Treasury bill rate declined from a rangeof 8.0 – 9.0 per cent in 2002 to around 6.0 – 7.0 per cent in 2007.Meanwhile,commercial banks lending ratesdeclined significantly from over 18.0 per cent in 2002 to average about 12 - 13 per cent in 2007.This was as a resultof increased competition in the financial sector following entry of new banks,and the favourable macro-economicconditions.Even though lending rates came down,the deposit rates remained unchanged leading to a narrowing ofthe spread between lending and deposit rates from 13.4 per cent in 2002 to 9.1 per cent in 2007.Government fiscal operations were generally satisfactory.The overall budget deficit (commitment basis,includinggrants) on fiscal year averaged about 2 per cent of GDP over the period 2003-2007 compared with a target of 3.2 percent of GDP in the ERS.The ratio of domestic debt to GDP declined from 26.8 per cent in 2002 to 23.6 per cent in June2007,while net domestic borrowing has largely been contained at about 1.8 per cent of GDP in 2006/07 down from3.6 per cent of GDP in 2002/03.This provided room for non-inflationary expansion of credit to the private sector tosupport production activities.The external balance of payments position has remained healthy reflecting in part the diversified sources of the foreignexchange.Over the ERS period,the current account deficit remained modest at an average of 2 per cent of GDP,largelyas a result of large inflows of remittances from Kenyans in the Diaspora ,and higher receipts from tourism.Capitalinflows,particularly of portfolio nature,were strong and there is also evidence that foreign direct investment picked upover the same period.As at the end of December 2007,gross official foreign exchange reserves held by the CentralBank of Kenya stood at USD 3,355 million up from USD 1,067 million at the end of December 2002.The exchange rate remained generally stable against the US dollar for a greater part of the ERS period,but withtendencies to appreciate in 2007.It exchanged at an average of KShs 75.7 against the US dollar in the period 2003-2006,before appreciating to about KShs 63.0 at the end of 2007.The strengthening of the shilling against the US dollarreflected a strong balance of payments position and the general weakening of the US dollar vis-à-vis other majorcurrencies in the international currency markets.Overall,the recent strong and broad-based economic output expansion and implementation of structural reforms havehad a positive impact on welfare.The growth in per capita income has rebounded strongly from a decline of 2.5 percent in 2002 to an increase of 4.1 per cent in 2007.In addition,the overall incidence of poverty declined from 56.8 percent in 2000 to 46 per cent in 2006,a remarkable reduction of about 20 per cent.Even more significant is the 32 percent reduction in urban poverty from 49.2 per cent in 2000 to 33.7 per cent in 2006,suggesting significantimprovements in living standards for the urban population. Despite the achievements made in revitalising economic activity,unemployment remains high,as the number of jobsgenerated has not been adequate to absorb the influx of labour entrants. 2.2Impact of External environment In the past decade,the world has witnessed rapid economic growth and expansion of trade driven primarily by emergingeconomies like China,India and Russia.This trend is expected to continue in the 2008 - 2012 period,although slowedby the rising oil prices and a possible recession in the United States of America.From a demand side,the growing worldeconomy and population offers an expanded potential market for Kenyan products beyond the traditional developedcountry markets.However,other global economic trends including the growth of out sourcing,environmental concernsand increased demand for raw materials are likely to impose greater competition for countries like Kenya.Hence,evenas Kenya attempts to exploit the opportunities availed by the growing world trade,over the medium term,measures willbe implemented to scale up productivity and quality control regimes to ensure that the country enhances itscompetitiveness.The Economic Partnership Agreement (EPA) between the East Africa Community (EAC) partner states and the EuropeanUnion (EU) will be critical determinants of Kenya's opportunities for export led development as well as the potential foradopting certain economic strategies.The Common Market for Eastern and Southern Africa (COMESA) and the EAC willcontinue to be important markets for Kenya's exports,especially for manufactured goods.The multilateral trading arrangements are under review under the auspices of the World Trade Organisation (WTO) inthe context of the Doha Round.The Doha Round benefits to Kenya will depend on the final design of the 'developmentpackage',and in particular,the need for full preferential tariff treatment; limitations of developed countries exclusionsof sensitive areas of interest to Kenya; and increased Aid-for-Trade to enable Kenya enhance its competitiveness andtake advantage of emerging export opportunities. 2.3Measures to mitigate effects of post-election crisis and growthprospects Given the foregoing external environment and following the post-election disturbances that have adversely affectedagriculture (due to delay in land preparation,displacement of farm workers and rising input cost),industry (due totransportation hitches and insecurity) and services (driven by a decline in tourism),it is expected that economic growthwill slow down to about 4.5 – 6 per cent in 2008.In addition,investor confidence has also been adversely affectedleading to delayed investment that had picked prior to the general elections in December 2007.To mitigate the negative effects of the post-election events,the Grand Coalition Government will re-allocate outlaystoward programmes associated with wealth and employment creation as well as investment programmes that wouldhave a higher level of social impact.In addition,the resettlement of Internally Displaced People (IDPs) following thepost-election skirmishes will be a high priority.This will assist in faster recovery of the agriculture sector andproduction of food crops and thus moderate inflationary pressures.These initial interventions are expected to last for the next twelve months to June 2009.The political stability resultingfrom the establishment of the Grand Coalition Government and restoration of investor confidence on the economy isexpected to contribute to the acceleration of economic growth over the medium term.Real GDP growth is expected toincrease to 8.0 - 8.7 per cent by the years 2009-2010,consistent with the growth path envisaged under Vision 2030 (seeTable 2.2).Agriculture,which contributes directly to over a quarter of GDP,will rebound and grow at a pace of about 6 percent following an expected improvement of farm prices and the implementation of policies to revitalise the agricultural sector and increase agricultural productivity as envisaged under Vision 2030 flagship projects.Manufacturing growth isexpected to rise from the modest rate of 5 per cent in 2008 to 10-12 per cent by 2012,to become the fastest growingsector.Construction is also expected to receive a boost from higher infrastructure spending and housing construction.Theservices sector is expected to benefit from a rebound in tourism as well as increased communication activities followingthe completion of the under sea fibre optic cable and completion of the fibre optic network across major towns in thecountry.This will also contribute to faster growth in BPOs and ICT-related industries. The government will continue to pursue macroeconomic policies that promote economic stability with acceleratedeconomic growth,employment generation and wealth creation.In the medium term,the Central Bank of Kenya (CBK)will continue to pursue a monetary program that will deliver low inflation.Despite the expected strong growth in exports of goods and non-factor services,the external current account deficit isprojected to widen gradually to 6.7 per cent of GDP by 2009,reflecting the strong increase in imports associated withincreased foreign direct investment and higher disbursement of long term capital for investment spending.However,netcapital inflows are expected to more than offset the deficit in the current account thereby facilitating an overall balance ofpayments surplus.This should in turn help the government further build up adequate foreign reserves to the equivalent of4.7 months of import cover by 2012 as a way to cushion the economy from external vulnerabilities including high oil pricesand drought effects.This will be equivalent to 6 months import cover using the previous years import bill.Pursuance of a prudent fiscal policy will be one of the government's strategies over the medium term period.TheMedium Term Expenditure Term Framework (MTEF) process will be strengthened to accommodate public spending oninterventions to deal with post-election challenges and the critical flagship projects identified under Vision 2030 andthe coalition manifesto.The overall fiscal balance (after grants) is projected to decline from about 6.2 per cent of GDPin 2007/08 to a sustainable level of about 3-4 per cent of GDP over the medium term.This will allow domestic debt tostabilise within the range of 21-22 per cent of GDP over the medium term.Underpinning the fiscal programme aremeasures to sustain the revenue to GDP ratio at 20-22 per cent throughout the medium-term,mainly from increasedefficiency in revenue collection with reforms and modernisation efforts at the Kenya Revenue Authority (KRA).Publicexpenditure will continue to be restructured to provide fiscal space for priority interventions.The Public FinancialManagement (PFM) Reform Program being implemented by the government with the assistance of developmentpartners will be implemented expeditiously to strengthen macro economic stability and improve public sectorperformance and service delivery.Prudent management of public sector finances will lead to a positive shift in investorand creditor confidence as well as boost growth by providing the fiscal resources to raise public development spendingfrom 4.6 per cent of GDP in 2006/07 to 9.5 per cent of GDP by 2012.To meet the growth target of 10 per cent,the level of investments is projected to expand by 9.7 percentage points of GDP,raising the level of investments as a ratio of GDP from an estimated 22.9 per cent of GDP in 2007/08 to 32.6 per cent by2012/13.Out of the 9.7 per percentage points of GDP increase in overall investment level in the medium-term,3.9 perpercentage points will come from the public sector in the form of infrastructure developments (roads,transport,energy,ICT,science,technology and innovation and water and sanitation),while the balance of 5.8 per cent is expected to be financedby the private sector (including foreign direct investments).These levels of investment will require a continuous increase inthe level of national savings to sustain economic growth.In this regard,financial sector reform measures will beimplemented and more savings products developed to support the requisite national savings . The government will put in External Financing Total donor support is expected to rise steadily from 3.9 per cent in 2007/08 to about 4.6 per cent of GDP by 2012/13,as the Government improves the absorption capacity of these funds.It is also expected that donor support will increasesignificantly under the recently launched Kenya Joint Assistance Strategy (KJAS) signed by the Government anddevelopment partners and following the formation of the Grand Coalition Government.A significant amount of externalfinancing is also expected to come from the private sector and commercial financing,as improved sovereign creditrating and introduction of a benchmark bond entices international private investors into the economy. Source: Ministry of Finance Estimates Table 2.4:External Financing Requirement and resources,2007/08 – 2012/13 (US$ Million) It is expected that additional resources (to those included in Table 2.4) will become available with the implementationof the wide range of reforms and improved governance.These will be used to scale-up programs in the priority sectors,including MDG related interventions and Vision 2030 flagship projects. 2.5Structural Reforms Increasing total factor productivity (TFP),especially in the agriculture sector,is critical to achieving the potential growthtargets.The government will therefore continue undertaking structural reforms in various fronts with the aim ofimproving the efficiency in the allocation and utilisation of resources as well as effective public sector service delivery.Priority areas will include creating fiscal space to finance priority programmes; addressing the root causes of weak competitiveness by reducing transport and distribution costs through better infrastructure; providing reliable andaffordable energy; and addressing corruption and simplifying business procedures.Other reforms initiated under ERScovering governance,public expenditure and financial management,procurement,privatisation,business regulatoryand trade will be deepened.In the area of governance reforms will focus on prevention; investigation and recovery of corruptly acquired assets;strengthening the prosecutorial capacity; enhancing transparency and accountability under a coordinated strategy torevitalise Public Financial Management (PFM),including the management of devolved funds such as the ConstituencyDevelopment Fund,Local Government Transfer Fund and the Road Maintenance Levy; enhancing the effectiveness of the Public Procurement Authority (PPOA); enhancing the effectiveness of the Privatisation Commission to oversee theimplementation of the Privatisation Strategy that is aimed at promoting accountability and efficiency while also openingopportunities for private sector investment and new technology in public enterprises in addition to implementing acomprehensive financial sector reform strategy. 2.6Medium Term Employment Projections With an average employment growth projections of 8.2 per cent,total job generation for 2008-2012 is expected toreach 3.7 million in 2012 from about 1.8 million in 2004 or an average of 740,000 new jobs each year (Table 2.5).In2007,the informal sector created 426,900 new jobs compared to 420,400 in 2006.This constitued about 90 per centof all new jobs created outside small scale agricultural sector and pastoralists activities.It is expected that most of the job creation will be transformed into formal or semi-formal employment with strategies to formalise the wholesale andretail sector and revitalise agriculture. Source: Economic Surveys and KTM Model Table 2.5:: Employment Projections,2008 - 2012 2. FOUNDATION FOR NATIONAL TRANSFORMATION Overview The successful implementation of Kenya Vision 2030 and especially this First Medium Term Plan will be anchored ona number of cross-cutting factors and themes that are in themselves the foundation of Kenya's envisaged nationaltransformation.These factors,also called enablers,include the central role to be played by an improved and expandednational physical infrastructure including,the roads and railways network; water and airports; InformationCommunication and Technology (ICTs),as well as the overarching role of Science,Technology and Innovation (STI).Other cross-cutting themes include envisaged reforms in the management and utilisation of land; reforms targetingthe entire public sector as well as the overall national human resource development undertaken under the auspices ofthe labour sector.In the wake of the 2007 post-election crisis,there will be deliberately targeted MTP measures toaddress issues of security,peace building and conflict resolution.This chapter considers each of these foundationalfactors and themes,beginning with the medium term plans for the infrastructure sector. 3.1Infrastructure "Deploying World Class Infrastructure Facilities and Services". Infrastructure is an important enabler for sustained economic growth.Accordingly,the MTP 2008-2012 seeks toaccelerate and consolidate gains made in the ERS on infrastructure development,focusing on quality,aesthetics andfunctionality of the infrastructure services.The MTP targets increased investments in the road network,water andsanitation services,rail,sea and air transport and energy supply services.Effective and reliable infrastructure is criticalin lowering the cost of doing business and increasing competitiveness of the country.Consequently,under the MTP,measures to reduce the impact of infrastructure and cost of doing business will be implemented. A major concern will be to enhance the level of ICT utilisation in development and management of the country'sinfrastructural base.In deploying world-class infrastructure facilities,measures will be taken to conserve theenvironment as a national asset.Further,citizens will be encouraged to cultivate a social attitude of respect and carefor infrastructure facilities and services. 3.1.1Situation Analysis On average,the physical infrastructure sector accounts for 2.6 per cent of the GDP and 13.4 per cent per cent of totalgovernment expenditure.In line with the ERS objective of expanding and rehabilitating the infrastructure,annualexpenditure within this sector increased from Kshs.24 billion in 2002/03,to Kshs.78.8 billion in 2007/08.The totalsectoral expenditure increased both as a per percentage of total ministerial expenditures and GDP from 11.8 per centand 2.2 per cent in 2002/03,to 15.2 per cent and 3 per cent in 2005/06 respectively.Recurrent expenditure within this sector accounts for about 55 per cent of the entire sector's expenditure.However,this has been on the decline while that of development has been on the increase.For example,recurrent expendituredeclined from 57 per cent in 2004/05 to 47 per cent in 2005/06,while development expenditure rose from 45 per centto 53 per cent during the same period.This expenditure pattern is in line with government policy of shifting budgetary resources from recurrent to development.The following is a brief analysis of the situation in each of the five mainInfrastructure sectors. Transport: In order to address challenges faced in the transport sub-sector,recommendations for a National IntegratedTransport Policy (NITP) were made in 2004.This covered diverse issues like transport infrastructure planning,development and management,legal,institutional and regulatory frameworks,safety and security,funding,gendermainstreaming,utilisation of Information and Communication Technologies (ICTs),as well as environmentalconsiderations.The aim of all this was to create an enabling framework to nurture the development of a safe,efficientand affordable transport system,whilst maintaining the leading edge of technological advancement in a rapidlychanging and globalised environment. Roads: During the 2003-2007 period,reforms were implemented to enhance efficiency.In October 2006,Parliamentapproved Sessional Paper No.5 of 2006 on the Management of the Roads sub-sector for Sustainable EconomicGrowth.Subsequently,in 2007,Parliament enacted the Kenya Roads Act 2007,which provided for the creation of threenew agencies to be responsible for the development and maintenance of the road network namely:Kenya NationalHighways Authority (KeNHA) - the implementing agency to manage and maintain all road works on class A,B,C as wellas other rural paved roads; Kenya Rural Roads Authority (KeRRA) - responsible for all rural and small town roads,classD and below including special purpose roads and unclassified roads (currently under county councils and towncouncils),also responsible for Forest Department Roads and County Council Game Reserve Roads and Kenya UrbanRoads Authority (KURA) - to manage and maintain all road works on urban roads in cities and major municipalities. Rail Transport: The performance of the Kenya Railway Corporation (KRC) has declined over the years due toinadequate locomotive power and rolling stock capacity constraints caused by inadequate funding.In addition,therehave been significant governance challenges.In an effort to revamp the corporation and contribute to economicgrowth,the Government concessioned the KRC to the Rift Valley Railways (RVR) on 1st November 2006.However,therestill remains significant challenges in the performance of the RVR which will be given top priority. Maritime and Inland Waterways Transport: Modernisation and computerisation of Mombasa port facilities is ongoing and this has enabled the port to register improved operational performance over the years,with traffic handledincreasing from 11.9 million metric tons in 2003 to 16.0 million metric tons in 2007.However,this turnaround remainsbelow the performance needed to effectively contribute to national development.In addition,utilisation of inlandwaterways remains a significant challenge. Air Transport: Expansion of facilities at Jomo Kenyatta International Airport (JKIA),to include a new state- of- the- artterminal is currently underway.Moi International Airport and forty airstrips have already been rehabilitated as part ofthe effort to improve air services.Wajir airport has been expanded and converted to a military and civilian airport.Isiolo Airstrip has also been fenced-off and land for expansion identified.The Kenya Civil Aviation Authority (KCAA) hasundertaken a programme to upgrade equipment and internal structures to enhance air safety. Meteorological Services: The demand for improved meteorological services for various purposes related to transport,the environment and economy have increased significantly.For instance,installation of Very Small Aperture Terminals(VSAT) for data reception and transmission has already been connected to all airports.In addition,the automation ofweather facilities at the JKIA Airport has been undertaken as part of the programme to improve and modernise weatherobservation,data exchange,analysis and forecasting as well as dissemination systems.General Packet Radio Services(GPRS) have also been acquired and installed in meteorological outstations.Further,Public Weather Display (PWD)boards have been installed to display weather information to the public,while construction of district observatoryoffices at Wajir,Mandera,Nakuru and Kericho has been completed. Energy: Commercial energy is dominated by petroleum and electricity,while wood fuel provides energy needs for domestic use,especially in rural communities and the urban poor.At the national level,wood fuel and other biomassaccounts for about 68 per cent of the total primary energy consumption,followed by petroleum at 22 per cent,electricity at 9 per cent and others sources of fuel (including coal) standing at less than 1 per cent.Solar energy isalso extensively used for drying and to some extent,for heating and lighting.However,its consumption in Kenya isextremely low standing at 121 kilowatt hours (KWh) per capita (compared to 503khw in Vietnam or 4,595khw for South Africa).The national access rate stands at approximately 15 per cent,while the access rate in the rural areas isestimated at 4 per cent.Overall,the utilisation of coal fuel has remained low in Kenya,despite international priceshaving been reasonable and fairly stable over the years relative to petroleum.The Government has continued to finance the extension of electricity supply in rural areas as part of the basicinfrastructure to stimulate economic growth and employment creation.In this regard,the Rural Electrification Authority(REA) came into operation in July 2007 to fast-track the Rural Electrification Programme (REP).Current policy providesfor the extension of electricity to market centres,public secondary schools,youth polytechnics,health centres,andwater systems,among other community projects.This is intended to increase the access to electricity which in ruralareas currently stands at 4 per cent but is projected to increase to 12 per cent by the year 2012.Moreover,Ethiopiaand Kenya have undertaken a feasibility study to facilitate the transfer of electricity to Kenya from a number of largeEthiopian hydropower projects that provide power at lower costs compared to local ones.Feasibility studies on two regional inter-connectors – Nairobi-Arusha and Jinja-Lessos are complete,while theEthiopia-Kenya inter-connector is currently ongoing.Feasibility studies on three wind turbines are complete,as are twopre-feasibility studies:one on co-generation and the other on solar water heaters respectively.Seven other studieswere completed:two studies on the penetration of energy-saving cook stoves in Kenya; one each on power marketdesign and pre-privatisation; geothermal development company,and unbundling of KPLC; Geothermal reservoiroptimisation and SCADA/EMS system study.With regard to policy,Sessional Paper No.4 of 2004 on Energy Policy was put in place and a new sector legalframework; the Energy Act,2006,enacted to operationalise the policy framework.Further,the Energy RegulatoryCommission was established as a single sector regulator for the energy sector and an Energy Tribunal set up toarbitrate disputes in the sector.A Rural Electrification Policy was also developed to enhance the implementation of theRural Electrification Programme. Buildings and other Public Works: Since the implementation of the ERS,the sub-sector has been able to implementseveral projects despite the large portfolio of stalled projects that were an economic liability to the government.However,there has been increased demand for facilities to cater for both office and housing needs besides ensuringthat facilities are well maintained,rehabilitated and refurbished.Over the last five years,140 stalled projects werecompleted (buildings and related works) out of a portfolio of over 200 projects.Thirty projects have been revived andare ongoing while a further 9 projects have been tendered out of which 4 have already been awarded and works areexpected to start.The damage resulting from the 2007 post-elections crisis affected both public facilities as well as private property.Themain public facilities affected included government buildings,vehicles and equipment and sections of roads andrailway lines.In particular,the destruction of the railway line and blocking of roads affected transport to western Kenyaand countries within the Great Lakes region.Moreover,the energy sub-sector experienced great losses due to the theftand destruction of transformers and other expensive equipment.Further,there were delays in ongoing roadconstruction works occasioned by the displacement of workers due to insecurity in the affected areas. Emerging Issues and Challenges The infrastructure sector is characterised by a number of challenges that revolve around poor,inadequate and poorlyintegrated infrastructure; inadequate funding levels; out dated technology; and insufficient technical skills andpersonnel.This has been manifested by long infrastructure programme rollout lead times and development periods. A further and critical concern is the lack of a coherent unifying policy,legal and institutional framework to addressthese concerns. Roads: This sector faced a number of challenges including:inadequate road maintenance equipment; pavementoverloading by heavy goods vehicles; a huge maintenance backlog of the road network; low contracting andsupervision capacity; congestion within cities/towns and overloading on Kenyan roads; encroachment on roadreserves,and inadequate research on alternative low cost materials for construction of roads. Energy: Challenges faced by the sector include:over reliance on hydro-power; long lead times in the development ofenergy infrastructure; inadequate specialised skills and tools required for planning and forecasting energy needs; thehigh cost of rural electrification through grid extension due to the scattered nature of settlements; frequent poweroutages and high system losses,and high and ever rising prices of imported fossil fuels. Transport: The challenges faced in this sector include:the over-reliance on one transport corridor; traffic congestionand the accompanying environmental pollution from transport sources; poor traffic management and enforcement oftraffic laws; old,dilapidated equipment used for meteorological services; a shortage of technical staff in all aspects oftransport operations; the low investment in transport infrastructure; an inappropriate institutional framework;inadequate security services at ports and airports,and an out-dated legislation structure. 3.1.3Programmes and Projects for 2008 – 2012 The goals for the Infrastructure sector will be to lay a sustainable foundation for achieving the objectives of Vision 2030 .They include the following:•Acceleration of ongoing infrastructure development,focusing on quality,aesthetics and functionality of theinfrastructure services developed;•Building infrastructure to support identified flagship projects to ensure its contribution to the economic growth andsocial equity goals;•Improving efficiency and effectiveness of the infrastructure development process at all levels including planning,contracting,and construction;•Providing a utility sector (water,sewerage and electricity) that is modern,customer-oriented and technologically-enabled to provide efficient,cost-effective,quality services to all citizens;•Creating inter-connected,technologically-advanced information and communication systems driving innovation,growth and social progress;•Protecting the environment as a national asset and conserve it for the benefit of future generations and the widerinternational community; and•Cultivating a social attitude of respect and care for public infrastructure facilities and services amongst all citizens.With regard to the goals for the Infrastructure sector under the MTP,and taking into account the challenges experiencedup to the end of 2007,the following strategies will be pursued:•Strengthening the institutional framework for infrastructure development and accelerating the speed of itscompletion; Raising efficiency and quality of infrastructure projects,and increasing the pace of implementation ofinfrastructure projects so that they are completed in specified time frames;•Enhancing local content (materials and services) of identified infrastructure projects i.e.minimising import content;•Developing and maintaining an integrated,safe and efficient transport network;•Supporting the development of infrastructure initiatives around flagship projects;•Benchmarking infrastructure facilities and services provision with globally acceptable performance standardstargeting enhanced customer satisfaction;•Integrating information and communication technologies in the processes of infrastructure services provision;•Implementing infrastructure projects that will stimulate demand in hitherto neglected areas targeting increasedconnectivity and reduced transport and other infrastructure costs;•Developing a national spatial plan to optimise the development and utilisation of infrastructure facilities and services;•Modernising and expanding sea port facilities;•Identifying,developing and retaining the requisite human resources to support the infrastructure facilities andservices; and•Enhancing private sector participation in the provision of infrastructure facilities and services strategicallycomplemented by public sector interventions.The following programmes and projects will be undertaken during the period 2008-2012: The First National Spatial Plan: The need for a National Spatial Plan is recommended under agriculture,manufacturing,urbanisation,and environmental management,which are priority sectors under Vision 2030 .In 2008,work will commenceon the preparation of the First National Spatial Plan for Kenya to guide physical development activities over the next 50years.In addition,it will provide a spatial illustration of all national projects,identify a strategy for land development andaddress issues such as settlement,environment,transport and economic development.This will form a critical basis forappropriate deployment of infrastructure in support of Vision 2030 objectives. National Integrated Transport Master Plan: This project is to be completed within two years of initiation and will belinked to the National Spatial Plan.It will aim at ensuring that investment and location of transport infrastructure andservices are consistent with public policies while ensuring optimal transport infrastructure investment to positionKenya as the most efficient and effective transport hub of the East and Central African region.It will also facilitateimprovement and expansion of transport infrastructure in a manner that will reduce transport costs and also open newfrontiers for economic development.The policy will provide the Government and the private sector with a systematicdecision-making tool for investment in transport infrastructure over the next 50 years.In addition,this programme willhave as its mandate,an integral component of institutional capacity- building to manage roads,ports and air,sea andland transport systems with a view to improving efficiency and effectiveness of service delivery and enhancingrevenue- earning capabilities. Development of a new transport corridor to Southern Sudan and Ethiopia: The project involves the developmentof a new transport corridor from the new port at Lamu through Garissa,Isiolo,Mararal,Lodwar,and Lokichoggio tobranch at Isiolo to Ethiopia and Southern Sudan.This will comprise of a new road network,a railway line,oil refineryat Lamu,oil pipeline,Lamu Airport and free port at Lamu (Manda Bay) in addition to resort cities at the coast and inIsiolo.It will form the backbone for opening up Northern Kenya and integrating it into the national economy. National Road Safety Programme: The objective of this programme is to fast-track implementation of the National RoadSafety Action Plan to achieve the targets of reducing the incidence of road crashes and their impact on the Kenyan economy.This will be implemented through the development and implementation of a driving school curriculum for both drivers andinstructors on basis of best practices and models in other parts of the world amongst others.Further,the Motor VehicleInspection Unit will be privatised to ensure improved maintenance status of Kenya's motor vehicle fleet.To support effectiveenforcement of traffic regulations,a system of instant fines and ticketing for traffic offences will be introduced. Computerised Information Maintenance Management Systems: This programme entails developing threeintegrated computerised systems to manage Kenyan roads,bridges and pavements.The Road MaintenanceManagement System will therefore be used to monitor the condition of roads,and manage road maintenance works.On its part,the Bridge Maintenance Management System will be used to monitor the condition of bridges on the mainroads network and manage maintenance works on those bridges.The Pavement Maintenance Management Systemwill be used for the short and long-term planning of road resurfacing and rehabilitation works. Maintenance of existing road network and airstrips in the country: This strategy will lead to the construction of1,327 km of roads through periodic maintenance (9 billion); reconstruction and rehabilitation of 1,364 km of failedroads sections at a cost of Kshs 55 billion and the resuscitation of 40 sealing camps and resealing units at Kshs2 billion.In addition,a road maintenance manual will be developed.The upgrading of 12 existing weighbridgesand the establishment of 15 mobile weighbridges and 4 weigh – in - motion (WIM) will cost approximately Kshs.6billion.In addition,the management of road axle load controls will be prioritised as well as the routine maintenanceof airstrips. Use of machinery and labour intensive techniques to promote employment and income earning :The Roads2000 Strategy is set for expansion,from the current 37 districts to over 111 districts during the MTP period.theimplementation of this Strategy will lead to the development of 1,960 km of roads and the training of 3,000 people toundertake the work of road construction. Road Network Expansion: The aim is to construct 1,950 km of new roads by 2012 by developing and effectivelymanaging a robust road system that will require minimum maintenance.This strategy will involve carrying out 20feasibility and design studies; provision of 1,950 km of roads to all major production,marketing and consumptionareas; provision of legal framework to repossess illegally acquired land on road reserves,and the expansion of 1,103km of road width to provide for non-motorised-transport (NMT).Under the road transport policy,road concessioning will be introduced on Nairobi bypasses and major roads,includingsections of the Northern Corridor route (Mombasa-Nairobi-Nakuru-Mau Summit-Eldoret-Malaba and Mau Summit-Kisumu-Busia); Machakos turnoff-Nairobi-Rironi (and including the Uhuru Highway); Waiyaki Way; and Westlands toRironi sections.It is expected that at least 3 concessions will be accomplished by 2012. Nairobi Metropolitan Region Bus Rapid Transit System: The Government has laid down plans for the developmentof a rapid bus transport system,starting with the following three transport corridors:First is the Athi River Town toKikuyu Town (approximately 38 km); Second is Thika Town to the Central Business District (approximately 50 km); andthird is Jomo Kenyatta International Airport to the Central Business District (approximately 25 km). Development of light rail for Nairobi and its suburbs: The area expected to be served by the light rail stretches fromNairobi Railway Station,situated in the Central Business District,to Embakasi/Jomo Kenyatta International Airport,adistance of 15.6 kilometres and serving about 150,000 daily passengers - about 5 per cent of daily passengers inNairobi Metropolis. Dredging of Mombasa port: Dredging of the port will be done with the purpose of deepening the channel to 14.5metres to enable larger post-Panamax vessels to access the port and thereby remove the risk of the port slowlyevolving into a feeder facility which larger vessels have no access. Ferry Services Programme: This will involve revamping water transport on Lake Victoria,replacing the old vessels inMombasa,and establishing cruise ships and floating hotels network on the Indian Ocean and Lake Victoria to promotetourist activities. Development of landing sites for smaller boats and canoes: This project will be undertaken on the shorelines ofLake Victoria.Role of private sector will be enhanced as many of the boats and canoes are privately operated.Other interventions on Maritime and Inland waterways include:•Developing other minor satellite ports (Funzi,Vanga,Shimoni,Kilifi,Malindi,Lamu,Kiunga and Mtwapa) throughstrategic partnership approaches which tap the potential of the private sector in port development andmanagement;•Establishing a Coast Guard to link up with other international community coast guards to enhance the creation of asafe and secure maritime industry;•Revitalise the inland waterways port infrastructure in the lake region,with Kisumu as a regional inland waterwayshub to link with other regional ports such as Bukoba,Jinja,Mwanza and Port Bell. Rail Transport Programme :A total of USD 390 million will be spent towards additional capital expenditures over the25 years of the project with the concessionaire investing at least USD 5 Million per year for the first five years.Inaddition,the following will be undertaken on rail transport:The construction of 17.2 km railway by-pass andimplementation of the Relocation Action Plan (RAP) in Kibera and Mukuru areas,creating a 5.2 metre safe zone. Modernisation of airstrips and airports: This will involve the rehabilitation,expansion and maintenance of airstripsand airports serving tourist and commercial sites in the country such as in Kisumu,the Coast,Isiolo,Lokichoggio,and Maasai Mara. Air Facilities Modernisation: This will be facilitated in order to increase the efficiency of air transport to meet thestandards of FAA and ICAO.In addition,the following will be put in place:Radar/Flight Data Processing Systems;Primary and Secondary Surveillance (MSSR) Radars; Voice Communication Systems; VHF Communication Systems;Surface Movement Control Radars; and a Flight Data Recorder Laboratory including an Investigations Workshop anda Hangar.The mentioned projects will improve aviation safety and security while enhancing the air passenger andcargo handling capacity.Other key interventions in air transport will include:•Modernising and expanding Jomo Kenyatta International Airport and Moi International Airport;•Building an international airport in Kisumu to serve as the aviation hub for the Great Lakes region;•Upgrading airstrips at provincial capitals and sub-provincial towns to national airports and institute propermaintenance of all other airstrips and aerodromes;•Liberalizing the air transport sub-sector to attract public-private ventures;•Enhancing the capacity of regulatory authorities and eliminating the possibility of conflict by separating regulatoryfunctions from service providers like air navigation services and airports. Meteorological Systems Modernisation Programme: The objective of this programme is to improve Kenya's disasterpreparedness and mitigation as well as to promote public education and awareness among vulnerable communitiesand decision makers.The programme will involve three components namely:tsunami early warning systems; tidalgauge station,marine automatic weather systems and seismic systems; and the introduction of dynamic modellingcapabilities for prediction of weather and climate. Weather Modification Programme: This is an integrated programme with six components,including theestablishment of cloud chamber laboratory for rainfall enhancement; hailstone suppression snow pack augmentationon Mt.Kenya to enhance air quality measurement; improved flash-flood forecasting using Doppler weathersurveillance technology; and improved research to suppress fog and frost on the high-ground areas of Kenya. Rural Electrification Programme: A Rural Electrification Programme financed to a tune of Kshs.2.7 billion to cover various parts of the country.Upon completion,the project will facilitate connection of power to 460 trading centres and110 secondary schools,among other public facilities.Furthermore,the Government intends to spend Kshs.180 millionto provide solar electricity generators to 74 public institutions including boarding primary and secondary schools,health centres and dispensaries. Energy Access Scale-up Programme: Through this programme,one million households will be connected withelectricity over the next five years at an estimated cost of Kshs.84 billion.The programme will target connecting allmajor trading centres,secondary and primary schools,community water supply works and health centres in thecountry.The Government will also partner with the Government of Uganda and Tamoil East Africa Limited in a jointventure company for the extension of 352km oil pipeline from Eldoret to Kampala.In addition to this will be the construction of a 6,000 ton common user LPG import handling facility in Mombasa.Theconstruction of a 2,000 ton common user LPG handling facility in Nairobi will greatly increase storage space,thusincreasing supply sources.This will eventually result in competitively priced LPG fuel.Public – private partnerships arealso expected to increase parcel sizes imported thereby reducing freight costs and making LPG cheaper to Kenyans.Following the completion of appraisal drilling in Mui Basin of Kitui and Mwingi district,Kenya will have access to localcoal as an energy source.Initial exploration activities indicate the existence of coal in this area.Consequently,anappraisal drilling project to ascertain the commercial quality and viability of the deposits is in progress. Olkaria IV appraisal drilling of 6 wells: This is expected to produce 70 mw of electricity.The project is expected toprove that commercially exploitable steam is available in the field. Wind Power Generation by IPPs at various sites: It is envisaged that wind power will provide total power installedof about 150mw.Power will also be obtained in the process of producing sugar.It is envisaged that the potentialof about 120 MW will be exploited using sugar factories as a base.This will be done through Public PrivatePartnerships (PPP). The Energy Sector Recovery Project (ESRP): This project funded by the World Bank and some bilateral donors,has amajor component on "Distribution Reinforcement and Upgrade"to be implemented over a period of four years.This willimprove the quality and reliability of supply,reduce system losses and increase access to electricity service especially inurban and peri-urban areas.This is of special interest to the industrial sector where power fluctuations and cuts havefrequently led to losses.Further,the Kenyan and Tanzanian Governments have obtained funding to implement a 330kVtransmission line project between Arusha and Nairobi.This will provide an additional source of power. National Electricity Supply Master Plan: The initiatives described above with respect to enhancing national powergeneration and supply will be incorporated in a National Electricity Supply Master Plan.The Plan will identify newgeneration and supply sources to ensure that the national electricity supply dependable energy is tripled in the nextten years from the current 1,050 MW to 3,000 MW by 2018.This is necessary to meet the power needs of anexpanding economy and the Vision 2030 Flagship projects which will be implemented in the key economic sectors.Inlight of the increase in international oil prices,emphasis will also be placed on the development of alternative powersources – especially geothermal,solar and wind power.Given that power projects take time to construct,the NationalElectricity Master Plan will identify the power projects to be initiated in the initial years of this MTP 2008-2012 toensure adequate supply of energy to meet the increase in demand over the MTP period. Public Facilities Improvement Programme: This programme will target the aesthetic improvement and functionalityof all public facilities and buildings.Consequently,the maintenance and management of public facilities will beenhanced through comprehensive facility management approaches.The programme will be supported by reliableComputerised Facilities Management Information Systems.In addition,during the Plan period,the sector will developa policy geared towards the development of the construction industry.This will be done by establishing a Contractors Registration Board which will regulate,train,register and deregister non-performing contractors.A NationalConstruction Company will also be established to enhance the capacity of small and medium enterprises.Theestablishment of a Construction Industry Development Board will be set up to review the standards of Design andConstruction as well as the utilisation of a Facilities Management System for existing public facilities. 3.1.4Policy,Legal and Institutional Reforms National Integrated Transport Policy: A draft National Integrated Transport Policy (NITP) has been prepared and iscurrently awaiting parliamentary approval.A Sessional Paper on transport sector development will also be preparedand presented to Parliament for legislative enactment.The adoption of the Sessional Paper by Parliament during thePlan period will subsequently lead to implementing recommendations of the NITP,including institutional reforms to beundertaken within the transport sector. Legal Framework to support Private Public Partnerships in the infrastructure sector: The legal framework governing the various transport modes will be reviewed to allow for more private sector participation in developing theinfrastructure of the transport sector. Construction Industry Development Policy: The performance of the construction industry directly affects thedevelopment and management of infrastructure facilities and services.Hence,a Comprehensive Construction IndustryDevelopment Policy will be formulated within 12 months.Thereafter,it will be consistently implemented through aConstruction Industry Development Board.One of its objectives will be to strengthen the capacity of Kenya'sconstruction industry. Roads investment policy: A new road sector policy was ratified by Parliament in 2006.This was followed by an enactmentof the Kenya Roads Act 2007.During the Plan period,the following will be undertaken:full implementation of the SessionalPaper No.5 of 2006 on the Management of the Roads Sub-sector for Sustainable development; establishment andoperationalisation of the three autonomous road sector agencies Kenya National Highways Authority (KeNHA),Kenya RuralRoads Authority (KeRRA) and Kenya Urban Roads Authority (KURA) by the end of 2008 to develop and maintain the entirenational road network.This operation will cost Kshs 450 million.Additionally will be the preparation and implementation ofthe Road Investment Plan (2008-2018) as well as the full harmonisation of legislative framework governing roads. Development of rules and regulations for the maritime laws: The rules and regulations to be drafted are expectedto assist during the operationalisation of six maritime law bills.They are:the Merchant Shipping Bill; the MarinePollution Bill; the Carriage of Goods by Sea Bill; the Marine Insurance Bill; the Kenya Ferry Corporation Bill; the Admiralty Court Jurisdiction Bill; and the Amendment Bill.All these bills are due for enactment by Parliament duringthe Plan period. Transformation of Kenya Meteorological Department into Semi-Autonomous Status: The Kenya MeteorologicalDepartment (KMD) will be de-linked from the mainstream Civil Service to a semi-autonomous status.This new agencywill be renamed the Kenya Meteorological Agency (Kenya MET).The de-linked Kenya MET will be capable of generatingand borrowing funds in order to offer more efficient and effective services within and outside the country. Energy: The sector will continue to implement Sessional Paper No.4 of 2004 governing the use of energy.The followinginstitutional and legal reforms that are embedded in the Sessional Paper and will be undertaken.They include:•Formation of a Geothermal Development Company to undertake resource assessment;•Transformation of KPLC into a government owned transmission company and private sector led distributioncompany; Establishment of a Centre of Excellence for energy efficiency and conservation;•Establishment of energy equipment testing laboratories;•Development of standards and codes of practice on cost-effective energy use; and•Amendment of building by-laws under the Local Government Act Cap 265,in collaboration with the LocalGovernment in order to make it mandatory to incorporate solar hot water systems in urban building designs. Urban Development Policy :A policy framework for the proper development and management of the urban sector isvital.This is due to a number of significant challenges faced in urban areas.Firstly,the rapid urban growth isunmatched by services and urban management capacity.Secondly,the rapid growth of slums in urban areas is apotential disaster in the making.Thirdly,the growing tendency towards urban primacy and the imbalance betweenurban and rural development compromises the goals of sustainable development. Accordingly,a policy for urban development (which is currently lacking) will define strategies and mechanisms toenable the urban sector respond effectively to the challenges of urban development in order to meet the needs of urbanareas.This process will also harness the incremental gains achieved by the ongoing initiatives of the Local Governmentreforms,and translate the same into policy.These include:the Local Authorities Transfer Fund (LATF) experiences andthe LASDAP (participatory development,decentralisation and intergovernmental transfer systems). 3.2Information and Communications Technology (ICTs) "Strengthening the Foundation for a Knowledge Economy" The Government of Kenya recognises the importance of ICT in economic development and has therefore initiated majorsteps to promote its use.One of the major initiatives that the Government is pursuing is to improve ICT infrastructurein order to bridge the digital divide and lower the cost of communications.The Government is also levelling the groundthrough development and implementation of policy and regulations aimed at attracting investment within the sector.Itmust be emphasised that the Government recognises information to be a resource which must be generated,collected,organised,leveraged,secured and preserved to enhance national prosperity. 3.2.1Situation Analysis In 1997,the government issued a telecommunications policy statement that underscored the Government's vision ontelecommunications development up to the year 2015.The challenge in 1997 was therefore to transform the monopolypolicy structure to one designed to manage initially,a liberalised telecommunications market and later,the ICT industryin general.This policy was followed by the enactment of the Kenya Communication Act in 1999.The Act created threeentities to spearhead the development of the communications sector.These are the Communication Commission ofKenya (CCK) which is the regulator,Telkom Kenya,a national operator,and Postal Corporation of Kenya (PCK) to dealwith postal services.In 2007,the Government launched the ICT Board to oversee the development of ICT in Kenya and the National AnalogueDigital Broadcasting Migration Plan to be finalised by 2012.In the same year,(2007) the Government also publishedthe ICT strategy for business process out sourcing,as well as the Kenya Communications Amendment Bill and theMedia Bill 2007.The Government has also liberalised the mobile cellular market and currently there are four licensed mobile operators.Following the liberalisation of the international gateway there are now many players in the sector providing satellitebased broadband access.In particular,the mobile telephony providers have introduced internet access products.However,the costs are still relatively high.In an effort to reduce these costs,the Government is investing in both terrestrial and undersea fibre optic cable.In addition,there has been rollout of a broadband wireless connectivity inrural areas through various wireless technologies including Code Division Multiple Access [CDMA] and WIMAX.Mobiletelephone operators are expanding their network and Telkom Kenya is also expanding its network to reach morewireless subscribers around the country As part of the on-going public sector reforms,the government has endeavoured to leverage the use of informationtechnology in order to give Kenyans services that are prompt,convenient and responsive to their demand.To acceleratethe flow and exchange of information,Local Area Networks (LANs) have been installed in all Ministries/Departmentsheadquarters in addition to acquisition of ICT hardware and software.The development of integrated government-wideinformation systems has been accelerated.These include the Integrated Financial Management System and IntegratedPersonnel and Payroll System,online recruitment and selection system,online exam results and pension system.The government has also established a web portal http://www.kenya.go.ke and created web sites for all ministries aswell as mainstreaming the use of emails within the Civil service.In addition,the Government has established adedicated fibre connection for all ministries within the capital to allow for efficient communication between variousgovernment agencies.The ICT sector has been directly involved in mapping,collection and management of data forplanning purposes.Kenya possesses a big comparative advantage in terms of unmatched filming locations and an abundance ofprofessional film makers,artistes and local crew.The last five years have seen the emergence of Kenya as the hub offilming in a number of major international films shot,thus earning the country global recognition and contributing toGDP growth.To spearhead the development and maintenance of an orderly and sustainable film industry,theDepartment of Film Services has continued to license both local and international filmmakers,provided liaison servicesand continued its onslaught as a leading production house.In July 2005,the Kenya Film Commission was establishedto market Kenya as a major filming destination in the region.Subsequently,a restructuring of the Kenya FilmCensorship Board was initiated to enable regulate and set standards for the film industry.The industry has continued to support training both locally and internationally to impart skills for efficient service delivery.The Kenya Institute of Mass Communications (KIMC) and Kenya College of Communications Technology (KCCT) offertraining opportunities to students in the fields of Information and Communication Technology and Mass Media.TheseInstitutes produce market ready graduates every year in the various fields of ICT and mass communication. 3.2.2Emerging Issues and Challenges Since ICT is a dynamic area,advances in technology are likely to occur frequently.Currently,the following challengesare being experienced within the communications sector:•Lack of an institutional and legal frame work to implement automated services including electronic transactions;•Lack of standardisation of components and systems being procured and applied across the Government;•Limited country-wide ICT awareness that hinders cultural and attitudinal change;•A wide internal digital divide between rural and urban areas as well as low bandwidth;•Financial and human resource constraints;•Bridging the "islands of automation"by allowing sharing of information among agencies;•High costs of ICT utilisation and maintenance;•High costs of migrating from analogue to digital broadcasting;•Challenge of obtaining a better integration of ICT solutions into company and public policies. 3.3.3. Programmes and Projects for 2008 – 2012 Developing affordable information and communication network infrastructure and applications is central to building theinformation economy.Accordingly,the government's objective is to ensure that the country has a competitivetelecommunications industry which delivers reliable and affordable services and products for the economic and socialbenefit of citizens.The development of ICT Parks and Digital Villages will gradually lead to low-cost provision of ICTgoods and services.This is also expected to facilitate the growth and establishment of BPOs. The East African Marine Systems (TEAMS): Kenya relies mainly on satellite connections to link it to the rest of theworld.Hence,this makes it costly for outsourcers to do business.In addition,the lack of high-capacity bandwidthconnectivity has limited Kenya from exploiting its full potential.Hence,the government,in collaboration with the United Arab Emirates,will install The East African Marine Systems (TEAMS).This is a submarine cable that will extend fromMombasa to Fujairah in the UAE,thus providing Kenya with an affordable high-capacity bandwidth.Furthermore,thegovernment is pursuing a partnership project with the private sector and it is projected that the construction will becompleted by the end of 2009. National Terrestrial Fibre Optic Network Project: The National Terrestrial Fibre Optic Network Project is intended tocomplement the TEAMS project by ensuring maximum utilisation of capacity and connectivity in all districts in thecountry.Consequently,the implementation of the National Terrestrial Fibre Optic project is divided into three maincomponents that will include the Central,Western,Coast and North Eastern regions of the country. Government Common Core Network (GCCN): The Government Common Core Network (GCCN) is intended to functionas a shared and secure interoperable government-wide ICT architecture.The system will not only integrate work processes and information flows,but will also improve inter-ministerial sharing of databases and exchange ofinformation.This will eliminate duplication and redundancy,improve public access to government services and ensureresponsiveness in reporting,monitoring and evaluation. Local and Wide Area Networks: Local Area Networks (LANs) have been installed in all government ministryheadquarters.In addition,LANs will be put in place in the provinces as well as the districts.Currently,the project hasbeen implemented in five provincial headquarters.These LANS will eventually be linked to the GCCN to form the basisof a national information infrastructure that will allow for seamless communication within the government.The targetis to complete the project during the Medium-Term Plan period. Kenya Transparency Communication Infrastructure Programme (KTCIP): The KTCIP programme aims to ensureequity in the provision of ICT services.The programme has two components,namely:• Establishment of Digital Villages :The government is currently supporting the development of digital villages atthe constituency level.These centres will provide avenues for the full utilisation of the NOFBI and TEAMSinfrastructure for BPO related initiatives.This will facilitate online delivery of government services and capturingstatistical data right from the constituency level.• Bandwidth subsidy :This component aims at providing bandwidth subsidy for universities and colleges,businessprocessing outsourcing,e-government and content development and digitisation.This will accelerate the usageof ICT in learning,social and government institutions. Data Centre/Data Recovery Centre: The government Data Centre (GDC) will be established to provide storage for allgovernment data bases.In addition,the Neutral Data Centre (NDC) will provide world-class services to governmentministries,departments and agencies,private sector operators and businesses. Integrated Management Information Systems (IMIS): To improve on governance,the following systems will be developed:Pensions Management Information System (PMIS); a Company Registry and e-voting; digitised courtrecording; Geographic Information System (GIS); digitisation of archival resources at the Kenya National Archives; LandRegistry System; Electronic Banking Systems,District Management Information System (DMIS) and IntegratedPopulation Registration System (IPRS). Information and Content Development: The government has embarked on initiatives aimed at leveraging on digitalcontent to unlock new opportunities to conduct business.The scope of information and content activities within theICT sector include digital content strategy,creating and protecting content and delivering and accessing content. Film Industry: A major goal of the industry is to become a significant player by developing a major motion pictureproduction industry with sufficient employment,and capitalising on the economic,social,and cultural rewardsassociated with such industries worldwide.Hence,the government will implement the following programmes:Marketpromotion and generation of investments within the industry; the development of creative and technical skills;improvement of public,mass media facilities and equipment; development of information,education andcommunication services; public awareness about the industry; film administration and facilitation; and incorporating ageneral restructuring and reforms within the film industry . Rural ICT Enterprises (RIEs): The government will facilitate the marketing of locally assembled ICTs such as the PCsand related ICT products on behalf of SACs.It will also encourage rural ICT SMEs or "digital villages"with the necessaryminimum ICT platform for electronic communications to take place.These RIEs will be based at the constituency levelin an effort to offer business solutions suitable to rural settings,taking into consideration the specific business andcommercial needs of Kenya's rural economy.In addition,the RIEs will have the capacity to provide affordable accessto basic and a diversity of ICT services to the surrounding population. Multimedia Technology Parks (MTPs): The government has identified the Export Processing Zones (EPZ) in Athi Riveras the location site for the proposed MTPs.Plans are therefore underway to establish more ICT enterprises. The East African Sub-Marine Cable Systems: The main objective of the project is to improve the quality of bandwidthavailable for global connectivity by linking the East African region to the Global Submarine System.This will involve thelaying of undersea Fibre Optic Cable from Mombasa to Fujairah in UAE.This project will cost approximately $110m.The project is being implemented in an open access model where operators in the region,under the Public PrivatePartnership Initiative,have invested in a special purpose vehicle.However,the government will retain 20 per cent ofthe project. ICT Hardware: ICT hardware is a very important component of ICT infrastructure and a pre-requisite to any meaningfuldeployment of ICT services to the population.Unfortunately,they have to be imported and until recently,importedhardware parts were not subject to any fiscal concessions.Currently,the taxes on ICT hardware are largely zero-rated.Zero-rated taxes on ICTs are integral to the stated government policy objective of universal access to affordable ICTservices.On its part,the Government will set up National ICT Centres of Excellence to develop a critical mass of humanresource required to support capacity for the industry. Madaraka PC Project: In collaboration with ICT incubators at Jomo Kenyatta University of Agriculture and Technology(JKUAT),University of Nairobi (UoN),Kenya College of Communications Technology (KCCT),and Strathmore University(SU),the Ministry is implementing a project to assemble a low cost PC for the local market.The project is intended toprovide an incubation environment for students in local universities.In addition,it will give Kenyans access toaffordable,robust PCs and create a market which will not only provide hardware and software products,but also createan environment where these products can be developed and manufactured.It will also facilitate the provision of after-sale and maintenance services. ICT Software: The government is currently holding negotiations with various ICT software providers with a view tosecuring bargains which will make ICTs affordable and universally accessible.In addition to providing fiscalconcessions on software,the government will also promote local software development by encouraging a scheme toensure that at least 50 per cent of government software procurement is sourced from local software developers.Thegovernment will also encourage software multinationals like Microsoft and Oracle to offer special incentives like freedevelopment tools,training,certification and marketing support to local software developers. 3.2.4Policy,Legal and Institutional Reforms Due to rapid technological changes in the sector,the legal and regulatory framework has lagged behind ICT development.Consequently,a clear policy and legal structure will be put in place to guide developments within the sector. Policy Framework •Develop and enact National Film Policy;•Review the Telecommunications Sector Policy Framework (March 2006);•Develop and enact National Records Management Policy;•Enact the National Policy on Natural Resource Information; and•Develop and enact E-waste Management Policy. Legal Framework •Enact Freedom of Information Bill;•Enact ICT Bill; Repeal Films and Stage Plays Act Cap 222;•Review Kenya Communications Regulations 2001;•Repeal Postal Corporations Act 1998;•Amend Kenya Broadcasting Corporation Act Cap 221.Other Acts that impact on the sector's performance include:•The Monopoly and Price Control Act;•The Copy Right Act;•The Act on Privacy;•The Official Secrets Act;•The Science and Technology Act of 1990; and•The Local Government Act. All these Acts will be reviewed in tandem with changing technology. 3.3Science,Technology and Innovation "Harnessing Science,Technology and Innovation for Regional and Global Competitiveness" The integration of Science,Technology and Innovation (STI) in national productive processes is central to the successof the government's policy priorities and programmes outlined in Kenya Vision 2030 .This is particularly importantwithin the context of demands for global economic competitiveness,sustainable development and equity concerns.Consequently,the development of the necessary scientific and technological infrastructure,as well as the technicaland entrepreneurial skills is an essential prerequisite to the transformation of Kenya into a knowledge-based society.Introducing innovative ideas into products,processes and services is highly dependent on the presence of a clearly defined and supportive policy,as well as having an institutional and legal framework that effectively addresses citizenneeds and aspirations.The capabilities of STI are therefore critical in ensuring sustainable development associated with natural resourcemanagement and disasters.Further,STI capabilities promote sustainable development,especially through socialintegration,conservation and sustainable management of biodiversity; sharing opportunities and benefits of aknowledge-based society and economy and strengthening local and indigenous knowledge and culture. 3.3.1Situation Analysis If Kenya is to benefit from globalisation,it must enhance the global competitiveness of its exports by using STI.Furthermore,the accelerated emergence of a knowledge-based society and breakthroughs in the sciences has had atremendous impact on the activities of businesses and the government.Indeed,it has also affected the way peoplelive,study,and work.Kenya has recognised the critical role played by STI in its national development.Hence,over theyears,the country has established many S&T institutions in addition to making significant strides in Research andDevelopment (R&D).The MTP prioritises on social and regional equity in the development of technological infrastructure,technical andentrepreneurial skills.In addition,it defines supportive policies inclusive of institutional and legal frameworks.Specificareas of focus include:the development of innovative ideas into products,processes and services; measures aimedat creating more jobs; safeguarding the environment against disasters; and mitigating the effects of climate change.However,greater efforts are needed to ensure that there is an adequate supply of scientific and technological skills.This can be achieved by:•Acquiring and retaining highly skilled staff;•Strengthening policies to enhance awareness and public understanding of science;•Improving the quality of scientific and technological learning;•Encouraging individual creativity and broadening opportunities and support for students to pursue STI studies;•Adapting curricula to changing skill demands;•Including interdisciplinary knowledge and managerial/entrepreneurial skills;•Developing partnerships with the industry. 3.3.2Emerging Issues and Challenges In Kenya,the challenges faced by the STI sector include the need to develop stronger,national innovation systems.Inaddition,there is a need to ensure sustained development of human resources within the realm of science andtechnology.The relative contribution made by the private and public sectors needs to be considered.The STI sectormust address the changing role of intellectual property rights and global-scale issues that call for enhancedinternational co-operation in science and technology.There is also a need to efficiently harness available naturalresources in a sustainable way for the benefit of all Kenyans.Other challenges include the following:•Enhancing the role of STI in national development;•Ineffective coordination and lack of critical resources and infrastructure to develop and integrate STI;•Inability to acquire,maintain and retain modern equipment as well as personnel;•Weak linkages with the productive sector,as well as regional and international counterparts;•Lack of an integrative policy framework; Mismatch between skills acquired from Kenyan training institutions and the industry requirements; and•Inappropriate and unresponsive intellectual property rights regimes and lack of awareness of STI benefits. Against a background of growing demand for human resources in STI,a recent decline in the number of science andengineering graduates poses a great concern because it could hamper the long-term growth prospects of the country.The challenge of meeting demand for Science and Technology talent is made all the more difficult by waning interest inscience among youth thus leading to a rapid ageing of the workforce in the public research sector.In addition,there is anobvious gender gap among Science and Technology graduates (notably at the doctorate level) with male students forminga large majority.Other concerns include market disincentives to research careers and brain drain of scientific personnel. 3.3.3Programmes and Projects for 2008 – 2012 Since the government of Kenya recognises the importance of STI,it will institute a number of measures to leveragethe STI sector to deal with the challenges it faces for the benefit of Kenyans.These measures will cover the2008–2012 period and are categorised under five,key strategic thrust,namely: Strengthening Technical Capacities and Capabilities: Kenya's overall STI capacity and capability is currently weak in comparison with other developing countries.Consequently,the government will focus on the creation of betterproduction processes,placing a strong emphasis on technological learning.The focus will be on technologies andprocesses that enhance national competitiveness and facilitate the creation of quality jobs.In addition,the capacitiesof STI institutions will be enhanced through advanced training of personnel,improved infrastructure,equipment,andby strengthening linkages with actors in the productive sectors.A programme targeting provision of STI infrastructurewill also be implemented over a period of three years. Developing a Highly Skilled Human Resource Base: Skilled human resource requirements relate to sufficiency andcompetence.Although Kenya has a pool of talented human resource,there is a shortage of skilled workforce in manySTI fields that support the national priority sectors.In order to develop a highly skilled human resource base,measureswill be put in place to improve the national pool of skills and talent relevant to the needs of national priority areas.Tothis end,a National Skills Inventory and Audit Survey will be implemented to form a basis for targeted long-termdevelopment of a human resource base to support the STI sector in accordance to UNESCO's STI standards.On the basis of this,a National Critical Skills Development Strategy will be formulated for implementation by 2009.Thenumber of researchers,scientists and engineers will be increased to focus on national priority sectors.Furthermore,the current transition rate from secondary level education to university will be increased and the postgraduate trainingwill be strengthened,particularly in the fields of Science and Technology.Numeracy and literacy levels will besubstantially increased by 2012 at all levels of the education system. Intensification of Innovation in Priority Sectors: The Kenyan economy exhibits limited levels on innovation requiredto foster increased output and productivity improvements necessary for employment and wealth creation.In thisregard,a biannual National Innovation Survey will be conducted to determine the incidence of innovation in the nationalpriority areas as well as determining the impediments to increased innovation in those sectors.Additionally,to intensifyinnovation,the funding for basic and applied research at higher institutions of learning,as well as for research anddevelopment conducted in collaboration with industries will be increased to Kshs.37 billion by 2012.In order to promote greater efficiency in various national priority sectors,promote international competitiveness andassure consumer acceptance,a programme to promote standardisation and quality assurance in the various sectorswill be implemented.This will strengthen existing systems and bring them up to par with international best practice.Indigenous knowledge and technology,which is part of Kenya's national heritage,remains unmapped.Moreover,it has @@@ exposed the country's national heritage to misuse by external interest groups.Measures will therefore be taken toidentify and protect this heritage.In order to encourage innovation and other scientific endeavours,a system ofnational recognition will be established to honour innovators. Enhancing Science,Technology and Innovation Awareness: A strong foundation and basic understanding of STI,and its universal importance is needed to make certain breakthroughs or commercialise applications that will ensurethe prosperity of the country.There is need to create appreciation and awareness on the importance of science,technology and innovation in Kenya and its implication in everyday life,among policymakers and the general public.Currently,the awareness of ethical,moral,legal,social and economic aspects is low.In view of the importance of STIin society,efforts must be made to promote awareness of new ideas and discoveries to the general public. A key goal of activities under this thrust will be to impart a culture of creativity,innovativeness and continuous learningin Kenya,which is supportive of STI uptake and utilisation.Under this plan,measures to create and deepen STIawareness amongst policy makers and implementers,particularly in the social sphere will be put in place.In addition,multi-sectoral initiatives to develop STI solutions that can address current and future development problems will bepublicised and showcased.This will include professional associations and community science networks; non-profitOrganisations and large businesses; Early Childhood Development (ECD),primary and secondary schools,universitiesand technical institutes.It is anticipated that such a programme will create and nurture a passion for learning,creativity,technology and innovation. Strengthening the STI Performance Management Framework: There is general ineffectiveness in the coordinationof the national STI system,leading to inefficient resource utilisation.Furthermore,there is a lack of adequateinformation to facilitate regional and international benchmarking and track the implementation of STI activities.Consequently,under this plan,an understanding of the utilisation of resources in the STI sector and its capacity tocontribute to national development will be critical.A framework to collect and disseminate information on the resourcesemployed by the sector and their effectiveness will be put in place.It will focus on timely tracking of theimplementation of various programmes/initiatives under this plan which will aim at realising its overall objectives.Thecoordination of STI activities will also seek to leverage the activities of international Organisations working in thecountry for the furtherance of national STI objectives. Resource Mobilisation: Implementation of the STI components of the MTP 2008-2012 will require significantresources.Even after aligning the funding requirements for implementing the identified strategic thrusts with the MTEFbudget,significant gaps still remain.Hence,funding for the implementation of the STI interventions in support of theMTP 2008-2012 will be drawn from the following sources:• Government Funding: With regard to government funding,the sector will prepare its annual Public ExpenditureReview (PER) reports to form the basis for resource bidding under the overall MTEF budgetary process.In thisregard,all the sector members will be involved in the budget process to ensure that the annual ministerial PERsand sector reports accommodate their respective needs.• The Kenyan National STI Fund: The objective of this fund is to secure adequate local and international fundingin support of the national Science,Technology and Innovation sector Medium-Term Plan.The fund will beformulated as a general national fund with a framework that allows for the creation of various specific funds tomeet specific funding needs in the STI sectors.This includes infrastructure development,applied research,innovation support among others.• Venture Capital: The private sector will be targeted to provide capital to bridge the gaps in Science andTechnology as well as financing innovation programmes.The macroeconomic environment for attraction andgrowth of venture capital will also be created.In addition,the financial services sector will be strengthened and focused to support the growth of venture capital.The programme will also focus on public – private STI fundingas well as general financing of STI initiatives.• Tax Concessions and STI Levy: Fiscal policies to promote resource mobilisation have been proposed in the MTP2008-2012.Tax concessions on targeted sectors will be introduced to motivate the private sector to contributeto the funding of the MTP 2008-2012 at the firm level and/or the national fund level.Additionally,a national STIlevy will be targeted to support the financing of the implementation of the MTP 2008-2012.This will be a PrivatePublic Sectors Partnership arrangement,where the government and private sector contribute to the levy.This willbe implemented under an agreed framework of partnership.• Development Partners: Development partners are currently supporting the government in some of the initiativesoutlined in this Plan.The sector therefore plans to engage their support to fill in the resource gap between theMTEF budget and Medium-Term Plan budget.The relationship between the sector and the development partnerswill be strengthened by developing strategic alliances based on the needs and policy direction of the Vision 2030 .Subsequently,the development partners will form a Joint Financing framework that will fund the implementationof the projects and programmes. 3.3.4Policy,Legal and Institutional Reforms Kenya's STI interventions for 2008-2012 will be implemented through a coordinated effort within the context of Vision 2030 medium-term objectives.It will also be based on targeted programmes of sectoral areas.The capacities of thenational R&D and innovation system will aim at responding to the needs of activating innovation.In addition,they willenhance the competitiveness of national industries in the regional and global market,in undertaking policy,legal andinstitutional reforms.A deliberate effort will also be made to rationalise the participation of the government,the privatesector and civil society organisations.The government,through the Ministry responsible for Science,Technology and Innovation will provide the necessarypolicy and political leadership to facilitate the realisation of the goals and objectives underscored in the STI Sectionof the MTP 2008-2012.This will include the following:•Ensure consistency in implementation of the STI programmes,projects and plans;•Create a favourable business environment required for the performance of the STI initiatives;•Provide a framework for mobilising resources,including funding support from domestic and foreign sources withinthe framework of the national policy for coordinating support for STI from Kenya's development partners;•Ensure coordination of the activities of ministries in order to implement the STI programmes and create unifiedmanagement and organisation arrangements at national and local levels;•Ensure the participation of domestic and international actors in the execution of the STI activities.Further,the Ministry responsible for Science,Technology and Innovation will be the coordinating body in implementingtargeted STI programmes.In the strategic framework of implementing the Medium-Term Plan ,it will assume thefollowing functions:•Provide standardised methodological administration of STI initiatives of the MTP 2008-2012 implementation,andanalyse the implementation;•Submit to the government consolidated reports of the STI implementation progress and evaluation/monitoringevery two years;•Monitor and evaluate activities of the parties implementing the STI tasks and actions,reflected in the MTP 2008-2012; Develop in consultation with the AG's office,laws needed for implementation of the STI initiatives MTP2008-2012;•Inform the public,through the media,about the MTP 2008-2012 STI implementation progress,spending,results,and achievements.Implementing sectors will thereafter organise activities related to development,implementation of policies on the STIreforms required for each specific sector.Specific related tasks and activities are firstly,enhancing the STI andinnovation capacity of the relevant sector,secondly,implementing STI programmes and projects within each specificsector,and thirdly evaluating,assessing and reviewing the performance of each of the programmes. 3.4Land Reforms Land is an important factor of production.This is because it provides the foundation for all other activities such asagriculture,water,settlement,tourism,wildlife and forestry.Accessibility to land remains a key aspect of the MTP2008-2012.Apart from its economic importance,land in Kenya has cultural value.This factor makes it one of the mostsought-after resources and therefore makes it one of the major sources of conflict.To deliver on programmes andprojects outlined in various sectors of the MTP 2008-2012 and give incentives to investors,land reforms will addressissues concerning land ownership and administration,security of tenure,land use and development,andenvironmental conservation. 3.4.1Situation Analysis Kenya has a total surface area of 59,195,800 hectares.Water bodies form a surface area of 1,123,000 hectares,while land makes up approximately 58,072,800 hectares.The total agricultural land stands at 56,914,000hectares.However,the proportion that is classified as high and medium potential land suitable for arableagriculture forms a meagre 17.5 per cent.The rest (82.5 per cent) is suitable for extensive livestock production,wildlife and irrigated farming.Rapid population growth (from 5.4 million in 1948 to an estimated 36 million in2007) means that in the last 60 years,the per capita land availability has decreased from 11 hectares to a mere1.7 hectares.This is bound to decrease further to less than 1 hectare by 2030,when the Kenyan population isprojected to be about 60 million.Land scarcity and population pressure is responsible for the conversion of marginal lands (such as floodplains andslopes) into farm land by the poor.This situation further increases their vulnerability and aggravates environmentaldamage.Consequently,the concerned agrarian groups are made economically worse off,barely able to meet theirsubsistence needs.Measures to ensure that there is sustainable land use and alternative off-farm economicenterprises for households will be implemented.Huge disparities exist with regard to ownership of land in the country,particularly in high potential regions where a fewindividuals own large tracts of land (most of which is idle),while a large number are squatters without any land of theirown.In addition,glaring disparities exist with regard to gender,with few women claiming land ownership.Land is oftena major source of conflict in the country,as witnessed in 1992,1997 and most recently after the December 2007general elections.The underlying causes of these disputes included (but were not limited to):•Historical land allocation disputes;•Long-term land problems eventually leading to the squatter problem; and•Economic disparities among different communities. To address the above causes,the government will develop and implement policies on security of land tenure,land useand development,and sustainable environmental conservation.A draft National Land Use policy was initiated in 2004,with a view to addressing a number of land-based challenges such as the proliferation of informal settlements,inadequate infrastructural services,environmental degradation,unplanned urban centres,and land conflicts.Finalisation of this policy and enactment of attendant legislations will be given priority within this sector. 3.4.2Emerging Issues and Challenges There are a number of challenges facing the optimal and sustainable land use and ownership in the country.Theyinclude the following: Insecure land ownership: Land adjudication and registration in the country covers only one-third (8 million hectares)of the country.This hinders people from asserting their rights over land.To emphasise this point,to date,only 4.06million title deeds have been registered countrywide.This is partly due to a slow adjudication process,inadequateresources for survey and mapping,conflicting land laws,a backlog of land disputes,(some over 20 years old) and lack of civic education and awareness.All these challenges will be addressed in the MTP 2008-2012. Unsustainable land use: In rural areas,land use practices are largely incongruent with the specific ecological zones.Uneconomic land sub-divisions,coupled with poor land use practices are responsible for accelerated land degradationand declining land productivity.In urban areas,proliferation of informal settlements,urban sprawl and encroachmentinto protected land remain key challenges.Meanwhile,the escalation of desertification as a result of land degradationand climate change pose risks to the lives of people living in ASAL communities. Land administration: Land is currently governed by many laws,most of which are in conflict.This presents greatdifficulties in land administration and management.However,this challenge will be overcome by the National LandPolicy which provides a framework for access to,planning and administration of land in the country.The policy willalso provide a framework to remedy gross disparities,particularly with regard to gender,in land ownership.Harmonisation of land laws into one statute will also reduce the multiple allocations of title deeds. Land information system: The current manual system of lands record management is not tenable for expeditious landtransactions. 3.4.3Programmes and Projects for 2008 - 2012 The flagship projects to be implemented include: Land registry: Land adjudication has not been completed in most areas of the country.Where it has been successfullycompleted,sub-divisions and new registrations make it a never-ending process.Consequently,the establishment of aGIS-based land registry at the Ministry of Lands will significantly streamline this process and help eliminate the existingbureaucratic practices. The Land Information Management System: This intervention will focus in establishing a transparent,decentralised,affordable and efficient GIS based Land Information Management System.This will contribute topoverty reduction,good governance and improved security of tenure.In addition,the system will enhance efficiencyand effectiveness in the delivery of services for all Kenyans,especially the poor.Further,the system will enable thecapture,management and analysis of geographically referenced land-related data in order to produce landinformation for decision-making in land administration and management.Investments will therefore be directed at revamping the recording system,revising the land maps and computerisation of the land registries to reduce theamount of time taken in service delivery. National Land Use Master Plan: This project entails the development of national,regional and local area land useplans through an integrated and participatory process. Land ownership documents replacement programme: The government will fully support the replacement of landownership documents for those affected by the 2007 Post-Election crisis.Where appropriate,the government willwaive the gazetted land ownership documents fees but only after conducting thorough verification in line with the lawsgoverning land in the country. 3.4.4Policy,Legal and Institutional Reforms The policy,legal and institutional reforms will focus on four critical areas namely: National Land Policy Finalisation and implementation: A draft National Land Policy has been finalised.The Policygives the roadmap to land institutional and legal reforms.This will ensure effective,efficient and equitable delivery ofservices; devolution of land administration and management; facilitate access to land administration and managementby the poor; and ensure participation and accountability. Institutional Transformation: A Land Reform Transformation Unit has already been established in the Ministry of Lands(Mol).This unit will facilitate the implementation of the Land Reform programme as outlined in the National Land Policy. Local Level Mechanisms for Sustainable Land Rights Administration and Management: This will involveimproving land administration and management issues,developing eviction guidelines and building capacities for LandControl Boards (LCBs) and Land Disputes Tribunals (LDTs).The capacity of the local land administration establishmentswill be strengthened to deliver efficient and timely services. 3.5Public Sector Reforms "A Citizen-Focused and Results-Oriented Institution" Public Service reforms will continue to be entrenched across the entire government.The reforms will be guided by theprinciples of Results Based Management,inculcation of values and ethics,strengthening institutions and developmentof key competencies.Reform Programmes outlined in the MTP are anchored on the human rights based approach todevelopment,which defines rights holders and duty bearers in a citizen-government relationship.Transparency,accountability,participation and the rule of law will constitute an integral part of the reform agenda. 3.5.1Situation Analysis Public Service reforms were initiated soon after independence,with the objective of enhancing efficiency andproductivity within the Public Service.Further,the reforms were intended to achieve equity in wealth distribution andcreate a competitive environment for investment and private sector growth.In 1993,the Civil Service Reform programme was launched and implemented in three phases:Phase 1 covered theperiod 1993-1998 and focused on cost containment.During this phase,the Voluntary Early Retirement Scheme wascarried out.86,516 civil servants passed through the scheme,while others were dropped through natural attrition. In addition,4,000 ghost workers were cleared from the payroll.Phase 2 covered the period 1998-2002 and resulted inthe rationalisation of ministries,with a further reduction of 23,448 civil servants in over- staffed cadres.In addition,ministries divested from non-core activities through privatisation and abolition while non strategic operations wereprivatised under the State Corporations Privatisation Programme.Phase 3 of the Public Service Reforms programme was introduced and implemented during the Economic Recovery Strategy (ERS) period.Measures undertaken during this period entailed consolidating and sustaining the gains madeduring the previous phases.They further aimed at accelerating the achievement of the ERS,MDGs and other nationaltargets.This resulted in a strengthening of the institutional framework whereby a number of strategic institutions wereestablished.This included the Public Financial Management Secretariat (PFM); Public Procurement Oversight Authority(PPOA); Privatisation Commission; among others.Other initiatives include establishment of the National IntegratedMonitoring and Evaluation System (NIMES); Performance Contracting; Integrated Financial Management InformationSystem (IFMIS),and the Local Authority Integrated Financial Operations Management Systems (LAIFOMS). 3.5.2Emerging Issues and Challenges Despite the gains made in the public service,there are a number of challenges which must be overcome in order tohave an efficient pubic service. Cultural and attitudinal aspects: The public services delivery system is characterised by inefficiencies associated withcultural and attitudinal aspects.This is partly responsible for the discomfort among service deliverers who are often fearfulof the consequences of reforms.This call for stakeholder involvement,including the citizens in determining policies,priorities and service delivery system so as to inculcate a culture of values and ethics throughout the public service. Service delivery orientation: Currently,public service delivery is largely process- driven rather than results- based.This means that the quality of services offered to citizens is not commensurate with the government's spending onservice delivery across the sectors.Furthermore,the situation is compounded by a weak enforcement of the PublicOfficer Ethics Act and lack of a critical mass of transformative leaders to drive and sustain necessary reforms. Capability and capacity: The existing capability and capacity is insufficient to deliver the kind of services necessaryfor national transformation as envisaged under Vision 2030 .Moreover,the available competence is neither efficientlynor effectively utilised and may be lacking altogether.Inefficiency in the public service is mainly attributed to the lack of a modern human resource management system that champions competency-based and value-driven humanresource management principles and practices.Consequently,there is slow adoption of modern technology and lowservice delivery standards which are rarely benchmarked against best practise. Performance management: The rewarding system currently in place does not promote efficiency in the managementof the public service.The government will therefore deepen the performance management framework to ensure thatboth rewards and sanctions are used as measures to boost service delivery. 3.5.3Programmes and Projects 2008-2012 The following projects have been earmarked for implementation in the Medium-Term Plan: Kenya School of Government: The Kenya School of Government will be established with the objective of inculcatingpublic service values and ethics as well as enhancing transformative leadership.The school will also be used topromote core competencies for personnel within the public service sector. addition,4,000 ghost workers were cleared from the payroll.Phase 2 covered the period 1998-2002 and resulted inthe rationalisation of ministries,with a further reduction of 23,448 civil servants in over- staffed cadres.In addition,ministries divested from non-core activities through privatisation and abolition while non strategic operations wereprivatised under the State Corporations Privatisation Programme.Phase 3 of the Public Service Reforms programme was introduced and implemented during the Economic Recovery Strategy (ERS) period.Measures undertaken during this period entailed consolidating and sustaining the gains madeduring the previous phases.They further aimed at accelerating the achievement of the ERS,MDGs and other nationaltargets.This resulted in a strengthening of the institutional framework whereby a number of strategic institutions wereestablished.This included the Public Financial Management Secretariat (PFM); Public Procurement Oversight Authority(PPOA); Privatisation Commission; among others.Other initiatives include establishment of the National IntegratedMonitoring and Evaluation System (NIMES); Performance Contracting; Integrated Financial Management InformationSystem (IFMIS),and the Local Authority Integrated Financial Operations Management Systems (LAIFOMS). 3.5.2Emerging Issues and Challenges Despite the gains made in the public service,there are a number of challenges which must be overcome in order tohave an efficient pubic service. Cultural and attitudinal aspects: The public services delivery system is characterised by inefficiencies associated withcultural and attitudinal aspects.This is partly responsible for the discomfort among service deliverers who are often fearfulof the consequences of reforms.This call for stakeholder involvement,including the citizens in determining policies,priorities and service delivery system so as to inculcate a culture of values and ethics throughout the public service. Service delivery orientation: Currently,public service delivery is largely process- driven rather than results- based.This means that the quality of services offered to citizens is not commensurate with the government's spending onservice delivery across the sectors.Furthermore,the situation is compounded by a weak enforcement of the PublicOfficer Ethics Act and lack of a critical mass of transformative leaders to drive and sustain necessary reforms. Capability and capacity: The existing capability and capacity is insufficient to deliver the kind of services necessaryfor national transformation as envisaged under Vision 2030 .Moreover,the available competence is neither efficientlynor effectively utilised and may be lacking altogether.Inefficiency in the public service is mainly attributed to the lack of a modern human resource management system that champions competency-based and value-driven humanresource management principles and practices.Consequently,there is slow adoption of modern technology and lowservice delivery standards which are rarely benchmarked against best practise. Performance management: The rewarding system currently in place does not promote efficiency in the managementof the public service.The government will therefore deepen the performance management framework to ensure thatboth rewards and sanctions are used as measures to boost service delivery. 3.5.3Programmes and Projects 2008-2012 The following projects have been earmarked for implementation in the Medium-Term Plan: Kenya School of Government: The Kenya School of Government will be established with the objective of inculcatingpublic service values and ethics as well as enhancing transformative leadership.The school will also be used topromote core competencies for personnel within the public service sector. Results Based Management: This programme entails deepening results-based management strategies in order tomeet citizen expectations.It will therefore target all government ministries/departments and regional developmentauthorities.To attain a citizen-focused public service,the government will develop and implement a results-basedperformance for monitoring systems,common public service delivery measurement standards and service deliveryaction plans. 3.5.4Policy,Legal and Institutional Reforms The government will give priority to the following reforms in transforming the public sector: Sectoral reform Strategies: Reforms to be undertaken include:Citizen-Centred Policy Review,Citizen Participationand decentralisation of service delivery. Public Finance Management Reform (PFM): The PFM were initiated in 2005,with the objective of strengtheningfinancial management and enhancing resource utilisation across the government.These reforms will be finalized andmade more comprehensive during the Plan period. Structural Review of sectors: This review will seek to clarify and harmonise roles of actors in policy,planning,monitoring and evaluation. Organisational Review: This will aim at separating policy formulation,regulatory functions,legal and service deliveryacross the public sector. 3.6 Human Resource Development,Labour and Employment "Every Kenyan with decent and gainful employment" Kenya aims to create a globally competitive and adaptive human resource base to meet the requirements of Vision 2030 .Kenya's main potential lies in its people – their creativity,work ethic,education their entrepreneurial and otherskills.To ensure significant and consistent results,the human resources will be managed,rewarded and steered todevelop global competitiveness.To be successful in developing competitiveness,the capacity to utilise knowledge andinformation in design,production and marketing of traditional exports will be enhanced.This will result in qualityhuman resources in health care,education,and training on improving work performance.Kenya's global competitiveness will depend on the ability to create a human resource base that will be constantlysubjected to re-training and access to technological learning within employment.These specific human resources playa major role in contributing not only to efficiency gains in existing economic activities,but also in diversifying economicsectors and activities in order to realise productivity gains. 3.6.1Situation Analysis The current primary working- age population (15-64 years) in Kenya is about 19.2 million which is 54.2 per cent ofthe total population.Out of the 19.2 million persons,14.6 million are labour market participants of which 11.9 millionare employed while 1.7 million are openly unemployed.It is estimated that by 2012 the working-age population willincrease to about 23 million persons.It is critical to note that 1.3 million (72 per cent) of the unemployed are youngpeople below the age of 30 years while 51 per cent of the unemployed are below 24 years of age.The unemploymentrate among the youth age 15-24 is at 24.5 per cent with that of the females being higher at 27.4 per cent compared to 21.6 per cent for the males.Urban areas account for higher rates (38.5 per cent) compared to the rural areas 18.9per cent.Over the period 2003-2006,the share of modern sector employment to total employment shrunk from the 2002baseline figure of 24.7 per cent to 21.3 per cent in 2006.The private sector accounted for over 60 per cent of wageemployment in the formal sector,with the public sector wage employment having declined from 38.8 per cent in 2002to 35 per cent in 2006.The service sector is the main source of employment in the formal sector accounting for about55 per cent of the wage employment.In the informal sector,wholesale and retail trade,hotels and restaurantsaccounted for 58.6 per cent of informal sector employment in 2006 followed by the manufacturing sector at 22 percent in the same year.The MSE sector,including the Jua Kali sector played a vital role providing employmentopportunities to 74.2 per cent of the total employed population and contributing about 18 per cent to the country's GDP.There is notable gender disparity in employment.The level of participation of women in modern sector employment isless than a third.For instance between 2002 and 2006,the proportion of women employed in the formal sectorincreased marginally from 29.6 per cent to 30.3 per cent.This depicts a less than one percentage point increase overthe five-year period,implying that even though dismal gains were made in creation of wage employment in the formalsector of the economy,the opportunities were not equally accessed by both genders as envisaged under the decentwork framework.Women are predominantly engaged in domestic unpaid work,subsistence agriculture and informalsector activities.Within the formal sector,women are engaged in low skill manufacturing,service and horticultureactivities which are mainly of low value addition,attracting low wages and relatively poor terms and conditions ofemployment,and hence perpetuate poverty among women.Generally,creation of productive and sustainable employment opportunities has presented one of the formidablechallenges to the government during the ERS period.Employment creation fell short of the ERS target of 500,000 by34,100 jobs.The jobs created in 2004 were some 16,600 jobs below the target while in 2005,the government realised41,100 less of the jobs that were expected to be created in that year.In 2006,469,000 jobs were created,which wassome 31,000 jobs below the country's target.Kenya's business environment is characterised by a large number of Micro and Small Enterprises (MSEs),whichaccount for roughly 75 per cent of total employment and an estimated 18 per cent of GDP.Despite the critical roleplayed by informal sector and particularly Micro and Small Enterprises (MSEs) in promoting employment creation,thesector continues to face traditional challenges which include low productivity and limited technological transfer.Someof the measures to address MSE issues include Sessional Paper No.2 of 2005 on Development of Micro and SmallEnterprises for Wealth and Employment Creation for Poverty Reduction which provides the policy framework to guidegrowth and development within the sector,and the recently enacted Occupational Safety and Health Act 2007,whichprovides for safety and health standards for all work places,including in the informal sector.Other Interventions are asindicated in table 3.6 below. Table 3.6: Interventions in the informal sector (Jua Kali Sector) over the ERS period To reform the labour market management in Kenya to international best practices,the government enacted five LabourLaws in 2007.These are; The Labour Institutions Act,2007; The Labour Relations Act,2007; The Employment Act,2007; The Occupational Safety and Health Act,2007; and The Work Injury Benefits Act,2007.The modalities tooperationalise and implement the laws are being worked on under the tripartite arrangement that involves government,employers and workers. A safe and healthy workplace minimises the risk of employers and workers in encountering occupational accidentsand diseases.Such a scenario is critical for enhancing enterprise and national level productivity as it impacts positivelyon the longevity of life,earnings,quality of life,and country's socio-economic development and minimises cases ofworkmen compensation claims.Enactment of the Occupational Safety and Health Act,2007 is a key achievement inthis direction and its implementation in the plan period will have great impact.In realisation that productivity is an important determinant of competitiveness as it enhances the capacity of firms tobecome viable,profitable and create sustainable jobs,the government has,in collaboration with the social partners -FKE and COTU- established a productivity centre which champions the productivity movement in the country.Since itsestablishment in 2002,the centre has undertaken productivity awareness campaigns and improvement programmes.The activities are being undertaken in collaboration with the Japan Productivity Centre for Socio-economicDevelopment (JPC-SED) through the Pan African Productivity Association (PAPA). 3.6.2Emerging Issues and Challenges Kenya's ability to compete in the global arena is hampered by several factors.These include: High Population and Youth Unemployment: The high population growth rate that is not matched with the creation ofviable economic opportunities pauses a great challenge.Kenya has a youthful population.The high unemploymentamongst the youth constitutes a formidable risk factor for both the youth and prosperity of the economy,and requiresappropriate intervention.About 90 per cent of the unemployed youth do not have appropriate vocational or professionaltraining and therefore have limited chances of fully participating in the labour market.One of the forms ofunemployment that has persistently been manifested in Kenya is voluntary unemployment.This form of unemploymenthas mainly been reported amongst the youth who,in most cases,are selective about the type of jobs.This type of youthunemployment is contributed by the negative attitudes of the job seekers towards some jobs,especially manual labour.Current government employment creation strategies have tended to favour,among others,labour-intensive publicworks programmes.These strategies cannot be effective if the negative attitudes of young job seekers towards some jobs are not addressed. High Rural-Urban Migration: There is high level of rural-urban migration especially among the youth due to low levelsof development in the rural areas which makes them less attractive to investors.In addition the rural-urban migrationcreates high pressure on available job opportunities and social amenities. Child Labour: Lack of updated and comprehensive information on the size and structure of child labour and all itsmanifestations has led to inconsistent intervention measures.In addition the persistent incidences of poverty,increaseorphanhood especially due to HIV/AIDS,high levels of unemployment and limited income generating opportunities havetended to aggravate the problem Human Trafficking: Kenya suffers from both domestic and international Trafficking in Persons (TIP).Studies haveshown that Kenya is a source,transit and destination country for victims of TIP.Given the considerable effects of TIPon human resource development,utilisation and the general labour market,it is critical that non-legislative steps thathave already been initiated and be up scaled to achieve greater gains. The Informal Sector: While the informal sector continues to play a critical role in employment creation,the sector isfaced by challenges which include low productivity,limited technological transfer,poor occupational health and safetymeasures,inadequate access to markets and marketing channels,and information asymmetry. Labour Market Skills and Information: Kenya faces a number of challenges in aligning the planning and developmentof its human resources to her developmental needs.The lack of reliable,adequate and timely data on almost all facets ofthe labour market has constrained policy formulation necessary for promoting employment and human resourcedevelopment.There also seems to be un-coordinated collection of socio-economic data by different public and privatesector institutions.A number of gaps also exist in the data in terms of comprehensiveness,interval of collection,coverageand the general form in which the data may be available,its accuracy and the extent of accessibility.Poor linkagesbetween the labour market and training/research institutions has led to skills mismatch and underdevelopment.Thecountry's labour market is still characterised by co-existence of trained unemployed manpower alongside skill shortagesin some areas within the market.This needs to be addressed for enhanced competitiveness within the economy. Workplace Safety and Health: One of the greatest challenges that undermined the fortification of workplace healthand safety services in the country is the lack of comprehensive policy on occupational health and safety.This has partlycontributed to the weak safety culture amongst workers and employers,and non-compliance with international healthand safety standards. Industrial Relations: Industrial harmony is critical for enhanced productivity and firm competitiveness.Data oncollective bargaining shows that the number of Collective Bargaining Agreements (CBAs) negotiated and registered bythe trade unions increased from 304 in 2002 to 344 agreements in 2006.Most of these agreements contain thetraditional clauses such as wages,working hours,leave,housing,retirement and medical schemes.Only 32.7 per centof the CBAs in 2005 and 24.7 per cent in 2006 contained contemporary issues such as productivity,gender,HIV and AIDS,sexual harassment and specific occupational health and safety clauses.In the recent past,issues such asintroduction of technology,outsourcing,job evaluation,and provision of childcare facilities and other forms ofemployment such as casual,temporary and contract works have become more crucial than ever before.Delay insettlement of industrial disputes affects industrial relations.Specifically,investigation,conciliation and industrial courtarbitration points have been identified by labour market players to be some of the key areas of delay in the disputeresolution chain.A number of issues are alluded to for such delay which include absence of a legally set time limitwithin which dispute conciliation/investigation has to be finalised; inadequate human and financial resource capacitywithin the MLHRD; and limited goodwill in negotiations by parties to a dispute.Even though the new Labour laws haveincorporated time limits,within which a dispute has to take in critical stages of its resolution,their operationalisationand effective enforcement laws remains a challenge. Social Protection: Maintenance of a comprehensive social protection programme is regarded as one of the sufficientrequirements for improved productivity and industrial competitiveness.The existing schemes of which NSSF is the keyplayer are not fully developed and modernised.There is need to offer affordable and comprehensive coverage ofpersons in the informal sector.Also expanding the service offering to include development loans for employees andcontributors is a key challenge. Productivity Promotion: Inappropriate legal and institutional capacity for the Productivity Centre of Kenya (PCK) tofacilitate its effective operation remains a challenge.It is established as a private company under the Companies Act(Cap.486) which makes it difficult for the government to fully finance its operations. Vulnerable and Persons with Special Needs: The plight of people with special needs has not been adequatelyaddressed in the past.People with special needs constitute a considerable proportion of the openly unemployed,disguised employees and the working poor.Such a scenario,if not addressed,cannot guarantee adequate socio-economic development and social cohesion within the country.Full integration of this group into the world of work cansustainably reduce the numbers of the poor and the unemployed in the country. Gender and Employment: Gender disparities in the formal employment and particularly in the decision making levelscontinue to be a challenge.This requires to be addressed among others,through the implementation of the AffirmativeDirective requiring a minimum 30 % to women in the public sector.In addition,deliberate efforts need to be taken topromote women employment in all sectors of the country's economy. Mitigating HIV/AIDS in workplaces: HIV/AIDS is one of the contributors of low productivity and high labour costs inKenya.It is reported that the national adult HIV/AIDS prevalence reduced from 10 per cent in 2004/2005 to 5.1 percent in 2005/2006.The youth are the most affected.Prevalence continues to be high amongst the active labour forcewith adverse impact on the operations of many companies in Kenya,their employees,and households.It threatens todrag the country's competitiveness.The trade unions,employers' organisations and the MLHRD have crucial role inensuring that employees have domesticated/implemented the HIV/AIDS workplace policy.Areas that need addressinginclude discrimination against persons living with HIV/AIDS,establishing of Voluntary Counselling and Testing of HIV atworkplace,proper referrals for employees testing HIV positive,and workload and sick leave for sick workers.The Post 2007 Elections crisis,caused turbulence in the labour market.Some workers lost their lives and/or their closerelatives,others sustained injuries of varying degrees while a similarly large number of workers and their families weredisplaced and lost means of livelihood.In addition,property of considerable value has been destroyed.This hasimpacted negatively on productivity and competitiveness nationally and globally. 3.6.3Programmes and Projects for 2008 - 2012 For the period 2008-2012,specific human resource development interventions will be undertaken in the followingareas; Human Resource Development: Kenya's global competitiveness will depend on the country's ability to identify,develop and utilise its human resource base.A National Human Resources Database will be established through aNational Manpower Survey,a Micro and Small Enterprise (MSE) Survey,an Informal Sector Survey,and a skillsinventory.To address the issue of brain drain,the government is committed to implementing measures that would ensureexpansion of the absorptive capacity of the domestic labour market and retention of a critical mass of skilled personnelwithin the economy.At the same time,mechanisms to offload excess labour to needy and friendly foreign markets willbe developed.These efforts will be preceded by taking stock of available skills in the country and the subsequentidentification of skills for export.To promote creativity,innovation and development of special talents,a framework will be put in place to facilitateidentification,recognition,nurturing,and rewarding of both academic and non academic talents.In the public service,training and capacity building will focus on training for performance improvement as opposed to training for promotion.In the informal sector,tailor-made skills will be imparted to the entrepreneurs,their staff and trainees.In addition,centres of excellence for MSEs will be established in each province to promote technological transfer,capacity building,product design and development and marketing of MSE products.The said trainings will be facilitated in collaborationwith the private sector.To consolidate the gains already realised on industrial and vocational training,YouthPolytechnics and National Youth Service will be transformed into Centres of Excellence so as to produce high qualitygraduates. In bridging the gaps between high cadre and middle-level technical skills,mechanisms of tapping the skills of retiredtechnical and professional Kenyans through specific mentorship programmes will be developed.Existing institutionswill be expanded,improved and equipped with e-learning facilities for public servants.In addition the government willretrain and redirect human resources in excess supply to areas experiencing shortages in order to meet therequirements of enterprises.For efficient skills utilisation,the gap between the skills possessed by the job seekers and those required by industrywill be addressed.Linkages between the industry,technical training institutions and research institutions will bestrengthened.This will promote training that is demand-driven,and ensure that technical and research institutions areresponsive to the requirements of industry,particularly in the priority sectors.Consequently,the curricula and syllabiin the education and training institutions will be reviewed.An appropriate feedback mechanism and policy framework to promote industrial attachment and apprenticeship system will be established.Strategic management and co-ordination of human resource aspects of skills development and utilisation will be ensured.Measures will be put inplace to identify,attract and retain talent,particularly in the key sectors of the country's economy.Towards this end anIntegrated Human Resource Development Strategy (IHRDS) will be developed.The strategy will provide the guidingframework for review of the curriculum for various programmes at all levels of skill development and career guidanceand counselling.On creating employment for the youth,Youth Empowerment Centres will be established in all the constituencies.Thecentres will promote information sharing,provide online career services and facilitate ICT development.Thegovernment will facilitate regulation and operations of the Foreign Private Employment Agencies (FPEA) to enhanceethical standards in foreign employment matters,and facilitate collection of information on the Kenyans working andliving abroad. Occupational Safety and Health: Employers have an inherent duty to provide safe work places for their employees. A safe place of work would lead to reduced occurrence of work-related accidents and diseases,and insurance claimsresulting to higher productivity and lower production costs.The government has committed to enforcing theOccupational Safety and Health Act No.15 of 2007.The government will also endeavour to collect,analyse anddisseminate necessary information to workers and employers.Towards this end,collaborative interventions will bepursued.To develop and manage occupational health and safety,and work injuries benefits an Occupational Safety andHealth Insurance Benefits Authority (OSHIBA) will be established.The Authority will be responsible for theadministration of Occupational Safety and Health Act (OSHA) and Work Injury Benefits Act (WIBA). Promotion of fundamental principals of Rights at the Workplace Enterprise competitiveness and industrial democracy are hinged on the extent which players in the labour market candialogue.One of the key reform areas that the government will continue to focus on,especially in the medium term ismechanisms to expedite settlement and arbitration of industrial disputes and to address the decent work deficit in thecountry.In an effort to create a conducive environment for employment creation for majority of unemployed Kenyans,the government will ratify and domesticate ILO Convention No.122 on employment policy.The ratification of thisconvention will complement the government's resolve to pursue as a major goal,an active policy designed to promotefull,productive and freely chosen employment. Productivity Management: A significant step in growth and economic prosperity is nurturing,mainstreaming andpromoting productivity culture in all the sectors of the economy.To address the constraints of productivity,the legalstatus of the Productivity Centre of Kenya (PCK) will be reviewed to make it a national public institution that isindependent.It will be run under the PPP framework.An integrated productivity management system will be developedand implemented to facilitate productivity development. Promotion of Entrepreneurship Culture: The performance and competitiveness of the MSEs and the jua kali sectorwill be increased for it to effectively respond to the challenges of creating productive and sustainable employmentopportunities,promoting economic growth and poverty reduction in the country.A large number of Kenya's current andpotential entrepreneurs need human resource development to meet their operational and developmental needs.Thiswill be realised through specialised training that will be designed and offered to the entrepreneurs and theirmembership organisations at different levels.Entrepreneurial development programmes will be introduced in schoolsand other training institutions to facilitate development of a wide spread enterprise culture.Appropriate mechanismswill also be put in place to increase participation of youth and vulnerable groups in MSE and jua kali activities.Inaddressing the financial constraints facing youth and women entrepreneurs particularly start-up capital,thegovernment will scale up the already established Youth and Women Enterprise Funds.Commercial banks and MicroFinance Institutions (MFIs) will be encouraged to enhance lending to MSEs and the jua kali operators at fair interestrates.To give MSE and the Jua Kali Sector the required impetus,the implementation of Sessional Paper No.2 of 2005on Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction will be fast-tracked.In addition the government will formulate and enact the MSE Act and establish a National Council for SmallEnterprise (NCSE) Social Protection: Social protection is crucial for workers as it covers family benefits and health care and providesincome security in the event of such contingencies as sickness,unemployment,old age,disability,accidents,maternity,loss of the breadwinner and social assistance programmes.To address the challenge of low coverage of the socialsecurity systems,the NSSF Act has been reviewed to provide for conversion of NSSF from a provident fund to a pensionscheme.This will facilitate expanded coverage and provide for the requirements of the people in the informal and othersectors.The Fund is in the process of exploring various ways of enhancing contributions base by encouraging voluntarycontributions and setting a minimum contributory level.The Fund also will continue to play a significant role in nationaldevelopment by providing affordable housing projects for workers. 3.6.4Policy,Legal and Institutional Reforms The following specific reforms will be undertaken: Policy Reforms •Develop an Integrated Human Resource Strategy;•Enact the Employment Policy;•Develop the Diaspora and Labour export policy;•Formulate and implement the Wages and Incomes Policy,Review of the 16 wage regulation orders;•Enact the Child labour Policy;•Develop a National Occupational Safety and Health policy;•Develop a Productivity Policy;•Formulate and implement a multi-sectoral National Social Security Policy;•Wages and Incomes Policy;•Implementation of Employment Policy and Strategy for Kenya which will give a comprehensive framework forlarge scale employment creation including the establishment of a 24 hour economy; and•Fast Track implementation of Sessional Paper No.2 of 2005 on Development of Micro and Small Enterprises forWealth and Employment Creation for Poverty Reduction. Legal Reforms •Enact and enforce the Trafficking in Persons (TIP) Bill;•Enact of the National Youth Council Bill;•Finalise the Permanent Public Service Remuneration Review Board (PPSRRB) Bill;•Entrench workers social and economic rights in the Constitution;•Formulate and enact the MSE Act;•Promoting Fundamental Principles and Rights at the workplace;•Fast Track the implementation of the Labour Institutions Act,2007,the Labour Relations Act,2007,theEmployment Act,2007,the Occupational Safety and Health Act,2007 and Work Injury Benefits Act,2007. Institutional Reforms •Transform the Directorate of Industrial Training into a SAGA;•Create framework for linkages between industry,education,training and research institutions;•Establish labour and employment attaché offices;•harmonise statutes and mandate of public sector wage review bodies;•Develop labour colleges to offer Diploma and Degree programme on Labour and Employment;•Establish the Occupational Safety,Health and Injury Benefit's Authority;•Develop the Occupational Safety and Health Institute;•Establish the National Council for Small Enterprise; and•Transform the NSSF into a pension scheme with wider coverage and more products. 3.7Security,Peace Building and Conflict Resolution "A nation of peace and stability; a society free from danger and fear" Security is the foundation of good governance,individual social welfare and economic development.The pre-requisitesof security are peace and elimination of conflict.However,the 2007 post-election crisis demonstrated to Kenyans thatpeace and security cannot be taken for granted.There is empirical evidence to demonstrate that insecurity increasesthe cost of doing business in Kenya.Consequently,in order to effectively implement the first phase of Vision 2030 ,itwill be necessary for Kenya to build a strong and sustainable framework for peace and security,and to ensure that allinternal conflicts and differences are resolved within the boundaries of the law. 3.7.1Situation Analysis Over time,Kenya has acquired a deserved reputation as one of the most stable states in Africa.Nevertheless,thecountry has faced numerous threats to its national security and stability.These challenges have become increasinglysophisticated and complex,and have equally required change in the ways security agencies approach the fight againstcrime and insecurity.Moreover,the challenges call for a collaborative and integrated framework to effectively handlesecurity threats within the country. Although there have been incidences of electoral violence,ethnic clashes,terrorist attacks of external origin,and othercrimes the state has managed to keep all of these in check.Over the years,the Kenya Police,Administration Police,Provincial Administration (Provincial Commissioners,DistrictCommissioners,District Officers,Chiefs and Assistant Chiefs) and other national security agencies have played animportant role in the maintenance of peace,security and conflict resolution.Under the ERS,these institutions have undergone various reforms targeted at institutional capacity,as well as attitude and integrity change,in order toimprove service delivery.The events that followed the 2007 General Election and the difficult path that has been pursued in returning the countryto normalcy have brought to light a number of issues.Firstly,despite the encouraging progress made in the area ofsecurity reform to date ( as compared to the situation in 2003),a lot still remains to be done and a highly acceleratedreform effort is urgently required.It is pertinent to note that the post election events also affected individuals andfamilies within the security forces who were deployed to restore law and order.Furthermore,some institutionalbuildings,equipment and vehicles were also damaged thereby affecting the work of the Provincial Administration aswell as law enforcement officers .The Strategy as it applies to the maintenance of peace and security will therefore have to focus on rebuildingconfidence in the government among Kenyans.In addition,there is a need to cultivate trust and confidence amongdifferent communities and in re-assuring them that their safety and security is guaranteed.Perpetrators of crime willface the law and all IDPs will be resettled and reintegrated into their earlier areas of residence or places of work.Someof the ways this can be achieved will be by:•Enhancing peace building and conflict resolution programmes;•increasing police presence through recruitment of more police officers and building of more police stations; and•Constructing Administration Police (AP) camps and intensified intelligence gathering to pre-empt crime.These will be complemented by political efforts to build inter-communal trust and harmony and to promote betterrelations between security forces and the communities they work with.Progress has been made in a number of areas over the ERS period.Through an accelerated double recruitmentprogramme,the ration of police to the general population improved from 1:850 in 2003,to 1:600 in 2007.At thecurrent pace of recruitment,the target ratio of 1:450 now seems imminently achievable.As a way of building trustbetween the police and the general public,initial steps have included the establishment of Community Policing (nowin 222 police stations across the country),the introduction of Police Open Days and the use of interactive multi-media(electronic and internet) to provide important information to the public.Steps to increase police effectiveness are also underway.These have included accelerated re-tooling and re-trainingof the police force through sensitisation trainings on human rights approaches and anti-corruption.In addition,thecompletion of the pilot phase of a force-wide attitude and culture change programme is now being rolled out acrossthe country.In terms of working conditions for the police,a police housing programme is in the process of beingsuccessfully implemented,with 65 per cent of the project completed.Remuneration terms and conditions for the policehave also been reviewed and improved from 2003.With regard to equipment and technology,more vehicles and patrol boats have been deployed to increase visibility andmobility of the police force.Other innovations include enhanced communication technology,fingerprinting equipmentand anti-riot gear.As a result of these capacity improvement efforts,the level of reported crime fell from 77,340 in2003,to 63,028 in 2007.Furthermore,internal and cross-border cattle rustling has fallen by 90 per cent,while 20,136illegal firearms and over 50,000 rounds of ammunition were recovered and destroyed during the ERS period.In an effort to deal with the growing complexity and sophistication of crime,the Proceeds of Crime and Anti – MoneyLaundering Bill was presented to Parliament.In addition,a Trans-national Organised Crime Bill,a Counter-Trafficking-in-Humans Bill and the Anti-Terrorism Bill will be expected to be tabled in Parliament shortly.Moreover,both the KenyaPolice Act and the Administration Police Act are at an advanced stage of review. Following the 2007 post-election crisis,the government has accelerated the strengthening of border security andenhanced cross border peace dialogues through peace building committees established under the framework of theNational Steering Committee on Peace Building and Conflict Management.In the North Rift region,the Provincial Administration and security forces successfully established a voluntary disarmament campaign,titled: Dumisha Amani .Furthermore,specific Humanitarian Civil Action (HCA) social and infrastructure initiatives have been undertaken tobegin the process of reducing conflict and promoting socio-economic development.Other achievements within the Security sector during the period 2003-07 included the following:•A Public-Private Stakeholders Security Forum was established to promote dialogue and enhance partnerships;•The National Coordination Agency Against Drug Abuse (NACADAA) was transformed into a fully-fledged semi-autonomous national authority;•A draft National Crime Prevention Strategy has been developed and is currently under discussion;•A draft Policy and Legal Framework on the Integration of Population Registration Services has been developed;•The Citizenship Act,Immigration Act and Aliens Registration Act have been reviewed and updated;•A draft Civil Registration (Births and Deaths) Act has been developed and is currently being finalised;•Police Human Rights Manuals have been developed for the Kenya Police (Police HR Manual),while a Provincial Administration Training Manual was developed to capture children rights,gender,succession issues,land andenvironmental issues. 3.7.2Emerging Issues and Challenges Despite the progress made within this sector,the area of security,peace building and conflict resolution faces severalchallenges that need to be addressed for Vision 2030 to be realised.These challenges can be broadly categorised aseither external challenges which refer to the national environment or internal challenges relating to the institutional setup. i) External/National Challenges In its efforts to promote a safe and secure environment,the sector faces eight broad challenges,namely: Organised Criminal Groups: In the midst of widespread unemployment and poverty in the country as well as a fastgrowing population,the emergence of organised criminal groups is now a real and significant threat to the peace-loving society that most Kenyans would aspire to live in.In particular,the majority of Kenya's unemployed comprise ofyoung people who are idle,frustrated and,increasingly,have little at stake to loose.Hence,it is not unusual that theyare easily lured to join criminal groups as well as indulging in generally anti-social behaviour. Resource Conflict: Resource conflict manifests itself particularly in terms of competition for land,water and pasture.This situation is likely to persist and could also rise in the face of growing population pressure.It has also becomeincreasingly difficult for Kenyans to earn a living in a challenging economic environment. Politically related Violence: Politically related violence,( as recently witnessed both before and after the 2007 GeneralElections) has become prevalent in Kenya's political landscape that largely constitutes ethnically-based politicalparties.The unregulated use of campaign funds has further aggravated this problem.With regard to this,a more recentconcern is the increasing use of the aforementioned organised criminal groups and militia to perpetrate electoral andethnic violence. Drug and substance abuse and Drug trafficking: Increasing anti-social behaviour,as exemplified in widespreaddrug and substance abuse,presents a new and growing challenge particularly among the youth.The ease with which illicit drugs and alcohol are now available presents a major problem.Further compounding the problem is theincreasing use of Kenya as a drug trafficking focal point with an international dimension. Increasing Visibility of Contact Crime: Although robbery,burglary and outright theft account for roughly four out ofevery ten crimes committed in Kenya,increased human rights awareness,and more intense press reporting,hasshifted the spotlight to contact or violent crime.This accounts for three out of every ten crimes in Kenya,with sexualviolence and other forms of abuse against vulnerable persons coming to the fore.The increased exposure accordedto such contact crime has naturally set new standards of public expectation of the need for security and justiceinstitutions to rapidly resolve and bring to justice the perpetrators of these crimes,particularly in the context of rapeand sexual assault. Trans-national Crime: Fast-changing trends in the international arena have resulted in more complex andsophisticated crime of a trans-national nature.These crimes include money laundering,human trafficking andterrorism.Kenya has received significant international attention in each of these areas over the past few years. Proliferation of Small Arms: Small arms trafficking and usage continues to pose a major threat to security in Kenyaby creating a market for arms and space for violence in both urban and rural areas.Furthermore,Kenya's extensiveinternational boundaries and inadequate surveillance of cross-border movement calls for more effective border andimmigration control,especially across borders shared with countries that have had a history of political instability. Ebbing Confidence in Kenya's Security: There is an urgent need to re-build public confidence in Kenya's securityinstitutions as was demonstrated in the post-2007 election events.As a result of the chaos and violence and generalstate of insecurity,many Kenyan citizens showed no respect for national security institutions,or institutions of law andorder.It should be emphasised that this often understated challenge deserves greater policy attention. ii) Institutional Challenges Faced with the significance of the external challenges just described,the government will adopt the necessary action–to deal with these challenges.In so doing,the following six internal challenges will be addressed: Early Warning and Response Mechanism: The government will put in place Conflict and Disaster Early Warning andResponse mechanisms to avoid a recurrence of the disturbing situation that recently emerged in Kenya after the 2007elections.In particular,existing mechanisms need to graduate from an "event"or "incident"based response to anapproach based on "trend monitoring"(e.g.banditry,cattle rustling,ethnic friction,food or water shortages).Moreemphasis needs to be focused on "prevention",as the recent post-election crisis aptly demonstrated. Security and Crime Research: Related to the foregoing point is the challenge of an inadequate security and crimeresearch framework,following the 2007 launch of the National Crime Research Centre.The 2007 post-election crisisdemonstrated that emphasis must be placed on getting this institution up and running as a matter of urgency. Outdated Institutional Policies: Several security sector institutions continue to operate within a framework ofoutdated policies and laws that are at odds with the demands of an emerging democracy.Examples of outdated lawsinclude the Police Act,Administration Police Act and Public Order Act.The relevant policies and laws are presentlyunder review and will be implemented as soon as they are approved. Inadequate Human Capacity: Human capacity in the sector is inadequate both in terms of numbers and skills.The"numbers"challenge is particularly crucial,as it impacts on the capacity of the sector to provide security within andalong Kenya's borders and territorial spaces.Furthermore,despite recent improvements,remuneration and livingconditions remain deficient particularly with regard to police and prisons staff housing. Aging Infrastructure: The sector currently suffers a general inadequacy in working infrastructure,with aging facilitiesand equipment and insufficient office space affecting the disciplined forces and provincial administration in particular.Hence,adequate modern working infrastructure is urgently required. Need for ICT- Based Systems: The lack of modern systems and technology,particularly ICT-based systems,is aparticular challenge for the security sector in today's fast-evolving context.This ranges from basic documentmanagement systems (e.g.crime records/files) to data management systems (e.g.crime data analysis systems,orforensic databases).It also extends to systems for dealing with citizens (front-office systems).In a systems andtechnology-weak environment which Vision 2030 seeks to promote,both the speed and quality of decision taking inthe security sector must be improved.Linked to this is the need to build capacity in the use of ICT as a managementand decision-support tool and getting the technology to be accepted across the sector. Integration of ex-Security Officers: An increasingly serious challenge relates to ex-security officers.Kenya lacks a'veterans' or retired security officer's framework or policy for the re-integration of these ex-officers into society.Consequently,the country has failed to tap into valuable human capital and knowledge which could make a positivecontribution to society.These ex-security officers could make an impact in so far as security,peace building and conflictmanagement issues are concerned.The government will therefore give attention to this issue over the Plan period. 3.7.3Programmes and Projects for 2008-2012 Under the security,peace building and conflict resolution framework,the vision for 2030 is "security of all persons and property throughout the Republic" .The goal for 2012 is to enact and operationalise necessary policy,legal andinstitutional frameworks around security,peace building and conflict resolution.Specific strategies will involve:•Promoting a stronger sense of Kenyan statehood and nationhood,as the foundation of sustainable peace,securityand national unity;•Promoting national and inter-community dialogue in order to build harmony among ethnic,religious,racial andother social groups,in order to enhance peace building and reconciliation among all Kenyan communities;•Inculcating a culture of respect for the sanctity of human life that restrains people from resorting to violence asmeans to resolving personal and community disputes.This should start with the family,schools,the church andall public institutions;•Deepening policy,legal and institutional reforms for improved enforcement of law and order;•Improving coordination and communication among the various institutions dealing with security to enhanceeffective management of crime;•Promoting sustainable public-private partnerships in policing and the provision of security services;•Promoting stakeholders cooperation and community involvement for improved safety and security;•Curbing small arms trafficking and usage and tighten immigration and border control;•Deepening the use of early warning systems to detect and address crime and other forms of insecurity;•Executing policies and programmes for the re-integration of ex-security personnel into society,and thedeployment of their skills to local communities;•Intensifying the campaign against and control of drug and substance abuse as well as drug trafficking;•Intensification of surveillance and improvement in crime detection;•Improving human resource management,particularly with regard to terms and conditions of staff in the policeforce,security forces and administration related field services;•modernisation of security equipment;•Recruitment of more security staff:This will improve security by improving the police to population ratio; and•Capacity building through intensified modern training of security staff and provision of the necessary equipmentin all security agencies. Flagship Projects for 2008 – 2012 As a cross-cutting sector,the security sector creates an enabling environment for the entire nation,at personal,familyand sectoral levels.Security is a vital factor from an economic and social perspective,as well as at institutional levels.For the period 2008-2012,four flagship projects,which fall under the National Security and Policing Programme,havebeen identified:• Forensic Laboratory – Establishment of a modern functional forensic laboratory to support the ongoing war oncrime.The key elements include the procurement and equipping of the laboratory and the simultaneousdevelopment of appropriate human capacity to manage this new function.• Urban Area Camera Surveillance (Pilot) – A national CCTV/camera surveillance project will be piloted in fourmajor urban locations in Kenya – Nairobi,Mombasa,Nakuru and Kisumu.It is anticipated that this project will becarried out as a Public-Private Partnership.• Police Staff Housing – This project was initiated under the ERS.A target of 20,000 housing units will bedeveloped during the MTP period.• National Security Data Centre – Its role will be to systematically buttress the war on crime,and to acceleratethe sharing of information across all security and policing agencies.This national Centre will be established andmade operational during the MTP period.A key objective of this project will be to integrate all security informationinto a single national security database covering the whole of Kenya.In addition,one flagship project,which falls under the Population Registration and Immigration Services Programme,has been identified,as follows:• Integrated Population Registration System – A modern,integrated population registration database will beestablished under this programme.This database,titled the IPRS,will link other systems included (as listed laterin this section) the Third-Generation ID Card,a new Visa Issuing System,a new Births and Deaths CertificateSystem,a new Biometric Passport System and a new Border Management System.It will also be linked to othernational population registration systems,including the Kenya Revenue Authority,National Social Security Fund,National Health Insurance Fund Systems,as well as the National Security Database mentioned above. Other Priority Programmes The entire MTP framework for Security,Peace Building and Conflict Resolution (including the above flagship projects)is reflected in seven key programmes as follows:•National Security and Policing;•Peace Building and Conflict Resolution (PBCR);•Small Arms and Light Weapons (SALW) Control and Management;•Drug Demand and Supply Reduction (DDSR);•Administration and Field Services;•Aid To Civil Authority; and•Population Registration and Immigration Services.Key projects and policies within these programmes are outlined below,with a definite time frame and resource detailprovided in the Implementation Matrix (Annex). National Security and Policing The overall objective of this programme is to "enhance the effectiveness of national security and policing services and operations across Kenya" .This will be done through the following core projects and activities. Officer Recruitment and Training: Through the double recruitment programme,10,000 additional police officers will berecruited and trained during the MTP period raising the police-to-population ratio from 1:600 in 2007 to 1:450 in 2012. Crime Management Curriculum Review: A comprehensive review of the overall policing and crime managementcurriculum will be carried out between 2008 and 2009.The focus of this long-outstanding review will be to consolidatecurriculum improvements made over the years,while creating important new training content that reflects the latestinternational,regional and local skills in crime management as attuned to Kenya's crime management needs as anemerging democracy.The new curriculum is expected to be piloted in 2009 for full launch in 2010. Security and Policing Law Review: The government is in the process of reviewing the security and policing lawsincluding the Kenya Police,Administration Police and Public Order Acts.Under this key measure,all other related lawswill also be reviewed within an overall package aimed at making such law consistent with modern democratic norms.National Community Policing Initiative:The rollout of community policing initiatives – already established in 222stations across Kenya – will be accelerated to ensure that all police stations in Kenya are engaged in communitypolicing.Part of this rollout will include important lesson learning based on the experiences gains thus far.Public-Private Partnership (PPP) modalities will be explored to ensure that this national rollout is accelerated. Enhanced Crime Data Collation/ Analysis/Storage: Crime data reporting by the Kenya Police has improved over theERS period.However,data collection,analysis and storage methodology is still rudimentary and urgently needs to beimproved.This will be the integrated focus for security and police agencies over the MTP period,during which theNational Crime Research Centre – launched in 2007 – is likely to play an important role. Completion of Phase 1 of Police Reforms Programme: The first phase of the Police Reforms Programme had as afocus,crime prevention,improved human resource management,improved facilities,equipment and technology,building a positive image and strengthening its institutional framework.In the face of funding and operationalconstraints,not all reforms were completed,and these have now been rolled over into the MTP period. Security Facilities and Equipment Modernisation: In addressing the capacity challenges the sector faces,specificresources will be earmarked towards a comprehensive and phased modernisation of all security facilities andequipment. Peace Building and Conflict Resolution (PBCR) Programme The overall objectives of this programme are to "promote tolerance and peaceful co-existence among all Kenyan communities" and to "establish and operationalise a policy and institutional framework for PBCR and Early Warning Mechanisms on social conflict". To achieve these objectives,the following core projects and activities will be undertaken: Country-wide PBCR Civic & Stakeholder Dialogues / Fora: Expanding on a pilot framework already in place inselected locations,this process of civic and stakeholder dialogues and fora at national,provincial,district and locallevel is envisaged to take place at least once a year across the country.Such dialogue will be open in nature,aimedat community interaction on social and other issues,while at the same time allowing communities and stakeholdersto make their views known to government on matters of interest and concern. District Peace Committee (DPC) Framework: 20 District Peace Committees (DPCs) have been set up mainly locatedin the North Rift region.Under this initiative,the DPC framework will be extended to the entire country,and linked toDistrict Security Committees.It is envisaged that 20 DPCs will be established every year. Annual Socio-Cultural Events: It is envisaged that 2 annual cultural events will be held every year in at least 40districts around the country.Working on a rotational basis,these events will include music concerts,sporting contests,multi-cultural exhibitions and peace modelling.This initiative will act as an important cornerstone of the process ofbuilding national cohesion in a multi-cultural context.Public-Private Partnership (PPP) modalities will be pursued toensure that these events are successfully carried out. Multi-Media Peace Messages: As an ongoing programme,resources will be devoted towards the timed and regulartransmission of peace messages through the electronic,print and broadcast media.Varying creative approaches willbe used to ensure that these messages retain their impact and effect over the period of the MTP. PBCR Policy Framework: The peace building and conflict management processes will be institutionalised through apolicy and legal framework that establishes a National Peace Building Commission (NPBC).The core functions of thisCommission will revolve around leadership,management and coordination of all projects,measures and actions fallingwithin the Peace Building and Conflict Resolution Programme.It is expected that the NPBC will replace the currentNational Steering Committee (NSC) on Peace Building and Conflict Management. PBCR Capacity Development: Capacity development will be necessary not simply for officers of the NPBC,but alsofor Administrative Officers (Provincial Administration),Chiefs,Administration Police,District Security Committees andDistrict Peace Committees.The current peace building curriculum (including records of practical activities undertaken)will be consolidated and converted into a formal curriculum,including teaching,Training of Trainers and actual trainingmanuals.This will form the basis for continuous capacity building. PBCR MIS/M&E System: With a policy,legal and institutional framework in place,and a capacity developmentpackage available,the third element of management improvement will involve the development of a comprehensiveMIS/M&E system for PBCR. Small Arms and Light Weapons (SALW) Control and Management Programme The overall objectives of this programme are to:•control and manage the proliferation of small arms and light weapons across Kenya;•reduce demand for illicit SALW; and•establish and operationalise a policy and institutional framework for the Kenya National Focal Point with respectto SALW.The following key projects and actions are identified for this programme: District Awareness Forums: Public forums at district level will be held to create awareness and interact withcommunities on the issue of small arms and light weapons.It is expected that these forums will be institutionalisedin at least 20 districts in traditionally conflict and crime prone districts across the country. SALW Retrieval: Building on the success of retrievals achieved in the ERS period,law enforcement agents willcontinue to work closely with defence forces to retrieve illegal SALW. SALW Demand Reduction Research: Much practical experience and research work has been done in the area of SALW,particularly as regards the East and Central Africa region.The focus of this action will be to build on this work by establishing an institutionalised research process that seeks more efficient strategies to reduce demand for illegalSALW. District IGE Programmes: In conjunction with the above research effort,efforts will be made to promote and guideincome-generating initiatives,through the Provincial Administration,in at least 20 conflict prone districts across the country. SALW Policy Framework: To formally institutionalise the Kenya National Focal Point (KNFP),which currentlycoordinates SALW monitoring efforts through the Provincial Administration,a national policy framework on SALW willbe developed and implemented during the MTP period. SALW Capacity Development: Capacity development will be necessary not simply for officers and members of theKNFP,but also for Provincial Task Forces (PTFs),District Task Forces (DTFs) and all law enforcement and securityagencies and committees.Such capacity development will be informed both by ongoing SALW efforts and the proposedSALW demand reduction research. Drug Demand and Supply Reduction Programme The objectives of this programme are to:•reduce drug and substance demand and supply,and related crime and conflict;•facilitate effective treatment and rehabilitation of drug users; and•fully operationalise NACADAA.Key elements of this programme will include: Full Operationalisation of NACADAA: With NACADAA now formally established as a statutory authority,the initial MTPfocus will be:•full operationalisation,involving the recruitment of dedicated staff (previously most staff were drawn frommainstream Ministries),the acquisition of offices,procurement of equipment and other institutional set-up andcapacity development activities; and•establishment of formal inter-sectoral coordination and collaboration mechanisms. Drug Demand and Supply Reduction. Key focus areas will include: Public Education and Awareness Campaigns: Building on ongoing public education and awareness efforts will beenhanced,in partnership with private sector and development partners,as a demand-side initiative. Anti-Narcotic And Police Operations: Multi-agency operations involving police and intelligence agencies will beenhanced,with a key objective being to reduce the supply of drugs and illegal substances available in Kenya. Zero-Tolerance Measures :Enhanced punitive measures,including legal measures,will be introduced andimplemented in order to increase risks to drug traffickers and other trans-national criminals,while sending out a strong"zero-tolerance"message to drug users. Drug and Substance Abuse Research: NACADAA will continue to collaborate with educational and researchinstitutions on drug and substance abuse in Kenya. Facilitation of Effective Treatment and Rehabilitation of Drug Users: Under this measure,NACADAA intends towork in partnership with private sector medical institutions,private sector sponsors and private and community groupson initiatives that support the treatment and rehabilitation of drug users,within a holistic context that also includespost-rehabilitation counselling. Administration and Field Services Programme The objective of this programme is to "facilitate improved delivery of government services to Kenyans" .Key projectsand actions identified for this programme will include: Expanded District Development: With districts having increased from 72 to 147 in the past five years,the focus of thiseffort will be the necessary construction,equipping and operationalisation of district offices for all newly created districts. Sector Policy and Law Review: This programme will continue to lead policy,law and institutional reform effortsacross the sector.A summary of the reform agenda is shown at the end of this chapter. Capacity Development and Sector Linkages: As part of continued institutional strengthening,it is expected that pastlarge scale capacity development efforts will be enhanced during the MTP period.In addition,a core MTP focus of the Administration and Field Services programme,which is a coordinating programme,will be the effective coordinationof all security agencies,particularly given the expanded peace building and conflict resolution scope now envisagedfor the sector. Working Infrastructure: Working infrastructure,particularly communications equipment,vehicles and ICT willcontinue to be upgraded as the programme seeks to be increasingly responsive to the needs and rights of Kenyans. New Headquarters: It is envisaged that this programme will be relocated to a new,and more expansive,headquartersduring the MTP period. Aid to Civil Authority Programme The objective of this programme is to "support civil authorities in social and infrastructure development in harsh/conflict areas" .The key project under this programme is HCA (Humanitarian Civic Action) – Social and Administrative Infrastructure Support,which essentially involves the military working with civil authorities,mainly theprovincial administration,in social and infrastructure projects as and when needed. Population Registration and Immigration Services Programme The objective of this programme is to "establish and operationalise an Integrated Population Registration Database System (IPRS) and key supporting systems for Kenya" .Beyond the IPRS -identified earlier as a flagship project - thekey projects identified for this programme are:•Introduction of Third-Generation ID Card;•Improve Births and Deaths Registration Certificate System;•VISA Issuing System;•Biometric Passport System; and•Border Management System. All these systems will be linked through the flagship IPRS project. 3.7.4Policy,Legal and Institutional ReformsPolicy Reforms In support of the comprehensive programme defined in the previous section,an extensive policy reform agenda isenvisaged for the sector,which includes:•Finalisation and Rollout of the National Security Policy to enable the relevant sectors to develop their specificsectoral policies;•Finalise and implement the Community Policing Policy;•Finalise and implement Stakeholders Partnership Policy;•Review the policy on Military Humanitarian Civic Activities/Aid to Civil Authority;•To enhance the role of the Armed Forces in socio-economic development;•Finalise and implement a national Drug and Substance Abuse Control Policy;•Finalise and implement draft Peace Building and Conflict Management Policy;•Finalise and implement a draft policy on Small Arms and Light Weapons in line with regional and internationalconventions;•Review and Finalise the implementation of ICT ministerial policy especially by the security agencies;•Finalise and implement regulating policy on private security providers;•Finalise the review and implement District Focus for Rural Development Policy;•Develop a policy on Internally Displaced Persons (IDPs),Besieged Persons (BP) and Resettlement and reintegrationProgrammes;•Develop a policy on universal conscription of youth into the National Youth Service (NYS);•Develop and implement a gender mainstreaming policy for PA&IS; and•Finalise and implement the National Alcohol Policy. Legal Reforms The policy reform agenda will be supported by a legal reform agenda that includes the following:•Finalise the review of Kenya Police,Chief's,and Administration Police Acts;•Finalise and enact the organised Crime Bill;•Finalise and enact Anti Terrorism Bill;•Review and implement the Proceeds of Crime and Money Laundering Prevention Bill,2006•Harmonisation of the Liquor licensing Act and Traditional Liquor licensing Acts;•Implement the Witness Protection Act;•Review and enforce the Physical Plan Act to control the mushrooming of informal and illegal settlements especiallyin the urban areas;•Finalise the Hate Speech Bill;•Review the Firearms Act;•Review the Media Act to control incitement attempts;•Review the Freedom of Information Bill;•Review the Refugee Act;•Review the Narcotics Drugs and Psychotropic Substances (Control) Act,1994;•Review the Armed Forces Act to enhance its integration of HCA activities;•Enact the Alternative Dispute Resolution (ADR) Bill to institutionalise peace building and conflict transformation inthe country;•Finalise the Land dispute Tribunal Act; 56 VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 •Enact the Precursor Chemicals and Drugs Law;•Amend the Provincial and District Boundaries Act to accommodate the newly created districts; and•Domesticate international and regional Conventions through an enactment of the relevant legislations such as theInternational Shipping port security code and international maritime conventions. Institutional Reforms Institutional reform continues to be a priority for the sector.Over the MTP period,such reform will focus on thefollowing:•Deepen reforms being implemented in the Provincial administration especially the integrity and attitude changereforms to make the officers more people friendly;•Enhance the capacity of both human resource and equipment of security agencies;•Consider the establishment of a Metropolitan Police Authority for Nairobi and other major cities;•Establish an Independent Police Complaints Authority to deal with public complaints;•Establish a framework for co-ordination of public and private security stakeholders;•Implement the Integrated Population Registration System (IPRS);•Enhance the capacity and operationalise NACADAA;•Restructure the Early Warning System and Disaster Management Co-ordination mechanism in Kenya;•Provide a framework for stakeholder partnership for effective emergency response and rescue services;•Restructure the Peace Building and Conflict Resolutions Secretariat and structures at all levels;•Restructure the mechanism for identifying persons for registration in the districts along the international borders;•Restructure the Kenya National Focal point on Small Arms and Light Weapons;•Build the capacity of Forensic investigation unit through provision of appropriate equipment and specialisedtraining;•Acquire and install appropriate ICT infrastructure for all security agencies;•Enhance the capacity of National Maritime Patrol through provision of appropriate and adequate equipment;•Establish a mechanism to re-integrate retirees/ ex-servicemen into the society; and•Establish a framework for coordination of the campaign against drug abuse among all stakeholders. 4. The Four Economic Pillars Moving the Economy up the value chain Overview To address Kenya's economic growth challenges and thereby creating more opportunites for everyone,six prioritysectors have been targeted to raise the national GDP growth rate to 10% by 2012.The sectors are:Tourism,Agricultureand Livestock,Wholesale and Retail Trade,Manufacturing,Business Process Outsourcing and Financial Services.Thesesectors make up the bulk of Kenya's GDP (57 per cent) and account for approximately half of the country's total formalemployment.The sectors are supported by the enablers that include energy,infrastructure,Human ResourceDevelopment (HRD),Security,Information Communication Technology (ICT),Science,Technology and Innovation (STI)as discussed in chapter 3 of this MTP 2008 - 2012.This chapter looks at each of the six economic pillar sectors andidentifies the priority programmes and projects to be undertaken during this first Medium Term Plan period. 4.1Tourism "To be a top 10 long haul tourist destination offering a high-end,diverse,and distinctive visitor experience" Kenya is one of the leading tourist destinations in sub-Saharan Africa,a region that has significant potential for tourismgrowth.Moreover,the country is endowed with a unique combination of tourist attractions comprising of tropicalbeaches,abundant wildlife in natural habitats,scenic beauty,and geographically diverse landscape.Tourism is highlycompetitive and sensitive to price changes,while premium parks and niche products are so unique that they can bemarketed successfully at higher prices.In addition,tourism,through its multiplier effect has the capacity to promoteregional development,create new commercial and industrial enterprises,stimulate demand for locally-produced goodsand services and provide a market for agricultural products. 4.1.1Situation Analysis Tourism currently accounts for about 10 per cent of the Gross Domestic Product (GDP),making it the third largestcontributor to the GDP after agriculture and manufacturing.It is also Kenya's leading foreign exchange earnergenerating about Kshs 65.4 billion in 2007,up from Kshs 21.7 billion in 2002.The sector's contribution to thegeneration of employment has grown by over 3 per cent annually.Moreover,earnings per employee increased by 18per cent over the last five years.Further,the sector is a major source of government revenue in the form of taxes,duties,license fees,entry fees among others.This contribution has the highest multiplier effect due to its linkage withother sectors.Further,the sector benefits from lower capital/output ratio and import-content per unit of final outputcompared to most other sectors.The Tourism Recovery Programme,which started in 2003 resulted in tremendous recovery for the country,withinternational arrivals rising by an average of 12.5 per cent annually,from about 1 million in 2002 to about 1.8 millionin 2007.On the other hand,domestic tourism registered a remarkable growth from 656,100 bed nights in 2002,to1,869,800 bed nights in 2007. 59 THE ECONOMIC PILLAR 4.1.2Emerging Issues and Challenges Post election violence: Since the onset of the 2007 post-election violence,tourism practically collapsed as a resultof the negative publicity Kenya received in the global media which resulted in the country being perceived as veryinsecure.This violence led to a great reduction in the number of tourist arrivals; domestic tourism declined; damagedinfrastructure (hotels) and in some cases displacement of skilled labour.With the formation of the Grand CoalitionGovernment,given that the necessary infrastructural facilities are already in place,there is renewed optimism thattourism will pick up in the months ahead.However,the tourism sector is faced with other key challenges which needto be addressed for it to attain its full potential.These challenges include the following: Insecurity: In the past,the tourism sector has suffered from negative publicity and insecurity both real and perceived.The major sources of insecurity in the East African region are associated with political instability,terrorist threats,income inequalities,unemployment and poverty.The post election violence further complicated the security situationand generally had a negative impact on the sector. Inadequate Infrastructure Support: The available infrastructural and hospitality support facilities are inadequate forthe expected high tourist numbers.Improvements have been made on a number of roads leading to key resort areasas well as in new parks targeted as destinations to encourage additional tourists.Other investment avenues to beexplored include Rail and Marine transport. Narrow Product Diversity: Tourism activities in Kenya are currently concentrated on wildlife,which accounts for 70per cent of gross tourist earnings and 5 per cent of the GDP.Seven of the twenty six parks receive about 80 per centof visitors to the country.This is despite the existing potential in cultural,sport and resort cities,business tourism,eco-tourism,sports tourism,shopping,conference tourism,heritage sites among others community-based tourism.Thesector also needs to improve on the product and service quality. Inadequate hotel/bed capacity: The increase in tourist arrivals registered has not been accompanied bycorresponding investment in tourist accommodation.Consequently,bed occupancy levels during peak season are closeto full capacity (about 92 per cent).This challenge is more severe in the 4-5 star hotel categories that represent 18 percent of premier hotels. Untapped Domestic Tourism: Over reliance on traditional markets from western countries makes the sectorvulnerable to external shocks.However,there is a huge national and regional potential which need to be harnessed.This can be achieved through identification,development,effective marketing and promotion of products that appealto domestic and regional tourists. Source: Economic Survey 2007 and 2008 Table 4.1 Tourism Arrivals and Earnings,2002 - 2007. Environmental Issues: Major challenges to wildlife include the loss of habitats due to changes in land use and humanencroachment into protected areas and those adjacent to wildlife migration corridors as well as inadequate policy andgovernance to curb poaching.In addition,human encroachment into migration routes and use of protected areas asgrazing areas by pastoralists has heightened human/wildlife conflicts in areas such as Amboseli and Mara.This hasbeen compounded by the effects of climate change. Inadequate skilled Human Resource: An inadequate supply of skilled labour force has hindered the provision of highquality services within the sector.Further,the available training at lower cadres need to be upgraded to provide therequired skills. Research and Development (R&D): There is need for support to create and equip a functional and effective Researchand Development Unit in the sector.This will spearhead research on emerging trends,market and consumer surveysto duly inform decision makers and investors. 4.1.3Projects and Programmes for 2008 - 2012 In order to address the challenges confronting the sector,the MTP,in addition to the One Year Recovery Strategy willundertake the following flagship projects as part of the overall programme to promote the tourism sector. One Year Recovery Strategy Short term measures currently being undertaken include:•Aggressive advertising of Kenyan products and Media Campaigns both locally and internationally;•Re-branding of Kenya in overseas markets;•Advising countries that have imposed travel advisories to lift them;•Strengthen foreign missions to promote Kenya as a safe tourism destination;•Suspension of the programmed increment of park fees by Kenya Wildlife service for the entire 2008;•Encouraging,hotels,airlines and tour operators to offer discounts to attract customers;•Organising familiarisation trips;•Enhancing security on critical tour routes such as those leading to game parks and strengthening Tourist Police Force. Flagship projects for 2008 - 2012 Development of 3 Resort cities – Isiolo,Diani and Kilifi The first resort city will be constructed around Isiolo to optimize the rich tourism potential presented by Mt.Kenya,Meru National park,the Aberdares and Samburu National Park among others.The project is expected to turn Isiolo towninto a regional hub.In addition,it will open up the northern part of the country thereby,attracting economic activitiesand investments.The other two will be located at the coast with a specific theme.The resort at Kilifi will be a family-friendly resort targeting predominantly high-income tourists,while the one in Diani will emphasise on sensitisingtourists to the rich culture of Kenyan communities. Premier Parks Initiative This will involve branding of the most popular parks with the aim of offering high quality experience at premium rates. Under-utilised parks initiative The existing facilities and infrastructure in these parks will be rehabilitated and expanded.In particular,the current bedcapacity will be improved and expanded.In addition,measures will be taken to attract new investment to the parks and also to advertise tourist attractions at the parks.These parks include Meru,Mt Kenya,Tsavo East,Tsavo West,MtElgon and Ruma. Development of niche products • Eco-tourism – This is a popular product especially for the European and American market due to its environmentfriendly nature.Sites for these products will be developed in the Western region of Kenya.They will includeKakamega Forest,Ruma National Park,Mt Elgon and Mt Kenya Regions.• Cultural Tourism – Kenya has a wide variety of indigenous cultures,which have not previously been explored fortourism purposes.Deliberate efforts will therefore be made to promote authentic cultural experiences and launchhigh value cultural projects and festivals.The government will also partner with stakeholders to develop criteriato certify cultural homes (Home stay) in each community that can provide tourists with a cultural experience andbenefiting the communities at the same time.One way of achieving this is by creating opportunities for the localcommunities to participate in the tourist industry through cooperatives.The government will also partner withstakeholders to develop criteria to certify cultural homes (homestays) in each community that provides touristswith cultural experience.• Local Tourism entrepreneurship: This initiative will seek to develop the capacity of indigenous Kenyans toparticipate in the industry as entrepreneurs and investors.Among other things,this will entail awareness raisingand training.• Water-based tourism: Although the country has enormous potential for water- based tourism,this remainslargely under-utilised.This particularly applies to fresh waters such as Tana River and Lake Victoria where watersports and fishing can be developed.However,in order to facilitate the development of this product,additional bedcapacity will be required around Lake Victoria and Ruma National Park.• Sports tourism: Kenya enjoys a great international reputation in sports.Nevertheless,this potential has not beenfully exploited,yet it provides a good foundation for promotion of various types of sports tourism.Deliberateefforts will therefore be made to promote Kenya as a popular destination for sports tourism.• Cruise tourism: An ultra- modern cruise terminal at the Coast and a launch steamer service in Lake Victoria willbe built.•Other Niche products to be explored and promoted include Bird tourism and Agro-tourism. Other Programmes Amusement Park at Bomas of Kenya The park shall offer a variety of entertainment complexes that are designed to evoke distant or imaginary activitiessuch as Kenyan safari tours,immigration,cultural homesteads and innovative attractions.This park will also be anamusement centre for family members,where parents and children can enjoy twists,turns,bumps,spins,and smilesall day long.Features of the proposed park include a cliff hanger,falling star,rattler,demolition disco,the scrambler,roller coaster,larger swings and a mini railway. Building new exhibitions galleries for the Nairobi National Museums The Nairobi National Museum has had its infrastructure refurbished and modernised through a grant from the EuropeanUnion.However,it requires new,more relevant,engaging and exciting exhibitions.Accordingly,the new exhibitions willinclude cultural and natural artefacts which will give a more comprehensive account of Kenya's culture and history. These displays will promote patriotism and national pride as well as be a major tourist attraction for domestic andinternational tourism.Other displays will include human origins (Kenya is a cradle of mankind),geology,ecology ofKenya and art. Development of World heritage sites as tourist destinations (Lamu,Mt.Kenya and Sibiloi) Worldwide World Heritage sites are major tourist destinations.Kenya has three World Heritage sites:Lake TurkanaNational Parks,Mt.Kenya and Lamu Old Town.The National Museums of Kenya (NMK) in partnership with the KenyaWildlife Services (KWS) plans to develop Sibiloi National Park where the famous fossil site,Koobi Fora also known asthe Cradle of Humankind exists. Health spas at Geothermal sites Health spas are tailored-made to provide relaxation and curative benefits to user.They also benefit visitors with chronichealth complications as well as stress related problems.Moreover,health spas are ideally located in serene areascharacterised by naturally occurring hot,spring water and geysers.The Great Rift Valley is a high potential area for thesegeysers whose mineral content has some curative element and serves as a core tourist attraction. Business and conference tourism initiative Kenya has a large potential for business and conference tourism as a major product,owing to its location and ease ofinternational connections.To harness this huge potential,there is need to build ultra modern conventions/conferencecomplex preferably in the coastal region which accounts for about 57 per cent of the total bed nights.In addition,thisproduct will be improved by up-grading and building new conference facilities with possible location in the three newresort cities.To cater for increasing numbers of business tourists,the government,together with private sectorstakeholders,will also promote investment in hotels by international chains in major towns,especially in the cities ofNairobi,Mombasa and Kisumu. Tourism Marketing and Recovery Strategy The objectives of this strategy are to remedy damage caused to tourism sector by the post election violence and tosustainably market Kenya as the preferred tourist destination.These will be achieved through media and brand buildingcampaigns,destination familiarisation trips,source markets and products diversification,market research,andpromotions. Classification of all tourism facilities The objective is to ensure that tourists get value for their money by the sector maintaining high standards with regardto tourist facilities and attractions.Additionally,there is need to maintain a highly regulated tourism businessenvironment for investment and employment generation through the enforcement of both the Hotels and Restaurants Act and Tourist Industry Licensing Act. Reclaim Wildlife corridors and migratory routes (Mt Kenya and Kitengela) The establishment and maintenance of wildlife corridors and dispersal areas and biodiversity hot spots are significantto ensure continuity of viable ecosystems and capacity building for natural resource management.Securing thedispersal areas and wildlife corridors requires continuous efforts to encourage creation of conservancies.In criticalcases,the government will intervene and provide funds to support easement programmes,lease land from thecommunities,and acquire prime wildlife dispersal areas. Senior citizen assisted living facilities/wellness centre Kenya has a great potential for the development of assisted living facilities due to her value added advantage of apleasant climate and unique tourist attractions,including geothermal springs,rare species of flora and fauna andmedicinal herbs.An estimated 16 per cent of the tourists arriving in Kenya are aged 50 years and above with thefinancial ability to stay in the country for a long duration if the right facilities are in place.These facilities could provide specialised services such as nursing homes and facilities for elderly people unable to live alone,yet withoutincapacitating medical problems that necessitates living in a nursing home.Other key initiatives that would contribute to the expansion of tourism include:•Increasing the share of local investors in the tourism industry in order to increase the proportion of returns earnedand re-invested locally;•Streamlining the management of the tourism sector in order to attract investment and increase returns throughthe development of an effective tourism policy;•Developing a tourism Master Plan and a tourism regulatory framework; and•Establishing a workable compensation scheme for economic losses caused by wildlife. 4.1.4Policy,Legal and Institutional Reforms Policy Reforms To realise and sustain the tourism sector,various policy changes were made or initiated in the last five years.To thiseffect,tourism and wildlife policies were formulated.While the sector will continue to review these policies to suitchanging circumstances,the process of translating the two policies into law has been initiated.Hence,the Finalisationof the Wildlife and Tourism Acts will thus be conducted within the MTP Period.The sector will Finalise a Heritage policy during the Plan period in order to maximise the utilisation of existing heritagefacilities,develop a facilitative legal and institutional and regulatory framework,as well as improve efficiency inheritage investment. Legal reforms The legal reforms within this sector include the following:• Amendment of the KTDC Act: Gazettement of the KTDC Act will be necessary in order to increase borrowingcapacity from Kshs 265 million,to Kshs.1 billion;• Implement the DFI reform strategy for KTDC: The implementation of the DFI Reform Strategy for KTDC will bedone through the Ministry of Tourism & Wildlife and the Ministry of Finance;• Zoning: Zoning of Kenya into tourism development zones will be done in order to establish a developmentstandard for each product type.The carrying capacity of each zone will form the basis of a pricing mechanismthat will take into account the exclusiveness of each zoned area;• Enactment of KTB and KICC by Acts of Parliament: The existence of the two Acts has currently gone throughlegal notice; and• Passing and enactment of the Tourism Bill 2007. 4.2Agriculture,Livestock and Fishing Agriculture is one of the key sectors in the country with great potential for growth.Indeed,it contributes about 24 percent of the GDP,75 per cent of industrial raw materials and 60 per cent of the export earnings.Of this percentage,about 26 per cent earnings are indirectly linked to the sector through linkages to agro-based manufacturing,transport,wholesale and retail trade.The sector is acknowledged as one of the major employers of rural people,with anestimated 3.8 million Kenyans directly employed in farm,livestock production,and fishing while another 4.5 million were being employed in off farm informal sector activities.Under the MTP period,the sector is expected to be one ofthe key sectors in realising a quick post election recovery as well as the desired economic growth for the country. 4.2.1Situation analysis The Implementation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS),and the Strategy for Revitalising Agriculture (SRA),over the last 5 years have demonstrated that sustained growth in the sector ispossible,as outlined in this section. Food Crops: Food crops are classified into:cereals (maize,wheat,sorghum,rice,millet); pulses (beans,pigeon peas,cow peas,chick peas,green grams); and roots and tubers (Irish potatoes,sweet potatoes,cassava,arrow roots andyams).Most of these food crops have recorded increased production since 2002,with maize production increasingfrom 2.4 million tons in 2002 to 3.2 million tons in 2006.Production of beans increased from 481,225 tons to 531,800over the same period.Production of rice increased from 40,498 tonnes in 2003 to 64,840 tonnes in 2006.This wasdue to expansion of rice production in Mwea,Yala and Bunyala Irrigation Schemes and revival of Ahero IrrigationScheme.Production of wheat,has over the past 5 years averaged 375,000 tonnes compared to consumptionestimated at 890,000 tonnes.Production of roots and tubers,excluding Irish potatoes,on the other hand,increasedfrom 1.1 million tons in 2002 to 1.41 million tons in 2006.Production of Irish potatoes increased from 0.86 million tonsin 2002 to 2.41 million tons in 2006. Industrial Crops: Main industrial crops are tea,coffee,sugarcane,cotton,sunflower,pyrethrum,barley,tobacco,sisal,coconuts,and bixa.Tea is still one of the leading foreign exchange earners in Kenya.Tea production increased from287,100 tons in 2002 to 310,578 tons in 2006,while the value of exports increased from Kshs.34.3 billion to Kshs.47.3 billion over the same period.Export value of coffee increased by an average of 8 per cent per annum,while thatof pyrethrum recorded an average of 13 per cent growth rate.The value of coffee exports increased from Kshs.6.5billion to Kshs.8.7 billion over the same period.Following government efforts to revitalise the sugar industry,areaunder cane increased from 122,580 hectares in 2003 to 158,568 hectares in 2007. Horticulture: The horticulture sub-sector products include cut-flowers,vegetables,fruits,nuts,herbs and spices.Areaunder horticultural crops increased from just over 350,000 hectares in 2002,to over 380,500 hectares in 2006,while thevalue of total production increased from Kshs.32.0 billion to Kshs.54.4 billion over the same period.The export target of16 per cent of total exports was achieved and surpassed.Between 2002 and 2007 revenues from the sub-sector amountedto between Kshs.26.59 billion in 2002 to Kshs.65.2 billion in 2007,of which cut flower export value increased from Kshs14.8 billion in 2002 to 42.3 billion in 2007 and vegetables Kshs 10.2 billion to Kshs 20.8 billion over the same period. Fish Production: Fisheries production is a major source of livelihood for communities living around Lake Victoria andthe coastal regions.It employs over 60,000 fishermen directly,while over 600,000 people depend on the sub sectorindirectly for their livelihood through linkages in fish processing and trade.Currently,earnings average Kshs.4 billionannually through fish exports.Great potential exists for the development of fisheries activities within Kenya's Exclusive Economic Zone (EEZ) at the Coastand in the inland waters.During the last 2 years,the government acquired 13 patrol boats to use in the monitoring andsurveillance of the EEZ and inland waters.It also availed 35 out-board engines worth Kshs 10 million to BeachManagement Units along the Coast,the Lake Victoria region and in the inland lakes such as Naivasha,and Turkana formonitoring and surveillance.This has led to a substantial increase in revenues collected from Kshs 30 million in 2004 toKshs 117 million in 2005 and Kshs 135 million in 2006.The government is in the process of acquiring a vessel monitoringsystem to enhance monitoring and surveillance of the EEZ.In addition,adequate attention has been directed towards thepromotion of aquaculture (fish farming) in order to ease fishing pressure in major water bodies. Due to the perishable nature of fish,the government is putting in place the necessary marketing infrastructure tosupport fish production and marketing.For instance,an ice making facility has been completed in Mbita and is beingrun by the community.In addition,three cold storage facilities are under construction in Vanga,Malindi and Lamu. Livestock Production: Livestock production is one of the major activities in the sector.Further,it is practiced in allparts of the country either under the pastoral extensive system in the Arid and Semi Arid areas (ASALs) or underintensive,ranching and smallholder systems.The pastoral and commercial ranch systems traditionally contribute tothe supply of beef and small stock meat.Livestock production in the ASAL accounts for nearly 90% of the employmentopportunities and nearly 95% of the family incomes.It also accounts for about 40% of the Agricultural GDP and about30% of the farm gate value for agricultural commodities.In the high rainfall areas of the country,dairy production is akey source of income to over 600,000 households.Production of sheep,goats and poultry was also promoted with theaim of reducing poverty. Dairy: Since 2003,dairy production has grown impressively as manifested by an increase in milk production,from2.8 billion litres in 2002 to 3.8 billion litres in 2006,representing a growth of 36 per cent.The milk intakes byprocessors also increased from 143 million litres to 362 million litres during the same period representing a growth of153 per cent,while milk prices increased from a low of Kshs 8 per litre to a high of Kshs 18 per litre.In the year 2006,Kenya exported about 14 million litres of milk worth Kshs 700 million compared to less than one million litres that usedto be exported prior to 2003.The main export destinations are neighbouring countries like Tanzania,Uganda,Rwanda,Burundi,Democratic Republic of Congo,Sudan and Ethiopia.The revival of the diary industry has stimulated growth inrelated industries that manufacture animal feeds,veterinary drugs,packaging materials and other equipment. Beef Production and Marketing: During the last three years,the government invested a total of Kshs 840 million intothe rehabilitation of the Kenya Meat Commission (KMC) and procurement of livestock from farmers.The revival of theKMC in June 2006,the operationalisation of the Landhies Road Depot in Nairobi and the Kibarani factory in Mombasain 2007 have all ensured that livestock keepers are increasingly having a ready market for their livestock.In addition,efforts are being made for the construction of satellite abattoirs in Isiolo and Garissa and rehabilitation of a slaughterhouse in Wajir at a total cost of Kshs 170 million.These are further expected to enhance employment and businessopportunities in the ASALs.In addition to the traditional commodity exports,the country ventured into external marketsfor beef products in the Middle East and Mauritius. Disease and Pest Control for Crops and Livestock: Disease and pest control in crops and livestock sub-sectors isbeing addressed through an integrated extension services and enhanced surveillance in collaboration with otherstakeholders.Outbreaks of major crops and livestock diseases were successfully contained during the last 5 years.The locust outbreak was quickly controlled in NEP before spreading to the South. Livestock Branding: During the last 2 years,the government identified a number of development interventions in theNorth Rift and Upper Eastern provinces aimed at improving the livelihoods of the pastoralists.Livestock branding andvaccination was one of the identified activities.A total of Kshs 75 million was used for branding activities in 2006/07FY in pilot districts where a total of 1.4 million heads of cattle were branded.A further Kshs 120,770,040 was releasedin 2007/2008 FY to complete the branding exercise in the pilot districts and extend the coverage to other cattlerustling-prone districts.This is expected to reduce cattle rustling and enhance traceability and promote livestock production and marketing. Food Security: Ensuring food security and eliminating hunger still remain a challenge for the country.More than 40per cent of the population lacks access to adequate food due to poverty.To deal with this problem,the governmenthas undertaken policy reforms to address poverty and food insecurity in a holistic manner.For instance,the FoodSecurity and Nutrition Policy (FNSP) has been finalised.One of the proposals in the policy is the development of aStrategic Food Reserve which will expand the current Strategic Grain Reserve to include other food commodities such as powder milk,rice,pulses,meat and a reserve (cash) fund.Over the next one year,the GCG is going to increase thecountry's Strategic Food Reserves from the current 4 million bags of cereals to 6 million bags.In addition,efforts havebeen made towards value addition including small scale processing of fruits and honey; detergent making andhousehold manufacture of body lotion and body oil.Production of traditional food crops have also been promoted toensure food security. Agricultural Financial Services: Access to financial services by farmers has increased significantly over the years.This is evidenced by the data from financial institutions such banks,the Agricultural Finance Corporation (AFC) andSACCOs which mobilise huge financial resources some of which is directed towards agriculture activities.Following itsrevival,AFC has increased its loan disbursement to farmers from Kshs 90.7 million in 2002/03 to Kshs 1.79 billion in2006/07.• Irrigation: It is estimated that intensified irrigation can increase agricultural productivity four-fold and depending onthe crops,incomes can be multiplied ten-times.Experience from other countries shows irrigation is a major driver ofagricultural productivity.Some water deficit countries have proved that co-ordinated development and utilisation ofirrigation does transform economic development.The Grand Coalition Government will in addition to rain fedagriculture promote irrigation based farming for both food and cash crops.Funding of irrigation and drainage hascontinued to grow over the period 2003-2007.As a result,most of the districts have implemented an average of twoprojects per year.For example,87 new schemes were constructed increasing the area under irrigation by 8,200hectares,16 irrigation schemes rehabilitated,131 new irrigation and drainage schemes identified,12,409 irrigationfarmers trained on irrigation water management,and 105 Water User Associations(WUAs) formed.• Delivery of Extension Services: Following the strengthening of agricultural extension service delivery thenumber of farmers reached per year increased from 1.0 million in 2003 to 2.1 million in 2007.Over the MTPperiod,measures will be taken to revamp the key extension institutions of Agricultural Training Centres (ATCs) and Agricultural Mechanisation Stations (AMSs) through rehabilitation and upgrading of facilities and equipment.• Agricultural Inputs: The use of inputs such as fertilisers,purchased seeds,and animal feeds has increasedsteadily over the last five years.The annual fertiliser demand increased from 329,449 tons in 2002/03 to 410,214tonnes in 2006/07.Production of certified seeds for various crops increased from 12,998 tons in 2002 to 34,682tonnes in 2006.The volume of imported seeds increased from 1,217 tons to 4,773 tons over the same periodrespectively.Prices of inputs increased steadily during the same period negatively affecting the returns to farmers. 4.2.2Emerging Issues and Challenges The recent 2007 post-election political developments in the country have disrupted normal economic activities in manyparts of the country.The agricultural sector has not been immune to these economic disruptions as evidenced by lowerfarm production figures reported in the first two months of 2008.This has been compounded by increasing prices ofinputs especially fertiliser prices which could further affect agricultural productivity,and in turn food security efforts inthe short run.Moreover,key agro-processing industries have also reported difficulties in accessing key inputs andhence lower outputs during the same period.Other emerging challenges that will have a bearing on the sector are theescalating energy prices,increasing commodity prices in the world market and increased competition from otheragricultural producing countries.The agriculture sector is constrained by a number of factors such as:• High cost of inputs: This results in low application of fertiliser and certified seeds which thereby affectagricultural productivity; Land use in agriculture: There has been over-subdivision of land into uneconomic units in some parts of thecountry while other land parcels in the possession of large scale farm holders remains unutilised;• Limited application of agricultural technology and innovation: Many farmers lack adequate capital to adoptto new technology or apply recent innovations in agricultural research;• Weak farmer institutions: A number of agricultural cooperatives,have experienced mismanagement therebyresulting in the collapse of many of such institutions;• Poor livestock husbandry practices; • Limited extension services: This has resulted from an over-reliance on public extension services,coupled withlow funding of the service;• Over-dependence on rain fed agriculture: This implies that any poor weather condition will inevitably causeheavy drops in production,famine and death of livestock;•Inadequate exploitation of Value Addition.This confines Kenya to low value of exports.Lack of Value Addition alsorobs Kenya of the opportunity to increase the shelf life of products;• Inadequate Credit facilities: Due to insufficient funds,many farmers have no funds to invest in improving theiragricultural productivity;• Low marine fish exports: There has been low exploitation of the potential of the EEZ resulting in low sea fishexports.Moreover,there is inadequate capacity to monitor unauthorised exploitation of the EEZ.The above challenges are further exacerbated by a weak institutional and legal framework; poor post harvest handling;lack of market driven production; poor handling of the supply chain of the finished products; and limited access ofBusiness Development Services (BDS) by farmers. 4.2.3Projects and Programmes In an effort to reverse the decline,and fastrack growth efforts within the Agriculture sector,the following projects andprogrammes will be undertaken: One Year Recovery Programmes •Continue meeting the basic food needs of resettled families and any IDPs who might be in the camps;•Fast track efforts in supporting the resettled families as well as the neighbouring families with farm inputs suchas seedlings,fertilisers and equipment;•Enhance peace building,reconciliation and provide psycho-social support in order to rebuild trust among thewarring communities and in particular,farming and pastoralist communities;•Strengthen the capacity of agriculture-based institutions and support farmers through concessionary loans;•Replacement of damaged government equipment such as motor vehicles and re-building of damaged office blocks;•Develop and support business development services to link affected farm families,fishermen,livestock farmersand traders with financial institutions and access to market;•Double the Strategic Grain Reserves from the current 4 million bags to 8 million bags in the next one year andexpand it to include other food commodities such as powdered milk,rice,pulses,and a reserve (cash) fund. Other Programmes for 2008 - 2012 •Enhance knowledge and skills of farmers and extension staff through training and sharing knowledge etc.Thiswill be aimed at empowering farmers to take and appreciate farming as a business;•Transform agriculture,from a low-income,low-efficiency and low technology sector into a vibrant modern sectorsupporting value-addition through scientific and technological innovation,improved extension services,credit and insurance programmes.This will be complemented by the establishment of more agro-processing industries inrural areas in addition to the urban ones;•Enable Kenya to become a regionally and internationally competitive provider of agricultural products,by raisingthe quality and supply of these good,as a way of increasing producer incomes and quality of life;•Support the establishment of crop and livesock insurance scheme;•Exploit the agriculture potential in ASAL areas by putting an additional 600,000 hectares under irrigation.Specifically,the amount of land under irrigation will be increased by 30 per cent by establishing additional 25small-scale irrigation schemes throughout the country and several large-scale irrigation schemes mainly in theTana River,Athi River,Mwea,Yatta,Nyando,and Nzoia basins;•Enhance the capacity of Districts in food security and livelihood assessment,to equip them with skills oncontingency planning,early warning system and response;•Enhance data collection,analysis and dissemination including sharing among key stakeholders;•Enhance monitoring and evaluation at all levels;•Work towards making fertiliser and other key inputs affordable to poor farmers; and•Initiate privatisation of commercial parastatals such as the sugar companies. Flagship projects for 2008 - 2012 Enactment of the Consolidated Agricultural Reform Bill: The legal framework will need to be reviewed,updatedand harmonised to rationalise contradictory development,regulatory,licensing,processing,lobbying and marketingroles of agricultural parastatals.The bill will also set up industry development funds and dispute resolutionmechanisms.The regulatory agency to be set up will balance the needs of producers,processors and consumers.Thereforms will increase operational efficiency,reduce marketing costs and increase the role of producers in theseorganisations.The legal reforms will lay the basis for the implementation of institutional reforms necessary to achievethe Vision 2030 goals for the sector. Fertiliser Cost-reduction Investment: This project will be implemented through a three-tiered fertiliser cost-reductionprogramme involving purchasing and supply chain improvements in the market for this input and the blending and localmanufacturing of fertiliser.Working with the private sector and reviewing farmers institutions' ability to import anddistribute fertiliser in bulk,will be the initial steps in the programme.The fertiliser cost reduction project/programme willrequire capacity building of farmers and farmer's organisations; efficient fertiliser ordering and distribution process,andprovision of warehousing to address the inefficient and costly fertiliser importation and distribution structure that iscurrently in place.Efforts to reduce costs of other inputs will follow. Establishment of Disease-Free Zones: This will involve improvements in vaccination and disease control through astrengthened veterinary department,movement controls,and investments in livestock breeding,range improvements,andmarketing infrastructure to raise the quality,quantity and value of processed meat animals that Kenya can export.Kenya'smilk exports will also benefit from enhanced disease control measures in the highlands. Land Use Master Plan: A National Land Use Master Plan will be developed with Agriculture Land Use Master Plan aspart of it.The Master plan will enable efforts targeted at efficient utilisation of all forms of land. ASAL Development Project: This project will initially be implemented in the Tana and Athi River basins to bringbetween 600,000 - 1,000,000 Ha.under irrigation. Key Supportive Initiatives The flagship projects enumerated above will be supported by the following nine key supportive initiatives: Agricultural research and development: enhanced collaboration and coordination among research and educationinstitutions to increase efficiency and create stronger linkages between researchers and farmers.Increased emphasis willbe laid on research on irrigation,biotechnology and products suitable for production in the ASALs.Increased investmentin agricultural research is expected to contribute significantly to reducing the cost of food production in Kenya. Extension services: a more holistic approach will be adopted to agricultural extension that involves government alongwith the private sector,NGO's etc in provision as well as more extension linked to markets and value addition will beadopted.Technologies to reduce post harvest losses and support value addition will also be introduced and promoted. Transformation of parastatals and producer organisations: to upgrade the performance of agricultural parastatals,commercial ones will be privatised; government will strengthen and consolidate regulatory functions; and producers willbe given increased voice and participation in the governance of industry bodies aiming to develop sectors andcommodities.Government will help strengthen producer organisations in commodities where they are weak or nonexistent.Formation of these organisation will particularly be encouraged in marketing of inputs. The Cooperative Sector: strengthening governance and technical capacity of cooperatives for better performance andto be able to play the important roles laid out for them in connecting farmers to markets in the wholesale and retailsection of Vision 2030 .The government will also ensure better enforcement of the Cooperative Act,and encouragementof community based organisations and groups to transform into cooperatives. Seed and breed quality improvement: for traditional crops and animal species.High yielding but disease resistantvarieties will be a priority in the pastoral and other dry areas.The government will intervene towards multiplication ofquality crops seeds such as sorghum,legumes,millet,cassava,potatoes,among others,that cannot attractcommercial seed companies. Test,promote and distribute low-cost irrigation technology: This will be carried out in large schemes on the Tana,Nyando and Nzoia rivers as well as small scale schemes and establishment of livestock feed reserves Undertake livestock initiatives: This will include livestock breeding programmes; range improvements,improvingaccess to veterinary drugs and artificial insemination services,livestock marketing; value addition; establishment oflivestock feed reserves and infrastructure development. Reorganisation of agricultural investment and export promotion agencies; Plan for development of identified idle lands in high potential and ASAL areas; Legal,regulatory and institutional reforms; Improving access to farm inputs: post harvest handling,and efficient management of the supply chain,valueaddition,Business Development Services and access to markets; Promoting the growing and consumption of traditional foods: This will incorporate them into the national foodsecurity programme; Fast track efforts towards empowering farmers through participatory grassroots stakeholders' forums: Such areas as technologies and technology uptake,provision of credit inputs,post harvest handling,supply chainmanagement and access to markets; Agricultural Financial Services: Measures will be taken to modernise and encourage farmers to adopt agriculture asa business.Institutions and mechanisms for supporting agriculture as a business,including access to financialsservices,agricultural information services will be enhanced. 4.3Wholesale,Retail and International Trade "A Formal Sector that is Efficient,Multi-tiered,Diversified in Product range and Innovative" Trade sector has been identified to play a crucial role towards attainment of national development objectivesincluding the Millennium Development Goal (MDG) number one on Eradicating Extreme Poverty and Hunger; andgoal number eight on Developing Global Partnerships for Development.Trade sector comprises five main economicareas namely:distribution and wholesale trade,retail trade,international trade,informal trade,trade in services andelectronic trade (e-trade).Wholesale and Retail trade is one of the key sub-sectors in the economic development agenda of Kenya which isexpected to expand substantially as the economy moves towards a 10 per cent growth target.Informal and formaltrade in Kenya accounts for approximately 10 per cent of GDP and 10 per cent of formal employment.Wholesale,retailand international trade has been among the most rapidly-expanding sub-sectors of the economy since the introductionof trade liberalisation in the 1990s.Formal trade tends to be more efficient and provides more permanent high quality jobs,which is what most Kenyan job seekers require.Most of the employment in trade is found in the informal sub-sector,which refers to businesses that are not registered bythe Registrar of companies.This sub-sector is characterised by ease of entry and exit; reliance on indigenous resources;family ownership; small scale operations; labour intensive and adaptive technology; skills acquired from and outside of theformal sector; and unregulated and competitive markets,among others.These enterprises are found in every part of thecountry and have great potential for creating a variety of jobs while generating widespread economic benefits.On the other hand,international trade comprising both import and export of both goods and services is crucial as aninstrument for economic growth.Kenya's exports remain concentrated both in traditional market destinations andprimary products,with Common Market for Eastern and Southern Africa (COMESA) being the leading marketdestination for Kenyan products,accounting for an overall market share of 69.7 per cent in 2006.Other marketdestinations for Kenya products include the East African Community (EAC),European Union (EU) among others.Lastly,Trade in services refers to the sale and delivery of intangible product called a service between producer and consumer.Recent trends show faster growth in trade in services and the significant role it plays in the national economy. 4.3.1Situation Analysis The contribution of the wholesale and retail trade to the GDP grew by an average of 10.3 per annum between 2003and 2006.The value of domestic trade grew at an annual average of 16.5 per cent over the same period.Currently,trade in services accounts for 60 per cent of the GDP,and 68 per cent of total wage employment in Kenya.The informalsector provided 78 per cent of total employment and contributed 87 per cent of new jobs created in 2005/06.It isestimated that the sector contributes approximately 18.4 per cent to the GDP.The value of exports of goods and services rose from Kshs 244.5 billion in 2002 to Kshs 412.4 billion in 2006.Although the export market remains dominated by primary commodities,new sectors have emerged such as Horticulture,particularlycut-flowers; and fish and fisheries sectors are now major export earners and have created several job opportunities.During the ERS period,the National Export Strategy (NES) whose focus was on export diversification was initiated andimplemented.The Strategy made it possible for exports to grow at 11.4 per cent between 2003 and 2006 and hencesurpassing the planned annual target of 5.7 per cent.Again during the same period,partnership with the private sectorwas expanded and strengthened following which several trade fairs,trade missions and market surveys weresuccessfully undertaken.In addition,the Private Sector Development Strategy (PSDS) whose objective was to catalysegrowth and competitiveness of the sector was developed and launched in 2006.In 2005,the Investment Promotion Act was enacted establishing the Kenya Investment Authority,a One-Stop Shop forboth local and international investors.In addition,the government streamlined the business regulatory environment tofurther improve Kenya's investment environment to spur growth of businesses and investments.Consequently,adetailed review of 1,325 trade licenses which resulted in the rationalisation of 694 licenses,elimination of 424 licensesas well as the simplification of another 607 was successfully undertaken.The regulatory reforms,led to the formationof the business regulatory business unit (BRRU),a custodian of a e-Registry of licenses,both which were launched inNovember 2007.The unit is expected to deepen business regulatory reforms in Kenya easing the cost of investmentin the country.Further,an Anti-counterfeit Goods Bill,which will be enacted by the 10th Parliament was drafted.Inaddition,Kenya under the EAC configuration signed the Interim-EAC-EU Economic Partnerships Agreement (EPA) withthe European Union (EU) in 2007 to sustain the preferential market access to the EUmarket until a final agreement isreached. 4.3.2Emerging Issues and Challenges Post Election Violence: Following the post election violence,several business stalls,shops,supermarkets and kioskswere vandalised or gutted down by fire in Nairobi,Nyanza,Rift Valley and Coast Provinces.Some parts of CentralProvince and Western province were also affected.These slowed down or reversed the growth of businessesparticularly the small and medium enterprises (SMEs). Weak Business Regulatory Framework: this is as a result of high cost of doing business,centralised businessregistration,influx of counterfeit,substandard and contraband goods in the market,inappropriate trade regulatoryregimes,Furthermore,most business enterprises are highly fragmented and operate informally and hence hashindered their vertical growth to link them with mainstream businesses. Infrastructure: Majority of traders operate from temporary premises or work sites with no basic facilities andamenities.There are poorly maintained roads and general environment within the market centres,inadequate watersupply,Lack of and/or high cost of energy,Inadequate and poorly serviced business premises.In addition,the sectoris faced with inefficiency in the supply chain due to poor infrastructure,highly fragmented distribution and retail outletsleading to wastages and price escalation of goods and services. Market Access: Constraints to market access include; weak mechanisms for implementing and enforcing the 30 percent preferential access to public procurement,lack of trade support infrastructure such as trade centres orwarehouses in priority export markets,low access to international markets due to stringent standards,Inadequatediversification of exports and value addition of products due to tariff peaks and escalation of tariff barriers and technicalbarriers to trade despite continued participation in the multilateral,regional and bilateral trade agreements,decliningvalue of preferential trade schemes as a result of trade liberalisation,lack of comprehensive trade information on theexisting and,emerging markets ,market and product diversification and inappropriate backward and forward linkages. Business skills development: Majority of traders are not able to expand,and sustain local and international businessopportunities due to lack of sound managerial skills and exposure to international best business practices; andinadequate understanding of legal requirements relating to international contracts and procurement requirements. Low utilisation of Information and Communication Technology (ICT): In spite of the opportunities associated withthe use of ICT,the level of its utilisation in the sector is low.This has hampered adoption of e-Trade as a platform forpromotion of trade particularly trade in services that is highly dependent on the development of ICT. Low capacity in Market development :The growth and development of trade depends on the existence of a vibrantmarket for products and services.However,the market is hampered by low demand,unfair competition fromcounterfeit,substandard and contraband goods.Moreover,linkages between the informal traders and the formalsector are either weak or non-existent. Limited Access to Finance and Credit: Access to affordable trade finance and credit facilities are crucial to thegrowth and development of wholesale and retail trade.Further,limited access to affordable credit facilities,guaranteesand credit rating agencies,venture capital coupled by limited financial services in rural areas,and requirement forcollaterals to access credit have all continued to inhibit the expansion of the sector. HIV and AIDS: HIV/AIDS remains a challenge to trade development in Kenya due to high morbidity and mortality ratesand slows the growth of businesses as a result of high expenditures on treatment rather than business expansion. 4.3.3Projects and Programmes for 2008 - 2012 Flagship projects,one year recovery strategies and programmes have been identified for implementation in the initialyear and the entire MTP period.They are therefore expected to accelerate expansion of trade in the short and mediumterm respectively as shown below: One Year Recovery Strategy •Commission a survey to determine the number of establishments affected by the post election crisis;•Re-build affected business infrastructure and restore investor and donor confidence;•Scale up linkages and networks with Kenyans in the Diaspora;•Initiate and support a Marketing Strategy for the sector;•Facilitate the establishment of industrial clusters as seedbeds for innovation,business incubation and businessdevelopment support services;•Encourage establishment of procurement programmes within KAM,KNCCI and KEPSA;•Create a conducive licensing and regulatory framework and decentralise these services to the district level; and•Streamline and integrate informal sector into the mainstream production system. Flagship Projects for 2008 - 2012 •Build one free trade port in Mombasa;•.Create at least 10 hubs and 1000 -1 500 Producer Business Groups with a pilot project in Maragua to be extendedto other regions;•Build at least 10 tier one market with a pilot project in Athi River,and construct whole and retail hawker's marketin selected urban areas;•Develop and institutionalise capacity building and training programmes on technology and business procurementnegotiations skills for the traders associations and their members; Business linkages and subcontracting programme through Public Private Partnerships (PPP);•Support and promote the development of cooperative Organisations to market their produce directly,therebyshortening supply chains,achieving economies of scale and reducing consumer prices while increasing producerearnings; and•Establishment and strengthening of informal traders associations to form SACCOs for enhancing savingsMobilisation in order to provide affordable finance and enhancement of management of the existing SACCOs. Other Programmes for Implementation in the Period 2008 - 2012 •Training members of informal traders' associations on procurement procedures;•Strengthening capacity of the institutions that deal with verification and certification of standards to meetinternational standards,improving packaging and develop brands,establishing marketing and distributionchannels in foreign markets,strengthening e-business capacity for enterprises,establishment of an exportdevelopment fund and guarantee scheme to cover risks faced by exporters,and facilitate export marketdevelopment;•Creating conducive licensing and regulatory framework by decentralisation of business registration to the districts.•Establishment of markets and distribution channels in foreign markets;•Establishment and strengthen export credit guarantee schemes to cover risks faced by exporters,and facilitateexport market expansion;•Strengthen capacity of the institutions involved in trade development and negotiations;•Establish incentive programmes such as export performance award to facilitate penetration into new markets.•Establish commercial offices,exhibition centres and warehouses in the identified strategic foreign markets suchas COMESA and Asian Markets to increase visibility of Kenya's products;•Undertake market surveys and develop networks to provide trade intelligence in the targeted markets;•Establish a network with Kenya's Diaspora to assist in marketing Kenya's products;•Establish centre for product development and adaptation to facilitate graduation to higher value added activitiesthrough branding,adoption,packaging and new designs;•Establish an export development fund to promote product development,value addition,market development anddiversification;•Establish a coordinated framework to facilitate development and promotion of targeted service sub-sectors;•Develop an E-Trade policy and integrate it in all public and private sector institutions of higher learning and tertiarycolleges;•Review the legal and institutional frameworks relating to market infrastructure development;•Strengthen quality assurance institutions to ensure that imports,exports and all goods sold in Kenya are to thehighest international standards and prevent dumping of products; 4.3.4Policy,Legal and Institutional Reforms The government will initiate key reforms to strengthen the already existing legal and institutional framework byaddressing the following key areas:•Fastrack the development and implementation of the Public Private Partnership Policy;•Fastrack the establishment of decentralised/ networked one-stop shop for registration licensing and taxation;•Enact a Trade Development Act to provide an institutional framework for monitoring of the trade sector;•Promote formalised business linkages between traders and manufacturers;•Establish Credit guarantee schemes from the mobilised savings by micro-finance institutions;•Establish a mechanism to monitor trade trends,and negotiations skills as well as strengthen trade supportinstitutions (TSIs) to analyse and to disseminate trade information to exporters; Establish marketing and distribution channels in foreign markets;•Establish an Exports Development Fund and guarantee schemes to cover risks faced by exporters,and facilitateexport market development;•Establish Commercial offices in the identified strategic markets;•Establish a network with Kenya's Diaspora to assist in marketing Kenya's products; and•Formulate a National Market development Policy. 4.4Manufacturing "Robust Diversified and Competitive Manufacturing Sector" The role of the manufacturing sector in Vision 2030 is to support the country's social economic development agendaby creating jobs,generating wealth,and attracting Foreign Direct Investments (FDI).In addition,the sector will continueto provide impetus towards achievement of the Millennium Development Goals (MDGs) in both the medium and longterm,particularly goal one on Eradication of Extreme Poverty and Hunger and goal eight on Global Partnerships forDevelopment.Over the Medium Term Plan (MTP) period 2008–2012,the overall goal of the sector is to increase itscontribution to Gross Domestic Product (GDP) by at least 10 per cent per annum.To achieve this,the followingobjectives will be pursued:•Strengthen production capacity and local content of domestically-manufactured goods;•Increase the generation and utilisation of Research and Development (R&D) results;•Raise the share of products in the regional market from 7 to 15 per cent; and•Develop niche products for existing and new markets. 4.4.1Situation Analysis The implementation of the Economic Recovery Strategy (ERS) 2003-2007 resulted in improved performance in themanufacturing sector.The contribution of the sector to GDP has remained at about 10 per cent over the ERS period.The sector grew by an annual average of 5.5 per cent between the period 2003 and 2007.In 2007,1.88 million peoplewere employed in both the formal and informal sectors.Employment within the formal manufacturing sector grew byan annual average of 2.6 per cent between 2003 and 2007.The proportion of employees in formal manufacturing tototal employees in the sector averaged 15.7 per cent between 2003 and 2007.During this period,the investment code was developed,through the Investment Promotion Act of 2004,to improve theinvestment environment.Similarly,the Kenya Investment Authority Act was enacted in 2006 to provide a 'one-stop-shop' for licensing and registration of businesses.In addition,8 of the identified 52 sites were established withinvarious local authorities to facilitate development of basic infrastructure for Small,and Medium Enterprises (SMEs) toserve as incubators.The Private Sector Development Strategy (PSDS) was formulated in 2006 to promote theparticipation of the private sector.Partnerships with the private sector have been enhanced through formation of SectorWorking Groups (SWGs),inter-ministerial/Stakeholders forums and task forces.Further,the National Exports Strategy (NES) was formulated to improve competitiveness of the sector.NES has assisted indeepening of markets for manufacturers in traditional markets and expansion into new markets.In implementing NES,thegovernment and United Nations Industrial Development Organisation (UNIDO) implemented Phase 1 of the Kenya IntegratedProgramme (KIP) whose objective was to help increase productivity,develop productive capacities in the Leather,Apicultureand Fish processing with high export potential.The programme that ended in 2006 resulted in a National Study onapiculture; study report on value chain analysis of the Leather and Leather products and strengthening some relatedinstitutions; and regulations on quality and safety of fish products as well as capacity building of stakeholders in the sector. This has increased production,improved earnings and conformity to international standards in the identified sectors. A National Industrial Policy was prepared in line with the Vision 2030 to guide the development of the manufacturingsector which takes over from the Sessional Paper No.2 of 1997 on Industrial Transformation to the Year 2020.Similarly,a Master Plan for Kenya's Industrial Development (MAPSKID) has been developed and will provide the roadmap fordevelopment of the industrial sector.The priority sectors identified in the MAPSKID include Agro-processing; Agro-machinery; Electrical and Electronics/ICT.In addition the Sessional Paper No.2 of 2005 on Development of MSEs wasprepared to provide a framework to stimulate the growth of MSEs and contribute towards employment creation andpoverty alleviation. 4.4.2Emerging Issues and Challenges Post Election Violence: The post-election violence,witnessed during the first two months of 2008,adversely affectedthe sector by disrupting the whole production and supply chain.At the same time,there was destabilisation of thefactors of production that include land,labour and capital (stock and equipment).Access to raw materials and supplyof goods was disrupted.Investors and the labour force were also affected due to destruction,burning of businessesand labour displacement from the affected areas leading to reduced capacity utilisation.Fuel and electricityinterruptions further impacted on the sector negatively.As a result of security concerns,most manufacturers wereforced to hire extra security and this increased the production and distribution costs.The perception of Kenya in theworld as a regional economic hub was severely damaged resulting to low investor confidence. Low Value Addition and Narrow Export Base: Most industries are still engaged in the production of low value-addedand limited range of products due to limited technological capability and limited information on international tradeopportunities.These factors have contributed to limited scope for product diversification and expansion of exportsbase.The narrow product range and focus on few markets have restricted the growth of Kenya's exports.This hashindered expansion of manufacturing activities.Kenyan industries have not effectively kept pace with changingconsumer demands and level of competition international markets. Underdeveloped and/or Dilapidated Transport Network: The poor and dilapidated state of infrastructure in Kenyahas led to low productivity,high production and distribution costs and uncompetitive products and services.Further,the road networks in Kenya are concentrated in a few urban areas,with limited feeder roads in regions with resourcesendowments.This has resulted in the agglomeration of industries in areas with good road networks thus furthercreating disparities in regional industrial development. Inadequate,Costly and Unstable Supply of Energy: The cost of production is high due to inadequate and costlysupply of energy which is higher than main competitor countries.In areas with abundant resources,investors arecompelled to provide alternative sources of power supply or relocate to areas where power is already available at theexpense of incurring additional transportation costs.The unstable power supplies have caused investors to installpower regulators and/or large stand-by power generators at the expense of investment in actual productive activities. Low adoption of Information and Communication Technology (ICT): The low levels of penetration and high cost ofICT infrastructure has hindered access and usage leading to low access to markets and technological information andincreased costs of marketing and communication. Overlaps and ambiguity in Mandates and Functions: Lack of clear boundaries in the institutional mandatesand functions have caused distortions in the value chain,weak sectoral policies,overlaps and conflicts in policyimplementation.For example,sugar milling,tea and coffee processing are manufacturing activities currentlyintegrated in agricultural production under the Ministry of Agriculture while fish and fish products,meat,meatproducts and leather processing are also manufacturing functions under the Ministries of Livestock and Fisheries Development.These ambiguities have been detrimental to the development of the sector in terms ofimprovement of manufacturing and marketing efficiencies. Low Technology,Innovation and R&D Uptake: The culture of embracing technology,innovation and R&D in thesector is low and hinders its growth.In addition,there is lack of institutionalisation of incentives for promotion andefficient use of existing knowledge,creation of new knowledge and flourishing of entrepreneurship activities which willincrease the capacity and competitiveness of local enterprises.Low capacity for Intellectual Property Rights is anotherdisincentive to innovation in the manufacturing sector. Weak Legal,Regulatory and Institutional Frameworks: Registration of businesses (incorporation/business name) isstill centralised in Nairobi.Though efforts have been made to simplify the local authority licensing through the singlebusiness permit,the permits are still costly and encumbered with inappropriate implementation mechanisms.Inaddition,there is lack of capacity within the judiciary to handle e-trade related litigations. Influx of sub-Standard,Counterfeits and Contraband Goods: The entry into the local market of sub-standard,counterfeit and contraband products has serious impact on the manufacturing sector.While manufacturers spendmoney in advertising,the presence of counterfeit goods is a major impediment hence reducing their market share.Counterfeit trade has also discouraged innovation efforts and reduced government revenue base.Further,substandardand counterfeit goods are a health-hazard to the consumers.. Inadequate capacity to meet Quality and Standards Requirements: Rapidly changing consumer needs,preferences and quality requirements,both locally and internationally are creating a strain for many Kenyanmanufacturers,especially the MSMEs.ISO Certification can guarantee international competitiveness.However,thecapacity of many Kenyan manufacturers to undertake and implement ISO Certification requirements is low.In addition,the capacities of certifying Organisations are weak and the process of certification is still too costly to many firms. Limited Access to Financial Services: Lack of access to formal financial services such as credit products and tradeguarantees have inhibited the competitiveness and growth of MSMEs both in rural and urban areas.In addition,insurance premiums are generally too high and unaffordable to most businesses.The current financial productsavailable are mainly short and medium terms loans; however,industrial development requires long term financing.Thishas limited the availability of finance for industrial development.Besides,the level of interest rate spread is high as aresult of provision for Non-Performing Loans and administrative costs.This has increased the cost of doing business. Limited Production and Managerial Skills: Strategic management and technical skills are not developed in a well-structured and coordinated manner and are virtually absent in MSMEs.There is also a mismatch between the availabletechnical skills and market demands due to poor linkages between training institutions and the industry.ManyOrganisations have not yet appreciated productivity improvement strategies such as ISO,Kaizen,5S (Separating,sorting,shine,standardising,sustaining),5C (Classify,configure,check,conformity,customise) energy efficiency and other relatedactivities.Within the MSMEs,productivity improvement strategies are still unknown.Many Organisations still focus on costreduction measures such as downsizing,and elimination of non-core services rather than productivity improvement. 4.4.3Projects and Programmes for 2008 - 2012 One Year Recovery Strategy • Emergency Business Recovery Programme: An Emergency Business Recovery Programme will be set upwithin the framework of the Private Sector Development Strategy in order to support manufacturing entities thatwere adversely affected by the post election crisis after a proper identification process has been carried out. 77 THE ECONOMIC PILLAR • Promotion of small scale firms: Issues of stagnation of small scale firms,securing of property rights andsecurity of tenure,costs associated with entry,expansion and exit regulations,notably securing a license,tax andlabour law compliance will be addressed as a matter of priority in order to ensure that in the long term thesebusinesses graduate to large formal companies. Flagship Projects for 2008 - 2012 Development of industrial and manufacturing zones: The initial pilot for the Special Economic Cluster (SEC) will beset up in Mombasa to allow for easy importation of necessary raw materials and exporting of finished goods.Theproject will include an agro-industrial zone incorporating activities such as blending and packaging of fertilisers,teasand coffees,and a consolidated meat and fish processing facility to encourage growth of offshore fishing.The secondSEC will be located in Kisumu to allow for access to regional markets and availability of limestone to support cement,chemicals and metals industries; agro-processing through increased horticultural production along the lakeshore. Development of at least five SME industrial parks and specialised Economic Zone in key urban centres: A pilotmetal SME park will be located in Nairobi due to the proximity to most important markets.A pilot agro-processing SMEpark will be located in Eldoret because of the location in high potential agricultural area and access to an airport.A secondagro-processing SME park which targets processing of fruit juices and vegetables oils will be located in Mombasa. Another SME park will be located in Kisumu for agro-processing of vegetables,horticulture,fish processing,and fruitprocessing.The fifth SME Park will be located at Nakuru for meat processing (with tannery). Other Programmes The following Programmes have been identified in addition to the flagship projects for implementation in the period2008 to 2012:•Product and market diversification and development programmes;•Research development and commercialisation programmes;•Create an MSME research and development,risk and venture capital fund;•Create a Business and Technology Incubation Programme to include an incubation Fund;•One village one product; and•4 K (KEBS,KIRDI,KIPI,KNFJKA) MSE 2030 initiatives Project. 4.4.4Policy,Legal and Institutional Reforms The policy and legal reforms to be undertaken during the 2008-2012 period include;• Legal Institutional Framework: Enact a legal and institutional framework to harmonise regulations dealing withmanufacturing and other sectors and eliminate overlaps in functions across Ministries dealing withmanufacturing.This is to be done by enactment of a National Industrial Development Act.• Counterfeits and Contraband goods: Fast track the enactment of the Anti-counterfeit Act.• Appropriate Regulatory Framework: rationalise business licensing and an efficient regulatory framework tofacilitate doing business.Further there will also be need to harmonise the operations of the regulating bodieswithin the East African Community (EAC) region particularly with regard to product standards.• rationalise Taxation and Eliminate Duty Anomalies: Simplify tax administration to be responsive to the changing business environment.Initiate continuous review of the EAC commodity classification to ensure thatthere are no duty anomalies.• Competition Law: Review of the Monopolies and Price Control Act (1989) will be fast tracked with a view tostrengthen the institutional framework as well as providing for close consultation between the sector regulatorsand the Commissioner for Monopolies and Price Control on all matters appertaining to competition.Similarly,alegal mechanism will be provided for close consultation between the sector regulators and the Commissioner forMonopolies and Price Control on all matters of competition.• Consumer Protection: A Consumer Protection Act will be enacted to create a national consumer protection bodyto undertake consumer advocacy,education and ensure effective consumer protection. 4.5Business Process Outsourcing "To be a top off-shoring destination in Africa" Business Process Outsourcing (BPO) is an emerging and growing sector expected to become the sector of choice foremployment among the youth and young professionals.The country will thus quickly establish the necessary capacityfor BPO to flourish and catch up with other destinations in Africa.Business Process Outsourcing (BPO) involves thetransfer of non-core business processes along with the associated operational activities and responsibilities to a thirdparty with at least a guaranteed equal service level. 4.5.1Situation Analysis,Emerging Issues and Challenges In Kenya,the BPO sector is a small,new,but growing part of the economy.It currently account for less than 0.01 percent of GDP,500 seats and 1,000 employees.In a day,one seat can support more than one worker depending on thenumber of shifts per day.The global BPO sector however is large and growing rapidly.Kenya plans to take a portion ofthis market.In doing so it has a comparative advantage due to quality education,volume of people trained in variousforeign language skills and a time zone that aligns her to those of major global economies.In this regard,the sectorwill be targeted to ensure Kenya diversifies her service and product offering in the global market.The government has in the past undertaken various measures to improve the BPO sector performance.Key amongthem is development of a comprehensive national ICT policy launched in 2006 with a main objective of making Kenyaan ICT hub and a premier location for Business Process Outsourcing (BPO) in Africa,the establishment of the ICT boardand the launching of the East African Marine Cable Systems (TEAMS) project among others.Key challenges facing the sector are:•Poor telecommunication infrastructure leading to high costs.Data transmission costs in Kenya are three timesmore expensive than those of its competitors;•The high cost and unreliability of energy supply.For instance,energy costs are twice as expensive as those ofother BPO destinations,such as India and the Philippines.•Lack of dedicated BPO facilities which weaken the attractiveness of Kenya as a primary BPO destination.•Inadequate supply of necessary skills.•Poor local supplier base of the necessary hardware and software•No targeted incentives for BPO apart from those at the standard Export Processing Zones (EPZ) 4.5.2Programmes and Projects for 2008 - 2012 Since ICT infrastructure is important for the Business Process Outsourcing (BPO),there is a need to modernisetelecommunications infrastructure and provide internet access to majority of citizens.However,this is only possible if theeconomic,political and social environment is conducive.Specifically the government will undertake to complete theTEAMS,National Optic Fibre Backhaul Initiative (NOFBI),and Kenya Transparency Communication InfrastructureProgramme (KTCIP) projects and also empower the ICT Board to develop content and market Kenya as a BPO destination.The country will strive to increase its infrastructure and connectivity to the international market,and put in placemeasures to improve technical skills.To realise the five-year goal of creating more than 20,000 direct BPO jobs and ofincreasing its contribution to GDP by Kshs 10 billion the projects specified under the ICT foundation sector will beimplemented.In addition and more specifically,a BPO park will be established and supportive initiatives will beimplemented within the period 2008-2012; Establishment of a BPO Park A state-of-the-art BPO Park will be constructed at Athi River Export Processing Zone.The aim is to provide superiortelecommunications infrastructure,easy access to international transport facilities,and affordable and readily availableenergy which are critical for a competitive BPO industry. Marketing campaigns Undertake study to determine the existing opportunities and proactively promote BPO in the targeted geographicalmarkets.This will be done through developing and launching a focused marketing programme through the country'sforeign missions,trade commercial attaches and media. Training Programmes Targeted training programmes around primary processes (e.g.customer contact) and industry specifics (e.g.back-office data entry within financial services) will be conducted to build the required quality and size of the talent pool.Best practice processes and culture will also be cultivated. BPO Incentive Framework A comprehensive set of incentives will be designed and implemented to improve the attractiveness of Kenya as a BPOdestination and to encourage investments in this field.This therefore calls for the development of related incentiveframework.The framework will define the kind of incentives to be offered to the BPO sector,the stages of theapplication of the incentives,and the period in which it is to be offered.One such incentive that is already in place isthe subsidisation of bandwidth costs through financing from the World Bank. 4.5.3Policy,Legal and Institutional Reforms BPO and Contact Centre (CC) Policy The BPO and CC policy will guide the operations of the BPO and CC and set a framework that will guide the growth ofthe BPO sector. 4.6Financial Services "A vibrant and globally competitive financial sector driving high levels of savings and financing Kenya's Investment need" A well-functioning financial system is critical to accelerating economic growth.It will also ensure macroeconomicstability as well as promote private sector development,which in turn will generate employment opportunities andreduce poverty.A sound financial sector will also encourage Foreign Direct Investment (FDI),safeguard the economyfrom external shocks as well as propel Kenya to become a leading financial centre in Eastern and Southern Africa. 4.6.1Situation Analysis The Financial Services Sector (FSS) in Kenya comprises of Banking,Insurance,Capital Markets,Pension Schemes andQuasi-banking institutions such as:Savings and Credit Cooperative Societies (SACCOs); Microfinance Institutions(MFIs); Building Societies,Kenya Post Office Savings Bank (KPOSB); Development Finance Institutions; (DFIs) andinformal financial services such as Rotating Savings and Credit Associations (ROSCAs). Banking Sector: The Central Bank of Kenya provides the overall supervisory and regulatory services to financial institutionsin the country.The banking sector had a buoyant performance over the ERS period (2003-2007) with assets increasing by99 per cent from Kshs 457 billion to Kshs 908 billion.During this period,banking institutions increased their credit extensionto the economy by Kshs 116.1 billion between the end of 2002 and the end of 2007; banking institutions introduced newfinancial products that are increasingly relevant to small enterprises and low income households; lending by banks toagriculture increased by Kshs 8.5 billion with some Kshs 1.7 billion being extended to medium and long-term borrowers;and interest rate spread has declined from 13.4 per cent in 2002 to 9.1 per cent in 2007. According to the Financial Access Survey 2007,by FSD Kenya,the banking sector serves only 19 per cent of Kenya'sbankable population with 8 per cent being served by other financial services providers such as MFIs and SACCOs.38per cent are totally excluded and 35 per cent rely on informal financial services providers such as the ROSCAs.Theindication is that access to financial services outside the main cities still remains limited. Insurance Sector: The insurance industry premium income recorded Kshs 41.5 billion in 2006 placing Kenya's insuranceindustry at position 71 worldwide and position 4 in Africa in premium volumes.Premium volumes were Kshs13.2 billionfor life and Kshs 28.4 billion for general insurance ranking them 63 and 72 on premium volume worldwide.The penetration ratio,measured as a percentage of GDP,has remained constant at 2.5 per cent over the last three years,which compares well with the average for emerging economies at 2.7 per cent of GDP but is well below the 9.2 per centof GDP in the industrialised countries.On per capita basis (insurance density),an average of Kshs1,152.8 or (US$17.2)was spent on insurance.This was quite below the average for emerging markets,which stood at US$ 60. Capital Markets: The capital market has witnessed robust activity over the past five years,which is attributed tocontinued growth in the economy coupled with wide ranging capital market modernisation and deepening reformsundertaken in the sector.During the ERS period,there were a number of notable improvements in the arrangementsthat affect the performance of the public and private security markets.First,the government made considerablesuccess in lengthening the maturities of its own debt to as long as 15 years.Second,the privatisation Act,which waspassed in 2005,has had a profound effect both on the total supply of securities to the market and the availability ofmore attractive security instruments to a wide section of the Kenyan public.Other notable improvements in the capital market include establishment of a Central Depository System (CDS) in 2004and Automation of Trading System in 2006; significant new equity listings have been floated successfully ( including listing of 3 companies in the Uganda and 2 in the Tanzania stock exchanges); and new fiscal incentives have beendeveloped targeting both issuers and investors.Market capitalisation has grown rapidly over the last 5 years from a value of Kshs 112.3 billion in 2002,to a value ofKshs 810 billion in 2007 representing about 43 per cent of GDP.During the last 3 years,more than Kshs 20 billion wasraised through the capital markets by way of public equity offerings and corporate debt instruments.Activity in thesecondary market has increased significantly in virtually all parameters with the NSE 20 Share index yielding averagereturns in excess of 30 per cent over the last five years since 2003.The number of licensees and approved institutionsby the Capital Markets Authority (CMA) increased by 40 per cent from 58 in 2002 to 81 in December 2007.While the primary auction market for government securities remained active,the secondary trading at the NairobiStock Exchange (NSE) is still low.The NSE's stock market capitalisation to GDP ratio stood at 43 per cent in 2007compared with South Africa's 266 per cent,Nigeria's 63.8 per cent and,in Asia,Hong Kong's 127.6 per cent andMalaysia's 67.2 per cent. Pensions Sector: The pensions sector is an important contributor to the capital markets with pension schemesholding over Kshs 80 billion in government securities and Kshs 96 billion in quoted equity.Government securities heldby the sub sector account for 23 per cent of outstanding securities while quoted equity held by the sub-sector accountsfor 11.9 per cent of market capitalisation.Pension schemes are also important investors in real estate,corporate debtinstruments,bank deposits and insurance funds. Inter-bank and Money Markets: Inter-bank and money markets provide players (banks,enterprises and individuals)with the means for effective liquidity management.A strong foundation has been laid for a market in short-termunsecured inter-bank lending,and a base for money markets (including Treasury Bills) over the last ten years.Inaddition,the inter-bank market has been strengthened by establishment of regulations for diverse money marketinstruments such as certificates of deposits,repurchase agreements and primary dealership system.The moneymarket has also been broadened with the regulatory framework for non-bank issuers of money market instrumentssuch as commercial paper.Going forward,the government will undertake a number of steps,including refining ofexisting regulations,to improve liquidity in the market place. Quasi-Banking Sector Microfinance: Microfinance is crucial in financial services in the country.About 27 per cent of Kenyans have access toformal financial services including from banks (19 per cent),SACCOs and MFIs ( 8 per cent).Another 35 per cent haveaccess to informal financial services ranging from ROSCAs,merry-go-rounds to relatives and friends.Overall,some 38per cent of Kenyans do not have access to financial products and services.An estimate of the outreach of the sector asat December 2007,gives a credit portfolio of Kshs 25 billion against collateral savings of approximately Kshs 30 billion.The client outreach is estimated at 2 million savers,and slightly under half a million individuals with loans. Savings & Credit Cooperative Societies (SACCOs): There are about 4,900 active SACCOs offering savings and creditservices to over 2.1 million Kenyans.The bulk of these clients are salaried (almost three quarters) and only a quarterare rural.There are now approximately 155 SACCOs in rural areas.Unfortunately,while much salary-based lendingprogrammes have performed well,other SACCOs and particularly rural and informal sector societies,have considerableNon Performing Loans (NPL) problem. Kenya Post Office Savings Bank (KPOSB): There is a significant potential role for KPOSB in the provision of accessto financial services particularly in poorer,sparsely populated rural areas.By 31st December 2007 KPOSB had 1.2million active clients with a deposit base of Kshs 11.5 billion.However,the KPOSB has a much greater potential thatcould be achieved through a synergistic relationship with the Postal Corporation of Kenya (PCK) and expanding itsmandate to providing additional financial services. Development Finance Institutions (DFIs): DFIs exist to help finance those sectors not catered for by private banks andother financial institutions,especially in rural areas.Examples include development and seasonal loans for agriculture,small industrial investments and small business loans.Currently,there are five DFIs,namely:Agricultural FinanceCorporation (AFC),Industrial and Commercial Development Corporation (ICDC),IDB Capital,Kenya Tourist DevelopmentCorporation (KTDC) and Kenya Industrial Estates (KIE).There has been a decline in total assets of the five DFIs togetherfrom Kshs 13.8 billion to Kshs 8.3 billion.The total loans (gross) has risen but the more realistic provisioning of those loanshas resulted in a fall in loans outstanding on a net basis from Kshs 7.2 billion to Kshs 2.7 billion. National Payments System (NPS): National Payment Systems (NPS) play a critical role in the stability of the financialsector and contribute to the efficient functioning of the economy.The NPS is largely non-integrated with participantsduplicating resource investment,leading to minimum interoperability,high interchange fees etc thereby making itexpensive for end users.Promoting the sharing of infrastructure is thus one of the key objectives that need to bepursued.In addition,the continued importance of cash usage by the public and cheque & Electronic Funds Transfer(EFT) usage by the government and its agencies to settle both low and high values transactions raises concerns of risk and efficiency that require to be addressed by 2012.The payment needs of the un-banked community need to befulfilled through sound programmes to increase the accessibility of the payment system by providing for new types ofparticipants and products.The increasing adoption of technological advancement in NPS has seen the collapse of national boundaries and theemergence of efficient cross-border payment systems with attendant regulatory issues.This phenomenon howeverpromotes regional financial stability and economic development.Oversight over these payment systems necessitatesthe development of risk management standards and common regional approach to payment systems.The enactmentof the proposed NPS bill will provide a sound legal basis for the NPS as it will enable non-banks to participate in thesystem to provide innovative and competitive payment services.The recently implemented KEPSS has provided potential for further reduction in the usage of cheques and EFTs in thesettlement of large value obligations especially by the government and its agencies.The government will move its highvalue payments to KEPSS.Efficiency will be enhanced through enabling direct participation of government ministriesin the RTGS system.One of the key objectives is to increase access to payment system by the public.Towards this end,ICT will continue to be exploited especially in the use of mobile phone networks,internet and payment cards.Enhancedoperational resilience and security will be pursued in order to increase trust,integrity and confidence in these ICT basedpayment systems. 4.6.2Emerging Issues and Challenges Mobilisation and Access to financial services: Currently,the penetration level of the banking services is limitedespecially in rural areas and does not link with production activities in agriculture and small industrial and businessinvestment.The existing banks are concentrated in urban areas.The low ICT infrastructure in rural areas inhibitsincreased coverage.It is pertinent to note that the current cost of finance (14%) is very high. Legal and regulatory framework: There is inadequate legislative and regulatory framework to support the growth ofthe insurance and capital markets in the country including Quasi-banking and SACCOs sectors.Additional challengesinclude overcapacity and price competition; corruption and fraud; poor corporate governance; negative publicperception of insurance; unfavourable tax regime and multiplicity of taxes; high cost of insurance to the common man;and low level use of Information Technology. Retirement benefits: The existing retirement benefits arrangements cover less than 15 per cent of the labour force,primarily those in the formal sector.Coverage in the informal,rural and self-employed sectors is low if not non-existent.The retirement benefits also provide low benefits with the income replacement ratio estimated at around 20per cent of pre-retirement income against the recommended basic standard of 40 per cent and the target standard of65 - 75 per cent.In addition,the local capital markets do not provide the vehicle to enable schemes to adequatelydiversify their investments and match assets to liabilities. Absence of an overall policy framework,retirement benefits remain disjointed with occupational and individualschemes falling under the Retirement Benefits Act,while the National Social Security Fund (NSSF) falls under both theNSSF Act and RBA Act.There is a need for an overall policy and legal framework to encompass all pension relatedsectors.The Retirement Benefits Act and regulatory framework need to be continuously updated to reflect theemerging trends in life expectancy at retirement. Capacity constraints: There are limited skilled human capacities especially in actuarial studies,which constraints thegrowth of the insurance sector.Other constraints are lack of adequate IT capacity,slow payment process and lack ofan Information Education Communication (IEC) framework. 4.6.3Programmes and Projects for 2008 - 2012 The projects and programmes to be pursued in the medium term for the various components of the financial sectorwill aim at creating a vibrant and competitive financial sector driving high levels of savings and financing the country'sinvestment needs.They will be anchored on the flagship projects for the sector,namely:•Consolidation of the banking sector through enhanced capital base;•Increase financial access through formalisation of microfinance;•Deepen capital markets by raising institutional capital and expanding bond and equity markets; and•Leverage remittance and long term capital inflows.In addition to the flagship projects,the strategies and action plans will be on key initiatives to be undertaken by thevarious components of the financial services sector,that is,banking and quasi-banking,insurance,capital markets,pensions and legal infrastructure. Objectives under The Medium Term Plan The key objective of the MTP for the financial services sector is to mobilise savings to realise a savings to GDP ratioof 25-28 per cent as envisaged in the macroeconomic framework underpinning the Vision 2030 .This level of savingswill sustain an increase in the ratio of investment to GDP of around 30-32 per cent,with a growing amount of resourceschannelled to support the agriculture,manufacturing and other key sectors identified under Vision 2030 ,includinglending to micro,small and medium enterprises (MSMEs).This will also further the government's policy objectivesunder the ERS,which articulated improved access to financial services for a much larger number of Kenyanhouseholds and small enterprises; greater efficiency in the delivery of financial services; and ensure the chances of afinancial crisis are kept to a minimum.Specifically,the objectives of the MTP are aimed at achieving the following:•Maintenance of sound fiscal and monetary policies to ensure macroeconomic stability which is key to a vibrantfinancial sector;•Review the banking sector legal and regulatory framework to align it to international best supervisory practice asset out by the Basel Committee on Banking Supervision.A revised Banking Act will be enacted in this regard;•Enact the Proceeds of Crime and Money Laundering (Prevention) Bill to safeguard the integrity of the financial sector; Operationalise regulations for Credit Reference Bureaus to facilitate credit information sharing;•Promotion of a competitive,sound and efficient banking system,including strong microfinance institutions thatare well regulated and supervised,that effectively mobilises savings to provide financing to support the growth ofprivate sector;•Establishment and development of non-bank financial institutions that will increase the depth of the financialsector as well as increase access of financial services to majority of Kenyans by providing a broad array ofdiversified services such as leasing and finance to MSMEs;•Development of the insurance sector that is well regulated and supervised so as to effectively protect businessesand individuals from risks;•Promotion of a strong pensions system that provides a secure retirement to a wider Kenyan population and whichprovides capital for long-term investment in the real sector;•Development of a safe and reliable payments system that will ensure smooth transfer and settlement of fundsbetween customers and banks as well as between banks;•Strengthening of money/inter-bank markets that provide banks,enterprises,and individuals with the means foreffective liquidity management;•Develop a comprehensive consumer protection framework;•Promote financial literacy/education;•Invest in human capital and information technology;•Improve the functioning of the financial system to enable it mobilise domestic savings and to promoteinvestments;•Expand the coverage and outreach of financial services to all parts of the country especially the rural areas;•Encourage commercial banks to finance industrialisation;•Development of efficient and transparent capital markets with a critical mass of issues that mobilises funds forlong-term investment;•Establishment of a legal infrastructure that promotes and enforces the rule of law in commercial and financialtransactions including protection of property rights and enforcement of contracts,as well as that which supportsgood governance by promoting transparency,accountability,participation,and predictability; and•Establish a single unified notification system (register) of all security document (charges,pledges,debentures,etc)of all movable assets given by all legal and natural persons so as to encourage registration of non-traditionalsecurities such as chattels and guarantees to improve collateral security access to credit from the formal sector. 4.6.4Policy,Legal and Institutional Reforms Reforms in the sector will focus on the following:•Reform the commercial justice system to enable it better support the effective working of market-based financialinstitutions;•Improve the registration arrangements for pledges over movable assets to help banks establish sound collateral;improving the land registration system to facilitate land as a viable collateral;•Review the Insurance Act to empower the newly created Insurance Regulatory Authority (IRA) to pre-empt financialdistress or intervene to help resolve financial problems of an insurance company;•Strengthen management and regulation of the NSSF including bringing it directly under the supervision of theRBA.This will focus more critical attention to the financial viability of the NSSF,the quality of the services itdelivers to its members,and its costs and other aspects of its efficiency;•Development of a National Pensions Policy,enact new legislation for the Public Service Superannuation Scheme(PSSS) and completion of phase I of the Pensions ICT project (the Pensions Management Information System –PMIS); 85 THE ECONOMIC PILLAR •Review the Capital Markets Act to provide the Capital Market Authority (CMA) with adequate legal protection,access to bank records in an investigation,ability to obtain freeze orders,and authority to visit at will the regulatedcompanies and their auditors;•Review the ownership structure of the NSE through demutualisation as part of initiatives to strengthen its role;• Introduce the risk-based capital adequacy framework for providers of financial services and products under CMA regulation and supervision; and•Increase government participation in capital markets such as leveraging on public private partnerships (PPPs) andspecialised bonds to facilitate investment in key areas. 5, THE SOCIAL PILLAR 5.0Overview Kenya's journey towards widespread prosperity involves building of a just and cohesive society that enjoys equitablesocial development in a clean and secure environment.This quest is the basis of transformation in some eight keysocial sectors that include education and training; health,water and sanitation; the environment; housing andurbanisation as well as in gender,youth,sports and culture.It also makes provisions for Kenyans with variousdisabilities and pays due attention to previously marginalised communities.The medium term priorities and policies asoutlined in the main Vision 2030 policy blueprint will be anchored on a strong science and technology foundation asalready outlined in Chapter 3 that deals with the basic foundations of our national transformation. 5.1Education and Training "Globally Competitive Quality Education,Training and Research for Sustainable Development" The government is committed to the provision of quality education,training and research for all Kenyans.In the recentpast,the education sector has undergone accelerated reforms to address the overall goals of the Economic Recovery Strategy for Employment and Wealth Creation (ERS).The government is also committed to achieving the internationaldevelopment commitments such as the Millennium Development Goals (MDGs) and Education for All (EFA).Major reforms the education sector has undergone include:•The launch and implementation of Free Primary Education (FPE) in January 2003;•Development of Sessional Paper No.1,of 2005 on Policy Framework for Education,Training and Research;•Adoption of the Sector Wide Approach (SWAP) to planning and financing of education and training;•Development and implementation of the Kenya Education Sector Support Programme (KESSP),which is aninvestment programme that allows different stakeholders to support the sector in the medium term; and•The recently introduced Free Day Secondary Education (FDSE).Other achievements in the sector include:•Development of the Education Governance and Accountability Plan;•Production of Financial Management and Procurement Manuals;•Enactment of the Ministry of Education (MOE) and sub-sectoral Strategic Plans and Service Charters forUniversities,Secondary schools and the Teachers Service Commission (TSC);•Recognition of various sub-sector policies like Gender,Early Childhood Development Education (ECDE) andInformation Communication Technology (ICT);•Establishment of Voluntary Counselling and Testing (VCT) centre at the Ministry of Education headquarters,•Review of the Ministry of Education Legal framework which is currently ongoing;•Strengthening of the Education Management Information System (EMIS); and•Development of Geographical Information System (School Mapping). In 2006,Kenya was evaluated and endorsed for education support from Fast Track Initiative (FTI) on the basis of thecredibility of the "basic education for all"policy as formulated in the KESSP which was launched in July 2005.Theimplementation of the KESSP's investment programmes was based on the thematic areas of Financing,Access,SectorManagement,Quality,Retention,Secondary,Tertiary and Higher Education.Currently,KESSP is under review and threenew investment programmes have been proposed for inclusion namely:Communication Strategy,Examination andCertification and Curriculum development and support.In addition,the Secondary,Technical,Industrial,VocationalEntrepreneurship Training (TIVET) and University programmes will need to be expanded to be more comprehensiveaddressing all aspects of the sub-sectors in line with the recently formulated strategies for the sub-sectors and Vision 2030 human capital needs. 5.1.1Situation Analysis In order to effectively carry out its mandate,the education sector has various sub-sectors and Semi AutonomousGovernment Agencies (SAGAs) which are charged with various responsibilities.These sub-sectors and SAGAs haveexperienced marked improvements including the following: Early Childhood Development and Education (ECDE): The government recognises the importance of ECDE as oneof the most important levers for accelerating the attainment of EFA and the MDGs.One of the EFA goals obligates thegovernment to expand and enhance comprehensive ECDE programmes that are essential for basic education.Whileenrolment in ECDE increased from 1,672,336 in 2006 to 1,691,093 children in 2007,the GER (59.3 per cent) is stillbelow acceptable levels.Furthermore,the number of ECDE centres also increased marginally from 36,121 in 2006 to37,263 in 2007.With low enrolment at this level,many of the children between the ages 4-5 years end up directly joining primary schools without the relevant background thus negatively affecting retention and quality. Primary Education: Kenya has made remarkable progress in increasing access to Primary education.Primary schoolNERs increased from 86.5 per cent in 2006,to 91.6 per cent in 2007.There was a slight change in the GER to 107.2per cent during the same period.The completion rate increased from 56.9 per cent to 76.8 per cent in 2006.Currently,the country has 18,063 public primary schools and 8,041 private schools enrolling 8.2 million pupils.Regional disparities are evident,with North Eastern (24.3 per cent) and Nairobi (32.9 per cent) provinces having lowNERs compared to a high of 97.8 per cent recorded in Nyanza province.With regard to gender disparity in enrolment,the situation has been improving and the disparity is relatively small in primary school.Female Primary schoolenrolment stood at 49.4 per cent of the total enrolment,with North Eastern province recording the lowest proportionof female enrolment of 25 per cent.There has been significant increase in Primary school enrolment after the introduction of FPE in 2003.However,thishas exerted additional pressure on the existing physical facilities.This has led to an acute shortage of permanentclassrooms,particularly in poor communities.At the same time,existing infrastructure is generally in poor conditiondue to a lack of investment capital,poor construction standards and inadequate maintenance.The results of the sharprise in enrolment numbers include poor learning conditions and overcrowding in schools.Indeed,this has compromisedthe quality of education at this level.Furthermore,there is limited number of primary schools serving those in ASALareas and urban slums. Secondary Education: A major factor constraining secondary school enrolment is that growth in the number ofsecondary schools has not matched the growth in primary schools.In 2007,there were 4,245 public secondary schoolsand about 2,240 private secondary schools as compared to 26,104 primary schools.Currently,the total enrolment insecondary schools stands at 1.18 million students as compared to 3.7 million children of secondary school going age.The GER increased from 32 per cent in 2006,to 37 per cent in 2007.On its part,the NER stood at 23 per cent in 2006 and 24.2 per cent in 2007.The GER for boys was 40.4 per cent while the rate for girls was 33.3 per cent.This imbalance is expected to worsen following the successful implementation and strengthening of FPE as well as theintroduction of Free Day Secondary Education.The demand is already very acute in urban areas,particularly in urbanslums,where over 60 per cent of the total urban population live.Moreover,the sector has set a target transition rateof 80 per cent from Primary to Secondary schools by 2009.This will be an increase from the current rate of 70 percent,with enrolment doubling from 1.17 million students in 2007 to about 2.8 million in 2012 and tripling to 3.51million students by 2015.In order to effectively address the challenges at this level,the sector has developed aSecondary Education Strategic Plan,which is a key component of the government of Kenya's approach to the provisionof Education for All (EFA).This is expected to be integrated into the revised KESSP that will be extended to 2015. Special Needs Education: Special Needs Education aims at assisting persons with special needs realise their fullpotential.It is estimated that 26,885 out of 1.8 million school going age population with special needs are enrolled in thefew special education schools,units and integrated programmes including 1,130 integrated special units and 8 specialschools offering secondary education programmes.This means that close to 1.77 million children with special needs arenot receiving any educational support.The problem of integrating students with special needs has not been adequatelyaddressed at post secondary and university level.There is need to provide appropriate educational facilities,materials,equipment and a cadre of trained teachers,professional and support staff to address their needs at all levels. Adult Basic Education: According to the Kenya National Adult Literacy Survey (KNALS),2007,61.5 per cent of theadult population has attained minimum literacy level.Only 29.6 per cent of the Kenyan adult population has attaineddesired mastery literacy competency.About 29.9 per cent of the youth aged 15 to 19 years and 49 per cent of adultsaged 45 to 49 years are illiterate.The survey reveals high regional and gender disparities in literacy achievements withNairobi recording the highest 87.1 per cent and North Eastern province recording the lowest at 8 per cent. Teacher Training: There are 33 public Primary Teacher Training Colleges that produce approximately 9,000 graduatesannually.Majority of secondary school teachers are trained under university education programmes.In addition,thereare two diploma colleges that produce about 400 graduates annually who are absorbed in secondary schools.However,the institutions lack adequate and modern facilities required for effective delivery of both pre and in-service trainingservices. University Education: Transition from secondary to university education stands at about 3 per cent.The last decadewitnessed substantial growth in the University sub-sector.Enrolments rose from 112,229 during the 2006/2007academic year to 118,239 in the 2007/08 academic year.Female students constituted 31 per cent of the totaluniversity student population.However,the increasing number of universities (28 by 2008) has failed to meet thedemand for University education.In addition,access to highly marketable degree programmes and science basedprograms remains limited due to high costs while gender and regional disparities still abound.The phenomenaldemand for university education has resulted into expansion of universities through opening of satellite campuses mostof which lack the requisite infrastructure and personnel.The expansion is also likely to stifle the diversified universitysystem and the goal of creating 'Centres of Excellence',thereby affecting the quality and relevance of education atthis level.Currently the Higher Education Loans Board (HELB) is able to support only 16,000 out of the over 80,000 students whoqualify for admission to the public universities and an additional 3,000 students from private universities.This hasadversely affected access to higher education since only a few students can afford to pay for the self-sponsoredparallel programmes. Quality Assurance and Standards: The education sector has expanded rapidly and this growth has impacted onquality and relevance of education at all levels.The objective of Quality Assurance and Standards is to ensure that: relevant curricula as well as teaching and learning materials are developed; appropriate physical facilities andequipment are provided; and there is an adequate number of qualified teaching staff for efficient delivery of thecurriculum.The sector will continue to improve the capacity of quality assurance officers,revitalise subject panels atschools,initiate teacher support initiatives and conduct subject based in-servicing,among others. Teacher Management: Teacher resource is the single most important input into the learning process.Over the years,the number of educational institutions has substantially increased to the current 26,104 primary schools and 6,485secondary schools.The Pupil-Teacher ratio in Public Primary and Secondary schools stood at 44:1 to 23:1 in 2007,representing a rise from 43:1 to 20:1 in 2006 respectively.The Economic Recovery Strategy (ERS) targeted a PTR of40:1 for Primary education and 35:1 for Secondary education.The introduction of the Free Primary Education Programme has resulted in an increase in the transition rate.However,this has substantially increased the shortage of teachers currently estimated at 42,000 for primary schools and 11,000for post- primary institutions.The shortage is anticipated to be higher with the expected increase in transition andtransfer of students from Private to Public schools,following the implementation of Free Day Secondary Education.Toaddress the uneven distribution of teachers,the TSC is currently using the demand-driven recruitment policy whoseachievements may be affected by the recent displacement of teachers occasioned by post election violence. Curriculum Development: Curriculum development is recognised as one of the major pillars of quality in educationand training.Between the 2005/2006 and 2006/2007 financial years,721 titles in different categories were evaluatedrespectively.This included life skills textbooks developed by the institute and a few Mother Tongue titles.The KenyaInstitute of Education has also developed E-Content curriculum materials for secondary level which are being digitised.In addition,digital laboratory and Broadband internet connectivity has been established.In the recent years theadaptation of curriculum for learners with special needs has been finalised for three levels of education,namely:Primary,Secondary and Primary teacher education.This will continue through the next five years to fully cover allaspects of the curriculum. Information and Communication Technology in Education: A National ICT Strategy for Education and Training aimedat guiding the sector in the adoption of ICTs across all levels of education and training has been developed.Thisstrategy takes into consideration the National ICT Policy of 2006,Sessional Paper No.1 of 2005,E-GovernmentStrategy of 2004 and the ERS.In addition,the sector has developed an e-school model for Kenya under the NewPartnership for Africa's Development (NEPAD) initiative.This takes into consideration the partnership of the communityand schools management committees.Under the programme,more than 213 schools have benefited and are expectedto be centres of excellence in the respective district. 5.1.2Emerging Issues and Challenges For the sector to deliver the targeted Vision 2030 goals,challenges identified in the sector at the various levels oughtto be addressed.Some of the major challenges in the sector include: Effects of 2007 post- election violence: The post-election crisis has had a negative impact on the educational sectorin Kenya.The main affected areas are Rift Valley,Nyanza,Western,Coast,Nairobi,and Central provinces with massivedisplacement of students,burning and looting of schools as well as teacher migration.The sector has undertaken anassessment to determine the extent of the damage,with a view to identify the necessary interventions.Currently,thiscrisis is being managed by placement of displaced children in local schools as well as establishment of temporaryclassrooms in host community schools.The displaced teachers have also been deployed appropriately. n the meantime,the sector is undertaking the following interventions:•Integrating over 120,000 displaced learners into existing learning institutions and provision of teaching andlearning materials as well as financial support;•Addressing the psycho-social and peace education needs of children and teachers;•Creating new structures and services where necessary such as IDP camps;•Continuous monitoring of the educational situation to facilitate appropriate interventions and planning.Many students attending Technical Training Institutions were affected by the post election violence.Hence,the bursaryfund will to be increased to enable students from the affected families to access technical education.To this effect,anincrease of Kshs 50 million has been proposed for the 2008-2009 financial year to benefit 42 Technical Institutions. Quality and relevance of education: The rapid increase in enrolments at all levels of education withoutcommensurate increase in infrastructure and personnel has led to overstretched facilities,overcrowding in learninginstitutions and high student staff ratios.All these challenges have had a negative effect on the quality of education.In addition,the different curriculum has not kept pace with the demands of globalisation.For instance,rapid expansionin the demand for University education has strained the existing facilities and adversely affected the teaching andlearning,research productivity and the intellectual climate of universities as a whole.Many primary and secondary students who cannot proceed with formal education are supposed to be absorbed byTIVET institutions.However,the training at this level has been hindered by inadequate facilities and inappropriatecurriculum; hence most graduates at this level lack appropriate skills.Furthermore,a mismatch between the level ofskills imparted by the education system and the requirements of the labour market must be realigned in order to meetthe demands of the economy and improve students' opportunities to participate effectively in the development processand for globalisation. Low transition rates: Though rising,the transition rate from primary to secondary school,estimated at 60 per cent,and from secondary to University level at 3 per cent is still below the desired levels of 75 per cent and 15 per cent by2012 for the two levels respectively.The increase in high school enrolment had been hindered by the high cost ofsecondary education,and the low participation of private providers in post-primary education.In recognition of thisproblem,in 2008,the government commenced the provision of Free Day Secondary Education (FDSE),with theexception of boarding expenses.With the imminent rise in the number of students completing primary and secondaryeducation as a result of state-financed education at those levels,preparations will have to be made to expand tertiaryand higher education facilities. Access and equity: Despite recent improvements,high regional disparities in access to education at all levels remaina challenge.There is lack of adequate and quality infrastructure particularly in ASAL districts,urban slums and pocketsof poverty.At university level,access to technical and science based courses is hampered by lack of infrastructure. Gender disparity: In some regions of the country,girls do not have the same opportunities in accessing education atall levels as boys.Certain religious and cultural practices such as the marrying off of girls at a very early age inhibitthem from attending school.Other factors that work against the education of the girl child include poverty in the homes,such that given a choice parents would prefer to educate a boy than a girl.The most affected are those in remote ruralareas,urban slums,and other marginalised areas.In addition,girls mostly enroll for Arts based subjects while boysenroll for science based subjects.This puts girls at a disadvantage in the labour market as they cannot competefavourably with their male counterparts.The effects of HIV/AIDS scourge have turned many girls into caregivers at theexpense of their education. The impact of HIV/AIDS: HIV/AIDS poses a great challenge to the efficiency and quality of education delivery.This is because it leads to an increase in the number of orphans,loss of trained teachers and high absenteeism rates amongteachers and pupils/students.It is for this reason that school-based HIV spread prevention programmes have beenidentified as a necessary step towards protecting the general population from infection.In addition,substantialprogress has been made in developing capacity among teachers at primary school level to facilitate behaviour changeand the use of available resources to support teaching and learning about HIV and AIDS.Although the prevalence ratehas considerably declined,the issue of orphans still remains a challenge. Special Needs Education: This sub-sector faces numerous challenges such as inadequate statistics on children withspecial needs,poorly trained staff and insufficient funding.The lack of clear policy on special needs education,appropriate technical and assistive devices including ICT that enhance teaching and learning and appropriate tools forassessment of the special need compounds the situation.Special Needs education is further faced with the challengesof curriculum inflexibility; examination oriented educational system,as well as negative attitude of the society towardsthose learners with special needs. Teacher Management: The TSC has continued to experience operational constraints and challenges in certain areasof teacher management.The commission is currently faced with the challenge of providing adequate teachers toschools and tertiary education institutions.This challenge to provide adequate teachers is further compounded by theimplementation of FPE,FDSE and the establishment of learning institutions through the devolved funds such as CDFand LATF.The implementation of the ECDE policy as an integral component of basic education will require provision of20,229 teachers for the sub sector.The government has not been employing teachers since 1998,following the freeze on employment in the public sector.From 2001,the TSC was allowed to recruit teachers to replace those leaving service through natural attrition.In 2007,theTSC recruited 4,000 additional teachers to address national teacher shortage,a move which is likely to continue followingthe improvement of the country's economy.This additional number has raised the total number of teachers to 239,000. Teacher Training: The current Teacher Training curriculum does not adequately address the modern needs of ensuringthat the graduates are well suited to cope with the globalisation challenges.The TeacherTraining curriculum willtherefore be reviewed with a view to modernising it to reflect changing technologies and delivery methods. University Student Loans and Bursary Scheme: In executing its mandate of providing financial assistance touniversity students,HELB experiences many challenges including:increased number of applicants,low governmentfunding,partial loan allocations and low loan recovery rate.The Board will therefore be strengthened in order to reachmore vulnerable groups in both public and private universities. Curriculum Development,Review and Delivery: The development of curriculum and its review has been hamperedby lack of continuous capacity building in areas like instituting a modern curriculum.Due to weak linkages betweenuniversity education and industrial needs,reforming curriculum to provide relevant skills and competencies for nationaldevelopment and global competitiveness remains a priority.Hence,the private sector will participate in the curriculumreview and in order to ensure its relevance to labour market needs. Examinations and Certification: Efficient administration of examination process faces a number of challenges whichinclude:inadequate ICT to handle high volume of data,inadequate funding to cover the administration costs,due toincreased work load and lack of direct control of examination distribution centres.In addition,advanced technology,particularly with regard to mobile phones has posed a great challenge to Kenya National Examination Council (KNEC)during the administration of examinations.Unfortunately,a few secondary school candidates have attempted to usethis technology to commit examination irregularities.To deal with this vice,the KNEC is currently exploring ways ofstamping out this problem. Adult Basic Education: Lack of a clear Adult and Continuing Education (ACE) policy and clear transition mechanismsremains a challenge.The findings of KNALS 2007 indicated an acute shortage of teachers,teaching and learningmaterials and negative attitude towards ABE.The survey further established the existence of limited access to ABEprogrammes capacity for quality assurance and standards and ICT capacity for e-learning. 5.1.3Programmes and Projects for 2008 - 2012 The government,in collaboration with development partners and other stakeholders has been implementing the KESSPwith a view to addressing the main sector issues including the need to strengthen the management and delivery ofeducational services.In effect,this will improve the access,quality,equity and relevance of education and training.Inorder to stay on track towards meeting the objectives of the EFA,MDGs and Vision 2030 ,further investments in theshort,medium and long term will be made necessary.The short- and medium-term investment programmes that willbe implemented have been categorised into key areas including:One Year Recovery Strategy; Flagship projects whichare critical to the achievement of Vision 2030 ; and Public Private Partnership (PPP) programmes. One Year Recovery Strategy In order to address the effects of the post election disturbances in the Kenyan educational system,the Sector will carryout the following short term interventions:•Conduct an impact assessment to establish the educational needs and subsequent mitigation measures;•Guidance and counselling of post-election victims including Education Officers and teachers at all levels;•Building capacity and confidence of teachers who are expected to provide psychological support to affectedpupils/students;•Construction of schools and temporary shelters in affected areas;•Provision of teaching and learning materials in areas affected by post-election violence arson and pockets ofpoverty; and•Gender sensitive interventions and voucher system to support orphans and vulnerable children affected by theviolence. Flagship Projects for 2008 -2012 The sector will implement the following flagship projects cutting across all the sub-sectors.These projects include: Construction of new schools: In order to address the inadequate physical facilities at secondary level to support theattainment of the desired transition rate of 75 per cent by 2012,the sector intends to construct more schools andexpand and rehabilitate existing ones.The newly developed school mapping (Geographical Information System)undertaken by the Ministry of Education will assist in identifying the needy regions for this intervention. Recruitment of more teachers: The sector plans to recruit more teachers both at the primary and secondary level toaddress the acute shortage and improve the pupil to teacher ratio.An additional 28,000 teachers,(both males andfemale) are to be recruited.Out of this group,21,400 primary school teachers and 6,600 post-primary institutionstutors will be employed.These will be distributed over the first four years of the Plan period,with 6,000 teachers beingrecruited each year.The balance of 4,000 will be recruited in the final year during 2012/13. To ensure efficient teacher utilisation,the TSC will implement cost effective staffing measures which include:•Implementing differentiated staffing norms at Primary school level which will allow for a PTR of 45:1 in highpotential areas and 25:1 in rural ASAL areas;•Raising the Secondary school average teaching load from 18 hours to 20 hours per week;•Retraining some of the under-utilised teachers to specialise in the optional subjects for which supply exceedsdemand;•Sharing teachers across schools as deemed appropriate;•Placing a lower limit on the class size for optional subjects; and•Considering various options for retraining and redeploying the teachers below the cut-off teaching load level. Computer Supply Programme: In order to achieve the Vision's goal of mainstreaming information technology inschools,the sector will establish a computer supply program to schools in order to equip students with modern ICTskills.The program will target 20,000 public primary schools,4,000 public secondary schools,22 PTTCs,2 diplomacolleges and the 7 public universities. Construction of Boarding Primary Schools in ASAL Areas: Due to the migratory nature of the pastoral communities,the sector will construct,rehabilitate and equip at least one boarding Primary school in each constituency of the ASALdistricts.This will go a long way to increase the enrolment rates and ensure equity in education indicators for thesedisadvantaged areas.This programme will supplement the national infrastructure programme under KESSP.This willbe complemented by a sensitisation programme to ensure that parents enroll and retain children in school. Establishment of the Voucher System: In order to ensure equity in access to education,the government will increasethe financial assistance targeting vulnerable groups to supplement the already existing initiatives including SchoolFeeding and Nutrition Programme,bursary,Free Primary Education and Free Day Secondary Education.This will beaccomplished by rolling out the voucher system for the learners from poor households and children rescued from earlymarriages and child abuse,consistent with the voucher system being implemented by the Ministries of Health andHome Affairs. Establishment of Centres of Specialisation: To address the challenges associated with capacity in the targetedsectors,universities and other middle level colleges will undertake training programmes in cognisance of globalisationand local skills needs in a knowledge based economy.The sector will establish 'Centres of Excellence' in Hospitalitytraining (Tourism),Agriculture,Trade,Manufacturing,Financial services and Business Process Outsourcing/Off shoring.The establishment will be based on individual institution/university's comparative advantages.Universities will also beexpected to forge linkages with industry and international Organisations to facilitate establishment of Science Parksfor skills development. Other Programmes The sector will continue to implement other programmes besides the flagship projects.These programmes are aimedat achieving the broad sector strategic objectives of enhancing access,equity,quality and relevance.The programmesare in line with Sessional Paper No.1 of 2005,the KESSP,Sector Strategic Plans and Sub-sector Strategic Plans. Early Childhood Development and Education Programme: The government will integrate ECDE into the basiceducation curriculum,with a view to improving its management,increasing access to ECDE and enhancing retentionat lower primary school level.Currently,the programme entails community mobilisation and capacity building,provision of community support grants,review of ECDE curriculum,promotion of ECDE health and provision andprimary school readiness.In addition,the government will support provision of teaching and learning materials,trainedteachers and infrastructure. Basic Education Programme: The government will support the sector in alternative basic education programmesincluding Non-Formal Education (NFE) schools,madrassas and mobile schools.In an effort to ensure full utilisation ofthe boarding schools in ASAL,the sector will mount community sensitisation programmes. Special Needs Education: The sector will integrate Special Needs education at all levels of education and training.This will entail the following measures:•Enforcement of legal provisions that safeguard the rights of those with special needs;•Implementation of a Special Needs Education Policy;•Conduct further research in the area of Special Needs;,•Development of a flexible curriculum and evaluation system appropriate for learners with special needs;•Utilising the most appropriate language of communication for learners with special needs;•Provision of funding and rehabilitation of existing institutions to make them disability friendly;•Creation of awareness and advocacy campaigns on the rights,needs and potential of learners with special needs;•Strengthening educational assessment centres through the provision of staff training and relevant assessmenttools; and•Capacity-building to embrace inclusive education practices and innovative methods of teaching,learning andevaluation. Grants to Boarding Primary and Secondary Schools in ASAL: Grants will be provided to low cost boarding primaryschools to cater for operational costs at an estimated budget of Kshs 4,000 per child annually.This programme will berolled out to boarding primary schools to be constructed in each constituency in ASAL districts to improve access andreduce regional disparities.Similarly,the government has been providing grants to all public secondary schools in the ASALs districts (as part ofaffirmative action to address equity) for development expenditures.This benefits the districts of Mandera,Wajir,Ijara,Garissa,Moyale,Marsabit and Isiolo.The sector will continue this programme within the Plan period to ensure qualityand equal opportunities.This programme will also target secondary schools in pockets of poverty within other districts. Grants to Non Formal Schools: The sector has for the last five years been providing grants to NFSs for teaching andlearning materials.Currently,there are 208 non formal schools registered and receiving grants.There are still moreNFSs which are not yet registered hence missing out in the provision of grants.In the plan period the sector will assessand register all viable NFSs and provide support in form of grants in order to enhance its efforts towards reachingchildren in hardship/disadvantaged zones. Free Day Secondary Education (FDSE): The FDSE aims at enhancing equity,access and improving transition fromprimary to secondary.To achieve this,the sector will continue to implement secondary school expansion strategy whichamong other things recommends the expansion of secondary education by construction of new schools of at leastthree streams and increasing class size from 40 to 45.To ensure successful implementation of the Strategy,thegovernment introduced free tuition in Secondary schools in January 2008. Secondary School Bursaries: The programme enhances access,equity and retention at secondary level.Thesebursaries target vulnerable groups.These include orphans,the girls and children from poor families in slum areas,pockets of poverty in high potential areas,and ASAL districts.Although the government has introduced free tuitionsecondary education,the programme will be continued to assist the poor and vulnerable groups meet the otherexpenses not catered for by the government such as boarding fees. University Education: In an effort to increase the Gross Enrolment Ratio (GER) of university students from the present3 per cent to 15 per cent,the number of students will be increased from the current 130,000 to about 450,000 students by 2015.The strategies to achieve this include:•establishing new university colleges in regional areas,with specific focus on strategic disciplines deemedimportant to the regions;•expanding the capacities of existing universities and establishing campus colleges of existing universities instrategic areas; and•upgrading existing middle-level colleges to degree-granting institutions without losing their current mandate.In addition to the above measures,there will be streamlining and fast-tracking of postgraduate programmes in orderto increase the number of PhD holders required for university education and other national needs.This will entail anincrease postgraduate student enrolment to at least 10 per cent of the undergraduate enrolment.This can be achievedby increasing the number of government grants and incentives provided to local universities.Nevertheless,such anexpansion calls for reforms that will ensure that quality and relevance are not compromised.To achieve this total a ofKshs.14 billion additional funding will be required to finance the initiative. University Loans,Bursaries and Scholarships: The Higher Education Loans Board (HELB) awards loans,bursariesand scholarships to students from needy families studying in public and private universities.With the rapid expansionof university enrolment,the board will improve its loan recovery,targeting procedures,and means testing.In addition,the HELB Act (Cap.213) will be reviewed to empower the Board to operate as a fully fledged student bank.The Ministryof Education also provides bursaries to university students.However,the current level of funding is inadequate,giventhe increasing need for university education.The government will therefore increase funding and explore more efficientallocation criteria.The sector will augment implementation of the initiatives to expand access to university education such as; de-linkingadmission from bed space,establishing new university campuses and colleges and upgrading existing middle levelcolleges.The sector will establish a National Open University and expand or establish Open and Distance Learning(ODL) in existing public and private universities as well as increase access to university education for women,studentswith special needs and other disadvantaged groups as part of the affirmative action. Provision of Science/Laboratory Equipment in Schools: The government has been providing grants to schools forprocurement of science and laboratory equipment in order to improve the teaching of science related subjects.However,the funding is inadequate to create the required critical mass/capacity for training the anticipated sciencebased skills necessary for the Vision 2030 objectives.The government will therefore allocate more resources for thiscritical programme during the Plan period. Information Communication Technology: Programmes towards the enhancement of ICT education and training willbe tailored to address the following objectives:develop institutional ICT policies and strategic plans,strengthen ICThuman capacity.The sector will scale up resource mobilisation towards establishment of e-school programme.Thisprogramme is expected to increase the number of education institutions with proper ICT resources/facilities foreffective delivery of education content in the Digital and Knowledge Economy.With regard to Special Needs education,assistive technology (adaptive,assistive and rehabilitative devices) will be provided to enhance their ability to interactwith other learners. Curriculum Development and Review: Curriculum development and review will ensure quality and relevance ineducation and training for the realisation of Vision 2030 .Under this area,KIE will undertake the following:developmentand revision of the curriculum,digitisation of the secondary curriculum,development of curriculum support materials,in-servicing and orientation activities,enhancement of out reach programmes,capacity building,needs assessment onadult education and training,education of learners with special needs and child minders,and monitoring andevaluation of curriculum at all levels.The CHE will therefore be strengthened to accredit university curricula. Research and Development: Universities will increase the quantity,quality and relevance of their research output witha view to creating innovations and inventions that will enable Kenya to effectively transform into knowledge basedeconomy.The sector will therefore provide incentives for research and increase the research endowment fund. University-Industry Linkage: Universities will build strong partnerships with other universities,industries,international organisations and communities through a policy environment that is conducive to growth.The linkageswill be instrumental in boosting the relevance of university education,mobilising resources,enhancing researchactivities and facilitating technology transfer. Adult Basic Education: Given that education is the main vehicle for transforming latent human potential for socio-economic development,the sector will continue implementing programmes aimed at achieving the medium term goalof 80 per cent adult literacy rate.These programmes will include:•Expanding access and increasing participation in adult classes;•Improving the quality and efficiency of adult education programmes;•Reviewing the legislative framework on Adult and Continuing Education;•Creating and sustaining a literate environment; and•Promoting e-learning for out of school youth and adults. HIV/AIDS Programme: To strengthen the sector's capacity to provide HIV/AIDS prevention,care,support andmitigation,the following will be undertaken:•In-service training for staff in Primary and Secondary schools on HIV/AIDS;•Peer support initiatives in education and training institutions;•Orientation on curriculum materials; and•Provision of teaching and learning materials in the various sub- sectors,as well as the provision of a school healthclub activity kit.In order to implement workplace interventions,the establishment of networks of Teachers Living With HIV/AIDS(TLWHA) will be strengthened.Additionally will be the implementation of the Education sector policy on HIV/ AIDS in theworkplace,including the revision and distribution of guide on regulations.The ACUs of all institutions under the sectorwill be strengthened in order to entrench management response to the effects of the scourge. Guidance and Counselling: The education sector will continue to support the provision of Guidance and Counsellingservices to enable learners cope with emerging issues like HIV/AIDS,drug and substance abuse,disaster management,conflict resolution,violence prevention and trauma management. 5.1.4Policy and Legal Framework The Ministry has been engaged in the process of reviewing the legal framework governing the education sector tofacilitate the anchorage of reforms that have taken place over the past years.This will include incorporating the Parentsand Teachers Association (PTA) into the management of schools,decentralisation of both Ministry and TSC functionsand disbursement of funds directly to institutions.In addition,the Ministry will gazette the current fees guidelines forsecondary schools as a way of entrenching Free Day Secondary Education. At university level,the sector will:•Popularise the policy of Built,Operate and Transfer (BOT),as a way of upgrading and expanding universityfacilities; harmonise the legal statutes governing education and training;•Empower the Commission for Higher Education to be an effective quality assurance body for both Public andPrivate universities;•Strengthen and improve the governance and management structures of local universities; and•Provide incentives to private universities to enable them to expand facilities and capacities for increased accessand especially access to science oriented programmes.Curricula developed by individual universities will be geared effectively towards addressing the changing marketneeds.Consequently,there is a need to review the legal framework with a view to empowering Commission for HigherEducation (CHE) to undertake programme accreditation for both public and private universities.The sector will alsoFinalise the development of the National Qualifications Framework and review the Board of Adult Education (BAE) Actand its inclusion in the proposed Education Training and Research (ETR) Act.In addition,the sector will develop a legalpolicy framework to establish an independent Educational Broadcasting channel for both Radio and Television underthe Kenya Institute of Education.In order to assist persons with special needs realise their full potential; a specialeducation policy will be developed and implemented with a view to have an integrated and inclusive education. 5.2Health "Equitable and Affordable Health Care of the Highest Standard" The Kenya Vision 2030 goal for the Health sector is to provide equitable and affordable quality health services to allKenyans.This is in recognition of the fact that good health and nutrition boosts the human capacity to be productive.Subsequently,this will enhance economic growth,contribute to poverty reduction and the realisation of the Vision'ssocial goals.The Health sector is one of the key components that appeals to the equity and socio-economic agendaemphasised in the social pillar of the Kenya Vision 2030 .Moreover,the Vision builds on the achievements of the Economic Recovery Strategy for Wealth and Employment Creation (ERS) (2003-2007) and the National Health SectorStrategic Plan II (2005-2010) which was formulated with an aim of reversing the downward trends in health indicatorsduring the 1990s.Kenya also aims at restructuring its health delivery system to shift its emphasis from curative topromotive and preventive health care.In turn,this will lower the nations' disease burden.In particular,this will beachieved by shifting from curative care in large hospitals,to lowering the incidence of preventable diseases.In addition,efforts will be made to control environmental threats to health and improve the nutritional status and research thattargets the health needs of communities in their specific circumstances.The Vision 2030 strategy is to undertake programmes that entail the public taking charge of their lifestyles in waysthat will improve the health status of individuals,families and communities.This approach will achieve major gains byfirstly,involving local communities in the management of health services and secondly,by allowing the Ministry ofHealth (MoH) to focus on policy,standards and research.The MoH has therefore defined a decentralisation approachthat will allocate funds and responsibility for the delivery of health services to district hospitals,health centres anddispensaries.In turn,this will empower Kenyan households and social groups to take charge of improving their ownhealth and nutrition.This will be achieved through the introduction of community-level care units to serve the localpopulation.In addition,a cadre of well-trained Community-Owned Resource Persons (CORPS) and Community HealthExtension Workers (CHEWs) will be created.This strategy is based on the realisation that communities benefit fromaffordable,equitable and effective health care when they have an opportunity to participate in policy making and thedevelopment of programmes on local health care delivery.The government also recognises the role of the private sector in improving the delivery of health services in partnershipwith the public sector.Accordingly,fostering partnership in the health sector has been one of the goals of healthreforms.In July 2005,the Ministry of Health embarked on a Kenya Health SWAP design process to enhance thecoordination and harmonisation of government and partner efforts (service delivery and funding).This was intended to achieve greater effectiveness and efficiency through the adoption of a country-led plan for service delivery,a singlemonitoring and evaluation framework.In addition,it would strengthen and use the country's systems of financialmanagement and procurement.Consequently,through such partnerships,Kenya will be able to position herself as acompetitive provider of specialised health care services.The overall goal is a paradigm shift that will bring fundamentalchanges to the way health services are delivered in Kenya. 5.2.1Situation Analysis The majority of Kenyans do not have access to affordable health care.Furthermore,nearly half (46 per cent) of thepopulation live below the poverty line.According to the Household Health Expenditure Report of 2003,44 per cent ofKenyans who fall sick do not seek health services due to lack of finances.This implies that low income remain a majorhindrance to accessing health care services in the country.Mortality rates still remain high,particularly among womenand children.For instance,the Infant Mortality Rate (IMR) increased from 71 per 1,000 live births in 1998,to 77 per1,000 live births in 2003.In addition,the Under-five Mortality (U5M) increased from 105 to 115 per 1,000 live birthsduring the same period.Mortality rate among under-fives show marked regional disparities,ranging from 54 per 1,000live births in Central Province,to 163 in North Eastern province and 206 in Nyanza province.The overall concern is thatif the current national trend continues,the Under-five Mortality related MDG may not be achieved.Maternal mortalityrate stands at 414 maternal deaths per 100,000 live births.Approximately 14,700 women of reproductive age dieannually due to pregnancy related complications.Recent statistics show that 60 per cent of births in Kenya take placeoutside health facilities and only 40 per cent of deliveries are attended by skilled personnel.Communicable and infectious diseases,nutrition deficiency disorders and parasitic infections still dominate themorbidity profile in the country.The majority of Kenyans continue to seek treatment in health care facilities for ailmentsthat can be controlled through preventive and promotive measures.Further,health statistics indicate that Malaria is aleading cause of outpatient morbidity,accounting for 30 per cent of the total disease burden in Kenya.On the otherhand,diseases of the respiratory system,pneumonia,skin diseases,diarrhoeal diseases,and intestinal worms,contribute over three quarters of the total outpatient cases reported.HIV/AIDS continues to pose health and socio-economic challenges.The National AIDS Control Council estimated that there are an estimated 1.2 million peoplecurrently infected with HIV/AIDS.Approximately 85,000 people die of AIDS-related complications annually,leavingbehind over 2.4 million orphans.Although in some areas VCT centres have been established up to village level,theuptake remains low with only 5 per cent of the population visiting these centres.The incidence of Tuberculosis (TB) ison the rise due in part to the interaction between TB and HIV/AIDS.Multi Drug Resistant (MDR) is on the rise.If notchecked,it can possibly erode the gains made in the management of TB in the country.Poor nutritional status also remains a challenge in Kenya because malnutrition is an underlying factor accounting for54 per cent of deaths among children under-five years.At national level,one out of every three children under-fiveyears of age exhibits stunted growth,due to long term deprivation of quality nutrition.An estimated 55 per cent ofwomen of reproductive age are anaemic and over 70 per cent of children below 5 years suffer from Vitamin A deficiency.Indeed,these nutritional outcomes are totally unacceptable because of their negative consequences on thehuman and economic development in the country .Currently,the health expenditure in rural areas account for 30 per cent of the government's spending on healthservices.Of this figure,urban areas account for 70 per cent,and yet only 20 per cent of Kenyans live in urban areas.Quality health care services are low particularly in government-run facilities because of lack of supplies/stocks.Witha total of 6,194 health facilities,51 per cent are Ministry of Health facilities,while the remaining 49 per cent are FaithBased Organisations (FBOs) and private facilities.However,only 52 per cent of Kenyans are within 5 kilometres to thehealth facilities. Inadequate and inequitable distribution of Human Resources for Health (HRH) is hampering health care delivery andultimately health outcomes.Overall,the Health sector is experiencing a shortage of health workers.Estimates show thatthere are approximately 17 doctors per 100,000 people in Kenya and 120 nurses per 100,000 of the population.However,analyses of regional distribution within the country indicate serious disparities.A case in point is that whereas the doctorto patient ratio in Central province stands at 1:20,715,in North Eastern Province,it stands at 1:120,823.Nevertheless,Kenya's health services have improved considerably in the last five years.This has been due to anincrease in the budgetary allocation of financial resources as well as better governance and management of healthdelivery systems.Recurrent and development funding for health services has increased from 7 per cent in 2003/2004,to 7.9 per cent in 2006/07.The actual government expenditures on health increased from Kshs 16 billion (2003/04),to Kshs 27 billion in 2006/07 and further,to an estimated Kshs.32 billion in 2007/08.The per capita expenditure onhealth also rose from USD 6.4 in 2003/04,to USD 10.9 in 2006/07.However,the expenditure is still skewed towardscurative services.For instance,in 2006/07,curative services accounted for 52 per cent of the recurrent expenditure,while preventive and promotive care accounted for 5 per cent.The levels of some key health status indicators associated with mortality and morbidity of the population observed inthe 1990s have been reversed.For instance,immunisation coverage increased from 59 per cent in 2003,to 73 percent by 2007 (against the set target of 70 per cent).However,the coverage in Western province of 68 per cent,Nyanzaat 66 per cent,and Rift Valley at 70 per cent still falls below the national immunisation coverage target.In addition,theHIV/AIDS prevalence rates declined from 6.7 per cent in 2003,to 5.1 per cent in 2007,with disparities ranging from13 per cent in Nyanza,to 3 per cent in North Eastern province.The expansion and scaling up of Voluntary Counsellingand Testing (VCT) centres and the prevention of Mother to Child transmission of HIV significantly contributed to theprevention of new infections,from 86,000 per year in 2003 to 50,000 per year in 2007.The number of people on AntiRetroviral Treatment (ART) has increased from 2,000 in 2003 to over 160,000 in 2007. 5.2.2Emerging Issues and Challenges Despite the achievements attained over the last few years,the Health sector still faces a number of challenges thatinclude: The 2007 post- election violence The recent post-election violence resulted in the deaths and displacement of thousands of people.Most of the affectedpeople sought health care in health facilities especially at the major hospitals mainly Kenyatta National Hospital,MoiTeaching and Referral Hospital and New Nyanza Provincial General Hospital.This crisis occasioned an additional work loadthat put stress on all health public health care facilities,including the loss of revenue experienced in various healthfacilities.Consequently,the Ministry of Health had to divert medical supplies earmarked for routine supply to manage thecrisis.A case in point is that the government waived fees for mortuaries and health care services in the affected areas.Service delivery was also hampered by the displacement of health workers in affected areas.To date,some of the healthservices disrupted include the provision of ARVs for HIV/AIDS patients and children's immunisation.The provision of theseservices in the IDP camps has greatly increased the Health sector's expenditure on operation and maintenance. Health Care Financing The Health sector's expenditure accounts for 8 per cent of the total government expenditure,constituting 1.7 per cent of theGDP,and USD 10.9 per capita.However,this amount remains inadequate when compared with the WHO recommendationthat developing countries spend an average of USD 34 per capita on health care.This will enable the country to cope withthe rising burden of diseases and other emerging health concerns and ultimately achieve the Millennium Development Goalson improved health care.Similarly,during the Abuja Declaration,African governments (including Kenya) made commitmentsto allocate 15 per cent of their annual spending on the provision of health care services. Health Facilities constructed through Constituency Development Fund About 1,000 dispensaries have been constructed to address the need for people to have access to health servicesespecially in underserved areas of the country.However these facilities face challenges in terms of staffing andmedical supplies.This has called for their adoption in phases.Currently,294 of the facilities have been gazetted anda further 336 are planned for gazettement.In order to undertake a rational development of health service infrastructureto ensure equity,the MoH will undertake a comprehensive heath facility mapping,which will provide the necessaryinformation for policy development.This information will be useful in the proper targeting of construction of healthfacilities using CDF resources,efficient management of human resource for health and linkages with Local Authoritiesfor service delivery. Human Resource in Health In addition to insufficient human resources,the Health sector also suffers from a mal-distribution of the available healthpersonnel,with some rural dispensaries having an insufficient number of personnel.According to a Human ResourceStudy conducted in 2004,there are an inadequate number of health personnel at the dispensary level,with 50 per centof the dispensaries managed by support staff or nurse.This situation calls for the harmonisation of staffing needs anddeployment in order to address equity in the distribution of health care workers. Weak Health Management Information Systems Despite extensive previous investments,the current Health Management Information System (HMIS) does not providetimely and comprehensive data.Taking into account the emerging decentralised systems,disease burden,preventionand other epidemiological trends,the system provides limited information for monitoring health goals and empoweringindividuals and communities with timely and understandable information on health.Focus will therefore be directedtowards strengthening health information systems.This will require ICT connectivity,systems redesigning and capacitybuilding for health care workers critical in data generation and management. Foundations for Health Sector Transformations The adoption of the Kenya Essential Package for Health (KEPH) constitutes a paradigm shift in the delivery of healthservices.It emphasises on life-cycle cohorts and a shift from disease orientation to health promotion has meant thatservice delivery efforts are focused at primary and lower levels of health care such as district health services up to thecommunity level.The paradigm shift will be enhanced by the following transformations: Community Strategy The progressive shift from curative to preventive and promotive health care will require the participation of individualsand communities to take charge of their health.A Community Strategy has been developed to ensure that communitiesbenefit from affordable,equitable and effective health and nutrition care by participating in decision making on localhealth and nutrition care delivery.The strategy will be achieved through introduction of community-level care units toserve the local population and by creating a cadre of well-trained Community-Owned Resource Persons (CORPs) andCommunity Health Extension Workers (CHEWs). Health Sector Services Fund Previous Public Expenditure Tracking Surveys reveal that only 44 per cent of the resources earmarked for lower levelhealth facilities actually reach these units.Consequently,in order to improve on these disbursements,the governmenthas gazetted regulations for the Health Sector Services Fund (HSSF) to:•Provide financial resources for medical supplies,construction and equipment of health facilities in the country;•Support capacity building in management of health facilities;•Support and empower rural communities to take charge of improving their own health;•Provide grants for strengthening of faith based health facilities through their respective secretariats; and Improve the quality of health care services in health facilities.In addition to this,the Ministry of Health intends to spend the first half of 2008 building capacity for rolling out the HSSFin all the facilities.The Ministry of Health will also review the Public Health Act to allow disbursement of funds as grantsto health facilities,develop requisite systems and linkages to the Medium Term Expenditure Framework (MTEF). Human Resource in Health (HRH) management Human Resource within the Health sector is a critical component in the delivery of health care.Hence,the staffingnorms for (all existing health cadres) have been developed for the deployment of health personnel.A Health Manpowerpolicy and Improvement Plan has also been developed to address the development,absorption,management andretention of human resources in the sector in the wake of brain drain resulting from migration.Further,to addressregional imbalance in the distribution of health personnel in the marginalised areas,the Ministry embarked on hiringstaff on contract.Those hired on contract were posted to serve in these areas for the entire period of the contracts.Contract hiring has succeeded in ensuring key staff cadres are available in the hardship areas.Available informationshows that most of health facilities which had closed especially in North Eastern province are now operational thustranslating into availability of health services. Sector Wide Approach (SWAP) A Joint Programme of Work and Funding (JPWF) was developed and adopted in 2006 and has provided a framework for a structured engagement between partners and the Ministry.It has also enhanced the stewardship function of theMinistry of Health.Notable developments in this regard include the adoption of joint annual implementation planning,and annual reviews of sector performance.Through these processes,it is increasingly becoming possible to determinethe level of donor and partner resources available for health through either budget or off budget sources.This alsoenhances the roles played by other implementing agencies in the health sector.This is important for determining thesector's resource envelope as part of the Medium Term Expenditure Framework (MTEF). Research and Development Research on health has been recognised as a major contributor to knowledge and information critical for policydevelopment and priority interventions identification.Currently,health research is conducted,managed,and financedby a diverse number of Organisations.However,they have demonstrated limited coordination,accountability andimpact analysis of the research on the critical health needs.The health sector will therefore develop an explicitresearch policy and legal framework to guide research activities by various institutions in Kenya.Furthermore,thesector shall progressively increase its budget for research in conformity with the regional targets. 5.2.3Programmes and Projects for 2008 - 2012 The overall goal for the Health sector for the Medium-Term Period is to reduce health inequalities and to reverse thedownward trend in health related impacts and outcome indicators.The country will also build on achievements madeunder the ERS and the ongoing Health Sector Strategic Plan II to achieve the Vision 2030 objectives. One Year Recovery Programmes In order to address the impact of the post election violence on the Health sector,the following interventions will beimplemented:•Replenishing buffer stocks diverted for medical supply during the crisis;•Rebuilding health care facilities destroyed during the crisis; . Increasing budgetary allocation to health facilities to cover lost revenue due to the crisis;•Reviewing the waiver system to address the needs of the poor and vulnerable;•Recruitment and distribution of extra nurses to address the existing constrains worsened by the crisis. Medium Term Targets Among the health sector targets to be achieved in the next five years include:•The reduction of under five mortality from 120 to 33 per 1000;•Reducing maternal mortality from 410 to 147 per 100,000 live births;•increasing the proportion of birth deliveries by skilled personnel from 42 per cent to 95 per cent;•increasing the proportion of immunised children below one year from 71 per cent to 95 per cent;•reducing cases of TB from 888 to 444 per 100,000 persons;•reducing the proportion of in-patient malaria fatality to 3 per cent and reducing the HIV prevalence rate to lessthan 2 per cent. Flagship Projects for 2008 - 2012 To provide an efficient and high quality health care system for all Kenyans,the sector will implement flagship projectsidentified by both the Vision 2030 and at the sector level.They include the following: Rehabilitation of Health facilities: The objective of this strategy is to provide a functional,efficient and sustainablehealth infrastructure network in the country.Although the government has invested in the rehabilitation of theinfrastructure in the last few years,health facilities have been run down over the years due to lack of maintenance.Increased attention will be given to improving the health infrastructure,particularly in rural and disadvantaged areasand communities. Strengthen KEMSA: The management of procurement and the supply chain has been a major constraint in the effortto deliver equitable,quality and efficient health care service.Since drugs and other medical supplies are paramount inthe delivery of quality health care,there is need to strengthen KEMSA to be a strategic procurement agency for theentire health sector.This will be achieved through the following strategies:•Enhance KEMSA procurement system to avoid delays currently witnessed; KEMSA should be able to service a pullsystem for all facilities in Kenya in the next five years;•Allow Mission for Essential Drugs (MEDs) to compete for supply of medical supplies and equipment to healthfacilities and;•Refurbishing and strengthening KEMSA regional depots. Community based information systems: A Community strategy has been developed in order to enhancecommunities' awareness of the health preventive and promotive aspects of health,in order for them to adopt positivehealth seeking behaviour.The strategy will be operationalised to promote the participation of individuals andcommunities to take charge of their health.Moreover,the government will put in place strategies to fast-track implementation of the MOH Community Strategy by training Community Based Health workers on preventive andpromotive health care. De-linking the Ministry of Health from service delivery: The Ministry of Health continues to be both a health regulatoras well as a service provider.However,it is necessary to separate these roles by establishing a Health Service Commissionwhich is separate from the Ministry of Health.It is envisioned that the Health Service Commission will be mandated withService delivery,while the Ministry of Health will provide guidance on policies,standards and guidelines.The Ministry will also perform the function of regulating service pension by health providers. Human Resource Strategy: The issue of human resource for the provision of health services continues to constrainhealth care delivery due to the lack of adequate staff.Consequently,there is a need to develop a human resourcesstrategy to balance the supply and demand for human resources in the entire Public Health sector in the country.Similarly,the Human Resources Information Systems will be implemented. Develop equitable financing mechanism: An equitable financing mechanism will be developed through theintroduction of a system to channel funds directly to health care facilities to ensure that funds allocated are utilised fortheir intended purpose.The following initiatives will be reviewed:•Implement the National Health Insurance Scheme as a means of financing curative and rehabilitative services thusleaving the government health system to concentrate on prevention,research,and policy;•Channel health funds direct to Health facilities in line with the HSSF gazette notice;•Increase resources to underserved or disadvantaged areas;•Scale up the Output Based Approach System for other health services;•Review the Public Health Act to allow disbursement of funds as grants directly to health facilities;•Empower health facility boards to manage and supervise resources generated locally and those allocated fromthe Central Government. 5.2.4Policy,Legal and Institutional Framework The Health sector has been reviewing the legal and institutional framework to facilitate the implementation of flagshipprojects.Accordingly,the following legal and institutional reforms will be necessary for the effective implementation ofprojects: Health Infrastructure •Develop an integrated health infrastructure plan to guide investments in the Health sector;•Strengthen and facilitate the timely procurement and distribution of medical supplies; and•Fast track the Community Strategy framework to promote participation of individuals and communities. Service Delivery •Review the Public Health Act to allow establishment of a Health Service Commission;•Develop a human resource strategy to link demand and supply for human resources;•Develop a policy to encourage local manufacturers to produce drugs and commodities locally to reduce the costof healthcare; and•Develop a policy on Public-Private Partnerships (PPPs) to ensure a well coordinated approach to health caredelivery Health Care Financing •Enact a policy to guide the health sector financing and inform debate on the National Social Health Insurance Billand its subsequent adoption in Parliament;•Review the Public Health Act to allow for the disbursement of funds as grants directly to health facilities;•Empower health facility boards to manage and supervise resources generated locally and those allocated fromthe Central Government. Public Private Partnership (PPP) •Develop a policy frame work for Institutionalising PPPs - legislation enabling Public Private Partnerships (PPPs)will be enacted to ensure a well-coordinated approach to healthcare delivery. 5.3Environment,Water and Sanitation "Enhancing Access to a Clean,Secure,and Sustainable Environment,Water and Sanitation" About 42 per cent of GDP is derived from natural resource-based sectors of agriculture,forestry,tourism,mining,waterand energy that are otherwise closely related to the state of the environment.Sound environmental conservationresults in preservation of natural resources thus,assuring continuous supply of environmental goods and services.Inaddition,proactive management of the environment pre-empts serious calamities and occurrences e.g.drought,floodsand global warming that would otherwise take up a lot of resources to deal with their eventualities.Development activities planned under Vision 2030 will have different impacts on the state of the environment.Somecould lead to increased pollution levels and larger quantities of waste.Activities in the manufacturing sector are alsoexpected to give rise to an increase in effluents discharged,which will require effective and efficient management.Inline with the country's global commitment towards the sustainable development objective,targeted socio-economicdevelopment initiatives towards the Vision 2030 targets will take into account environmental considerations.Water is an environmental resource necessary not only to support life but also sustain economic activities across differentsectors.The average annual rainfall in Kenya varies from about 250 mm in the ASAL areas to 1800 mm in the Lake Victoriaregion.The country's water endowment is also low and currently stands at 647 cubic metres per capita per year henceKenya's classification as a water scarce country.In recognition of the importance of sustainable management of waterresources,the government initiated reforms in the sector through the enactment of the Water Act 2002.Further,thegovernment,together with other riparian countries within the Nile Basin has developed the Nile Basin Cooperativeframework for development and management of the shared water resources particularly Lake Victoria.Sanitation and waste management are closely related to human health.The challenges of addressing sanitation andwaste management have been compounded by rising population,improvement in standard of living,and high rural-urban migration which is responsible for the development of densely populated informal settlements in urban and peri-urban areas with poor sanitation facilities.Pollution and waste management is exacerbated by dumping of waste intorivers,streams and other water bodies coupled with inadequate strategies leading to serious health implications. 5.3.1Situation Analysis Water and Irrigation: Kenya suffers from water scarcity since demand outstrips the stock of renewable freshwater.The current water supply is inadequate with only 57 per cent of households using water from sources considered safe.There are disparities in urban water access with informal settlements recording lower levels.Surface water resourcesaccount for 86 per cent while ground water accounts for 14 per cent.Trans-boundary waters constitute 54 per cent ofwater resources in the country.A Nile Basin cooperative framework for management and development of the sharedwater resource is under preparation by the nine riparian countries.The government remains conscious and committedto trans-boundary water management frameworks aimed at enhancing the socio-economic development of thepeople.Likewise,strategies for inter-basin water transfer will be considered.The available water is often inadequate for industrial,commercial,domestic as well as livestock and wildlife use.Thisscarcity has intensified competition among various users and often results to conflicts.Involvement of localcommunities in the management of water resources through formation of Water Resource Users Association (WRUAs) has resulted in reduced illegal abstractions,reduced catchments encroachment,rehabilitation of catchments areas andriver bank protection.A positive outcome has been observed in River Ewaso Nyiro North which is flowing up to 110 kmas opposed to previous flow of 40 km,and the flow is for a longer period of time.Water is also a vital requirement in hydro-power generation as hydro-power accounts for 72 per cent of thecountry's electrical power generation.Geothermal power production and its sustainability are largely dependent onnatural ground water recharge.The government has implemented far reaching reforms in the Water sector withinthe legal framework provided by the Water Act 2002.Various water institutions have been established effectivelyseparating the functions of policy formulation,service delivery and regulation of the water supply and sanitation andresources.In addition,Sector Wide Approach to Planning (SWAP) has been initiated aimed at improving coordinationof the sector.Currently only 105,800 hectares (about 20 per cent of irrigable land) have been utilised for agricultural production.Itis therefore prudent to construct more water storage facilities towards increasing land area under irrigation whosepotential is about 1.3 million hectares within the Plan period.In addition,these facilities will contribute to flood controland reduce associated environmental costs that mainly impact heavily on the rural poor.The following are some of the major accomplishments in the water sector for the period 2003 – 2007:•Water and sewerage schemes in Eldoret,Garissa and Nyeri and Phase One of the Kisumu water and sanitationprogramme were completed;•759 dams and pans were constructed and rehabilitated in the ASAL areas;•209 community water projects were completed through the Water Services Trust Fund (WSTF);•203 rural water supply schemes were rehabilitated;•586 boreholes have been drilled and equipped;•Rehabilitation of 9 sewerage schemes in urban centres were completed; and•Construction of dykes,canals,gabions and river training along Rivers Nyando,Nzoia and Tana as well as therehabilitation of Yatta and Njoro Kubwa canals. Sanitation: Development of water supplies has not been matched by a corresponding increase in facilities of sanitarydisposal of wastewater.As a result,wastewater is discharged into mainstream rivers,valley depressions and damsleading to high pollution levels.In addition,main sewer systems suffer from constant breakages and/or leakage dueto increased discharge to fixed systems.The national sanitation coverage increased from 45 per cent in 1990,to 48per cent in 2006.Difference in access to adequate sanitation between urban and rural environments still persists,withthe formally planned urban areas being better served than rural areas,and urban informal settlements.Approximately80 per cent of the outpatient hospital attendance in Kenya is due to preventable diseases while 50 per cent of theseare water,sanitation and hygiene related.Hygiene and sanitation are also major determinant of poverty,disproportionately affecting women and children. Forests: Despite the socio-economic,ecological and environmental importance of forests,the forest cover in Kenyaremains below 2 per cent.The Forest Act 2005 and Kenya's Draft Forest Policy formulated in 2005 has severalobjectives which include:•increasing forest and tree cover; increasing wood production especially at farm level;•conserving and rehabilitating the remaining natural forests and woodlands for environmental protection andbiodiversity conservation;•enhancing participatory forest management; and•ensuring that the Forestry sector makes a contribution to poverty reduction. Sustainable management,conservation and development of Kenya's forests depend on application of science to generateimproved technologies.Consequently,forestry research is undertaken by Kenya Forestry Research Institute (KEFRI) whosefocus is the generation of improved technologies aimed at sustainable forest conservation and management. Wildlife: Most of the wildlife in Kenya is found in only 8 per cent of the land area (4,403,595 hectares) that are gazettedfor wildlife conservation.The main concern in wildlife management is the encroachment for agriculture andinfrastructural development and also the rapid decline in wildlife population,both in and outside protected areas.Since1977,the country has lost 60-70 per cent of large wildlife and the annual decline of wildlife is currently estimated at3 per cent with some species like rhinos,the Hirola antelopes,and the dugongs being endangered. Biodiversity,ecosystem and habitat management: Kenya is a mega-biodiversity state with its biodiversity hoistedin its various habitats and ecosystems.The latter include forests,grasslands,wetlands,coral reefs and mangrovesamong others.Most of Kenya's biodiversity are also found within protected areas which comprise these habitats andecosystems.Species loss and management of protected areas remains significant challenges.Kenya has over time lost some of her well known biodiversity resources mainly due to population increase; habitatdestruction,desertification,over exploitation of species and conversion through deforestation,drainage of wetlands foragriculture and settlement,poaching due to lack of proper patent regulation.This problem is exacerbated by limitedfunctional mechanisms for monitoring and regulating the introduction into the country of alien invasive species,including Genetically Modified Organisms (GMOs). Minerals and Mining: This industry account for about 1 per cent of the GDP and 3 per cent of total export earnings.Kenya also has a wide range of minerals such as Soda Ash,Fluorspar,Limestone,Barite,Gypsium,Salt,DimensionStones,Silica Sand,Kisii Stone (Soapstone),Manganese,Zinc,Wollastonite,Graphite,Kaolin,Copper,Titanium,Lead,Nickel,Carbonic Dioxide,Chromite,Pyrite,various Clays,Rare Earth Elements and Phyrochore.Despite the potential ofthe industry,it remains largely undeveloped hence appropriate policy and legislation supportive of investments in theindustry and particularly small scale investors will be put in place. 5.3.2Emerging Issues and Challenges The major challenges under this sector include environmental degradation; deterioration of water quality and quantity;pollution and waste management; impacts of Climate change and Global Warming; inadequate adoption of Bio-Technologyand lack of an integrated environmental planning strategy towards attaining the sustainable development objective. Environmental Degradation: The quality of land in the country is generally declining due to unsustainable farmingpractices,effects of climate change,Soil erosion,pollution and toxicity from agro-chemicals and alien and invasivespecies (e.g.Ipomea kituiensils,Prosopis juliflora,and water hyacinth).Soil erosion is the main form of landdegradation and is most prevalent in ASALs.This is due to the fragile ecosystems and overstocking although it alsooccurs in the high potential areas where inappropriate agricultural techniques are practiced.The magnitude anddistribution of soil erosion hazards in Kenya is influenced by rainfall erosivity,soil erodibility,gradient of the land andsoil cover.Soil erosion reduces soil fertility and has implications on land productivity,livestock carrying capacity,waterquantity and quality,and fuel wood availability.Land degradation has huge economic costs.It is estimated that thelosses at the national scale amount to USD 390 million annually or about 3 per cent of GDP. Forestry: The Forest sector plays vital roles in protection of water catchment areas,conservation of biodiversity andin provision of forest products in the country.However there has been accelerated destruction of forests in the countrydue to increasing population and Kenya is now internationally considered to be a low forest cover country.Theremaining natural forests have also been degraded and the forests on the Kenya's five water towers can no longer provide sustainable supply of water,raw materials and other services to meet the goal of Vision 2030 .Further,treeson farmlands and in industrial plantations have also been over cut and there is widening gap between the supply anddemand of forest products.Forestry sector also experiences low level public investment.Clearing of woodlands in dryareas for agriculture and charcoal production is another major cause of environmental degradation. Water Resources With regard to this sector,key challenges include:• Water Scarcity: Renewable fresh water per capita stands at 647 cubic meters and is projected to fall to 235cubic meters by 2025 if supply does not keep up with population increase.There are also regional imbalances inwater availability and utilisation that must also be addressed.Highland areas,the Coast and the Lake Region havebetter water access than the ASAL districts.The state of existing water supply system will be upgraded to addressthe high unaccounted for water (currently estimated at 50 per cent) and improve customer satisfaction especiallyin urban areas.The distances to the nearest water points pose a challenge particularly to women and girls whobear the responsibility of fetching water.Most time is spent on this activity hence compromising the girls'education and time for other productive activities for the women.• Water Security: Provision of water throughout the year presents a major challenge.Inadequate water harvestingis responsible for regional imbalance in water security with some parts of the country having a lot of water duringrainy seasons and little or no water during dry periods.The challenges are further compounded by extremeclimatic changes that cause flooding and immense negative impact on both the social and economic fronts.• Water Catchment management: Deforestation has caused severe degradation of the country's main watertowers.This has led to reduced flows in a number of rivers thereby disrupting water and electricity supply.• Water quality: The quality of water has deteriorated overtime due to a number of factors such as increasedcommercial farming activities,rapid industrialisation and laxity in law enforcement.In most cases effluents andchemical waste from various sources are discharged directly into water bodies.• Infrastructure development: Poor physical planning in urban areas,coupled with the proliferation of unplannedsettlements,is challenge to the provision of safe drinking water.As stated earlier,water coverage will be increasedthrough investment in infrastructure,rehabilitation and construction of new water supplies and more efficientmanagement of available water.In addition,an estimated 60 per cent of water is unaccounted for.This problemwill be addressed under the Medium Term Plan.• Monitoring of Resources: Currently,water resource monitoring covers only 30 per cent of the total estimatedavailable supply.This constrains effective water resource planning and management.In the plan period,relevantcapacity for monitoring trends in water flows and abstraction will be given priority. Pollution and Waste Management Pollution and solid waste are some of the leading environmental health problems in the country affecting both ruraland urban populations.Air pollution results mainly from industries.Even though the quality of air in Kenya is notregularly monitored,it is estimated to be below the WHO recommended levels.For instance,the PM10 pollution levelin Nairobi is about 42μg/m3 attributed mainly to high concentration of industries and vehicles in the city.Air pollutionis responsible for increasing cases of Upper Respiratory Tract Infections (URTI) which is the second highest cause ofmorbidity in Kenya.Incidences of URTI morbidity are 6.0 per cent in urban compared to 5 per cent in rural areas andaffect women more (6.2 per cent) than men (5.7 per cent). Waste management is another environmental risk affecting the country.Of the 174 Local Authorities,only 32 havesome form of sewage treatment and disposal facilities; only two have conventional treatment plants while 30 haveoxidation lagoons which can only handle organic waste.In Nairobi City,only 20 per cent of solid waste is collected andtaken to approved dumpsites.In rural areas,50 per cent of households dispose domestic waste in farms.This isassociated with the high incidences of environmental related diseases.Diarrhoea,due to poor hygiene,accounts for2.6 per cent of morbidity and affects 2.4 per cent women and 2.8 per cent men.The effect is more in rural areas thanin urban areas where 2.6 per cent and 2.2 per cent of cases are reported respectively.High poverty and low awarenesslevels are some of the factors for the disparities between urban and rural.Misuse of chemicals have now become aworld concern because of negative environmental and health impacts leading to global control programmes onchemical and wastes.Kenya is signatory to various international conventions on Persistent Organic Pollutants (POPs)and will remain committed to their implementation during the Plan period. Climate change There exists overwhelming evidence of climate change in Kenya and one of the apparent signals is the rapid anddrastic disappearing of glaciers on Mt.Kenya with scientists projecting that the ice cap on the mountain coulddisappear by the year 2020.Further,there have been widespread changes in extreme temperature in the country.Datafrom the meteorological departments show that cold days and cold night have become less frequent,while hot daysand hot nights have become more frequent.In addition,Lake Victoria and other lakes within the Rift valley like Nakuru,Turkana,Baringo,Naivasha and Elementaita have experienced serious declines in water levels.Similar drastic changeshave been observed in volumes of river flows.Climate change poses a serious challenge to Kenya's social and economic development.This change will lead to majorchallenges in the economy,human life and on the environment.Kenya is most vulnerable to climate change since thekey drivers of the economy (agriculture,livestock,tourism,forestry,and fisheries) are climate-sensitive.Coupled withthe country's low adaptive capacity to climate change,the country experiences a high level of vulnerability.Scientificevidence exists that Global Warming is leading to reduced snow caps with negative environmental implications.A National Climate Change Secretariat will be strengthened. Bio Technology There is no comprehensive policy on biotechnology and legislative framework to regulate access and exploitation ofgenetic resources.While collection of genetic materials for industrial purposes is going on,there is no mechanism formonitoring such activities.With increasing demands for genetic materials for use in biotechnology by the developedcountries,illegal collection of genetic materials has increased.This denies the country revenue from sale of suchmaterials and also her potential to develop its own biotechnology capacity and related industrial potential.In addition,capacity in the field is low hence research activities are minimal. Integrated environmental planning The preparation of the National Environmental Action Plan and the on-going initiatives to prepare the NationalEnvironment Policy are some of the efforts towards achieving the integrated planning initiative.Despite the legalprovision,the current planning approach is largely sector based and neglects the essential economic and social valuesassociated with the environment.Consequently,there is insufficient risk assessment in terms of impacts on theenvironment of proposed investments in various sectors hence the high risk of environmental and natural resourcesdegradation.The sector has not sufficiently demonstrated and communicated the economic and social benefits arisingfrom sound environmental management in a form that is easily assimilated with sector-based planning.In addition,there is inadequate capacity for monitoring environmental trends and lack of harmonisation of data collectionmethodologies,storage and access in the entire area of environment and natural resources. Institutional and legal framework In recognition of the importance of good governance in the environment and water sector,the government hasinstituted a number of legal and institutional reforms.The main one being the enactment of the EnvironmentalManagement and Coordination Act (EMCA) of 1999.The Act provided the avenue for the harmonisation of about 77sectoral statutes.However,the major challenge relate to low enforcement to the provisions of Act.This has beenoccasioned by inadequate institutional capacity to oversee its implementation and low level of environmental educationin the country.The low stakeholder involvement such as the public,civil society,institutions of higher learning and theprivate sector is another challenge. 5.3.3Programmes and Projects for 2008-2012 One Year Recovery Strategy To address the impact of the post election crisis,the following strategies will be put in place in the short term:•Rehabilitation of water infrastructure destroyed during the post election violence; and•Provision of water to displaced persons in and out of camps. Flagship Projects for 2008-2012 The sector will aim at implementing the following flagship projects within the Plan period: Rehabilitation and protection of indigenous forests in the five (5) Water Towers: This project entails fullrehabilitation of the five water towers of Mau Escarpment,Mt.Kenya,Aberdare Ranges,Cherangany Hills and Mt.Elgon.The current forest policy 1aims to promote sustainable management of the forests to serve as watercatchments,biodiversity conservation reservoirs,wildlife habitats and carbon sinks.The indigenous forests will provideimportant economic,environmental,recreational,scientific,social,cultural and spiritual benefits.Management willembrace preservation of religious and cultural sites,traditional medicinal sources,water catchments,habitats forendemic and threatened flora and fauna.Moreover,this will seek to introduce high-value tree species at farm level inorder to contribute to the targeted forest cover of 4 per cent by 2012.The initiative will introduce commercial treespecies in ASALs in order to control desertification and improve livelihoods.The ecosystem approach will be adopted in forest management.This will also involve Joint management withstakeholders,(KFS,KEFRI,local communities,civil societies,KWS,development partners and others) through forestconservation committees around each tower.This process will be supported by adaptive research for tree species andtheir suitability in ASALs. Secure wildlife corridors and migratory routes: Most wildlife corridors and migratory routes have been interferedwith by human activities.Strategies will be developed to reclaim them if wildlife is to continue providing the base forthe tourism sector. Preparation of a National Spatial Plan (Land Use Master Plan): This will involve collecting accurate andcontinuously updated mapping of land use patterns in Kenya and of tracking developments.This project will also entailundertaking both livestock and wildlife censuses and Zoning of land rural and urban areas currently unmapped. Waste management system: This will entail preparation of a Waste Management Strategy aimed at involving mainlythe Youth Groups.In addition,Dandora dump site in Nairobi and establishment of a solid waste management systemfor the City of Nairobi on a Public Private Partnership basis.This will set a trend to be followed by other municipalities. Rehabilitation,Regeneration & Restoration of Nairobi Rivers: The aim of the programme is to fully rehabilitate thecatchment basin of the Nairobi River in order to make it a recreation site.Other rivers like Ngong will also be coveredunder this programme.The involvement of the private sector will be enhanced to supplement government efforts inthe control of water pollution.In particular,the programme will be strengthened as a show case to other cities andtowns in the country. Water resources information management: This will entail rehabilitation and acquisition of new hydro-metric whichwill be installed in strategic and vulnerable water resources (surface and groundwater) country-wide,and be linked to WorldHydrological Observation Cycle (WHYCOS); rehabilitate 600 hydrometrological stations; capacities of WRUA's will be builtto collect records and monitor the data acquisition instrument.Groundwater Hydro-geological Mapping will be undertakenin Turkana and Marsabit for purposes of planning groundwater development in the two districts and replicated in other ASALdistricts.Formulation of four water Catchment Management Strategies (CMS) for Lake Victoria South; Ewaso Ngiro North;Ewaso Ngiro South and Athi catchment areas will be completed through stakeholder involvement. Water harvesting and storage programme: The recurrent floods of Western Kenya will be managed throughconstruction of large multi-purpose dams along Rivers Nzoia and Nyando.In addition,Water dykes will be constructedalong the lower reaches of Nzoia and Nyando Rivers.In addition,a 54 km inter-basin water transfer canal will beundertaken in the Rahole Area,connecting Tana River to Garissa District,and development of High Grand FallsMultipurpose reservoir with a storage of 5.4 billion cubic meters will be undertaken; the canal,other than supplyingwater will also serve to tame River Tana in lower reaches and also re-distribute water resources to Arid areas downstream.Improved water harvesting will particularly provide opportunities for the ASAL communities to achieve foodsecurity.Measures will be put in place in regions that continually experience drought and floods such as Kano Plains,Budalangi and ASAL areas to reduce water insecurity and vulnerability. Urban Sewerage programme: In order to improve sanitation and hygiene and reduce environmental pollution oftowns located on shared water basins,there is urgent need to undertake,liquid waste treatment feasibility studies atthe towns of Malaba,Lagdera,Lodwar,Wajir/Elwak and Liboi.These are areas where the water table is high,forcingthe local councils to adopt "Bucket latrines"which are unhygienic.The focus of this programme is to implementappropriate technological approaches in line with the Environmental Sanitation and Hygiene Policy 2007 to amelioratethe situation.Other urban areas especially within the lake Victoria Basin will be targeted under a joint initiative betweengovernment and UN Habitat Water storage and harvesting: The government will develop two multi-purpose dams with a total storage capacity of2.4 billion cubic meters along Rivers Nzoia and Nyando.An additional 24 medium-sized multi-purpose dams with a totalcapacity of 2 billion cubic meters will be undertaken to supply water for domestic,livestock and irrigation use in the ASALareas.They are Bunyunyu,Munyu,Londiani,Itare,Upper Narok,Chemesusu,Kiserian,Yatta,Kitui,Mwingi Thwake,Rare,Thiba,Umma,Rumuruti,Badasa,Archers' Post,Awasi,Kora,Ndarugu,Mwachi,Ruiru A,Siyoi and Nyahururu. National water supply and sanitation: The projects aim at expanding the Mzima pipeline to meet the currentdemands of the coastal towns including additional proposed resort cities of Lodwar and Isiolo.It will also cover urbanwater supply and sanitation in the satellite towns around Nairobi,Mombasa,Kisumu,Nakuru and Kisii alongside 26medium-size towns that have the potential to support manufacturing and tourism activities.These are Narok,Machakos,Maralal,Wajir,Wote,Hola,Chuka,Ruiru,Athi River,Siaya,Ol Kalou,Matuu,Maua,Moi's Bridge,Limuru,Moyale,Kapsiwor,Maseno,Kapenguria,Kitui,Lokitaung,Karuri,Lamu and Chogoria.Other project aimed at increasingwater coverage annually include construction of 180 water and sanitation projects,drilling of 140 boreholes andconstruction of 160 small dams/pans in ASAL areas. Water resource information management: This will entail rehabilitation of the hydro metrological network toreactivate 600 stations that are not functioning currently.In order to provide water to the ASAL areas,ground water hydro-geological mapping will be undertaken in Turkana and Marsabit. Irrigation and drainage: The main flagship project in irrigation will be the construction of the Tana delta project.The otherareas of focus will include expansion of the schemes in Bura,Hola,Kano Plains,Nzoia (Upper,Middle and Lower),Perkera,Kerio Valley,Mwea,Taita Taveta,Ewaso Nyiro North and Ngurumani (Kajiado) irrigation schemes.In addition the Yatta Canalwill be extended for another 100 km to cover Yatta District,parts of Kitui District and Mwingi District.The extension willalso involve construction of a 1 km uptake dam above the existing intake point along Thika River and repair of Mathautaand Munyu Dams to serve as the starting point of the extension of the canal.This will increase cropland substantially andboost agriculture that was previously dependent on rainfall.Drainage areas will also be expanded in provinces of western(Busia,Kakamega,Butere,Mumias,Bungoma,Teso) and Central (Thika and Nyandarua - North and South).Research willalso be carried out to enhance efficiency and productivity of rain fed agriculture. Additional Programmes In addition to the flagship projects,there are other supportive projects that will be implemented under this sector.Theseinclude: Carbon offset scheme: The initiative will exploit opportunities within the Kyoto Protocol on the establishment ofvoluntary carbon markets in order to promote conservation and compensation for environmental services.To this end,capacity to attract Clean Development mechanism projects will be enhanced. Disaster preparedness: Securing funding from global funding mechanisms to implement adaptation programmes in ASALs and high-risk zones.This will be accompanied by an improved disaster-preparedness strategy,including anearly warning system and environmental monitoring covering climatic events (e.g.droughts,floods,pestilences,seismic occurrences etc.),as well as initiation of a public awareness,avoidance and preparedness campaign. Compensation for environmental services programme: This programme will be undertaken in consideration of thecontribution provided by the environment and natural resources to the National Accounts.The programme willincorporate the valuation of environmental resources,amenities,and services into the overall economic activity toensure such resources are not over-exploited.It will entail the design and implementation of appropriate incentives inenvironmental management. Exploration and Mining: An accurate and detailed geological mapping of the country will be undertaken to provideinformation that may lead to the discovery of natural minerals of commercial value.As a result,the current explorationfor minerals and crude oil will be intensified.The private sector will be encouraged to participate in both small andlarge scale mining industry and to develop the geo-tourism sites as part of the tourism circuit within the country.Smallscale miners will be targeted for increased investments. Invasive species: Serious economic and ecological damage is caused by this alien and invasive species particularlyin ASALs.A number of initiatives are currently ongoing aimed at curbing the spread of this species.The governmentwill take lead in coordinating these initiatives so as to control further spread. Trans-boundary waters: The Nile Basin Initiative is supporting the rehabilitation and expansion of Bomet Water Supplyand Sewerage System to serve an additional 25,000 people and extension of pipeline by about 2 Km.It is also buildingearly confidence,through sensitisation and awareness,to communities in the basin in undertaking self initiationprojects,for the purpose of optimising resource usage. Geological Mapping: This will cover the remaining 20 per cent unmapped parts of the country bordering Somalia andsouthern Sudan (ELEMI triangle).This will include inventory,mapping and zoning of geo-hazard areas. Linkages with institutions of higher learning: The government will strengthen linkages with Universities and otherresearch institutions through joint capacity building in environment related disciplines especially through short termtraining,establishment of university-based Science Parks as centres of technological innovation and development,development of environmental and hydrological monitoring of programmes in major water catchments anddevelopment of effective and environmentally-friendly solid waste recycling technology usable at community level inmajor urban areas.The government,in collaboration with the universities will develop national research priorities inenvironment,water and sanitation to guide public and private sector research and management interventions. 5.3.4Policy,Legal and Institutional Reforms In order to achieve environment integrity and sustainable resource management,the following reforms will beundertaken in the Plan period:•Revision of Environmental Management and Co-ordination Act (1999);•Development of Solid Waste Management Policy;•Formulation of a Research and Development Policy;•Revision of the Forest Policy and its subsidiary legislations;•Review of the Timber Act Cap 386 of the laws of Kenya;•Development of the Charcoal Policy;•Review of Water quality standards to ensure that they conform with the country's water situation and needs;•Enact a policy on trans-boundary water management;•Enact a policy on ground water protection;•Operationalisation of a national policy on mineral resources and mining;•Formulation of a national policy on the establishment of a national geological survey;•Development of implementation strategies for the National Environmental Sanitation and Hygiene Policy;•Implement an occupational health and safety policy. 5.4Population,Urbanisation and Housing "Adequate and Decent Housing in a Sustainable Environment" High population growth,rapid rural - urban migration,skyrocketing costs of housing construction materials and highcosts of housing finance and their implications on socio-economic development have been of concern and achallenge to the government since independence.The development of Vision 2030 constitutes an importantframework for the government's commitment to improve the welfare of her people especially in urban areas whereplanning for the high population on scarce land amidst high costs of housing is a big challenge.Rapid urbanisationmainly due to rural-urban migration and high urban growth rate are significant dynamics impacting on the socio-economic development of the Kenyan society.This to some extent is a result of the limited capacity of planningagencies in terms of the requisite technology,human resources and financial outlay,to prepare timely andsustainable physical development plans.Consequently this has led to constraints in provision of water,sanitation,security infrastructure,housing and transportation.Urban areas are symbols of prosperity and thus are engines of growth.The concentration of activities in urban areasallows for Specialisation and exchange-processes which are essential to economic growth.Nairobi in its current state,for instance,contributes to about 50 per cent of Gross Domestic Product in the country.It is these attributes that havemade it a regional hub in terms of service provision. 113 THE SOCIAL PILLAR Kenya Vision 2030 aims to provide the country's population with adequate and decent housing in a sustainableenvironment.Improvement in the quality of life of all Kenyans – the supreme goal of Vision 2030 – cannot be achieved iflarge sections of the rural and urban population are inadequately housed.The housing sector is characterised byinadequacy of affordable and decent housing,low-level of urban home ownership,extensive and inappropriate dwellingunits,including slums and squatter settlements.This is attributed to under-investment in low and middle-cost housing byboth the public and private sectors.Other constraints include an outdated legal and regulatory framework,uncoordinatedpolicy implementation,low private sector participation,insufficient capacity,poor governance,and inadequate financingto buyers and developers.In addition,research on low cost building materials and construction techniques has beenlimited thus not providing viable guidance to the development of the low cost housing in the sector. 5.4.1Situation Analysis,Emerging Issues and Challenges Population Population Size and Growth: Kenya's population in 2007 was estimated at 37.2 million and is projected to increaseto 42.4 million in 2012.High population growth rates recorded in the country has had the effect of large householdsizes which affects resources available to household members.Population density in Kenya increased from 19 to 49people per square kilometre in 1969 and 1999.Population projections indicate that,Kenya's population will remain youthful in the 2008-2012 period.The high numberof young people in the population is a result of decades of high fertility rates and is a powerful force for continuedpopulation growth as more young people move into childbearing ages.The segment of the population aged 15 to 24years old form a critical resource for future development.Decisions made by these young people on timing and numberof children will have long-lasting consequences for Kenya's population growth,and hence national development.Giventhe sheer size of the youth in the population,it is important to invest in young people's health and development byhighlighting the potential benefits – in terms of building human capital,capitalising on the demographic dividend,andbreaking the intergenerational cycle of poverty. Fertility: The population growth patterns experienced both at the national and regional levels of the country have beenmainly driven by the three demographic processes; fertility,mortality and migration.The level of fertility has been amajor factor underlying Kenya's population growth since it has contributed more to the country's population growththan any other demographic event.The Kenyan population experienced high fertility levels in the 1970s with TotalFertility Rate (TFR) estimated at about 7.9 children per woman.In the early 1980s,TFR was estimated at 7.7 childrenper woman while in the late 1980s TFR was 6.6 children per woman and declined to 5.4 children per woman in early1990s.In early 2000,TFR was estimated at about 5.0 children per woman.Though fertility has declined to these levels,it is still high and would still keep the population young.Childbearing is also common among teenagers in the countrywith about 23 per cent of teenagers (ages 15 to 19 years) giving birth each year. Mortality: High mortality levels were recorded in the 1970s,showed signs of decline in the late 1980s and early 1990sbut experienced a reversal in mid-1990s mainly due to HIV/AIDS pandemic.Recent data show significant declines in HIVprevalence rates,from an estimated prevalence rate of 13 per cent in the mid-1990s down to 6.7 per cent in 2003 to about5 per cent in 2006.Life expectancy at birth for the country improved from 35 years in 1948 to 49 years and 60 years in1969 and 1989 respectively but declined to 57 years in 1999 mainly due to the HIV/AIDS pandemic.Life expectancy isprojected to have improved to 58 years; lower than was recorded in the 1980s and is expected to improve further.Thisimplies higher survival and therefore an increase in the proportion of those aging in the population.Infant mortality wasestimated at 184 deaths per 1,000 live births in 1948,declined to 118 deaths per 1,000 live births in 1969 and then to 66deaths per 1,000 live births in 1989 but increased to 77 deaths per 1,000 live births in 2003. Migration :Majority of the population in Kenya still reside in rural areas and hence most types of migration in thecountry are rural-urban and rural-rural migration.The rate of urbanisation has increased from 15 per cent in 1979to 18 per cent and 19 per cent in 1989 and 1999 respectively.Urban population size increased from 1.1 million in1969 to 2.3 million in 1979 to 3.9 million in 1989 and then to 5.4 million in 1999.This increase has mainly been asa result of rural-urban migration.The changes have however constrained resources in the existing urban centressince services did not grow in tandem with growth of the population.As a consequence of the increasing urbangrowth rates,major urban centres in the country are facing increasing housing shortages,high unemployment,poverty,crime and slums and informal settlements. Urbanisation Kenya is rapidly urbanising with an expected average growth rate of 3.9 per cent per year for the period 2005-2010.The population shows remarkable shifts in urbanisation levels having increased from 8 per cent at independence to19 per cent in 1989 and 19.4 per cent in 1999.urbanisation is estimated to have reached over 25 per cent in 2007and is projected to account for about 32 per cent of the total population by the year 2012.This growth is largely dueto a high level of rural-urban migration fuelled by rural poverty and a dwindling of the per capita ownership of farmingand grazing land.The urbanisation process in the country has also been uneven dominated by one primate city-Nairobi,with a population of about 2 million.This is about four times bigger than the next largest urban centre(Mombasa) with a population of 660,080.Kenyan urban centres are characterised by spontaneous growth and haphazard development,which has mainly takenplace outside urban planning intervention.Nationally,physical planning is beset by a complex institutional arrangementwhere plan formulation is undertaken by Central government whereas implementation is the responsibility of Localgovernment.This has led to physical development plans not being informed by the local needs and therefore does notaddress local realities resulting to apathy during implementation.The situation is exacerbated by the glaring disconnectbetween national economic planning process and physical planning.Consequently,the physical development planshave not been recognised as essential instruments for the development of urban centres,which are engines of growth.There are also wide discrepancies in terms of the level of urbanisation and the distribution of urban centres acrossregions.It is for this reason that the six flagship projects on metropolitan regions of Nairobi,Mombasa,Kisumu-Kakamega,Kitui-Mwingi-Meru,Wajir-Garissa-Mandera and Nakuru-Eldoret are highly necessary as a correctivemeasure that will spread the benefits of urbanisation across the country.This will lead to the establishment andoperationalisation of the Metropolitan Area Authority whose task will be to assist the central government and localauthorities undertake comprehensive physical planning and zoning for the six metropolitan regions,as well as todevelop and enforce standards for urban development. Housing The Kenyan housing sector is characterised by inadequate affordable and decent housing,low-level of urban homeownership (16 per cent) and extensive and inappropriate dwelling units including slums and squatter settlements.It isestimated that out of a total 150,000 housing units required annually in urban areas,only an estimated 35,000 areproduced.In the rural areas it is estimated that there is a need to improve the quality of over 300,000 housing unitsevery year.The shortage of housing for low-income households is particularly acute in urban areas,with only anestimated 6,000 units,or 20 per cent of all houses produced catering for this group.This is attributed to under-investment in low and middle-cost housing by both the public and private sectors.Other constraints include; poorgovernance; an outdated legal and regulatory framework; and the high cost of finance for housing both to long termdevelopers and the end users (buyers).The housing shortage is both for owner-occupier and rental housing. According to government surveys,the quality and quantity of low-income housing is better in rural areas than in urbanareas; In fact,the main problem of housing in the rural areas is not that of adequacy but that of quality and lack ofbasic infrastructural services.In the urban areas,overcrowding,lack of adequate sanitation and pollution characterize urban slums posing serious health risks to residents.Unplanned informal settlements,on the other hand,pose aserious challenge to the socio-economic development of the country.With the demand for new housing units in urban areas currently standing at 150,000 units annually and only 23 percent of this demand being met,the national gap is big and requires an urgent solution,the shortfall is more acuteamong low-income households whose present demand is about 48 per cent of total new houses required in Kenya.More than 80 per cent of new houses constructed are for high and upper middle-income earners.Considering thatmore than 60 per cent of the Kenyan population is younger than 25 years,it is clear that the demand for adequatehousing will rise steadily as those aged 20 and below reach adulthood and start family life. Post-election violence impact on housing: The housing sector was negatively affected by the 2007 post electionskirmishes that led to destruction of housing,leaving many Kenyans without shelter.In addition people lived asIDPs in different camps spread across the country.The impacts of these skirmishes were worse in slums andinformal settlements.In Nairobi a total of about 9,000 housing units were destroyed affecting close to 100,000residents.Other urban centres most hit by the post-election skirmishes were Kisumu,Eldoret,Kericho,Nakuru andNaivasha. Stock and Quality: The distribution of housing stock in Kenya is skewed in favour of the rural areas.For instancefrom the 1999 Population and Housing Census statistics,82 per cent of Kenya's housing stock is in the rural areasleaving only 18 per cent in urban areas.The quality of housing is however dictated by cultural and environmentalfactors. 5.4.2Programmes and Projects for 2008 - 2012 One Year Recovery Strategy Specific initiatives in housing and urbanisation aimed at reversing the damages caused by the post-election skirmishesinclude:•Develop a strategy for resettlement of Internally Displaced Persons (IDPs);•Addressing safety and security issues;•Advocacy for Peace and co-existence;•Creating incentives to attract investment;•Re-Investment in basic infrastructure; and•Building of houses for IDPs. Flagship Projects for 2008 - 2012 Prepare and implement strategic development and investment plans in six metropolitan regions (Nairobi,Mombasa,Kisumu-Kakamega; Nakuru-Eldoret,Wajir-Garissa-Mandera,Kitui-Mwingi-Meru).Similar plans will also be developedfor special border towns and all other municipalities.The flagship projects will include:•Preparation of a national land-use plan in order to facilitate better urban planning;•Installation of physical and social infrastructure in slums in 20 urban areas to make them formal settlements,permit construction of permanent houses and attract private investment;•Producing 200,000 housing units annually by 2012 under PPP and other initiatives ;•Establishing housing technology centres in each constituency to increase access to decent housing by promotinglocation-specific building materials and low-cost housing; Establishing a secondary mortgage finance corporation to increase access to housing finance; and•Enacting the Housing Bill,2006 to legislate for a one-stop housing development approvals mechanism to fast-track approval of housing plans and reduce the time cost of construction. Other Programmes Population •Undertake the 2009 Population and Housing Census and Socio-Demographic Surveys to inform Policy andProgrammes;•Undertake Advocacy and Public Education and Communications on the effects of population change ondevelopment; and•Establish and strengthen partnerships and coalitions to mobilise support for policy and programmes. Urbanisation •Preparing Physical Development Plans for three Resort Cities (Isiolo and two others at the Coast;•Establishing waste management systems in selected Local Authorities; and•Preparation of integrated physical infrastructure investment plans. 5.4.3Policy,Legal and Institutional Reforms Reforms on population,housing and urbanisation will include:•Review of the current population policy;•Review and harmonisation the existing legal and institutional framework governing urbanisation;•Enactment of the Housing Bill 2006,to legislate for a one-stop housing development approvals mechanism to fast-track approval of housing plans and reduce the time cost of construction•Enactment of the Landlord and Tenant Bill•Formulation and implementation of Urban Development Policy and the National Land Policy; and•Preparation of a markets development policy. 5.5 Gender,Vulnerable Groups and Youth "Gender Equity in Power Resource Distribution,Improved Livelihoods for all Vulnerable Groups and a Responsible,Globally Competitive and Prosperous Youth" In order to realise the aspirations of Vision 2030 goals,the government will continue to mainstream gender intogovernment policies,plans,budgets and programmes as an approach geared at achieving gender equity in all aspectsof society.Moreover,the government will increase the participation of women through the affirmative action policy ofat least 30 per cent representation in all economic,social and political decision-making processes and platforms aswell as through economic empowerment.As a positive step to reduce vulnerability across gender lines,deliberateefforts will be made to reduce levels of poverty across the board,prohibit retrogressive cultural practices and socialills as well as improve access to essential services.In addition,the government will ensure that the country upholdsthe basic rights of children in line with internationally recognised standards.The government will also ensure that thecountry produces a globally competitive labour force inclusive of young people at all levels,through youthempowerment programmes and policies. 117 THE SOCIAL PILLAR 5.5.1Situation Analysis,Emerging Issues and ChallengesGender The government has introduced a number of initiatives on gender mainstreaming.This includes the appointment ofgender officers in all ministries and state corporations and the ratification of relevant International Instruments.However,despite these achievements,glaring gender gaps still exist in access to and control of resources and socio-economic opportunities.A case in point is that,only 3 per cent of Kenyan women own title deeds thereby,minimisingtheir opportunities to access credit.It is important to note that the participation of women in modern sector wageemployment has risen gradually since independence from 12.2 per cent in 1964,29 per cent in 1999 to 30 per centin 2007.Nevertheless,women are still grossly under represented in senior decision-making positions within the civilservice.For instance,in the top most levels of the civil service,male representation stands at 84 per cent,against 16per cent female representation.At the lower cadres of the Civil service,female representation stands at 74 per cent,with 26 per cent male representation.The participation of women in senior decision-making positions is constrainedby mobility and time limitations resulting from the challenges of trying to reconcile family duties,career development,productive activities and management of community resources.While women account for slightly more than half of the total population (50.7 per cent) and comprise a large votingpopulation,they are still under represented in strategic decision-making processes.For instance,in 2002,the total offemale Members of Parliament was 10 translating to 4.8 per cent.In the current 10th Parliament,only 21 Membersof Parliament are women,representing a paltry 9.6 per cent.The following are the ratios of male to femaleappointments in the Grand Coalition Government:•7 female Ministers as compared to 35 male Ministers;•6 female Assistant Ministers as compared to 46 male Assistant Ministers;•21 female MPs as compared to 200 male Members of Parliament;•11 female Ambassadors/High Commissioners as compared to 29 male Ambassadors/High Commissioners;•6 female Permanent Secretaries as compared to 38 male Permanent Secretaries; and•0 female against 8 male Provincial Commissioners.Gender specific violence and vulnerabilities prevent particularly the female gender from enjoying a high quality of lifeand equal opportunities.For example,reported cases of domestic violence and rape (or attempted rape) have been onthe increase.Similarly,the girl-child health educational and career development has been negatively affected byretrogressive cultural practices such as female genital mutilation (FGM) and early marriages.Empirical evidence reveals that there is a significant gap in poverty levels between female headed and male headedhouseholds.In rural areas,48.8 per cent of male headed households were classified as poor as compared to 50 per centfor female headed households.This poverty gap does not appear significant in rural areas when compared to urban areas,where 30 per cent of male headed households are poor while female headed households constituted 46 per cent.Following the post election violence,men and women were affected differently numerous cases of women's rightsviolations such as rape were among the most immediate challenges.In total,354 cases of Sexual and Gender Based Violence (SGBV) were reported between December 24th,2007 and February 29th 2008.Assessments show thatmany other SGBV went unreported.In addition,women formed the majority of Internally Displaced Persons (IDPs) inthe camps.Several women experienced trauma due to the loss of family members and disrupted social ties,especially those in cross-cultural/inter-ethnic marriages.In addition,pregnant women,lactating mothers and peopleliving with HIV/AIDS were exposed to higher risks of malnutrition and deteriorating health.Overall,although the post-election crisis caused a huge economic impact affecting both genders,women suffered more from the loss of lives,property,agricultural livelihoods and businesses.However,the extent of losses for both genders was broadly experienced,extending from materials and equipment for the home; milling facilities and access to marketing points. Vulnerable groups Vulnerable persons are mainly Orphans and Vulnerable Children (OVC),Persons with Disabilities (PWDs),the agedpersons,offenders and ex-offenders,widows,widowers,internally and externally displaced persons,marginalisedpersons and pastoralists living in the Arid and Semi Arid Lands (ASAL),among others.All these groups are faced withmultiple challenges in their daily life including high level of poverty and various forms of deprivation.It is estimatedthat these vulnerable persons comprise about 40 per cent of the total population.The number of vulnerable children remains high due to the diverse nature of vulnerabilities.There are about 2.4 millionorphans in the country,which includes over 1.2 million children orphaned due to HIV and AIDS.Additionally,there are3,500 children in 25 Statutory Children Institutions and 39,840 OVC under the Cash Transfer Programme.The numberof children in need of care and protection has been on the increase.Over 60,000 cases involving children are handledin the districts every year.Helpline 116 toll free has been launched by the Children's' Department and will be devolvedto all provinces where children can get advice and counselling services when in distress.In addition,child labour inKenya is quite high.Although this situation has been acerbated by poverty it nevertheless constitutes a significant shareof household income.The unfortunate trade off is that children who sacrifice schooling for employment are highly likelyto be poor as adults.Persons with Disabilities (PWDs) in Kenya consist of approximately 3.7 million people.The majority of these people livea vicious cycle of poverty due to stigmatisation,limited education opportunities,inadequate access to economicopportunities and access to the labour market.Accordingly,the government enacted The Persons with Disabilities ActNo 14 of 2003 to ensure that the issues and concerns of PWDs are mainstreamed.Only 18 per cent of Kenya's labour force contributes towards some form of pension.Lack of income in old age explainswhy the incidence of vulnerability among the aged in Kenya is high.This is supported by the fact that the poorest agegroup consists of individuals aged 56 years and above.In rural areas,this group forms 55 per cent,while in urbanareas,the group consists of 48 per cent (source:KNBS).Interestingly,the incidence and depth of poverty of house holdheads increases with age and is much more evident in rural areas than in urban areas.Eighty per cent of Kenya consists of Arid and Semi-Arid Lands (ASAL),which are prone to disasters such as droughts andfloods.An estimated population of 7.4 million constitutes the vulnerable and food insecure population in these areas.Tofurther compound the problem,Kenya has a huge refugee burden.The country currently plays host to an estimated239,800 refugees from the region.Most of these refugees lack the capacity to manage risks such as unemployment,illness,disability and old age.Most of these refugees are women and children. All the aforementioned vulnerable target groups will require adequate mechanisms to address their concerns throughprogrammes and projects to alleviate their conditions and enable them to get equitable opportunities to participate insocio-economic activities.The post election crises compounded the plight of these vulnerable groups throughout thecountry.An estimated 350,000 people who were displaced had to seek refuge in 181 camps scattered throughout thecountry.Although profiling of IDPs in various camps was undertaken,there were no targeted interventions specific tothe PWDs as a special category of persons.Hence,the general targeting did not take into consideration the specialneeds of PWDs.Moreover,no tracking was done for the IDPS who either took refuge with relatives or fled to theirancestral home areas.This situation necessitates an urgent need to profile the IDPs and for a needs assessment to be undertaken of thePWDs to identify their special needs for resettlement and reintegration.People living with HIV/ AIDs were adverselyaffected by the post election violence.Indeed,many had their treatment regimes disrupted as a result of the crisis and their subsequent displacement.The PLWHA,especially lactating mothers and children were further exposed to the risk of serious malnutrition and deterioration of health especially in cases where food was unavailable. Youth In Kenya,the youth are defined as persons aged between 15 and 35 years.Currently,young people constituteapproximately 38 per cent of the population,of which 57 per cent are female.Notably,it is at this age spectrum thatbeneficial human capital formation is achieved.Decisions made during this transitional period have long term impactson how human capital is kept safe,developed and deployed.The number of youth is projected to increase from the current 11 million to 16 million during the period under review.Such a significant change in the number of the young people is likely to lead to increased crime,drug and substanceabuse and other symptoms of social disorder.Consequently,initiatives to mitigate such vices need to be put in place.Minimal involvement of young people in gainful employment and economic participation as well as their exclusion fromdecision making poses a threat to the stability of this country.For instance,despite the fact that 60 per cent of the totalactive labour force in the country consists of young people,80 per cent of the unemployed are youth.In addition,92per cent of the unemployed youth have no vocation or professional skills training.On the other hand,about 500,000graduates enter the job market every year.Unemployment among the youth leads to an increase in crime rates,whichmay explain the increasing formation of youth criminal gangs and militia groups in Kenya.Over 60 per cent of allconvicted criminals in Kenya are young men aged between 16 and 25 years old.This may be a credible reason whythe youth played a big role in the 2007 post-election violence.Over 60 per cent of new HIV infections are diagnosed among the youth.The most affected age bracket among womenis the 25 – 29 age group,while the most affected among the men is the 40 – 44 age group.It is evident that HIV/ AIDSprevalence is highest among the economically active age group.The situation is further aggravated by self destructivetendencies such as drug abuse,high risk sexual behaviour and teenage pregnancies.The 2007 post election violence and related events demonstrated that having a large number of relatively welleducated but unemployed youth is not just a serious deterrent to economic growth,but also poses a real threat tonational security.During the chaos,the youth played the role of combatants and engaged in destructive activities andconfrontations with law enforcing officers.In urban areas,many assumed the role of landlords and forcefully extortedrent and protection fees.Many youth,particularly those living in low income areas,effectively engaged in acts ofbanditry during the strife.Enormous challenges facing the youth were exposed such as their exclusion andmarginalisation from decision making policies that directly affect them.In addition a number of the youth (particularlygirls) suffered sexual and gender based violence.The violence also had an adverse effect on athletics in the sense thatthe country lost a number of prominent athletes in the Rift Valley province.In addition,athletes who were in theprocess of preparing for major International competitions could not do so adequately due to the state of insecurity inthe country.It therefore became evident that there is a lack of operationally effective mechanisms of integrating themajority of Kenyan youth into mainstream economic activities. 120 VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 5.5.2Programmes and Projects for 2008 – 2012 In order to deal with the challenges previously highlighted (and other emerging issues),during 2008 – 2012 thegovernment will pursue the following projects and programmes: Gender One Year Recovery Strategy •Develop gender disaggregated profiling of IDPs;•Introduce programmatic short-term interventions to provide psycho-social support for IDPs and support peacebuilding initiatives;•Enhance security in the affected areas;•Actively support the participation of women at all levels; and•Establish committees for peace building and reconciliation efforts. Flagship Projects for 2008 - 2012 Gender mainstreaming: This will be introduced into all government policies,plans and programmes to ensure thatthe needs and interests of each gender (i.e.women and men,girls and boys) are addressed.There will be a deliberateeffort to recognise and acknowledge the various ways in which women make a contribution to the economy andindeed,the society as a whole.This will bring a considerable degree of gender awareness in all ministries andgovernment agencies.Furthermore,the operationalisation and strengthening of gender divisions in all ministries andstate corporations will be implemented to aid the gender mainstreaming process. Gender disaggregated data: This information that accurately portrays the gender balance in all sections of thecountry will be availed to form the basis for developing gender-sensitive policies,plans and programmes. Affirmative Action Policy: Once this policy is instituted,it will ensure that women have at least 30 per centrepresentation in recruitment,promotion and appointment at all decision making levels.The aim of this is to increasethe number of female participation and representation. The Women Enterprise Fund: The fund will continue to provide Kenyan women with access to alternative financialservices.It is expected that the loans women will access as a result of the establishment of the fund will have a positiveimpact on family welfare.In addition,it will increase the estimated earned incomes (purchasing power parity).By usinga group approach,it is envisioned that the fund will serve to strengthen women's voices and bargaining power withinthe home as well as the wider community. Additional programmes: These will be implemented in close collaboration with other ministries and governmentagencies including:•Promote campaigns to eliminate retrogressive cultural practices such FGM and early marriages;•Double the number of births attended to by skilled health personnel;•Reduce the rate of high risk sex through increased access to safe sex methods;•Use the de-centralised funds to provide social amenities at close proximity in order to reduce the amount of timetaken by people to access services; and•Put in place an efficient legal system to help protect the rights of people in order to reduce gender-based violenceand any human rights violations. Vulnerable Groups One Year Recovery Strategy The government,in collaboration with stakeholders,will implement the following projects to help in the 2007 post-election recovery:•Coordinate humanitarian relief efforts in the resettlement of IDPs;•Reintegration of IDPs;•Addressing special needs of the PWDs;•Facilitate the provision of emergency aid and supplies to the PWDs in camps and host communities;•Establish committees at various levels,with PWDs representation to oversee the implementation of emergencyrelief operation and facilitate protection of the displaced;•Provide more targeted psycho-social counselling programmes to People Living with HIV and AIDS (PLWHAs),placing emphasis on children and the physically challenged in the resettlement areas;•Facilitate access to ARV treatment in sites close to resettlement areas,including a programme to supplement theprovision of food supplement for a period of six months. Flagship projects for 2008 - 2012 Establishment of a consolidated Social Protection Fund: This will be established for cash transfers to Orphanedand Vulnerable Children (OVCs),the elderly and other persons facing vulnerabilities. Implementation of the Disability Fund: This fund will be inclusive of appropriate budgetary allocations to providefinancial assistance to Persons with Disabilities for their socio-economic empowerment. Representation of PWDs in decision making processes at all levels: This will ensure that issues that directly affectthe PWDs are adequately addressed in policies and legal frameworks,programmes and projects.Other programmes:These will include:•Developing an integrated data management system for vulnerable groups;•Empowering children through improved children rehabilitation programmes;•Increasing the level of public awareness on the needs,aspirations and capacities of vulnerable persons;•Establishing the National Drought Contingency fund;•Enhancing the Hunger Safety Nets Programme;•Implementing HIV/AIDS programmes;•Strengthening Child protection programmes;•Enhancing alternative family care services (adoption,foster care,and guardianship);•Eliminating child labour,discrimination and malpractices as well as other retrogressive practices causingvulnerabilities among the target groups;•Improving and expanding existing prison penal institutions for youthful offenders,aged,and other vulnerablegroups; and•Restructuring pension schemes to increase savings for the old in order to reduce their dependency. YouthOne Year Recovery Strategy The government,in partnership with other stakeholders,will implement the following projects to address the 2007post-election violence:•Peace building and reconciliation programme targeting the youth;•Equipping the youth with knowledge,attitudes and skills in conflict resolution to campaign for peaceful coexistence in their neighbourhood and beyond; and•Engage the youth in reconstruction of the infrastructure. Flagship projects for 2008 - 2012 There will be full integration and harmonisation of issues affecting the youth into every aspect of public policies andprogrammes across all ministries and government agencies.This will produce more focussed,responsive and youthoriented strategies. Affirmative action policy: The policy will ensure that the youth have a 30 per cent representation in appointments topublic service,management and development committees,political,social and economic sectors.The needs of theyouth will therefore be implemented to increase their representation and participation. Revision of education and training curriculum: This will be conducted at all levels of learning to improve theproduction of skills that are demand-driven.Further,the curriculum will teach behavioural and life skills in order toimpart positive character traits that will help the youth to make appropriate choices in life. Revitalisation of Youth Polytechnics: This will facilitate the training of young people in technical,vocational andentrepreneurial skills in an effort to increase their productivity and equip them with skills to participate fully inproductive activities.In addition,they will also be equipped with creative skills to deal with advances in technology. Increase of allocation to secondary and tertiary level bursary programmes: The increase in allocation of fundswill greatly increase the opportunities particularly for destitute young people to continue with education irrespective oftheir poor background.It will also reduce the burden on parents who are unable to pay for their children's secondaryand tertiary education. The Youth Enterprise Development Fund: The youth will benefit from accessing this Fund since effectivemechanisms will be put in place for easier access to credit and collateral.In addition to accessing the Fund,the youthwill be effectively equipped with appropriate skills to creatively engage in economically viable activities. Youth Empowerment Centre: Centres will be rehabilitated or established in every constituency in the country.Thepurpose of such centres will be to creatively engage young people with a view to tap young talent and createopportunities for them.A further purpose of these centres will be to minimise the prevalence of drug and substanceabuse among the youth.The centres will be equipped to provide services such as counselling and health services,ICTfacilities,library and information services,performance and training facilities in music,dance and the performing arts.The centres will also provide basic literacy and continuing education opportunities for school leavers in eachconstituency. International Academy of Sports: This Academy will be set up at Moi International Sports Centre Kasarani where landhas already been earmarked for development.This will be an institution for advanced training in all areas of sports. Moreover,it will cater for top level skills development of the sports men and women whose talent is tapped anddeveloped from the grassroots level countrywide.The Academy will also train sports administrators,instructors,andcoaches.Further,it will serve as an international centre for excellence in sports and thus contribute to Kenya's tourismpackage. Regional Sports Stadia: The government will establish 30 regional stadia around the country to promote thedevelopment of sports within each of the regions as well as tap the immense talent of the youth. Establishment of a Sports Lottery Fund: The Fund will provide a tool for raising funds targeting sports development.It is estimated that the lottery fund will have the potential to inject more than Kshs 500 million into the sports budgetannually.The funds raised will then be used for the less developed sports in the country and to supplement the budgetsof major sports events. International Centre for Arts and Culture: This Centre will be located at Moi International Sports Centre,Kasarani.Itwill house a National Hall of Fame to honour contributions and recognise the special talent of Kenyans from all walksof life in the areas of sports,film,music,culture and other areas. One billion tree planting campaign under the "Trees for Jobs Programme": This Campaign will be implementedorder to engage the youth,address the global campaign on environmental conservation and help increase the forestcover of the country. Roads 2000 and other Labour intensive public projects: The Roads 2000 project is currently underway under theimplementation of the Ministry of Roads and Pubic Works.The objective of this project is to create short-term labourintensive employment for young people. Additional programmes •Campaign programmes to reduce new HIV and AIDS infections,teenage pregnancies and drug abuse among theyouth;•Intense youth rehabilitation programmes for drug addiction and criminals;•Promotion of a sustainable reading culture through expansion of Kenya National Library Services (KNLS); and•Establish a systematic programme to document,conserve,preserve and disseminate the music and danceheritage of Kenya. 5.5.3Policy,Legal and Institutional reforms The policy,legal and institutional reforms to be addressed will include the following:•Implementing a national policy on FGM;•Developing and implement the national policy on Children's rights;•Developing a National Youth Council Bill;•Implementing the Sports Bill and Kenya National Sports Stadia Authority Bill;•Revising the Kenya National Library Act Cap 225;•Developing a national music policy;•Developing a national cultural policy;•Implementing the Adult and Continuing Education policy;•Developing a National Policy for Youth Polytechnic and Vocational Training;•Implementing the Betting Lotteries and Gaming Act (Cap 131 of 1966); and•Developing a national policy on the Ageing and Elderly. 6. THE POLITICAL PILLAR "Moving to the Future as One nation" 6.0Overview The government is committed to a wide ranging governance reform programme over the five year plan period that will takeinto consideration all the lessons learnt from the 2007 post-election crisis.During the ERS period,the country madeconsiderable progress in the areas of governance,security and the rule of law.With the launch of Vision 2030 ,thegovernment seeks to focus on reforms already initiated in the sector.This will entail not only initiating new programmes,but also ensure respect of rights of citizens in law enforcement.It will also deal with any emerging governance and securityissues during the Plan period.The formulation of these strategies,projects and programmes will be guided by the PoliticalPillar of Vision 2030,which envisions "a democratic political system that is issue-based,people-centred,result-oriented and accountable to the public" .Kenya has learnt a lot from the 2007 post-election crisis.Events that followed the 2007 election and the path thatKenya has pursued in returning to normalcy have demonstrated that,despite the remarkable progress made ingovernance and the rule of law,a lot still remains to be done.Furthermore,a highly accelerated reform effort is nowrequired to move the country to the path projected in the Vision 2030 .The sector experienced psychological traumaparticularly the Electoral Commission of Kenya,the Judiciary and the Police Force.For the first time sinceindependence,the relations between some of Kenya's 42 ethnic communities became strained and took a negativeturn towards violence of a magnitude that the country has never witnessed before.Hence,there is an urgent need toaddress and solve the underlying reasons behind the ethnic tensions,violence and destruction of life and propertyexperienced in Kenya.To this effect,the strategy for governance and the rule of law will focus on rebuilding confidence among Kenyans thattheir access to justice is guaranteed.Electoral disputes as well as other types of disputes will need to be resolvedthrough legally-provided channels.Moreover,structures need to be put in place to ensure that Kenyan citizens can infuture participate in free,fair,credible and decisive elections. 6.1Governance and the Rule of Law6.1.1Situation Analysis In the Governance,Justice and Law and Order sector,progress since ERS has included the creation of a policy-focusedMinistry of Justice and Constitutional Affairs,as the flagship reform institution in the sector.The government has alsoenacted the Anti-Corruption and Economic Crimes Act,2003 (No.3 of 2003),which facilitated the creation andoperationalisation of the Kenya Anti-Corruption Commission (KACC),Kenya Anti–Corruption Advisory Board and SpecialMagistrates (to adjudicate over corruption and economic crime cases); and enactment of the Public Officer Ethics Act,2003 (No.4 of 2003).The legal framework for the fight against corruption was bolstered following the enactment ofthe Statute Law (Miscellaneous Amendment) Act,2007 which enhances KACC's asset recovery and investigativepowers,while making public officer wealth declarations publicly accessible.Other key governance institutions that have been established during the period include the National Anti-Corruption Campaign Steering Committee (NACCSC),the Public Complaints Standing Committee (PCSC),and the Kenya NationalCommission on Human Rights (KNCHR),the Kenya National Audit Office (KENAO) and the Public Procurement Oversight Authority (PPOA).On its part,the Department of Public Prosecutions (State Law Office) established two new specialisedunits,to deal with Anti-Corruption,Economic Crime,Serious Fraud and Asset Forfeiture,Counter-Terrorism,Narcotics,Organised Crime and Money Laundering.In practice,the Office of the Attorney-General continues to institute and sustain prosecutions of persons involved incorruption and economic crime,while KACC produces publicly accessible quarterly and annual reports on the progressmade in anti – corruption work (investigations,prevention,public education and asset recovery).Further,the AttorneyGeneral produces an annual report on the status of the prosecution of cases referred to him by KACC.To address thelong-standing issue of pending bills,a Pending Bills Committee was established in 2005 to review and advice on allpending contract bills.By July 2007,this committee had reviewed pending bills in the amount of Kshs.89.97 billion underthe development vote and Kshs.15.07 billion under the recurrent vote.The work of this Committee continues to date.The constitutional review process was re-started in 2003,and led to the proposed New Constitution of Kenya,whichwas subjected to a national referendum on 21st November 2005.Following the rejection of this Draft Constitution,thegovernment set up a Committee of Eminent Persons in 2006 which received stakeholder views on the way forwardand recommended a national healing and reconciliation process; and an inclusive multi-stakeholder approach tofinalising the constitution,with an emphasis on the contentious issues.The Judicial Commission of Inquiry into the Goldenberg Affair was established in 2003 to look into the most egregiouscases of corruption.Its report was completed in 2005 and was thereafter adopted by the government on 9th January2006.It is currently being implemented through a number of measures,including prosecution of suspects,legal andlaw reform and administrative action.Further,a taskforce on Truth,Justice and Reconciliation Commission establishedin 2003 received stakeholder views and provided the government with specific recommendations on the way forward.Finally,in order to enhance the legal framework for good governance,the following laws have been enacted and arenow in force:Public Procurement and Disposal Act (2005); Public Procurement and Disposal Regulations,2006,Political Parties Act,2007,Kenya National Commission on Human Rights Act,2002,Government Financial Management Act (2004); Privatisation Act,2005,Public Audit Act (2003) and Witness Protection Act (2006).A modernisedCompanies Act is now in its final stages of drafting.Progress in the area of rule of law,including justice and penal reform,has focused on capacity enhancement.As a wayof increasing the capacity of the Judiciary,a total of 37 judges were appointed,and 150 magistrates hired during theperiod.In addition,10 senior administrators and 58 clerical officers were employed.An annual colloquium for judgeshas been held annually since 2004,while formal training programmes are firmly in place for heads of station,accountants and executive officers,as well as induction courses for all newly recruited magistrates.Prisons officershave also been trained extensively in human rights,as well as specific skills training relating to modern managementof rehabilitation and reformation programmes.In a major step forward for commercial and civil justice,the Companies and Civil Registries have been refurbished andautomated,while automation of select registries (Public Prosecutions,Registrar General and Public Trustee) is in progress.Further,a draft bill on Alternative Dispute Resolution (ADR) has been developed,while the Chief Justice-appointed Rulesand Expeditious Disposal of Cases Committee has completed a report on the efficacy of court rules and procedures (andalternatives such as ADR),which now awaits stakeholder validation.In addition,adjudication of complaints againstadvocates has been improved following the promulgation of rules under Section 54 (3) of the Advocates Act.With regard to infrastructure,a total of 40 courts have been renovated,refurbished or built anew,while high courtcommercial divisions have been established in Nairobi and Mombasa.In addition,the budgetary provisions for the Prisons department have been significantly enhanced,with ring-fenced resources for staff housing; and tools andequipment provided for inmates' skills development.Finally,in order to deepen penal reform,the Community Service Orders (CSO) Act is now fully operationalised,with all judicial and probation officers trained on its implementation.Further,the Prisons Act has been fully reviewed in linewith modern management and human rights practice.Beyond the ERS,the specific focus on governance and the rule of law has mainly been through the Governance,Justice,Law and Order Sector (GJLOS) Reform Programme.In addition to infrastructure and capacity improvements,the programme has focused on the modernisation and reform of policies,laws and strategies.Specific policy andstrategy efforts undertaken to date include the National Anti-Corruption Plan (NACP) and the related GovernanceStrategy for a Prosperous Kenya; National Prosecution Policy; Legal Aid and Education Policy (supported by a pilot Legal Aid and Education programme commenced in the 2007/08 fiscal year); Action Plan on Gender-Sensitive Legal Reforms;Child Adoption Guidelines and a National Policy on Orphans and Vulnerable Children.A further key initiative known asthe National Action Plan on the Promotion and Protection of Human Rights is at an advanced stage of implementation.Comprehensive policy and legal frameworks are under finalisation in the areas of "plea bargaining"and legaleducation.Sector-specific laws passed in the Ninth Parliament include the Sexual Offences Act and the Political Parties Act,while other laws,including the Children's Act are under review.The new bills presently under finalisation includethe Elections Bill,Marriage Bill,Matrimonial Property Bill,Domestic Violence (Family Protection) Bill,PrivateProsecutions Bill,Companies Bill,Insolvency Bill,Partnership Bill and Small Claims Courts Bill among others.Significantly,national case law reporting through Kenya Law Reports,has been re-introduce for the first time in 20years.Other new innovations in the sector include specialised anti-corruption tools such as the Whistleblower (BKMS)system and a computerised investigation system established at KACC.Additionally,the provision of a modern researchand library centre for Parliament is now 80 per cent complete.It is important to note that the Electoral Commissionmade progress in computerising its voter register and reviewing the electoral boundaries.Further,the Laws of Kenyaare now freely available on line via the National Council on Law Reporting. 6.1.2Emerging Issues and Challenges Despite the recent progress made within the sector,the areas of governance and the rule of law are still faced withseveral challenges that must be addressed for Vision 2030 to be effectively realised.In so doing,the emphasis ofMTP 2008-2012 (as the first five-year time horizon for Vision 2030 ) will be focussed more on structural challenges,which will create a systematic basis for dealing with operational and administrative constraints.The challengesinclude the following:•Inadequacy of the current Constitution and the need for a modernised,rights-based and democratic constitutionalorder especially in the light of numerous constitutional reform efforts;•Inadequate and outdated policies,laws and regulations with regard to governance,human rights,justice and thewider rule of law;•Inadequate commitment to patriotism,national values and norms that uphold good governance (democracy,ethicsand integrity,human rights,justice for all and respect for the rule of law) and national cohesion at the individual,institutional and national levels;•Ineffective justice and dispute resolution mechanisms to deal with disputes,conflicts,injustice,rights abuses andoutright crime(particularly contact crime)– in light of the 2007 post-election crisis;•Low public confidence in governance and rule of law institutions,especially after the events succeeding the 2007elections; 127 THE POLITICAL PILLAR •Inadequate regard for the social and human dimensions of governance,justice,law and order; particularly theneed for post-trauma counselling for both victims as well as serving officers;•Highly under-capacitated or under-motivated institutions; and•Weak inter-agency cooperation and cross-agency collaboration across governance and the rule of lawinstitutions. 6.1.3Programmes and Projects for 2008 - 2012 Programmes and projects to be implemented within this plan period are categorised into three broad groups,namely:•Flagship projects,which take into account the post-2007 election crisis and therefore aim to build a stronggovernance and rule of law foundation for the achievement of Vision 2030 ;•Other new and ongoing programmes across four strategic priority areas; and•Sector-wide initiatives within the scope of the GJLOS Reform Programme. Flagship Programmes and projects for 2008 - 2012 Following the signing of the Accord in February 2008,a 90-day National Reconciliation and Emergency Social andEconomic Recovery Strategy was developed to address pressing issues of recovery,resettlement,reconstruction,rehabilitation and reconciliation.This Strategy would also initiate steps towards building a firm and solid foundation forthe future.During the early part of the Medium-Term Plan period,the following national initiatives will be undertaken: Constitutional Reform: A draft new Constitution will be finalised and presented to the general public through anational referendum.The specific measures that will go into the new constitution will be drafted by experts,stakeholders,various leaders and legislators.It will take full account of the nation's history,draft constitutions that werepresented to Kenyans in 2005,the 1963 constitution and all the amendments made to it after that date. TJRC Process: An independent Truth,Justice and Reconciliation Commission (TJRC) will begin its operations in2008/09 – after the necessary legal framework is put in place.It is expected that the TJRC will complete its work within two years of its establishment. Kriegler Committee: The Independent Electoral Review Committee (IREC) was established in the 2007/08 fiscal yearwith the mandate to investigate all aspects of the 2007 Presidential election.It is expected to finalise its operationsand present a comprehensive report to the relevant authorities in the 2008/09 fiscal year. Commission on Post-Election Violence: This non-judicial Commission has the mandate to investigate the facts andcircumstances related to acts of violence that followed the 2007 Presidential Election.Having been established in the2007/08 fiscal year,it will finalise its operations and present its report to the relevant authorities in the 2008/09 fiscal year. National Cohesion: In order to promote a lasting national cohesion,a permanent Ethnic and Race RelationsCommission of Kenya will be operationalised into law in the 2007/08 fiscal year.Thereafter,it will commence itsoperations in the 2008/2009 fiscal year,to deal with grievances arising from inter-ethnic relations,and particularly theproblem of negative ethnicity. Post-Election Legal Counselling: Kenya's pilot Legal Aid and Education programme will be enhanced and fast-tracked in its six pilot locations.It will have a focused legal counselling component directed at Kenyans affected andtraumatised by the post-election events. Other Programmes In addition to the Flagship projects,which are national in nature,other programmes in the area of governance and therule of law will be guided by four main initiatives as stipulated in the Political Pillar of Vision 2030 ,namely:•The Rule of Law;•Electoral and Political Processes;•Democracy and Public Participation; and•Transparency and Accountability.The Vision 2030 initiatives will therefore be delivered through the following programmes:•Legal,Ethics and Constitutional Reform Programme;•Human Rights Programme;•Legal Education Programme;•Legal Services Programme;•Dispensation of Justice Programme;•Judicial Reform Programme;•Audit Services Programme;•Legislation and Oversight Programme;•Electoral Processes Programme;•Anti-Corruption Programme;•Prison Services Programme;•Probation and After-care Services Programme; and•Governance,Justice,Law and Order Reform Programme. Strategies for delivering Programmes and ProjectsThe Rule of Law: Under the Rule of Law initiative,the Vision 2030 aspires towards "adherence to the rule of law applicable to a modern,market-based economy in a human rights-respecting state" .The specific goal for 2012 is toenact and implement a legal and institutional framework vital for promoting and sustaining fair,affordable andequitable access to justice.The specific strategies will involve:•Aligning the national policy and legal framework along the chain of justice,with the needs of a market-basedeconomy,national human rights and gender equity commitments;•Increasing service availability and access including reducing barriers to justice;•Streamlining the functional organisation and introducing professionalism in legal and judicial institutions,(including police and penal institutions) to enhance inter-agency co-operation; and•Inculcating a culture of compliance with the law and decent human behaviour Electoral and Political Processes: Under Vision 2030 ,the Electoral and Political process aims at promoting "genuinely competitive and issue-based politics" .The overall goal for 2008-2012 is to enact and operationalise the necessary legaland institutional frameworks to support issue-based political processes.The strategies to be implemented include:•Introducing laws and regulations governing political parties;•Enhancing the legal and regulatory framework governing the electoral process;•Conducting civic education programmes to widen knowledge and participation among citizens,leading to aninformed and active citizenry;•Strengthening laws on non-discrimination to promote the inclusion of women and disadvantaged groups intoelectoral and political processes; and Enriching the quality of parliamentary debate by providing Members of Parliament with relevant information onproposed laws and policies.The following is a summary of the envisaged Electoral and Political Process programmes: Democracy and Public Participation: Under Democracy and Public participation,the Vision 2030 underscores a "people centred and politically engaged open society" .Accordingly,the goal for 2012 is to enact and operationalise necessary policy,legal and institutional framework to enhance democratic participation.The specific strategies will include:•Pursuing constitutional and legal reforms necessary to devolve power and support local governance;•The encouragement of formal and informal civic education programmes;•The promotion of open engagement between the government,civil society and private sector; and•The promotion of free flow of information.The following is a summarised version of the specific strategies under Democracy and Public Participation: Transparency and Accountability: Under Transparency and Accountability,the Vision 2030 emphasises on: "transparent,accountable,ethical and results-oriented Government institutions". A transparent and accountablesystem of governance is expected to promote integrity,free flow of information and enhance the accountability ofleaders to the citizenry.In order to achieve this vision,reforms in the legal and administrative systems will be identifiedand prioritised in the medium-term to provide an enabling environment for the transformation of the governancesystem which will in turn,make it more transparent and accountable.The goal for 2012 is "to enact and operationalise the necessary policy,legal and institutional framework needed to strengthen public transparency and accountability". The specific strategies to be pursued in the Plan period include:•Strengthening the legal and institutional framework for anti – corruption,ethics and integrity;•Encouraging public access to information and data;•Establishing a legal framework to promote compliance with the Codes of Conduct and Ethics;•Review the legal framework for declaration of incomes,assets and liabilities with a view to establishing anefficient and devolved administrative,compliance and analysis institutional framework; The following is a summary of the envisaged Electoral and Political Process programmes: Democracy and Public Participation: Under Democracy and Public participation,the Vision 2030 underscores a "people centred and politically engaged open society" .Accordingly,the goal for 2012 is to enact and operationalise necessary policy,legal and institutional framework to enhance democratic participation.The specific strategies will include:•Pursuing constitutional and legal reforms necessary to devolve power and support local governance;•The encouragement of formal and informal civic education programmes;•The promotion of open engagement between the government,civil society and private sector; and•The promotion of free flow of information.The following is a summarised version of the specific strategies under Democracy and Public Participation: Transparency and Accountability: Under Transparency and Accountability,the Vision 2030 emphasises on: "transparent,accountable,ethical and results-oriented Government institutions" .A transparent and accountablesystem of governance is expected to promote integrity,free flow of information and enhance the accountability ofleaders to the citizenry.In order to achieve this vision,reforms in the legal and administrative systems will be identifiedand prioritised in the medium-term to provide an enabling environment for the transformation of the governancesystem which will in turn,make it more transparent and accountable.The goal for 2012 is "to enact and operationalise the necessary policy,legal and institutional framework needed to strengthen public transparency and accountability". The specific strategies to be pursued in the Plan period include:•Strengthening the legal and institutional framework for anti – corruption,ethics and integrity;•Encouraging public access to information and data;•Establishing a legal framework to promote compliance with the Codes of Conduct and Ethics;•Review the legal framework for declaration of incomes,assets and liabilities with a view to establishing anefficient and devolved administrative,compliance and analysis institutional framework;
Introducing civilian oversight around the key legal,justice and security institutions;•Strengthening Parliament's legislative oversight capacity.The following is a summary of measures to be enacted under Transparency and Accountability:
Sector-wide initiatives under the GJLOS Reform Programme
In addition to the Flagship Projects and the strategies and programmes identified under specific strategic initiatives,arange of sector-wide strategies will be pursued during the MTP period.These strategies relate to the wider GJLOSreform framework.They include the following:• The GJLOS Policy Framework Paper will be finalised and operationalised. This far-reaching and ground-breaking national and sectoral policy framework will provide a vital link between the modernised constitutionenvisaged by the constitutional review,national,sectoral and institutional policies,laws and regulations,as wellas sectoral and institutional strategies,programmes,projects and action plans,with regard to this vitally importantGJLOS sector.• A comprehensive GJLOS policy review and update process will be established. The basis of this will be theGJLOS Policy Framework.It is expected that in the one year period,it will initially focus on ten major policy areas.These include:anti-corruption,promotion and protection of human rights; freedom of information; access to justice; community policing,victim empowerment,public order policing; conflict prevention; human security andpenal reform/alternatives to imprisonment. 131 THE POLITICAL PILLAR • Ongoing reform under the GJLOS Reform Programme will be accelerated,beyond policy and law,to supporting processes and systems. In particular,pilot architectures and prototypes will be developed andfinalised to form an integrated criminal justice database,an integrated national population registration system andinternal data and document management systems across the sector.Moreover,court proceedings will beautomated,while case management systems will be put in place.All of these systems will provide an initialplatform for improved and accelerated service/rights delivery,while at the same time,promoting internaltransparency and accountability among GJLOS institutions.• A major capacity development programme will be introduced across the sector. This programme will focuson strengthening knowledge and skills across the sector,while at the same time,promoting comprehensiveattitude and culture change among GJLOS personnel.• A comprehensive working infrastructure (including equipment) needs assessment,cutting across the entire GJLOS sector,will be completed during the year. The Needs Assessment in collaboration with theCapacity Development programme mentioned previously,provide a firm basis for consistent and predictablebudgetary allocations to the sector in future years.However,it is unlikely to affect ongoing infrastructure and assetreplacement exercise. 6.1.4Policy,Legal and Institutional Reforms The ambitious medium-term investment programmes to be implemented within the Plan period will require thebacking of key policy,legal and institutional reforms.These can be categorised under two headings namely:•National policy and legal reform; and•Policy,legal and institutional reform across the five strategic thrusts. National policy and legal reform The core national policy and legal reform that will underpin Kenya's medium-term governance and rule of law agendais the new constitution mentioned earlier.Kenya will aim for a constitution that enjoys broad national support that isrights-based,gender-friendly and fiscally affordable.This agenda has been forefront in the minds of Kenyans for a longtime.Consequently,a consensus based constitutional document could act as a basis for national renewal,stability andaccelerated development that is widely shared. Policy,Legal and Institutional reform Supporting the national constitutional effort,a sectoral policy framework on Governance,Justice,Law and Order –titled the GJLOS PFP and covering all policy-related aspects of the Political Pillar of Vision 2030 - will be finalised withinthe first year of the MTP period.As a vital tool in linking Vision 2030 to sectoral and institutional policies and strategies,the GJLOS PFP has been prioritised as one of the sector-wide reform initiatives to be completed.Other policy,legal andinstitutional reform measures identified under each of the strategic initiatives include the following: The Rule of Law Policy and Legal Reform Measures •Ensure the rule of law is followed to the letter,and that human rights and access to justice issues forms a coreelement of the Constitutional reform debate; 132 VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 •The National Action Plan (NAP) on Human Rights will be finalised and launched as the primary government policydocument on human rights;•Promote gender equality and empower women.To this effect,a number of relevant bills will be enacted andoperationalised including the Marriage Bill,Matrimonial Properties Bill,Domestic Violence (Family Protection) Bill,Equal Opportunities Bill and Affirmative Action Legislation;•In order to promote economic growth based on competition with justice,the government will enact new laws togovern the market including a new Companies Act,a reformed Restrictive Trade Practices,Monopolies and PriceControl Act,reformed laws relating to personal securities (Hire Purchase Act,Sale of Goods Act,Chattels Transfer Act),a new legal framework for Consumer Protection,and a finalised Proceeds of Crime and Anti–MoneyLaundering Bill;•To improve access to justice,legislation will be passed including the Small Claims Court Bill; Private ProsecutionsBill; Legal Aid Bill; Court of Petty Sessions Bill; Alternative Dispute Resolution (ADR) legislation as well as theJudicial Service Bill; the Evidence Act and the Land Disputes Tribunal Act; and•To inculcate a culture of compliance with the law and decent human behaviour a Contempt of Court Bill will beenacted,while the Community Service Orders Act will be reviewed. Institutional Reform Measures •Improve access to justice,and establish an institutional framework for the proposed Small Claims Court system;National Legal Aid and Awareness Programme,Alternative Disputes Resolution (ADR) mechanisms (to recognise African Customary practices which are not repugnant to justice); National Prosecution policy and Crime VictimsCompensation Scheme;•Streamline the functioning of legal and judicial institutions by adopting a sector-wide approach to increasedrecruitment,training,planning,management and implementation of programmes and activities in the justicesector.In addition,strengthen and harmonise co-ordination and linkages among stakeholders at national level anddevelop a comprehensive continuing professional training policy;•Inculcate a culture of compliance to the law and encourage decent human behaviour among Kenyan citizens aswell as with foreigners.To this effect,institutional reforms will be introduced that aim at promoting integrity,transparency and accountability in the management of public affairs.Performance contracting and Results-BasedManagement (RBM) will be entrenched within the legal framework,in addition to continuously reviewing publicservice terms and conditions of service.This will enhance competence,results,competitiveness andprofessionalism,while ensuring guidelines are in place for consultancies and short-term contracts. Electoral and Political Processes Policy and Legal Reform Measures •Ensure electoral and political processes form a core element of the Constitutional reform;•Facilitate the financing and operation of political parties.Further,the Political Parties Act 2007 will be implementedthrough the drafting,gazettement and operationalisation of necessary rules and regulations•Enhance the legal and regulatory framework pertaining to elections.To this effect,the Elections Bill will befinalised,initially through the consolidation of all election-related laws.Provisions will also be made to enableKenyans of majority age in the Diaspora to vote.There will be a review of constituency and electoral boundaries.•The enactment of an Electoral Commission of Kenya law will strengthen and restructure the Electoral Commissionof Kenya to deal with (among other things) building the confidence of the public in the electoral process,while atthe same time,eradicating election malpractices and streamlining party nominations.•Other laws linked to elections will be reviewed,including the Kenya Broadcasting Act (Cap 212); Public Order Act (Cap.56); the Societies Act (Cap 108); Local Government Act,as well as the Administration Police Act,Police Actand Media Act•Implementation of the policy/law-related recommendations of the Independent Electoral Review Committee (TheKriegler Committee) will constitute an additional policy reform.•An Equal Opportunities Bill,Persons with Disabilities (Amendment) Bill and an Affirmative Action Bill will bedeveloped and finalised in order to promote the inclusion of women and other disadvantaged groups in electoraland political processes; and•The National Assembly (Standing Orders) will be reviewed,streamlined and operationalised in an effort to enrichthe quality of Parliamentary debates and the subsequent output of these debates . Institutional Reform Measures •The national gender and diversity policy,which substantively aims at creating gender balance in the electionand/or appointment of party officials and nominated candidates will be mainstreamed;•Other electoral reforms at institutional level will focus on strengthening the enforcement of the Electoral Code ofConduct,as well as the electoral system,to guarantee free and fair electoral competition and an independentelectoral management body;•Implementation of the administrative recommendations of the Independent Electoral Review Committee (TheKriegler Committee) will constitute an additional institutional reform;•To widen knowledge and participation among citizens,key institutional reforms will be targeted towards extendingthe voter education curriculum to the school system,and expanding non-school voter education,with greaterreliance on domestic,rather than external,funding;•To promote the inclusion of women and other disadvantaged groups in electoral and political processes,theUnited Nations Declaration on the Elimination of Violence against Women (UNDEVW) and the Convention on theElimination of all forms of Discrimination Against Women (CEDAW) will be fully implemented,while existinglegislation will be stringently enforced; and•To enrich the quality of Parliamentary debate and output,Parliament's Research Centre will be strengthened,recording of proceedings through Hansard production will be digitise and live coverage and electronic voting willbe introduced. Democracy and Public Participation Policy and Legal Reform Measures •Ensure issues of devolution,local governance,decentralisation of decision making at all levels,recall of MPs,equitable delineation of constituency boundaries are a core element of the Constitutional reform;•Review the entire legal,regulatory and institutional policy regime for engagement between government and NSAs;i•Enact the Freedom of Information Bill to enhance access to public information (in the domain of government andother public bodies);•Establish a policy,legal and regulatory framework that allows constant review of all devolved funds,especiallyCDF and LATF,to ensure effective allocation and management of resources ;•Finalise,enact and operationalise the Local Government Bill; and•Finalise and operationalise of the Public-Private Stakeholder Participation Policy (PPSP) Institutional Reform Measures •Establish an institutional framework that allows for constant review of all devolved funds,especially CDF and LATF,to ensure effective allocation and management of resources; 134 VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 •To improve public participation in democratic processes,operationalise the Political Parties Act,2007,throughnew regulations;•To enhance participation by civil society and private sector,initiate and fund civic education programmes andpromote civic action programmes.Also,develop a broad civic education curriculum at formal and informal level,in schools and outside schools; and•To promote open engagement between the government,the civil society and the private sector,create an annualnational forum for government/NSA engagement which will focus on social,economic,political and democratic issues. Transparency and Accountability Policy and Legal Reform Measures •To strengthen the legal framework for anti-corruption,ethics and integrity,a national anti-corruption policy will bedeveloped,while the Anti-Corruption and Economic Crimes Act,2003 and Public Officer Ethics Act,2003; will bereviewed to guarantee a transparent and accountable public service through review of the Anti-Corruption andEconomic Crimes Act,2003 and Public Officer Ethics Act,2003;•Further strengthening of the legal framework will come through the enactment of the Mutual Legal Assistance Bill,the Proceeds of Crime and Anti-Money Laundering Bill and new legislation on whistleblower protection; while theWitness Protection Act,2006 will be operationalised.Additionally,international anti-corruption instruments (suchas the United Nations Convention against Corruption and the African Union Convention on Preventing andCombating Corruption) as well as initiatives such as STAR (Stolen Assets Recovery (STAR),will be domesticated.•To promote results-based management in the public service,a policy on RBM and Performance Contracting willbe developed and implemented.RBM principles will be entrenched in the Constitution,while public performanceand results legislation will be developed to cover all persons paid from public funds;•To encourage public access to information and data,the ICT Bill and Freedom of Information Bill will be enactedand policy and legislation developed on cyber crimes and related issues; and•To strengthen Parliament's legislative oversight capacity appropriate legal reforms will be undertaken to facilitateparliamentary vetting of senior public appointments; while the Parliamentary Budget Office will be anchored on arelevant legal framework. Institutional Reform Measures •To strengthen the institutional framework for anti-corruption,ethics and integrity,the National Anti–Corruptionawareness campaign will be expanded,as will the capacity of District Anti–Corruption Civilian OversightCommittees to monitor the management of devolved funds and stigmatise corruption;•In addition,anti-corruption,ethics and integrity in the public sector will be mainstreamed through themodernisation of government operations and service-delivery (e-government); the prompt implementation of auditreports; enhancement of the capacity of agencies mandated to prevent,investigate,prosecute and adjudicate oncorruption and economic crime; enhanced co-operation and partnership among institutions responsible forpreventing,investigating,prosecuting and adjudicating corruption and economic crime – including internationalinstitutions; and harmonisation of terms and conditions of service for employees of institutions responsible forprevention,investigation,prosecution and adjudication of corruption and economic crime;•Results-based management will be promoted in public service through mainstreaming of corruption preventionstrategies in RBM and Performance Contracting; and institutionalising Rapid Results Initiative (RRI) in the publicservice;•Public access to information and data will be promoted through implementation of the ICT policy,modernisation ofoperations and communication systems through the use of ICTs,enhancement of information management includingprocessing,storage and access and capacity development through training,equipping and expanding local and widearea networks to support efficient seamless communication and fast and convenient service delivery; Civilian oversight over key legal,justice and security institutions will be achieved through the transformation ofthe Public Complaints Standing Committee into a fully-fledged Ombudsman office with adequate legalmandate; capacity building to strengthen the Office and other watch dog institutions,including the District Anti–Corruption Civilian Oversight Committees and the establish Civilian Oversight Committees for the Policeforce and Prisons service;•Parliament's own legislative oversight capacity will be strengthened as well as the introduction of stricter and moretimely deliberations on reports by the various institutions such as Kenya Anti-Corruption Commission (KACC); KenyaNational Audit Office (KENAO); State Law Office; Kenya National Commission on Human Rights (KNCHR);strengthening the organs of Parliament such as Parliamentary Accounts Committee (PAC); Parliamentary InvestmentsCommittee (PIC),among others to support the war against corruption and economic crime and promote transparencyand accountability in utilisation of public resources; address the physical capacity requirements for Parliament(Members of Parliament (MPs) and Parliamentary staff) by infrastructural development including modernisation of theHouse Chamber; construction of footbridge on Harambee Avenue and acquisition of more office space.All this willrequire closer consultation and collaboration between parliament and the Executive branch of government. 6.2Decentralisation The Vision 2030 envisages a democratic process in the decentralisation of decision-making and a more equitabledistribution of resources.This calls for a devolved system that conforms to the national and local structures.Devolution is defined as: "a shift in power,authority,resources,and responsibilities from the centre to other lower levels of government." On the other hand,in broad political terms,decentralisation can be defined as: "any change in the organisation of government which involves the transfer of some powers from the national level to any sub-national levels,or from one sub-national level to another lower level" .While the country awaits the implementation of newdevolution structures from the proposed constitution,the government's position is that decentralisation measures canstill be undertaken in the interests of growth with equity. Accordingly,the new constitution will define the duties of the Central Government and the functions to be carried outby the lower levels of government.In the meantime,the government is committed to the following policies in the courseof the implementation of the MTP:•To ensure that locally defined needs are met with services that conform to the best national standard and in sodoing,promoting equity;•Give local institutions both the appropriate capacity and authority to carry out their defined functions;•Deliver public services through better co-ordinated local institutions and planning;•Ensure that financial resources are distributed equitably across the country and are also adequate to perform thefunctions defined for the various decentralised institutions;•Put in place a system that promotes greater accountability of the Central Government to all the communities thatit serves;•Enhance community participation in decision making on issues that directly affect them; and•Address issues of institutional capacity and social capital at the lower (or grassroots) level. Benefits of a decentralized system The major benefits of a decentralised governance process (even prior to the introduction of a new constitution) is that it willmeet the strongly expressed needs in many parts of Kenya to bring services and decision making procedures closer to thepeople.Decentralisation is also expected to provide a more equitable expenditure system.Further,It will in effect make iteasier for the government to receive initial feedback on the impact of development projects from the people themselves. 6.2.1Situation Analysis Kenya inherited a federalist constitution with clearly defined functions for regional,county and municipal authorities.This was gradually replaced by a more centralised government,which was based on provincial administration yet stillleaving certain functions to Local Authorities.On their part,Local Authorities were initially responsible for the provisionof a wide range of community and social services.However,poor governance as well as an inadequate and weak institutional capacity led to unsatisfactory service delivery.Consequently,in 1970,the Central Government took overthe provision of key services such as the provision of health care and education.The Kenya Government has undertaken periodic reviews of this situation.In particular,an earlier Task Force (1974) anda Commission of Inquiry (1995) recommended that issues of structures,functions and the powers of Local Authoritiesbe streamlined with those of the Central Government by:•Promoting a participatory approach to the Local Government;•Enhancing the Local Government's capacity,both in terms of human resources and functional streamlining; and•Promoting collaborative and effective linkages between the Central and Local Government.The rapid proliferation of Local Authorities,most of which had weak resource bases (in terms of revenue) led to thedeterioration of services provided to the communities.As a result,the government initiated yearly subventions to Local Authorities through the Local Authorities Transfer Fund (LATF) which is currently one of the devolved funds.In additionto these reforms,the government introduced a Ministry for Regional Development.This Ministry is now responsible foradministering regional development projects under various authorities that have specified geographical mandates.Examples include the Lake Basin Development Authority,Kerio Valley Development Authority and the Tana and AthiRivers Development Authority.In 1983,the government introduced the District Focus for Rural Development (DFRD) togalvanise Local Government resources towards a participatory planning based on local level decision making,but itsimplementation was not achieved fully due to the numerous challenges encountered.In recent years,there has been significant movement to transfer local service deliveries to the constituencies.Currentefforts by the government in the decentralisation of service delivery can be grouped as follows:•Local Authorities;•Regional Development Authorities;•Sector Ministries;•Provincial Administration;•District Focus for Rural Development;•Decentralised Funds (CDF,LATF,District Bursary Fund etc); and•Development Partners and Non-Governmental Organisations. Local Authorities There are currently 175 Local Authorities in Kenya made up of one city council,forty five municipal councils,sixty-twotown councils and sixty seven county councils.Each council is divided into wards with one elected councillor.Thecouncillors elect from amongst themselves a mayor (in cities and municipalities) or a chairman (in towns and counties).The ward is an administrative unit without any form of elected assembly.Additional councillors are nominated by thepolitical parties pro rata to their representation in the council. Regional Development Authorities There are six regional Development Authorities with each having its own governing legislation.The RegionalDevelopment Authorities were established to harness local resources for the benefit of the local people.These were mainly river basins,catchment areas and coastal resources in Kenya.Their main aim is to rationalise equitable andbalanced sustainable regional and national development in the country.The regions covered are the Lake Basin,Kerio Valley,Ewaso Nyiro North and Ewaso Nyiro South,Tana and Athi River,and Coast Region each with its ownestablishment date between 1974 and 1990. Sector Ministries A large number of Central Government ministries have delegated their functions to institutions within the districts.Theyinclude Roads,Land,Health,Education and Water Boards which are also organised into regional or district units.Theyexercise the authority for that service remains with the relevant central ministry.The allocation of resources to theindividual boards is at the discretion of the relevant ministry and does not generally follow specific and transparentdisbursement criteria.The Boards are also appointed by the relevant ministry with little formal local accountability.Other ministries such as Agriculture and Finance deliver services through district units of the ministry. Additional sectoral initiatives for decentralisation include the following:•The Ministry of Land has developed a draft land policy which proposes devolution of power and authority,participation and representation,justice,equity and sustainability to the districts and other institutions.Threeinstitutions are suggested for managing land affairs in the country namely:The National Land Commission,TheDistrict Land Board and Community Land Board.District Land Tribunals will also be set up for dispute resolution.•The Ministry of Education has developed a sector-wide approach which is being implemented through theEducation Sector Support Programme (KESSP).The four central themes of this programme are:transparency,decentralisation,team work; and performance-based management and accountability.Sub national co-ordinationof the education sector is carried out through the Provincial and District Education Boards though grants areprovided directly to primary schools.The Strategy for revitalising Agriculture (SRA) was launched in 2004 as a national policy document for steering thedevelopment of the agricultural sector for the period up to 2014 by the Agricultural sector ministries representing theMinistries of Agriculture,Livestock and Fisheries Development,and Cooperative Development and Marketing.It usesparticipatory approaches to development through empowerment of local level institutions to initiate and implementtheir own priority projects.At the sub national level,District Coordination Units are formed in all districts and provide aforum for the coordination of SRA activities,working closely with the District Development Committees.The provinciallevel provides backstopping and monitoring of implementation progress.In the Ministry of Health,a Sector Wide Approach through the National Health Sector Strategic Plan II 2005-2010 whichwill re-invigorate the Kenya Health Policy Framework (KHPF) elaborated in 1994.The Plan envisages the piloting ofdirect financing to health facilities in a few districts,following the Education model.It proposes delivery of healthservices through a hierarchical system of Health Management Teams at the province,district,and service outlet andvillage level,overseen by Boards or Committees at each level.The direct financing of health facilities using a similarapproach to the Education model is,however,currently being piloted in a few districts.The structure for decentralised delivery of services in the roads sector is defined in the Kenya Roads Act 2007 whichestablishes the Kenya Rural Roads Authority and the Kenya Urban Roads Authority with the Kenya National Highways Authority having an oversight role.These authorities will take over the responsibilities of the Ministry of LocalGovernment and the Local Authorities road maintenance and construction.At sub national level they will work throughthe existing District Road Committees.The Ministry of Water and Irrigation transferred the management and operation of water services to the Water Services Boards with effect from July 2005.These Boards have taken over the water supply responsibilities in their jurisdictionsfrom the central and local government institutions,though actual delivery of the services are delegated to water supplycompanies or community organisations.The Ministry of Finance has put in place a system of District offices whichallows for direct release of funds to the sub national level thus reducing the need to obtain funds from the CentralMinistries in Nairobi.This mechanism facilitates the operation of decentralised institutions. District Focus for the Rural Development Strategy The District Focus for Rural Development (DFRD) Strategy was established in July 1983.This strategy is based on theprinciple of a complementary relationship between ministries with their sector approach to development and thedistricts with their integrated approach to addressing local needs.In addition,the strategy makes districts the centresof development and involves a bottom-up approach to planning where the districts have autonomy in setting theirpriorities,unlike the previous top down strategy where ministries set district priorities. Although the adoption of the DFRD strategy broadened the level of engagement with the citizenry in districts,thisframework has over time faced implementation challenges that have necessitated its revision.As a result,thegovernment has initiated the process of revising the DFRD in order to make it responsive to the changing needs of therural/urban population and also the emerging policy initiatives. Decentralised Funds Funds are transferred by the Central Government to the various decentralised ministries,departments,agencies andthe local revenue sources of Local Authority boards and Regional Development Authorities.In addition,there are anumber of specific decentralised central funds financing activities at the local level.They include the following: Local Authorities Transfer Fund (LATF) LATF was introduced under the Local Authorities Transfer Fund Act,1998 with the objective of facilitating "the disbursement of funds to local authorities to supplement the financing of the services and facilities they are required to provide under the Local Government Act." It is a block grant equivalent to 5 per cent of national income tax revenuesand is allocated to all local authorities using a population-based formula.The amount provided in FY 2007/08 will beKshs 8.25 billion. Constituency Development Fund (CDF) The Constituency Development Fund was introduced under the Constituencies Development Fund Act,2003 with theobjective of ensuring "that a specific portion of the national annual budget is devoted to the constituencies for purposes of development and in particular in the fight against poverty at the constituency level." The amount paid into the fundeach financial year is fixed as not less than 2.5 per cent of all government ordinary revenue collection.Three quartersof the amount allocated annually to each of the 210 constituencies is based on equal shares per constituency,whilethe balance is allocated on the basis of a weighted poverty index.The amount to be released in FY 2007/08 is Kshs10.1 billion.The Act requires that the projects be identified through community participation.At the local level the Fundis administered through Constituency Development Committees and project implementation is co-ordinated throughDistrict Development Committees.CDF has acquired great popularity among Kenyans but it has encountered somemanagement problems that need to be addressed in the course of the plan period. Road Maintenance Levy Fund: Disbursements from this fund are budgeted at Kshs.18.3 billion in FY 2007/08.Thisamount is partly allocated to local authorities and the constituencies,the balance being expended through centralcontracting by the Roads Board. HIV/AIDS (TOWA) Community Support Initiative: The disbursements from this fund are budgeted at Kshs 742 millionin FY 2007/08.The fund is geared towards a total war on the HIV/AIDs scourge through related education andawareness campaigns at the constituency level for all the 210 constituencies. Constituency Bursary Fund: Disbursements from this fund are budgeted at Kshs 800 million in FY 2007/08 and targetfor the payment of school fees for destitute children.The funds are used to ensure that deserving students do not missout on high school education due to financial inabilities. Community Development Trust Fund: Disbursements from this fund are allocated at Kshs 382 million in FY 2007/08. Poverty Reduction Fund: This fund which is supported by the European Union (EU) commenced disbursements in 2006and will end in 2009.It provides earmarked financing of specific projects in 63 selected councils totalling Kshs 581 million. Youth Development Fund: The fund was introduced in FY 2006/07,for disbursement through the constituencies andKshs 750 million has been allocated for FY 2007/08.The resources under this fund are meant to go a long way increating job opportunities for the youth of this country through engaging in income generating activities. Women's Enterprise Development Fund: The fund was introduced in FY 2007/08,for disbursement through theconstituencies with an initial allocation of Kshs 1 billion.Since commercial banks have borrowing conditions that are notfavourable to women,this fund was to fill the gap by providing more easily accessible credit for investment by women.In addition to the disbursement of funds mentioned,there exists a number of special programmes targeting specificissues in specific areas,allocating additional resources to the most disadvantaged provinces such as the Arid LandResource Management Project. Development Partners and Non-Governmental Organisations There are many initiatives at the local level either supporting the local authorities or dealing directly with communitiesthat are financed by Development Partners or Non Governmental Organisations.In addition,the development partnerssupport the Water Sector Trust Fund to provide finance for improving access to safe,affordable and sustainable watersupply and sanitation services to the poor.The fund has budgeted Kshs 700 million for disbursement to local waterproviders in 2007/08. 6.2.2Emerging Issues and Challenges Kenya's decentralisation policies suffer from poor coordination and overlaps between governmental functions.Hence,there has been a strong demand in favour of devolution.Other challenges include a weak legal framework,poorcoordination,limited budgetary allocation,uncoordinated financial management,weak human resource managementand unstructured stakeholder participation.The multiplicity of devolved funds whose activities are not properlycoordinated also indicates the lack of a coherent policy on decentralisation.The capacity for financial management andaccountability of these funds has generally been weak. A second challenge is the large number of uncoordinated decentralised funds.These have been formed without acritical review of past efforts and wastage may be extensive with poverty increasing instead of reducing.Centralisationhas an adverse impact on equity and distribution of resources especially in a multi-ethnic setting like Kenya's and isan emerging issue and challenge.Although there is no model of decentralisation that is universally agreed upon,thegovernment will undertake decentralisation based on five conditions to ensure that the process is effective in upliftinggeneral existential welfare and enhancing the capacity of the Local Government for self-administration.Measures willbe taken to adapt the programme to specific local prevailing conditions,capacities,historical and political realities. 140 VISION 2030 FIRST MEDIUM TERM PLAN 2008 - 2012 These conditions are expressed as a set of inter-related,pre-existing frameworks and will be used as guidelines foreffective decentralisation.They include the following;• The basic legal and policy framework: This will clearly stipulate the division of roles and responsibilitiesbetween different layers of government.Only if significant responsibilities are assigned to local governments willthey play a role in uplifting the standard of living and address local needs.• The political and administrative framework: The election of local leaders will be the most basic precondition.Effective local accountability will also demand that citizens and politicians have access to information,institutionalarrangements for participatory planning,open budget processes,social audits,and be influenced by politicalstructures and civil society Organisations.• Local authority financing: This shall be aligned with and commensurate with functions.Finances will beprovided to include a proper mix of local revenue sources,intergovernmental fiscal transfers and borrowing.A certain level of fiscal autonomy will be allowed to ensure that potential benefits of decentralisation canmaterialise,and this autonomy will be designed in a way that does not compromise overall national targets.• Local authority human resource: The government will ensure that the numbers,qualifications,and motivationof the enlisted staff are adequate.This will ensure that they are in a position to perform their duties effectively andefficiently.Some degree of local control of staff will be allowed to ensure local level autonomy and thus benefitfrom decentralisation.• Coordinating the decentralisation process: The government will coordinate the process for effectivedecentralisation of the public service across all the sectors. 6.2.3Programmes and Projects for 2008 - 2012 Development of a decentralisation policy: Pending the introduction of the new constitution,the government will givepolicy direction on decentralisation by preparing an overall decentralisation policy.The policy will define moresuccinctly,the policy choices associated with devolution of authority for planning,budgeting and accountability.Thiswill achieve the desired development results at the devolved level as part of the new constitution in one year. Development of a decentralisation strategic framework: Following the development of a decentralisation policy,adecentralisation strategic framework that elaborates specific priorities over a given time frame will be prepared.Thiswill be based on the Vision 2030 and the Grand Coalition Government's development agenda,making the strategicframework an instrument for overall national strategy and programmes towards accelerated growth and povertyreduction.In this context,a more systematic dialogue between the various strategic actors is needed in order tostreamline the strategic focus for decentralisation with the new constitution.All types of decentralised funds shall formpart of the strategic framework. Reforms of local authorities: The on-going process of reforming the Local Authorities shall be supported andaligned with a new decentralisation policy focused on devolution.This will imply a refinement of the LocalGovernment Act (LGA) itself as well as all laws,which reinforce central management functions over thosestrategically suited to LAs under CAP 265 of the LGA.The reforms will also entail improvement of strategic planningprocesses in all local authorities and embracing of various performance management tools and instruments asoutlined under the public sector reforms section. Capacity building in Local Authorities: A comprehensive training needs assessment will be carried out for Local Authorities with a view to developing a national programme for the training of local authorities' staff and re-orientingto them to the requirements and aspirations of the regional development policy and in particular the Vision 2030 .Thetraining programme will be executed in collaboration with the Kenya School of Government whose primary focus willbe to build requisite capacity in governance and its affiliate institutions for national transformation. Information,Education and Communication: While the process of developing a decentralisation policy and itsstrategic framework will be through a participatory and consultative process,its success will hinge on promotion ofnational ownership and sustainability.In view of this,an Information,Education and Communication strategy with akey objective of sensitisation and promotion of the policy and framework will be developed and implemented.Thedissemination programme will be executed using the existing structures and systems at both the national and sub-national levels such as District Information and Documentation Centres. 7. THE IMPLEMENTATIONFRAMEWORK 7.0Overview An effective Monitoring and Evaluation system is critical to the successful implementation of the Medium Term Plan 2008-2012. In light of its mandate to track the implementation of government policies,programmes,and projects,theMinistry of State for Planning,National Development and Vision 2030 under the Office of the Prime Minister,will takea lead role in monitoring the implementation of policies,reforms,programmes and projects to be implemented underthe MTP 2008-2012.Towards this end,the Ministry will work closely with other line ministries,government agencies,the Private Sector and Non-Governmental Organisations (NGOs) to ensure that there is an effective monitoring andevaluation of the implementation of the MTP.In line with the policy on e-government,the National IntegratedMonitoring and Evaluation System (NIMES) under the Monitoring and Evaluation Directorate of the Ministry,a state-of-the-art Information Technology (IT) system will be relied upon to collect accurate and up to date information and dataon the implementation of the MTP 2008-2012. 7.1The National Integrated Monitoring and Evaluation System The National Integrated Monitoring and Evaluation System (NIMES) was established in 2004 with an objective toproviding the government with a reliable mechanism and framework for measuring the efficiency of governmentprogrammes and the effectiveness of public policy in achieving its objectives.NIMES is not only a reporting system butan inherent part of the planning and budgeting processes both at the central and devolved levels and at district andconstituency levels.Moreover,it is designed to track and provide feedback on the implementation of governmentpolicies and programmes for improved performance,results and accountability.The government has reviewed the NIMES and a strengthened institutional framework is being put in place to ensurethat all programmatic activity by the government,civil society,the private sector and donor partners,particularly for the Vision 2030's MTP 2008-2012 are effectively monitored.In addition,the framework will ensure that timely andcorrective action is initiated to monitor the successful implementation of the Vision 2030 Medium Term Planprogramme and policies. As the focal point,the Monitoring and Evaluation Directorate (MED) of the Office of the Prime Minister Ministry of Planning,National development,and Vision 2030 will receive information from line ministries,parastatals,Local Authorities,reformprogrammes,civil society,the private sector and development partners through an on-line system on the progress madein the implementation of the MTP 2008-2012.The MED will produce quarterly and annual reports on progress inimplementing the MTP which will also be availed on the MED Website.MED will regulary review M & E indicators to fast-track the implementation of Vision 2030. Various surveys will also be undertaken over the medium-term period.Thesewill include poverty surveys and Integrated Household Budget surveys which will be undertaken.These results will provideuseful input in monitoring the progress made in implementing the MTP 2008-2012. 7.2The Role of line Ministries and Government Departments The Kenya National Bureau of Statistics (KNBS),through its Statistical Capacity Building Project (STATCAP/NSS) willdevelop technical as well as other capacities of line ministries to carry out data collection for input into the NIMES. Subsequently,the Central Planning and Project Monitoring units (CPPMUs) in line ministries will be given theresponsibility for monitoring the projects administered in their various ministries and sectors.All line ministries andgovernment departments will then align their ministerial and departmental strategic plans to the MTP,Accordingly,performance contracts of line ministries and government agencies will be closely linked to meeting the targets of theirStrategic plans which have been aligned with the MTP 2008-2012. 7.3District/Devolved Level Reporting and Monitoring As a measure to effectively track the implementation of programmes and projects at the district,local authority andconstituency levels,a revised District Focus for Rural Development (DFRD) report has been prepared and willsubsequently be institutionalised.In addition,the DFRD Monitoring and Evaluation reporting arrangements,workingthrough the District Planning and Management Units (DPMUs) and the District Monitoring and Evaluation Committees(DMECs) will be strengthened and integrated more effectively within the NIMES.In this regard,the district,Local Authorities and constituency level capacities in ICT,project monitoring,data base management and preparation ofmonitoring reports will be strengthened through capacity development under NIMES.The Annual District Monitoringand Evaluation Reports will then be published.Subsequently,Constituency Monitoring and Evaluation Committees(CMECs) will be established according to the provisions of the revised DFRD Strategy. 7.4The National Economic and Social Council The National Economic and Social Council (NESC) under the Office of the President played a key role in thedevelopment of the Kenya Vision 2030. They will continue to play their advisory role on all developement mattersacross sectors.The Council through its link with the private sector and civil society organisations will provide animportant liaison function as well as feedback mechanism. 7.5The Vision Delivery Secretariat The Vision Delivery Secretariat (VDS),working under the general direction of the Minister of State for Planning,NationalDevelopment and Vision 2030 shall be responsible for the overall implementation of Vision 2030 Flagship Projects.The VDS will be a Semi-Autonomous Government Agency (SAGA) with an independent Board established under a legalnotice by Minister of State for Planning,National Development and Vision 2030. The VDS will have clear institutionallinkages with other existing institutions,structures and organisations both in the public and private sector. 7.6The Vision Delivery Board The Board shall provide overall leadership,oversight,guidance and policy directives in the implementation of the sion 2030 and sustenance of momentum and realisation of the Vision goals and targets.The Board shall beresponsible for target setting and evaluation of the achievement of results.The Board Members shall be gazettedby the Minister of State for Planning,National Development and Vision 2030 and shall serve for a period of five yearson an honorary basis. Kenya Vision 2030 Kenya Vision 2030 (Swahili: Ruwaza ya Kenya 2030) is the country's development programme covering the period 2008 to 2030. It was launched on 10 June 2008 by President Mwai Kibaki.[1][2] Its objective is to help transform Kenya into a "middle-income country providing a high quality life to all its citizens by the year 2030". Developed through an all-inclusive and participatory stakeholder consultative process, the Vision is based on three "pillars": the economic, the social and the political. This Vision's adoption comes after the successful implementation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS), responsible for the country's GDP growth from a low of 0.6% and gradual rise to 6.1% in 2006. The Kenya Vision 2030 is to be implemented in successive five-year Medium-Term Plans, with the first such plan covering the period 2008–2012. At an appropriate stage, another five-year plan will be produced covering the period 2012 to 2017, and so on till 2030. As the country makes progress to middle-income status through these development plans, it is expected to have met its Millennium Development Goals (MDGs) whose deadline is 2015. Some of the goals have already been met. The Vision 2030 spells out action that will be taken to achieve the rest. Vision The Vision 2030 development process was launched by President Mwai Kibaki on 30 October 2006 when he instructed the National Vision Steering Committee to produce a medium-term plan with full details on the development programmes that would be implemented in the first five years after the ERS expires on 31 December 2007. A consultative approach was undertaken through workshops with stakeholders from all levels of the public service, the private sector, civil society, the media and NGOs while in rural areas, provincial consultative forums were also held throughout the country. The objective of all these consultations was to provide an in-depth understanding of the country's development problems and the necessary strategies to achieve the 2030 goals. Experts used the input from the above stakeholders and their own economic analysis to identify sectors with the most promising potential in driving Kenya's economic growth up to 2030. This approach involved an assessment of two critical components: the potential of the different sectors to make a wide economic impact the feasibility of unlocking that potential for the benefits of economic growth, employment and poverty – reduction A similar process and methodology was followed in identifying projects and priorities in the social and political pillars. Detailed analysis was carried out under a consultative process in order to come up with strategies capable of resolving the social and political problems that Kenyans face today. To arrive at workable solutions, the team of experts learnt as much as they could from countries that have achieved rapid growth and also improved the lives of their people greatly in a span of 20–30 years, with particular reference to the South East Asian newly industrialising countries. The standards achieved by those countries are ones Kenya should aim for, bearing in mind her own history and culture. The team made extensive use of information available from the Government, Kenya's private sector, civil society and universities. [edit] Foundations Macro-economic stability for long-term development Continuity in Governance reforms Enhanced Equity and wealth creation opportunities for the poor Infrastructure Energy Science, Technology and Innovation (STI) Land Reform Human Resources Development Security [edit] Economic Pillar This aims to improve the prosperity of all Kenyans through an economic development programme, covering all the regions of Kenya. It aims to achieve an average Gross Domestic Product (GDP) growth rate of 10% per annum beginning in 2012. To achieve this target, Kenya is continuing with the tradition of macro-economic stability that has been established since 2002. It is also addressing other key constraints, notably, a low savings to GDP ratio, which can be alleviated by drawing in more remittances from Kenyans abroad, as well as increased foreign investment and overseas development assistance (ODA). Delivering the country's ambitious growth aspirations required a rise of national savings from 17% in 2006 to about 30% in 2012. It was also found necessary to deal with a significant informal economy employing 75% of the country's workers. The informal sector is being supported in ways that will raise productivity and distribution and increase jobs, owner's incomes and public revenues. The country is continuing with the governance and institutional reforms necessary to accelerate economic growth. Others critical problems being addressed include poor infrastructure and high energy costs. The six key sectors described below are being given priority as the key growth drivers for achievement of the economic vision: Tourism Increasing value in Agriculture A better and more inclusive wholesale and retail trade sector Manufacturing for the regional market BPO Financial Services [edit] Social Pillar Through this strategy, Kenya aims to build a just and cohesive society with social equity in a clean and secure environment. This strategy makes special provisions for Kenyans with various disabilities (PWDs) and previously marginalized communities. These policies (and those in the economic pillar) are equally anchored on an all-round adoption of science, technology and innovation (STI) as an implementation tool. Key sectors: Education & Training The Health System Water and Sanitation The Environment Housing and Urbanisation Gender, Youth and Vulnerable Groups Equity and Poverty Elimination [edit] Political Pillar This aims to realise a democratic political system founded on issue-based politics that respects the rule of law, and protects the rights and freedoms of every individual in Kenyan society. It hopes to transform Kenya into a state in which equality is entrenched, irrespective of one's race, ethnicity, religion, gender or socio-economic status; a nation that respects and harnesses the diversity of its peoples' values, traditions and aspirations for the benefit of all its citizens. The political pillar vision for 2030 is "a democratic political system that is issue-based, people-centered, result-oriented and accountable to the public". An issue-based system is one in which political differences are about means to meet the widest public interest. "People-centered" goals refer to the system's responsiveness to the needs and rights of citizens, whose participation in all public policies and resource allocation processes is both fully appreciated and facilitated. A result-oriented system is stable, predictable and whose performance is based on measurable outcomes. An accountable system is one that is open and transparent and one that permits free flow of information. This vision is expected to guarantee Kenya's attainment of the specific goals outlined under Vision 2030's economic and social pillars To meet objectives outlined in the economic and social pillars, Kenya's national governance system is being transformed and reformed to acquire high-level executive capability consistent with a rapidly industrializing country. The country is adopting a democratic decentralization process with substantial devolution in policy-making, public resource management and revenue sharing through devolved funds. This has been achieved through a delivery of a new constitutional dispensation which came in effect in August 2010. Transformation within Kenya's political governance system under Vision 2030 is expected to take place across six strategic initiatives, whose overarching visions, goals and specific strategies for 2012 are as follows: Rule of Law Electoral & Political Processes Democracy and Public Service Delivery Transparency and Accountability Security, Peace building and conflict management [edit] Guiding Principles To ensure that economic, social and political governance gains made under the Vision are neither reversed nor lost as a result of change in ruling parties, the following eight governance principles will be adhered to: Constitutional supremacy: Supremacy of the constitution shall be respected at all times. This will guarantee individual rights as stated in the Bill of Rights and the property rights of Kenyan and international investors. Sovereignty of the people: This calls for the acknowledgment of the fact that in a constitutional democracy like Kenya, the government derives all its just powers from the people it governs. Equality of citizens: Kenya shall be a nation that treats its women and men equally. It will not discriminate any citizen on the basis of gender, race, tribe, religion or ancestral origin. National values, goals and ideology: In the pursuit of economic, social and political aspirations, Kenyans shall formulate and adopt a core set of national values, goals and a political ideology supportive of Vision 2030, these will include acknowledgement of the significance of God to the Kenyan people and an affirmation of the religious, cultural and ethnic diversity of Kenyans. It will also affirm the indivisibility of Kenya as a nation and her commitment to democracy and the rule of law. A viable political party system: Kenya aims at a strong and viable political party system that will be guided by policy and ideological differences rather than region of ethnicity. Under Vision 2030, founding of political parties on religious, linguistic, racial, ethnic, gender, corporate or regional basis will be prohibited. This is in line with the just enacted Political Parties Bill. All political parties will be obliged to subscribe to a legally-binding Code of Conduct. There will be a clear definition of circumstances under which a party may be de-registered or reinstated. The delegation of state functions to (or the use of state resources by) political parties will not be permitted. Political parties will be required to publish their manifestos before participating in elections. Public participation in governance: Kenyans shall appreciate the values of tolerance and respect for differences in opinion in a competitive society. Separation of powers: The implementation of Vision 2030 depends on the enhancement of the capacity of the three arms of government (Legislature, the Executive and the Judiciary). These institutions are independently functioning in a manner that enhances the implementation of Vision 2030. Decentralisation: Vision 2030 uses devolved funds to strengthen decentralization of development projects at the community level. Improved planning and coordination of such projects at the local level will be accorded priority in realizing this goal. [edit] Implementation A Semi Autonomous Government Agency (SAGA) with the requisite capacity has been established to oversee the implementation of all the Vision 2030 projects. The agency works closely in collaboration with government ministries and departments as well as the private sector, civil society and other relevant stakeholder groups. The strategies to deliver the 10% annual growth by 2012 is being executed through concrete flagship projects across the priority sectors in all the three pillars of the Vision. The projects are original large-scale initiatives that look beyond their immediate locality and are capable of having an impact on the entire nation. Flagship projects form part of the national development with complementary projects being undertaken in line with the Medium-Term Plans, the Budget Outlook Paper, and the Medium- Term Expenditure Framework. During the life of the Vision, strategies and action plans are expected to be systematically reviewed and adjusted every 5 years in order to effectively respond to the changing global, regional and local environment. The Vision 2030 is being delivered over many different horizons and flagship projects, each with defined goals. Following the expiry of the ERS in December 2007, the first part of Vision 2030 is now being implemented under the 2008-2012 plan. [edit] Vision Delivery Secretariat The Kenyan Government has created a Vision Delivery Secretariat (VDS), which provides strategic leadership and direction in the realization of the Vision 2030 goals to ensure the timely implementation of the flagship projects. The Secretariat is managed by the Director-General leading a team of four Directors and Secretariat members, under the overall guidance of the Vision 2030 Delivery Board that plays a policy-making and advisory role. [edit] References ^ a b Ministry of State for Planning, National Development and Vision 2030 (10 June 2008). "Launching Of Kenya Vision 2030 Speech by His Excellency Hon. Mwai Kibaki, CGH, MP". Ministry of State for Planning, National Development and Vision 2030. http://www.planning.go.ke/index.php?option=com_content&view=article&id=199:launching-of-kenya-vision-2030-speech-by-his-excellency-hon-mwai-kibaki-cgh-mp&catid=56:others&Itemid=96. Retrieved 18 August 2012. ^ a b Office of Public Communications (10 June 2008). "Kenya Vision 2030 officially launched". Office of Public Communications. http://www.communication.go.ke/media.asp?id=611. Retrieved 18 August 2012. External links Vision 2030 - Official website Vision 2030; National Economic and Social Council China and the World Bank 2030 vision http://www.economist.com/blogs/analects/2012/02/china-and-world-bank
Feb 28th 2012, 15:46 by J.M. | BEIJING
Development Research Center of the State Council
International Cooperation Department
CHINA'S economic reforms have seen few breakthroughs in the past few years, or so the analysts tend to think. As the country prepares for big changes due in its top leadership after a Communist Party congress late this year, senior officials are becoming even less inclined than usual to take risks that might damage their careers. And with the economy still growing rapidly, despite the rest of the world's problems, many of them see no urgent need for change.
The World Bank thinks differently. In a 468-page report, "China 2030", it has set out a huge range of policy measures it says are needed in order to prevent the country from eventually falling into a "middle-income trap" of much slower growth. Its suggestions range from weakening the grip of state-owned enterprises to letting the market play a bigger role in the setting of interest rates. Such ideas have been aired by others before, but World Bank officials suggest there is a chance their report could help nudge China into action. It will certainly be widely noted in China. Unlike the bank's last report of this kind ("China 2020", published in 1997), this one was co-authored with a government think-tank, the Development Research Centre (DRC) of the State Council. The DRC is an influential organisation which supplies the government with policy advice. The finance ministry was also involved. A deputy prime minister, Li Keqiang, who is expected to take over as prime minister from Wen Jiabao next year, is thought to have played an active role in arranging this co-operation between officialdom and the bank. Having the DRC's name on the document gives China's reformers cover. The World Bank is viewed with suspicion by hardliners, who see it as a meddler in the affairs of developing countries and a purveyor of ideas that could undermine party rule in China. With a semi-official stamp of approval on it, the report will be less easy for conservatives to dismiss as part of a Western plot. In turn, it's believed, the DRC used the World Bank as cover in its discussions with foot-dragging bureaucrats ("Don't blame us for these proposals, blame the bank"). At times, behind closed doors, the DRC argued for even bolder reforms than the bank itself was suggesting. The bank, however, should be prepared for disappointment. In the buildup to the party congress, a bit of reformist posturing is only to be expected. Different factions in the party want to air their agendas in order to influence the policy choices of the new leaders. A hint of this emerged in a commentary in the People's Daily (in Chinese) on February 23rd. It said some officials wanted to keep things as they were in order to avoid criticism, but that this would eventually result in an even greater crisis. "No matter how thorough plans are, or how intelligently crafted they are, reforms will always be attacked," it said, giving warning that mere "tinkering" with reform had been the downfall of great nations and parties. Also on February 23rd, details emerged of a proposal by the People's Bank of China (long an outlier among Chinese bureaucracies for its reformist hue) for accelerating reform of capital controls with the aim of making the yuan a global reserve currency. The plan was published in the China Securities Journal (in Chinese). But despite the World Bank's efforts to persuade the Chinese government that reform is relatively easy to manage in good times, prospects for quicker action still look dim, at least in the near term. China's new leaders will likely take at least a few months to consolidate their power and settle in before they feel confident enough to tackle economic reforms that affect powerful vested interests, such as the bureaucracy that controls state enterprises or the ministry of commerce. (Nicholas Lardy of the Peterson Institute for International Economics in Washington, DC, describes the influence of these groups in a detailed chapter in his new book, "Sustaining China's Economic Growth After the Global Financial Crisis"). Even then, it is very unlikely that those who take over leadership of the party in a few months' time will be any stronger than their predecessors when it comes to taking on the conservatives. Vision 2030 is not realistic - Wikileaks
Friday, September 2, 2011 - 00:00 -- BY LOLA OKULO
THE US views Kenya's development plan Vision 2030 as highly ambitious and largely unattainable considering past failed economic plans by government.
Latest Wikileaks cables sent to the US government by immediate former ambassador to Kenya Michael Ranneberger in May 2007 casts doubt on the practicability of the vision.
However, though the blueprint was launched almost towards the 2007 election period, the cable said it was launched in good faith and not for political mileage by President Mwai Kibaki's government. "The Vision captures nearly the entire reform agenda and is thus awesomely ambitious in scope - and by the same token, probably unrealistic. Consistent and coherent implementation of anything so large will be problematic," states a part of the cable released last week by Wikileaks.
Vision 2030 formulation started in October 2006 when Kibaki National Vision Steering Committee to produce a development plan for the country. The plan seeks to propel Kenya to middle income economy level with improved living standards for citizens. It also seeks to achieve a 10 per cent GDP growth annually for the country. Kenya's GDP grew by 5 per cent in 2010 and the Central Bank had predicted another growth 5.7 per cent for 2011 earlier in the year. The vision is based on three pillars which are economic, social and political development.
The cable cited the vision as capturing the entire reform agenda to make the country a mature democracy and middle income economy all at one go.
Therefore, the cable noted, "Vision 2030 often reads like a naive call for a perfect society, smacking a bit of old-fashioned socialist central planning."
The government, according to the cable, is good at composing ambitious plans and strategies to address key challenges faced by the country but is equally infamous for failing to implement such plans. The cable cites an example of over 20 year old plans to build by-pass roads around Nairobi which had not been built at the time.
Presently, several by-pass roads are in the process of construction while the Vision 2030 secretariat prides in the passing of the new constitution as one of the major achievements to roll out reform agenda politically and eventually socially.
Though largely cynical of the government strategy until 2030, the cable also notes that with political will, some major gains could be made within the Vision 2030 framework. "But with the right leadership and a little bit of luck, Vision 2030, even if only partially successful, could help frame a reform agenda that puts Kenya on a higher growth path," states the cable in part.
Monday, July 28, 2008
VISION 2030 SHOULD BE ABOUT TRANSFORMING THE COUNTRY
at 10:05 AM ·
By ANGEYO H. KALAMBUKA
July 27 2008
Daily Nation VISION 2030 IS NO DOUBT A timely and laudable Government effort, only it is over-ambitious on time, unattractive to the 2008 budget drafters, and unrealistic in having its foundation in neo-classisist economic thinking. The Vision's main economic, social and political pillars and flagship projects to be embarked upon in the medium-term period are wanting from the knowledge economics perspective, in particular on science, technology and innovation (STi), the new policy on STi notwithstanding. Industrial cluster development is a complex, long-term endeavour that requires a critical mass of existing resources, and rich, zealous local champions. Kenya is a poor, struggling country where knowledge-powered rural development is the most pressing need, and should play to its strengths. It is not an over-emphasis, that effective generation and leveraging of knowledge are today's key sources of competitive advantage as may be seen in the world's advanced economies. IN 1950, MOST PEOPLE ENGAGED in manufacturing, farming, mining and transportation. By the 1990s, their number had shrunk to one-fifth. Two years from now, they will be no more than one-tenth. The balance between knowledge and resources has shifted towards the former. The traditional factors of production – land, labour, and machines – have become secondary. The fate of nations teaches us that we live in a sea of constant change that plays rough on the global scale, and re-orienting Vision 2030 to be about walking the country into a knowledge economy should be seen as transforming the ship while a storm is raging on the open sea. The Lisbon Agenda, for instance, has put a very ambitious blueprint, constantly informed by stimulated debate and public engagement on the issues that are at the centre of a successful knowledge economy, for rapidly moving Europe from the industrial age to a global, networked knowledge-based economy, which has inevitably necessitated changes, not only in the economy, but also in the institutions and systems designed for a different era. The goal of politics in the 21st century should be to create societies that maximise knowledge. There is no part of our economic activity which cannot be improved by, or which will not benefit from, the application of knowledge and ideas. Any country that writes off a third of its people through poor schooling, family breakdowns, poverty and strife, throws away precious assets: brain-power, intelligence and creativity. As Alvin Toffler observes in his book, Future Shock "the illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn." Like people, States are in today's information age, more than ever before, expected to be able to unlearn, relearn and learn in the tumultuous 'sea' of change. States which are prepared to learn will succeed, while those which consider themselves learned will find themselves beautifully equipped to deal with a world that no longer exists. Knowledge capitalism, which involves generating new ideas and turning them speedily into products and services that reach the market through a wide variety of routes, is a vital driving force in the new world economy. Wednesday, June 11, 2008
Vision 2030: Reality or Mirage?
President Mwai Kibaki flanked by PM Rt. Hon. Raila Odinga, VP Hon. Kalonzo Musyoka and Minister for Planning Hon. Wycliffe Oparanya unveils the Vision 2030 Logo after he officially launched the vision and its First Medium Term plan at KICC, Nairobi. Government of Kenya launches the most ambitious development plan since independence The Kenya Vision 2030 has finally been launched after the successful harmonization of the 2007 pre-election manifestos of ODM, PNU and ODM-K, which are the three main political parties forming the grand coalition government. The vision is planned to be implemented via 5 year medium-term rolling plans that will run concurrently with electoral cycle, and the first phase starts from June 2008 to 2012. According to an upbeat Planning Minister - Wycliffe Oparanya - the government plans to invest a staggering Kshs1.6 trillion (approx. US$25.2 billion) over the next five years so as to transform Kenya into a middle-income earner in the next 22 years. In other words, Kenya wants to play in the same league as the famed Asian 'tigers' – all very laudable. Information released yesterday indicate that Vision 2030 development plan is based on what the government calls three "pillars" namely; economic, social and political pillars. I must admit however, I have not exhaustively read the full version but sneak previews reveal that: The ECONOMIC PILLAR aims at providing prosperity of all Kenyans by the year 2030. In conservative terms, and this is the target government has given itself, Kenya must achieve a GDP growth rate of 10% per annum for the next 25 years beginning next year! Bearing in mind that the growth rate for the last five years was somewhere between 2% to 6% (and these are Kimunya's figures), and that even the current rate is expected to reverse back to 4% as effects of the post election skirmishes sink in, is a 10% growth rate really feasible within the next financial year? Unlikely I say, and even if Kenya achieves this, is it sustainable? The SOCIAL PILLAR seeks to build "a just and cohesive society with social equity in a clean and secure environment" whereas the POLITICAL PILLAR aims at "realising a democratic political system founded on issue-based politics that respects the rule of law, and protects the rights and freedoms of every individual in the Kenyan society" – again all very laudable...... after all this is what ODM has been trying to teach PNU ever since the NARC/LDP days when they were busy hatching anglo-leasing deals! Even to the most optimistic Kenyan, it is hard to imagine that Kenya as a country will actually raise the prerequisite investment, maintain political stability and achieve national cohesion all of which are required to pave the roadmap to the year 2030. And why not, one may ask? Well, for a country led by such self serving politicians who are also anti-reform, this plan is already doomed even before it starts. It is obvious even to a casual observer that the GCG is teetering at the edge of breaking down. Just two days ago, senior ODM member and cabinet minister called a press conference in the company of Spokesman Salim Lone and warned the PNU partner to 'tread carefully'. Before Ntimama's warning could be digested, the bitterly contested parliamentary by-elections in five constituencies were already scheduled and are underway as I type these lines. The very strange coincidence here is that ODM lost two of those seats in the most violent manner earlier this year. These murders are still unresolved! The third had to be annulled when ODM was in the lead and a hired mob barricaded the counting hall while the fourth, in one of the strangest coincident and in what should be the world's first, was called a 'tie' when the ECK announced the elections results. Only the fifth was voluntarily given up by ODM. As if this is not enough, two ODM members died yesterday in a yet to be explained aircraft accident. What is so wrong about being an ODM MP? Are they 'marked' men and women or these deaths are mere coincidences? My take is that 10% economic growth rate and foreign direct investment running into billions of dollars hardly ever comes when only ODM MPs are dying like flies. What's your take? On top of this political minefield, even the minister Oparanya conceded, Kenya has still to overcome humongous challenges such as high unemployment, widespread poverty, gross inequalities in income distribution and development disparities in different regions of the country and gender inequalities. One wonders whether ODM (then LDP) was talking to walls during the initial years of the NARC regime because these are the same issues that have always been highlighted on the national agenda, and are the force behind calls for a peoples' driven reform process! National Development and Vision 2030 Treasury BuildingP.O.Box 30005 - 00100Nairobi, KenyaTel.254-20-252299E-mail:psplanning@planning.go.ke Website:www.planning.go.ke
FIRST MEDIUM TERM PLAN,2008 – 2012
Foreword
The publication of KenyaVision 2030:First Medium Term Plan (MTP) 2008-2012 marks a critical milestone for ournation because it is now the primary document which outlines the consensus on policies,reform measures,projectsand programmes that the Grand Coalition Government is committed to implement during 2008-2012.Indeed,the MTPhas taken on board the main policy recommendations of the manifestos of the constituent parties of the Grand CoalitionGovernment as its point of departure.As our country's next Medium Term Plan,the MTP takes over from the Economic Recovery Strategy for Wealth and Employment Creation,2003-2007. It constitutes the first phasein theimplementation of Kenya Vision 2030, whose aim is to transform our country into a modern,globally competitive,middle income country,offering a high quality of life for all citizens by the year 2030.Among the priority areasscheduled for implementation in the initial year of the Plan are projects geared towards national healing andreconciliation,as well as rapid economic reconstruction to reverse the damage and setbacks the country sufferedfollowing the December 2007 General Elections.The prominence given to equity measures in this document istherefore expected to contribute to the reconciliation process and to the overall national economic growth.In support of the goal of achieving high economic growth rate of 10 per cent by 2012,the Plan contains detailed policymeasures and interventions that will be implemented in all sectors of the economy.The policies have also beenprepared to bring about a higher and sustainablegrowth with equity.In this regard,the government is committed,overthe course of the next five years,to attaining the target of reducing the number of Kenyans currently living below thepoverty line,from 46 per cent to 28 per cent.Accordingly,this Plan also outlines specific policy interventions that willbe implemented in various sectors to ensure the realisation of this important goal.Other critical issues and challenges addressed under the various chapters and sections of the Medium Term Planinclude the creation of more employment opportunities especially for the youth who presently constitute the largestsegment of the nation's labour force and the pool of the unemployed.The attainment of gender balance in our nationalprogrammes as well as introducing measures aimed at bringing more equitable development in all regions of ourcountry is another key objective of the Plan. A large part of the financing of the infrastructure and projects scheduled for implementation under the
MTP 2008-2012
is expected to come from the private sector in the form of both local and Foreign Direct Investment (FDI).To facilitate this,the government has developed a policy on Public Private Partnerships (PPPs) and the modalities for its implementationwill soon be put in place.Learning from our previous experience,many important development initiatives have in effect,been constrained by failure to address governance issues coupled with a large quantity of inappropriate and outdatedlegal framework.Consequently,the
MTP 2008-2012 has identified and listed the major critical reforms and pieces oflegislation which need to be enacted and operationalised to ensure that the Plan is successfully implemented.Moreover,a special session of the National Assembly will be called upon to deliberate on the list of critical,legal enabling bills andlegislation that will need to be expeditiously passed to facilitate the implementation of this Medium Term Plan.Finally,I must emphasise that the successful implementation of the
MTP 2008-2012
calls for dedication andcommitment from all Kenyans.Indeed,we will also expect equal support from the private sector and developmentpartners.Kenyans have always appreciated the development assistance they receive from donor friends.I am thereforeconfident that with the renewed spirit of national reconciliation and nationhood,and under the Grand CoalitionGovernment we will collectively achieve the goals set out in this Plan.
H.E.Mwai Kibaki,C.G.H.,M.P.,President and Commander-In-Chief of the Armed Forces of the Republic of Kenya
iii List of Acronyms vi Executive Summary viii Chapter 1:SETTING THE CONTEXT OF THE VISION 2030 MEDIUM TERM PLAN 1.0Overview21.1Progress Achieved under the Economic Recovery Strategy (ERS)21.2The Remaining Challenges31.3Short Term Measures to Address Social-Economic Recovery31.4Equity and Wealth Creation opportunities for the Poor31.5Programmes and Projects for 2008 - 201241.6Information,Education and Communication (IEC) Strategy for the MTP 2008-201261.7Risks to the Implementation of the MTP 2008-2012 and Mitigation Measures6 Chapter 2:THE MACROECONOMIC FRAMEWORK 2.0Overview82.1Situation Analysis of the Economic Performance under the ERS (2003-2007)82.1Impact of External environment102.3Measures to mitigate effects of post-election crisis and growth prospects102.4External Financing132.5Structural Reforms132.6Medium Term Employment Projections14 Chapter 3:FOUNDATIONS FOR NATIONAL TRANSFORMATION 3.0Overview163.1Infrastructure163.2Information and Communications Technology (ICTs)253.3Science,Technology and Innovation293.4Land Reforms343.5Public Sector Reforms363.6Human Resource Development,Labour and Employment383.7Security,Peace Building and Conflict Resolution45
CHAPTER 4:THE ECONOMIC PILLAR
4.0Overview584.1Tourism584.2Agriculture,Livestock and Fishing634.3Wholesale,Retail and International Trade704.4Manufacturing74
4.5Business Process Outsourcing784.6Financial Services79
CHAPTER 5:THE SOCIAL PILLAR
5.0Overview865.1Education and Training 865.2Health975.3Environment,Water and Sanitation1045.4Population,Urbanisation and Housing1125.5Gender,Vulnerable Groups and Youth116
CHAPTER 6:THE POLITICAL PILLAR
6.0Overview1246.1Governance and the Rule of Law1266.2Decentralisation135
CHAPTER 7:THE IMPLEMENTATION FRAMEWORK
7.0Overview1427.1The National Integrated Monitoring and Evaluation Sytem1427.2The Role line Ministries and Government Departments1427.3District/Devolved Level Reporting and Monitoring1437.4The National Economic and Social Council1437.5The Vision Delivery Secretariat1437.6The Vision Delivery Board144
ANNEX:THEIMPLEMENTATION MATRICES
144
LIST OF TABLES
Table 2.1:ERS 2003-2007 Targets and Actual Performance11Table 2.2:Real GDP Growth Targets,2008-201211Table 2.3:Projections of Main Macroeconomic Indicators,2008/09 – 2012/1312Table 2.4:External financing Requirement and resources,2007/08 – 2012/13 (US$ Million)13Table 2.5:Employment Projections,2008 - 201214Table 3.6:Interventions in the informal sector (
Jua Kali
Sector) over the ERS period39Table 4.1:Tourism Arrivals and Earnings,2002 - 200759Strategic Thrust - Electoral and Political Process129Strategic Thrust - Democracy and Public Participation129Strategic Thrust - Transparency and Accountability
Executive Summary
•Overview
:This
Medium Term Plan
(MTP) identifies the key policy actions and reforms as well as programmes andprojects that the Grand Coalition Government intends to implement in the period 2008-2012.It is the foundationfor the first phase ofimplementing
Kenya Vision 2030
,Kenya's new,long term policy blueprint.The overallobjective is to realise a higher and sustainable growth of the economy in a more equitable environment,accompanied by increased employment opportunities.The MTP incorporates the activities identified in the
Report of the National Accord Implementation Committee on National Reconciliation and Emergency Social and Economic Recovery
and the country's
One-Year Economic and Social Recovery Plan
,all of which target a quick economicand social recovery,following the destructive aftermath of the December 2007 General elections.
•Economic Growth Targets:
The MTP aims at increasing real GDP growth from an estimated 7 per cent in 2007to 7.9-8.7 per cent by the years 2009-2010; and to 10 per cent by 2012.Over the next five years,savings andinvestment levels are targeted to increase at a high rate in order to support the high economic growth andemployment creation envisaged under the Plan.
•Tourism:
The overall strategy for the Tourism sector is to treble national earnings by increasing internationalarrivals from 1.6 million to 3 million,while also increasing the average spending per visitor from Kshs.40,000 to70,000.In this regard,three Tourist Resort Cities will be established in the next five years:one in Isiolo and twoat the Coast to enhance bed capacity and improve the standards of tourist accommodation and facilities.
•Agriculture and Livestock:
Agriculture contributes directly to over a quarter of the GDP and provides a source oflivelihood to the majority of Kenyans.Indeed,it is expected to grow at a pace of about 6-8 per cent as a result ofvarious measures to be implemented under the MTP,including a reduction in the cost of farm inputs such asfertiliser; improving farm prices; providing higher value addition; improved marketing and the implementation ofpolicies to revitalise the sector,while increasing overall agricultural productivity.The government will also irrigatean additional 1.2 million hectares of land for crop production while five disease-free zones will be established indifferent parts of the country to improve the health and quality of livestock and to facilitate export of livestock andlivestock products into the world market.
•Manufacturing,Wholesale and Trade:
The sector is targeted to increase from the current 5 per cent to 10 - 12per cent by 2012.To meet this target,two Special Economic Clusters will be set up in Mombasa and in Kisumufor manufacturing establishments.Additionally,at least five Small and Medium Enterprises (SMEs),IndustrialParks and Specialised Economic Zones will be set up.Among the projects to be implemented in the Wholesaleand Trade sector are the construction of wholesale,retail and hawkers markets throughout the country andfacilitating the creation of 1,000 - 1,500 producer business groups.
•ICT and BPOs:
A BPO Park and digital villages will be established to enhance the low cost of provision of ICTgoods and services while also facilitating productivity and growth of other sectors of the economy.The BPO sectoris expected to create an additional 7,500 jobs and to increase its contribution to GDP by Kshs.10 billion.Theunderground submarine cable currently under construction,along with the implementation of the NationalTerrestrial Fibre Optic Network Project under this Plan will create a positive developmental impact through itsfacilitation of widespread internet connectivity to ensure universal access to ICT throughout the country.All thesewill enhance Kenya's economic competitiveness and development of a knowledge-based society.It will alsocreate new income-earning opportunities for Kenya's youth,thus answering to the acute need for jobs in thatsector of the population.
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VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
•Financial Services:
In order to implement the Flagship Projects in the six economic sectors falling under theEconomic pillar of Plan,an estimated Kshs.500 billion will need to be invested.The government will invest Kshs.250 billion in the next five years to ensure the implementation of these projects,with the remaining half expectedto be financed by both local and foreign private investors,and many through PPP arrangements.The FinancialServices sector is thus expected to play a key role in mobilising the savings and investments required toimplement the Medium Term Plan.Among the financial service strategies to be implemented will be the re-organisation of the National Social Security and Pension system; Insurance and Banking sectors as well asSACCOs and capital markets with a view to facilitating higher savings and investment.Measures will thereforebe taken to improve the reach and access of financial services since currently,only 19 per cent of Kenyans haveaccess to formal financial services.The Financial Services will also target improving access to informalbusinesses,SMEs,Youth and Women groups and different categories of entrepreneurs.
•Employment and Job-Creation
:To increase employment,the Plan targets the creation of an additional 3.5million jobs within the next five years.In order to address equity and poverty reduction,it aims at significantlyreducing the number of Kenyans living in poverty,from 46 per cent to 28 per cent,while raising average annualincomes from an estimated USD 650 in 2006 to USD 992 by 2012.It also seeks to reduce the rural and urban
Gini
coefficients from the current levels of 0.38 and 0.447 to 0.34 and 0.407 respectively by 2012,while raising thelevel of Kenya's Human Development Index from approximately 0.5 in 2007 to 0.7 by 2012.
•Education:
Among the programmes and projects planned for the education sector within the next five yearsinclude:constructing and fully equipping 560 secondary schools; building at least one boarding primaryschool in each constituency of the ASAL districts; and recruiting an additional 28,000 school teachers.Otheractivities to be implemented during the Plan period are the integration of the Early Childhood Developmentand Education Programme; the introduction of Special Needs Education into basic education; CurriculumDevelopment and Review as well as developing new programmes towards the enhancement of ICT educationand Adult Basic Education.The target set by 2012 is to raise the primary to secondary school transition rateto 75 per cent and the rate from secondary to university to 15 per cent.All this will help reduce enrolmentdisparities between regions and across gender while advancing national education indicators close to that ofa middle income country.
•Health:
The main goal of the health sector is to provide affordable and quality health care to all citizens,involving(among other things) the restructuring of the health delivery system in order to shift the emphasis to preventiveand promotive health-care,which will lower the nation's disease burden.A devolution approach will therefore beadopted to facilitate the allocation of funds and responsibility for delivery of health care to district hospitals,healthcentres and clinics.Furthermore,Community-level health units will be introduced to serve local populations.Suchunits will be supported by a well trained cadre of Community–Owned Resource Persons (CORPs) and CommunityHealth Extension Workers (CHEWs).Furthermore,a viable Mandatory National Health Insurance Scheme will beconsidered over the medium term period.Among the health sector targets to be achieved in the next five yearsinclude the reduction of under five years mortality rates from 120 to 33 per 1000; reducing maternal mortalityfrom 410 to 147 per 100,000 live births; increasing the proportion of birth deliveries by skilled personnel from 42per cent to 95 per cent; increasing the proportion of immunised children below one year from 71 per cent to 95per cent; reducing cases of TB from 888 to 444 per 100,000 persons; reducing the proportion of in-patientmalaria fatality to 3 per cent and reducing the HIV prevalence rate to less than 2 per cent.
•Water
The provision of clean water,sanitation and waste management is closely related to the status of humanhealth.However,the current water supply is poor,with only 57 per cent of households using water from sourcesconsidered safe.Available data also indicates that about 75 per cent of the country's urban population and 50per cent of the rural population currently have access to safe drinking water.To address this problem,a numberof programmes and projects will be implemented,including the rehabilitation and protection of forests in five
water towers; water storage and harvesting programme through the construction of two large multi-purposedams with capacity to store 2.4 billion cubic meters as well as the development of sanitation and urban sewerageprogrammes.
•Gender,Vulnerable Groups and Youth:
Over the Medium Term Plan period,the government will continue tomainstream gender into all government policies,plans and budgets,with the aim of achieving gender equity in allaspects of society.Affirmative action will subsequently be implemented to ensure that women have at least 30per cent representation in recruitment,promotion and appointment at all levels.The Women Enterprise Fund willbe increased during the Plan period.Furthermore,an efficient legal system will be put in place to help protect therights of individuals and reduce gender based violence and other human rights violations on vulnerable groups.Currently,there are an estimated 2.4 million orphans in the country,including over 1.2 million orphaned due toHIV/AIDS.Measures will also be taken through the MTP to address the plight of these vulnerable groups includingthe Orphans and Vulnerable Children,Persons with Disabilities,the aged,and Internally Displaced Persons.Currently,the youth constitute 38 per cent of the population and this number is projected to increase from 11million to 16 million over the MTP period.Measures will therefore be taken to facilitate the training of young peoplein technical,vocational and entrepreneurial skills to equip them with relevant skills to participate fully inproductive activities.Youth polytechnics will also be revitalised and expanded in all districts.The Youth EnterpriseFund will be increased and in addition,youth will be employed in labour intensive road projects,tree plantingprogrammes and other productive activities.
•Housing:
The housing sector is characterised by the absence of adequate,affordable and decent housing,particularly for low-income earners in urban areas and equally so,in the rural sector.The country also faces theproblem of low level of urban home ownership (16 per cent) and extensive and inappropriate dwelling unitsincluding slums and squatter settlements.Out of a total of 150,000 housing units required annually in urban areas,only an estimated 35,000 are produced; i.e.only 23 per cent of the demand is met.The quality of housing alsovaries from one part of the country to another.It is estimated that only 20 per cent of the houses constructed caterfor low income households despite the fact that they constitute the majority of households in Kenya.To addressthis problem,plans are in place to build 200,000 housing units annually by 2012.In this regard,incentives will beprovided to the private sector to construct houses,and to individuals through establishment of a secondarymortgage finance corporation.The Capacity of local authorities to provide serviced land to produce low costhousing will be enhanced and they will be encouraged to construct low cost housing units through PPParrangements.
•Physical Infrastructure:
The development of high quality national physical Infrastructure is a critical foundationfor this MediumTerm Plan.The strategies and measurers to be pursued in the medium term period include thestrengthening of the institutional framework for infrastructure development; raising the efficiency and quality ofinfrastructure as well as increasing the pace of implementation of infrastructure projects so that they arecompleted within the specified time frames.A National Spatial Plan to optimise the development and utilisationof infrastructure facilities and services will therefore be developed.The operationalisation of the PPP policy willalso be expedited to facilitate private sector participation in infrastructure facilities and services strategicallycomplemented by public sector interventions.The five-year target is to have 64,500 km of well maintained andmotorable roads with a total of Kshs.186 billion spent on road construction and upgrade during the 2008-2012period.Over the same period,the government will concession many toll roads to be built by the private sector.A new transport corridor linking Lamu,Ethiopia,Southern Sudan and Somalia to a second port to be constructed atLamu will be developed and implemented through Build,Own,Operate and Transfer (BoT) arrangements at a costof USD 15-20 billion while a free port at Dungu Kundu in Mombasa will also be developed.The other majortransport infrastructure projects will be the development of a Rapid Bus and light rail system in the NairobiMetropolitan area,which is expected to serve as a prototype for the other main urban areas in the country.
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VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
•Energy:
An Energy Access Scale-up Programme will be implemented through which a million households will beconnected with energy in the next five years at a cost of Kshs.84 billion.A major project to connect Kenya to theSouthern Africa power pool through Tanzania at a cost of USD 110 million will also be implemented in two years,while other projects in the power sector will include geothermal,solar and wind power.
•Governance,Peace Building and Conflict Management:
Thestrategy for improving governance and the rule oflaw will focus on rebuilding confidence among Kenyans,particularly in the light of the 2007 post-elections crisis.The aim is to ensure that the safety and security of Kenyans is guaranteed at all times; that Kenyans from all walksof life have equal access to justice and that disputes will be resolved through non-violent,amicable and legally-sanctioned mechanisms.To enhance security in urban areas,a national CCT/Camera Surveillance project will bepiloted in four major urban locations of Nairobi,Mombasa,Kisumu,and Nakuru.An additional 20,000 housingunits will be developed for Police Staff Housingwhile othermeasures will include the establishment andoperationalisation of a
National Security Data Centre
and the rolling out of the National Community PolicingInitiative to all parts of the country.Also,in order to improve on good governance and the rule of law,a new draftconstitution will be finalised and presented to the public through a national referendum in the early phase of theMTP.An Independent
Truth,Justice and Reconciliation Commission
(TJRC) will be operationalised in 2008/09while the Independent
Electoral Review Committee
(the Kreigler Committee) already established will present acomprehensive report in the 2008/09 fiscal year.To promote national cohesion a permanent
Ethnic and Race Relations Commission
of Kenya will commence operations in 2008/09.Additionally,national policy,legalframework and the justice system will be aligned with the needs of a market-based economy,with a strongnational human rights and gender equity commitments.The laws and regulation covering political parties and theregulatory framework covering the electoral process will also be amended in line with the
Kenya Vision 2030
goalof promoting genuinely competitive and issue based politics.
•Conclusion:
The policy,legal and institutional reforms that are necessary to ensure the successful implementationof the MTP are elaborated in subsequent sections of this document.The Grand Coalition Government will thereforeensure that the requisite legislation and reforms are undertaken upfront so that the sector programmes,projectsand activities are implemented within the specified time lines and as highlighted in the strategy's ImplementationMatrix.The programmes and projects to be implemented under PPPs are also highlighted in each of the sectors'Implementation Matrices to be found in the final pages of this document.
1. Setting the Contents of Vision 2030
2. 1.0 Overview 3. The 4. Medium Term Plan (MTP) 2008-2012 5. is the first in a series of successive 5 year medium term plans which willimplement the 6. Kenya Vision 2030. 7. It will implement the Flagship Projects identified under 8. Vision 2030 9. as well as otherkey policies and programmes over the next five years.A large part of the financing and investment of the programmesand projects is expected to come from the private sector through the Public Private Partnerships (PPPs).The plan callsfor increased levels of savings and investment to facilitate the growth and development envisaged by 2012.The ratio ofinvestment to GDP is targeted to rise by 10 percentage points in the next five years while that of domestic savings to GDPis targeted to increase from the current 16 per cent to 26 per cent over the same time period.Other than high growth,the MTP places a premium on faster job creation,poverty reduction,improved incomedistribution and gender equity while also ensuring that balance is attained in development across all regions of thecountry.The policies and reforms contained herein aim at achieving faster and significant structural changes inKenya's economy in terms of increasing the share of manufacturing and industry in GDP and that of manufacturedexports in total exports.Additionally,the strategy identifies policy,legal,and institutional reforms that are required tobe implemented in each sector to facilitate the implementation of the programmes and projects over the next fiveyears.In this regard,the government will ensure that the requisite legislation is passed and necessary public sectorreforms effected expeditiously.In light of the current concerns about global warming and the need to ensuresustainable growth which safeguards the health of the environment,the government has taken on board these issueswith environmental sustainability being factored in as a cross cutting issue in all the MTP sectors. 10. 1.1Progress Achieved under the Economic Recovery Strategy (ERS) 11. The various reports and surveys published since publication of the Economic Recovery Strategy (ERS) for Employmentadn Wealth Creation,2003 - 2007 in 2003 including the Annual Economic Surveys; the Annual Progress Reports (APRs),the Annual Public Expenditure Reviews (PERs),the Mid-Term Reportof the ERS,the Annual APRM Report and the KenyaIntegrated Household Budget Survey (KIHBS) all attest to significant progress being made the ERS period.The economyrecovered from a low growth of 0.5 per cent in 2003 to 7 per cent in 2007.As a result of the strong growthperformance,real per-capita income have increased at an annual average rate of 3 per cent over the recent periodwhile poverty declined from 56.8 per cent in 2000 to 46 per cent in 2006.Following the Government policy of Universal Free Primary Education (UPE),an additional 2.1 million children havebeen enrolled in primary school,bringing total primary school enrolment to 8.2 million compared to 6.1 million in 2002.Success has been achieved in combating the HIV/AIDS with the prevalence rates declining from 13 per cent in 2001to 5.1 per cent in 2007.Significant progress has been achieved in public sector reforms resulting in Kenya winningthe United Nations Public Service Award in the category "Improving Transparency,Accountability and Responsivenessin the Public Service"in June 2007.The 2008 World Bank "Doing Business Report"records significant improvementin Kenya's overall ranking,making the country one of the top ten global reformers in terms of ease of doing business. The Remaining Challenges
Despite the achievements made in reviving economic growth and meeting many of the ERS targets,the country is stillconfronted with major developmental challenges.These include the challenge of faster job creation that is requiredto address the high unemployment of labour and which is compounded by an increasing number of youths leavingschool and unable to find gainful employment; the large number of Kenyans still living in poverty; high inequality inincome distribution; inequity in gender; considerable disparities in development among the different regions of thecountry; low savings and investment rates; insecurity; persisting corruption and weak governance; poor infrastructure;slow progress in achieving structural changes in the economy,away from reliance on agriculture and export of primaryproducts.
1.3Short Term Measures to address Socio-Economic Recovery
The events following the December 2007 general elections impacted negatively on the economy.In addition to loss oflives of many innocent Kenyans,they led to the dislocation of 350,000 people,destruction of property estimated atKshs.90 billion,and general disruption of social and economic life.In its first year this MTP will incorporate themeasures aimed at mitigating the effects of the post election problems and thereby facilitating faster economicrecovery.A mitigation and Settlement Committee has been set up by government to resettle and rehabilitate InternallyDisplaced Persons (IDPs).The Government will also take measures to enhance security,rebuild the affected economicand social infrastructure such as schools,health facilities,water supplies and sanitation facilities,bridges,culverts,railway lines and roads.There will also be measures to initiate and support activities that enhance the positiveengagement of the youth.These will include recruitment of 5,000 youth to the National Youth Service and employingthem in the reconstruction of damaged infrastructure and in other useful activities such as tree planting under the Treesfor Jobs Programme and other environmental projects.The youth will also be employed in expanded labour intensiveRoads construction projects including the Roads 2000 and CDF Roads Programme.To ensure quick recovery of the most adversely affected economic sectors,the Government will resettle farmers andfarm workers back to their farms,provide assistance in the form of seeds,fertiliser,land preparation and planting,and intensified extension Services.The government will also aggressively re-brand Kenya as a safe destination andenhance security on critical tour routes leading to game parks as well as strengthening the Tourist Police Force. Additionally,Kshs 10 billion will be allocated to assist the business community to re-build their premises and provideworking capital for un- insured businesses and to re-stock supplies and products.
1.4Equity and Wealth Creation opportunities for the Poor
Social equity and equitable access to public services have been part of the nation's development agenda sinceindependence.However,concerns have been raised on the extent of disparities between the rich and poor andinequitable distribution of public resources between individuals,regions and along gender lines.There are also rural-urban inequalities,income disparities within the rural areas themselves and within major cities and towns.Moreover,an increasing number of urban residents live in informal settlements that lack the most basic amenities.Suchdisparities which include issues of quality have been a major cause of social tensions in the country as was evidentduring the 2007 post-election crisis.Inequality and poverty therefore remain among the key development challenges that the government continues toconfront and address.Whereas substantial attention has been placed on poverty alleviation,there exists a huge gapbetween the poor and non-poor in the entitlement to political,civil and human rights.There also exists large disparitiesin incomes and access to education,health and land,as well as to basic needs,including; clean water,adequate housing and sanitation.In addition,there exist other remarkable intra-regional,inter-regional,and gender disparities inpoverty and inequality levels.In 2006,the absolute poverty varied from a low of 11 per cent in Kajiado District,to ahigh of 94 per cent in Turkana district,and yet the two districts are in the same province.In the urban areas,the povertyprevalence was 30 per cent for male-headed households compared to 46.2 per cent for female-headed households.Further,the proportion of children who die in the first year of their lives in Nyanza province is twice that of Rift Valley.In 2004,HIV/AIDS prevalence in Kisumu and Mombasa was 18.4 and 12.3 per cent respectively,compared to 4.1 and5.0 per cent in Embu and Malindi respectively.Indeed,the scourge affects and impacts on men and women differentlywithin regions. Although various interventions have led to the reduction in poverty and improvement in equity particularly in ruralareas,the poverty and inequality levels prevailing in various regions of the country are still unacceptably high.Hence,more effort will be made under this MTP to reduce these levels even further.The key programmes aimed at reducing poverty and inequalities by 2012 are outlined in the subsequent chapters ofthis document and will be critical towards achieving a socially equitable and just society.The government willimplement policies and programmes that minimise the differences in income opportunities and access to socialservices across Kenya's geographical regions,paying special attention to the most disadvantaged communities in the Arid and Semi-Arid Districts,urban informal settlements and pockets of poverty in high potential areas.It will alsoincrease community empowerment through "devolved"public funds for both social and income programmes. Allocations to these funds will be in favour of the most disadvantaged communities and areas.Resource utilisationwill be in accordance with locally determined priorities identified in a transparent,participatory and accountableprocess.Accordingly,the realisation of the overall growth objectives projected in the macro-economic framework ofthe Medium Term Plan will act as a catalyst for poverty reduction and empowerment at community level.In the course of the first fiscal year of this Medium Term Plan,the issue of resettling the Internally Displaced Persons (IDPS)will be comprehensively addressed.The Government Finance Management Humanitarian Fund for the Mitigation of effectsand resettlement of victims of post 2007 election violence will therefore be fully operationalised.The government will alsofully implement the measures identified by the National Reconciliation and Emergency Social and Economic RecoveryStrategy Report (March 2008) prepared by the National Accord Implementation Committee to address needs of IDPs.In order to tackle poverty and inequality in the medium term period,the following key targets that are in line with thoseof industrialising countries need to be achieved:•Raising the average annual incomes per person from an estimated US$650 in 2006 to above US$992 by 2012;•Reducing poverty levels from the 46.9 per cent to 28 per cent by 2012;•Reducing rural and urban inequality from the current levels of 0.38 and 0.447 to 0.34 and 0.407 respectively by2012; and•Raising the level of Human Development Index for Kenya from about 0.532 in 2007 to between 0.6 and 0.7 by 2012.
1.5Programmes and projects for 2008 - 2012
To work towards the realisation of the above targets,the following flagship projects will be prioritised and implemented:
Profiles of the Poor and their needs:
This will map out the spread of the poor throughout the country and create profilesfor their pressing needs.Targeted programmes and projects will be formulated in light of the data profiles established.
A Comprehensive Study and Analysis of Poverty Reduction Initiatives:
A comprehensive study and analysis of thediverse poverty eradication initiatives in the country originating from the Government,NGOs,Private sector,
development partners and faith-based organisations,will be undertaken to enable the government understand theireffectiveness.This will enable the government reformulate and update the National Poverty Reduction Strategyincluding using the poverty data to guide the allocation of resources to areas and regions with high poverty levels.
Promotion of Pro-poor growth through targeted poverty programmes and projects:
The government will promoteequitable growth that provides the poor with genuine opportunities to participate in decision making to shape theirfuture.The government will implement pro-poor growth strategies that take cognisance of the following key factors:(i) Rapid and sustainable growth as a fundamental factor for poverty reduction; (ii) Improve the capacities of the poorto participate in growth and take advantage of the opportunities that growth generates; and (iii) Provision of accessible,affordable and quality social services.
An Integrated National Strategy for Good Governance and effectiveness of devolved funds:
In order to enhancecommunity empowerment through devolved funds,the government aims at increasing the amount of devolved fundsby the percentage growth in annual revenue.This goal will be achieved by increasing the amount,efficiency andeffectiveness of devolved funds and increasing public participation and voice of the poorest members of localcommunities so that development issues of concern to such members can be channelled into public policy.AnIntegrated National Strategy will be developed to promote good governance and effectiveness of use of devolved funds.
Social Programmes:
The government will initiate programmes that target the poorest of the poor.This will take intoaccount local basis of livelihoods such as the unique needs of the poor in pastoralist communities.
Gender and regional parity in access to education,health,and other social services:
The government aims atraising the levels of income,education,individual health,longevity and access to basic needs of all Kenyans.Thiswill raise the Human Development Index for Kenya from about 0.532 in 2007 to between 0.6 and 0.7 by 2012.Thisachievement will reduce social inequalities the country faces today in access to wealth creating opportunities andpublic services across gender,regions and income groups.Revamping the national health infrastructure,targetingof preventive health care,reduction of child and maternal mortality ratios will all prolong the lives of those currentlyunder threat,thus presenting them with better opportunities.In addition,the Ministry of Health will completeongoing institutional reforms to delegate primary health care delivery to local health facilities with the fullparticipation of communities in decision-making.This will allow the Ministry to focus on policy issues.Overall,health expenditure will emphasise preventive and promotive care,which has the highest potential in lowering thenational disease burden.
Wealth creation to reduce income disparities:
The MTP is geared towards reducing inequality occasioned by lack of access and affordability of public services and to create income-earning opportunities across gender,social statusand regions.A key strategy to attaining this goal is to target more wealth creating opportunities for disadvantagedgroups and regions through increased infrastructure spending in the sub-sectors of roads,water,sewerage,communications,electricity targeting poor communities and regions; and availability of affordable and accessible creditand savings programmes.These measures will be aimed at creating an enabling environment for poor communities totake part in wealth creation.
Welfare programmes:
Education and health sectors will play a particularly unique role in the attainment of gender andregional parity.Achievement of a net enrolment ratio of 95 per cent in primary schools,and a transition rate of 90 percent into secondary schools,as well as integration of pre-schooling and primary education,will offer increasedopportunities for currently disadvantaged groups.A voucher system modelled along the Output Based Approach projectwill be developed for disadvantaged children who may not even make it to secondary school to be able to qualify fora bursary.Special welfare programmes will be provided to meet the needs of the most disadvantaged individuals andcommunities in the country in order to raise their overall welfare levels.A social protection fund to cushion vulnerablegroups will also be established.
Information,Education and Communication (IEC) Strategy for the MTP2008-2012
To rally the nation behind the Vision 2030 and facilitate the implementation of the First Medium Term Plan,2008-2012,the government working with other partners and stakeholders will implement a comprehensive Information,Educationand Communication (IEC) strategy whose objective is to ensure that all Kenyans will be made familiar with the goalsof the Vision and that of its first Medium Term Plan.The Ministry of Education will ensure that the education curriculumfor Kenyan school children and students incorporate information relating to the key objectives and goals of the Kenya Vision 2030.The government through the Provincial Administration and the Ministry of Information and Communicationwill also launch a sustained campaign to ensure that Kenyans at all levels; from the grass roots and community levelsto urban centres,are all provided with information on the implementation and progress of Vision 2030,so that they canappreciate its role and support its successful implementation.Well-targeted capacity building programmes andtraining fora on Economic Policy and Development Journalism will be mounted for media practitioners to enableKenyan media practitioners report and critique the national Vision from a more informed standpoint.A national Vision2030 Day will be held once every year throughout the country to enable Kenyans report and reflect on what theirorganisation,community and districts have achieved towards the implementation of the Vision 2030 and its firstMedium Term Plan.
1.7Risks to the Implementation of the MTP 2008-2012 and MitigationMeasures
The MTP which will implement the first five years of Kenya's long term development blueprint,Kenya Vision 2030 isbeing launched at a time when oil prices in the international market are rising to unprecedented high levels.Theincrease in oil prices has also resulted in an escalation in world food prices as food crops are increasingly being usedto produce fuel and bio-diesel.Among the measures to be implemented under this Plan are mitigating measures toaddress these risks and challenges.Some of the mitigating measures in the energy sector include expansion ofgeothermal energy projects,and expansion of initiatives to tap power from solar and wind energy sources.Theprogrammes and projects to boost agricultural output,including food crops and livestock products,through initiativesto reduce cost of fertiliser as well as expansion of land under irrigation for crops are meant to ensure adequate supplyof food and moderate food prices as well as the cost of living.
2. The Micro Economic Framework.
Overview The Vision 2030 First Medium Term Plan
elaborates on the government's five-year plan aimed at accelerating economic growth to 10 per cent by 2012.This chapter presents the medium term macroeconomic framework for the period 2008-2012 that is compatible with the Vision 2030
strategy and the coalition Government's development agenda1.It alsodescribes key structural reforms that the government will implement to bolster a broad-based economic growth that willaddress the social-economic challenges including increasing wealth and equality for all Kenyans.
2.1Situation Analysis of the Economic Performance under the ERS (2003-2007)
In response to bold economic and structural reforms implemented by the government since 2003,the Kenyan economyrecorded a remarkable recovery over the period 2003-2007,as real Gross Domestic Product (GDP) grew steadily from2.9 per cent in 2003 to 7.0 per cent in 2007.This was in spite of the adverse effects of droughts and continuedincreases in the oil prices.On average,real GDP expanded by 5.3 per cent over the period 2003-2007,which compareswell with growth rates achieved by most reforming countries in sub-Saharan Africa.The broad-based economic growth was evident in all sectors of the economy.Agriculture grew at an average of 3.6per cent over the period 2003-2007 mainly in response to government initiatives to revitalise production in the coffee,dairy,livestock sectors.Prices were also favourable during this period leading to improved income and greaterincentives for farmers to expand production.
1.Following the post-December 2007 election unrest,the political players agreed on the National Accord and Reconciliation Bill,2008 that provides for a power-sharing arrangement in the form of a coalition government in Kenya
20032004200520062007 ActualERSActualERSActualERSActualERSProv.Real GDP (%)*2.92.35.13.75.75.16.16.57.0Inflation (%)9.83.811.63.510.33.514.53.69.891-day T-bill (%)3.44.02.93.08.45.06.85.06.8Fiscal deficit(% of GDP),FY to June-3.7-4.0-1.0-4.10.1-3.6-3.3-2.2-2.1Gross Domestic debt(% of GDP),FY to June26.829.225.328.323.427.623.225.623.6Current account (% of GDP)1.0-4.9-1.5-5.7-1.9-7.5-2.6-7.5-4.7Gross foreign reserves:In US$ million1,4681,6201,5172,0961,7662,5722,4152,5393,355Months of import cover3.34.02.75.02.66.02.55.03.3Employment creation ('000)466500483500449500469500475
2
THE MACROECONOMICFRAMEWORK
Source: : ERS 2003-2007 and Economic Surveys (KNBS)
Table 2.1: ERS 2003-2007 Targets and Actual Performance
Industrial output also expanded by an average of 5.3 per cent over the period 2003-2007 buoyed by strengtheneddomestic and external demand,despite the strengthening of the Kenya shilling towards the end of the period.Domesticdemand was fuelled by rising incomes and strong domestic credit expansion,while external demand was supportedby favourable growth in regional trading partners' economies.The services sector expanded at an average rate of 5.3 per cent over the period 2003-2007 and rose to 5.9 per centin 2007.The continued expansion in this sector was largely driven by growth in the tourism sector,which registeredremarkable gains with increased tourist arrivals in response to improved security and marketing.The transport andcommunication sector has also expanded with improvements in port clearance and increased air freight as well ascontinued expansion of mobile telephony providers to outside Nairobi.The strong broad-based economic expansion noted above was supported by generally stable macroeconomicconditions.While the underlying rate of inflation was broadly within the 5.0 per cent target,the overall rate of inflationhas been volatile due to increases in food prices occasioned by dry spells,and the continued increase in world pricesof oil.Overall inflation averaged 11.1 per cent over the period 2003-2007.Reflecting the implementation of prudent fiscal and monetary policy,the 91-day Treasury bill rate declined from a rangeof 8.0 – 9.0 per cent in 2002 to around 6.0 – 7.0 per cent in 2007.Meanwhile,commercial banks lending ratesdeclined significantly from over 18.0 per cent in 2002 to average about 12 - 13 per cent in 2007.This was as a resultof increased competition in the financial sector following entry of new banks,and the favourable macro-economicconditions.Even though lending rates came down,the deposit rates remained unchanged leading to a narrowing ofthe spread between lending and deposit rates from 13.4 per cent in 2002 to 9.1 per cent in 2007.Government fiscal operations were generally satisfactory.The overall budget deficit (commitment basis,includinggrants) on fiscal year averaged about 2 per cent of GDP over the period 2003-2007 compared with a target of 3.2 percent of GDP in the ERS.The ratio of domestic debt to GDP declined from 26.8 per cent in 2002 to 23.6 per cent in June2007,while net domestic borrowing has largely been contained at about 1.8 per cent of GDP in 2006/07 down from3.6 per cent of GDP in 2002/03.This provided room for non-inflationary expansion of credit to the private sector tosupport production activities.The external balance of payments position has remained healthy reflecting in part the diversified sources of the foreignexchange.Over the ERS period,the current account deficit remained modest at an average of 2 per cent of GDP,largelyas a result of large inflows of remittances from Kenyans in the
Diaspora
,and higher receipts from tourism.Capitalinflows,particularly of portfolio nature,were strong and there is also evidence that foreign direct investment picked upover the same period.As at the end of December 2007,gross official foreign exchange reserves held by the CentralBank of Kenya stood at USD 3,355 million up from USD 1,067 million at the end of December 2002.The exchange rate remained generally stable against the US dollar for a greater part of the ERS period,but withtendencies to appreciate in 2007.It exchanged at an average of KShs 75.7 against the US dollar in the period 2003-2006,before appreciating to about KShs 63.0 at the end of 2007.The strengthening of the shilling against the US dollarreflected a strong balance of payments position and the general weakening of the US dollar vis-à-vis other majorcurrencies in the international currency markets.Overall,the recent strong and broad-based economic output expansion and implementation of structural reforms havehad a positive impact on welfare.The growth in per capita income has rebounded strongly from a decline of 2.5 percent in 2002 to an increase of 4.1 per cent in 2007.In addition,the overall incidence of poverty declined from 56.8 percent in 2000 to 46 per cent in 2006,a remarkable reduction of about 20 per cent.Even more significant is the 32 percent reduction in urban poverty from 49.2 per cent in 2000 to 33.7 per cent in 2006,suggesting significantimprovements in living standards for the urban population.
Despite the achievements made in revitalising economic activity,unemployment remains high,as the number of jobsgenerated has not been adequate to absorb the influx of labour entrants.
2.2Impact of External environment
In the past decade,the world has witnessed rapid economic growth and expansion of trade driven primarily by emergingeconomies like China,India and Russia.This trend is expected to continue in the 2008 - 2012 period,although slowedby the rising oil prices and a possible recession in the United States of America.From a demand side,the growing worldeconomy and population offers an expanded potential market for Kenyan products beyond the traditional developedcountry markets.However,other global economic trends including the growth of out sourcing,environmental concernsand increased demand for raw materials are likely to impose greater competition for countries like Kenya.Hence,evenas Kenya attempts to exploit the opportunities availed by the growing world trade,over the medium term,measures willbe implemented to scale up productivity and quality control regimes to ensure that the country enhances itscompetitiveness.The Economic Partnership Agreement (EPA) between the East Africa Community (EAC) partner states and the EuropeanUnion (EU) will be critical determinants of Kenya's opportunities for export led development as well as the potential foradopting certain economic strategies.The Common Market for Eastern and Southern Africa (COMESA) and the EAC willcontinue to be important markets for Kenya's exports,especially for manufactured goods.The multilateral trading arrangements are under review under the auspices of the World Trade Organisation (WTO) inthe context of the Doha Round.The Doha Round benefits to Kenya will depend on the final design of the 'developmentpackage',and in particular,the need for full preferential tariff treatment; limitations of developed countries exclusionsof sensitive areas of interest to Kenya; and increased Aid-for-Trade to enable Kenya enhance its competitiveness andtake advantage of emerging export opportunities.
2.3Measures to mitigate effects of post-election crisis and growthprospects
Given the foregoing external environment and following the post-election disturbances that have adversely affectedagriculture (due to delay in land preparation,displacement of farm workers and rising input cost),industry (due totransportation hitches and insecurity) and services (driven by a decline in tourism),it is expected that economic growthwill slow down to about 4.5 – 6 per cent in 2008.In addition,investor confidence has also been adversely affectedleading to delayed investment that had picked prior to the general elections in December 2007.To mitigate the negative effects of the post-election events,the Grand Coalition Government will re-allocate outlaystoward programmes associated with wealth and employment creation as well as investment programmes that wouldhave a higher level of social impact.In addition,the resettlement of Internally Displaced People (IDPs) following thepost-election skirmishes will be a high priority.This will assist in faster recovery of the agriculture sector andproduction of food crops and thus moderate inflationary pressures.These initial interventions are expected to last for the next twelve months to June 2009.The political stability resultingfrom the establishment of the Grand Coalition Government and restoration of investor confidence on the economy isexpected to contribute to the acceleration of economic growth over the medium term.Real GDP growth is expected toincrease to 8.0 - 8.7 per cent by the years 2009-2010,consistent with the growth path envisaged under
Vision 2030
(seeTable 2.2).Agriculture,which contributes directly to over a quarter of GDP,will rebound and grow at a pace of about 6 percent following an expected improvement of farm prices and the implementation of policies to revitalise the agricultural sector and increase agricultural productivity as envisaged under Vision 2030 flagship projects.Manufacturing growth isexpected to rise from the modest rate of 5 per cent in 2008 to 10-12 per cent by 2012,to become the fastest growingsector.Construction is also expected to receive a boost from higher infrastructure spending and housing construction.Theservices sector is expected to benefit from a rebound in tourism as well as increased communication activities followingthe completion of the under sea fibre optic cable and completion of the fibre optic network across major towns in thecountry.This will also contribute to faster growth in BPOs and ICT-related industries.
The government will continue to pursue macroeconomic policies that promote economic stability with acceleratedeconomic growth,employment generation and wealth creation.In the medium term,the Central Bank of Kenya (CBK)will continue to pursue a monetary program that will deliver low inflation.Despite the expected strong growth in exports of goods and non-factor services,the external current account deficit isprojected to widen gradually to 6.7 per cent of GDP by 2009,reflecting the strong increase in imports associated withincreased foreign direct investment and higher disbursement of long term capital for investment spending.However,netcapital inflows are expected to more than offset the deficit in the current account thereby facilitating an overall balance ofpayments surplus.This should in turn help the government further build up adequate foreign reserves to the equivalent of4.7 months of import cover by 2012 as a way to cushion the economy from external vulnerabilities including high oil pricesand drought effects.This will be equivalent to 6 months import cover using the previous years import bill.Pursuance of a prudent fiscal policy will be one of the government's strategies over the medium term period.TheMedium Term Expenditure Term Framework (MTEF) process will be strengthened to accommodate public spending oninterventions to deal with post-election challenges and the critical flagship projects identified under
Vision 2030
andthe coalition manifesto.The overall fiscal balance (after grants) is projected to decline from about 6.2 per cent of GDPin 2007/08 to a sustainable level of about 3-4 per cent of GDP over the medium term.This will allow domestic debt tostabilise within the range of 21-22 per cent of GDP over the medium term.Underpinning the fiscal programme aremeasures to sustain the revenue to GDP ratio at 20-22 per cent throughout the medium-term,mainly from increasedefficiency in revenue collection with reforms and modernisation efforts at the Kenya Revenue Authority (KRA).Publicexpenditure will continue to be restructured to provide fiscal space for priority interventions.The Public FinancialManagement (PFM) Reform Program being implemented by the government with the assistance of developmentpartners will be implemented expeditiously to strengthen macro economic stability and improve public sectorperformance and service delivery.Prudent management of public sector finances will lead to a positive shift in investorand creditor confidence as well as boost growth by providing the fiscal resources to raise public development spendingfrom 4.6 per cent of GDP in 2006/07 to 9.5 per cent of GDP by 2012.To meet the growth target of 10 per cent,the level of investments is projected to expand by 9.7 percentage points of GDP,raising the level of investments as a ratio of GDP from an estimated 22.9 per cent of GDP in 2007/08 to 32.6 per cent by2012/13.Out of the 9.7 per percentage points of GDP increase in overall investment level in the medium-term,3.9 perpercentage points will come from the public sector in the form of infrastructure developments (roads,transport,energy,ICT,science,technology and innovation and water and sanitation),while the balance of 5.8 per cent is expected to be financedby the private sector (including foreign direct investments).These levels of investment will require a continuous increase inthe level of national savings to sustain economic growth.In this regard,financial sector reform measures will beimplemented and more savings products developed to support the requisite national savings
.
The government will put in External Financing
Total donor support is expected to rise steadily from 3.9 per cent in 2007/08 to about 4.6 per cent of GDP by 2012/13,as the Government improves the absorption capacity of these funds.It is also expected that donor support will increasesignificantly under the recently launched Kenya Joint Assistance Strategy (KJAS) signed by the Government anddevelopment partners and following the formation of the Grand Coalition Government.A significant amount of externalfinancing is also expected to come from the private sector and commercial financing,as improved sovereign creditrating and introduction of a benchmark bond entices international private investors into the economy.
Source: Ministry of Finance Estimates
Table 2.4:External Financing Requirement and resources,2007/08 – 2012/13 (US$ Million)
It is expected that additional resources (to those included in Table 2.4) will become available with the implementationof the wide range of reforms and improved governance.These will be used to scale-up programs in the priority sectors,including MDG related interventions and
Vision 2030
flagship projects.
2.5Structural Reforms
Increasing total factor productivity (TFP),especially in the agriculture sector,is critical to achieving the potential growthtargets.The government will therefore continue undertaking structural reforms in various fronts with the aim ofimproving the efficiency in the allocation and utilisation of resources as well as effective public sector service delivery.Priority areas will include creating fiscal space to finance priority programmes; addressing the root causes of weak competitiveness by reducing transport and distribution costs through better infrastructure; providing reliable andaffordable energy; and addressing corruption and simplifying business procedures.Other reforms initiated under ERScovering governance,public expenditure and financial management,procurement,privatisation,business regulatoryand trade will be deepened.In the area of governance reforms will focus on prevention; investigation and recovery of corruptly acquired assets;strengthening the prosecutorial capacity; enhancing transparency and accountability under a coordinated strategy torevitalise Public Financial Management (PFM),including the management of devolved funds such as the ConstituencyDevelopment Fund,Local Government Transfer Fund and the Road Maintenance Levy; enhancing the effectiveness of
the Public Procurement Authority (PPOA); enhancing the effectiveness of the Privatisation Commission to oversee theimplementation of the Privatisation Strategy that is aimed at promoting accountability and efficiency while also openingopportunities for private sector investment and new technology in public enterprises in addition to implementing acomprehensive financial sector reform strategy.
2.6Medium Term Employment Projections
With an average employment growth projections of 8.2 per cent,total job generation for 2008-2012 is expected toreach 3.7 million in 2012 from about 1.8 million in 2004 or an average of 740,000 new jobs each year (Table 2.5).In2007,the informal sector created 426,900 new jobs compared to 420,400 in 2006.This constitued about 90 per centof all new jobs created outside small scale agricultural sector and pastoralists activities.It is expected that most of the job creation will be transformed into formal or semi-formal employment with strategies to formalise the wholesale andretail sector and revitalise agriculture.
Source: Economic Surveys and KTM Model
Table 2.5:: Employment Projections,2008 - 2012
2. FOUNDATION FOR NATIONAL TRANSFORMATION
Overview
The successful implementation of Kenya
Vision 2030
and especially this First Medium Term Plan will be anchored ona number of cross-cutting factors and themes that are in themselves the foundation of Kenya's envisaged nationaltransformation.These factors,also called enablers,include the central role to be played by an improved and expandednational physical infrastructure including,the roads and railways network; water and airports; InformationCommunication and Technology (ICTs),as well as the overarching role of Science,Technology and Innovation (STI).Other cross-cutting themes include envisaged reforms in the management and utilisation of land; reforms targetingthe entire public sector as well as the overall national human resource development undertaken under the auspices ofthe labour sector.In the wake of the 2007 post-election crisis,there will be deliberately targeted MTP measures toaddress issues of security,peace building and conflict resolution.This chapter considers each of these foundationalfactors and themes,beginning with the medium term plans for the infrastructure sector.
3.1Infrastructure
"Deploying World Class Infrastructure Facilities and Services".
Infrastructure is an important enabler for sustained economic growth.Accordingly,the MTP 2008-2012 seeks toaccelerate and consolidate gains made in the ERS on infrastructure development,focusing on quality,aesthetics andfunctionality of the infrastructure services.The MTP targets increased investments in the road network,water andsanitation services,rail,sea and air transport and energy supply services.Effective and reliable infrastructure is criticalin lowering the cost of doing business and increasing competitiveness of the country.Consequently,under the MTP,measures to reduce the impact of infrastructure and cost of doing business will be implemented. A major concern will be to enhance the level of ICT utilisation in development and management of the country'sinfrastructural base.In deploying world-class infrastructure facilities,measures will be taken to conserve theenvironment as a national asset.Further,citizens will be encouraged to cultivate a social attitude of respect and carefor infrastructure facilities and services.
3.1.1Situation Analysis
On average,the physical infrastructure sector accounts for 2.6 per cent of the GDP and 13.4 per cent per cent of totalgovernment expenditure.In line with the ERS objective of expanding and rehabilitating the infrastructure,annualexpenditure within this sector increased from Kshs.24 billion in 2002/03,to Kshs.78.8 billion in 2007/08.The totalsectoral expenditure increased both as a per percentage of total ministerial expenditures and GDP from 11.8 per centand 2.2 per cent in 2002/03,to 15.2 per cent and 3 per cent in 2005/06 respectively.Recurrent expenditure within this sector accounts for about 55 per cent of the entire sector's expenditure.However,this has been on the decline while that of development has been on the increase.For example,recurrent expendituredeclined from 57 per cent in 2004/05 to 47 per cent in 2005/06,while development expenditure rose from 45 per centto 53 per cent during the same period.This expenditure pattern is in line with government policy of shifting budgetary resources from recurrent to development.The following is a brief analysis of the situation in each of the five mainInfrastructure sectors.
Transport:
In order to address challenges faced in the transport sub-sector,recommendations for a National IntegratedTransport Policy (NITP) were made in 2004.This covered diverse issues like transport infrastructure planning,development and management,legal,institutional and regulatory frameworks,safety and security,funding,gendermainstreaming,utilisation of Information and Communication Technologies (ICTs),as well as environmentalconsiderations.The aim of all this was to create an enabling framework to nurture the development of a safe,efficientand affordable transport system,whilst maintaining the leading edge of technological advancement in a rapidlychanging and globalised environment.
Roads:
During the 2003-2007 period,reforms were implemented to enhance efficiency.In October 2006,Parliamentapproved Sessional Paper No.5 of 2006 on the Management of the Roads sub-sector for Sustainable EconomicGrowth.Subsequently,in 2007,Parliament enacted the Kenya Roads Act 2007,which provided for the creation of threenew agencies to be responsible for the development and maintenance of the road network namely:Kenya NationalHighways Authority (KeNHA) - the implementing agency to manage and maintain all road works on class A,B,C as wellas other rural paved roads; Kenya Rural Roads Authority (KeRRA) - responsible for all rural and small town roads,classD and below including special purpose roads and unclassified roads (currently under county councils and towncouncils),also responsible for Forest Department Roads and County Council Game Reserve Roads and Kenya UrbanRoads Authority (KURA) - to manage and maintain all road works on urban roads in cities and major municipalities.
Rail Transport:
The performance of the Kenya Railway Corporation (KRC) has declined over the years due toinadequate locomotive power and rolling stock capacity constraints caused by inadequate funding.In addition,therehave been significant governance challenges.In an effort to revamp the corporation and contribute to economicgrowth,the Government concessioned the KRC to the Rift Valley Railways (RVR) on 1st November 2006.However,therestill remains significant challenges in the performance of the RVR which will be given top priority.
Maritime and Inland Waterways Transport:
Modernisation and computerisation of Mombasa port facilities is ongoing and this has enabled the port to register improved operational performance over the years,with traffic handledincreasing from 11.9 million metric tons in 2003 to 16.0 million metric tons in 2007.However,this turnaround remainsbelow the performance needed to effectively contribute to national development.In addition,utilisation of inlandwaterways remains a significant challenge.
Air Transport:
Expansion of facilities at Jomo Kenyatta International Airport (JKIA),to include a new state- of- the- artterminal is currently underway.Moi International Airport and forty airstrips have already been rehabilitated as part ofthe effort to improve air services.Wajir airport has been expanded and converted to a military and civilian airport.Isiolo Airstrip has also been fenced-off and land for expansion identified.The Kenya Civil Aviation Authority (KCAA) hasundertaken a programme to upgrade equipment and internal structures to enhance air safety.
Meteorological Services:
The demand for improved meteorological services for various purposes related to transport,the environment and economy have increased significantly.For instance,installation of Very Small Aperture Terminals(VSAT) for data reception and transmission has already been connected to all airports.In addition,the automation ofweather facilities at the JKIA Airport has been undertaken as part of the programme to improve and modernise weatherobservation,data exchange,analysis and forecasting as well as dissemination systems.General Packet Radio Services(GPRS) have also been acquired and installed in meteorological outstations.Further,Public Weather Display (PWD)boards have been installed to display weather information to the public,while construction of district observatoryoffices at Wajir,Mandera,Nakuru and Kericho has been completed.
Energy:
Commercial energy is dominated by petroleum and electricity,while wood fuel provides energy needs for domestic use,especially in rural communities and the urban poor.At the national level,wood fuel and other biomassaccounts for about 68 per cent of the total primary energy consumption,followed by petroleum at 22 per cent,electricity at 9 per cent and others sources of fuel (including coal) standing at less than 1 per cent.Solar energy isalso extensively used for drying and to some extent,for heating and lighting.However,its consumption in Kenya isextremely low standing at 121 kilowatt hours (KWh) per capita (compared to 503khw in Vietnam or 4,595khw for South Africa).The national access rate stands at approximately 15 per cent,while the access rate in the rural areas isestimated at 4 per cent.Overall,the utilisation of coal fuel has remained low in Kenya,despite international priceshaving been reasonable and fairly stable over the years relative to petroleum.The Government has continued to finance the extension of electricity supply in rural areas as part of the basicinfrastructure to stimulate economic growth and employment creation.In this regard,the Rural Electrification Authority(REA) came into operation in July 2007 to fast-track the Rural Electrification Programme (REP).Current policy providesfor the extension of electricity to market centres,public secondary schools,youth polytechnics,health centres,andwater systems,among other community projects.This is intended to increase the access to electricity which in ruralareas currently stands at 4 per cent but is projected to increase to 12 per cent by the year 2012.Moreover,Ethiopiaand Kenya have undertaken a feasibility study to facilitate the transfer of electricity to Kenya from a number of largeEthiopian hydropower projects that provide power at lower costs compared to local ones.Feasibility studies on two regional inter-connectors – Nairobi-Arusha and Jinja-Lessos are complete,while theEthiopia-Kenya inter-connector is currently ongoing.Feasibility studies on three wind turbines are complete,as are twopre-feasibility studies:one on co-generation and the other on solar water heaters respectively.Seven other studieswere completed:two studies on the penetration of energy-saving cook stoves in Kenya; one each on power marketdesign and pre-privatisation; geothermal development company,and unbundling of KPLC; Geothermal reservoiroptimisation and SCADA/EMS system study.With regard to policy,Sessional Paper No.4 of 2004 on Energy Policy was put in place and a new sector legalframework; the Energy Act,2006,enacted to operationalise the policy framework.Further,the Energy RegulatoryCommission was established as a single sector regulator for the energy sector and an Energy Tribunal set up toarbitrate disputes in the sector.A Rural Electrification Policy was also developed to enhance the implementation of theRural Electrification Programme.
Buildings and other Public Works:
Since the implementation of the ERS,the sub-sector has been able to implementseveral projects despite the large portfolio of stalled projects that were an economic liability to the government.However,there has been increased demand for facilities to cater for both office and housing needs besides ensuringthat facilities are well maintained,rehabilitated and refurbished.Over the last five years,140 stalled projects werecompleted (buildings and related works) out of a portfolio of over 200 projects.Thirty projects have been revived andare ongoing while a further 9 projects have been tendered out of which 4 have already been awarded and works areexpected to start.The damage resulting from the 2007 post-elections crisis affected both public facilities as well as private property.Themain public facilities affected included government buildings,vehicles and equipment and sections of roads andrailway lines.In particular,the destruction of the railway line and blocking of roads affected transport to western Kenyaand countries within the Great Lakes region.Moreover,the energy sub-sector experienced great losses due to the theftand destruction of transformers and other expensive equipment.Further,there were delays in ongoing roadconstruction works occasioned by the displacement of workers due to insecurity in the affected areas.
Emerging Issues and Challenges
The infrastructure sector is characterised by a number of challenges that revolve around poor,inadequate and poorlyintegrated infrastructure; inadequate funding levels; out dated technology; and insufficient technical skills andpersonnel.This has been manifested by long infrastructure programme rollout lead times and development periods. A further and critical concern is the lack of a coherent unifying policy,legal and institutional framework to addressthese concerns.
Roads:
This sector faced a number of challenges including:inadequate road maintenance equipment; pavementoverloading by heavy goods vehicles; a huge maintenance backlog of the road network; low contracting andsupervision capacity; congestion within cities/towns and overloading on Kenyan roads; encroachment on roadreserves,and inadequate research on alternative low cost materials for construction of roads.
Energy:
Challenges faced by the sector include:over reliance on hydro-power; long lead times in the development ofenergy infrastructure; inadequate specialised skills and tools required for planning and forecasting energy needs; thehigh cost of rural electrification through grid extension due to the scattered nature of settlements; frequent poweroutages and high system losses,and high and ever rising prices of imported fossil fuels.
Transport:
The challenges faced in this sector include:the over-reliance on one transport corridor; traffic congestionand the accompanying environmental pollution from transport sources; poor traffic management and enforcement oftraffic laws; old,dilapidated equipment used for meteorological services; a shortage of technical staff in all aspects oftransport operations; the low investment in transport infrastructure; an inappropriate institutional framework;inadequate security services at ports and airports,and an out-dated legislation structure.
3.1.3Programmes and Projects for 2008 – 2012
The goals for the Infrastructure sector will be to lay a sustainable foundation for achieving the objectives of
Vision 2030
.They include the following:•Acceleration of ongoing infrastructure development,focusing on quality,aesthetics and functionality of theinfrastructure services developed;•Building infrastructure to support identified flagship projects to ensure its contribution to the economic growth andsocial equity goals;•Improving efficiency and effectiveness of the infrastructure development process at all levels including planning,contracting,and construction;•Providing a utility sector (water,sewerage and electricity) that is modern,customer-oriented and technologically-enabled to provide efficient,cost-effective,quality services to all citizens;•Creating inter-connected,technologically-advanced information and communication systems driving innovation,growth and social progress;•Protecting the environment as a national asset and conserve it for the benefit of future generations and the widerinternational community; and•Cultivating a social attitude of respect and care for public infrastructure facilities and services amongst all citizens.With regard to the goals for the Infrastructure sector under the MTP,and taking into account the challenges experiencedup to the end of 2007,the following strategies will be pursued:•Strengthening the institutional framework for infrastructure development and accelerating the speed of itscompletion; Raising efficiency and quality of infrastructure projects,and increasing the pace of implementation ofinfrastructure projects so that they are completed in specified time frames;•Enhancing local content (materials and services) of identified infrastructure projects i.e.minimising import content;•Developing and maintaining an integrated,safe and efficient transport network;•Supporting the development of infrastructure initiatives around flagship projects;•Benchmarking infrastructure facilities and services provision with globally acceptable performance standardstargeting enhanced customer satisfaction;•Integrating information and communication technologies in the processes of infrastructure services provision;•Implementing infrastructure projects that will stimulate demand in hitherto neglected areas targeting increasedconnectivity and reduced transport and other infrastructure costs;•Developing a national spatial plan to optimise the development and utilisation of infrastructure facilities and services;•Modernising and expanding sea port facilities;•Identifying,developing and retaining the requisite human resources to support the infrastructure facilities andservices; and•Enhancing private sector participation in the provision of infrastructure facilities and services strategicallycomplemented by public sector interventions.The following programmes and projects will be undertaken during the period 2008-2012:
The First National Spatial Plan:
The need for a National Spatial Plan is recommended under agriculture,manufacturing,urbanisation,and environmental management,which are priority sectors under
Vision 2030
.In 2008,work will commenceon the preparation of the First National Spatial Plan for Kenya to guide physical development activities over the next 50years.In addition,it will provide a spatial illustration of all national projects,identify a strategy for land development andaddress issues such as settlement,environment,transport and economic development.This will form a critical basis forappropriate deployment of infrastructure in support of
Vision 2030
objectives.
National Integrated Transport Master Plan:
This project is to be completed within two years of initiation and will belinked to the National Spatial Plan.It will aim at ensuring that investment and location of transport infrastructure andservices are consistent with public policies while ensuring optimal transport infrastructure investment to positionKenya as the most efficient and effective transport hub of the East and Central African region.It will also facilitateimprovement and expansion of transport infrastructure in a manner that will reduce transport costs and also open newfrontiers for economic development.The policy will provide the Government and the private sector with a systematicdecision-making tool for investment in transport infrastructure over the next 50 years.In addition,this programme willhave as its mandate,an integral component of institutional capacity- building to manage roads,ports and air,sea andland transport systems with a view to improving efficiency and effectiveness of service delivery and enhancingrevenue- earning capabilities.
Development of a new transport corridor to Southern Sudan and Ethiopia:
The project involves the developmentof a new transport corridor from the new port at Lamu through Garissa,Isiolo,Mararal,Lodwar,and Lokichoggio tobranch at Isiolo to Ethiopia and Southern Sudan.This will comprise of a new road network,a railway line,oil refineryat Lamu,oil pipeline,Lamu Airport and free port at Lamu (Manda Bay) in addition to resort cities at the coast and inIsiolo.It will form the backbone for opening up Northern Kenya and integrating it into the national economy.
National Road Safety Programme:
The objective of this programme is to fast-track implementation of the National RoadSafety Action Plan to achieve the targets of reducing the incidence of road crashes and their impact on the Kenyan economy.This will be implemented through the development and implementation of a driving school curriculum for both drivers andinstructors on basis of best practices and models in other parts of the world amongst others.Further,the Motor VehicleInspection Unit will be privatised to ensure improved maintenance status of Kenya's motor vehicle fleet.To support effectiveenforcement of traffic regulations,a system of instant fines and ticketing for traffic offences will be introduced.
Computerised Information Maintenance Management Systems:
This programme entails developing threeintegrated computerised systems to manage Kenyan roads,bridges and pavements.The Road MaintenanceManagement System will therefore be used to monitor the condition of roads,and manage road maintenance works.On its part,the Bridge Maintenance Management System will be used to monitor the condition of bridges on the mainroads network and manage maintenance works on those bridges.The Pavement Maintenance Management Systemwill be used for the short and long-term planning of road resurfacing and rehabilitation works.
Maintenance of existing road network and airstrips in the country:
This strategy will lead to the construction of1,327 km of roads through periodic maintenance (9 billion); reconstruction and rehabilitation of 1,364 km of failedroads sections at a cost of Kshs 55 billion and the resuscitation of 40 sealing camps and resealing units at Kshs2 billion.In addition,a road maintenance manual will be developed.The upgrading of 12 existing weighbridgesand the establishment of 15 mobile weighbridges and 4 weigh – in - motion (WIM) will cost approximately Kshs.6billion.In addition,the management of road axle load controls will be prioritised as well as the routine maintenanceof airstrips.
Use of machinery and labour intensive techniques to promote employment and income earning
:The Roads2000 Strategy is set for expansion,from the current 37 districts to over 111 districts during the MTP period.theimplementation of this Strategy will lead to the development of 1,960 km of roads and the training of 3,000 people toundertake the work of road construction.
Road Network Expansion:
The aim is to construct 1,950 km of new roads by 2012 by developing and effectivelymanaging a robust road system that will require minimum maintenance.This strategy will involve carrying out 20feasibility and design studies; provision of 1,950 km of roads to all major production,marketing and consumptionareas; provision of legal framework to repossess illegally acquired land on road reserves,and the expansion of 1,103km of road width to provide for non-motorised-transport (NMT).Under the road transport policy,road concessioning will be introduced on Nairobi bypasses and major roads,includingsections of the Northern Corridor route (Mombasa-Nairobi-Nakuru-Mau Summit-Eldoret-Malaba and Mau Summit-Kisumu-Busia); Machakos turnoff-Nairobi-Rironi (and including the Uhuru Highway); Waiyaki Way; and Westlands toRironi sections.It is expected that at least 3 concessions will be accomplished by 2012.
Nairobi Metropolitan Region Bus Rapid Transit System:
The Government has laid down plans for the developmentof a rapid bus transport system,starting with the following three transport corridors:First is the Athi River Town toKikuyu Town (approximately 38 km); Second is Thika Town to the Central Business District (approximately 50 km); andthird is Jomo Kenyatta International Airport to the Central Business District (approximately 25 km).
Development of light rail for Nairobi and its suburbs:
The area expected to be served by the light rail stretches fromNairobi Railway Station,situated in the Central Business District,to Embakasi/Jomo Kenyatta International Airport,adistance of 15.6 kilometres and serving about 150,000 daily passengers - about 5 per cent of daily passengers inNairobi Metropolis.
Dredging of Mombasa port:
Dredging of the port will be done with the purpose of deepening the channel to 14.5metres to enable larger post-Panamax vessels to access the port and thereby remove the risk of the port slowlyevolving into a feeder facility which larger vessels have no access.
Ferry Services Programme:
This will involve revamping water transport on Lake Victoria,replacing the old vessels inMombasa,and establishing cruise ships and floating hotels network on the Indian Ocean and Lake Victoria to promotetourist activities.
Development of landing sites for smaller boats and canoes:
This project will be undertaken on the shorelines ofLake Victoria.Role of private sector will be enhanced as many of the boats and canoes are privately operated.Other interventions on Maritime and Inland waterways include:•Developing other minor satellite ports (Funzi,Vanga,Shimoni,Kilifi,Malindi,Lamu,Kiunga and Mtwapa) throughstrategic partnership approaches which tap the potential of the private sector in port development andmanagement;•Establishing a Coast Guard to link up with other international community coast guards to enhance the creation of asafe and secure maritime industry;•Revitalise the inland waterways port infrastructure in the lake region,with Kisumu as a regional inland waterwayshub to link with other regional ports such as Bukoba,Jinja,Mwanza and Port Bell.
Rail Transport Programme
:A total of USD 390 million will be spent towards additional capital expenditures over the25 years of the project with the concessionaire investing at least USD 5 Million per year for the first five years.Inaddition,the following will be undertaken on rail transport:The construction of 17.2 km railway by-pass andimplementation of the Relocation Action Plan (RAP) in Kibera and Mukuru areas,creating a 5.2 metre safe zone.
Modernisation of airstrips and airports:
This will involve the rehabilitation,expansion and maintenance of airstripsand airports serving tourist and commercial sites in the country such as in Kisumu,the Coast,Isiolo,Lokichoggio,and Maasai Mara.
Air Facilities Modernisation:
This will be facilitated in order to increase the efficiency of air transport to meet thestandards of FAA and ICAO.In addition,the following will be put in place:Radar/Flight Data Processing Systems;Primary and Secondary Surveillance (MSSR) Radars; Voice Communication Systems; VHF Communication Systems;Surface Movement Control Radars; and a Flight Data Recorder Laboratory including an Investigations Workshop anda Hangar.The mentioned projects will improve aviation safety and security while enhancing the air passenger andcargo handling capacity.Other key interventions in air transport will include:•Modernising and expanding Jomo Kenyatta International Airport and Moi International Airport;•Building an international airport in Kisumu to serve as the aviation hub for the Great Lakes region;•Upgrading airstrips at provincial capitals and sub-provincial towns to national airports and institute propermaintenance of all other airstrips and aerodromes;•Liberalizing the air transport sub-sector to attract public-private ventures;•Enhancing the capacity of regulatory authorities and eliminating the possibility of conflict by separating regulatoryfunctions from service providers like air navigation services and airports.
Meteorological Systems Modernisation Programme:
The objective of this programme is to improve Kenya's disasterpreparedness and mitigation as well as to promote public education and awareness among vulnerable communitiesand decision makers.The programme will involve three components namely:tsunami early warning systems; tidalgauge station,marine automatic weather systems and seismic systems; and the introduction of dynamic modellingcapabilities for prediction of weather and climate.
Weather Modification Programme:
This is an integrated programme with six components,including theestablishment of cloud chamber laboratory for rainfall enhancement; hailstone suppression snow pack augmentationon Mt.Kenya to enhance air quality measurement; improved flash-flood forecasting using Doppler weathersurveillance technology; and improved research to suppress fog and frost on the high-ground areas of Kenya.
Rural Electrification Programme:
A Rural Electrification Programme financed to a tune of Kshs.2.7 billion to cover various parts of the country.Upon completion,the project will facilitate connection of power to 460 trading centres and110 secondary schools,among other public facilities.Furthermore,the Government intends to spend Kshs.180 millionto provide solar electricity generators to 74 public institutions including boarding primary and secondary schools,health centres and dispensaries.
Energy Access Scale-up Programme:
Through this programme,one million households will be connected withelectricity over the next five years at an estimated cost of Kshs.84 billion.The programme will target connecting allmajor trading centres,secondary and primary schools,community water supply works and health centres in thecountry.The Government will also partner with the Government of Uganda and Tamoil East Africa Limited in a jointventure company for the extension of 352km oil pipeline from Eldoret to Kampala.In addition to this will be the construction of a 6,000 ton common user LPG import handling facility in Mombasa.Theconstruction of a 2,000 ton common user LPG handling facility in Nairobi will greatly increase storage space,thusincreasing supply sources.This will eventually result in competitively priced LPG fuel.Public – private partnerships arealso expected to increase parcel sizes imported thereby reducing freight costs and making LPG cheaper to Kenyans.Following the completion of appraisal drilling in Mui Basin of Kitui and Mwingi district,Kenya will have access to localcoal as an energy source.Initial exploration activities indicate the existence of coal in this area.Consequently,anappraisal drilling project to ascertain the commercial quality and viability of the deposits is in progress.
Olkaria IV appraisal drilling of 6 wells:
This is expected to produce 70 mw of electricity.The project is expected toprove that commercially exploitable steam is available in the field.
Wind Power Generation by IPPs at various sites:
It is envisaged that wind power will provide total power installedof about 150mw.Power will also be obtained in the process of producing sugar.It is envisaged that the potentialof about 120 MW will be exploited using sugar factories as a base.This will be done through Public PrivatePartnerships (PPP).
The Energy Sector Recovery Project (ESRP):
This project funded by the World Bank and some bilateral donors,has amajor component on "Distribution Reinforcement and Upgrade"to be implemented over a period of four years.This willimprove the quality and reliability of supply,reduce system losses and increase access to electricity service especially inurban and peri-urban areas.This is of special interest to the industrial sector where power fluctuations and cuts havefrequently led to losses.Further,the Kenyan and Tanzanian Governments have obtained funding to implement a 330kVtransmission line project between Arusha and Nairobi.This will provide an additional source of power.
National Electricity Supply Master Plan:
The initiatives described above with respect to enhancing national powergeneration and supply will be incorporated in a National Electricity Supply Master Plan.The Plan will identify newgeneration and supply sources to ensure that the national electricity supply dependable energy is tripled in the nextten years from the current 1,050 MW to 3,000 MW by 2018.This is necessary to meet the power needs of anexpanding economy and the
Vision 2030
Flagship projects which will be implemented in the key economic sectors.Inlight of the increase in international oil prices,emphasis will also be placed on the development of alternative powersources – especially geothermal,solar and wind power.Given that power projects take time to construct,the NationalElectricity Master Plan will identify the power projects to be initiated in the initial years of this MTP 2008-2012 toensure adequate supply of energy to meet the increase in demand over the MTP period.
Public Facilities Improvement Programme:
This programme will target the aesthetic improvement and functionalityof all public facilities and buildings.Consequently,the maintenance and management of public facilities will beenhanced through comprehensive facility management approaches.The programme will be supported by reliableComputerised Facilities Management Information Systems.In addition,during the Plan period,the sector will developa policy geared towards the development of the construction industry.This will be done by establishing a Contractors Registration Board which will regulate,train,register and deregister non-performing contractors.A NationalConstruction Company will also be established to enhance the capacity of small and medium enterprises.Theestablishment of a Construction Industry Development Board will be set up to review the standards of Design andConstruction as well as the utilisation of a Facilities Management System for existing public facilities.
3.1.4Policy,Legal and Institutional Reforms
National Integrated Transport Policy:
A draft National Integrated Transport Policy (NITP) has been prepared and iscurrently awaiting parliamentary approval.A Sessional Paper on transport sector development will also be preparedand presented to Parliament for legislative enactment.The adoption of the Sessional Paper by Parliament during thePlan period will subsequently lead to implementing recommendations of the NITP,including institutional reforms to beundertaken within the transport sector.
Legal Framework to support Private Public Partnerships in the infrastructure sector:
The legal framework governing the various transport modes will be reviewed to allow for more private sector participation in developing theinfrastructure of the transport sector.
Construction Industry Development Policy:
The performance of the construction industry directly affects thedevelopment and management of infrastructure facilities and services.Hence,a Comprehensive Construction IndustryDevelopment Policy will be formulated within 12 months.Thereafter,it will be consistently implemented through aConstruction Industry Development Board.One of its objectives will be to strengthen the capacity of Kenya'sconstruction industry.
Roads investment policy:
A new road sector policy was ratified by Parliament in 2006.This was followed by an enactmentof the Kenya Roads Act 2007.During the Plan period,the following will be undertaken:full implementation of the SessionalPaper No.5 of 2006 on the Management of the Roads Sub-sector for Sustainable development; establishment andoperationalisation of the three autonomous road sector agencies Kenya National Highways Authority (KeNHA),Kenya RuralRoads Authority (KeRRA) and Kenya Urban Roads Authority (KURA) by the end of 2008 to develop and maintain the entirenational road network.This operation will cost Kshs 450 million.Additionally will be the preparation and implementation ofthe Road Investment Plan (2008-2018) as well as the full harmonisation of legislative framework governing roads.
Development of rules and regulations for the maritime laws:
The rules and regulations to be drafted are expectedto assist during the operationalisation of six maritime law bills.They are:the Merchant Shipping Bill; the MarinePollution Bill; the Carriage of Goods by Sea Bill; the Marine Insurance Bill; the Kenya Ferry Corporation Bill; the Admiralty Court Jurisdiction Bill; and the Amendment Bill.All these bills are due for enactment by Parliament duringthe Plan period.
Transformation of Kenya Meteorological Department into Semi-Autonomous Status:
The Kenya MeteorologicalDepartment (KMD) will be de-linked from the mainstream Civil Service to a semi-autonomous status.This new agencywill be renamed the Kenya Meteorological Agency (Kenya MET).The de-linked Kenya MET will be capable of generatingand borrowing funds in order to offer more efficient and effective services within and outside the country.
Energy:
The sector will continue to implement Sessional Paper No.4 of 2004 governing the use of energy.The followinginstitutional and legal reforms that are embedded in the Sessional Paper and will be undertaken.They include:•Formation of a Geothermal Development Company to undertake resource assessment;•Transformation of KPLC into a government owned transmission company and private sector led distributioncompany; Establishment of a Centre of Excellence for energy efficiency and conservation;•Establishment of energy equipment testing laboratories;•Development of standards and codes of practice on cost-effective energy use; and•Amendment of building by-laws under the Local Government Act Cap 265,in collaboration with the LocalGovernment in order to make it mandatory to incorporate solar hot water systems in urban building designs.
Urban Development Policy
:A policy framework for the proper development and management of the urban sector isvital.This is due to a number of significant challenges faced in urban areas.Firstly,the rapid urban growth isunmatched by services and urban management capacity.Secondly,the rapid growth of slums in urban areas is apotential disaster in the making.Thirdly,the growing tendency towards urban primacy and the imbalance betweenurban and rural development compromises the goals of sustainable development. Accordingly,a policy for urban development (which is currently lacking) will define strategies and mechanisms toenable the urban sector respond effectively to the challenges of urban development in order to meet the needs of urbanareas.This process will also harness the incremental gains achieved by the ongoing initiatives of the Local Governmentreforms,and translate the same into policy.These include:the Local Authorities Transfer Fund (LATF) experiences andthe LASDAP (participatory development,decentralisation and intergovernmental transfer systems).
3.2Information and Communications Technology (ICTs)
"Strengthening the Foundation for a Knowledge Economy"
The Government of Kenya recognises the importance of ICT in economic development and has therefore initiated majorsteps to promote its use.One of the major initiatives that the Government is pursuing is to improve ICT infrastructurein order to bridge the digital divide and lower the cost of communications.The Government is also levelling the groundthrough development and implementation of policy and regulations aimed at attracting investment within the sector.Itmust be emphasised that the Government recognises information to be a resource which must be generated,collected,organised,leveraged,secured and preserved to enhance national prosperity.
3.2.1Situation Analysis
In 1997,the government issued a telecommunications policy statement that underscored the Government's vision ontelecommunications development up to the year 2015.The challenge in 1997 was therefore to transform the monopolypolicy structure to one designed to manage initially,a liberalised telecommunications market and later,the ICT industryin general.This policy was followed by the enactment of the Kenya Communication Act in 1999.The Act created threeentities to spearhead the development of the communications sector.These are the Communication Commission ofKenya (CCK) which is the regulator,Telkom Kenya,a national operator,and Postal Corporation of Kenya (PCK) to dealwith postal services.In 2007,the Government launched the ICT Board to oversee the development of ICT in Kenya and the National AnalogueDigital Broadcasting Migration Plan to be finalised by 2012.In the same year,(2007) the Government also publishedthe ICT strategy for business process out sourcing,as well as the Kenya Communications Amendment Bill and theMedia Bill 2007.The Government has also liberalised the mobile cellular market and currently there are four licensed mobile operators.Following the liberalisation of the international gateway there are now many players in the sector providing satellitebased broadband access.In particular,the mobile telephony providers have introduced internet access products.However,the costs are still relatively high.In an effort to reduce these costs,the Government is investing in both terrestrial and undersea fibre optic cable.In addition,there has been rollout of a broadband wireless connectivity inrural areas through various wireless technologies including Code Division Multiple Access [CDMA] and WIMAX.Mobiletelephone operators are expanding their network and Telkom Kenya is also expanding its network to reach morewireless subscribers around the country As part of the on-going public sector reforms,the government has endeavoured to leverage the use of informationtechnology in order to give Kenyans services that are prompt,convenient and responsive to their demand.To acceleratethe flow and exchange of information,Local Area Networks (LANs) have been installed in all Ministries/Departmentsheadquarters in addition to acquisition of ICT hardware and software.The development of integrated government-wideinformation systems has been accelerated.These include the Integrated Financial Management System and IntegratedPersonnel and Payroll System,online recruitment and selection system,online exam results and pension system.The government has also established a web portal http://www.kenya.go.ke and created web sites for all ministries aswell as mainstreaming the use of emails within the Civil service.In addition,the Government has established adedicated fibre connection for all ministries within the capital to allow for efficient communication between variousgovernment agencies.The ICT sector has been directly involved in mapping,collection and management of data forplanning purposes.Kenya possesses a big comparative advantage in terms of unmatched filming locations and an abundance ofprofessional film makers,artistes and local crew.The last five years have seen the emergence of Kenya as the hub offilming in a number of major international films shot,thus earning the country global recognition and contributing toGDP growth.To spearhead the development and maintenance of an orderly and sustainable film industry,theDepartment of Film Services has continued to license both local and international filmmakers,provided liaison servicesand continued its onslaught as a leading production house.In July 2005,the Kenya Film Commission was establishedto market Kenya as a major filming destination in the region.Subsequently,a restructuring of the Kenya FilmCensorship Board was initiated to enable regulate and set standards for the film industry.The industry has continued to support training both locally and internationally to impart skills for efficient service delivery.The Kenya Institute of Mass Communications (KIMC) and Kenya College of Communications Technology (KCCT) offertraining opportunities to students in the fields of Information and Communication Technology and Mass Media.TheseInstitutes produce market ready graduates every year in the various fields of ICT and mass communication.
3.2.2Emerging Issues and Challenges
Since ICT is a dynamic area,advances in technology are likely to occur frequently.Currently,the following challengesare being experienced within the communications sector:•Lack of an institutional and legal frame work to implement automated services including electronic transactions;•Lack of standardisation of components and systems being procured and applied across the Government;•Limited country-wide ICT awareness that hinders cultural and attitudinal change;•A wide internal digital divide between rural and urban areas as well as low bandwidth;•Financial and human resource constraints;•Bridging the "islands of automation"by allowing sharing of information among agencies;•High costs of ICT utilisation and maintenance;•High costs of migrating from analogue to digital broadcasting;•Challenge of obtaining a better integration of ICT solutions into company and public policies.
3.3.3. Programmes and Projects for 2008 – 2012
Developing affordable information and communication network infrastructure and applications is central to building theinformation economy.Accordingly,the government's objective is to ensure that the country has a competitivetelecommunications industry which delivers reliable and affordable services and products for the economic and socialbenefit of citizens.The development of ICT Parks and Digital Villages will gradually lead to low-cost provision of ICTgoods and services.This is also expected to facilitate the growth and establishment of BPOs.
The East African Marine Systems (TEAMS):
Kenya relies mainly on satellite connections to link it to the rest of theworld.Hence,this makes it costly for outsourcers to do business.In addition,the lack of high-capacity bandwidthconnectivity has limited Kenya from exploiting its full potential.Hence,the government,in collaboration with the United Arab Emirates,will install The East African Marine Systems (TEAMS).This is a submarine cable that will extend fromMombasa to Fujairah in the UAE,thus providing Kenya with an affordable high-capacity bandwidth.Furthermore,thegovernment is pursuing a partnership project with the private sector and it is projected that the construction will becompleted by the end of 2009.
National Terrestrial Fibre Optic Network Project:
The National Terrestrial Fibre Optic Network Project is intended tocomplement the TEAMS project by ensuring maximum utilisation of capacity and connectivity in all districts in thecountry.Consequently,the implementation of the National Terrestrial Fibre Optic project is divided into three maincomponents that will include the Central,Western,Coast and North Eastern regions of the country.
Government Common Core Network (GCCN):
The Government Common Core Network (GCCN) is intended to functionas a shared and secure interoperable government-wide ICT architecture.The system will not only integrate work processes and information flows,but will also improve inter-ministerial sharing of databases and exchange ofinformation.This will eliminate duplication and redundancy,improve public access to government services and ensureresponsiveness in reporting,monitoring and evaluation.
Local and Wide Area Networks:
Local Area Networks (LANs) have been installed in all government ministryheadquarters.In addition,LANs will be put in place in the provinces as well as the districts.Currently,the project hasbeen implemented in five provincial headquarters.These LANS will eventually be linked to the GCCN to form the basisof a national information infrastructure that will allow for seamless communication within the government.The targetis to complete the project during the Medium-Term Plan period.
Kenya Transparency Communication Infrastructure Programme (KTCIP):
The KTCIP programme aims to ensureequity in the provision of ICT services.The programme has two components,namely:•
Establishment of Digital Villages
:The government is currently supporting the development of digital villages atthe constituency level.These centres will provide avenues for the full utilisation of the NOFBI and TEAMSinfrastructure for BPO related initiatives.This will facilitate online delivery of government services and capturingstatistical data right from the constituency level.•
Bandwidth subsidy
:This component aims at providing bandwidth subsidy for universities and colleges,businessprocessing outsourcing,e-government and content development and digitisation.This will accelerate the usageof ICT in learning,social and government institutions.
Data Centre/Data Recovery Centre:
The government Data Centre (GDC) will be established to provide storage for allgovernment data bases.In addition,the Neutral Data Centre (NDC) will provide world-class services to governmentministries,departments and agencies,private sector operators and businesses.
Integrated Management Information Systems (IMIS):
To improve on governance,the following systems will be developed:Pensions Management Information System (PMIS); a Company Registry and e-voting; digitised courtrecording; Geographic Information System (GIS); digitisation of archival resources at the Kenya National Archives; LandRegistry System; Electronic Banking Systems,District Management Information System (DMIS) and IntegratedPopulation Registration System (IPRS).
Information and Content Development:
The government has embarked on initiatives aimed at leveraging on digitalcontent to unlock new opportunities to conduct business.The scope of information and content activities within theICT sector include digital content strategy,creating and protecting content and delivering and accessing content.
Film Industry:
A major goal of the industry is to become a significant player by developing a major motion pictureproduction industry with sufficient employment,and capitalising on the economic,social,and cultural rewardsassociated with such industries worldwide.Hence,the government will implement the following programmes:Marketpromotion and generation of investments within the industry; the development of creative and technical skills;improvement of public,mass media facilities and equipment; development of information,education andcommunication services; public awareness about the industry; film administration and facilitation; and incorporating ageneral restructuring and reforms within the film industry .
Rural ICT Enterprises (RIEs):
The government will facilitate the marketing of locally assembled ICTs such as the PCsand related ICT products on behalf of SACs.It will also encourage rural ICT SMEs or "digital villages"with the necessaryminimum ICT platform for electronic communications to take place.These RIEs will be based at the constituency levelin an effort to offer business solutions suitable to rural settings,taking into consideration the specific business andcommercial needs of Kenya's rural economy.In addition,the RIEs will have the capacity to provide affordable accessto basic and a diversity of ICT services to the surrounding population.
Multimedia Technology Parks (MTPs):
The government has identified the Export Processing Zones (EPZ) in Athi Riveras the location site for the proposed MTPs.Plans are therefore underway to establish more ICT enterprises.
The East African Sub-Marine Cable Systems:
The main objective of the project is to improve the quality of bandwidthavailable for global connectivity by linking the East African region to the Global Submarine System.This will involve thelaying of undersea Fibre Optic Cable from Mombasa to Fujairah in UAE.This project will cost approximately $110m.The project is being implemented in an open access model where operators in the region,under the Public PrivatePartnership Initiative,have invested in a special purpose vehicle.However,the government will retain 20 per cent ofthe project.
ICT Hardware:
ICT hardware is a very important component of ICT infrastructure and a pre-requisite to any meaningfuldeployment of ICT services to the population.Unfortunately,they have to be imported and until recently,importedhardware parts were not subject to any fiscal concessions.Currently,the taxes on ICT hardware are largely zero-rated.Zero-rated taxes on ICTs are integral to the stated government policy objective of universal access to affordable ICTservices.On its part,the Government will set up National ICT Centres of Excellence to develop a critical mass of humanresource required to support capacity for the industry.
Madaraka PC Project:
In collaboration with ICT incubators at Jomo Kenyatta University of Agriculture and Technology(JKUAT),University of Nairobi (UoN),Kenya College of Communications Technology (KCCT),and Strathmore University(SU),the Ministry is implementing a project to assemble a low cost PC for the local market.The project is intended toprovide an incubation environment for students in local universities.In addition,it will give Kenyans access toaffordable,robust PCs and create a market which will not only provide hardware and software products,but also createan environment where these products can be developed and manufactured.It will also facilitate the provision of after-sale and maintenance services.
ICT Software:
The government is currently holding negotiations with various ICT software providers with a view tosecuring bargains which will make ICTs affordable and universally accessible.In addition to providing fiscalconcessions on software,the government will also promote local software development by encouraging a scheme toensure that at least 50 per cent of government software procurement is sourced from local software developers.Thegovernment will also encourage software multinationals like Microsoft and Oracle to offer special incentives like freedevelopment tools,training,certification and marketing support to local software developers.
3.2.4Policy,Legal and Institutional Reforms
Due to rapid technological changes in the sector,the legal and regulatory framework has lagged behind ICT development.Consequently,a clear policy and legal structure will be put in place to guide developments within the sector.
Policy Framework
•Develop and enact National Film Policy;•Review the Telecommunications Sector Policy Framework (March 2006);•Develop and enact National Records Management Policy;•Enact the National Policy on Natural Resource Information; and•Develop and enact E-waste Management Policy.
Legal Framework
•Enact Freedom of Information Bill;•Enact ICT Bill; Repeal Films and Stage Plays Act Cap 222;•Review Kenya Communications Regulations 2001;•Repeal Postal Corporations Act 1998;•Amend Kenya Broadcasting Corporation Act Cap 221.Other Acts that impact on the sector's performance include:•The Monopoly and Price Control Act;•The Copy Right Act;•The Act on Privacy;•The Official Secrets Act;•The Science and Technology Act of 1990; and•The Local Government Act. All these Acts will be reviewed in tandem with changing technology.
3.3Science,Technology and Innovation
"Harnessing Science,Technology and Innovation for Regional and Global Competitiveness"
The integration of Science,Technology and Innovation (STI) in national productive processes is central to the successof the government's policy priorities and programmes outlined in Kenya
Vision 2030
.This is particularly importantwithin the context of demands for global economic competitiveness,sustainable development and equity concerns.Consequently,the development of the necessary scientific and technological infrastructure,as well as the technicaland entrepreneurial skills is an essential prerequisite to the transformation of Kenya into a knowledge-based society.Introducing innovative ideas into products,processes and services is highly dependent on the presence of a clearly defined and supportive policy,as well as having an institutional and legal framework that effectively addresses citizenneeds and aspirations.The capabilities of STI are therefore critical in ensuring sustainable development associated with natural resourcemanagement and disasters.Further,STI capabilities promote sustainable development,especially through socialintegration,conservation and sustainable management of biodiversity; sharing opportunities and benefits of aknowledge-based society and economy and strengthening local and indigenous knowledge and culture.
3.3.1Situation Analysis
If Kenya is to benefit from globalisation,it must enhance the global competitiveness of its exports by using STI.Furthermore,the accelerated emergence of a knowledge-based society and breakthroughs in the sciences has had atremendous impact on the activities of businesses and the government.Indeed,it has also affected the way peoplelive,study,and work.Kenya has recognised the critical role played by STI in its national development.Hence,over theyears,the country has established many S&T institutions in addition to making significant strides in Research andDevelopment (R&D).The MTP prioritises on social and regional equity in the development of technological infrastructure,technical andentrepreneurial skills.In addition,it defines supportive policies inclusive of institutional and legal frameworks.Specificareas of focus include:the development of innovative ideas into products,processes and services; measures aimedat creating more jobs; safeguarding the environment against disasters; and mitigating the effects of climate change.However,greater efforts are needed to ensure that there is an adequate supply of scientific and technological skills.This can be achieved by:•Acquiring and retaining highly skilled staff;•Strengthening policies to enhance awareness and public understanding of science;•Improving the quality of scientific and technological learning;•Encouraging individual creativity and broadening opportunities and support for students to pursue STI studies;•Adapting curricula to changing skill demands;•Including interdisciplinary knowledge and managerial/entrepreneurial skills;•Developing partnerships with the industry.
3.3.2Emerging Issues and Challenges
In Kenya,the challenges faced by the STI sector include the need to develop stronger,national innovation systems.Inaddition,there is a need to ensure sustained development of human resources within the realm of science andtechnology.The relative contribution made by the private and public sectors needs to be considered.The STI sectormust address the changing role of intellectual property rights and global-scale issues that call for enhancedinternational co-operation in science and technology.There is also a need to efficiently harness available naturalresources in a sustainable way for the benefit of all Kenyans.Other challenges include the following:•Enhancing the role of STI in national development;•Ineffective coordination and lack of critical resources and infrastructure to develop and integrate STI;•Inability to acquire,maintain and retain modern equipment as well as personnel;•Weak linkages with the productive sector,as well as regional and international counterparts;•Lack of an integrative policy framework; Mismatch between skills acquired from Kenyan training institutions and the industry requirements; and•Inappropriate and unresponsive intellectual property rights regimes and lack of awareness of STI benefits. Against a background of growing demand for human resources in STI,a recent decline in the number of science andengineering graduates poses a great concern because it could hamper the long-term growth prospects of the country.The challenge of meeting demand for Science and Technology talent is made all the more difficult by waning interest inscience among youth thus leading to a rapid ageing of the workforce in the public research sector.In addition,there is anobvious gender gap among Science and Technology graduates (notably at the doctorate level) with male students forminga large majority.Other concerns include market disincentives to research careers and brain drain of scientific personnel.
3.3.3Programmes and Projects for 2008 – 2012
Since the government of Kenya recognises the importance of STI,it will institute a number of measures to leveragethe STI sector to deal with the challenges it faces for the benefit of Kenyans.These measures will cover the2008–2012 period and are categorised under five,key strategic thrust,namely:
Strengthening Technical Capacities and Capabilities:
Kenya's overall STI capacity and capability is currently weak in comparison with other developing countries.Consequently,the government will focus on the creation of betterproduction processes,placing a strong emphasis on technological learning.The focus will be on technologies andprocesses that enhance national competitiveness and facilitate the creation of quality jobs.In addition,the capacitiesof STI institutions will be enhanced through advanced training of personnel,improved infrastructure,equipment,andby strengthening linkages with actors in the productive sectors.A programme targeting provision of STI infrastructurewill also be implemented over a period of three years.
Developing a Highly Skilled Human Resource Base:
Skilled human resource requirements relate to sufficiency andcompetence.Although Kenya has a pool of talented human resource,there is a shortage of skilled workforce in manySTI fields that support the national priority sectors.In order to develop a highly skilled human resource base,measureswill be put in place to improve the national pool of skills and talent relevant to the needs of national priority areas.Tothis end,a National Skills Inventory and Audit Survey will be implemented to form a basis for targeted long-termdevelopment of a human resource base to support the STI sector in accordance to UNESCO's STI standards.On the basis of this,a National Critical Skills Development Strategy will be formulated for implementation by 2009.Thenumber of researchers,scientists and engineers will be increased to focus on national priority sectors.Furthermore,the current transition rate from secondary level education to university will be increased and the postgraduate trainingwill be strengthened,particularly in the fields of Science and Technology.Numeracy and literacy levels will besubstantially increased by 2012 at all levels of the education system.
Intensification of Innovation in Priority Sectors:
The Kenyan economy exhibits limited levels on innovation requiredto foster increased output and productivity improvements necessary for employment and wealth creation.In thisregard,a biannual National Innovation Survey will be conducted to determine the incidence of innovation in the nationalpriority areas as well as determining the impediments to increased innovation in those sectors.Additionally,to intensifyinnovation,the funding for basic and applied research at higher institutions of learning,as well as for research anddevelopment conducted in collaboration with industries will be increased to Kshs.37 billion by 2012.In order to promote greater efficiency in various national priority sectors,promote international competitiveness andassure consumer acceptance,a programme to promote standardisation and quality assurance in the various sectorswill be implemented.This will strengthen existing systems and bring them up to par with international best practice.Indigenous knowledge and technology,which is part of Kenya's national heritage,remains unmapped.Moreover,it has @@@
exposed the country's national heritage to misuse by external interest groups.Measures will therefore be taken toidentify and protect this heritage.In order to encourage innovation and other scientific endeavours,a system ofnational recognition will be established to honour innovators.
Enhancing Science,Technology and Innovation Awareness:
A strong foundation and basic understanding of STI,and its universal importance is needed to make certain breakthroughs or commercialise applications that will ensurethe prosperity of the country.There is need to create appreciation and awareness on the importance of science,technology and innovation in Kenya and its implication in everyday life,among policymakers and the general public.Currently,the awareness of ethical,moral,legal,social and economic aspects is low.In view of the importance of STIin society,efforts must be made to promote awareness of new ideas and discoveries to the general public. A key goal of activities under this thrust will be to impart a culture of creativity,innovativeness and continuous learningin Kenya,which is supportive of STI uptake and utilisation.Under this plan,measures to create and deepen STIawareness amongst policy makers and implementers,particularly in the social sphere will be put in place.In addition,multi-sectoral initiatives to develop STI solutions that can address current and future development problems will bepublicised and showcased.This will include professional associations and community science networks; non-profitOrganisations and large businesses; Early Childhood Development (ECD),primary and secondary schools,universitiesand technical institutes.It is anticipated that such a programme will create and nurture a passion for learning,creativity,technology and innovation.
Strengthening the STI Performance Management Framework:
There is general ineffectiveness in the coordinationof the national STI system,leading to inefficient resource utilisation.Furthermore,there is a lack of adequateinformation to facilitate regional and international benchmarking and track the implementation of STI activities.Consequently,under this plan,an understanding of the utilisation of resources in the STI sector and its capacity tocontribute to national development will be critical.A framework to collect and disseminate information on the resourcesemployed by the sector and their effectiveness will be put in place.It will focus on timely tracking of theimplementation of various programmes/initiatives under this plan which will aim at realising its overall objectives.Thecoordination of STI activities will also seek to leverage the activities of international Organisations working in thecountry for the furtherance of national STI objectives.
Resource Mobilisation:
Implementation of the STI components of the MTP 2008-2012 will require significantresources.Even after aligning the funding requirements for implementing the identified strategic thrusts with the MTEFbudget,significant gaps still remain.Hence,funding for the implementation of the STI interventions in support of theMTP 2008-2012 will be drawn from the following sources:•
Government Funding:
With regard to government funding,the sector will prepare its annual Public ExpenditureReview (PER) reports to form the basis for resource bidding under the overall MTEF budgetary process.In thisregard,all the sector members will be involved in the budget process to ensure that the annual ministerial PERsand sector reports accommodate their respective needs.•
The Kenyan National STI Fund:
The objective of this fund is to secure adequate local and international fundingin support of the national Science,Technology and Innovation sector Medium-Term Plan.The fund will beformulated as a general national fund with a framework that allows for the creation of various specific funds tomeet specific funding needs in the STI sectors.This includes infrastructure development,applied research,innovation support among others.•
Venture Capital:
The private sector will be targeted to provide capital to bridge the gaps in Science andTechnology as well as financing innovation programmes.The macroeconomic environment for attraction andgrowth of venture capital will also be created.In addition,the financial services sector will be strengthened and
focused to support the growth of venture capital.The programme will also focus on public – private STI fundingas well as general financing of STI initiatives.•
Tax Concessions and STI Levy:
Fiscal policies to promote resource mobilisation have been proposed in the MTP2008-2012.Tax concessions on targeted sectors will be introduced to motivate the private sector to contributeto the funding of the MTP 2008-2012 at the firm level and/or the national fund level.Additionally,a national STIlevy will be targeted to support the financing of the implementation of the MTP 2008-2012.This will be a PrivatePublic Sectors Partnership arrangement,where the government and private sector contribute to the levy.This willbe implemented under an agreed framework of partnership.•
Development Partners:
Development partners are currently supporting the government in some of the initiativesoutlined in this Plan.The sector therefore plans to engage their support to fill in the resource gap between theMTEF budget and Medium-Term Plan budget.The relationship between the sector and the development partnerswill be strengthened by developing strategic alliances based on the needs and policy direction of the
Vision 2030
.Subsequently,the development partners will form a Joint Financing framework that will fund the implementationof the projects and programmes.
3.3.4Policy,Legal and Institutional Reforms
Kenya's STI interventions for 2008-2012 will be implemented through a coordinated effort within the context of
Vision 2030
medium-term objectives.It will also be based on targeted programmes of sectoral areas.The capacities of thenational R&D and innovation system will aim at responding to the needs of activating innovation.In addition,they willenhance the competitiveness of national industries in the regional and global market,in undertaking policy,legal andinstitutional reforms.A deliberate effort will also be made to rationalise the participation of the government,the privatesector and civil society organisations.The government,through the Ministry responsible for Science,Technology and Innovation will provide the necessarypolicy and political leadership to facilitate the realisation of the goals and objectives underscored in the STI Sectionof the MTP 2008-2012.This will include the following:•Ensure consistency in implementation of the STI programmes,projects and plans;•Create a favourable business environment required for the performance of the STI initiatives;•Provide a framework for mobilising resources,including funding support from domestic and foreign sources withinthe framework of the national policy for coordinating support for STI from Kenya's development partners;•Ensure coordination of the activities of ministries in order to implement the STI programmes and create unifiedmanagement and organisation arrangements at national and local levels;•Ensure the participation of domestic and international actors in the execution of the STI activities.Further,the Ministry responsible for Science,Technology and Innovation will be the coordinating body in implementingtargeted STI programmes.In the strategic framework of implementing the
Medium-Term Plan
,it will assume thefollowing functions:•Provide standardised methodological administration of STI initiatives of the MTP 2008-2012 implementation,andanalyse the implementation;•Submit to the government consolidated reports of the STI implementation progress and evaluation/monitoringevery two years;•Monitor and evaluate activities of the parties implementing the STI tasks and actions,reflected in the MTP 2008-2012;
Develop in consultation with the AG's office,laws needed for implementation of the STI initiatives MTP2008-2012;•Inform the public,through the media,about the MTP 2008-2012 STI implementation progress,spending,results,and achievements.Implementing sectors will thereafter organise activities related to development,implementation of policies on the STIreforms required for each specific sector.Specific related tasks and activities are firstly,enhancing the STI andinnovation capacity of the relevant sector,secondly,implementing STI programmes and projects within each specificsector,and thirdly evaluating,assessing and reviewing the performance of each of the programmes.
3.4Land Reforms
Land is an important factor of production.This is because it provides the foundation for all other activities such asagriculture,water,settlement,tourism,wildlife and forestry.Accessibility to land remains a key aspect of the MTP2008-2012.Apart from its economic importance,land in Kenya has cultural value.This factor makes it one of the mostsought-after resources and therefore makes it one of the major sources of conflict.To deliver on programmes andprojects outlined in various sectors of the MTP 2008-2012 and give incentives to investors,land reforms will addressissues concerning land ownership and administration,security of tenure,land use and development,andenvironmental conservation.
3.4.1Situation Analysis
Kenya has a total surface area of 59,195,800 hectares.Water bodies form a surface area of 1,123,000 hectares,while land makes up approximately 58,072,800 hectares.The total agricultural land stands at 56,914,000hectares.However,the proportion that is classified as high and medium potential land suitable for arableagriculture forms a meagre 17.5 per cent.The rest (82.5 per cent) is suitable for extensive livestock production,wildlife and irrigated farming.Rapid population growth (from 5.4 million in 1948 to an estimated 36 million in2007) means that in the last 60 years,the per capita land availability has decreased from 11 hectares to a mere1.7 hectares.This is bound to decrease further to less than 1 hectare by 2030,when the Kenyan population isprojected to be about 60 million.Land scarcity and population pressure is responsible for the conversion of marginal lands (such as floodplains andslopes) into farm land by the poor.This situation further increases their vulnerability and aggravates environmentaldamage.Consequently,the concerned agrarian groups are made economically worse off,barely able to meet theirsubsistence needs.Measures to ensure that there is sustainable land use and alternative off-farm economicenterprises for households will be implemented.Huge disparities exist with regard to ownership of land in the country,particularly in high potential regions where a fewindividuals own large tracts of land (most of which is idle),while a large number are squatters without any land of theirown.In addition,glaring disparities exist with regard to gender,with few women claiming land ownership.Land is oftena major source of conflict in the country,as witnessed in 1992,1997 and most recently after the December 2007general elections.The underlying causes of these disputes included (but were not limited to):•Historical land allocation disputes;•Long-term land problems eventually leading to the squatter problem; and•Economic disparities among different communities.
To address the above causes,the government will develop and implement policies on security of land tenure,land useand development,and sustainable environmental conservation.A draft National Land Use policy was initiated in 2004,with a view to addressing a number of land-based challenges such as the proliferation of informal settlements,inadequate infrastructural services,environmental degradation,unplanned urban centres,and land conflicts.Finalisation of this policy and enactment of attendant legislations will be given priority within this sector.
3.4.2Emerging Issues and Challenges
There are a number of challenges facing the optimal and sustainable land use and ownership in the country.Theyinclude the following:
Insecure land ownership:
Land adjudication and registration in the country covers only one-third (8 million hectares)of the country.This hinders people from asserting their rights over land.To emphasise this point,to date,only 4.06million title deeds have been registered countrywide.This is partly due to a slow adjudication process,inadequateresources for survey and mapping,conflicting land laws,a backlog of land disputes,(some over 20 years old) and lack of civic education and awareness.All these challenges will be addressed in the MTP 2008-2012.
Unsustainable land use:
In rural areas,land use practices are largely incongruent with the specific ecological zones.Uneconomic land sub-divisions,coupled with poor land use practices are responsible for accelerated land degradationand declining land productivity.In urban areas,proliferation of informal settlements,urban sprawl and encroachmentinto protected land remain key challenges.Meanwhile,the escalation of desertification as a result of land degradationand climate change pose risks to the lives of people living in ASAL communities.
Land administration:
Land is currently governed by many laws,most of which are in conflict.This presents greatdifficulties in land administration and management.However,this challenge will be overcome by the National LandPolicy which provides a framework for access to,planning and administration of land in the country.The policy willalso provide a framework to remedy gross disparities,particularly with regard to gender,in land ownership.Harmonisation of land laws into one statute will also reduce the multiple allocations of title deeds.
Land information system:
The current manual system of lands record management is not tenable for expeditious landtransactions.
3.4.3Programmes and Projects for 2008 - 2012
The flagship projects to be implemented include:
Land registry:
Land adjudication has not been completed in most areas of the country.Where it has been successfullycompleted,sub-divisions and new registrations make it a never-ending process.Consequently,the establishment of aGIS-based land registry at the Ministry of Lands will significantly streamline this process and help eliminate the existingbureaucratic practices.
The Land Information Management System:
This intervention will focus in establishing a transparent,decentralised,affordable and efficient GIS based Land Information Management System.This will contribute topoverty reduction,good governance and improved security of tenure.In addition,the system will enhance efficiencyand effectiveness in the delivery of services for all Kenyans,especially the poor.Further,the system will enable thecapture,management and analysis of geographically referenced land-related data in order to produce landinformation for decision-making in land administration and management.Investments will therefore be directed at revamping the recording system,revising the land maps and computerisation of the land registries to reduce theamount of time taken in service delivery.
National Land Use Master Plan:
This project entails the development of national,regional and local area land useplans through an integrated and participatory process.
Land ownership documents replacement programme:
The government will fully support the replacement of landownership documents for those affected by the 2007 Post-Election crisis.Where appropriate,the government willwaive the gazetted land ownership documents fees but only after conducting thorough verification in line with the lawsgoverning land in the country.
3.4.4Policy,Legal and Institutional Reforms
The policy,legal and institutional reforms will focus on four critical areas namely:
National Land Policy Finalisation and implementation:
A draft National Land Policy has been finalised.The Policygives the roadmap to land institutional and legal reforms.This will ensure effective,efficient and equitable delivery ofservices; devolution of land administration and management; facilitate access to land administration and managementby the poor; and ensure participation and accountability.
Institutional Transformation:
A Land Reform Transformation Unit has already been established in the Ministry of Lands(Mol).This unit will facilitate the implementation of the Land Reform programme as outlined in the National Land Policy.
Local Level Mechanisms for Sustainable Land Rights Administration and Management:
This will involveimproving land administration and management issues,developing eviction guidelines and building capacities for LandControl Boards (LCBs) and Land Disputes Tribunals (LDTs).The capacity of the local land administration establishmentswill be strengthened to deliver efficient and timely services.
3.5Public Sector Reforms
"A Citizen-Focused and Results-Oriented Institution"
Public Service reforms will continue to be entrenched across the entire government.The reforms will be guided by theprinciples of Results Based Management,inculcation of values and ethics,strengthening institutions and developmentof key competencies.Reform Programmes outlined in the
MTP
are anchored on the human rights based approach todevelopment,which defines rights holders and duty bearers in a citizen-government relationship.Transparency,accountability,participation and the rule of law will constitute an integral part of the reform agenda.
3.5.1Situation Analysis
Public Service reforms were initiated soon after independence,with the objective of enhancing efficiency andproductivity within the Public Service.Further,the reforms were intended to achieve equity in wealth distribution andcreate a competitive environment for investment and private sector growth.In 1993,the Civil Service Reform programme was launched and implemented in three phases:Phase 1 covered theperiod 1993-1998 and focused on cost containment.During this phase,the Voluntary Early Retirement Scheme wascarried out.86,516 civil servants passed through the scheme,while others were dropped through natural attrition. In addition,4,000 ghost workers were cleared from the payroll.Phase 2 covered the period 1998-2002 and resulted inthe rationalisation of ministries,with a further reduction of 23,448 civil servants in over- staffed cadres.In addition,ministries divested from non-core activities through privatisation and abolition while non strategic operations wereprivatised under the State Corporations Privatisation Programme.Phase 3 of the Public Service Reforms programme was introduced and implemented during the
Economic Recovery Strategy
(ERS) period.Measures undertaken during this period entailed consolidating and sustaining the gains madeduring the previous phases.They further aimed at accelerating the achievement of the ERS,MDGs and other nationaltargets.This resulted in a strengthening of the institutional framework whereby a number of strategic institutions wereestablished.This included the Public Financial Management Secretariat (PFM); Public Procurement Oversight Authority(PPOA); Privatisation Commission; among others.Other initiatives include establishment of the National IntegratedMonitoring and Evaluation System (NIMES); Performance Contracting; Integrated Financial Management InformationSystem (IFMIS),and the Local Authority Integrated Financial Operations Management Systems (LAIFOMS).
3.5.2Emerging Issues and Challenges
Despite the gains made in the public service,there are a number of challenges which must be overcome in order tohave an efficient pubic service.
Cultural and attitudinal aspects:
The public services delivery system is characterised by inefficiencies associated withcultural and attitudinal aspects.This is partly responsible for the discomfort among service deliverers who are often fearfulof the consequences of reforms.This call for stakeholder involvement,including the citizens in determining policies,priorities and service delivery system so as to inculcate a culture of values and ethics throughout the public service.
Service delivery orientation:
Currently,public service delivery is largely process- driven rather than results- based.This means that the quality of services offered to citizens is not commensurate with the government's spending onservice delivery across the sectors.Furthermore,the situation is compounded by a weak enforcement of the PublicOfficer Ethics Act and lack of a critical mass of transformative leaders to drive and sustain necessary reforms.
Capability and capacity:
The existing capability and capacity is insufficient to deliver the kind of services necessaryfor national transformation as envisaged under
Vision 2030
.Moreover,the available competence is neither efficientlynor effectively utilised and may be lacking altogether.Inefficiency in the public service is mainly attributed to the lack of a modern human resource management system that champions competency-based and value-driven humanresource management principles and practices.Consequently,there is slow adoption of modern technology and lowservice delivery standards which are rarely benchmarked against best practise.
Performance management:
The rewarding system currently in place does not promote efficiency in the managementof the public service.The government will therefore deepen the performance management framework to ensure thatboth rewards and sanctions are used as measures to boost service delivery.
3.5.3Programmes and Projects 2008-2012
The following projects have been earmarked for implementation in the Medium-Term Plan:
Kenya School of Government:
The Kenya School of Government will be established with the objective of inculcatingpublic service values and ethics as well as enhancing transformative leadership.The school will also be used topromote core competencies for personnel within the public service sector.
addition,4,000 ghost workers were cleared from the payroll.Phase 2 covered the period 1998-2002 and resulted inthe rationalisation of ministries,with a further reduction of 23,448 civil servants in over- staffed cadres.In addition,ministries divested from non-core activities through privatisation and abolition while non strategic operations wereprivatised under the State Corporations Privatisation Programme.Phase 3 of the Public Service Reforms programme was introduced and implemented during the
Economic Recovery Strategy
(ERS) period.Measures undertaken during this period entailed consolidating and sustaining the gains madeduring the previous phases.They further aimed at accelerating the achievement of the ERS,MDGs and other nationaltargets.This resulted in a strengthening of the institutional framework whereby a number of strategic institutions wereestablished.This included the Public Financial Management Secretariat (PFM); Public Procurement Oversight Authority(PPOA); Privatisation Commission; among others.Other initiatives include establishment of the National IntegratedMonitoring and Evaluation System (NIMES); Performance Contracting; Integrated Financial Management InformationSystem (IFMIS),and the Local Authority Integrated Financial Operations Management Systems (LAIFOMS).
3.5.2Emerging Issues and Challenges
Despite the gains made in the public service,there are a number of challenges which must be overcome in order tohave an efficient pubic service.
Cultural and attitudinal aspects:
The public services delivery system is characterised by inefficiencies associated withcultural and attitudinal aspects.This is partly responsible for the discomfort among service deliverers who are often fearfulof the consequences of reforms.This call for stakeholder involvement,including the citizens in determining policies,priorities and service delivery system so as to inculcate a culture of values and ethics throughout the public service.
Service delivery orientation:
Currently,public service delivery is largely process- driven rather than results- based.This means that the quality of services offered to citizens is not commensurate with the government's spending onservice delivery across the sectors.Furthermore,the situation is compounded by a weak enforcement of the PublicOfficer Ethics Act and lack of a critical mass of transformative leaders to drive and sustain necessary reforms.
Capability and capacity:
The existing capability and capacity is insufficient to deliver the kind of services necessaryfor national transformation as envisaged under
Vision 2030
.Moreover,the available competence is neither efficientlynor effectively utilised and may be lacking altogether.Inefficiency in the public service is mainly attributed to the lack of a modern human resource management system that champions competency-based and value-driven humanresource management principles and practices.Consequently,there is slow adoption of modern technology and lowservice delivery standards which are rarely benchmarked against best practise.
Performance management:
The rewarding system currently in place does not promote efficiency in the managementof the public service.The government will therefore deepen the performance management framework to ensure thatboth rewards and sanctions are used as measures to boost service delivery.
3.5.3Programmes and Projects 2008-2012
The following projects have been earmarked for implementation in the Medium-Term Plan:
Kenya School of Government:
The Kenya School of Government will be established with the objective of inculcatingpublic service values and ethics as well as enhancing transformative leadership.The school will also be used topromote core competencies for personnel within the public service sector.
Results Based Management:
This programme entails deepening results-based management strategies in order tomeet citizen expectations.It will therefore target all government ministries/departments and regional developmentauthorities.To attain a citizen-focused public service,the government will develop and implement a results-basedperformance for monitoring systems,common public service delivery measurement standards and service deliveryaction plans.
3.5.4Policy,Legal and Institutional Reforms
The government will give priority to the following reforms in transforming the public sector:
Sectoral reform Strategies:
Reforms to be undertaken include:Citizen-Centred Policy Review,Citizen Participationand decentralisation of service delivery.
Public Finance Management Reform (PFM):
The PFM were initiated in 2005,with the objective of strengtheningfinancial management and enhancing resource utilisation across the government.These reforms will be finalized andmade more comprehensive during the Plan period.
Structural Review of sectors:
This review will seek to clarify and harmonise roles of actors in policy,planning,monitoring and evaluation.
Organisational Review:
This will aim at separating policy formulation,regulatory functions,legal and service deliveryacross the public sector.
3.6 Human Resource Development,Labour and Employment
"Every Kenyan with decent and gainful employment"
Kenya aims to create a globally competitive and adaptive human resource base to meet the requirements of
Vision 2030
.Kenya's main potential lies in its people – their creativity,work ethic,education their entrepreneurial and otherskills.To ensure significant and consistent results,the human resources will be managed,rewarded and steered todevelop global competitiveness.To be successful in developing competitiveness,the capacity to utilise knowledge andinformation in design,production and marketing of traditional exports will be enhanced.This will result in qualityhuman resources in health care,education,and training on improving work performance.Kenya's global competitiveness will depend on the ability to create a human resource base that will be constantlysubjected to re-training and access to technological learning within employment.These specific human resources playa major role in contributing not only to efficiency gains in existing economic activities,but also in diversifying economicsectors and activities in order to realise productivity gains.
3.6.1Situation Analysis
The current primary working- age population (15-64 years) in Kenya is about 19.2 million which is 54.2 per cent ofthe total population.Out of the 19.2 million persons,14.6 million are labour market participants of which 11.9 millionare employed while 1.7 million are openly unemployed.It is estimated that by 2012 the working-age population willincrease to about 23 million persons.It is critical to note that 1.3 million (72 per cent) of the unemployed are youngpeople below the age of 30 years while 51 per cent of the unemployed are below 24 years of age.The unemploymentrate among the youth age 15-24 is at 24.5 per cent with that of the females being higher at 27.4 per cent compared
to 21.6 per cent for the males.Urban areas account for higher rates (38.5 per cent) compared to the rural areas 18.9per cent.Over the period 2003-2006,the share of modern sector employment to total employment shrunk from the 2002baseline figure of 24.7 per cent to 21.3 per cent in 2006.The private sector accounted for over 60 per cent of wageemployment in the formal sector,with the public sector wage employment having declined from 38.8 per cent in 2002to 35 per cent in 2006.The service sector is the main source of employment in the formal sector accounting for about55 per cent of the wage employment.In the informal sector,wholesale and retail trade,hotels and restaurantsaccounted for 58.6 per cent of informal sector employment in 2006 followed by the manufacturing sector at 22 percent in the same year.The MSE sector,including the
Jua Kali
sector played a vital role providing employmentopportunities to 74.2 per cent of the total employed population and contributing about 18 per cent to the country's GDP.There is notable gender disparity in employment.The level of participation of women in modern sector employment isless than a third.For instance between 2002 and 2006,the proportion of women employed in the formal sectorincreased marginally from 29.6 per cent to 30.3 per cent.This depicts a less than one percentage point increase overthe five-year period,implying that even though dismal gains were made in creation of wage employment in the formalsector of the economy,the opportunities were not equally accessed by both genders as envisaged under the decentwork framework.Women are predominantly engaged in domestic unpaid work,subsistence agriculture and informalsector activities.Within the formal sector,women are engaged in low skill manufacturing,service and horticultureactivities which are mainly of low value addition,attracting low wages and relatively poor terms and conditions ofemployment,and hence perpetuate poverty among women.Generally,creation of productive and sustainable employment opportunities has presented one of the formidablechallenges to the government during the ERS period.Employment creation fell short of the ERS target of 500,000 by34,100 jobs.The jobs created in 2004 were some 16,600 jobs below the target while in 2005,the government realised41,100 less of the jobs that were expected to be created in that year.In 2006,469,000 jobs were created,which wassome 31,000 jobs below the country's target.Kenya's business environment is characterised by a large number of Micro and Small Enterprises (MSEs),whichaccount for roughly 75 per cent of total employment and an estimated 18 per cent of GDP.Despite the critical roleplayed by informal sector and particularly Micro and Small Enterprises (MSEs) in promoting employment creation,thesector continues to face traditional challenges which include low productivity and limited technological transfer.Someof the measures to address MSE issues include Sessional Paper No.2 of 2005 on Development of Micro and SmallEnterprises for Wealth and Employment Creation for Poverty Reduction which provides the policy framework to guidegrowth and development within the sector,and the recently enacted Occupational Safety and Health Act 2007,whichprovides for safety and health standards for all work places,including in the informal sector.Other Interventions are asindicated in table 3.6 below.
Table 3.6: Interventions in the informal sector (Jua Kali Sector) over the ERS period To reform the labour market management in Kenya to international best practices,the government enacted five LabourLaws in 2007.These are; The Labour Institutions Act,2007; The Labour Relations Act,2007; The Employment Act,2007; The Occupational Safety and Health Act,2007; and The Work Injury Benefits Act,2007.The modalities tooperationalise and implement the laws are being worked on under the tripartite arrangement that involves government,employers and workers. A safe and healthy workplace minimises the risk of employers and workers in encountering occupational accidentsand diseases.Such a scenario is critical for enhancing enterprise and national level productivity as it impacts positivelyon the longevity of life,earnings,quality of life,and country's socio-economic development and minimises cases ofworkmen compensation claims.Enactment of the Occupational Safety and Health Act,2007 is a key achievement inthis direction and its implementation in the plan period will have great impact.In realisation that productivity is an important determinant of competitiveness as it enhances the capacity of firms tobecome viable,profitable and create sustainable jobs,the government has,in collaboration with the social partners -FKE and COTU- established a productivity centre which champions the productivity movement in the country.Since itsestablishment in 2002,the centre has undertaken productivity awareness campaigns and improvement programmes.The activities are being undertaken in collaboration with the Japan Productivity Centre for Socio-economicDevelopment (JPC-SED) through the Pan African Productivity Association (PAPA).
3.6.2Emerging Issues and Challenges
Kenya's ability to compete in the global arena is hampered by several factors.These include:
High Population and Youth Unemployment:
The high population growth rate that is not matched with the creation ofviable economic opportunities pauses a great challenge.Kenya has a youthful population.The high unemploymentamongst the youth constitutes a formidable risk factor for both the youth and prosperity of the economy,and requiresappropriate intervention.About 90 per cent of the unemployed youth do not have appropriate vocational or professionaltraining and therefore have limited chances of fully participating in the labour market.One of the forms ofunemployment that has persistently been manifested in Kenya is voluntary unemployment.This form of unemploymenthas mainly been reported amongst the youth who,in most cases,are selective about the type of jobs.This type of youthunemployment is contributed by the negative attitudes of the job seekers towards some jobs,especially manual labour.Current government employment creation strategies have tended to favour,among others,labour-intensive publicworks programmes.These strategies cannot be effective if the negative attitudes of young job seekers towards some jobs are not addressed.
High Rural-Urban Migration:
There is high level of rural-urban migration especially among the youth due to low levelsof development in the rural areas which makes them less attractive to investors.In addition the rural-urban migrationcreates high pressure on available job opportunities and social amenities.
Child Labour:
Lack of updated and comprehensive information on the size and structure of child labour and all itsmanifestations has led to inconsistent intervention measures.In addition the persistent incidences of poverty,increaseorphanhood especially due to HIV/AIDS,high levels of unemployment and limited income generating opportunities havetended to aggravate the problem
Human Trafficking:
Kenya suffers from both domestic and international Trafficking in Persons (TIP).Studies haveshown that Kenya is a source,transit and destination country for victims of TIP.Given the considerable effects of TIPon human resource development,utilisation and the general labour market,it is critical that non-legislative steps thathave already been initiated and be up scaled to achieve greater gains. The Informal Sector:
While the informal sector continues to play a critical role in employment creation,the sector isfaced by challenges which include low productivity,limited technological transfer,poor occupational health and safetymeasures,inadequate access to markets and marketing channels,and information asymmetry.
Labour Market Skills and Information:
Kenya faces a number of challenges in aligning the planning and developmentof its human resources to her developmental needs.The lack of reliable,adequate and timely data on almost all facets ofthe labour market has constrained policy formulation necessary for promoting employment and human resourcedevelopment.There also seems to be un-coordinated collection of socio-economic data by different public and privatesector institutions.A number of gaps also exist in the data in terms of comprehensiveness,interval of collection,coverageand the general form in which the data may be available,its accuracy and the extent of accessibility.Poor linkagesbetween the labour market and training/research institutions has led to skills mismatch and underdevelopment.Thecountry's labour market is still characterised by co-existence of trained unemployed manpower alongside skill shortagesin some areas within the market.This needs to be addressed for enhanced competitiveness within the economy.
Workplace Safety and Health:
One of the greatest challenges that undermined the fortification of workplace healthand safety services in the country is the lack of comprehensive policy on occupational health and safety.This has partlycontributed to the weak safety culture amongst workers and employers,and non-compliance with international healthand safety standards.
Industrial Relations:
Industrial harmony is critical for enhanced productivity and firm competitiveness.Data oncollective bargaining shows that the number of Collective Bargaining Agreements (CBAs) negotiated and registered bythe trade unions increased from 304 in 2002 to 344 agreements in 2006.Most of these agreements contain thetraditional clauses such as wages,working hours,leave,housing,retirement and medical schemes.Only 32.7 per centof the CBAs in 2005 and 24.7 per cent in 2006 contained contemporary issues such as productivity,gender,HIV and AIDS,sexual harassment and specific occupational health and safety clauses.In the recent past,issues such asintroduction of technology,outsourcing,job evaluation,and provision of childcare facilities and other forms ofemployment such as casual,temporary and contract works have become more crucial than ever before.Delay insettlement of industrial disputes affects industrial relations.Specifically,investigation,conciliation and industrial courtarbitration points have been identified by labour market players to be some of the key areas of delay in the disputeresolution chain.A number of issues are alluded to for such delay which include absence of a legally set time limitwithin which dispute conciliation/investigation has to be finalised; inadequate human and financial resource capacitywithin the MLHRD; and limited goodwill in negotiations by parties to a dispute.Even though the new Labour laws haveincorporated time limits,within which a dispute has to take in critical stages of its resolution,their operationalisationand effective enforcement laws remains a challenge.
Social Protection:
Maintenance of a comprehensive social protection programme is regarded as one of the sufficientrequirements for improved productivity and industrial competitiveness.The existing schemes of which NSSF is the keyplayer are not fully developed and modernised.There is need to offer affordable and comprehensive coverage ofpersons in the informal sector.Also expanding the service offering to include development loans for employees andcontributors is a key challenge.
Productivity Promotion:
Inappropriate legal and institutional capacity for the Productivity Centre of Kenya (PCK) tofacilitate its effective operation remains a challenge.It is established as a private company under the Companies Act(Cap.486) which makes it difficult for the government to fully finance its operations.
Vulnerable and Persons with Special Needs:
The plight of people with special needs has not been adequatelyaddressed in the past.People with special needs constitute a considerable proportion of the openly unemployed,disguised employees and the working poor.Such a scenario,if not addressed,cannot guarantee adequate socio-economic development and social cohesion within the country.Full integration of this group into the world of work cansustainably reduce the numbers of the poor and the unemployed in the country.
Gender and Employment:
Gender disparities in the formal employment and particularly in the decision making levelscontinue to be a challenge.This requires to be addressed among others,through the implementation of the AffirmativeDirective requiring a minimum 30 % to women in the public sector.In addition,deliberate efforts need to be taken topromote women employment in all sectors of the country's economy.
Mitigating HIV/AIDS in workplaces:
HIV/AIDS is one of the contributors of low productivity and high labour costs inKenya.It is reported that the national adult HIV/AIDS prevalence reduced from 10 per cent in 2004/2005 to 5.1 percent in 2005/2006.The youth are the most affected.Prevalence continues to be high amongst the active labour forcewith adverse impact on the operations of many companies in Kenya,their employees,and households.It threatens todrag the country's competitiveness.The trade unions,employers' organisations and the MLHRD have crucial role inensuring that employees have domesticated/implemented the HIV/AIDS workplace policy.Areas that need addressinginclude discrimination against persons living with HIV/AIDS,establishing of Voluntary Counselling and Testing of HIV atworkplace,proper referrals for employees testing HIV positive,and workload and sick leave for sick workers.The Post 2007 Elections crisis,caused turbulence in the labour market.Some workers lost their lives and/or their closerelatives,others sustained injuries of varying degrees while a similarly large number of workers and their families weredisplaced and lost means of livelihood.In addition,property of considerable value has been destroyed.This hasimpacted negatively on productivity and competitiveness nationally and globally.
3.6.3Programmes and Projects for 2008 - 2012
For the period 2008-2012,specific human resource development interventions will be undertaken in the followingareas;
Human Resource Development:
Kenya's global competitiveness will depend on the country's ability to identify,develop and utilise its human resource base.A National Human Resources Database will be established through aNational Manpower Survey,a Micro and Small Enterprise (MSE) Survey,an Informal Sector Survey,and a skillsinventory.To address the issue of brain drain,the government is committed to implementing measures that would ensureexpansion of the absorptive capacity of the domestic labour market and retention of a critical mass of skilled personnelwithin the economy.At the same time,mechanisms to offload excess labour to needy and friendly foreign markets willbe developed.These efforts will be preceded by taking stock of available skills in the country and the subsequentidentification of skills for export.To promote creativity,innovation and development of special talents,a framework will be put in place to facilitateidentification,recognition,nurturing,and rewarding of both academic and non academic talents.In the public service,training and capacity building will focus on training for performance improvement as opposed to training for promotion.In the informal sector,tailor-made skills will be imparted to the entrepreneurs,their staff and trainees.In addition,centres of excellence for MSEs will be established in each province to promote technological transfer,capacity building,product design and development and marketing of MSE products.The said trainings will be facilitated in collaborationwith the private sector.To consolidate the gains already realised on industrial and vocational training,YouthPolytechnics and National Youth Service will be transformed into Centres of Excellence so as to produce high qualitygraduates.
In bridging the gaps between high cadre and middle-level technical skills,mechanisms of tapping the skills of retiredtechnical and professional Kenyans through specific mentorship programmes will be developed.Existing institutionswill be expanded,improved and equipped with e-learning facilities for public servants.In addition the government willretrain and redirect human resources in excess supply to areas experiencing shortages in order to meet therequirements of enterprises.For efficient skills utilisation,the gap between the skills possessed by the job seekers and those required by industrywill be addressed.Linkages between the industry,technical training institutions and research institutions will bestrengthened.This will promote training that is demand-driven,and ensure that technical and research institutions areresponsive to the requirements of industry,particularly in the priority sectors.Consequently,the curricula and syllabiin the education and training institutions will be reviewed.An appropriate feedback mechanism and policy framework to promote industrial attachment and apprenticeship system will be established.Strategic management and co-ordination of human resource aspects of skills development and utilisation will be ensured.Measures will be put inplace to identify,attract and retain talent,particularly in the key sectors of the country's economy.Towards this end anIntegrated Human Resource Development Strategy (IHRDS) will be developed.The strategy will provide the guidingframework for review of the curriculum for various programmes at all levels of skill development and career guidanceand counselling.On creating employment for the youth,Youth Empowerment Centres will be established in all the constituencies.Thecentres will promote information sharing,provide online career services and facilitate ICT development.Thegovernment will facilitate regulation and operations of the Foreign Private Employment Agencies (FPEA) to enhanceethical standards in foreign employment matters,and facilitate collection of information on the Kenyans working andliving abroad.
Occupational Safety and Health:
Employers have an inherent duty to provide safe work places for their employees. A safe place of work would lead to reduced occurrence of work-related accidents and diseases,and insurance claimsresulting to higher productivity and lower production costs.The government has committed to enforcing theOccupational Safety and Health Act No.15 of 2007.The government will also endeavour to collect,analyse anddisseminate necessary information to workers and employers.Towards this end,collaborative interventions will bepursued.To develop and manage occupational health and safety,and work injuries benefits an Occupational Safety andHealth Insurance Benefits Authority (OSHIBA) will be established.The Authority will be responsible for theadministration of Occupational Safety and Health Act (OSHA) and Work Injury Benefits Act (WIBA).
Promotion of fundamental principals of Rights at the Workplace
Enterprise competitiveness and industrial democracy are hinged on the extent which players in the labour market candialogue.One of the key reform areas that the government will continue to focus on,especially in the medium term ismechanisms to expedite settlement and arbitration of industrial disputes and to address the decent work deficit in thecountry.In an effort to create a conducive environment for employment creation for majority of unemployed Kenyans,the government will ratify and domesticate ILO Convention No.122 on employment policy.The ratification of thisconvention will complement the government's resolve to pursue as a major goal,an active policy designed to promotefull,productive and freely chosen employment.
Productivity Management:
A significant step in growth and economic prosperity is nurturing,mainstreaming andpromoting productivity culture in all the sectors of the economy.To address the constraints of productivity,the legalstatus of the Productivity Centre of Kenya (PCK) will be reviewed to make it a national public institution that isindependent.It will be run under the PPP framework.An integrated productivity management system will be developedand implemented to facilitate productivity development.
Promotion of Entrepreneurship Culture:
The performance and competitiveness of the MSEs and the
jua kali
sectorwill be increased for it to effectively respond to the challenges of creating productive and sustainable employmentopportunities,promoting economic growth and poverty reduction in the country.A large number of Kenya's current andpotential entrepreneurs need human resource development to meet their operational and developmental needs.Thiswill be realised through specialised training that will be designed and offered to the entrepreneurs and theirmembership organisations at different levels.Entrepreneurial development programmes will be introduced in schoolsand other training institutions to facilitate development of a wide spread enterprise culture.Appropriate mechanismswill also be put in place to increase participation of youth and vulnerable groups in MSE and
jua kali
activities.Inaddressing the financial constraints facing youth and women entrepreneurs particularly start-up capital,thegovernment will scale up the already established Youth and Women Enterprise Funds.Commercial banks and MicroFinance Institutions (MFIs) will be encouraged to enhance lending to MSEs and the
jua kali
operators at fair interestrates.To give MSE and the
Jua Kali
Sector the required impetus,the implementation of Sessional Paper No.2 of 2005on Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction will be fast-tracked.In addition the government will formulate and enact the MSE Act and establish a National Council for SmallEnterprise (NCSE)
Social Protection:
Social protection is crucial for workers as it covers family benefits and health care and providesincome security in the event of such contingencies as sickness,unemployment,old age,disability,accidents,maternity,loss of the breadwinner and social assistance programmes.To address the challenge of low coverage of the socialsecurity systems,the NSSF Act has been reviewed to provide for conversion of NSSF from a provident fund to a pensionscheme.This will facilitate expanded coverage and provide for the requirements of the people in the informal and othersectors.The Fund is in the process of exploring various ways of enhancing contributions base by encouraging voluntarycontributions and setting a minimum contributory level.The Fund also will continue to play a significant role in nationaldevelopment by providing affordable housing projects for workers.
3.6.4Policy,Legal and Institutional Reforms
The following specific reforms will be undertaken:
Policy Reforms
•Develop an Integrated Human Resource Strategy;•Enact the Employment Policy;•Develop the Diaspora and Labour export policy;•Formulate and implement the Wages and Incomes Policy,Review of the 16 wage regulation orders;•Enact the Child labour Policy;•Develop a National Occupational Safety and Health policy;•Develop a Productivity Policy;•Formulate and implement a multi-sectoral National Social Security Policy;•Wages and Incomes Policy;•Implementation of Employment Policy and Strategy for Kenya which will give a comprehensive framework forlarge scale employment creation including the establishment of a 24 hour economy; and•Fast Track implementation of Sessional Paper No.2 of 2005 on Development of Micro and Small Enterprises forWealth and Employment Creation for Poverty Reduction.
Legal Reforms
•Enact and enforce the Trafficking in Persons (TIP) Bill;•Enact of the National Youth Council Bill;•Finalise the Permanent Public Service Remuneration Review Board (PPSRRB) Bill;•Entrench workers social and economic rights in the Constitution;•Formulate and enact the MSE Act;•Promoting Fundamental Principles and Rights at the workplace;•Fast Track the implementation of the Labour Institutions Act,2007,the Labour Relations Act,2007,theEmployment Act,2007,the Occupational Safety and Health Act,2007 and Work Injury Benefits Act,2007.
Institutional Reforms
•Transform the Directorate of Industrial Training into a SAGA;•Create framework for linkages between industry,education,training and research institutions;•Establish labour and employment attaché offices;•harmonise statutes and mandate of public sector wage review bodies;•Develop labour colleges to offer Diploma and Degree programme on Labour and Employment;•Establish the Occupational Safety,Health and Injury Benefit's Authority;•Develop the Occupational Safety and Health Institute;•Establish the National Council for Small Enterprise; and•Transform the NSSF into a pension scheme with wider coverage and more products.
3.7Security,Peace Building and Conflict Resolution
"A nation of peace and stability; a society free from danger and fear"
Security is the foundation of good governance,individual social welfare and economic development.The pre-requisitesof security are peace and elimination of conflict.However,the 2007 post-election crisis demonstrated to Kenyans thatpeace and security cannot be taken for granted.There is empirical evidence to demonstrate that insecurity increasesthe cost of doing business in Kenya.Consequently,in order to effectively implement the first phase of
Vision 2030
,itwill be necessary for Kenya to build a strong and sustainable framework for peace and security,and to ensure that allinternal conflicts and differences are resolved within the boundaries of the law.
3.7.1Situation Analysis
Over time,Kenya has acquired a deserved reputation as one of the most stable states in Africa.Nevertheless,thecountry has faced numerous threats to its national security and stability.These challenges have become increasinglysophisticated and complex,and have equally required change in the ways security agencies approach the fight againstcrime and insecurity.Moreover,the challenges call for a collaborative and integrated framework to effectively handlesecurity threats within the country. Although there have been incidences of electoral violence,ethnic clashes,terrorist attacks of external origin,and othercrimes the state has managed to keep all of these in check.Over the years,the Kenya Police,Administration Police,Provincial Administration (Provincial Commissioners,DistrictCommissioners,District Officers,Chiefs and Assistant Chiefs) and other national security agencies have played animportant role in the maintenance of peace,security and conflict resolution.Under the ERS,these institutions have undergone various reforms targeted at institutional capacity,as well as attitude and integrity change,in order toimprove service delivery.The events that followed the 2007 General Election and the difficult path that has been pursued in returning the countryto normalcy have brought to light a number of issues.Firstly,despite the encouraging progress made in the area ofsecurity reform to date ( as compared to the situation in 2003),a lot still remains to be done and a highly acceleratedreform effort is urgently required.It is pertinent to note that the post election events also affected individuals andfamilies within the security forces who were deployed to restore law and order.Furthermore,some institutionalbuildings,equipment and vehicles were also damaged thereby affecting the work of the Provincial Administration aswell as law enforcement officers .The Strategy as it applies to the maintenance of peace and security will therefore have to focus on rebuildingconfidence in the government among Kenyans.In addition,there is a need to cultivate trust and confidence amongdifferent communities and in re-assuring them that their safety and security is guaranteed.Perpetrators of crime willface the law and all IDPs will be resettled and reintegrated into their earlier areas of residence or places of work.Someof the ways this can be achieved will be by:•Enhancing peace building and conflict resolution programmes;•increasing police presence through recruitment of more police officers and building of more police stations; and•Constructing Administration Police (AP) camps and intensified intelligence gathering to pre-empt crime.These will be complemented by political efforts to build inter-communal trust and harmony and to promote betterrelations between security forces and the communities they work with.Progress has been made in a number of areas over the ERS period.Through an accelerated double recruitmentprogramme,the ration of police to the general population improved from 1:850 in 2003,to 1:600 in 2007.At thecurrent pace of recruitment,the target ratio of 1:450 now seems imminently achievable.As a way of building trustbetween the police and the general public,initial steps have included the establishment of Community Policing (nowin 222 police stations across the country),the introduction of Police Open Days and the use of interactive multi-media(electronic and internet) to provide important information to the public.Steps to increase police effectiveness are also underway.These have included accelerated re-tooling and re-trainingof the police force through sensitisation trainings on human rights approaches and anti-corruption.In addition,thecompletion of the pilot phase of a force-wide attitude and culture change programme is now being rolled out acrossthe country.In terms of working conditions for the police,a police housing programme is in the process of beingsuccessfully implemented,with 65 per cent of the project completed.Remuneration terms and conditions for the policehave also been reviewed and improved from 2003.With regard to equipment and technology,more vehicles and patrol boats have been deployed to increase visibility andmobility of the police force.Other innovations include enhanced communication technology,fingerprinting equipmentand anti-riot gear.As a result of these capacity improvement efforts,the level of reported crime fell from 77,340 in2003,to 63,028 in 2007.Furthermore,internal and cross-border cattle rustling has fallen by 90 per cent,while 20,136illegal firearms and over 50,000 rounds of ammunition were recovered and destroyed during the ERS period.In an effort to deal with the growing complexity and sophistication of crime,the Proceeds of Crime and Anti – MoneyLaundering Bill was presented to Parliament.In addition,a Trans-national Organised Crime Bill,a Counter-Trafficking-in-Humans Bill and the Anti-Terrorism Bill will be expected to be tabled in Parliament shortly.Moreover,both the KenyaPolice Act and the Administration Police Act are at an advanced stage of review.
Following the 2007 post-election crisis,the government has accelerated the strengthening of border security andenhanced cross border peace dialogues through peace building committees established under the framework of theNational Steering Committee on Peace Building and Conflict Management.In the North Rift region,the Provincial Administration and security forces successfully established a voluntary disarmament campaign,titled:
Dumisha Amani
.Furthermore,specific Humanitarian Civil Action (HCA) social and infrastructure initiatives have been undertaken tobegin the process of reducing conflict and promoting socio-economic development.Other achievements within the Security sector during the period 2003-07 included the following:•A Public-Private Stakeholders Security Forum was established to promote dialogue and enhance partnerships;•The National Coordination Agency Against Drug Abuse (NACADAA) was transformed into a fully-fledged semi-autonomous national authority;•A draft National Crime Prevention Strategy has been developed and is currently under discussion;•A draft Policy and Legal Framework on the Integration of Population Registration Services has been developed;•The Citizenship Act,Immigration Act and Aliens Registration Act have been reviewed and updated;•A draft Civil Registration (Births and Deaths) Act has been developed and is currently being finalised;•Police Human Rights Manuals have been developed for the Kenya Police (Police HR Manual),while a Provincial Administration Training Manual was developed to capture children rights,gender,succession issues,land andenvironmental issues.
3.7.2Emerging Issues and Challenges
Despite the progress made within this sector,the area of security,peace building and conflict resolution faces severalchallenges that need to be addressed for
Vision 2030
to be realised.These challenges can be broadly categorised aseither external challenges which refer to the national environment or internal challenges relating to the institutional setup.
i) External/National Challenges
In its efforts to promote a safe and secure environment,the sector faces eight broad challenges,namely:
Organised Criminal Groups:
In the midst of widespread unemployment and poverty in the country as well as a fastgrowing population,the emergence of organised criminal groups is now a real and significant threat to the peace-loving society that most Kenyans would aspire to live in.In particular,the majority of Kenya's unemployed comprise ofyoung people who are idle,frustrated and,increasingly,have little at stake to loose.Hence,it is not unusual that theyare easily lured to join criminal groups as well as indulging in generally anti-social behaviour.
Resource Conflict:
Resource conflict manifests itself particularly in terms of competition for land,water and pasture.This situation is likely to persist and could also rise in the face of growing population pressure.It has also becomeincreasingly difficult for Kenyans to earn a living in a challenging economic environment.
Politically related Violence:
Politically related violence,( as recently witnessed both before and after the 2007 GeneralElections) has become prevalent in Kenya's political landscape that largely constitutes ethnically-based politicalparties.The unregulated use of campaign funds has further aggravated this problem.With regard to this,a more recentconcern is the increasing use of the aforementioned organised criminal groups and militia to perpetrate electoral andethnic violence.
Drug and substance abuse and Drug trafficking:
Increasing anti-social behaviour,as exemplified in widespreaddrug and substance abuse,presents a new and growing challenge particularly among the youth.The ease with which illicit drugs and alcohol are now available presents a major problem.Further compounding the problem is theincreasing use of Kenya as a drug trafficking focal point with an international dimension.
Increasing Visibility of Contact Crime:
Although robbery,burglary and outright theft account for roughly four out ofevery ten crimes committed in Kenya,increased human rights awareness,and more intense press reporting,hasshifted the spotlight to contact or violent crime.This accounts for three out of every ten crimes in Kenya,with sexualviolence and other forms of abuse against vulnerable persons coming to the fore.The increased exposure accordedto such contact crime has naturally set new standards of public expectation of the need for security and justiceinstitutions to rapidly resolve and bring to justice the perpetrators of these crimes,particularly in the context of rapeand sexual assault.
Trans-national Crime:
Fast-changing trends in the international arena have resulted in more complex andsophisticated crime of a trans-national nature.These crimes include money laundering,human trafficking andterrorism.Kenya has received significant international attention in each of these areas over the past few years.
Proliferation of Small Arms:
Small arms trafficking and usage continues to pose a major threat to security in Kenyaby creating a market for arms and space for violence in both urban and rural areas.Furthermore,Kenya's extensiveinternational boundaries and inadequate surveillance of cross-border movement calls for more effective border andimmigration control,especially across borders shared with countries that have had a history of political instability.
Ebbing Confidence in Kenya's Security:
There is an urgent need to re-build public confidence in Kenya's securityinstitutions as was demonstrated in the post-2007 election events.As a result of the chaos and violence and generalstate of insecurity,many Kenyan citizens showed no respect for national security institutions,or institutions of law andorder.It should be emphasised that this often understated challenge deserves greater policy attention.
ii) Institutional Challenges
Faced with the significance of the external challenges just described,the government will adopt the necessary action–to deal with these challenges.In so doing,the following six internal challenges will be addressed:
Early Warning and Response Mechanism:
The government will put in place Conflict and Disaster Early Warning andResponse mechanisms to avoid a recurrence of the disturbing situation that recently emerged in Kenya after the 2007elections.In particular,existing mechanisms need to graduate from an "event"or "incident"based response to anapproach based on "trend monitoring"(e.g.banditry,cattle rustling,ethnic friction,food or water shortages).Moreemphasis needs to be focused on "prevention",as the recent post-election crisis aptly demonstrated.
Security and Crime Research:
Related to the foregoing point is the challenge of an inadequate security and crimeresearch framework,following the 2007 launch of the National Crime Research Centre.The 2007 post-election crisisdemonstrated that emphasis must be placed on getting this institution up and running as a matter of urgency.
Outdated Institutional Policies:
Several security sector institutions continue to operate within a framework ofoutdated policies and laws that are at odds with the demands of an emerging democracy.Examples of outdated lawsinclude the Police Act,Administration Police Act and Public Order Act.The relevant policies and laws are presentlyunder review and will be implemented as soon as they are approved.
Inadequate Human Capacity:
Human capacity in the sector is inadequate both in terms of numbers and skills.The"numbers"challenge is particularly crucial,as it impacts on the capacity of the sector to provide security within andalong Kenya's borders and territorial spaces.Furthermore,despite recent improvements,remuneration and livingconditions remain deficient particularly with regard to police and prisons staff housing.
Aging Infrastructure:
The sector currently suffers a general inadequacy in working infrastructure,with aging facilitiesand equipment and insufficient office space affecting the disciplined forces and provincial administration in particular.Hence,adequate modern working infrastructure is urgently required.
Need for ICT- Based Systems:
The lack of modern systems and technology,particularly ICT-based systems,is aparticular challenge for the security sector in today's fast-evolving context.This ranges from basic documentmanagement systems (e.g.crime records/files) to data management systems (e.g.crime data analysis systems,orforensic databases).It also extends to systems for dealing with citizens (front-office systems).In a systems andtechnology-weak environment which
Vision 2030
seeks to promote,both the speed and quality of decision taking inthe security sector must be improved.Linked to this is the need to build capacity in the use of ICT as a managementand decision-support tool and getting the technology to be accepted across the sector.
Integration of ex-Security Officers:
An increasingly serious challenge relates to ex-security officers.Kenya lacks a'veterans' or retired security officer's framework or policy for the re-integration of these ex-officers into society.Consequently,the country has failed to tap into valuable human capital and knowledge which could make a positivecontribution to society.These ex-security officers could make an impact in so far as security,peace building and conflictmanagement issues are concerned.The government will therefore give attention to this issue over the Plan period.
3.7.3Programmes and Projects for 2008-2012
Under the security,peace building and conflict resolution framework,the vision for 2030 is
"security of all persons and property throughout the Republic"
.The goal for 2012 is to enact and operationalise necessary policy,legal andinstitutional frameworks around security,peace building and conflict resolution.Specific strategies will involve:•Promoting a stronger sense of Kenyan statehood and nationhood,as the foundation of sustainable peace,securityand national unity;•Promoting national and inter-community dialogue in order to build harmony among ethnic,religious,racial andother social groups,in order to enhance peace building and reconciliation among all Kenyan communities;•Inculcating a culture of respect for the sanctity of human life that restrains people from resorting to violence asmeans to resolving personal and community disputes.This should start with the family,schools,the church andall public institutions;•Deepening policy,legal and institutional reforms for improved enforcement of law and order;•Improving coordination and communication among the various institutions dealing with security to enhanceeffective management of crime;•Promoting sustainable public-private partnerships in policing and the provision of security services;•Promoting stakeholders cooperation and community involvement for improved safety and security;•Curbing small arms trafficking and usage and tighten immigration and border control;•Deepening the use of early warning systems to detect and address crime and other forms of insecurity;•Executing policies and programmes for the re-integration of ex-security personnel into society,and thedeployment of their skills to local communities;•Intensifying the campaign against and control of drug and substance abuse as well as drug trafficking;•Intensification of surveillance and improvement in crime detection;•Improving human resource management,particularly with regard to terms and conditions of staff in the policeforce,security forces and administration related field services;•modernisation of security equipment;•Recruitment of more security staff:This will improve security by improving the police to population ratio; and•Capacity building through intensified modern training of security staff and provision of the necessary equipmentin all security agencies.
Flagship Projects for 2008 – 2012
As a cross-cutting sector,the security sector creates an enabling environment for the entire nation,at personal,familyand sectoral levels.Security is a vital factor from an economic and social perspective,as well as at institutional levels.For the period 2008-2012,four flagship projects,which fall under the National Security and Policing Programme,havebeen identified:•
Forensic Laboratory
– Establishment of a modern functional forensic laboratory to support the ongoing war oncrime.The key elements include the procurement and equipping of the laboratory and the simultaneousdevelopment of appropriate human capacity to manage this new function.•
Urban Area Camera Surveillance
(Pilot) – A national CCTV/camera surveillance project will be piloted in fourmajor urban locations in Kenya – Nairobi,Mombasa,Nakuru and Kisumu.It is anticipated that this project will becarried out as a Public-Private Partnership.•
Police Staff Housing
– This project was initiated under the ERS.A target of 20,000 housing units will bedeveloped during the MTP period.•
National Security Data Centre
– Its role will be to systematically buttress the war on crime,and to acceleratethe sharing of information across all security and policing agencies.This national Centre will be established andmade operational during the MTP period.A key objective of this project will be to integrate all security informationinto a single national security database covering the whole of Kenya.In addition,one flagship project,which falls under the Population Registration and Immigration Services Programme,has been identified,as follows:•
Integrated Population Registration System
– A modern,integrated population registration database will beestablished under this programme.This database,titled the IPRS,will link other systems included (as listed laterin this section) the Third-Generation ID Card,a new Visa Issuing System,a new Births and Deaths CertificateSystem,a new Biometric Passport System and a new Border Management System.It will also be linked to othernational population registration systems,including the Kenya Revenue Authority,National Social Security Fund,National Health Insurance Fund Systems,as well as the National Security Database mentioned above.
Other Priority Programmes
The entire MTP framework for Security,Peace Building and Conflict Resolution (including the above flagship projects)is reflected in seven key programmes as follows:•National Security and Policing;•Peace Building and Conflict Resolution (PBCR);•Small Arms and Light Weapons (SALW) Control and Management;•Drug Demand and Supply Reduction (DDSR);•Administration and Field Services;•Aid To Civil Authority; and•Population Registration and Immigration Services.Key projects and policies within these programmes are outlined below,with a definite time frame and resource detailprovided in the Implementation Matrix (Annex).
National Security and Policing
The overall objective of this programme is to
"enhance the effectiveness of national security and policing services and operations across Kenya"
.This will be done through the following core projects and activities.
Officer Recruitment and Training:
Through the double recruitment programme,10,000 additional police officers will berecruited and trained during the MTP period raising the police-to-population ratio from 1:600 in 2007 to 1:450 in 2012.
Crime Management Curriculum Review:
A comprehensive review of the overall policing and crime managementcurriculum will be carried out between 2008 and 2009.The focus of this long-outstanding review will be to consolidatecurriculum improvements made over the years,while creating important new training content that reflects the latestinternational,regional and local skills in crime management as attuned to Kenya's crime management needs as anemerging democracy.The new curriculum is expected to be piloted in 2009 for full launch in 2010.
Security and Policing Law Review:
The government is in the process of reviewing the security and policing lawsincluding the Kenya Police,Administration Police and Public Order Acts.Under this key measure,all other related lawswill also be reviewed within an overall package aimed at making such law consistent with modern democratic norms.National Community Policing Initiative:The rollout of community policing initiatives – already established in 222stations across Kenya – will be accelerated to ensure that all police stations in Kenya are engaged in communitypolicing.Part of this rollout will include important lesson learning based on the experiences gains thus far.Public-Private Partnership (PPP) modalities will be explored to ensure that this national rollout is accelerated.
Enhanced Crime Data Collation/ Analysis/Storage:
Crime data reporting by the Kenya Police has improved over theERS period.However,data collection,analysis and storage methodology is still rudimentary and urgently needs to beimproved.This will be the integrated focus for security and police agencies over the MTP period,during which theNational Crime Research Centre – launched in 2007 – is likely to play an important role.
Completion of Phase 1 of Police Reforms Programme:
The first phase of the Police Reforms Programme had as afocus,crime prevention,improved human resource management,improved facilities,equipment and technology,building a positive image and strengthening its institutional framework.In the face of funding and operationalconstraints,not all reforms were completed,and these have now been rolled over into the MTP period.
Security Facilities and Equipment Modernisation:
In addressing the capacity challenges the sector faces,specificresources will be earmarked towards a comprehensive and phased modernisation of all security facilities andequipment.
Peace Building and Conflict Resolution (PBCR) Programme
The overall objectives of this programme are to
"promote tolerance and peaceful co-existence among all Kenyan communities"
and to
"establish and operationalise a policy and institutional framework for PBCR and Early Warning Mechanisms on social conflict".
To achieve these objectives,the following core projects and activities will be undertaken:
Country-wide PBCR Civic & Stakeholder Dialogues / Fora:
Expanding on a pilot framework already in place inselected locations,this process of civic and stakeholder dialogues and fora at national,provincial,district and locallevel is envisaged to take place at least once a year across the country.Such dialogue will be open in nature,aimedat community interaction on social and other issues,while at the same time allowing communities and stakeholdersto make their views known to government on matters of interest and concern.
District Peace Committee (DPC) Framework:
20 District Peace Committees (DPCs) have been set up mainly locatedin the North Rift region.Under this initiative,the DPC framework will be extended to the entire country,and linked toDistrict Security Committees.It is envisaged that 20 DPCs will be established every year.
Annual Socio-Cultural Events:
It is envisaged that 2 annual cultural events will be held every year in at least 40districts around the country.Working on a rotational basis,these events will include music concerts,sporting contests,multi-cultural exhibitions and peace modelling.This initiative will act as an important cornerstone of the process ofbuilding national cohesion in a multi-cultural context.Public-Private Partnership (PPP) modalities will be pursued toensure that these events are successfully carried out.
Multi-Media Peace Messages:
As an ongoing programme,resources will be devoted towards the timed and regulartransmission of peace messages through the electronic,print and broadcast media.Varying creative approaches willbe used to ensure that these messages retain their impact and effect over the period of the MTP.
PBCR Policy Framework:
The peace building and conflict management processes will be institutionalised through apolicy and legal framework that establishes a National Peace Building Commission (NPBC).The core functions of thisCommission will revolve around leadership,management and coordination of all projects,measures and actions fallingwithin the Peace Building and Conflict Resolution Programme.It is expected that the NPBC will replace the currentNational Steering Committee (NSC) on Peace Building and Conflict Management.
PBCR Capacity Development:
Capacity development will be necessary not simply for officers of the NPBC,but alsofor Administrative Officers (Provincial Administration),Chiefs,Administration Police,District Security Committees andDistrict Peace Committees.The current peace building curriculum (including records of practical activities undertaken)will be consolidated and converted into a formal curriculum,including teaching,Training of Trainers and actual trainingmanuals.This will form the basis for continuous capacity building.
PBCR MIS/M&E System:
With a policy,legal and institutional framework in place,and a capacity developmentpackage available,the third element of management improvement will involve the development of a comprehensiveMIS/M&E system for PBCR.
Small Arms and Light Weapons (SALW) Control and Management Programme
The overall objectives of this programme are to:•control and manage the proliferation of small arms and light weapons across Kenya;•reduce demand for illicit SALW; and•establish and operationalise a policy and institutional framework for the Kenya National Focal Point with respectto SALW.The following key projects and actions are identified for this programme:
District Awareness Forums:
Public forums at district level will be held to create awareness and interact withcommunities on the issue of small arms and light weapons.It is expected that these forums will be institutionalisedin at least 20 districts in traditionally conflict and crime prone districts across the country.
SALW Retrieval:
Building on the success of retrievals achieved in the ERS period,law enforcement agents willcontinue to work closely with defence forces to retrieve illegal SALW.
SALW Demand Reduction Research:
Much practical experience and research work has been done in the area of SALW,particularly as regards the East and Central Africa region.The focus of this action will be to build on this work by establishing an institutionalised research process that seeks more efficient strategies to reduce demand for illegalSALW.
District IGE Programmes:
In conjunction with the above research effort,efforts will be made to promote and guideincome-generating initiatives,through the Provincial Administration,in at least 20 conflict prone districts across the country.
SALW Policy Framework:
To formally institutionalise the Kenya National Focal Point (KNFP),which currentlycoordinates SALW monitoring efforts through the Provincial Administration,a national policy framework on SALW willbe developed and implemented during the MTP period.
SALW Capacity Development:
Capacity development will be necessary not simply for officers and members of theKNFP,but also for Provincial Task Forces (PTFs),District Task Forces (DTFs) and all law enforcement and securityagencies and committees.Such capacity development will be informed both by ongoing SALW efforts and the proposedSALW demand reduction research.
Drug Demand and Supply Reduction Programme
The objectives of this programme are to:•reduce drug and substance demand and supply,and related crime and conflict;•facilitate effective treatment and rehabilitation of drug users; and•fully operationalise NACADAA.Key elements of this programme will include:
Full Operationalisation of NACADAA:
With NACADAA now formally established as a statutory authority,the initial MTPfocus will be:•full operationalisation,involving the recruitment of dedicated staff (previously most staff were drawn frommainstream Ministries),the acquisition of offices,procurement of equipment and other institutional set-up andcapacity development activities; and•establishment of formal inter-sectoral coordination and collaboration mechanisms.
Drug Demand and Supply Reduction.
Key focus areas will include:
Public Education and Awareness Campaigns:
Building on ongoing public education and awareness efforts will beenhanced,in partnership with private sector and development partners,as a demand-side initiative.
Anti-Narcotic And Police Operations:
Multi-agency operations involving police and intelligence agencies will beenhanced,with a key objective being to reduce the supply of drugs and illegal substances available in Kenya.
Zero-Tolerance Measures
:Enhanced punitive measures,including legal measures,will be introduced andimplemented in order to increase risks to drug traffickers and other trans-national criminals,while sending out a strong"zero-tolerance"message to drug users.
Drug and Substance Abuse Research:
NACADAA will continue to collaborate with educational and researchinstitutions on drug and substance abuse in Kenya.
Facilitation of Effective Treatment and Rehabilitation of Drug Users:
Under this measure,NACADAA intends towork in partnership with private sector medical institutions,private sector sponsors and private and community groupson initiatives that support the treatment and rehabilitation of drug users,within a holistic context that also includespost-rehabilitation counselling.
Administration and Field Services Programme
The objective of this programme is to
"facilitate improved delivery of government services to Kenyans"
.Key projectsand actions identified for this programme will include:
Expanded District Development:
With districts having increased from 72 to 147 in the past five years,the focus of thiseffort will be the necessary construction,equipping and operationalisation of district offices for all newly created districts.
Sector Policy and Law Review:
This programme will continue to lead policy,law and institutional reform effortsacross the sector.A summary of the reform agenda is shown at the end of this chapter.
Capacity Development and Sector Linkages:
As part of continued institutional strengthening,it is expected that pastlarge scale capacity development efforts will be enhanced during the MTP period.In addition,a core MTP focus of the Administration and Field Services programme,which is a coordinating programme,will be the effective coordinationof all security agencies,particularly given the expanded peace building and conflict resolution scope now envisagedfor the sector.
Working Infrastructure:
Working infrastructure,particularly communications equipment,vehicles and ICT willcontinue to be upgraded as the programme seeks to be increasingly responsive to the needs and rights of Kenyans.
New Headquarters:
It is envisaged that this programme will be relocated to a new,and more expansive,headquartersduring the MTP period.
Aid to Civil Authority Programme
The objective of this programme is to
"support civil authorities in social and infrastructure development in harsh/conflict areas"
.The key project under this programme is HCA (Humanitarian Civic Action) – Social and Administrative Infrastructure Support,which essentially involves the military working with civil authorities,mainly theprovincial administration,in social and infrastructure projects as and when needed.
Population Registration and Immigration Services Programme
The objective of this programme is to "establish and operationalise an Integrated Population Registration Database System (IPRS) and key supporting systems for Kenya"
.Beyond the IPRS -identified earlier as a flagship project - thekey projects identified for this programme are:•Introduction of Third-Generation ID Card;•Improve Births and Deaths Registration Certificate System;•VISA Issuing System;•Biometric Passport System; and•Border Management System. All these systems will be linked through the flagship IPRS project.
3.7.4Policy,Legal and Institutional ReformsPolicy Reforms
In support of the comprehensive programme defined in the previous section,an extensive policy reform agenda isenvisaged for the sector,which includes:•Finalisation and Rollout of the National Security Policy to enable the relevant sectors to develop their specificsectoral policies;•Finalise and implement the Community Policing Policy;•Finalise and implement Stakeholders Partnership Policy;•Review the policy on Military Humanitarian Civic Activities/Aid to Civil Authority;•To enhance the role of the Armed Forces in socio-economic development;•Finalise and implement a national Drug and Substance Abuse Control Policy;•Finalise and implement draft Peace Building and Conflict Management Policy;•Finalise and implement a draft policy on Small Arms and Light Weapons in line with regional and internationalconventions;•Review and Finalise the implementation of ICT ministerial policy especially by the security agencies;•Finalise and implement regulating policy on private security providers;•Finalise the review and implement District Focus for Rural Development Policy;•Develop a policy on Internally Displaced Persons (IDPs),Besieged Persons (BP) and Resettlement and reintegrationProgrammes;•Develop a policy on universal conscription of youth into the National Youth Service (NYS);•Develop and implement a gender mainstreaming policy for PA&IS; and•Finalise and implement the National Alcohol Policy.
Legal Reforms
The policy reform agenda will be supported by a legal reform agenda that includes the following:•Finalise the review of Kenya Police,Chief's,and Administration Police Acts;•Finalise and enact the organised Crime Bill;•Finalise and enact Anti Terrorism Bill;•Review and implement the Proceeds of Crime and Money Laundering Prevention Bill,2006•Harmonisation of the Liquor licensing Act and Traditional Liquor licensing Acts;•Implement the Witness Protection Act;•Review and enforce the Physical Plan Act to control the mushrooming of informal and illegal settlements especiallyin the urban areas;•Finalise the Hate Speech Bill;•Review the Firearms Act;•Review the Media Act to control incitement attempts;•Review the Freedom of Information Bill;•Review the Refugee Act;•Review the Narcotics Drugs and Psychotropic Substances (Control) Act,1994;•Review the Armed Forces Act to enhance its integration of HCA activities;•Enact the Alternative Dispute Resolution (ADR) Bill to institutionalise peace building and conflict transformation inthe country;•Finalise the Land dispute Tribunal Act;
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VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
•Enact the Precursor Chemicals and Drugs Law;•Amend the Provincial and District Boundaries Act to accommodate the newly created districts; and•Domesticate international and regional Conventions through an enactment of the relevant legislations such as theInternational Shipping port security code and international maritime conventions.
Institutional Reforms
Institutional reform continues to be a priority for the sector.Over the MTP period,such reform will focus on thefollowing:•Deepen reforms being implemented in the Provincial administration especially the integrity and attitude changereforms to make the officers more people friendly;•Enhance the capacity of both human resource and equipment of security agencies;•Consider the establishment of a Metropolitan Police Authority for Nairobi and other major cities;•Establish an Independent Police Complaints Authority to deal with public complaints;•Establish a framework for co-ordination of public and private security stakeholders;•Implement the Integrated Population Registration System (IPRS);•Enhance the capacity and operationalise NACADAA;•Restructure the Early Warning System and Disaster Management Co-ordination mechanism in Kenya;•Provide a framework for stakeholder partnership for effective emergency response and rescue services;•Restructure the Peace Building and Conflict Resolutions Secretariat and structures at all levels;•Restructure the mechanism for identifying persons for registration in the districts along the international borders;•Restructure the Kenya National Focal point on Small Arms and Light Weapons;•Build the capacity of Forensic investigation unit through provision of appropriate equipment and specialisedtraining;•Acquire and install appropriate ICT infrastructure for all security agencies;•Enhance the capacity of National Maritime Patrol through provision of appropriate and adequate equipment;•Establish a mechanism to re-integrate retirees/ ex-servicemen into the society; and•Establish a framework for coordination of the campaign against drug abuse among all stakeholders.
4. The Four Economic Pillars
Moving the Economy up the value chain Overview
To address Kenya's economic growth challenges and thereby creating more opportunites for everyone,six prioritysectors have been targeted to raise the national GDP growth rate to 10% by 2012.The sectors are:Tourism,Agricultureand Livestock,Wholesale and Retail Trade,Manufacturing,Business Process Outsourcing and Financial Services.Thesesectors make up the bulk of Kenya's GDP (57 per cent) and account for approximately half of the country's total formalemployment.The sectors are supported by the enablers that include energy,infrastructure,Human ResourceDevelopment (HRD),Security,Information Communication Technology (ICT),Science,Technology and Innovation (STI)as discussed in chapter 3 of this MTP 2008 - 2012.This chapter looks at each of the six economic pillar sectors andidentifies the priority programmes and projects to be undertaken during this first Medium Term Plan period.
4.1Tourism
"To be a top 10 long haul tourist destination offering a high-end,diverse,and distinctive visitor experience"
Kenya is one of the leading tourist destinations in sub-Saharan Africa,a region that has significant potential for tourismgrowth.Moreover,the country is endowed with a unique combination of tourist attractions comprising of tropicalbeaches,abundant wildlife in natural habitats,scenic beauty,and geographically diverse landscape.Tourism is highlycompetitive and sensitive to price changes,while premium parks and niche products are so unique that they can bemarketed successfully at higher prices.In addition,tourism,through its multiplier effect has the capacity to promoteregional development,create new commercial and industrial enterprises,stimulate demand for locally-produced goodsand services and provide a market for agricultural products.
4.1.1Situation Analysis
Tourism currently accounts for about 10 per cent of the Gross Domestic Product (GDP),making it the third largestcontributor to the GDP after agriculture and manufacturing.It is also Kenya's leading foreign exchange earnergenerating about Kshs 65.4 billion in 2007,up from Kshs 21.7 billion in 2002.The sector's contribution to thegeneration of employment has grown by over 3 per cent annually.Moreover,earnings per employee increased by 18per cent over the last five years.Further,the sector is a major source of government revenue in the form of taxes,duties,license fees,entry fees among others.This contribution has the highest multiplier effect due to its linkage withother sectors.Further,the sector benefits from lower capital/output ratio and import-content per unit of final outputcompared to most other sectors.The Tourism Recovery Programme,which started in 2003 resulted in tremendous recovery for the country,withinternational arrivals rising by an average of 12.5 per cent annually,from about 1 million in 2002 to about 1.8 millionin 2007.On the other hand,domestic tourism registered a remarkable growth from 656,100 bed nights in 2002,to1,869,800 bed nights in 2007.
59
THE ECONOMIC PILLAR
4.1.2Emerging Issues and Challenges
Post election violence:
Since the onset of the 2007 post-election violence,tourism practically collapsed as a resultof the negative publicity Kenya received in the global media which resulted in the country being perceived as veryinsecure.This violence led to a great reduction in the number of tourist arrivals; domestic tourism declined; damagedinfrastructure (hotels) and in some cases displacement of skilled labour.With the formation of the Grand CoalitionGovernment,given that the necessary infrastructural facilities are already in place,there is renewed optimism thattourism will pick up in the months ahead.However,the tourism sector is faced with other key challenges which needto be addressed for it to attain its full potential.These challenges include the following:
Insecurity:
In the past,the tourism sector has suffered from negative publicity and insecurity both real and perceived.The major sources of insecurity in the East African region are associated with political instability,terrorist threats,income inequalities,unemployment and poverty.The post election violence further complicated the security situationand generally had a negative impact on the sector.
Inadequate Infrastructure Support:
The available infrastructural and hospitality support facilities are inadequate forthe expected high tourist numbers.Improvements have been made on a number of roads leading to key resort areasas well as in new parks targeted as destinations to encourage additional tourists.Other investment avenues to beexplored include Rail and Marine transport.
Narrow Product Diversity:
Tourism activities in Kenya are currently concentrated on wildlife,which accounts for 70per cent of gross tourist earnings and 5 per cent of the GDP.Seven of the twenty six parks receive about 80 per centof visitors to the country.This is despite the existing potential in cultural,sport and resort cities,business tourism,eco-tourism,sports tourism,shopping,conference tourism,heritage sites among others community-based tourism.Thesector also needs to improve on the product and service quality.
Inadequate hotel/bed capacity:
The increase in tourist arrivals registered has not been accompanied bycorresponding investment in tourist accommodation.Consequently,bed occupancy levels during peak season are closeto full capacity (about 92 per cent).This challenge is more severe in the 4-5 star hotel categories that represent 18 percent of premier hotels.
Untapped Domestic Tourism:
Over reliance on traditional markets from western countries makes the sectorvulnerable to external shocks.However,there is a huge national and regional potential which need to be harnessed.This can be achieved through identification,development,effective marketing and promotion of products that appealto domestic and regional tourists.
Source: Economic Survey 2007 and 2008
Table 4.1 Tourism Arrivals and Earnings,2002 - 2007.
Environmental Issues:
Major challenges to wildlife include the loss of habitats due to changes in land use and humanencroachment into protected areas and those adjacent to wildlife migration corridors as well as inadequate policy andgovernance to curb poaching.In addition,human encroachment into migration routes and use of protected areas asgrazing areas by pastoralists has heightened human/wildlife conflicts in areas such as Amboseli and Mara.This hasbeen compounded by the effects of climate change.
Inadequate skilled Human Resource:
An inadequate supply of skilled labour force has hindered the provision of highquality services within the sector.Further,the available training at lower cadres need to be upgraded to provide therequired skills.
Research and Development (R&D):
There is need for support to create and equip a functional and effective Researchand Development Unit in the sector.This will spearhead research on emerging trends,market and consumer surveysto duly inform decision makers and investors.
4.1.3Projects and Programmes for 2008 - 2012
In order to address the challenges confronting the sector,the MTP,in addition to the One Year Recovery Strategy willundertake the following flagship projects as part of the overall programme to promote the tourism sector.
One Year Recovery Strategy
Short term measures currently being undertaken include:•Aggressive advertising of Kenyan products and Media Campaigns both locally and internationally;•Re-branding of Kenya in overseas markets;•Advising countries that have imposed travel advisories to lift them;•Strengthen foreign missions to promote Kenya as a safe tourism destination;•Suspension of the programmed increment of park fees by Kenya Wildlife service for the entire 2008;•Encouraging,hotels,airlines and tour operators to offer discounts to attract customers;•Organising familiarisation trips;•Enhancing security on critical tour routes such as those leading to game parks and strengthening Tourist Police Force.
Flagship projects for 2008 - 2012
Development of 3 Resort cities – Isiolo,Diani and Kilifi
The first resort city will be constructed around Isiolo to optimize the rich tourism potential presented by Mt.Kenya,Meru National park,the Aberdares and Samburu National Park among others.The project is expected to turn Isiolo towninto a regional hub.In addition,it will open up the northern part of the country thereby,attracting economic activitiesand investments.The other two will be located at the coast with a specific theme.The resort at Kilifi will be a family-friendly resort targeting predominantly high-income tourists,while the one in Diani will emphasise on sensitisingtourists to the rich culture of Kenyan communities.
Premier Parks Initiative
This will involve branding of the most popular parks with the aim of offering high quality experience at premium rates.
Under-utilised parks initiative
The existing facilities and infrastructure in these parks will be rehabilitated and expanded.In particular,the current bedcapacity will be improved and expanded.In addition,measures will be taken to attract new investment to the parks and also to advertise tourist attractions at the parks.These parks include Meru,Mt Kenya,Tsavo East,Tsavo West,MtElgon and Ruma.
Development of niche products
•
Eco-tourism
– This is a popular product especially for the European and American market due to its environmentfriendly nature.Sites for these products will be developed in the Western region of Kenya.They will includeKakamega Forest,Ruma National Park,Mt Elgon and Mt Kenya Regions.•
Cultural Tourism
– Kenya has a wide variety of indigenous cultures,which have not previously been explored fortourism purposes.Deliberate efforts will therefore be made to promote authentic cultural experiences and launchhigh value cultural projects and festivals.The government will also partner with stakeholders to develop criteriato certify cultural homes (Home stay) in each community that can provide tourists with a cultural experience andbenefiting the communities at the same time.One way of achieving this is by creating opportunities for the localcommunities to participate in the tourist industry through cooperatives.The government will also partner withstakeholders to develop criteria to certify cultural homes (homestays) in each community that provides touristswith cultural experience.•
Local Tourism entrepreneurship:
This initiative will seek to develop the capacity of indigenous Kenyans toparticipate in the industry as entrepreneurs and investors.Among other things,this will entail awareness raisingand training.•
Water-based tourism:
Although the country has enormous potential for water- based tourism,this remainslargely under-utilised.This particularly applies to fresh waters such as Tana River and Lake Victoria where watersports and fishing can be developed.However,in order to facilitate the development of this product,additional bedcapacity will be required around Lake Victoria and Ruma National Park.•
Sports tourism:
Kenya enjoys a great international reputation in sports.Nevertheless,this potential has not beenfully exploited,yet it provides a good foundation for promotion of various types of sports tourism.Deliberateefforts will therefore be made to promote Kenya as a popular destination for sports tourism.•
Cruise tourism:
An ultra- modern cruise terminal at the Coast and a launch steamer service in Lake Victoria willbe built.•Other Niche products to be explored and promoted include Bird tourism and Agro-tourism.
Other Programmes
Amusement Park at Bomas of Kenya
The park shall offer a variety of entertainment complexes that are designed to evoke distant or imaginary activitiessuch as Kenyan safari tours,immigration,cultural homesteads and innovative attractions.This park will also be anamusement centre for family members,where parents and children can enjoy twists,turns,bumps,spins,and smilesall day long.Features of the proposed park include a cliff hanger,falling star,rattler,demolition disco,the scrambler,roller coaster,larger swings and a mini railway.
Building new exhibitions galleries for the Nairobi National Museums
The Nairobi National Museum has had its infrastructure refurbished and modernised through a grant from the EuropeanUnion.However,it requires new,more relevant,engaging and exciting exhibitions.Accordingly,the new exhibitions willinclude cultural and natural artefacts which will give a more comprehensive account of Kenya's culture and history.
These displays will promote patriotism and national pride as well as be a major tourist attraction for domestic andinternational tourism.Other displays will include human origins (Kenya is a cradle of mankind),geology,ecology ofKenya and art.
Development of World heritage sites as tourist destinations (Lamu,Mt.Kenya and Sibiloi)
Worldwide World Heritage sites are major tourist destinations.Kenya has three World Heritage sites:Lake TurkanaNational Parks,Mt.Kenya and Lamu Old Town.The National Museums of Kenya (NMK) in partnership with the KenyaWildlife Services (KWS) plans to develop Sibiloi National Park where the famous fossil site,Koobi Fora also known asthe Cradle of Humankind exists.
Health spas at Geothermal sites
Health spas are tailored-made to provide relaxation and curative benefits to user.They also benefit visitors with chronichealth complications as well as stress related problems.Moreover,health spas are ideally located in serene areascharacterised by naturally occurring hot,spring water and geysers.The Great Rift Valley is a high potential area for thesegeysers whose mineral content has some curative element and serves as a core tourist attraction.
Business and conference tourism initiative
Kenya has a large potential for business and conference tourism as a major product,owing to its location and ease ofinternational connections.To harness this huge potential,there is need to build ultra modern conventions/conferencecomplex preferably in the coastal region which accounts for about 57 per cent of the total bed nights.In addition,thisproduct will be improved by up-grading and building new conference facilities with possible location in the three newresort cities.To cater for increasing numbers of business tourists,the government,together with private sectorstakeholders,will also promote investment in hotels by international chains in major towns,especially in the cities ofNairobi,Mombasa and Kisumu.
Tourism Marketing and Recovery Strategy
The objectives of this strategy are to remedy damage caused to tourism sector by the post election violence and tosustainably market Kenya as the preferred tourist destination.These will be achieved through media and brand buildingcampaigns,destination familiarisation trips,source markets and products diversification,market research,andpromotions.
Classification of all tourism facilities
The objective is to ensure that tourists get value for their money by the sector maintaining high standards with regardto tourist facilities and attractions.Additionally,there is need to maintain a highly regulated tourism businessenvironment for investment and employment generation through the enforcement of both the Hotels and Restaurants Act and Tourist Industry Licensing Act.
Reclaim Wildlife corridors and migratory routes (Mt Kenya and Kitengela)
The establishment and maintenance of wildlife corridors and dispersal areas and biodiversity hot spots are significantto ensure continuity of viable ecosystems and capacity building for natural resource management.Securing thedispersal areas and wildlife corridors requires continuous efforts to encourage creation of conservancies.In criticalcases,the government will intervene and provide funds to support easement programmes,lease land from thecommunities,and acquire prime wildlife dispersal areas.
Senior citizen assisted living facilities/wellness centre
Kenya has a great potential for the development of assisted living facilities due to her value added advantage of apleasant climate and unique tourist attractions,including geothermal springs,rare species of flora and fauna andmedicinal herbs.An estimated 16 per cent of the tourists arriving in Kenya are aged 50 years and above with thefinancial ability to stay in the country for a long duration if the right facilities are in place.These facilities could provide specialised services such as nursing homes and facilities for elderly people unable to live alone,yet withoutincapacitating medical problems that necessitates living in a nursing home.Other key initiatives that would contribute to the expansion of tourism include:•Increasing the share of local investors in the tourism industry in order to increase the proportion of returns earnedand re-invested locally;•Streamlining the management of the tourism sector in order to attract investment and increase returns throughthe development of an effective tourism policy;•Developing a tourism Master Plan and a tourism regulatory framework; and•Establishing a workable compensation scheme for economic losses caused by wildlife.
4.1.4Policy,Legal and Institutional Reforms
Policy Reforms
To realise and sustain the tourism sector,various policy changes were made or initiated in the last five years.To thiseffect,tourism and wildlife policies were formulated.While the sector will continue to review these policies to suitchanging circumstances,the process of translating the two policies into law has been initiated.Hence,the Finalisationof the Wildlife and Tourism Acts will thus be conducted within the
MTP
Period.The sector will Finalise a Heritage policy during the Plan period in order to maximise the utilisation of existing heritagefacilities,develop a facilitative legal and institutional and regulatory framework,as well as improve efficiency inheritage investment.
Legal reforms
The legal reforms within this sector include the following:•
Amendment of the KTDC Act:
Gazettement of the KTDC Act will be necessary in order to increase borrowingcapacity from Kshs 265 million,to Kshs.1 billion;•
Implement the DFI reform strategy for KTDC:
The implementation of the DFI Reform Strategy for KTDC will bedone through the Ministry of Tourism & Wildlife and the Ministry of Finance;•
Zoning:
Zoning of Kenya into tourism development zones will be done in order to establish a developmentstandard for each product type.The carrying capacity of each zone will form the basis of a pricing mechanismthat will take into account the exclusiveness of each zoned area;•
Enactment of KTB and KICC by Acts of Parliament:
The existence of the two Acts has currently gone throughlegal notice; and•
Passing and enactment of the Tourism Bill 2007.
4.2Agriculture,Livestock and Fishing
Agriculture is one of the key sectors in the country with great potential for growth.Indeed,it contributes about 24 percent of the GDP,75 per cent of industrial raw materials and 60 per cent of the export earnings.Of this percentage,about 26 per cent earnings are indirectly linked to the sector through linkages to agro-based manufacturing,transport,wholesale and retail trade.The sector is acknowledged as one of the major employers of rural people,with anestimated 3.8 million Kenyans directly employed in farm,livestock production,and fishing while another 4.5 million were being employed in off farm informal sector activities.Under the MTP period,the sector is expected to be one ofthe key sectors in realising a quick post election recovery as well as the desired economic growth for the country.
4.2.1Situation analysis
The Implementation of the
Economic Recovery Strategy for Wealth and Employment Creation
(ERS),and the
Strategy for Revitalising Agriculture
(SRA),over the last 5 years have demonstrated that sustained growth in the sector ispossible,as outlined in this section.
Food Crops:
Food crops are classified into:cereals (maize,wheat,sorghum,rice,millet); pulses (beans,pigeon peas,cow peas,chick peas,green grams); and roots and tubers (Irish potatoes,sweet potatoes,cassava,arrow roots andyams).Most of these food crops have recorded increased production since 2002,with maize production increasingfrom 2.4 million tons in 2002 to 3.2 million tons in 2006.Production of beans increased from 481,225 tons to 531,800over the same period.Production of rice increased from 40,498 tonnes in 2003 to 64,840 tonnes in 2006.This wasdue to expansion of rice production in Mwea,Yala and Bunyala Irrigation Schemes and revival of Ahero IrrigationScheme.Production of wheat,has over the past 5 years averaged 375,000 tonnes compared to consumptionestimated at 890,000 tonnes.Production of roots and tubers,excluding Irish potatoes,on the other hand,increasedfrom 1.1 million tons in 2002 to 1.41 million tons in 2006.Production of Irish potatoes increased from 0.86 million tonsin 2002 to 2.41 million tons in 2006.
Industrial Crops:
Main industrial crops are tea,coffee,sugarcane,cotton,sunflower,pyrethrum,barley,tobacco,sisal,coconuts,and bixa.Tea is still one of the leading foreign exchange earners in Kenya.Tea production increased from287,100 tons in 2002 to 310,578 tons in 2006,while the value of exports increased from Kshs.34.3 billion to Kshs.47.3 billion over the same period.Export value of coffee increased by an average of 8 per cent per annum,while thatof pyrethrum recorded an average of 13 per cent growth rate.The value of coffee exports increased from Kshs.6.5billion to Kshs.8.7 billion over the same period.Following government efforts to revitalise the sugar industry,areaunder cane increased from 122,580 hectares in 2003 to 158,568 hectares in 2007.
Horticulture:
The horticulture sub-sector products include cut-flowers,vegetables,fruits,nuts,herbs and spices.Areaunder horticultural crops increased from just over 350,000 hectares in 2002,to over 380,500 hectares in 2006,while thevalue of total production increased from Kshs.32.0 billion to Kshs.54.4 billion over the same period.The export target of16 per cent of total exports was achieved and surpassed.Between 2002 and 2007 revenues from the sub-sector amountedto between Kshs.26.59 billion in 2002 to Kshs.65.2 billion in 2007,of which cut flower export value increased from Kshs14.8 billion in 2002 to 42.3 billion in 2007 and vegetables Kshs 10.2 billion to Kshs 20.8 billion over the same period.
Fish Production:
Fisheries production is a major source of livelihood for communities living around Lake Victoria andthe coastal regions.It employs over 60,000 fishermen directly,while over 600,000 people depend on the sub sectorindirectly for their livelihood through linkages in fish processing and trade.Currently,earnings average Kshs.4 billionannually through fish exports.Great potential exists for the development of fisheries activities within Kenya's Exclusive Economic Zone (EEZ) at the Coastand in the inland waters.During the last 2 years,the government acquired 13 patrol boats to use in the monitoring andsurveillance of the EEZ and inland waters.It also availed 35 out-board engines worth Kshs 10 million to BeachManagement Units along the Coast,the Lake Victoria region and in the inland lakes such as Naivasha,and Turkana formonitoring and surveillance.This has led to a substantial increase in revenues collected from Kshs 30 million in 2004 toKshs 117 million in 2005 and Kshs 135 million in 2006.The government is in the process of acquiring a vessel monitoringsystem to enhance monitoring and surveillance of the EEZ.In addition,adequate attention has been directed towards thepromotion of aquaculture (fish farming) in order to ease fishing pressure in major water bodies.
Due to the perishable nature of fish,the government is putting in place the necessary marketing infrastructure tosupport fish production and marketing.For instance,an ice making facility has been completed in Mbita and is beingrun by the community.In addition,three cold storage facilities are under construction in Vanga,Malindi and Lamu.
Livestock Production:
Livestock production is one of the major activities in the sector.Further,it is practiced in allparts of the country either under the pastoral extensive system in the Arid and Semi Arid areas (ASALs) or underintensive,ranching and smallholder systems.The pastoral and commercial ranch systems traditionally contribute tothe supply of beef and small stock meat.Livestock production in the ASAL accounts for nearly 90% of the employmentopportunities and nearly 95% of the family incomes.It also accounts for about 40% of the Agricultural GDP and about30% of the farm gate value for agricultural commodities.In the high rainfall areas of the country,dairy production is akey source of income to over 600,000 households.Production of sheep,goats and poultry was also promoted with theaim of reducing poverty.
Dairy:
Since 2003,dairy production has grown impressively as manifested by an increase in milk production,from2.8 billion litres in 2002 to 3.8 billion litres in 2006,representing a growth of 36 per cent.The milk intakes byprocessors also increased from 143 million litres to 362 million litres during the same period representing a growth of153 per cent,while milk prices increased from a low of Kshs 8 per litre to a high of Kshs 18 per litre.In the year 2006,Kenya exported about 14 million litres of milk worth Kshs 700 million compared to less than one million litres that usedto be exported prior to 2003.The main export destinations are neighbouring countries like Tanzania,Uganda,Rwanda,Burundi,Democratic Republic of Congo,Sudan and Ethiopia.The revival of the diary industry has stimulated growth inrelated industries that manufacture animal feeds,veterinary drugs,packaging materials and other equipment.
Beef Production and Marketing:
During the last three years,the government invested a total of Kshs 840 million intothe rehabilitation of the Kenya Meat Commission (KMC) and procurement of livestock from farmers.The revival of theKMC in June 2006,the operationalisation of the Landhies Road Depot in Nairobi and the Kibarani factory in Mombasain 2007 have all ensured that livestock keepers are increasingly having a ready market for their livestock.In addition,efforts are being made for the construction of satellite abattoirs in Isiolo and Garissa and rehabilitation of a slaughterhouse in Wajir at a total cost of Kshs 170 million.These are further expected to enhance employment and businessopportunities in the ASALs.In addition to the traditional commodity exports,the country ventured into external marketsfor beef products in the Middle East and Mauritius.
Disease and Pest Control for Crops and Livestock:
Disease and pest control in crops and livestock sub-sectors isbeing addressed through an integrated extension services and enhanced surveillance in collaboration with otherstakeholders.Outbreaks of major crops and livestock diseases were successfully contained during the last 5 years.The locust outbreak was quickly controlled in NEP before spreading to the South.
Livestock Branding:
During the last 2 years,the government identified a number of development interventions in theNorth Rift and Upper Eastern provinces aimed at improving the livelihoods of the pastoralists.Livestock branding andvaccination was one of the identified activities.A total of Kshs 75 million was used for branding activities in 2006/07FY in pilot districts where a total of 1.4 million heads of cattle were branded.A further Kshs 120,770,040 was releasedin 2007/2008 FY to complete the branding exercise in the pilot districts and extend the coverage to other cattlerustling-prone districts.This is expected to reduce cattle rustling and enhance traceability and promote livestock production and marketing.
Food Security:
Ensuring food security and eliminating hunger still remain a challenge for the country.More than 40per cent of the population lacks access to adequate food due to poverty.To deal with this problem,the governmenthas undertaken policy reforms to address poverty and food insecurity in a holistic manner.For instance,the FoodSecurity and Nutrition Policy (FNSP) has been finalised.One of the proposals in the policy is the development of aStrategic Food Reserve which will expand the current Strategic Grain Reserve to include other food commodities such as powder milk,rice,pulses,meat and a reserve (cash) fund.Over the next one year,the GCG is going to increase thecountry's Strategic Food Reserves from the current 4 million bags of cereals to 6 million bags.In addition,efforts havebeen made towards value addition including small scale processing of fruits and honey; detergent making andhousehold manufacture of body lotion and body oil.Production of traditional food crops have also been promoted toensure food security.
Agricultural Financial Services:
Access to financial services by farmers has increased significantly over the years.This is evidenced by the data from financial institutions such banks,the Agricultural Finance Corporation (AFC) andSACCOs which mobilise huge financial resources some of which is directed towards agriculture activities.Following itsrevival,AFC has increased its loan disbursement to farmers from Kshs 90.7 million in 2002/03 to Kshs 1.79 billion in2006/07.•
Irrigation:
It is estimated that intensified irrigation can increase agricultural productivity four-fold and depending onthe crops,incomes can be multiplied ten-times.Experience from other countries shows irrigation is a major driver ofagricultural productivity.Some water deficit countries have proved that co-ordinated development and utilisation ofirrigation does transform economic development.The Grand Coalition Government will in addition to rain fedagriculture promote irrigation based farming for both food and cash crops.Funding of irrigation and drainage hascontinued to grow over the period 2003-2007.As a result,most of the districts have implemented an average of twoprojects per year.For example,87 new schemes were constructed increasing the area under irrigation by 8,200hectares,16 irrigation schemes rehabilitated,131 new irrigation and drainage schemes identified,12,409 irrigationfarmers trained on irrigation water management,and 105 Water User Associations(WUAs) formed.•
Delivery of Extension Services:
Following the strengthening of agricultural extension service delivery thenumber of farmers reached per year increased from 1.0 million in 2003 to 2.1 million in 2007.Over the MTPperiod,measures will be taken to revamp the key extension institutions of Agricultural Training Centres (ATCs) and Agricultural Mechanisation Stations (AMSs) through rehabilitation and upgrading of facilities and equipment.•
Agricultural Inputs:
The use of inputs such as fertilisers,purchased seeds,and animal feeds has increasedsteadily over the last five years.The annual fertiliser demand increased from 329,449 tons in 2002/03 to 410,214tonnes in 2006/07.Production of certified seeds for various crops increased from 12,998 tons in 2002 to 34,682tonnes in 2006.The volume of imported seeds increased from 1,217 tons to 4,773 tons over the same periodrespectively.Prices of inputs increased steadily during the same period negatively affecting the returns to farmers.
4.2.2Emerging Issues and Challenges
The recent 2007 post-election political developments in the country have disrupted normal economic activities in manyparts of the country.The agricultural sector has not been immune to these economic disruptions as evidenced by lowerfarm production figures reported in the first two months of 2008.This has been compounded by increasing prices ofinputs especially fertiliser prices which could further affect agricultural productivity,and in turn food security efforts inthe short run.Moreover,key agro-processing industries have also reported difficulties in accessing key inputs andhence lower outputs during the same period.Other emerging challenges that will have a bearing on the sector are theescalating energy prices,increasing commodity prices in the world market and increased competition from otheragricultural producing countries.The agriculture sector is constrained by a number of factors such as:•
High cost of inputs:
This results in low application of fertiliser and certified seeds which thereby affectagricultural productivity; Land use in agriculture:
There has been over-subdivision of land into uneconomic units in some parts of thecountry while other land parcels in the possession of large scale farm holders remains unutilised;•
Limited application of agricultural technology and innovation:
Many farmers lack adequate capital to adoptto new technology or apply recent innovations in agricultural research;•
Weak farmer institutions:
A number of agricultural cooperatives,have experienced mismanagement therebyresulting in the collapse of many of such institutions;•
Poor livestock husbandry practices;
•
Limited extension services:
This has resulted from an over-reliance on public extension services,coupled withlow funding of the service;•
Over-dependence on rain fed agriculture:
This implies that any poor weather condition will inevitably causeheavy drops in production,famine and death of livestock;•Inadequate exploitation of Value Addition.This confines Kenya to low value of exports.Lack of Value Addition alsorobs Kenya of the opportunity to increase the shelf life of products;•
Inadequate Credit facilities:
Due to insufficient funds,many farmers have no funds to invest in improving theiragricultural productivity;•
Low marine fish exports:
There has been low exploitation of the potential of the EEZ resulting in low sea fishexports.Moreover,there is inadequate capacity to monitor unauthorised exploitation of the EEZ.The above challenges are further exacerbated by a weak institutional and legal framework; poor post harvest handling;lack of market driven production; poor handling of the supply chain of the finished products; and limited access ofBusiness Development Services (BDS) by farmers.
4.2.3Projects and Programmes
In an effort to reverse the decline,and fastrack growth efforts within the Agriculture sector,the following projects andprogrammes will be undertaken:
One Year Recovery Programmes
•Continue meeting the basic food needs of resettled families and any IDPs who might be in the camps;•Fast track efforts in supporting the resettled families as well as the neighbouring families with farm inputs suchas seedlings,fertilisers and equipment;•Enhance peace building,reconciliation and provide psycho-social support in order to rebuild trust among thewarring communities and in particular,farming and pastoralist communities;•Strengthen the capacity of agriculture-based institutions and support farmers through concessionary loans;•Replacement of damaged government equipment such as motor vehicles and re-building of damaged office blocks;•Develop and support business development services to link affected farm families,fishermen,livestock farmersand traders with financial institutions and access to market;•Double the Strategic Grain Reserves from the current 4 million bags to 8 million bags in the next one year andexpand it to include other food commodities such as powdered milk,rice,pulses,and a reserve (cash) fund.
Other Programmes for 2008 - 2012
•Enhance knowledge and skills of farmers and extension staff through training and sharing knowledge etc.Thiswill be aimed at empowering farmers to take and appreciate farming as a business;•Transform agriculture,from a low-income,low-efficiency and low technology sector into a vibrant modern sectorsupporting value-addition through scientific and technological innovation,improved extension services,credit and insurance programmes.This will be complemented by the establishment of more agro-processing industries inrural areas in addition to the urban ones;•Enable Kenya to become a regionally and internationally competitive provider of agricultural products,by raisingthe quality and supply of these good,as a way of increasing producer incomes and quality of life;•Support the establishment of crop and livesock insurance scheme;•Exploit the agriculture potential in ASAL areas by putting an additional 600,000 hectares under irrigation.Specifically,the amount of land under irrigation will be increased by 30 per cent by establishing additional 25small-scale irrigation schemes throughout the country and several large-scale irrigation schemes mainly in theTana River,Athi River,Mwea,Yatta,Nyando,and Nzoia basins;•Enhance the capacity of Districts in food security and livelihood assessment,to equip them with skills oncontingency planning,early warning system and response;•Enhance data collection,analysis and dissemination including sharing among key stakeholders;•Enhance monitoring and evaluation at all levels;•Work towards making fertiliser and other key inputs affordable to poor farmers; and•Initiate privatisation of commercial parastatals such as the sugar companies.
Flagship projects for 2008 - 2012
Enactment of the Consolidated Agricultural Reform Bill:
The legal framework will need to be reviewed,updatedand harmonised to rationalise contradictory development,regulatory,licensing,processing,lobbying and marketingroles of agricultural parastatals.The bill will also set up industry development funds and dispute resolutionmechanisms.The regulatory agency to be set up will balance the needs of producers,processors and consumers.Thereforms will increase operational efficiency,reduce marketing costs and increase the role of producers in theseorganisations.The legal reforms will lay the basis for the implementation of institutional reforms necessary to achievethe
Vision 2030
goals for the sector.
Fertiliser Cost-reduction Investment:
This project will be implemented through a three-tiered fertiliser cost-reductionprogramme involving purchasing and supply chain improvements in the market for this input and the blending and localmanufacturing of fertiliser.Working with the private sector and reviewing farmers institutions' ability to import anddistribute fertiliser in bulk,will be the initial steps in the programme.The fertiliser cost reduction project/programme willrequire capacity building of farmers and farmer's organisations; efficient fertiliser ordering and distribution process,andprovision of warehousing to address the inefficient and costly fertiliser importation and distribution structure that iscurrently in place.Efforts to reduce costs of other inputs will follow.
Establishment of Disease-Free Zones:
This will involve improvements in vaccination and disease control through astrengthened veterinary department,movement controls,and investments in livestock breeding,range improvements,andmarketing infrastructure to raise the quality,quantity and value of processed meat animals that Kenya can export.Kenya'smilk exports will also benefit from enhanced disease control measures in the highlands.
Land Use Master Plan:
A National Land Use Master Plan will be developed with Agriculture Land Use Master Plan aspart of it.The Master plan will enable efforts targeted at efficient utilisation of all forms of land.
ASAL Development Project:
This project will initially be implemented in the Tana and Athi River basins to bringbetween 600,000 - 1,000,000 Ha.under irrigation.
Key Supportive Initiatives
The flagship projects enumerated above will be supported by the following nine key supportive initiatives:
Agricultural research and development:
enhanced collaboration and coordination among research and educationinstitutions to increase efficiency and create stronger linkages between researchers and farmers.Increased emphasis willbe laid on research on irrigation,biotechnology and products suitable for production in the ASALs.Increased investmentin agricultural research is expected to contribute significantly to reducing the cost of food production in Kenya.
Extension services:
a more holistic approach will be adopted to agricultural extension that involves government alongwith the private sector,NGO's etc in provision as well as more extension linked to markets and value addition will beadopted.Technologies to reduce post harvest losses and support value addition will also be introduced and promoted.
Transformation of parastatals and producer organisations:
to upgrade the performance of agricultural parastatals,commercial ones will be privatised; government will strengthen and consolidate regulatory functions; and producers willbe given increased voice and participation in the governance of industry bodies aiming to develop sectors andcommodities.Government will help strengthen producer organisations in commodities where they are weak or nonexistent.Formation of these organisation will particularly be encouraged in marketing of inputs.
The Cooperative Sector:
strengthening governance and technical capacity of cooperatives for better performance andto be able to play the important roles laid out for them in connecting farmers to markets in the wholesale and retailsection of
Vision 2030
.The government will also ensure better enforcement of the Cooperative Act,and encouragementof community based organisations and groups to transform into cooperatives.
Seed and breed quality improvement:
for traditional crops and animal species.High yielding but disease resistantvarieties will be a priority in the pastoral and other dry areas.The government will intervene towards multiplication ofquality crops seeds such as sorghum,legumes,millet,cassava,potatoes,among others,that cannot attractcommercial seed companies.
Test,promote and distribute low-cost irrigation technology:
This will be carried out in large schemes on the Tana,Nyando and Nzoia rivers as well as small scale schemes and establishment of livestock feed reserves
Undertake livestock initiatives:
This will include livestock breeding programmes; range improvements,improvingaccess to veterinary drugs and artificial insemination services,livestock marketing; value addition; establishment oflivestock feed reserves and infrastructure development.
Reorganisation of agricultural investment and export promotion agencies; Plan for development of identified idle lands in high potential and ASAL areas; Legal,regulatory and institutional reforms; Improving access to farm inputs:
post harvest handling,and efficient management of the supply chain,valueaddition,Business Development Services and access to markets;
Promoting the growing and consumption of traditional foods:
This will incorporate them into the national foodsecurity programme;
Fast track efforts towards empowering farmers through participatory grassroots stakeholders' forums: Such areas as technologies and technology uptake,provision of credit inputs,post harvest handling,supply chainmanagement and access to markets;
Agricultural Financial Services:
Measures will be taken to modernise and encourage farmers to adopt agriculture asa business.Institutions and mechanisms for supporting agriculture as a business,including access to financialsservices,agricultural information services will be enhanced.
4.3Wholesale,Retail and International Trade
"A Formal Sector that is Efficient,Multi-tiered,Diversified in Product range and Innovative"
Trade sector has been identified to play a crucial role towards attainment of national development objectivesincluding the Millennium Development Goal (MDG) number one on Eradicating Extreme Poverty and Hunger; andgoal number eight on Developing Global Partnerships for Development.Trade sector comprises five main economicareas namely:distribution and wholesale trade,retail trade,international trade,informal trade,trade in services andelectronic trade (e-trade).Wholesale and Retail trade is one of the key sub-sectors in the economic development agenda of Kenya which isexpected to expand substantially as the economy moves towards a 10 per cent growth target.Informal and formaltrade in Kenya accounts for approximately 10 per cent of GDP and 10 per cent of formal employment.Wholesale,retailand international trade has been among the most rapidly-expanding sub-sectors of the economy since the introductionof trade liberalisation in the 1990s.Formal trade tends to be more efficient and provides more permanent high quality jobs,which is what most Kenyan job seekers require.Most of the employment in trade is found in the informal sub-sector,which refers to businesses that are not registered bythe Registrar of companies.This sub-sector is characterised by ease of entry and exit; reliance on indigenous resources;family ownership; small scale operations; labour intensive and adaptive technology; skills acquired from and outside of theformal sector; and unregulated and competitive markets,among others.These enterprises are found in every part of thecountry and have great potential for creating a variety of jobs while generating widespread economic benefits.On the other hand,international trade comprising both import and export of both goods and services is crucial as aninstrument for economic growth.Kenya's exports remain concentrated both in traditional market destinations andprimary products,with Common Market for Eastern and Southern Africa (COMESA) being the leading marketdestination for Kenyan products,accounting for an overall market share of 69.7 per cent in 2006.Other marketdestinations for Kenya products include the East African Community (EAC),European Union (EU) among others.Lastly,Trade in services refers to the sale and delivery of intangible product called a service between producer and consumer.Recent trends show faster growth in trade in services and the significant role it plays in the national economy.
4.3.1Situation Analysis
The contribution of the wholesale and retail trade to the GDP grew by an average of 10.3 per annum between 2003and 2006.The value of domestic trade grew at an annual average of 16.5 per cent over the same period.Currently,trade in services accounts for 60 per cent of the GDP,and 68 per cent of total wage employment in Kenya.The informalsector provided 78 per cent of total employment and contributed 87 per cent of new jobs created in 2005/06.It isestimated that the sector contributes approximately 18.4 per cent to the GDP.The value of exports of goods and services rose from Kshs 244.5 billion in 2002 to Kshs 412.4 billion in 2006.Although the export market remains dominated by primary commodities,new sectors have emerged such as Horticulture,particularlycut-flowers; and fish and fisheries sectors are now major export earners and have created several job opportunities.During the ERS period,the National Export Strategy (NES) whose focus was on export diversification was initiated andimplemented.The Strategy made it possible for exports to grow at 11.4 per cent between 2003 and 2006 and hencesurpassing the planned annual target of 5.7 per cent.Again during the same period,partnership with the private sectorwas expanded and strengthened following which several trade fairs,trade missions and market surveys weresuccessfully undertaken.In addition,the
Private Sector Development Strategy (PSDS)
whose objective was to catalysegrowth and competitiveness of the sector was developed and launched in 2006.In 2005,the Investment Promotion Act was enacted establishing the Kenya Investment Authority,a One-Stop Shop forboth local and international investors.In addition,the government streamlined the business regulatory environment tofurther improve Kenya's investment environment to spur growth of businesses and investments.Consequently,adetailed review of 1,325 trade licenses which resulted in the rationalisation of 694 licenses,elimination of 424 licensesas well as the simplification of another 607 was successfully undertaken.The regulatory reforms,led to the formationof the business regulatory business unit (BRRU),a custodian of a e-Registry of licenses,both which were launched inNovember 2007.The unit is expected to deepen business regulatory reforms in Kenya easing the cost of investmentin the country.Further,an Anti-counterfeit Goods Bill,which will be enacted by the 10th Parliament was drafted.Inaddition,Kenya under the EAC configuration signed the Interim-EAC-EU Economic Partnerships Agreement (EPA) withthe European Union (EU) in 2007 to sustain the preferential market access to the EUmarket until a final agreement isreached.
4.3.2Emerging Issues and Challenges
Post Election Violence:
Following the post election violence,several business stalls,shops,supermarkets and kioskswere vandalised or gutted down by fire in Nairobi,Nyanza,Rift Valley and Coast Provinces.Some parts of CentralProvince and Western province were also affected.These slowed down or reversed the growth of businessesparticularly the small and medium enterprises (SMEs).
Weak Business Regulatory Framework:
this is as a result of high cost of doing business,centralised businessregistration,influx of counterfeit,substandard and contraband goods in the market,inappropriate trade regulatoryregimes,Furthermore,most business enterprises are highly fragmented and operate informally and hence hashindered their vertical growth to link them with mainstream businesses.
Infrastructure:
Majority of traders operate from temporary premises or work sites with no basic facilities andamenities.There are poorly maintained roads and general environment within the market centres,inadequate watersupply,Lack of and/or high cost of energy,Inadequate and poorly serviced business premises.In addition,the sectoris faced with inefficiency in the supply chain due to poor infrastructure,highly fragmented distribution and retail outletsleading to wastages and price escalation of goods and services.
Market Access:
Constraints to market access include; weak mechanisms for implementing and enforcing the 30 percent preferential access to public procurement,lack of trade support infrastructure such as trade centres orwarehouses in priority export markets,low access to international markets due to stringent standards,Inadequatediversification of exports and value addition of products due to tariff peaks and escalation of tariff barriers and technicalbarriers to trade despite continued participation in the multilateral,regional and bilateral trade agreements,decliningvalue of preferential trade schemes as a result of trade liberalisation,lack of comprehensive trade information on theexisting and,emerging markets ,market and product diversification and inappropriate backward and forward linkages.
Business skills development:
Majority of traders are not able to expand,and sustain local and international businessopportunities due to lack of sound managerial skills and exposure to international best business practices; andinadequate understanding of legal requirements relating to international contracts and procurement requirements.
Low utilisation of Information and Communication Technology (ICT):
In spite of the opportunities associated withthe use of ICT,the level of its utilisation in the sector is low.This has hampered adoption of e-Trade as a platform forpromotion of trade particularly trade in services that is highly dependent on the development of ICT.
Low capacity in Market development
:The growth and development of trade depends on the existence of a vibrantmarket for products and services.However,the market is hampered by low demand,unfair competition fromcounterfeit,substandard and contraband goods.Moreover,linkages between the informal traders and the formalsector are either weak or non-existent.
Limited Access to Finance and Credit:
Access to affordable trade finance and credit facilities are crucial to thegrowth and development of wholesale and retail trade.Further,limited access to affordable credit facilities,guaranteesand credit rating agencies,venture capital coupled by limited financial services in rural areas,and requirement forcollaterals to access credit have all continued to inhibit the expansion of the sector.
HIV and AIDS:
HIV/AIDS remains a challenge to trade development in Kenya due to high morbidity and mortality ratesand slows the growth of businesses as a result of high expenditures on treatment rather than business expansion.
4.3.3Projects and Programmes for 2008 - 2012
Flagship projects,one year recovery strategies and programmes have been identified for implementation in the initialyear and the entire MTP period.They are therefore expected to accelerate expansion of trade in the short and mediumterm respectively as shown below:
One Year Recovery Strategy
•Commission a survey to determine the number of establishments affected by the post election crisis;•Re-build affected business infrastructure and restore investor and donor confidence;•Scale up linkages and networks with Kenyans in the Diaspora;•Initiate and support a Marketing Strategy for the sector;•Facilitate the establishment of industrial clusters as seedbeds for innovation,business incubation and businessdevelopment support services;•Encourage establishment of procurement programmes within KAM,KNCCI and KEPSA;•Create a conducive licensing and regulatory framework and decentralise these services to the district level; and•Streamline and integrate informal sector into the mainstream production system.
Flagship Projects for 2008 - 2012
•Build one free trade port in Mombasa;•.Create at least 10 hubs and 1000 -1 500 Producer Business Groups with a pilot project in Maragua to be extendedto other regions;•Build at least 10 tier one market with a pilot project in Athi River,and construct whole and retail hawker's marketin selected urban areas;•Develop and institutionalise capacity building and training programmes on technology and business procurementnegotiations skills for the traders associations and their members; Business linkages and subcontracting programme through Public Private Partnerships (PPP);•Support and promote the development of cooperative Organisations to market their produce directly,therebyshortening supply chains,achieving economies of scale and reducing consumer prices while increasing producerearnings; and•Establishment and strengthening of informal traders associations to form SACCOs for enhancing savingsMobilisation in order to provide affordable finance and enhancement of management of the existing SACCOs.
Other Programmes for Implementation in the Period 2008 - 2012
•Training members of informal traders' associations on procurement procedures;•Strengthening capacity of the institutions that deal with verification and certification of standards to meetinternational standards,improving packaging and develop brands,establishing marketing and distributionchannels in foreign markets,strengthening e-business capacity for enterprises,establishment of an exportdevelopment fund and guarantee scheme to cover risks faced by exporters,and facilitate export marketdevelopment;•Creating conducive licensing and regulatory framework by decentralisation of business registration to the districts.•Establishment of markets and distribution channels in foreign markets;•Establishment and strengthen export credit guarantee schemes to cover risks faced by exporters,and facilitateexport market expansion;•Strengthen capacity of the institutions involved in trade development and negotiations;•Establish incentive programmes such as export performance award to facilitate penetration into new markets.•Establish commercial offices,exhibition centres and warehouses in the identified strategic foreign markets suchas COMESA and Asian Markets to increase visibility of Kenya's products;•Undertake market surveys and develop networks to provide trade intelligence in the targeted markets;•Establish a network with Kenya's Diaspora to assist in marketing Kenya's products;•Establish centre for product development and adaptation to facilitate graduation to higher value added activitiesthrough branding,adoption,packaging and new designs;•Establish an export development fund to promote product development,value addition,market development anddiversification;•Establish a coordinated framework to facilitate development and promotion of targeted service sub-sectors;•Develop an E-Trade policy and integrate it in all public and private sector institutions of higher learning and tertiarycolleges;•Review the legal and institutional frameworks relating to market infrastructure development;•Strengthen quality assurance institutions to ensure that imports,exports and all goods sold in Kenya are to thehighest international standards and prevent dumping of products;
4.3.4Policy,Legal and Institutional Reforms
The government will initiate key reforms to strengthen the already existing legal and institutional framework byaddressing the following key areas:•Fastrack the development and implementation of the Public Private Partnership Policy;•Fastrack the establishment of decentralised/ networked one-stop shop for registration licensing and taxation;•Enact a Trade Development Act to provide an institutional framework for monitoring of the trade sector;•Promote formalised business linkages between traders and manufacturers;•Establish Credit guarantee schemes from the mobilised savings by micro-finance institutions;•Establish a mechanism to monitor trade trends,and negotiations skills as well as strengthen trade supportinstitutions (TSIs) to analyse and to disseminate trade information to exporters; Establish marketing and distribution channels in foreign markets;•Establish an Exports Development Fund and guarantee schemes to cover risks faced by exporters,and facilitateexport market development;•Establish Commercial offices in the identified strategic markets;•Establish a network with Kenya's Diaspora to assist in marketing Kenya's products; and•Formulate a National Market development Policy.
4.4Manufacturing
"Robust Diversified and Competitive Manufacturing Sector"
The role of the manufacturing sector in
Vision 2030
is to support the country's social economic development agendaby creating jobs,generating wealth,and attracting Foreign Direct Investments (FDI).In addition,the sector will continueto provide impetus towards achievement of the Millennium Development Goals (MDGs) in both the medium and longterm,particularly goal one on Eradication of Extreme Poverty and Hunger and goal eight on Global Partnerships forDevelopment.Over the Medium Term Plan (MTP) period 2008–2012,the overall goal of the sector is to increase itscontribution to Gross Domestic Product (GDP) by at least 10 per cent per annum.To achieve this,the followingobjectives will be pursued:•Strengthen production capacity and local content of domestically-manufactured goods;•Increase the generation and utilisation of Research and Development (R&D) results;•Raise the share of products in the regional market from 7 to 15 per cent; and•Develop niche products for existing and new markets.
4.4.1Situation Analysis
The implementation of the
Economic Recovery Strategy
(ERS) 2003-2007 resulted in improved performance in themanufacturing sector.The contribution of the sector to GDP has remained at about 10 per cent over the ERS period.The sector grew by an annual average of 5.5 per cent between the period 2003 and 2007.In 2007,1.88 million peoplewere employed in both the formal and informal sectors.Employment within the formal manufacturing sector grew byan annual average of 2.6 per cent between 2003 and 2007.The proportion of employees in formal manufacturing tototal employees in the sector averaged 15.7 per cent between 2003 and 2007.During this period,the investment code was developed,through the Investment Promotion Act of 2004,to improve theinvestment environment.Similarly,the Kenya Investment Authority Act was enacted in 2006 to provide a 'one-stop-shop' for licensing and registration of businesses.In addition,8 of the identified 52 sites were established withinvarious local authorities to facilitate development of basic infrastructure for Small,and Medium Enterprises (SMEs) toserve as incubators.The Private Sector Development Strategy (PSDS) was formulated in 2006 to promote theparticipation of the private sector.Partnerships with the private sector have been enhanced through formation of SectorWorking Groups (SWGs),inter-ministerial/Stakeholders forums and task forces.Further,the National Exports Strategy (NES) was formulated to improve competitiveness of the sector.NES has assisted indeepening of markets for manufacturers in traditional markets and expansion into new markets.In implementing NES,thegovernment and United Nations Industrial Development Organisation (UNIDO) implemented Phase 1 of the Kenya IntegratedProgramme (KIP) whose objective was to help increase productivity,develop productive capacities in the Leather,Apicultureand Fish processing with high export potential.The programme that ended in 2006 resulted in a National Study onapiculture; study report on value chain analysis of the Leather and Leather products and strengthening some relatedinstitutions; and regulations on quality and safety of fish products as well as capacity building of stakeholders in the sector.
This has increased production,improved earnings and conformity to international standards in the identified sectors. A National Industrial Policy was prepared in line with the
Vision 2030
to guide the development of the manufacturingsector which takes over from the Sessional Paper No.2 of 1997 on Industrial Transformation to the Year 2020.Similarly,a Master Plan for Kenya's Industrial Development (MAPSKID) has been developed and will provide the roadmap fordevelopment of the industrial sector.The priority sectors identified in the MAPSKID include Agro-processing; Agro-machinery; Electrical and Electronics/ICT.In addition the Sessional Paper No.2 of 2005 on Development of MSEs wasprepared to provide a framework to stimulate the growth of MSEs and contribute towards employment creation andpoverty alleviation.
4.4.2Emerging Issues and Challenges
Post Election Violence:
The post-election violence,witnessed during the first two months of 2008,adversely affectedthe sector by disrupting the whole production and supply chain.At the same time,there was destabilisation of thefactors of production that include land,labour and capital (stock and equipment).Access to raw materials and supplyof goods was disrupted.Investors and the labour force were also affected due to destruction,burning of businessesand labour displacement from the affected areas leading to reduced capacity utilisation.Fuel and electricityinterruptions further impacted on the sector negatively.As a result of security concerns,most manufacturers wereforced to hire extra security and this increased the production and distribution costs.The perception of Kenya in theworld as a regional economic hub was severely damaged resulting to low investor confidence.
Low Value Addition and Narrow Export Base:
Most industries are still engaged in the production of low value-addedand limited range of products due to limited technological capability and limited information on international tradeopportunities.These factors have contributed to limited scope for product diversification and expansion of exportsbase.The narrow product range and focus on few markets have restricted the growth of Kenya's exports.This hashindered expansion of manufacturing activities.Kenyan industries have not effectively kept pace with changingconsumer demands and level of competition international markets.
Underdeveloped and/or Dilapidated Transport Network:
The poor and dilapidated state of infrastructure in Kenyahas led to low productivity,high production and distribution costs and uncompetitive products and services.Further,the road networks in Kenya are concentrated in a few urban areas,with limited feeder roads in regions with resourcesendowments.This has resulted in the agglomeration of industries in areas with good road networks thus furthercreating disparities in regional industrial development.
Inadequate,Costly and Unstable Supply of Energy:
The cost of production is high due to inadequate and costlysupply of energy which is higher than main competitor countries.In areas with abundant resources,investors arecompelled to provide alternative sources of power supply or relocate to areas where power is already available at theexpense of incurring additional transportation costs.The unstable power supplies have caused investors to installpower regulators and/or large stand-by power generators at the expense of investment in actual productive activities.
Low adoption of Information and Communication Technology (ICT):
The low levels of penetration and high cost ofICT infrastructure has hindered access and usage leading to low access to markets and technological information andincreased costs of marketing and communication.
Overlaps and ambiguity in Mandates and Functions:
Lack of clear boundaries in the institutional mandatesand functions have caused distortions in the value chain,weak sectoral policies,overlaps and conflicts in policyimplementation.For example,sugar milling,tea and coffee processing are manufacturing activities currentlyintegrated in agricultural production under the Ministry of Agriculture while fish and fish products,meat,meatproducts and leather processing are also manufacturing functions under the Ministries of Livestock and Fisheries Development.These ambiguities have been detrimental to the development of the sector in terms ofimprovement of manufacturing and marketing efficiencies.
Low Technology,Innovation and R&D Uptake:
The culture of embracing technology,innovation and R&D in thesector is low and hinders its growth.In addition,there is lack of institutionalisation of incentives for promotion andefficient use of existing knowledge,creation of new knowledge and flourishing of entrepreneurship activities which willincrease the capacity and competitiveness of local enterprises.Low capacity for Intellectual Property Rights is anotherdisincentive to innovation in the manufacturing sector.
Weak Legal,Regulatory and Institutional Frameworks:
Registration of businesses (incorporation/business name) isstill centralised in Nairobi.Though efforts have been made to simplify the local authority licensing through the singlebusiness permit,the permits are still costly and encumbered with inappropriate implementation mechanisms.Inaddition,there is lack of capacity within the judiciary to handle e-trade related litigations.
Influx of sub-Standard,Counterfeits and Contraband Goods:
The entry into the local market of sub-standard,counterfeit and contraband products has serious impact on the manufacturing sector.While manufacturers spendmoney in advertising,the presence of counterfeit goods is a major impediment hence reducing their market share.Counterfeit trade has also discouraged innovation efforts and reduced government revenue base.Further,substandardand counterfeit goods are a health-hazard to the consumers..
Inadequate capacity to meet Quality and Standards Requirements:
Rapidly changing consumer needs,preferences and quality requirements,both locally and internationally are creating a strain for many Kenyanmanufacturers,especially the MSMEs.ISO Certification can guarantee international competitiveness.However,thecapacity of many Kenyan manufacturers to undertake and implement ISO Certification requirements is low.In addition,the capacities of certifying Organisations are weak and the process of certification is still too costly to many firms.
Limited Access to Financial Services:
Lack of access to formal financial services such as credit products and tradeguarantees have inhibited the competitiveness and growth of MSMEs both in rural and urban areas.In addition,insurance premiums are generally too high and unaffordable to most businesses.The current financial productsavailable are mainly short and medium terms loans; however,industrial development requires long term financing.Thishas limited the availability of finance for industrial development.Besides,the level of interest rate spread is high as aresult of provision for Non-Performing Loans and administrative costs.This has increased the cost of doing business.
Limited Production and Managerial Skills:
Strategic management and technical skills are not developed in a well-structured and coordinated manner and are virtually absent in MSMEs.There is also a mismatch between the availabletechnical skills and market demands due to poor linkages between training institutions and the industry.ManyOrganisations have not yet appreciated productivity improvement strategies such as ISO,Kaizen,5S (Separating,sorting,shine,standardising,sustaining),5C (Classify,configure,check,conformity,customise) energy efficiency and other relatedactivities.Within the MSMEs,productivity improvement strategies are still unknown.Many Organisations still focus on costreduction measures such as downsizing,and elimination of non-core services rather than productivity improvement.
4.4.3Projects and Programmes for 2008 - 2012
One Year Recovery Strategy
•
Emergency Business Recovery Programme:
An Emergency Business Recovery Programme will be set upwithin the framework of the Private Sector Development Strategy in order to support manufacturing entities thatwere adversely affected by the post election crisis after a proper identification process has been carried out.
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THE ECONOMIC PILLAR
•
Promotion of small scale firms:
Issues of stagnation of small scale firms,securing of property rights andsecurity of tenure,costs associated with entry,expansion and exit regulations,notably securing a license,tax andlabour law compliance will be addressed as a matter of priority in order to ensure that in the long term thesebusinesses graduate to large formal companies.
Flagship Projects for 2008 - 2012
Development of industrial and manufacturing zones:
The initial pilot for the Special Economic Cluster (SEC) will beset up in Mombasa to allow for easy importation of necessary raw materials and exporting of finished goods.Theproject will include an agro-industrial zone incorporating activities such as blending and packaging of fertilisers,teasand coffees,and a consolidated meat and fish processing facility to encourage growth of offshore fishing.The secondSEC will be located in Kisumu to allow for access to regional markets and availability of limestone to support cement,chemicals and metals industries; agro-processing through increased horticultural production along the lakeshore.
Development of at least five SME industrial parks and specialised Economic Zone in key urban centres:
A pilotmetal SME park will be located in Nairobi due to the proximity to most important markets.A pilot agro-processing SMEpark will be located in Eldoret because of the location in high potential agricultural area and access to an airport.A secondagro-processing SME park which targets processing of fruit juices and vegetables oils will be located in Mombasa. Another SME park will be located in Kisumu for agro-processing of vegetables,horticulture,fish processing,and fruitprocessing.The fifth SME Park will be located at Nakuru for meat processing (with tannery).
Other Programmes
The following Programmes have been identified in addition to the flagship projects for implementation in the period2008 to 2012:•Product and market diversification and development programmes;•Research development and commercialisation programmes;•Create an MSME research and development,risk and venture capital fund;•Create a Business and Technology Incubation Programme to include an incubation Fund;•One village one product; and•4 K (KEBS,KIRDI,KIPI,KNFJKA) MSE 2030 initiatives Project.
4.4.4Policy,Legal and Institutional Reforms
The policy and legal reforms to be undertaken during the 2008-2012 period include;•
Legal Institutional Framework:
Enact a legal and institutional framework to harmonise regulations dealing withmanufacturing and other sectors and eliminate overlaps in functions across Ministries dealing withmanufacturing.This is to be done by enactment of a National Industrial Development Act.•
Counterfeits and Contraband goods:
Fast track the enactment of the Anti-counterfeit Act.•
Appropriate Regulatory Framework:
rationalise business licensing and an efficient regulatory framework tofacilitate doing business.Further there will also be need to harmonise the operations of the regulating bodieswithin the East African Community (EAC) region particularly with regard to product standards.•
rationalise Taxation and Eliminate Duty Anomalies:
Simplify tax administration to be responsive to the changing business environment.Initiate continuous review of the EAC commodity classification to ensure thatthere are no duty anomalies.•
Competition Law:
Review of the Monopolies and Price Control Act (1989) will be fast tracked with a view tostrengthen the institutional framework as well as providing for close consultation between the sector regulatorsand the Commissioner for Monopolies and Price Control on all matters appertaining to competition.Similarly,alegal mechanism will be provided for close consultation between the sector regulators and the Commissioner forMonopolies and Price Control on all matters of competition.•
Consumer Protection:
A Consumer Protection Act will be enacted to create a national consumer protection bodyto undertake consumer advocacy,education and ensure effective consumer protection.
4.5Business Process Outsourcing
"To be a top off-shoring destination in Africa"
Business Process Outsourcing (BPO) is an emerging and growing sector expected to become the sector of choice foremployment among the youth and young professionals.The country will thus quickly establish the necessary capacityfor BPO to flourish and catch up with other destinations in Africa.Business Process Outsourcing (BPO) involves thetransfer of non-core business processes along with the associated operational activities and responsibilities to a thirdparty with at least a guaranteed equal service level.
4.5.1Situation Analysis,Emerging Issues and Challenges
In Kenya,the BPO sector is a small,new,but growing part of the economy.It currently account for less than 0.01 percent of GDP,500 seats and 1,000 employees.In a day,one seat can support more than one worker depending on thenumber of shifts per day.The global BPO sector however is large and growing rapidly.Kenya plans to take a portion ofthis market.In doing so it has a comparative advantage due to quality education,volume of people trained in variousforeign language skills and a time zone that aligns her to those of major global economies.In this regard,the sectorwill be targeted to ensure Kenya diversifies her service and product offering in the global market.The government has in the past undertaken various measures to improve the BPO sector performance.Key amongthem is development of a comprehensive national ICT policy launched in 2006 with a main objective of making Kenyaan ICT hub and a premier location for Business Process Outsourcing (BPO) in Africa,the establishment of the ICT boardand the launching of the East African Marine Cable Systems (TEAMS) project among others.Key challenges facing the sector are:•Poor telecommunication infrastructure leading to high costs.Data transmission costs in Kenya are three timesmore expensive than those of its competitors;•The high cost and unreliability of energy supply.For instance,energy costs are twice as expensive as those ofother BPO destinations,such as India and the Philippines.•Lack of dedicated BPO facilities which weaken the attractiveness of Kenya as a primary BPO destination.•Inadequate supply of necessary skills.•Poor local supplier base of the necessary hardware and software•No targeted incentives for BPO apart from those at the standard Export Processing Zones (EPZ)
4.5.2Programmes and Projects for 2008 - 2012
Since ICT infrastructure is important for the Business Process Outsourcing (BPO),there is a need to modernisetelecommunications infrastructure and provide internet access to majority of citizens.However,this is only possible if theeconomic,political and social environment is conducive.Specifically the government will undertake to complete theTEAMS,National Optic Fibre Backhaul Initiative (NOFBI),and Kenya Transparency Communication InfrastructureProgramme (KTCIP) projects and also empower the ICT Board to develop content and market Kenya as a BPO destination.The country will strive to increase its infrastructure and connectivity to the international market,and put in placemeasures to improve technical skills.To realise the five-year goal of creating more than 20,000 direct BPO jobs and ofincreasing its contribution to GDP by Kshs 10 billion the projects specified under the ICT foundation sector will beimplemented.In addition and more specifically,a BPO park will be established and supportive initiatives will beimplemented within the period 2008-2012;
Establishment of a BPO Park
A state-of-the-art BPO Park will be constructed at Athi River Export Processing Zone.The aim is to provide superiortelecommunications infrastructure,easy access to international transport facilities,and affordable and readily availableenergy which are critical for a competitive BPO industry.
Marketing campaigns
Undertake study to determine the existing opportunities and proactively promote BPO in the targeted geographicalmarkets.This will be done through developing and launching a focused marketing programme through the country'sforeign missions,trade commercial attaches and media.
Training Programmes
Targeted training programmes around primary processes (e.g.customer contact) and industry specifics (e.g.back-office data entry within financial services) will be conducted to build the required quality and size of the talent pool.Best practice processes and culture will also be cultivated.
BPO Incentive Framework
A comprehensive set of incentives will be designed and implemented to improve the attractiveness of Kenya as a BPOdestination and to encourage investments in this field.This therefore calls for the development of related incentiveframework.The framework will define the kind of incentives to be offered to the BPO sector,the stages of theapplication of the incentives,and the period in which it is to be offered.One such incentive that is already in place isthe subsidisation of bandwidth costs through financing from the World Bank.
4.5.3Policy,Legal and Institutional Reforms
BPO and Contact Centre (CC) Policy
The BPO and CC policy will guide the operations of the BPO and CC and set a framework that will guide the growth ofthe BPO sector.
4.6Financial Services
"A vibrant and globally competitive financial sector driving high levels of savings and financing Kenya's Investment need"
A well-functioning financial system is critical to accelerating economic growth.It will also ensure macroeconomicstability as well as promote private sector development,which in turn will generate employment opportunities andreduce poverty.A sound financial sector will also encourage Foreign Direct Investment (FDI),safeguard the economyfrom external shocks as well as propel Kenya to become a leading financial centre in Eastern and Southern Africa.
4.6.1Situation Analysis
The Financial Services Sector (FSS) in Kenya comprises of Banking,Insurance,Capital Markets,Pension Schemes andQuasi-banking institutions such as:Savings and Credit Cooperative Societies (SACCOs); Microfinance Institutions(MFIs); Building Societies,Kenya Post Office Savings Bank (KPOSB); Development Finance Institutions; (DFIs) andinformal financial services such as Rotating Savings and Credit Associations (ROSCAs).
Banking Sector:
The Central Bank of Kenya provides the overall supervisory and regulatory services to financial institutionsin the country.The banking sector had a buoyant performance over the ERS period (2003-2007) with assets increasing by99 per cent from Kshs 457 billion to Kshs 908 billion.During this period,banking institutions increased their credit extensionto the economy by Kshs 116.1 billion between the end of 2002 and the end of 2007; banking institutions introduced newfinancial products that are increasingly relevant to small enterprises and low income households; lending by banks toagriculture increased by Kshs 8.5 billion with some Kshs 1.7 billion being extended to medium and long-term borrowers;and interest rate spread has declined from 13.4 per cent in 2002 to 9.1 per cent in 2007. According to the Financial Access Survey 2007,by FSD Kenya,the banking sector serves only 19 per cent of Kenya'sbankable population with 8 per cent being served by other financial services providers such as MFIs and SACCOs.38per cent are totally excluded and 35 per cent rely on informal financial services providers such as the ROSCAs.Theindication is that access to financial services outside the main cities still remains limited.
Insurance Sector:
The insurance industry premium income recorded Kshs 41.5 billion in 2006 placing Kenya's insuranceindustry at position 71 worldwide and position 4 in Africa in premium volumes.Premium volumes were Kshs13.2 billionfor life and Kshs 28.4 billion for general insurance ranking them 63 and 72 on premium volume worldwide.The penetration ratio,measured as a percentage of GDP,has remained constant at 2.5 per cent over the last three years,which compares well with the average for emerging economies at 2.7 per cent of GDP but is well below the 9.2 per centof GDP in the industrialised countries.On per capita basis (insurance density),an average of Kshs1,152.8 or (US$17.2)was spent on insurance.This was quite below the average for emerging markets,which stood at US$ 60.
Capital Markets:
The capital market has witnessed robust activity over the past five years,which is attributed tocontinued growth in the economy coupled with wide ranging capital market modernisation and deepening reformsundertaken in the sector.During the ERS period,there were a number of notable improvements in the arrangementsthat affect the performance of the public and private security markets.First,the government made considerablesuccess in lengthening the maturities of its own debt to as long as 15 years.Second,the privatisation Act,which waspassed in 2005,has had a profound effect both on the total supply of securities to the market and the availability ofmore attractive security instruments to a wide section of the Kenyan public.Other notable improvements in the capital market include establishment of a Central Depository System (CDS) in 2004and Automation of Trading System in 2006; significant new equity listings have been floated successfully ( including listing of 3 companies in the Uganda and 2 in the Tanzania stock exchanges); and new fiscal incentives have beendeveloped targeting both issuers and investors.Market capitalisation has grown rapidly over the last 5 years from a value of Kshs 112.3 billion in 2002,to a value ofKshs 810 billion in 2007 representing about 43 per cent of GDP.During the last 3 years,more than Kshs 20 billion wasraised through the capital markets by way of public equity offerings and corporate debt instruments.Activity in thesecondary market has increased significantly in virtually all parameters with the NSE 20 Share index yielding averagereturns in excess of 30 per cent over the last five years since 2003.The number of licensees and approved institutionsby the Capital Markets Authority (CMA) increased by 40 per cent from 58 in 2002 to 81 in December 2007.While the primary auction market for government securities remained active,the secondary trading at the NairobiStock Exchange (NSE) is still low.The NSE's stock market capitalisation to GDP ratio stood at 43 per cent in 2007compared with South Africa's 266 per cent,Nigeria's 63.8 per cent and,in Asia,Hong Kong's 127.6 per cent andMalaysia's 67.2 per cent.
Pensions Sector:
The pensions sector is an important contributor to the capital markets with pension schemesholding over Kshs 80 billion in government securities and Kshs 96 billion in quoted equity.Government securities heldby the sub sector account for 23 per cent of outstanding securities while quoted equity held by the sub-sector accountsfor 11.9 per cent of market capitalisation.Pension schemes are also important investors in real estate,corporate debtinstruments,bank deposits and insurance funds.
Inter-bank and Money Markets:
Inter-bank and money markets provide players (banks,enterprises and individuals)with the means for effective liquidity management.A strong foundation has been laid for a market in short-termunsecured inter-bank lending,and a base for money markets (including Treasury Bills) over the last ten years.Inaddition,the inter-bank market has been strengthened by establishment of regulations for diverse money marketinstruments such as certificates of deposits,repurchase agreements and primary dealership system.The moneymarket has also been broadened with the regulatory framework for non-bank issuers of money market instrumentssuch as commercial paper.Going forward,the government will undertake a number of steps,including refining ofexisting regulations,to improve liquidity in the market place.
Quasi-Banking Sector
Microfinance:
Microfinance is crucial in financial services in the country.About 27 per cent of Kenyans have access toformal financial services including from banks (19 per cent),SACCOs and MFIs ( 8 per cent).Another 35 per cent haveaccess to informal financial services ranging from ROSCAs,merry-go-rounds to relatives and friends.Overall,some 38per cent of Kenyans do not have access to financial products and services.An estimate of the outreach of the sector asat December 2007,gives a credit portfolio of Kshs 25 billion against collateral savings of approximately Kshs 30 billion.The client outreach is estimated at 2 million savers,and slightly under half a million individuals with loans.
Savings & Credit Cooperative Societies (SACCOs):
There are about 4,900 active SACCOs offering savings and creditservices to over 2.1 million Kenyans.The bulk of these clients are salaried (almost three quarters) and only a quarterare rural.There are now approximately 155 SACCOs in rural areas.Unfortunately,while much salary-based lendingprogrammes have performed well,other SACCOs and particularly rural and informal sector societies,have considerableNon Performing Loans (NPL) problem.
Kenya Post Office Savings Bank (KPOSB):
There is a significant potential role for KPOSB in the provision of accessto financial services particularly in poorer,sparsely populated rural areas.By 31st December 2007 KPOSB had 1.2million active clients with a deposit base of Kshs 11.5 billion.However,the KPOSB has a much greater potential thatcould be achieved through a synergistic relationship with the Postal Corporation of Kenya (PCK) and expanding itsmandate to providing additional financial services.
Development Finance Institutions (DFIs):
DFIs exist to help finance those sectors not catered for by private banks andother financial institutions,especially in rural areas.Examples include development and seasonal loans for agriculture,small industrial investments and small business loans.Currently,there are five DFIs,namely:Agricultural FinanceCorporation (AFC),Industrial and Commercial Development Corporation (ICDC),IDB Capital,Kenya Tourist DevelopmentCorporation (KTDC) and Kenya Industrial Estates (KIE).There has been a decline in total assets of the five DFIs togetherfrom Kshs 13.8 billion to Kshs 8.3 billion.The total loans (gross) has risen but the more realistic provisioning of those loanshas resulted in a fall in loans outstanding on a net basis from Kshs 7.2 billion to Kshs 2.7 billion.
National Payments System (NPS):
National Payment Systems (NPS) play a critical role in the stability of the financialsector and contribute to the efficient functioning of the economy.The NPS is largely non-integrated with participantsduplicating resource investment,leading to minimum interoperability,high interchange fees etc thereby making itexpensive for end users.Promoting the sharing of infrastructure is thus one of the key objectives that need to bepursued.In addition,the continued importance of cash usage by the public and cheque & Electronic Funds Transfer(EFT) usage by the government and its agencies to settle both low and high values transactions raises concerns of risk and efficiency that require to be addressed by 2012.The payment needs of the un-banked community need to befulfilled through sound programmes to increase the accessibility of the payment system by providing for new types ofparticipants and products.The increasing adoption of technological advancement in NPS has seen the collapse of national boundaries and theemergence of efficient cross-border payment systems with attendant regulatory issues.This phenomenon howeverpromotes regional financial stability and economic development.Oversight over these payment systems necessitatesthe development of risk management standards and common regional approach to payment systems.The enactmentof the proposed NPS bill will provide a sound legal basis for the NPS as it will enable non-banks to participate in thesystem to provide innovative and competitive payment services.The recently implemented KEPSS has provided potential for further reduction in the usage of cheques and EFTs in thesettlement of large value obligations especially by the government and its agencies.The government will move its highvalue payments to KEPSS.Efficiency will be enhanced through enabling direct participation of government ministriesin the RTGS system.One of the key objectives is to increase access to payment system by the public.Towards this end,ICT will continue to be exploited especially in the use of mobile phone networks,internet and payment cards.Enhancedoperational resilience and security will be pursued in order to increase trust,integrity and confidence in these ICT basedpayment systems.
4.6.2Emerging Issues and Challenges
Mobilisation and Access to financial services:
Currently,the penetration level of the banking services is limitedespecially in rural areas and does not link with production activities in agriculture and small industrial and businessinvestment.The existing banks are concentrated in urban areas.The low ICT infrastructure in rural areas inhibitsincreased coverage.It is pertinent to note that the current cost of finance (14%) is very high.
Legal and regulatory framework:
There is inadequate legislative and regulatory framework to support the growth ofthe insurance and capital markets in the country including Quasi-banking and SACCOs sectors.Additional challengesinclude overcapacity and price competition; corruption and fraud; poor corporate governance; negative publicperception of insurance; unfavourable tax regime and multiplicity of taxes; high cost of insurance to the common man;and low level use of Information Technology.
Retirement benefits:
The existing retirement benefits arrangements cover less than 15 per cent of the labour force,primarily those in the formal sector.Coverage in the informal,rural and self-employed sectors is low if not non-existent.The retirement benefits also provide low benefits with the income replacement ratio estimated at around 20per cent of pre-retirement income against the recommended basic standard of 40 per cent and the target standard of65 - 75 per cent.In addition,the local capital markets do not provide the vehicle to enable schemes to adequatelydiversify their investments and match assets to liabilities. Absence of an overall policy framework,retirement benefits remain disjointed with occupational and individualschemes falling under the Retirement Benefits Act,while the National Social Security Fund (NSSF) falls under both theNSSF Act and RBA Act.There is a need for an overall policy and legal framework to encompass all pension relatedsectors.The Retirement Benefits Act and regulatory framework need to be continuously updated to reflect theemerging trends in life expectancy at retirement.
Capacity constraints:
There are limited skilled human capacities especially in actuarial studies,which constraints thegrowth of the insurance sector.Other constraints are lack of adequate IT capacity,slow payment process and lack ofan Information Education Communication (IEC) framework.
4.6.3Programmes and Projects for 2008 - 2012
The projects and programmes to be pursued in the medium term for the various components of the financial sectorwill aim at creating a vibrant and competitive financial sector driving high levels of savings and financing the country'sinvestment needs.They will be anchored on the flagship projects for the sector,namely:•Consolidation of the banking sector through enhanced capital base;•Increase financial access through formalisation of microfinance;•Deepen capital markets by raising institutional capital and expanding bond and equity markets; and•Leverage remittance and long term capital inflows.In addition to the flagship projects,the strategies and action plans will be on key initiatives to be undertaken by thevarious components of the financial services sector,that is,banking and quasi-banking,insurance,capital markets,pensions and legal infrastructure.
Objectives under The Medium Term Plan
The key objective of the MTP for the financial services sector is to mobilise savings to realise a savings to GDP ratioof 25-28 per cent as envisaged in the macroeconomic framework underpinning the
Vision 2030
.This level of savingswill sustain an increase in the ratio of investment to GDP of around 30-32 per cent,with a growing amount of resourceschannelled to support the agriculture,manufacturing and other key sectors identified under
Vision 2030
,includinglending to micro,small and medium enterprises (MSMEs).This will also further the government's policy objectivesunder the ERS,which articulated improved access to financial services for a much larger number of Kenyanhouseholds and small enterprises; greater efficiency in the delivery of financial services; and ensure the chances of afinancial crisis are kept to a minimum.Specifically,the objectives of the MTP are aimed at achieving the following:•Maintenance of sound fiscal and monetary policies to ensure macroeconomic stability which is key to a vibrantfinancial sector;•Review the banking sector legal and regulatory framework to align it to international best supervisory practice asset out by the Basel Committee on Banking Supervision.A revised Banking Act will be enacted in this regard;•Enact the Proceeds of Crime and Money Laundering (Prevention) Bill to safeguard the integrity of the financial sector; Operationalise regulations for Credit Reference Bureaus to facilitate credit information sharing;•Promotion of a competitive,sound and efficient banking system,including strong microfinance institutions thatare well regulated and supervised,that effectively mobilises savings to provide financing to support the growth ofprivate sector;•Establishment and development of non-bank financial institutions that will increase the depth of the financialsector as well as increase access of financial services to majority of Kenyans by providing a broad array ofdiversified services such as leasing and finance to MSMEs;•Development of the insurance sector that is well regulated and supervised so as to effectively protect businessesand individuals from risks;•Promotion of a strong pensions system that provides a secure retirement to a wider Kenyan population and whichprovides capital for long-term investment in the real sector;•Development of a safe and reliable payments system that will ensure smooth transfer and settlement of fundsbetween customers and banks as well as between banks;•Strengthening of money/inter-bank markets that provide banks,enterprises,and individuals with the means foreffective liquidity management;•Develop a comprehensive consumer protection framework;•Promote financial literacy/education;•Invest in human capital and information technology;•Improve the functioning of the financial system to enable it mobilise domestic savings and to promoteinvestments;•Expand the coverage and outreach of financial services to all parts of the country especially the rural areas;•Encourage commercial banks to finance industrialisation;•Development of efficient and transparent capital markets with a critical mass of issues that mobilises funds forlong-term investment;•Establishment of a legal infrastructure that promotes and enforces the rule of law in commercial and financialtransactions including protection of property rights and enforcement of contracts,as well as that which supportsgood governance by promoting transparency,accountability,participation,and predictability; and•Establish a single unified notification system (register) of all security document (charges,pledges,debentures,etc)of all movable assets given by all legal and natural persons so as to encourage registration of non-traditionalsecurities such as chattels and guarantees to improve collateral security access to credit from the formal sector.
4.6.4Policy,Legal and Institutional Reforms
Reforms in the sector will focus on the following:•Reform the commercial justice system to enable it better support the effective working of market-based financialinstitutions;•Improve the registration arrangements for pledges over movable assets to help banks establish sound collateral;improving the land registration system to facilitate land as a viable collateral;•Review the Insurance Act to empower the newly created Insurance Regulatory Authority (IRA) to pre-empt financialdistress or intervene to help resolve financial problems of an insurance company;•Strengthen management and regulation of the NSSF including bringing it directly under the supervision of theRBA.This will focus more critical attention to the financial viability of the NSSF,the quality of the services itdelivers to its members,and its costs and other aspects of its efficiency;•Development of a National Pensions Policy,enact new legislation for the Public Service Superannuation Scheme(PSSS) and completion of phase I of the Pensions ICT project (the Pensions Management Information System –PMIS); 85
THE ECONOMIC PILLAR
•Review the Capital Markets Act to provide the Capital Market Authority (CMA) with adequate legal protection,access to bank records in an investigation,ability to obtain freeze orders,and authority to visit at will the regulatedcompanies and their auditors;•Review the ownership structure of the NSE through demutualisation as part of initiatives to strengthen its role;• Introduce the risk-based capital adequacy framework for providers of financial services and products under CMA regulation and supervision; and•Increase government participation in capital markets such as leveraging on public private partnerships (PPPs) andspecialised bonds to facilitate investment in key areas.
5, THE SOCIAL PILLAR
5.0Overview
Kenya's journey towards widespread prosperity involves building of a just and cohesive society that enjoys equitablesocial development in a clean and secure environment.This quest is the basis of transformation in some eight keysocial sectors that include education and training; health,water and sanitation; the environment; housing andurbanisation as well as in gender,youth,sports and culture.It also makes provisions for Kenyans with variousdisabilities and pays due attention to previously marginalised communities.The medium term priorities and policies asoutlined in the main
Vision 2030
policy blueprint will be anchored on a strong science and technology foundation asalready outlined in Chapter 3 that deals with the basic foundations of our national transformation.
5.1Education and Training
"Globally Competitive Quality Education,Training and Research for Sustainable Development"
The government is committed to the provision of quality education,training and research for all Kenyans.In the recentpast,the education sector has undergone accelerated reforms to address the overall goals of the
Economic Recovery Strategy for Employment and Wealth Creation
(ERS).The government is also committed to achieving the internationaldevelopment commitments such as the Millennium Development Goals (MDGs) and Education for All (EFA).Major reforms the education sector has undergone include:•The launch and implementation of Free Primary Education (FPE) in January 2003;•Development of Sessional Paper No.1,of 2005 on Policy Framework for Education,Training and Research;•Adoption of the Sector Wide Approach (SWAP) to planning and financing of education and training;•Development and implementation of the Kenya Education Sector Support Programme (KESSP),which is aninvestment programme that allows different stakeholders to support the sector in the medium term; and•The recently introduced Free Day Secondary Education (FDSE).Other achievements in the sector include:•Development of the Education Governance and Accountability Plan;•Production of Financial Management and Procurement Manuals;•Enactment of the Ministry of Education (MOE) and sub-sectoral Strategic Plans and Service Charters forUniversities,Secondary schools and the Teachers Service Commission (TSC);•Recognition of various sub-sector policies like Gender,Early Childhood Development Education (ECDE) andInformation Communication Technology (ICT);•Establishment of Voluntary Counselling and Testing (VCT) centre at the Ministry of Education headquarters,•Review of the Ministry of Education Legal framework which is currently ongoing;•Strengthening of the Education Management Information System (EMIS); and•Development of Geographical Information System (School Mapping).
In 2006,Kenya was evaluated and endorsed for education support from Fast Track Initiative (FTI) on the basis of thecredibility of the "basic education for all"policy as formulated in the KESSP which was launched in July 2005.Theimplementation of the KESSP's investment programmes was based on the thematic areas of Financing,Access,SectorManagement,Quality,Retention,Secondary,Tertiary and Higher Education.Currently,KESSP is under review and threenew investment programmes have been proposed for inclusion namely:Communication Strategy,Examination andCertification and Curriculum development and support.In addition,the Secondary,Technical,Industrial,VocationalEntrepreneurship Training (TIVET) and University programmes will need to be expanded to be more comprehensiveaddressing all aspects of the sub-sectors in line with the recently formulated strategies for the sub-sectors and
Vision 2030
human capital needs.
5.1.1Situation Analysis
In order to effectively carry out its mandate,the education sector has various sub-sectors and Semi AutonomousGovernment Agencies (SAGAs) which are charged with various responsibilities.These sub-sectors and SAGAs haveexperienced marked improvements including the following:
Early Childhood Development and Education (ECDE):
The government recognises the importance of ECDE as oneof the most important levers for accelerating the attainment of EFA and the MDGs.One of the EFA goals obligates thegovernment to expand and enhance comprehensive ECDE programmes that are essential for basic education.Whileenrolment in ECDE increased from 1,672,336 in 2006 to 1,691,093 children in 2007,the GER (59.3 per cent) is stillbelow acceptable levels.Furthermore,the number of ECDE centres also increased marginally from 36,121 in 2006 to37,263 in 2007.With low enrolment at this level,many of the children between the ages 4-5 years end up directly joining primary schools without the relevant background thus negatively affecting retention and quality.
Primary Education:
Kenya has made remarkable progress in increasing access to Primary education.Primary schoolNERs increased from 86.5 per cent in 2006,to 91.6 per cent in 2007.There was a slight change in the GER to 107.2per cent during the same period.The completion rate increased from 56.9 per cent to 76.8 per cent in 2006.Currently,the country has 18,063 public primary schools and 8,041 private schools enrolling 8.2 million pupils.Regional disparities are evident,with North Eastern (24.3 per cent) and Nairobi (32.9 per cent) provinces having lowNERs compared to a high of 97.8 per cent recorded in Nyanza province.With regard to gender disparity in enrolment,the situation has been improving and the disparity is relatively small in primary school.Female Primary schoolenrolment stood at 49.4 per cent of the total enrolment,with North Eastern province recording the lowest proportionof female enrolment of 25 per cent.There has been significant increase in Primary school enrolment after the introduction of FPE in 2003.However,thishas exerted additional pressure on the existing physical facilities.This has led to an acute shortage of permanentclassrooms,particularly in poor communities.At the same time,existing infrastructure is generally in poor conditiondue to a lack of investment capital,poor construction standards and inadequate maintenance.The results of the sharprise in enrolment numbers include poor learning conditions and overcrowding in schools.Indeed,this has compromisedthe quality of education at this level.Furthermore,there is limited number of primary schools serving those in ASALareas and urban slums.
Secondary Education:
A major factor constraining secondary school enrolment is that growth in the number ofsecondary schools has not matched the growth in primary schools.In 2007,there were 4,245 public secondary schoolsand about 2,240 private secondary schools as compared to 26,104 primary schools.Currently,the total enrolment insecondary schools stands at 1.18 million students as compared to 3.7 million children of secondary school going age.The GER increased from 32 per cent in 2006,to 37 per cent in 2007.On its part,the NER stood at 23 per cent in 2006 and 24.2 per cent in 2007.The GER for boys was 40.4 per cent while the rate for girls was 33.3 per cent.This imbalance is expected to worsen following the successful implementation and strengthening of FPE as well as theintroduction of Free Day Secondary Education.The demand is already very acute in urban areas,particularly in urbanslums,where over 60 per cent of the total urban population live.Moreover,the sector has set a target transition rateof 80 per cent from Primary to Secondary schools by 2009.This will be an increase from the current rate of 70 percent,with enrolment doubling from 1.17 million students in 2007 to about 2.8 million in 2012 and tripling to 3.51million students by 2015.In order to effectively address the challenges at this level,the sector has developed aSecondary Education Strategic Plan,which is a key component of the government of Kenya's approach to the provisionof Education for All (EFA).This is expected to be integrated into the revised KESSP that will be extended to 2015.
Special Needs Education:
Special Needs Education aims at assisting persons with special needs realise their fullpotential.It is estimated that 26,885 out of 1.8 million school going age population with special needs are enrolled in thefew special education schools,units and integrated programmes including 1,130 integrated special units and 8 specialschools offering secondary education programmes.This means that close to 1.77 million children with special needs arenot receiving any educational support.The problem of integrating students with special needs has not been adequatelyaddressed at post secondary and university level.There is need to provide appropriate educational facilities,materials,equipment and a cadre of trained teachers,professional and support staff to address their needs at all levels.
Adult Basic Education:
According to the Kenya National Adult Literacy Survey (KNALS),2007,61.5 per cent of theadult population has attained minimum literacy level.Only 29.6 per cent of the Kenyan adult population has attaineddesired mastery literacy competency.About 29.9 per cent of the youth aged 15 to 19 years and 49 per cent of adultsaged 45 to 49 years are illiterate.The survey reveals high regional and gender disparities in literacy achievements withNairobi recording the highest 87.1 per cent and North Eastern province recording the lowest at 8 per cent.
Teacher Training:
There are 33 public Primary Teacher Training Colleges that produce approximately 9,000 graduatesannually.Majority of secondary school teachers are trained under university education programmes.In addition,thereare two diploma colleges that produce about 400 graduates annually who are absorbed in secondary schools.However,the institutions lack adequate and modern facilities required for effective delivery of both pre and in-service trainingservices.
University Education:
Transition from secondary to university education stands at about 3 per cent.The last decadewitnessed substantial growth in the University sub-sector.Enrolments rose from 112,229 during the 2006/2007academic year to 118,239 in the 2007/08 academic year.Female students constituted 31 per cent of the totaluniversity student population.However,the increasing number of universities (28 by 2008) has failed to meet thedemand for University education.In addition,access to highly marketable degree programmes and science basedprograms remains limited due to high costs while gender and regional disparities still abound.The phenomenaldemand for university education has resulted into expansion of universities through opening of satellite campuses mostof which lack the requisite infrastructure and personnel.The expansion is also likely to stifle the diversified universitysystem and the goal of creating 'Centres of Excellence',thereby affecting the quality and relevance of education atthis level.Currently the Higher Education Loans Board (HELB) is able to support only 16,000 out of the over 80,000 students whoqualify for admission to the public universities and an additional 3,000 students from private universities.This hasadversely affected access to higher education since only a few students can afford to pay for the self-sponsoredparallel programmes.
Quality Assurance and Standards:
The education sector has expanded rapidly and this growth has impacted onquality and relevance of education at all levels.The objective of Quality Assurance and Standards is to ensure that: relevant curricula as well as teaching and learning materials are developed; appropriate physical facilities andequipment are provided; and there is an adequate number of qualified teaching staff for efficient delivery of thecurriculum.The sector will continue to improve the capacity of quality assurance officers,revitalise subject panels atschools,initiate teacher support initiatives and conduct subject based in-servicing,among others.
Teacher Management:
Teacher resource is the single most important input into the learning process.Over the years,the number of educational institutions has substantially increased to the current 26,104 primary schools and 6,485secondary schools.The Pupil-Teacher ratio in Public Primary and Secondary schools stood at 44:1 to 23:1 in 2007,representing a rise from 43:1 to 20:1 in 2006 respectively.The Economic Recovery Strategy (ERS) targeted a PTR of40:1 for Primary education and 35:1 for Secondary education.The introduction of the Free Primary Education Programme has resulted in an increase in the transition rate.However,this has substantially increased the shortage of teachers currently estimated at 42,000 for primary schools and 11,000for post- primary institutions.The shortage is anticipated to be higher with the expected increase in transition andtransfer of students from Private to Public schools,following the implementation of Free Day Secondary Education.Toaddress the uneven distribution of teachers,the TSC is currently using the demand-driven recruitment policy whoseachievements may be affected by the recent displacement of teachers occasioned by post election violence.
Curriculum Development:
Curriculum development is recognised as one of the major pillars of quality in educationand training.Between the 2005/2006 and 2006/2007 financial years,721 titles in different categories were evaluatedrespectively.This included life skills textbooks developed by the institute and a few Mother Tongue titles.The KenyaInstitute of Education has also developed E-Content curriculum materials for secondary level which are being digitised.In addition,digital laboratory and Broadband internet connectivity has been established.In the recent years theadaptation of curriculum for learners with special needs has been finalised for three levels of education,namely:Primary,Secondary and Primary teacher education.This will continue through the next five years to fully cover allaspects of the curriculum.
Information and Communication Technology in Education:
A National ICT Strategy for Education and Training aimedat guiding the sector in the adoption of ICTs across all levels of education and training has been developed.Thisstrategy takes into consideration the National ICT Policy of 2006,Sessional Paper No.1 of 2005,E-GovernmentStrategy of 2004 and the ERS.In addition,the sector has developed an e-school model for Kenya under the NewPartnership for Africa's Development (NEPAD) initiative.This takes into consideration the partnership of the communityand schools management committees.Under the programme,more than 213 schools have benefited and are expectedto be centres of excellence in the respective district.
5.1.2Emerging Issues and Challenges
For the sector to deliver the targeted
Vision 2030
goals,challenges identified in the sector at the various levels oughtto be addressed.Some of the major challenges in the sector include:
Effects of 2007 post- election violence:
The post-election crisis has had a negative impact on the educational sectorin Kenya.The main affected areas are Rift Valley,Nyanza,Western,Coast,Nairobi,and Central provinces with massivedisplacement of students,burning and looting of schools as well as teacher migration.The sector has undertaken anassessment to determine the extent of the damage,with a view to identify the necessary interventions.Currently,thiscrisis is being managed by placement of displaced children in local schools as well as establishment of temporaryclassrooms in host community schools.The displaced teachers have also been deployed appropriately.
n the meantime,the sector is undertaking the following interventions:•Integrating over 120,000 displaced learners into existing learning institutions and provision of teaching andlearning materials as well as financial support;•Addressing the psycho-social and peace education needs of children and teachers;•Creating new structures and services where necessary such as IDP camps;•Continuous monitoring of the educational situation to facilitate appropriate interventions and planning.Many students attending Technical Training Institutions were affected by the post election violence.Hence,the bursaryfund will to be increased to enable students from the affected families to access technical education.To this effect,anincrease of Kshs 50 million has been proposed for the 2008-2009 financial year to benefit 42 Technical Institutions.
Quality and relevance of education:
The rapid increase in enrolments at all levels of education withoutcommensurate increase in infrastructure and personnel has led to overstretched facilities,overcrowding in learninginstitutions and high student staff ratios.All these challenges have had a negative effect on the quality of education.In addition,the different curriculum has not kept pace with the demands of globalisation.For instance,rapid expansionin the demand for University education has strained the existing facilities and adversely affected the teaching andlearning,research productivity and the intellectual climate of universities as a whole.Many primary and secondary students who cannot proceed with formal education are supposed to be absorbed byTIVET institutions.However,the training at this level has been hindered by inadequate facilities and inappropriatecurriculum; hence most graduates at this level lack appropriate skills.Furthermore,a mismatch between the level ofskills imparted by the education system and the requirements of the labour market must be realigned in order to meetthe demands of the economy and improve students' opportunities to participate effectively in the development processand for globalisation.
Low transition rates:
Though rising,the transition rate from primary to secondary school,estimated at 60 per cent,and from secondary to University level at 3 per cent is still below the desired levels of 75 per cent and 15 per cent by2012 for the two levels respectively.The increase in high school enrolment had been hindered by the high cost ofsecondary education,and the low participation of private providers in post-primary education.In recognition of thisproblem,in 2008,the government commenced the provision of Free Day Secondary Education (FDSE),with theexception of boarding expenses.With the imminent rise in the number of students completing primary and secondaryeducation as a result of state-financed education at those levels,preparations will have to be made to expand tertiaryand higher education facilities.
Access and equity:
Despite recent improvements,high regional disparities in access to education at all levels remaina challenge.There is lack of adequate and quality infrastructure particularly in ASAL districts,urban slums and pocketsof poverty.At university level,access to technical and science based courses is hampered by lack of infrastructure.
Gender disparity:
In some regions of the country,girls do not have the same opportunities in accessing education atall levels as boys.Certain religious and cultural practices such as the marrying off of girls at a very early age inhibitthem from attending school.Other factors that work against the education of the girl child include poverty in the homes,such that given a choice parents would prefer to educate a boy than a girl.The most affected are those in remote ruralareas,urban slums,and other marginalised areas.In addition,girls mostly enroll for Arts based subjects while boysenroll for science based subjects.This puts girls at a disadvantage in the labour market as they cannot competefavourably with their male counterparts.The effects of HIV/AIDS scourge have turned many girls into caregivers at theexpense of their education.
The impact of HIV/AIDS:
HIV/AIDS poses a great challenge to the efficiency and quality of education delivery.This is because it leads to an increase in the number of orphans,loss of trained teachers and high absenteeism rates amongteachers and pupils/students.It is for this reason that school-based HIV spread prevention programmes have beenidentified as a necessary step towards protecting the general population from infection.In addition,substantialprogress has been made in developing capacity among teachers at primary school level to facilitate behaviour changeand the use of available resources to support teaching and learning about HIV and AIDS.Although the prevalence ratehas considerably declined,the issue of orphans still remains a challenge.
Special Needs Education:
This sub-sector faces numerous challenges such as inadequate statistics on children withspecial needs,poorly trained staff and insufficient funding.The lack of clear policy on special needs education,appropriate technical and assistive devices including ICT that enhance teaching and learning and appropriate tools forassessment of the special need compounds the situation.Special Needs education is further faced with the challengesof curriculum inflexibility; examination oriented educational system,as well as negative attitude of the society towardsthose learners with special needs.
Teacher Management:
The TSC has continued to experience operational constraints and challenges in certain areasof teacher management.The commission is currently faced with the challenge of providing adequate teachers toschools and tertiary education institutions.This challenge to provide adequate teachers is further compounded by theimplementation of FPE,FDSE and the establishment of learning institutions through the devolved funds such as CDFand LATF.The implementation of the ECDE policy as an integral component of basic education will require provision of20,229 teachers for the sub sector.The government has not been employing teachers since 1998,following the freeze on employment in the public sector.From 2001,the TSC was allowed to recruit teachers to replace those leaving service through natural attrition.In 2007,theTSC recruited 4,000 additional teachers to address national teacher shortage,a move which is likely to continue followingthe improvement of the country's economy.This additional number has raised the total number of teachers to 239,000.
Teacher Training:
The current Teacher Training curriculum does not adequately address the modern needs of ensuringthat the graduates are well suited to cope with the globalisation challenges.The TeacherTraining curriculum willtherefore be reviewed with a view to modernising it to reflect changing technologies and delivery methods.
University Student Loans and Bursary Scheme:
In executing its mandate of providing financial assistance touniversity students,HELB experiences many challenges including:increased number of applicants,low governmentfunding,partial loan allocations and low loan recovery rate.The Board will therefore be strengthened in order to reachmore vulnerable groups in both public and private universities.
Curriculum Development,Review and Delivery:
The development of curriculum and its review has been hamperedby lack of continuous capacity building in areas like instituting a modern curriculum.Due to weak linkages betweenuniversity education and industrial needs,reforming curriculum to provide relevant skills and competencies for nationaldevelopment and global competitiveness remains a priority.Hence,the private sector will participate in the curriculumreview and in order to ensure its relevance to labour market needs.
Examinations and Certification:
Efficient administration of examination process faces a number of challenges whichinclude:inadequate ICT to handle high volume of data,inadequate funding to cover the administration costs,due toincreased work load and lack of direct control of examination distribution centres.In addition,advanced technology,particularly with regard to mobile phones has posed a great challenge to Kenya National Examination Council (KNEC)during the administration of examinations.Unfortunately,a few secondary school candidates have attempted to usethis technology to commit examination irregularities.To deal with this vice,the KNEC is currently exploring ways ofstamping out this problem.
Adult Basic Education:
Lack of a clear Adult and Continuing Education (ACE) policy and clear transition mechanismsremains a challenge.The findings of KNALS 2007 indicated an acute shortage of teachers,teaching and learningmaterials and negative attitude towards ABE.The survey further established the existence of limited access to ABEprogrammes capacity for quality assurance and standards and ICT capacity for e-learning.
5.1.3Programmes and Projects for 2008 - 2012
The government,in collaboration with development partners and other stakeholders has been implementing the KESSPwith a view to addressing the main sector issues including the need to strengthen the management and delivery ofeducational services.In effect,this will improve the access,quality,equity and relevance of education and training.Inorder to stay on track towards meeting the objectives of the EFA,MDGs and
Vision 2030
,further investments in theshort,medium and long term will be made necessary.The short- and medium-term investment programmes that willbe implemented have been categorised into key areas including:One Year Recovery Strategy; Flagship projects whichare critical to the achievement of
Vision 2030
; and Public Private Partnership (PPP) programmes.
One Year Recovery Strategy
In order to address the effects of the post election disturbances in the Kenyan educational system,the Sector will carryout the following short term interventions:•Conduct an impact assessment to establish the educational needs and subsequent mitigation measures;•Guidance and counselling of post-election victims including Education Officers and teachers at all levels;•Building capacity and confidence of teachers who are expected to provide psychological support to affectedpupils/students;•Construction of schools and temporary shelters in affected areas;•Provision of teaching and learning materials in areas affected by post-election violence arson and pockets ofpoverty; and•Gender sensitive interventions and voucher system to support orphans and vulnerable children affected by theviolence.
Flagship Projects for 2008 -2012
The sector will implement the following flagship projects cutting across all the sub-sectors.These projects include:
Construction of new schools:
In order to address the inadequate physical facilities at secondary level to support theattainment of the desired transition rate of 75 per cent by 2012,the sector intends to construct more schools andexpand and rehabilitate existing ones.The newly developed school mapping (Geographical Information System)undertaken by the Ministry of Education will assist in identifying the needy regions for this intervention.
Recruitment of more teachers:
The sector plans to recruit more teachers both at the primary and secondary level toaddress the acute shortage and improve the pupil to teacher ratio.An additional 28,000 teachers,(both males andfemale) are to be recruited.Out of this group,21,400 primary school teachers and 6,600 post-primary institutionstutors will be employed.These will be distributed over the first four years of the Plan period,with 6,000 teachers beingrecruited each year.The balance of 4,000 will be recruited in the final year during 2012/13.
To ensure efficient teacher utilisation,the TSC will implement cost effective staffing measures which include:•Implementing differentiated staffing norms at Primary school level which will allow for a PTR of 45:1 in highpotential areas and 25:1 in rural ASAL areas;•Raising the Secondary school average teaching load from 18 hours to 20 hours per week;•Retraining some of the under-utilised teachers to specialise in the optional subjects for which supply exceedsdemand;•Sharing teachers across schools as deemed appropriate;•Placing a lower limit on the class size for optional subjects; and•Considering various options for retraining and redeploying the teachers below the cut-off teaching load level.
Computer Supply Programme:
In order to achieve the Vision's goal of mainstreaming information technology inschools,the sector will establish a computer supply program to schools in order to equip students with modern ICTskills.The program will target 20,000 public primary schools,4,000 public secondary schools,22 PTTCs,2 diplomacolleges and the 7 public universities.
Construction of Boarding Primary Schools in ASAL Areas:
Due to the migratory nature of the pastoral communities,the sector will construct,rehabilitate and equip at least one boarding Primary school in each constituency of the ASALdistricts.This will go a long way to increase the enrolment rates and ensure equity in education indicators for thesedisadvantaged areas.This programme will supplement the national infrastructure programme under KESSP.This willbe complemented by a sensitisation programme to ensure that parents enroll and retain children in school.
Establishment of the Voucher System:
In order to ensure equity in access to education,the government will increasethe financial assistance targeting vulnerable groups to supplement the already existing initiatives including SchoolFeeding and Nutrition Programme,bursary,Free Primary Education and Free Day Secondary Education.This will beaccomplished by rolling out the voucher system for the learners from poor households and children rescued from earlymarriages and child abuse,consistent with the voucher system being implemented by the Ministries of Health andHome Affairs.
Establishment of Centres of Specialisation:
To address the challenges associated with capacity in the targetedsectors,universities and other middle level colleges will undertake training programmes in cognisance of globalisationand local skills needs in a knowledge based economy.The sector will establish 'Centres of Excellence' in Hospitalitytraining (Tourism),Agriculture,Trade,Manufacturing,Financial services and Business Process Outsourcing/Off shoring.The establishment will be based on individual institution/university's comparative advantages.Universities will also beexpected to forge linkages with industry and international Organisations to facilitate establishment of Science Parksfor skills development.
Other Programmes
The sector will continue to implement other programmes besides the flagship projects.These programmes are aimedat achieving the broad sector strategic objectives of enhancing access,equity,quality and relevance.The programmesare in line with Sessional Paper No.1 of 2005,the KESSP,Sector Strategic Plans and Sub-sector Strategic Plans.
Early Childhood Development and Education Programme:
The government will integrate ECDE into the basiceducation curriculum,with a view to improving its management,increasing access to ECDE and enhancing retentionat lower primary school level.Currently,the programme entails community mobilisation and capacity building,provision of community support grants,review of ECDE curriculum,promotion of ECDE health and provision andprimary school readiness.In addition,the government will support provision of teaching and learning materials,trainedteachers and infrastructure.
Basic Education Programme:
The government will support the sector in alternative basic education programmesincluding Non-Formal Education (NFE) schools,madrassas and mobile schools.In an effort to ensure full utilisation ofthe boarding schools in ASAL,the sector will mount community sensitisation programmes.
Special Needs Education:
The sector will integrate Special Needs education at all levels of education and training.This will entail the following measures:•Enforcement of legal provisions that safeguard the rights of those with special needs;•Implementation of a Special Needs Education Policy;•Conduct further research in the area of Special Needs;,•Development of a flexible curriculum and evaluation system appropriate for learners with special needs;•Utilising the most appropriate language of communication for learners with special needs;•Provision of funding and rehabilitation of existing institutions to make them disability friendly;•Creation of awareness and advocacy campaigns on the rights,needs and potential of learners with special needs;•Strengthening educational assessment centres through the provision of staff training and relevant assessmenttools; and•Capacity-building to embrace inclusive education practices and innovative methods of teaching,learning andevaluation.
Grants to Boarding Primary and Secondary Schools in ASAL:
Grants will be provided to low cost boarding primaryschools to cater for operational costs at an estimated budget of Kshs 4,000 per child annually.This programme will berolled out to boarding primary schools to be constructed in each constituency in ASAL districts to improve access andreduce regional disparities.Similarly,the government has been providing grants to all public secondary schools in the ASALs districts (as part ofaffirmative action to address equity) for development expenditures.This benefits the districts of Mandera,Wajir,Ijara,Garissa,Moyale,Marsabit and Isiolo.The sector will continue this programme within the Plan period to ensure qualityand equal opportunities.This programme will also target secondary schools in pockets of poverty within other districts.
Grants to Non Formal Schools:
The sector has for the last five years been providing grants to NFSs for teaching andlearning materials.Currently,there are 208 non formal schools registered and receiving grants.There are still moreNFSs which are not yet registered hence missing out in the provision of grants.In the plan period the sector will assessand register all viable NFSs and provide support in form of grants in order to enhance its efforts towards reachingchildren in hardship/disadvantaged zones.
Free Day Secondary Education (FDSE):
The FDSE aims at enhancing equity,access and improving transition fromprimary to secondary.To achieve this,the sector will continue to implement secondary school expansion strategy whichamong other things recommends the expansion of secondary education by construction of new schools of at leastthree streams and increasing class size from 40 to 45.To ensure successful implementation of the Strategy,thegovernment introduced free tuition in Secondary schools in January 2008.
Secondary School Bursaries:
The programme enhances access,equity and retention at secondary level.Thesebursaries target vulnerable groups.These include orphans,the girls and children from poor families in slum areas,pockets of poverty in high potential areas,and ASAL districts.Although the government has introduced free tuitionsecondary education,the programme will be continued to assist the poor and vulnerable groups meet the otherexpenses not catered for by the government such as boarding fees.
University Education:
In an effort to increase the Gross Enrolment Ratio (GER) of university students from the present3 per cent to 15 per cent,the number of students will be increased from the current 130,000 to about 450,000 students by 2015.The strategies to achieve this include:•establishing new university colleges in regional areas,with specific focus on strategic disciplines deemedimportant to the regions;•expanding the capacities of existing universities and establishing campus colleges of existing universities instrategic areas; and•upgrading existing middle-level colleges to degree-granting institutions without losing their current mandate.In addition to the above measures,there will be streamlining and fast-tracking of postgraduate programmes in orderto increase the number of PhD holders required for university education and other national needs.This will entail anincrease postgraduate student enrolment to at least 10 per cent of the undergraduate enrolment.This can be achievedby increasing the number of government grants and incentives provided to local universities.Nevertheless,such anexpansion calls for reforms that will ensure that quality and relevance are not compromised.To achieve this total a ofKshs.14 billion additional funding will be required to finance the initiative.
University Loans,Bursaries and Scholarships:
The Higher Education Loans Board (HELB) awards loans,bursariesand scholarships to students from needy families studying in public and private universities.With the rapid expansionof university enrolment,the board will improve its loan recovery,targeting procedures,and means testing.In addition,the HELB Act (Cap.213) will be reviewed to empower the Board to operate as a fully fledged student bank.The Ministryof Education also provides bursaries to university students.However,the current level of funding is inadequate,giventhe increasing need for university education.The government will therefore increase funding and explore more efficientallocation criteria.The sector will augment implementation of the initiatives to expand access to university education such as; de-linkingadmission from bed space,establishing new university campuses and colleges and upgrading existing middle levelcolleges.The sector will establish a National Open University and expand or establish Open and Distance Learning(ODL) in existing public and private universities as well as increase access to university education for women,studentswith special needs and other disadvantaged groups as part of the affirmative action.
Provision of Science/Laboratory Equipment in Schools:
The government has been providing grants to schools forprocurement of science and laboratory equipment in order to improve the teaching of science related subjects.However,the funding is inadequate to create the required critical mass/capacity for training the anticipated sciencebased skills necessary for the
Vision 2030
objectives.The government will therefore allocate more resources for thiscritical programme during the Plan period.
Information Communication Technology:
Programmes towards the enhancement of ICT education and training willbe tailored to address the following objectives:develop institutional ICT policies and strategic plans,strengthen ICThuman capacity.The sector will scale up resource mobilisation towards establishment of e-school programme.Thisprogramme is expected to increase the number of education institutions with proper ICT resources/facilities foreffective delivery of education content in the Digital and Knowledge Economy.With regard to Special Needs education,assistive technology (adaptive,assistive and rehabilitative devices) will be provided to enhance their ability to interactwith other learners.
Curriculum Development and Review:
Curriculum development and review will ensure quality and relevance ineducation and training for the realisation of
Vision 2030
.Under this area,KIE will undertake the following:developmentand revision of the curriculum,digitisation of the secondary curriculum,development of curriculum support materials,in-servicing and orientation activities,enhancement of out reach programmes,capacity building,needs assessment onadult education and training,education of learners with special needs and child minders,and monitoring andevaluation of curriculum at all levels.The CHE will therefore be strengthened to accredit university curricula.
Research and Development:
Universities will increase the quantity,quality and relevance of their research output witha view to creating innovations and inventions that will enable Kenya to effectively transform into knowledge basedeconomy.The sector will therefore provide incentives for research and increase the research endowment fund.
University-Industry Linkage:
Universities will build strong partnerships with other universities,industries,international organisations and communities through a policy environment that is conducive to growth.The linkageswill be instrumental in boosting the relevance of university education,mobilising resources,enhancing researchactivities and facilitating technology transfer.
Adult Basic Education:
Given that education is the main vehicle for transforming latent human potential for socio-economic development,the sector will continue implementing programmes aimed at achieving the medium term goalof 80 per cent adult literacy rate.These programmes will include:•Expanding access and increasing participation in adult classes;•Improving the quality and efficiency of adult education programmes;•Reviewing the legislative framework on Adult and Continuing Education;•Creating and sustaining a literate environment; and•Promoting e-learning for out of school youth and adults.
HIV/AIDS Programme:
To strengthen the sector's capacity to provide HIV/AIDS prevention,care,support andmitigation,the following will be undertaken:•In-service training for staff in Primary and Secondary schools on HIV/AIDS;•Peer support initiatives in education and training institutions;•Orientation on curriculum materials; and•Provision of teaching and learning materials in the various sub- sectors,as well as the provision of a school healthclub activity kit.In order to implement workplace interventions,the establishment of networks of Teachers Living With HIV/AIDS(TLWHA) will be strengthened.Additionally will be the implementation of the Education sector policy on HIV/ AIDS in theworkplace,including the revision and distribution of guide on regulations.The ACUs of all institutions under the sectorwill be strengthened in order to entrench management response to the effects of the scourge.
Guidance and Counselling:
The education sector will continue to support the provision of Guidance and Counsellingservices to enable learners cope with emerging issues like HIV/AIDS,drug and substance abuse,disaster management,conflict resolution,violence prevention and trauma management.
5.1.4Policy and Legal Framework
The Ministry has been engaged in the process of reviewing the legal framework governing the education sector tofacilitate the anchorage of reforms that have taken place over the past years.This will include incorporating the Parentsand Teachers Association (PTA) into the management of schools,decentralisation of both Ministry and TSC functionsand disbursement of funds directly to institutions.In addition,the Ministry will gazette the current fees guidelines forsecondary schools as a way of entrenching Free Day Secondary Education. At university level,the sector will:•Popularise the policy of Built,Operate and Transfer (BOT),as a way of upgrading and expanding universityfacilities; harmonise the legal statutes governing education and training;•Empower the Commission for Higher Education to be an effective quality assurance body for both Public andPrivate universities;•Strengthen and improve the governance and management structures of local universities; and•Provide incentives to private universities to enable them to expand facilities and capacities for increased accessand especially access to science oriented programmes.Curricula developed by individual universities will be geared effectively towards addressing the changing marketneeds.Consequently,there is a need to review the legal framework with a view to empowering Commission for HigherEducation (CHE) to undertake programme accreditation for both public and private universities.The sector will alsoFinalise the development of the National Qualifications Framework and review the Board of Adult Education (BAE) Actand its inclusion in the proposed Education Training and Research (ETR) Act.In addition,the sector will develop a legalpolicy framework to establish an independent Educational Broadcasting channel for both Radio and Television underthe Kenya Institute of Education.In order to assist persons with special needs realise their full potential; a specialeducation policy will be developed and implemented with a view to have an integrated and inclusive education.
5.2Health
"Equitable and Affordable Health Care of the Highest Standard"
The Kenya
Vision 2030
goal for the Health sector is to provide equitable and affordable quality health services to allKenyans.This is in recognition of the fact that good health and nutrition boosts the human capacity to be productive.Subsequently,this will enhance economic growth,contribute to poverty reduction and the realisation of the Vision'ssocial goals.The Health sector is one of the key components that appeals to the equity and socio-economic agendaemphasised in the social pillar of the
Kenya Vision 2030
.Moreover,the Vision builds on the achievements of the
Economic Recovery Strategy for Wealth and Employment Creation
(ERS) (2003-2007) and the National Health SectorStrategic Plan II (2005-2010) which was formulated with an aim of reversing the downward trends in health indicatorsduring the 1990s.Kenya also aims at restructuring its health delivery system to shift its emphasis from curative topromotive and preventive health care.In turn,this will lower the nations' disease burden.In particular,this will beachieved by shifting from curative care in large hospitals,to lowering the incidence of preventable diseases.In addition,efforts will be made to control environmental threats to health and improve the nutritional status and research thattargets the health needs of communities in their specific circumstances.The
Vision 2030
strategy is to undertake programmes that entail the public taking charge of their lifestyles in waysthat will improve the health status of individuals,families and communities.This approach will achieve major gains byfirstly,involving local communities in the management of health services and secondly,by allowing the Ministry ofHealth (MoH) to focus on policy,standards and research.The MoH has therefore defined a decentralisation approachthat will allocate funds and responsibility for the delivery of health services to district hospitals,health centres anddispensaries.In turn,this will empower Kenyan households and social groups to take charge of improving their ownhealth and nutrition.This will be achieved through the introduction of community-level care units to serve the localpopulation.In addition,a cadre of well-trained Community-Owned Resource Persons (CORPS) and Community HealthExtension Workers (CHEWs) will be created.This strategy is based on the realisation that communities benefit fromaffordable,equitable and effective health care when they have an opportunity to participate in policy making and thedevelopment of programmes on local health care delivery.The government also recognises the role of the private sector in improving the delivery of health services in partnershipwith the public sector.Accordingly,fostering partnership in the health sector has been one of the goals of healthreforms.In July 2005,the Ministry of Health embarked on a Kenya Health SWAP design process to enhance thecoordination and harmonisation of government and partner efforts (service delivery and funding).This was intended to achieve greater effectiveness and efficiency through the adoption of a country-led plan for service delivery,a singlemonitoring and evaluation framework.In addition,it would strengthen and use the country's systems of financialmanagement and procurement.Consequently,through such partnerships,Kenya will be able to position herself as acompetitive provider of specialised health care services.The overall goal is a paradigm shift that will bring fundamentalchanges to the way health services are delivered in Kenya.
5.2.1Situation Analysis
The majority of Kenyans do not have access to affordable health care.Furthermore,nearly half (46 per cent) of thepopulation live below the poverty line.According to the Household Health Expenditure Report of 2003,44 per cent ofKenyans who fall sick do not seek health services due to lack of finances.This implies that low income remain a majorhindrance to accessing health care services in the country.Mortality rates still remain high,particularly among womenand children.For instance,the Infant Mortality Rate (IMR) increased from 71 per 1,000 live births in 1998,to 77 per1,000 live births in 2003.In addition,the Under-five Mortality (U5M) increased from 105 to 115 per 1,000 live birthsduring the same period.Mortality rate among under-fives show marked regional disparities,ranging from 54 per 1,000live births in Central Province,to 163 in North Eastern province and 206 in Nyanza province.The overall concern is thatif the current national trend continues,the Under-five Mortality related MDG may not be achieved.Maternal mortalityrate stands at 414 maternal deaths per 100,000 live births.Approximately 14,700 women of reproductive age dieannually due to pregnancy related complications.Recent statistics show that 60 per cent of births in Kenya take placeoutside health facilities and only 40 per cent of deliveries are attended by skilled personnel.Communicable and infectious diseases,nutrition deficiency disorders and parasitic infections still dominate themorbidity profile in the country.The majority of Kenyans continue to seek treatment in health care facilities for ailmentsthat can be controlled through preventive and promotive measures.Further,health statistics indicate that Malaria is aleading cause of outpatient morbidity,accounting for 30 per cent of the total disease burden in Kenya.On the otherhand,diseases of the respiratory system,pneumonia,skin diseases,diarrhoeal diseases,and intestinal worms,contribute over three quarters of the total outpatient cases reported.HIV/AIDS continues to pose health and socio-economic challenges.The National AIDS Control Council estimated that there are an estimated 1.2 million peoplecurrently infected with HIV/AIDS.Approximately 85,000 people die of AIDS-related complications annually,leavingbehind over 2.4 million orphans.Although in some areas VCT centres have been established up to village level,theuptake remains low with only 5 per cent of the population visiting these centres.The incidence of Tuberculosis (TB) ison the rise due in part to the interaction between TB and HIV/AIDS.Multi Drug Resistant (MDR) is on the rise.If notchecked,it can possibly erode the gains made in the management of TB in the country.Poor nutritional status also remains a challenge in Kenya because malnutrition is an underlying factor accounting for54 per cent of deaths among children under-five years.At national level,one out of every three children under-fiveyears of age exhibits stunted growth,due to long term deprivation of quality nutrition.An estimated 55 per cent ofwomen of reproductive age are anaemic and over 70 per cent of children below 5 years suffer from Vitamin A deficiency.Indeed,these nutritional outcomes are totally unacceptable because of their negative consequences on thehuman and economic development in the country .Currently,the health expenditure in rural areas account for 30 per cent of the government's spending on healthservices.Of this figure,urban areas account for 70 per cent,and yet only 20 per cent of Kenyans live in urban areas.Quality health care services are low particularly in government-run facilities because of lack of supplies/stocks.Witha total of 6,194 health facilities,51 per cent are Ministry of Health facilities,while the remaining 49 per cent are FaithBased Organisations (FBOs) and private facilities.However,only 52 per cent of Kenyans are within 5 kilometres to thehealth facilities.
Inadequate and inequitable distribution of Human Resources for Health (HRH) is hampering health care delivery andultimately health outcomes.Overall,the Health sector is experiencing a shortage of health workers.Estimates show thatthere are approximately 17 doctors per 100,000 people in Kenya and 120 nurses per 100,000 of the population.However,analyses of regional distribution within the country indicate serious disparities.A case in point is that whereas the doctorto patient ratio in Central province stands at 1:20,715,in North Eastern Province,it stands at 1:120,823.Nevertheless,Kenya's health services have improved considerably in the last five years.This has been due to anincrease in the budgetary allocation of financial resources as well as better governance and management of healthdelivery systems.Recurrent and development funding for health services has increased from 7 per cent in 2003/2004,to 7.9 per cent in 2006/07.The actual government expenditures on health increased from Kshs 16 billion (2003/04),to Kshs 27 billion in 2006/07 and further,to an estimated Kshs.32 billion in 2007/08.The per capita expenditure onhealth also rose from USD 6.4 in 2003/04,to USD 10.9 in 2006/07.However,the expenditure is still skewed towardscurative services.For instance,in 2006/07,curative services accounted for 52 per cent of the recurrent expenditure,while preventive and promotive care accounted for 5 per cent.The levels of some key health status indicators associated with mortality and morbidity of the population observed inthe 1990s have been reversed.For instance,immunisation coverage increased from 59 per cent in 2003,to 73 percent by 2007 (against the set target of 70 per cent).However,the coverage in Western province of 68 per cent,Nyanzaat 66 per cent,and Rift Valley at 70 per cent still falls below the national immunisation coverage target.In addition,theHIV/AIDS prevalence rates declined from 6.7 per cent in 2003,to 5.1 per cent in 2007,with disparities ranging from13 per cent in Nyanza,to 3 per cent in North Eastern province.The expansion and scaling up of Voluntary Counsellingand Testing (VCT) centres and the prevention of Mother to Child transmission of HIV significantly contributed to theprevention of new infections,from 86,000 per year in 2003 to 50,000 per year in 2007.The number of people on AntiRetroviral Treatment (ART) has increased from 2,000 in 2003 to over 160,000 in 2007.
5.2.2Emerging Issues and Challenges
Despite the achievements attained over the last few years,the Health sector still faces a number of challenges thatinclude:
The 2007 post- election violence
The recent post-election violence resulted in the deaths and displacement of thousands of people.Most of the affectedpeople sought health care in health facilities especially at the major hospitals mainly Kenyatta National Hospital,MoiTeaching and Referral Hospital and New Nyanza Provincial General Hospital.This crisis occasioned an additional work loadthat put stress on all health public health care facilities,including the loss of revenue experienced in various healthfacilities.Consequently,the Ministry of Health had to divert medical supplies earmarked for routine supply to manage thecrisis.A case in point is that the government waived fees for mortuaries and health care services in the affected areas.Service delivery was also hampered by the displacement of health workers in affected areas.To date,some of the healthservices disrupted include the provision of ARVs for HIV/AIDS patients and children's immunisation.The provision of theseservices in the IDP camps has greatly increased the Health sector's expenditure on operation and maintenance.
Health Care Financing
The Health sector's expenditure accounts for 8 per cent of the total government expenditure,constituting 1.7 per cent of theGDP,and USD 10.9 per capita.However,this amount remains inadequate when compared with the WHO recommendationthat developing countries spend an average of USD 34 per capita on health care.This will enable the country to cope withthe rising burden of diseases and other emerging health concerns and ultimately achieve the Millennium Development Goalson improved health care.Similarly,during the Abuja Declaration,African governments (including Kenya) made commitmentsto allocate 15 per cent of their annual spending on the provision of health care services.
Health Facilities constructed through Constituency Development Fund
About 1,000 dispensaries have been constructed to address the need for people to have access to health servicesespecially in underserved areas of the country.However these facilities face challenges in terms of staffing andmedical supplies.This has called for their adoption in phases.Currently,294 of the facilities have been gazetted anda further 336 are planned for gazettement.In order to undertake a rational development of health service infrastructureto ensure equity,the MoH will undertake a comprehensive heath facility mapping,which will provide the necessaryinformation for policy development.This information will be useful in the proper targeting of construction of healthfacilities using CDF resources,efficient management of human resource for health and linkages with Local Authoritiesfor service delivery.
Human Resource in Health
In addition to insufficient human resources,the Health sector also suffers from a mal-distribution of the available healthpersonnel,with some rural dispensaries having an insufficient number of personnel.According to a Human ResourceStudy conducted in 2004,there are an inadequate number of health personnel at the dispensary level,with 50 per centof the dispensaries managed by support staff or nurse.This situation calls for the harmonisation of staffing needs anddeployment in order to address equity in the distribution of health care workers.
Weak Health Management Information Systems
Despite extensive previous investments,the current Health Management Information System (HMIS) does not providetimely and comprehensive data.Taking into account the emerging decentralised systems,disease burden,preventionand other epidemiological trends,the system provides limited information for monitoring health goals and empoweringindividuals and communities with timely and understandable information on health.Focus will therefore be directedtowards strengthening health information systems.This will require ICT connectivity,systems redesigning and capacitybuilding for health care workers critical in data generation and management.
Foundations for Health Sector Transformations
The adoption of the Kenya Essential Package for Health (KEPH) constitutes a paradigm shift in the delivery of healthservices.It emphasises on life-cycle cohorts and a shift from disease orientation to health promotion has meant thatservice delivery efforts are focused at primary and lower levels of health care such as district health services up to thecommunity level.The paradigm shift will be enhanced by the following transformations:
Community Strategy
The progressive shift from curative to preventive and promotive health care will require the participation of individualsand communities to take charge of their health.A Community Strategy has been developed to ensure that communitiesbenefit from affordable,equitable and effective health and nutrition care by participating in decision making on localhealth and nutrition care delivery.The strategy will be achieved through introduction of community-level care units toserve the local population and by creating a cadre of well-trained Community-Owned Resource Persons (CORPs) andCommunity Health Extension Workers (CHEWs).
Health Sector Services Fund
Previous Public Expenditure Tracking Surveys reveal that only 44 per cent of the resources earmarked for lower levelhealth facilities actually reach these units.Consequently,in order to improve on these disbursements,the governmenthas gazetted regulations for the Health Sector Services Fund (HSSF) to:•Provide financial resources for medical supplies,construction and equipment of health facilities in the country;•Support capacity building in management of health facilities;•Support and empower rural communities to take charge of improving their own health;•Provide grants for strengthening of faith based health facilities through their respective secretariats; and Improve the quality of health care services in health facilities.In addition to this,the Ministry of Health intends to spend the first half of 2008 building capacity for rolling out the HSSFin all the facilities.The Ministry of Health will also review the Public Health Act to allow disbursement of funds as grantsto health facilities,develop requisite systems and linkages to the Medium Term Expenditure Framework (MTEF).
Human Resource in Health (HRH) management
Human Resource within the Health sector is a critical component in the delivery of health care.Hence,the staffingnorms for (all existing health cadres) have been developed for the deployment of health personnel.A Health Manpowerpolicy and Improvement Plan has also been developed to address the development,absorption,management andretention of human resources in the sector in the wake of brain drain resulting from migration.Further,to addressregional imbalance in the distribution of health personnel in the marginalised areas,the Ministry embarked on hiringstaff on contract.Those hired on contract were posted to serve in these areas for the entire period of the contracts.Contract hiring has succeeded in ensuring key staff cadres are available in the hardship areas.Available informationshows that most of health facilities which had closed especially in North Eastern province are now operational thustranslating into availability of health services.
Sector Wide Approach (SWAP)
A Joint Programme of Work and Funding (JPWF) was developed and adopted in 2006 and has provided a framework for a structured engagement between partners and the Ministry.It has also enhanced the stewardship function of theMinistry of Health.Notable developments in this regard include the adoption of joint annual implementation planning,and annual reviews of sector performance.Through these processes,it is increasingly becoming possible to determinethe level of donor and partner resources available for health through either budget or off budget sources.This alsoenhances the roles played by other implementing agencies in the health sector.This is important for determining thesector's resource envelope as part of the Medium Term Expenditure Framework (MTEF).
Research and Development
Research on health has been recognised as a major contributor to knowledge and information critical for policydevelopment and priority interventions identification.Currently,health research is conducted,managed,and financedby a diverse number of Organisations.However,they have demonstrated limited coordination,accountability andimpact analysis of the research on the critical health needs.The health sector will therefore develop an explicitresearch policy and legal framework to guide research activities by various institutions in Kenya.Furthermore,thesector shall progressively increase its budget for research in conformity with the regional targets.
5.2.3Programmes and Projects for 2008 - 2012
The overall goal for the Health sector for the Medium-Term Period is to reduce health inequalities and to reverse thedownward trend in health related impacts and outcome indicators.The country will also build on achievements madeunder the ERS and the ongoing Health Sector Strategic Plan II to achieve the
Vision 2030
objectives.
One Year Recovery Programmes
In order to address the impact of the post election violence on the Health sector,the following interventions will beimplemented:•Replenishing buffer stocks diverted for medical supply during the crisis;•Rebuilding health care facilities destroyed during the crisis;
. Increasing budgetary allocation to health facilities to cover lost revenue due to the crisis;•Reviewing the waiver system to address the needs of the poor and vulnerable;•Recruitment and distribution of extra nurses to address the existing constrains worsened by the crisis.
Medium Term Targets
Among the health sector targets to be achieved in the next five years include:•The reduction of under five mortality from 120 to 33 per 1000;•Reducing maternal mortality from 410 to 147 per 100,000 live births;•increasing the proportion of birth deliveries by skilled personnel from 42 per cent to 95 per cent;•increasing the proportion of immunised children below one year from 71 per cent to 95 per cent;•reducing cases of TB from 888 to 444 per 100,000 persons;•reducing the proportion of in-patient malaria fatality to 3 per cent and reducing the HIV prevalence rate to lessthan 2 per cent.
Flagship Projects for 2008 - 2012
To provide an efficient and high quality health care system for all Kenyans,the sector will implement flagship projectsidentified by both the
Vision 2030
and at the sector level.They include the following:
Rehabilitation of Health facilities:
The objective of this strategy is to provide a functional,efficient and sustainablehealth infrastructure network in the country.Although the government has invested in the rehabilitation of theinfrastructure in the last few years,health facilities have been run down over the years due to lack of maintenance.Increased attention will be given to improving the health infrastructure,particularly in rural and disadvantaged areasand communities.
Strengthen KEMSA:
The management of procurement and the supply chain has been a major constraint in the effortto deliver equitable,quality and efficient health care service.Since drugs and other medical supplies are paramount inthe delivery of quality health care,there is need to strengthen KEMSA to be a strategic procurement agency for theentire health sector.This will be achieved through the following strategies:•Enhance KEMSA procurement system to avoid delays currently witnessed; KEMSA should be able to service a pullsystem for all facilities in Kenya in the next five years;•Allow Mission for Essential Drugs (MEDs) to compete for supply of medical supplies and equipment to healthfacilities and;•Refurbishing and strengthening KEMSA regional depots.
Community based information systems:
A Community strategy has been developed in order to enhancecommunities' awareness of the health preventive and promotive aspects of health,in order for them to adopt positivehealth seeking behaviour.The strategy will be operationalised to promote the participation of individuals andcommunities to take charge of their health.Moreover,the government will put in place strategies to fast-track implementation of the MOH Community Strategy by training Community Based Health workers on preventive andpromotive health care.
De-linking the Ministry of Health from service delivery:
The Ministry of Health continues to be both a health regulatoras well as a service provider.However,it is necessary to separate these roles by establishing a Health Service Commissionwhich is separate from the Ministry of Health.It is envisioned that the Health Service Commission will be mandated withService delivery,while the Ministry of Health will provide guidance on policies,standards and guidelines.The Ministry will also perform the function of regulating service pension by health providers.
Human Resource Strategy:
The issue of human resource for the provision of health services continues to constrainhealth care delivery due to the lack of adequate staff.Consequently,there is a need to develop a human resourcesstrategy to balance the supply and demand for human resources in the entire Public Health sector in the country.Similarly,the Human Resources Information Systems will be implemented.
Develop equitable financing mechanism:
An equitable financing mechanism will be developed through theintroduction of a system to channel funds directly to health care facilities to ensure that funds allocated are utilised fortheir intended purpose.The following initiatives will be reviewed:•Implement the National Health Insurance Scheme as a means of financing curative and rehabilitative services thusleaving the government health system to concentrate on prevention,research,and policy;•Channel health funds direct to Health facilities in line with the HSSF gazette notice;•Increase resources to underserved or disadvantaged areas;•Scale up the Output Based Approach System for other health services;•Review the Public Health Act to allow disbursement of funds as grants directly to health facilities;•Empower health facility boards to manage and supervise resources generated locally and those allocated fromthe Central Government.
5.2.4Policy,Legal and Institutional Framework
The Health sector has been reviewing the legal and institutional framework to facilitate the implementation of flagshipprojects.Accordingly,the following legal and institutional reforms will be necessary for the effective implementation ofprojects:
Health Infrastructure
•Develop an integrated health infrastructure plan to guide investments in the Health sector;•Strengthen and facilitate the timely procurement and distribution of medical supplies; and•Fast track the Community Strategy framework to promote participation of individuals and communities.
Service Delivery
•Review the Public Health Act to allow establishment of a Health Service Commission;•Develop a human resource strategy to link demand and supply for human resources;•Develop a policy to encourage local manufacturers to produce drugs and commodities locally to reduce the costof healthcare; and•Develop a policy on Public-Private Partnerships (PPPs) to ensure a well coordinated approach to health caredelivery
Health Care Financing
•Enact a policy to guide the health sector financing and inform debate on the National Social Health Insurance Billand its subsequent adoption in Parliament;•Review the Public Health Act to allow for the disbursement of funds as grants directly to health facilities;•Empower health facility boards to manage and supervise resources generated locally and those allocated fromthe Central Government.
Public Private Partnership (PPP)
•Develop a policy frame work for Institutionalising PPPs - legislation enabling Public Private Partnerships (PPPs)will be enacted to ensure a well-coordinated approach to healthcare delivery.
5.3Environment,Water and Sanitation
"Enhancing Access to a Clean,Secure,and Sustainable Environment,Water and Sanitation"
About 42 per cent of GDP is derived from natural resource-based sectors of agriculture,forestry,tourism,mining,waterand energy that are otherwise closely related to the state of the environment.Sound environmental conservationresults in preservation of natural resources thus,assuring continuous supply of environmental goods and services.Inaddition,proactive management of the environment pre-empts serious calamities and occurrences e.g.drought,floodsand global warming that would otherwise take up a lot of resources to deal with their eventualities.Development activities planned under
Vision 2030
will have different impacts on the state of the environment.Somecould lead to increased pollution levels and larger quantities of waste.Activities in the manufacturing sector are alsoexpected to give rise to an increase in effluents discharged,which will require effective and efficient management.Inline with the country's global commitment towards the sustainable development objective,targeted socio-economicdevelopment initiatives towards the
Vision 2030
targets will take into account environmental considerations.Water is an environmental resource necessary not only to support life but also sustain economic activities across differentsectors.The average annual rainfall in Kenya varies from about 250 mm in the ASAL areas to 1800 mm in the Lake Victoriaregion.The country's water endowment is also low and currently stands at 647 cubic metres per capita per year henceKenya's classification as a water scarce country.In recognition of the importance of sustainable management of waterresources,the government initiated reforms in the sector through the enactment of the Water Act 2002.Further,thegovernment,together with other riparian countries within the Nile Basin has developed the Nile Basin Cooperativeframework for development and management of the shared water resources particularly Lake Victoria.Sanitation and waste management are closely related to human health.The challenges of addressing sanitation andwaste management have been compounded by rising population,improvement in standard of living,and high rural-urban migration which is responsible for the development of densely populated informal settlements in urban and peri-urban areas with poor sanitation facilities.Pollution and waste management is exacerbated by dumping of waste intorivers,streams and other water bodies coupled with inadequate strategies leading to serious health implications.
5.3.1Situation Analysis
Water and Irrigation:
Kenya suffers from water scarcity since demand outstrips the stock of renewable freshwater.The current water supply is inadequate with only 57 per cent of households using water from sources considered safe.There are disparities in urban water access with informal settlements recording lower levels.Surface water resourcesaccount for 86 per cent while ground water accounts for 14 per cent.Trans-boundary waters constitute 54 per cent ofwater resources in the country.A Nile Basin cooperative framework for management and development of the sharedwater resource is under preparation by the nine riparian countries.The government remains conscious and committedto trans-boundary water management frameworks aimed at enhancing the socio-economic development of thepeople.Likewise,strategies for inter-basin water transfer will be considered.The available water is often inadequate for industrial,commercial,domestic as well as livestock and wildlife use.Thisscarcity has intensified competition among various users and often results to conflicts.Involvement of localcommunities in the management of water resources through formation of Water Resource Users Association (WRUAs)
has resulted in reduced illegal abstractions,reduced catchments encroachment,rehabilitation of catchments areas andriver bank protection.A positive outcome has been observed in River Ewaso Nyiro North which is flowing up to 110 kmas opposed to previous flow of 40 km,and the flow is for a longer period of time.Water is also a vital requirement in hydro-power generation as hydro-power accounts for 72 per cent of thecountry's electrical power generation.Geothermal power production and its sustainability are largely dependent onnatural ground water recharge.The government has implemented far reaching reforms in the Water sector withinthe legal framework provided by the Water Act 2002.Various water institutions have been established effectivelyseparating the functions of policy formulation,service delivery and regulation of the water supply and sanitation andresources.In addition,Sector Wide Approach to Planning (SWAP) has been initiated aimed at improving coordinationof the sector.Currently only 105,800 hectares (about 20 per cent of irrigable land) have been utilised for agricultural production.Itis therefore prudent to construct more water storage facilities towards increasing land area under irrigation whosepotential is about 1.3 million hectares within the Plan period.In addition,these facilities will contribute to flood controland reduce associated environmental costs that mainly impact heavily on the rural poor.The following are some of the major accomplishments in the water sector for the period 2003 – 2007:•Water and sewerage schemes in Eldoret,Garissa and Nyeri and Phase One of the Kisumu water and sanitationprogramme were completed;•759 dams and pans were constructed and rehabilitated in the ASAL areas;•209 community water projects were completed through the Water Services Trust Fund (WSTF);•203 rural water supply schemes were rehabilitated;•586 boreholes have been drilled and equipped;•Rehabilitation of 9 sewerage schemes in urban centres were completed; and•Construction of dykes,canals,gabions and river training along Rivers Nyando,Nzoia and Tana as well as therehabilitation of Yatta and Njoro Kubwa canals.
Sanitation:
Development of water supplies has not been matched by a corresponding increase in facilities of sanitarydisposal of wastewater.As a result,wastewater is discharged into mainstream rivers,valley depressions and damsleading to high pollution levels.In addition,main sewer systems suffer from constant breakages and/or leakage dueto increased discharge to fixed systems.The national sanitation coverage increased from 45 per cent in 1990,to 48per cent in 2006.Difference in access to adequate sanitation between urban and rural environments still persists,withthe formally planned urban areas being better served than rural areas,and urban informal settlements.Approximately80 per cent of the outpatient hospital attendance in Kenya is due to preventable diseases while 50 per cent of theseare water,sanitation and hygiene related.Hygiene and sanitation are also major determinant of poverty,disproportionately affecting women and children.
Forests:
Despite the socio-economic,ecological and environmental importance of forests,the forest cover in Kenyaremains below 2 per cent.The Forest Act 2005 and Kenya's Draft Forest Policy formulated in 2005 has severalobjectives which include:•increasing forest and tree cover; increasing wood production especially at farm level;•conserving and rehabilitating the remaining natural forests and woodlands for environmental protection andbiodiversity conservation;•enhancing participatory forest management; and•ensuring that the Forestry sector makes a contribution to poverty reduction.
Sustainable management,conservation and development of Kenya's forests depend on application of science to generateimproved technologies.Consequently,forestry research is undertaken by Kenya Forestry Research Institute (KEFRI) whosefocus is the generation of improved technologies aimed at sustainable forest conservation and management.
Wildlife:
Most of the wildlife in Kenya is found in only 8 per cent of the land area (4,403,595 hectares) that are gazettedfor wildlife conservation.The main concern in wildlife management is the encroachment for agriculture andinfrastructural development and also the rapid decline in wildlife population,both in and outside protected areas.Since1977,the country has lost 60-70 per cent of large wildlife and the annual decline of wildlife is currently estimated at3 per cent with some species like rhinos,the Hirola antelopes,and the dugongs being endangered.
Biodiversity,ecosystem and habitat management:
Kenya is a mega-biodiversity state with its biodiversity hoistedin its various habitats and ecosystems.The latter include forests,grasslands,wetlands,coral reefs and mangrovesamong others.Most of Kenya's biodiversity are also found within protected areas which comprise these habitats andecosystems.Species loss and management of protected areas remains significant challenges.Kenya has over time lost some of her well known biodiversity resources mainly due to population increase; habitatdestruction,desertification,over exploitation of species and conversion through deforestation,drainage of wetlands foragriculture and settlement,poaching due to lack of proper patent regulation.This problem is exacerbated by limitedfunctional mechanisms for monitoring and regulating the introduction into the country of alien invasive species,including Genetically Modified Organisms (GMOs).
Minerals and Mining:
This industry account for about 1 per cent of the GDP and 3 per cent of total export earnings.Kenya also has a wide range of minerals such as Soda Ash,Fluorspar,Limestone,Barite,Gypsium,Salt,DimensionStones,Silica Sand,Kisii Stone (Soapstone),Manganese,Zinc,Wollastonite,Graphite,Kaolin,Copper,Titanium,Lead,Nickel,Carbonic Dioxide,Chromite,Pyrite,various Clays,Rare Earth Elements and Phyrochore.Despite the potential ofthe industry,it remains largely undeveloped hence appropriate policy and legislation supportive of investments in theindustry and particularly small scale investors will be put in place.
5.3.2Emerging Issues and Challenges
The major challenges under this sector include environmental degradation; deterioration of water quality and quantity;pollution and waste management; impacts of Climate change and Global Warming; inadequate adoption of Bio-Technologyand lack of an integrated environmental planning strategy towards attaining the sustainable development objective.
Environmental Degradation:
The quality of land in the country is generally declining due to unsustainable farmingpractices,effects of climate change,Soil erosion,pollution and toxicity from agro-chemicals and alien and invasivespecies (e.g.Ipomea kituiensils,Prosopis juliflora,and water hyacinth).Soil erosion is the main form of landdegradation and is most prevalent in ASALs.This is due to the fragile ecosystems and overstocking although it alsooccurs in the high potential areas where inappropriate agricultural techniques are practiced.The magnitude anddistribution of soil erosion hazards in Kenya is influenced by rainfall erosivity,soil erodibility,gradient of the land andsoil cover.Soil erosion reduces soil fertility and has implications on land productivity,livestock carrying capacity,waterquantity and quality,and fuel wood availability.Land degradation has huge economic costs.It is estimated that thelosses at the national scale amount to USD 390 million annually or about 3 per cent of GDP.
Forestry:
The Forest sector plays vital roles in protection of water catchment areas,conservation of biodiversity andin provision of forest products in the country.However there has been accelerated destruction of forests in the countrydue to increasing population and Kenya is now internationally considered to be a low forest cover country.Theremaining natural forests have also been degraded and the forests on the Kenya's five water towers can no longer provide sustainable supply of water,raw materials and other services to meet the goal of
Vision 2030
.Further,treeson farmlands and in industrial plantations have also been over cut and there is widening gap between the supply anddemand of forest products.Forestry sector also experiences low level public investment.Clearing of woodlands in dryareas for agriculture and charcoal production is another major cause of environmental degradation.
Water Resources
With regard to this sector,key challenges include:•
Water Scarcity:
Renewable fresh water per capita stands at 647 cubic meters and is projected to fall to 235cubic meters by 2025 if supply does not keep up with population increase.There are also regional imbalances inwater availability and utilisation that must also be addressed.Highland areas,the Coast and the Lake Region havebetter water access than the ASAL districts.The state of existing water supply system will be upgraded to addressthe high unaccounted for water (currently estimated at 50 per cent) and improve customer satisfaction especiallyin urban areas.The distances to the nearest water points pose a challenge particularly to women and girls whobear the responsibility of fetching water.Most time is spent on this activity hence compromising the girls'education and time for other productive activities for the women.•
Water Security:
Provision of water throughout the year presents a major challenge.Inadequate water harvestingis responsible for regional imbalance in water security with some parts of the country having a lot of water duringrainy seasons and little or no water during dry periods.The challenges are further compounded by extremeclimatic changes that cause flooding and immense negative impact on both the social and economic fronts.•
Water Catchment management:
Deforestation has caused severe degradation of the country's main watertowers.This has led to reduced flows in a number of rivers thereby disrupting water and electricity supply.•
Water quality:
The quality of water has deteriorated overtime due to a number of factors such as increasedcommercial farming activities,rapid industrialisation and laxity in law enforcement.In most cases effluents andchemical waste from various sources are discharged directly into water bodies.•
Infrastructure development:
Poor physical planning in urban areas,coupled with the proliferation of unplannedsettlements,is challenge to the provision of safe drinking water.As stated earlier,water coverage will be increasedthrough investment in infrastructure,rehabilitation and construction of new water supplies and more efficientmanagement of available water.In addition,an estimated 60 per cent of water is unaccounted for.This problemwill be addressed under the Medium Term Plan.•
Monitoring of Resources:
Currently,water resource monitoring covers only 30 per cent of the total estimatedavailable supply.This constrains effective water resource planning and management.In the plan period,relevantcapacity for monitoring trends in water flows and abstraction will be given priority.
Pollution and Waste Management
Pollution and solid waste are some of the leading environmental health problems in the country affecting both ruraland urban populations.Air pollution results mainly from industries.Even though the quality of air in Kenya is notregularly monitored,it is estimated to be below the WHO recommended levels.For instance,the PM10 pollution levelin Nairobi is about 42μg/m3 attributed mainly to high concentration of industries and vehicles in the city.Air pollutionis responsible for increasing cases of Upper Respiratory Tract Infections (URTI) which is the second highest cause ofmorbidity in Kenya.Incidences of URTI morbidity are 6.0 per cent in urban compared to 5 per cent in rural areas andaffect women more (6.2 per cent) than men (5.7 per cent).
Waste management is another environmental risk affecting the country.Of the 174 Local Authorities,only 32 havesome form of sewage treatment and disposal facilities; only two have conventional treatment plants while 30 haveoxidation lagoons which can only handle organic waste.In Nairobi City,only 20 per cent of solid waste is collected andtaken to approved dumpsites.In rural areas,50 per cent of households dispose domestic waste in farms.This isassociated with the high incidences of environmental related diseases.Diarrhoea,due to poor hygiene,accounts for2.6 per cent of morbidity and affects 2.4 per cent women and 2.8 per cent men.The effect is more in rural areas thanin urban areas where 2.6 per cent and 2.2 per cent of cases are reported respectively.High poverty and low awarenesslevels are some of the factors for the disparities between urban and rural.Misuse of chemicals have now become aworld concern because of negative environmental and health impacts leading to global control programmes onchemical and wastes.Kenya is signatory to various international conventions on Persistent Organic Pollutants (POPs)and will remain committed to their implementation during the Plan period.
Climate change
There exists overwhelming evidence of climate change in Kenya and one of the apparent signals is the rapid anddrastic disappearing of glaciers on Mt.Kenya with scientists projecting that the ice cap on the mountain coulddisappear by the year 2020.Further,there have been widespread changes in extreme temperature in the country.Datafrom the meteorological departments show that cold days and cold night have become less frequent,while hot daysand hot nights have become more frequent.In addition,Lake Victoria and other lakes within the Rift valley like Nakuru,Turkana,Baringo,Naivasha and Elementaita have experienced serious declines in water levels.Similar drastic changeshave been observed in volumes of river flows.Climate change poses a serious challenge to Kenya's social and economic development.This change will lead to majorchallenges in the economy,human life and on the environment.Kenya is most vulnerable to climate change since thekey drivers of the economy (agriculture,livestock,tourism,forestry,and fisheries) are climate-sensitive.Coupled withthe country's low adaptive capacity to climate change,the country experiences a high level of vulnerability.Scientificevidence exists that Global Warming is leading to reduced snow caps with negative environmental implications.A National Climate Change Secretariat will be strengthened.
Bio Technology
There is no comprehensive policy on biotechnology and legislative framework to regulate access and exploitation ofgenetic resources.While collection of genetic materials for industrial purposes is going on,there is no mechanism formonitoring such activities.With increasing demands for genetic materials for use in biotechnology by the developedcountries,illegal collection of genetic materials has increased.This denies the country revenue from sale of suchmaterials and also her potential to develop its own biotechnology capacity and related industrial potential.In addition,capacity in the field is low hence research activities are minimal.
Integrated environmental planning
The preparation of the National Environmental Action Plan and the on-going initiatives to prepare the NationalEnvironment Policy are some of the efforts towards achieving the integrated planning initiative.Despite the legalprovision,the current planning approach is largely sector based and neglects the essential economic and social valuesassociated with the environment.Consequently,there is insufficient risk assessment in terms of impacts on theenvironment of proposed investments in various sectors hence the high risk of environmental and natural resourcesdegradation.The sector has not sufficiently demonstrated and communicated the economic and social benefits arisingfrom sound environmental management in a form that is easily assimilated with sector-based planning.In addition,there is inadequate capacity for monitoring environmental trends and lack of harmonisation of data collectionmethodologies,storage and access in the entire area of environment and natural resources.
Institutional and legal framework
In recognition of the importance of good governance in the environment and water sector,the government hasinstituted a number of legal and institutional reforms.The main one being the enactment of the EnvironmentalManagement and Coordination Act (EMCA) of 1999.The Act provided the avenue for the harmonisation of about 77sectoral statutes.However,the major challenge relate to low enforcement to the provisions of Act.This has beenoccasioned by inadequate institutional capacity to oversee its implementation and low level of environmental educationin the country.The low stakeholder involvement such as the public,civil society,institutions of higher learning and theprivate sector is another challenge.
5.3.3Programmes and Projects for 2008-2012
One Year Recovery Strategy
To address the impact of the post election crisis,the following strategies will be put in place in the short term:•Rehabilitation of water infrastructure destroyed during the post election violence; and•Provision of water to displaced persons in and out of camps.
Flagship Projects for 2008-2012
The sector will aim at implementing the following flagship projects within the Plan period:
Rehabilitation and protection of indigenous forests in the five (5) Water Towers:
This project entails fullrehabilitation of the five water towers of Mau Escarpment,Mt.Kenya,Aberdare Ranges,Cherangany Hills and Mt.Elgon.The current forest policy 1aims to promote sustainable management of the forests to serve as watercatchments,biodiversity conservation reservoirs,wildlife habitats and carbon sinks.The indigenous forests will provideimportant economic,environmental,recreational,scientific,social,cultural and spiritual benefits.Management willembrace preservation of religious and cultural sites,traditional medicinal sources,water catchments,habitats forendemic and threatened flora and fauna.Moreover,this will seek to introduce high-value tree species at farm level inorder to contribute to the targeted forest cover of 4 per cent by 2012.The initiative will introduce commercial treespecies in ASALs in order to control desertification and improve livelihoods.The ecosystem approach will be adopted in forest management.This will also involve Joint management withstakeholders,(KFS,KEFRI,local communities,civil societies,KWS,development partners and others) through forestconservation committees around each tower.This process will be supported by adaptive research for tree species andtheir suitability in ASALs.
Secure wildlife corridors and migratory routes:
Most wildlife corridors and migratory routes have been interferedwith by human activities.Strategies will be developed to reclaim them if wildlife is to continue providing the base forthe tourism sector.
Preparation of a National Spatial Plan (Land Use Master Plan):
This will involve collecting accurate andcontinuously updated mapping of land use patterns in Kenya and of tracking developments.This project will also entailundertaking both livestock and wildlife censuses and Zoning of land rural and urban areas currently unmapped.
Waste management system:
This will entail preparation of a Waste Management Strategy aimed at involving mainlythe Youth Groups.In addition,Dandora dump site in Nairobi and establishment of a solid waste management systemfor the City of Nairobi on a Public Private Partnership basis.This will set a trend to be followed by other municipalities.
Rehabilitation,Regeneration & Restoration of Nairobi Rivers:
The aim of the programme is to fully rehabilitate thecatchment basin of the Nairobi River in order to make it a recreation site.Other rivers like Ngong will also be coveredunder this programme.The involvement of the private sector will be enhanced to supplement government efforts inthe control of water pollution.In particular,the programme will be strengthened as a show case to other cities andtowns in the country.
Water resources information management:
This will entail rehabilitation and acquisition of new hydro-metric whichwill be installed in strategic and vulnerable water resources (surface and groundwater) country-wide,and be linked to WorldHydrological Observation Cycle (WHYCOS); rehabilitate 600 hydrometrological stations; capacities of WRUA's will be builtto collect records and monitor the data acquisition instrument.Groundwater Hydro-geological Mapping will be undertakenin Turkana and Marsabit for purposes of planning groundwater development in the two districts and replicated in other ASALdistricts.Formulation of four water Catchment Management Strategies (CMS) for Lake Victoria South; Ewaso Ngiro North;Ewaso Ngiro South and Athi catchment areas will be completed through stakeholder involvement.
Water harvesting and storage programme:
The recurrent floods of Western Kenya will be managed throughconstruction of large multi-purpose dams along Rivers Nzoia and Nyando.In addition,Water dykes will be constructedalong the lower reaches of Nzoia and Nyando Rivers.In addition,a 54 km inter-basin water transfer canal will beundertaken in the Rahole Area,connecting Tana River to Garissa District,and development of High Grand FallsMultipurpose reservoir with a storage of 5.4 billion cubic meters will be undertaken; the canal,other than supplyingwater will also serve to tame River Tana in lower reaches and also re-distribute water resources to Arid areas downstream.Improved water harvesting will particularly provide opportunities for the ASAL communities to achieve foodsecurity.Measures will be put in place in regions that continually experience drought and floods such as Kano Plains,Budalangi and ASAL areas to reduce water insecurity and vulnerability.
Urban Sewerage programme:
In order to improve sanitation and hygiene and reduce environmental pollution oftowns located on shared water basins,there is urgent need to undertake,liquid waste treatment feasibility studies atthe towns of Malaba,Lagdera,Lodwar,Wajir/Elwak and Liboi.These are areas where the water table is high,forcingthe local councils to adopt "Bucket latrines"which are unhygienic.The focus of this programme is to implementappropriate technological approaches in line with the Environmental Sanitation and Hygiene Policy 2007 to amelioratethe situation.Other urban areas especially within the lake Victoria Basin will be targeted under a joint initiative betweengovernment and UN Habitat
Water storage and harvesting:
The government will develop two multi-purpose dams with a total storage capacity of2.4 billion cubic meters along Rivers Nzoia and Nyando.An additional 24 medium-sized multi-purpose dams with a totalcapacity of 2 billion cubic meters will be undertaken to supply water for domestic,livestock and irrigation use in the ASALareas.They are Bunyunyu,Munyu,Londiani,Itare,Upper Narok,Chemesusu,Kiserian,Yatta,Kitui,Mwingi Thwake,Rare,Thiba,Umma,Rumuruti,Badasa,Archers' Post,Awasi,Kora,Ndarugu,Mwachi,Ruiru A,Siyoi and Nyahururu.
National water supply and sanitation:
The projects aim at expanding the Mzima pipeline to meet the currentdemands of the coastal towns including additional proposed resort cities of Lodwar and Isiolo.It will also cover urbanwater supply and sanitation in the satellite towns around Nairobi,Mombasa,Kisumu,Nakuru and Kisii alongside 26medium-size towns that have the potential to support manufacturing and tourism activities.These are Narok,Machakos,Maralal,Wajir,Wote,Hola,Chuka,Ruiru,Athi River,Siaya,Ol Kalou,Matuu,Maua,Moi's Bridge,Limuru,Moyale,Kapsiwor,Maseno,Kapenguria,Kitui,Lokitaung,Karuri,Lamu and Chogoria.Other project aimed at increasingwater coverage annually include construction of 180 water and sanitation projects,drilling of 140 boreholes andconstruction of 160 small dams/pans in ASAL areas.
Water resource information management:
This will entail rehabilitation of the hydro metrological network toreactivate 600 stations that are not functioning currently.In order to provide water to the ASAL areas,ground water hydro-geological mapping will be undertaken in Turkana and Marsabit.
Irrigation and drainage:
The main flagship project in irrigation will be the construction of the Tana delta project.The otherareas of focus will include expansion of the schemes in Bura,Hola,Kano Plains,Nzoia (Upper,Middle and Lower),Perkera,Kerio Valley,Mwea,Taita Taveta,Ewaso Nyiro North and Ngurumani (Kajiado) irrigation schemes.In addition the Yatta Canalwill be extended for another 100 km to cover Yatta District,parts of Kitui District and Mwingi District.The extension willalso involve construction of a 1 km uptake dam above the existing intake point along Thika River and repair of Mathautaand Munyu Dams to serve as the starting point of the extension of the canal.This will increase cropland substantially andboost agriculture that was previously dependent on rainfall.Drainage areas will also be expanded in provinces of western(Busia,Kakamega,Butere,Mumias,Bungoma,Teso) and Central (Thika and Nyandarua - North and South).Research willalso be carried out to enhance efficiency and productivity of rain fed agriculture.
Additional Programmes
In addition to the flagship projects,there are other supportive projects that will be implemented under this sector.Theseinclude:
Carbon offset scheme:
The initiative will exploit opportunities within the Kyoto Protocol on the establishment ofvoluntary carbon markets in order to promote conservation and compensation for environmental services.To this end,capacity to attract Clean Development mechanism projects will be enhanced.
Disaster preparedness:
Securing funding from global funding mechanisms to implement adaptation programmes in ASALs and high-risk zones.This will be accompanied by an improved disaster-preparedness strategy,including anearly warning system and environmental monitoring covering climatic events (e.g.droughts,floods,pestilences,seismic occurrences etc.),as well as initiation of a public awareness,avoidance and preparedness campaign.
Compensation for environmental services programme:
This programme will be undertaken in consideration of thecontribution provided by the environment and natural resources to the National Accounts.The programme willincorporate the valuation of environmental resources,amenities,and services into the overall economic activity toensure such resources are not over-exploited.It will entail the design and implementation of appropriate incentives inenvironmental management.
Exploration and Mining:
An accurate and detailed geological mapping of the country will be undertaken to provideinformation that may lead to the discovery of natural minerals of commercial value.As a result,the current explorationfor minerals and crude oil will be intensified.The private sector will be encouraged to participate in both small andlarge scale mining industry and to develop the geo-tourism sites as part of the tourism circuit within the country.Smallscale miners will be targeted for increased investments.
Invasive species:
Serious economic and ecological damage is caused by this alien and invasive species particularlyin ASALs.A number of initiatives are currently ongoing aimed at curbing the spread of this species.The governmentwill take lead in coordinating these initiatives so as to control further spread.
Trans-boundary waters:
The Nile Basin Initiative is supporting the rehabilitation and expansion of Bomet Water Supplyand Sewerage System to serve an additional 25,000 people and extension of pipeline by about 2 Km.It is also buildingearly confidence,through sensitisation and awareness,to communities in the basin in undertaking self initiationprojects,for the purpose of optimising resource usage.
Geological Mapping:
This will cover the remaining 20 per cent unmapped parts of the country bordering Somalia andsouthern Sudan (ELEMI triangle).This will include inventory,mapping and zoning of geo-hazard areas.
Linkages with institutions of higher learning:
The government will strengthen linkages with Universities and otherresearch institutions through joint capacity building in environment related disciplines especially through short termtraining,establishment of university-based Science Parks as centres of technological innovation and development,development of environmental and hydrological monitoring of programmes in major water catchments anddevelopment of effective and environmentally-friendly solid waste recycling technology usable at community level inmajor urban areas.The government,in collaboration with the universities will develop national research priorities inenvironment,water and sanitation to guide public and private sector research and management interventions.
5.3.4Policy,Legal and Institutional Reforms
In order to achieve environment integrity and sustainable resource management,the following reforms will beundertaken in the Plan period:•Revision of Environmental Management and Co-ordination Act (1999);•Development of Solid Waste Management Policy;•Formulation of a Research and Development Policy;•Revision of the Forest Policy and its subsidiary legislations;•Review of the Timber Act Cap 386 of the laws of Kenya;•Development of the Charcoal Policy;•Review of Water quality standards to ensure that they conform with the country's water situation and needs;•Enact a policy on trans-boundary water management;•Enact a policy on ground water protection;•Operationalisation of a national policy on mineral resources and mining;•Formulation of a national policy on the establishment of a national geological survey;•Development of implementation strategies for the National Environmental Sanitation and Hygiene Policy;•Implement an occupational health and safety policy.
5.4Population,Urbanisation and Housing
"Adequate and Decent Housing in a Sustainable Environment"
High population growth,rapid rural - urban migration,skyrocketing costs of housing construction materials and highcosts of housing finance and their implications on socio-economic development have been of concern and achallenge to the government since independence.The development of
Vision 2030
constitutes an importantframework for the government's commitment to improve the welfare of her people especially in urban areas whereplanning for the high population on scarce land amidst high costs of housing is a big challenge.Rapid urbanisationmainly due to rural-urban migration and high urban growth rate are significant dynamics impacting on the socio-economic development of the Kenyan society.This to some extent is a result of the limited capacity of planningagencies in terms of the requisite technology,human resources and financial outlay,to prepare timely andsustainable physical development plans.Consequently this has led to constraints in provision of water,sanitation,security infrastructure,housing and transportation.Urban areas are symbols of prosperity and thus are engines of growth.The concentration of activities in urban areasallows for Specialisation and exchange-processes which are essential to economic growth.Nairobi in its current state,for instance,contributes to about 50 per cent of Gross Domestic Product in the country.It is these attributes that havemade it a regional hub in terms of service provision.
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Kenya Vision 2030
aims to provide the country's population with adequate and decent housing in a sustainableenvironment.Improvement in the quality of life of all Kenyans – the supreme goal of
Vision 2030
– cannot be achieved iflarge sections of the rural and urban population are inadequately housed.The housing sector is characterised byinadequacy of affordable and decent housing,low-level of urban home ownership,extensive and inappropriate dwellingunits,including slums and squatter settlements.This is attributed to under-investment in low and middle-cost housing byboth the public and private sectors.Other constraints include an outdated legal and regulatory framework,uncoordinatedpolicy implementation,low private sector participation,insufficient capacity,poor governance,and inadequate financingto buyers and developers.In addition,research on low cost building materials and construction techniques has beenlimited thus not providing viable guidance to the development of the low cost housing in the sector.
5.4.1Situation Analysis,Emerging Issues and Challenges
Population
Population Size and Growth:
Kenya's population in 2007 was estimated at 37.2 million and is projected to increaseto 42.4 million in 2012.High population growth rates recorded in the country has had the effect of large householdsizes which affects resources available to household members.Population density in Kenya increased from 19 to 49people per square kilometre in 1969 and 1999.Population projections indicate that,Kenya's population will remain youthful in the 2008-2012 period.The high numberof young people in the population is a result of decades of high fertility rates and is a powerful force for continuedpopulation growth as more young people move into childbearing ages.The segment of the population aged 15 to 24years old form a critical resource for future development.Decisions made by these young people on timing and numberof children will have long-lasting consequences for Kenya's population growth,and hence national development.Giventhe sheer size of the youth in the population,it is important to invest in young people's health and development byhighlighting the potential benefits – in terms of building human capital,capitalising on the demographic dividend,andbreaking the intergenerational cycle of poverty.
Fertility:
The population growth patterns experienced both at the national and regional levels of the country have beenmainly driven by the three demographic processes; fertility,mortality and migration.The level of fertility has been amajor factor underlying Kenya's population growth since it has contributed more to the country's population growththan any other demographic event.The Kenyan population experienced high fertility levels in the 1970s with TotalFertility Rate (TFR) estimated at about 7.9 children per woman.In the early 1980s,TFR was estimated at 7.7 childrenper woman while in the late 1980s TFR was 6.6 children per woman and declined to 5.4 children per woman in early1990s.In early 2000,TFR was estimated at about 5.0 children per woman.Though fertility has declined to these levels,it is still high and would still keep the population young.Childbearing is also common among teenagers in the countrywith about 23 per cent of teenagers (ages 15 to 19 years) giving birth each year.
Mortality:
High mortality levels were recorded in the 1970s,showed signs of decline in the late 1980s and early 1990sbut experienced a reversal in mid-1990s mainly due to HIV/AIDS pandemic.Recent data show significant declines in HIVprevalence rates,from an estimated prevalence rate of 13 per cent in the mid-1990s down to 6.7 per cent in 2003 to about5 per cent in 2006.Life expectancy at birth for the country improved from 35 years in 1948 to 49 years and 60 years in1969 and 1989 respectively but declined to 57 years in 1999 mainly due to the HIV/AIDS pandemic.Life expectancy isprojected to have improved to 58 years; lower than was recorded in the 1980s and is expected to improve further.Thisimplies higher survival and therefore an increase in the proportion of those aging in the population.Infant mortality wasestimated at 184 deaths per 1,000 live births in 1948,declined to 118 deaths per 1,000 live births in 1969 and then to 66deaths per 1,000 live births in 1989 but increased to 77 deaths per 1,000 live births in 2003.
Migration
:Majority of the population in Kenya still reside in rural areas and hence most types of migration in thecountry are rural-urban and rural-rural migration.The rate of urbanisation has increased from 15 per cent in 1979to 18 per cent and 19 per cent in 1989 and 1999 respectively.Urban population size increased from 1.1 million in1969 to 2.3 million in 1979 to 3.9 million in 1989 and then to 5.4 million in 1999.This increase has mainly been asa result of rural-urban migration.The changes have however constrained resources in the existing urban centressince services did not grow in tandem with growth of the population.As a consequence of the increasing urbangrowth rates,major urban centres in the country are facing increasing housing shortages,high unemployment,poverty,crime and slums and informal settlements.
Urbanisation
Kenya is rapidly urbanising with an expected average growth rate of 3.9 per cent per year for the period 2005-2010.The population shows remarkable shifts in urbanisation levels having increased from 8 per cent at independence to19 per cent in 1989 and 19.4 per cent in 1999.urbanisation is estimated to have reached over 25 per cent in 2007and is projected to account for about 32 per cent of the total population by the year 2012.This growth is largely dueto a high level of rural-urban migration fuelled by rural poverty and a dwindling of the per capita ownership of farmingand grazing land.The urbanisation process in the country has also been uneven dominated by one primate city-Nairobi,with a population of about 2 million.This is about four times bigger than the next largest urban centre(Mombasa) with a population of 660,080.Kenyan urban centres are characterised by spontaneous growth and haphazard development,which has mainly takenplace outside urban planning intervention.Nationally,physical planning is beset by a complex institutional arrangementwhere plan formulation is undertaken by Central government whereas implementation is the responsibility of Localgovernment.This has led to physical development plans not being informed by the local needs and therefore does notaddress local realities resulting to apathy during implementation.The situation is exacerbated by the glaring disconnectbetween national economic planning process and physical planning.Consequently,the physical development planshave not been recognised as essential instruments for the development of urban centres,which are engines of growth.There are also wide discrepancies in terms of the level of urbanisation and the distribution of urban centres acrossregions.It is for this reason that the six flagship projects on metropolitan regions of Nairobi,Mombasa,Kisumu-Kakamega,Kitui-Mwingi-Meru,Wajir-Garissa-Mandera and Nakuru-Eldoret are highly necessary as a correctivemeasure that will spread the benefits of urbanisation across the country.This will lead to the establishment andoperationalisation of the Metropolitan Area Authority whose task will be to assist the central government and localauthorities undertake comprehensive physical planning and zoning for the six metropolitan regions,as well as todevelop and enforce standards for urban development.
Housing
The Kenyan housing sector is characterised by inadequate affordable and decent housing,low-level of urban homeownership (16 per cent) and extensive and inappropriate dwelling units including slums and squatter settlements.It isestimated that out of a total 150,000 housing units required annually in urban areas,only an estimated 35,000 areproduced.In the rural areas it is estimated that there is a need to improve the quality of over 300,000 housing unitsevery year.The shortage of housing for low-income households is particularly acute in urban areas,with only anestimated 6,000 units,or 20 per cent of all houses produced catering for this group.This is attributed to under-investment in low and middle-cost housing by both the public and private sectors.Other constraints include; poorgovernance; an outdated legal and regulatory framework; and the high cost of finance for housing both to long termdevelopers and the end users (buyers).The housing shortage is both for owner-occupier and rental housing. According to government surveys,the quality and quantity of low-income housing is better in rural areas than in urbanareas; In fact,the main problem of housing in the rural areas is not that of adequacy but that of quality and lack ofbasic infrastructural services.In the urban areas,overcrowding,lack of adequate sanitation and pollution characterize urban slums posing serious health risks to residents.Unplanned informal settlements,on the other hand,pose aserious challenge to the socio-economic development of the country.With the demand for new housing units in urban areas currently standing at 150,000 units annually and only 23 percent of this demand being met,the national gap is big and requires an urgent solution,the shortfall is more acuteamong low-income households whose present demand is about 48 per cent of total new houses required in Kenya.More than 80 per cent of new houses constructed are for high and upper middle-income earners.Considering thatmore than 60 per cent of the Kenyan population is younger than 25 years,it is clear that the demand for adequatehousing will rise steadily as those aged 20 and below reach adulthood and start family life.
Post-election violence impact on housing:
The housing sector was negatively affected by the 2007 post electionskirmishes that led to destruction of housing,leaving many Kenyans without shelter.In addition people lived asIDPs in different camps spread across the country.The impacts of these skirmishes were worse in slums andinformal settlements.In Nairobi a total of about 9,000 housing units were destroyed affecting close to 100,000residents.Other urban centres most hit by the post-election skirmishes were Kisumu,Eldoret,Kericho,Nakuru andNaivasha.
Stock and Quality:
The distribution of housing stock in Kenya is skewed in favour of the rural areas.For instancefrom the 1999 Population and Housing Census statistics,82 per cent of Kenya's housing stock is in the rural areasleaving only 18 per cent in urban areas.The quality of housing is however dictated by cultural and environmentalfactors.
5.4.2Programmes and Projects for 2008 - 2012
One Year Recovery Strategy
Specific initiatives in housing and urbanisation aimed at reversing the damages caused by the post-election skirmishesinclude:•Develop a strategy for resettlement of Internally Displaced Persons (IDPs);•Addressing safety and security issues;•Advocacy for Peace and co-existence;•Creating incentives to attract investment;•Re-Investment in basic infrastructure; and•Building of houses for IDPs.
Flagship Projects for 2008 - 2012
Prepare and implement strategic development and investment plans in six metropolitan regions (Nairobi,Mombasa,Kisumu-Kakamega; Nakuru-Eldoret,Wajir-Garissa-Mandera,Kitui-Mwingi-Meru).Similar plans will also be developedfor special border towns and all other municipalities.The flagship projects will include:•Preparation of a national land-use plan in order to facilitate better urban planning;•Installation of physical and social infrastructure in slums in 20 urban areas to make them formal settlements,permit construction of permanent houses and attract private investment;•Producing 200,000 housing units annually by 2012 under PPP and other initiatives ;•Establishing housing technology centres in each constituency to increase access to decent housing by promotinglocation-specific building materials and low-cost housing; Establishing a secondary mortgage finance corporation to increase access to housing finance; and•Enacting the Housing Bill,2006 to legislate for a one-stop housing development approvals mechanism to fast-track approval of housing plans and reduce the time cost of construction.
Other Programmes
Population
•Undertake the 2009 Population and Housing Census and Socio-Demographic Surveys to inform Policy andProgrammes;•Undertake Advocacy and Public Education and Communications on the effects of population change ondevelopment; and•Establish and strengthen partnerships and coalitions to mobilise support for policy and programmes.
Urbanisation
•Preparing Physical Development Plans for three Resort Cities (Isiolo and two others at the Coast;•Establishing waste management systems in selected Local Authorities; and•Preparation of integrated physical infrastructure investment plans.
5.4.3Policy,Legal and Institutional Reforms
Reforms on population,housing and urbanisation will include:•Review of the current population policy;•Review and harmonisation the existing legal and institutional framework governing urbanisation;•Enactment of the Housing Bill 2006,to legislate for a one-stop housing development approvals mechanism to fast-track approval of housing plans and reduce the time cost of construction•Enactment of the Landlord and Tenant Bill•Formulation and implementation of Urban Development Policy and the National Land Policy; and•Preparation of a markets development policy.
5.5 Gender,Vulnerable Groups and Youth
"Gender Equity in Power Resource Distribution,Improved Livelihoods for all Vulnerable Groups and a Responsible,Globally Competitive and Prosperous Youth"
In order to realise the aspirations of
Vision 2030
goals,the government will continue to mainstream gender intogovernment policies,plans,budgets and programmes as an approach geared at achieving gender equity in all aspectsof society.Moreover,the government will increase the participation of women through the affirmative action policy ofat least 30 per cent representation in all economic,social and political decision-making processes and platforms aswell as through economic empowerment.As a positive step to reduce vulnerability across gender lines,deliberateefforts will be made to reduce levels of poverty across the board,prohibit retrogressive cultural practices and socialills as well as improve access to essential services.In addition,the government will ensure that the country upholdsthe basic rights of children in line with internationally recognised standards.The government will also ensure that thecountry produces a globally competitive labour force inclusive of young people at all levels,through youthempowerment programmes and policies.
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5.5.1Situation Analysis,Emerging Issues and ChallengesGender
The government has introduced a number of initiatives on gender mainstreaming.This includes the appointment ofgender officers in all ministries and state corporations and the ratification of relevant International Instruments.However,despite these achievements,glaring gender gaps still exist in access to and control of resources and socio-economic opportunities.A case in point is that,only 3 per cent of Kenyan women own title deeds thereby,minimisingtheir opportunities to access credit.It is important to note that the participation of women in modern sector wageemployment has risen gradually since independence from 12.2 per cent in 1964,29 per cent in 1999 to 30 per centin 2007.Nevertheless,women are still grossly under represented in senior decision-making positions within the civilservice.For instance,in the top most levels of the civil service,male representation stands at 84 per cent,against 16per cent female representation.At the lower cadres of the Civil service,female representation stands at 74 per cent,with 26 per cent male representation.The participation of women in senior decision-making positions is constrainedby mobility and time limitations resulting from the challenges of trying to reconcile family duties,career development,productive activities and management of community resources.While women account for slightly more than half of the total population (50.7 per cent) and comprise a large votingpopulation,they are still under represented in strategic decision-making processes.For instance,in 2002,the total offemale Members of Parliament was 10 translating to 4.8 per cent.In the current 10th Parliament,only 21 Membersof Parliament are women,representing a paltry 9.6 per cent.The following are the ratios of male to femaleappointments in the Grand Coalition Government:•7 female Ministers as compared to 35 male Ministers;•6 female Assistant Ministers as compared to 46 male Assistant Ministers;•21 female MPs as compared to 200 male Members of Parliament;•11 female Ambassadors/High Commissioners as compared to 29 male Ambassadors/High Commissioners;•6 female Permanent Secretaries as compared to 38 male Permanent Secretaries; and•0 female against 8 male Provincial Commissioners.Gender specific violence and vulnerabilities prevent particularly the female gender from enjoying a high quality of lifeand equal opportunities.For example,reported cases of domestic violence and rape (or attempted rape) have been onthe increase.Similarly,the girl-child health educational and career development has been negatively affected byretrogressive cultural practices such as female genital mutilation (FGM) and early marriages.Empirical evidence reveals that there is a significant gap in poverty levels between female headed and male headedhouseholds.In rural areas,48.8 per cent of male headed households were classified as poor as compared to 50 per centfor female headed households.This poverty gap does not appear significant in rural areas when compared to urban areas,where 30 per cent of male headed households are poor while female headed households constituted 46 per cent.Following the post election violence,men and women were affected differently numerous cases of women's rightsviolations such as rape were among the most immediate challenges.In total,354 cases of Sexual and Gender Based Violence (SGBV) were reported between December 24th,2007 and February 29th 2008.Assessments show thatmany other SGBV went unreported.In addition,women formed the majority of Internally Displaced Persons (IDPs) inthe camps.Several women experienced trauma due to the loss of family members and disrupted social ties,especially those in cross-cultural/inter-ethnic marriages.In addition,pregnant women,lactating mothers and peopleliving with HIV/AIDS were exposed to higher risks of malnutrition and deteriorating health.Overall,although the post-election crisis caused a huge economic impact affecting both genders,women suffered more from the loss of lives,property,agricultural livelihoods and businesses.However,the extent of losses for both genders was broadly experienced,extending from materials and equipment for the home; milling facilities and access to marketing points.
Vulnerable groups
Vulnerable persons are mainly Orphans and Vulnerable Children (OVC),Persons with Disabilities (PWDs),the agedpersons,offenders and ex-offenders,widows,widowers,internally and externally displaced persons,marginalisedpersons and pastoralists living in the Arid and Semi Arid Lands (ASAL),among others.All these groups are faced withmultiple challenges in their daily life including high level of poverty and various forms of deprivation.It is estimatedthat these vulnerable persons comprise about 40 per cent of the total population.The number of vulnerable children remains high due to the diverse nature of vulnerabilities.There are about 2.4 millionorphans in the country,which includes over 1.2 million children orphaned due to HIV and AIDS.Additionally,there are3,500 children in 25 Statutory Children Institutions and 39,840 OVC under the Cash Transfer Programme.The numberof children in need of care and protection has been on the increase.Over 60,000 cases involving children are handledin the districts every year.Helpline 116 toll free has been launched by the Children's' Department and will be devolvedto all provinces where children can get advice and counselling services when in distress.In addition,child labour inKenya is quite high.Although this situation has been acerbated by poverty it nevertheless constitutes a significant shareof household income.The unfortunate trade off is that children who sacrifice schooling for employment are highly likelyto be poor as adults.Persons with Disabilities (PWDs) in Kenya consist of approximately 3.7 million people.The majority of these people livea vicious cycle of poverty due to stigmatisation,limited education opportunities,inadequate access to economicopportunities and access to the labour market.Accordingly,the government enacted The Persons with Disabilities ActNo 14 of 2003 to ensure that the issues and concerns of PWDs are mainstreamed.Only 18 per cent of Kenya's labour force contributes towards some form of pension.Lack of income in old age explainswhy the incidence of vulnerability among the aged in Kenya is high.This is supported by the fact that the poorest agegroup consists of individuals aged 56 years and above.In rural areas,this group forms 55 per cent,while in urbanareas,the group consists of 48 per cent (source:KNBS).Interestingly,the incidence and depth of poverty of house holdheads increases with age and is much more evident in rural areas than in urban areas.Eighty per cent of Kenya consists of Arid and Semi-Arid Lands (ASAL),which are prone to disasters such as droughts andfloods.An estimated population of 7.4 million constitutes the vulnerable and food insecure population in these areas.Tofurther compound the problem,Kenya has a huge refugee burden.The country currently plays host to an estimated239,800 refugees from the region.Most of these refugees lack the capacity to manage risks such as unemployment,illness,disability and old age.Most of these refugees are women and children. All the aforementioned vulnerable target groups will require adequate mechanisms to address their concerns throughprogrammes and projects to alleviate their conditions and enable them to get equitable opportunities to participate insocio-economic activities.The post election crises compounded the plight of these vulnerable groups throughout thecountry.An estimated 350,000 people who were displaced had to seek refuge in 181 camps scattered throughout thecountry.Although profiling of IDPs in various camps was undertaken,there were no targeted interventions specific tothe PWDs as a special category of persons.Hence,the general targeting did not take into consideration the specialneeds of PWDs.Moreover,no tracking was done for the IDPS who either took refuge with relatives or fled to theirancestral home areas.This situation necessitates an urgent need to profile the IDPs and for a needs assessment to be undertaken of thePWDs to identify their special needs for resettlement and reintegration.People living with HIV/ AIDs were adverselyaffected by the post election violence.Indeed,many had their treatment regimes disrupted as a result of the crisis and their subsequent displacement.The PLWHA,especially lactating mothers and children were further exposed to the risk of serious malnutrition and deterioration of health especially in cases where food was unavailable.
Youth
In Kenya,the youth are defined as persons aged between 15 and 35 years.Currently,young people constituteapproximately 38 per cent of the population,of which 57 per cent are female.Notably,it is at this age spectrum thatbeneficial human capital formation is achieved.Decisions made during this transitional period have long term impactson how human capital is kept safe,developed and deployed.The number of youth is projected to increase from the current 11 million to 16 million during the period under review.Such a significant change in the number of the young people is likely to lead to increased crime,drug and substanceabuse and other symptoms of social disorder.Consequently,initiatives to mitigate such vices need to be put in place.Minimal involvement of young people in gainful employment and economic participation as well as their exclusion fromdecision making poses a threat to the stability of this country.For instance,despite the fact that 60 per cent of the totalactive labour force in the country consists of young people,80 per cent of the unemployed are youth.In addition,92per cent of the unemployed youth have no vocation or professional skills training.On the other hand,about 500,000graduates enter the job market every year.Unemployment among the youth leads to an increase in crime rates,whichmay explain the increasing formation of youth criminal gangs and militia groups in Kenya.Over 60 per cent of allconvicted criminals in Kenya are young men aged between 16 and 25 years old.This may be a credible reason whythe youth played a big role in the 2007 post-election violence.Over 60 per cent of new HIV infections are diagnosed among the youth.The most affected age bracket among womenis the 25 – 29 age group,while the most affected among the men is the 40 – 44 age group.It is evident that HIV/ AIDSprevalence is highest among the economically active age group.The situation is further aggravated by self destructivetendencies such as drug abuse,high risk sexual behaviour and teenage pregnancies.The 2007 post election violence and related events demonstrated that having a large number of relatively welleducated but unemployed youth is not just a serious deterrent to economic growth,but also poses a real threat tonational security.During the chaos,the youth played the role of combatants and engaged in destructive activities andconfrontations with law enforcing officers.In urban areas,many assumed the role of landlords and forcefully extortedrent and protection fees.Many youth,particularly those living in low income areas,effectively engaged in acts ofbanditry during the strife.Enormous challenges facing the youth were exposed such as their exclusion andmarginalisation from decision making policies that directly affect them.In addition a number of the youth (particularlygirls) suffered sexual and gender based violence.The violence also had an adverse effect on athletics in the sense thatthe country lost a number of prominent athletes in the Rift Valley province.In addition,athletes who were in theprocess of preparing for major International competitions could not do so adequately due to the state of insecurity inthe country.It therefore became evident that there is a lack of operationally effective mechanisms of integrating themajority of Kenyan youth into mainstream economic activities.
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FIRST MEDIUM TERM PLAN 2008 - 2012
5.5.2Programmes and Projects for 2008 – 2012
In order to deal with the challenges previously highlighted (and other emerging issues),during 2008 – 2012 thegovernment will pursue the following projects and programmes:
Gender
One Year Recovery Strategy
•Develop gender disaggregated profiling of IDPs;•Introduce programmatic short-term interventions to provide psycho-social support for IDPs and support peacebuilding initiatives;•Enhance security in the affected areas;•Actively support the participation of women at all levels; and•Establish committees for peace building and reconciliation efforts.
Flagship Projects for 2008 - 2012
Gender mainstreaming:
This will be introduced into all government policies,plans and programmes to ensure thatthe needs and interests of each gender (i.e.women and men,girls and boys) are addressed.There will be a deliberateeffort to recognise and acknowledge the various ways in which women make a contribution to the economy andindeed,the society as a whole.This will bring a considerable degree of gender awareness in all ministries andgovernment agencies.Furthermore,the operationalisation and strengthening of gender divisions in all ministries andstate corporations will be implemented to aid the gender mainstreaming process.
Gender disaggregated data:
This information that accurately portrays the gender balance in all sections of thecountry will be availed to form the basis for developing gender-sensitive policies,plans and programmes.
Affirmative Action Policy:
Once this policy is instituted,it will ensure that women have at least 30 per centrepresentation in recruitment,promotion and appointment at all decision making levels.The aim of this is to increasethe number of female participation and representation.
The Women Enterprise Fund:
The fund will continue to provide Kenyan women with access to alternative financialservices.It is expected that the loans women will access as a result of the establishment of the fund will have a positiveimpact on family welfare.In addition,it will increase the estimated earned incomes (purchasing power parity).By usinga group approach,it is envisioned that the fund will serve to strengthen women's voices and bargaining power withinthe home as well as the wider community.
Additional programmes:
These will be implemented in close collaboration with other ministries and governmentagencies including:•Promote campaigns to eliminate retrogressive cultural practices such FGM and early marriages;•Double the number of births attended to by skilled health personnel;•Reduce the rate of high risk sex through increased access to safe sex methods;•Use the de-centralised funds to provide social amenities at close proximity in order to reduce the amount of timetaken by people to access services; and•Put in place an efficient legal system to help protect the rights of people in order to reduce gender-based violenceand any human rights violations.
Vulnerable Groups
One Year Recovery Strategy
The government,in collaboration with stakeholders,will implement the following projects to help in the 2007 post-election recovery:•Coordinate humanitarian relief efforts in the resettlement of IDPs;•Reintegration of IDPs;•Addressing special needs of the PWDs;•Facilitate the provision of emergency aid and supplies to the PWDs in camps and host communities;•Establish committees at various levels,with PWDs representation to oversee the implementation of emergencyrelief operation and facilitate protection of the displaced;•Provide more targeted psycho-social counselling programmes to People Living with HIV and AIDS (PLWHAs),placing emphasis on children and the physically challenged in the resettlement areas;•Facilitate access to ARV treatment in sites close to resettlement areas,including a programme to supplement theprovision of food supplement for a period of six months.
Flagship projects for 2008 - 2012
Establishment of a consolidated Social Protection Fund:
This will be established for cash transfers to Orphanedand Vulnerable Children (OVCs),the elderly and other persons facing vulnerabilities.
Implementation of the Disability Fund:
This fund will be inclusive of appropriate budgetary allocations to providefinancial assistance to Persons with Disabilities for their socio-economic empowerment.
Representation of PWDs in decision making processes at all levels:
This will ensure that issues that directly affectthe PWDs are adequately addressed in policies and legal frameworks,programmes and projects.Other programmes:These will include:•Developing an integrated data management system for vulnerable groups;•Empowering children through improved children rehabilitation programmes;•Increasing the level of public awareness on the needs,aspirations and capacities of vulnerable persons;•Establishing the National Drought Contingency fund;•Enhancing the Hunger Safety Nets Programme;•Implementing HIV/AIDS programmes;•Strengthening Child protection programmes;•Enhancing alternative family care services (adoption,foster care,and guardianship);•Eliminating child labour,discrimination and malpractices as well as other retrogressive practices causingvulnerabilities among the target groups;•Improving and expanding existing prison penal institutions for youthful offenders,aged,and other vulnerablegroups; and•Restructuring pension schemes to increase savings for the old in order to reduce their dependency.
YouthOne Year Recovery Strategy
The government,in partnership with other stakeholders,will implement the following projects to address the 2007post-election violence:•Peace building and reconciliation programme targeting the youth;•Equipping the youth with knowledge,attitudes and skills in conflict resolution to campaign for peaceful coexistence in their neighbourhood and beyond; and•Engage the youth in reconstruction of the infrastructure.
Flagship projects for 2008 - 2012
There will be full integration and harmonisation of issues affecting the youth into every aspect of public policies andprogrammes across all ministries and government agencies.This will produce more focussed,responsive and youthoriented strategies.
Affirmative action policy:
The policy will ensure that the youth have a 30 per cent representation in appointments topublic service,management and development committees,political,social and economic sectors.The needs of theyouth will therefore be implemented to increase their representation and participation.
Revision of education and training curriculum:
This will be conducted at all levels of learning to improve theproduction of skills that are demand-driven.Further,the curriculum will teach behavioural and life skills in order toimpart positive character traits that will help the youth to make appropriate choices in life.
Revitalisation of Youth Polytechnics:
This will facilitate the training of young people in technical,vocational andentrepreneurial skills in an effort to increase their productivity and equip them with skills to participate fully inproductive activities.In addition,they will also be equipped with creative skills to deal with advances in technology.
Increase of allocation to secondary and tertiary level bursary programmes:
The increase in allocation of fundswill greatly increase the opportunities particularly for destitute young people to continue with education irrespective oftheir poor background.It will also reduce the burden on parents who are unable to pay for their children's secondaryand tertiary education.
The Youth Enterprise Development Fund:
The youth will benefit from accessing this Fund since effectivemechanisms will be put in place for easier access to credit and collateral.In addition to accessing the Fund,the youthwill be effectively equipped with appropriate skills to creatively engage in economically viable activities.
Youth Empowerment Centre:
Centres will be rehabilitated or established in every constituency in the country.Thepurpose of such centres will be to creatively engage young people with a view to tap young talent and createopportunities for them.A further purpose of these centres will be to minimise the prevalence of drug and substanceabuse among the youth.The centres will be equipped to provide services such as counselling and health services,ICTfacilities,library and information services,performance and training facilities in music,dance and the performing arts.The centres will also provide basic literacy and continuing education opportunities for school leavers in eachconstituency.
International Academy of Sports:
This Academy will be set up at Moi International Sports Centre Kasarani where landhas already been earmarked for development.This will be an institution for advanced training in all areas of sports.
Moreover,it will cater for top level skills development of the sports men and women whose talent is tapped anddeveloped from the grassroots level countrywide.The Academy will also train sports administrators,instructors,andcoaches.Further,it will serve as an international centre for excellence in sports and thus contribute to Kenya's tourismpackage.
Regional Sports Stadia:
The government will establish 30 regional stadia around the country to promote thedevelopment of sports within each of the regions as well as tap the immense talent of the youth.
Establishment of a Sports Lottery Fund:
The Fund will provide a tool for raising funds targeting sports development.It is estimated that the lottery fund will have the potential to inject more than Kshs 500 million into the sports budgetannually.The funds raised will then be used for the less developed sports in the country and to supplement the budgetsof major sports events.
International Centre for Arts and Culture:
This Centre will be located at Moi International Sports Centre,Kasarani.Itwill house a National Hall of Fame to honour contributions and recognise the special talent of Kenyans from all walksof life in the areas of sports,film,music,culture and other areas.
One billion tree planting campaign under the "Trees for Jobs Programme":
This Campaign will be implementedorder to engage the youth,address the global campaign on environmental conservation and help increase the forestcover of the country.
Roads 2000 and other Labour intensive public projects:
The Roads 2000 project is currently underway under theimplementation of the Ministry of Roads and Pubic Works.The objective of this project is to create short-term labourintensive employment for young people.
Additional programmes
•Campaign programmes to reduce new HIV and AIDS infections,teenage pregnancies and drug abuse among theyouth;•Intense youth rehabilitation programmes for drug addiction and criminals;•Promotion of a sustainable reading culture through expansion of Kenya National Library Services (KNLS); and•Establish a systematic programme to document,conserve,preserve and disseminate the music and danceheritage of Kenya.
5.5.3Policy,Legal and Institutional reforms
The policy,legal and institutional reforms to be addressed will include the following:•Implementing a national policy on FGM;•Developing and implement the national policy on Children's rights;•Developing a National Youth Council Bill;•Implementing the Sports Bill and Kenya National Sports Stadia Authority Bill;•Revising the Kenya National Library Act Cap 225;•Developing a national music policy;•Developing a national cultural policy;•Implementing the Adult and Continuing Education policy;•Developing a National Policy for Youth Polytechnic and Vocational Training;•Implementing the Betting Lotteries and Gaming Act (Cap 131 of 1966); and•Developing a national policy on the Ageing and Elderly.
6. THE POLITICAL PILLAR
"Moving to the Future as One nation"
6.0Overview
The government is committed to a wide ranging governance reform programme over the five year plan period that will takeinto consideration all the lessons learnt from the 2007 post-election crisis.During the ERS period,the country madeconsiderable progress in the areas of governance,security and the rule of law.With the launch of
Vision 2030
,thegovernment seeks to focus on reforms already initiated in the sector.This will entail not only initiating new programmes,but also ensure respect of rights of citizens in law enforcement.It will also deal with any emerging governance and securityissues during the Plan period.The formulation of these strategies,projects and programmes will be guided by the PoliticalPillar of Vision 2030,which envisions
"a democratic political system that is issue-based,people-centred,result-oriented and accountable to the public"
.Kenya has learnt a lot from the 2007 post-election crisis.Events that followed the 2007 election and the path thatKenya has pursued in returning to normalcy have demonstrated that,despite the remarkable progress made ingovernance and the rule of law,a lot still remains to be done.Furthermore,a highly accelerated reform effort is nowrequired to move the country to the path projected in the
Vision 2030
.The sector experienced psychological traumaparticularly the Electoral Commission of Kenya,the Judiciary and the Police Force.For the first time sinceindependence,the relations between some of Kenya's 42 ethnic communities became strained and took a negativeturn towards violence of a magnitude that the country has never witnessed before.Hence,there is an urgent need toaddress and solve the underlying reasons behind the ethnic tensions,violence and destruction of life and propertyexperienced in Kenya.To this effect,the strategy for governance and the rule of law will focus on rebuilding confidence among Kenyans thattheir access to justice is guaranteed.Electoral disputes as well as other types of disputes will need to be resolvedthrough legally-provided channels.Moreover,structures need to be put in place to ensure that Kenyan citizens can infuture participate in free,fair,credible and decisive elections.
6.1Governance and the Rule of Law6.1.1Situation Analysis
In the Governance,Justice and Law and Order sector,progress since ERS has included the creation of a policy-focusedMinistry of Justice and Constitutional Affairs,as the flagship reform institution in the sector.The government has alsoenacted the Anti-Corruption and Economic Crimes Act,2003 (No.3 of 2003),which facilitated the creation andoperationalisation of the Kenya Anti-Corruption Commission (KACC),Kenya Anti–Corruption Advisory Board and SpecialMagistrates (to adjudicate over corruption and economic crime cases); and enactment of the Public Officer Ethics Act,2003 (No.4 of 2003).The legal framework for the fight against corruption was bolstered following the enactment ofthe Statute Law (Miscellaneous Amendment) Act,2007 which enhances KACC's asset recovery and investigativepowers,while making public officer wealth declarations publicly accessible.Other key governance institutions that have been established during the period include the National Anti-Corruption Campaign Steering Committee (NACCSC),the Public Complaints Standing Committee (PCSC),and the Kenya NationalCommission on Human Rights (KNCHR),the Kenya National Audit Office (KENAO) and the Public Procurement Oversight Authority (PPOA).On its part,the Department of Public Prosecutions (State Law Office) established two new specialisedunits,to deal with Anti-Corruption,Economic Crime,Serious Fraud and Asset Forfeiture,Counter-Terrorism,Narcotics,Organised Crime and Money Laundering.In practice,the Office of the Attorney-General continues to institute and sustain prosecutions of persons involved incorruption and economic crime,while KACC produces publicly accessible quarterly and annual reports on the progressmade in anti – corruption work (investigations,prevention,public education and asset recovery).Further,the AttorneyGeneral produces an annual report on the status of the prosecution of cases referred to him by KACC.To address thelong-standing issue of pending bills,a Pending Bills Committee was established in 2005 to review and advice on allpending contract bills.By July 2007,this committee had reviewed pending bills in the amount of Kshs.89.97 billion underthe development vote and Kshs.15.07 billion under the recurrent vote.The work of this Committee continues to date.The constitutional review process was re-started in 2003,and led to the proposed New Constitution of Kenya,whichwas subjected to a national referendum on 21st November 2005.Following the rejection of this Draft Constitution,thegovernment set up a Committee of Eminent Persons in 2006 which received stakeholder views on the way forwardand recommended a national healing and reconciliation process; and an inclusive multi-stakeholder approach tofinalising the constitution,with an emphasis on the contentious issues.The Judicial Commission of Inquiry into the Goldenberg Affair was established in 2003 to look into the most egregiouscases of corruption.Its report was completed in 2005 and was thereafter adopted by the government on 9th January2006.It is currently being implemented through a number of measures,including prosecution of suspects,legal andlaw reform and administrative action.Further,a taskforce on Truth,Justice and Reconciliation Commission establishedin 2003 received stakeholder views and provided the government with specific recommendations on the way forward.Finally,in order to enhance the legal framework for good governance,the following laws have been enacted and arenow in force:Public Procurement and Disposal Act (2005); Public Procurement and Disposal Regulations,2006,Political Parties Act,2007,Kenya National Commission on Human Rights Act,2002,Government Financial Management Act (2004); Privatisation Act,2005,Public Audit Act (2003) and Witness Protection Act (2006).A modernisedCompanies Act is now in its final stages of drafting.Progress in the area of rule of law,including justice and penal reform,has focused on capacity enhancement.As a wayof increasing the capacity of the Judiciary,a total of 37 judges were appointed,and 150 magistrates hired during theperiod.In addition,10 senior administrators and 58 clerical officers were employed.An annual colloquium for judgeshas been held annually since 2004,while formal training programmes are firmly in place for heads of station,accountants and executive officers,as well as induction courses for all newly recruited magistrates.Prisons officershave also been trained extensively in human rights,as well as specific skills training relating to modern managementof rehabilitation and reformation programmes.In a major step forward for commercial and civil justice,the Companies and Civil Registries have been refurbished andautomated,while automation of select registries (Public Prosecutions,Registrar General and Public Trustee) is in progress.Further,a draft bill on Alternative Dispute Resolution (ADR) has been developed,while the Chief Justice-appointed Rulesand Expeditious Disposal of Cases Committee has completed a report on the efficacy of court rules and procedures (andalternatives such as ADR),which now awaits stakeholder validation.In addition,adjudication of complaints againstadvocates has been improved following the promulgation of rules under Section 54 (3) of the Advocates Act.With regard to infrastructure,a total of 40 courts have been renovated,refurbished or built anew,while high courtcommercial divisions have been established in Nairobi and Mombasa.In addition,the budgetary provisions for the Prisons department have been significantly enhanced,with ring-fenced resources for staff housing; and tools andequipment provided for inmates' skills development.Finally,in order to deepen penal reform,the Community Service Orders (CSO) Act is now fully operationalised,with all judicial and probation officers trained on its implementation.Further,the Prisons Act has been fully reviewed in linewith modern management and human rights practice.Beyond the ERS,the specific focus on governance and the rule of law has mainly been through the Governance,Justice,Law and Order Sector (GJLOS) Reform Programme.In addition to infrastructure and capacity improvements,the programme has focused on the modernisation and reform of policies,laws and strategies.Specific policy andstrategy efforts undertaken to date include the National Anti-Corruption Plan (NACP) and the related GovernanceStrategy for a Prosperous Kenya; National Prosecution Policy; Legal Aid and Education Policy (supported by a pilot Legal Aid and Education programme commenced in the 2007/08 fiscal year); Action Plan on Gender-Sensitive Legal Reforms;Child Adoption Guidelines and a National Policy on Orphans and Vulnerable Children.A further key initiative known asthe National Action Plan on the Promotion and Protection of Human Rights is at an advanced stage of implementation.Comprehensive policy and legal frameworks are under finalisation in the areas of "plea bargaining"and legaleducation.Sector-specific laws passed in the Ninth Parliament include the Sexual Offences Act and the Political Parties Act,while other laws,including the Children's Act are under review.The new bills presently under finalisation includethe Elections Bill,Marriage Bill,Matrimonial Property Bill,Domestic Violence (Family Protection) Bill,PrivateProsecutions Bill,Companies Bill,Insolvency Bill,Partnership Bill and Small Claims Courts Bill among others.Significantly,national case law reporting through Kenya Law Reports,has been re-introduce for the first time in 20years.Other new innovations in the sector include specialised anti-corruption tools such as the Whistleblower (BKMS)system and a computerised investigation system established at KACC.Additionally,the provision of a modern researchand library centre for Parliament is now 80 per cent complete.It is important to note that the Electoral Commissionmade progress in computerising its voter register and reviewing the electoral boundaries.Further,the Laws of Kenyaare now freely available on line via the National Council on Law Reporting.
6.1.2Emerging Issues and Challenges
Despite the recent progress made within the sector,the areas of governance and the rule of law are still faced withseveral challenges that must be addressed for
Vision 2030
to be effectively realised.In so doing,the emphasis ofMTP 2008-2012 (as the first five-year time horizon for
Vision 2030
) will be focussed more on structural challenges,which will create a systematic basis for dealing with operational and administrative constraints.The challengesinclude the following:•Inadequacy of the current Constitution and the need for a modernised,rights-based and democratic constitutionalorder especially in the light of numerous constitutional reform efforts;•Inadequate and outdated policies,laws and regulations with regard to governance,human rights,justice and thewider rule of law;•Inadequate commitment to patriotism,national values and norms that uphold good governance (democracy,ethicsand integrity,human rights,justice for all and respect for the rule of law) and national cohesion at the individual,institutional and national levels;•Ineffective justice and dispute resolution mechanisms to deal with disputes,conflicts,injustice,rights abuses andoutright crime(particularly contact crime)– in light of the 2007 post-election crisis;•Low public confidence in governance and rule of law institutions,especially after the events succeeding the 2007elections; 127
THE POLITICAL PILLAR
•Inadequate regard for the social and human dimensions of governance,justice,law and order; particularly theneed for post-trauma counselling for both victims as well as serving officers;•Highly under-capacitated or under-motivated institutions; and•Weak inter-agency cooperation and cross-agency collaboration across governance and the rule of lawinstitutions.
6.1.3Programmes and Projects for 2008 - 2012
Programmes and projects to be implemented within this plan period are categorised into three broad groups,namely:•Flagship projects,which take into account the post-2007 election crisis and therefore aim to build a stronggovernance and rule of law foundation for the achievement of
Vision 2030
;•Other new and ongoing programmes across four strategic priority areas; and•Sector-wide initiatives within the scope of the GJLOS Reform Programme.
Flagship Programmes and projects for 2008 - 2012
Following the signing of the Accord in February 2008,a 90-day National Reconciliation and Emergency Social andEconomic Recovery Strategy was developed to address pressing issues of recovery,resettlement,reconstruction,rehabilitation and reconciliation.This Strategy would also initiate steps towards building a firm and solid foundation forthe future.During the early part of the Medium-Term Plan period,the following national initiatives will be undertaken:
Constitutional Reform:
A draft new Constitution will be finalised and presented to the general public through anational referendum.The specific measures that will go into the new constitution will be drafted by experts,stakeholders,various leaders and legislators.It will take full account of the nation's history,draft constitutions that werepresented to Kenyans in 2005,the 1963 constitution and all the amendments made to it after that date.
TJRC Process:
An independent Truth,Justice and Reconciliation Commission (TJRC) will begin its operations in2008/09 – after the necessary legal framework is put in place.It is expected that the TJRC will complete its work within two years of its establishment.
Kriegler Committee:
The Independent Electoral Review Committee (IREC) was established in the 2007/08 fiscal yearwith the mandate to investigate all aspects of the 2007 Presidential election.It is expected to finalise its operationsand present a comprehensive report to the relevant authorities in the 2008/09 fiscal year.
Commission on Post-Election Violence:
This non-judicial Commission has the mandate to investigate the facts andcircumstances related to acts of violence that followed the 2007 Presidential Election.Having been established in the2007/08 fiscal year,it will finalise its operations and present its report to the relevant authorities in the 2008/09 fiscal year.
National Cohesion:
In order to promote a lasting national cohesion,a permanent Ethnic and Race RelationsCommission of Kenya will be operationalised into law in the 2007/08 fiscal year.Thereafter,it will commence itsoperations in the 2008/2009 fiscal year,to deal with grievances arising from inter-ethnic relations,and particularly theproblem of negative ethnicity.
Post-Election Legal Counselling:
Kenya's pilot Legal Aid and Education programme will be enhanced and fast-tracked in its six pilot locations.It will have a focused legal counselling component directed at Kenyans affected andtraumatised by the post-election events.
Other Programmes
In addition to the Flagship projects,which are national in nature,other programmes in the area of governance and therule of law will be guided by four main initiatives as stipulated in the Political Pillar of
Vision 2030
,namely:•The Rule of Law;•Electoral and Political Processes;•Democracy and Public Participation; and•Transparency and Accountability.The
Vision 2030
initiatives will therefore be delivered through the following programmes:•Legal,Ethics and Constitutional Reform Programme;•Human Rights Programme;•Legal Education Programme;•Legal Services Programme;•Dispensation of Justice Programme;•Judicial Reform Programme;•Audit Services Programme;•Legislation and Oversight Programme;•Electoral Processes Programme;•Anti-Corruption Programme;•Prison Services Programme;•Probation and After-care Services Programme; and•Governance,Justice,Law and Order Reform Programme.
Strategies for delivering Programmes and ProjectsThe Rule of Law:
Under the Rule of Law initiative,the
Vision 2030
aspires towards
"adherence to the rule of law applicable to a modern,market-based economy in a human rights-respecting state"
.The specific goal for 2012 is toenact and implement a legal and institutional framework vital for promoting and sustaining fair,affordable andequitable access to justice.The specific strategies will involve:•Aligning the national policy and legal framework along the chain of justice,with the needs of a market-basedeconomy,national human rights and gender equity commitments;•Increasing service availability and access including reducing barriers to justice;•Streamlining the functional organisation and introducing professionalism in legal and judicial institutions,(including police and penal institutions) to enhance inter-agency co-operation; and•Inculcating a culture of compliance with the law and decent human behaviour
Electoral and Political Processes:
Under
Vision 2030
,the Electoral and Political process aims at promoting
"genuinely competitive and issue-based politics"
.The overall goal for 2008-2012 is to enact and operationalise the necessary legaland institutional frameworks to support issue-based political processes.The strategies to be implemented include:•Introducing laws and regulations governing political parties;•Enhancing the legal and regulatory framework governing the electoral process;•Conducting civic education programmes to widen knowledge and participation among citizens,leading to aninformed and active citizenry;•Strengthening laws on non-discrimination to promote the inclusion of women and disadvantaged groups intoelectoral and political processes; and Enriching the quality of parliamentary debate by providing Members of Parliament with relevant information onproposed laws and policies.The following is a summary of the envisaged Electoral and Political Process programmes:
Democracy and Public Participation:
Under Democracy and Public participation,the Vision 2030 underscores a "people centred and politically engaged open society"
.Accordingly,the goal for 2012 is to enact and operationalise necessary policy,legal and institutional framework to enhance democratic participation.The specific strategies will include:•Pursuing constitutional and legal reforms necessary to devolve power and support local governance;•The encouragement of formal and informal civic education programmes;•The promotion of open engagement between the government,civil society and private sector; and•The promotion of free flow of information.The following is a summarised version of the specific strategies under Democracy and Public Participation:
Transparency and Accountability:
Under Transparency and Accountability,the Vision 2030 emphasises on:
"transparent,accountable,ethical and results-oriented Government institutions". A transparent and accountablesystem of governance is expected to promote integrity,free flow of information and enhance the accountability ofleaders to the citizenry.In order to achieve this vision,reforms in the legal and administrative systems will be identifiedand prioritised in the medium-term to provide an enabling environment for the transformation of the governancesystem which will in turn,make it more transparent and accountable.The goal for 2012 is "to enact and operationalise the necessary policy,legal and institutional framework needed to strengthen public transparency and accountability".
The specific strategies to be pursued in the Plan period include:•Strengthening the legal and institutional framework for anti – corruption,ethics and integrity;•Encouraging public access to information and data;•Establishing a legal framework to promote compliance with the Codes of Conduct and Ethics;•Review the legal framework for declaration of incomes,assets and liabilities with a view to establishing anefficient and devolved administrative,compliance and analysis institutional framework;
The
following is a summary of the envisaged Electoral and Political Process programmes:
Democracy and Public Participation:
Under Democracy and Public participation,the
Vision 2030
underscores a
"people centred and politically engaged open society"
.Accordingly,the goal for 2012 is to enact and operationalise necessary policy,legal and institutional framework to enhance democratic participation.The specific strategies will include:•Pursuing constitutional and legal reforms necessary to devolve power and support local governance;•The encouragement of formal and informal civic education programmes;•The promotion of open engagement between the government,civil society and private sector; and•The promotion of free flow of information.The following is a summarised version of the specific strategies under Democracy and Public Participation:
Transparency and Accountability:
Under Transparency and Accountability,the
Vision 2030
emphasises on:
"transparent,accountable,ethical and results-oriented Government institutions"
.A transparent and accountablesystem of governance is expected to promote integrity,free flow of information and enhance the accountability ofleaders to the citizenry.In order to achieve this vision,reforms in the legal and administrative systems will be identifiedand prioritised in the medium-term to provide an enabling environment for the transformation of the governancesystem which will in turn,make it more transparent and accountable.The goal for 2012 is
"to enact and operationalise the necessary policy,legal and institutional framework needed to strengthen public transparency and accountability".
The specific strategies to be pursued in the Plan period include:•Strengthening the legal and institutional framework for anti – corruption,ethics and integrity;•Encouraging public access to information and data;•Establishing a legal framework to promote compliance with the Codes of Conduct and Ethics;•Review the legal framework for declaration of incomes,assets and liabilities with a view to establishing anefficient and devolved administrative,compliance and analysis institutional framework;
Introducing civilian oversight around the key legal,justice and security institutions;•Strengthening Parliament's legislative oversight capacity.The following is a summary of measures to be enacted under Transparency and Accountability:
Sector-wide initiatives under the GJLOS Reform Programme
In addition to the Flagship Projects and the strategies and programmes identified under specific strategic initiatives,arange of sector-wide strategies will be pursued during the MTP period.These strategies relate to the wider GJLOSreform framework.They include the following:•
The GJLOS Policy Framework Paper will be finalised and operationalised.
This far-reaching and ground-breaking national and sectoral policy framework will provide a vital link between the modernised constitutionenvisaged by the constitutional review,national,sectoral and institutional policies,laws and regulations,as wellas sectoral and institutional strategies,programmes,projects and action plans,with regard to this vitally importantGJLOS sector.•
A comprehensive GJLOS policy review and update process will be established.
The basis of this will be theGJLOS Policy Framework.It is expected that in the one year period,it will initially focus on ten major policy areas.These include:anti-corruption,promotion and protection of human rights; freedom of information; access to justice; community policing,victim empowerment,public order policing; conflict prevention; human security andpenal reform/alternatives to imprisonment.
131
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•
Ongoing reform under the GJLOS Reform Programme will be accelerated,beyond policy and law,to supporting processes and systems.
In particular,pilot architectures and prototypes will be developed andfinalised to form an integrated criminal justice database,an integrated national population registration system andinternal data and document management systems across the sector.Moreover,court proceedings will beautomated,while case management systems will be put in place.All of these systems will provide an initialplatform for improved and accelerated service/rights delivery,while at the same time,promoting internaltransparency and accountability among GJLOS institutions.•
A major capacity development programme will be introduced across the sector.
This programme will focuson strengthening knowledge and skills across the sector,while at the same time,promoting comprehensiveattitude and culture change among GJLOS personnel.•
A comprehensive working infrastructure (including equipment) needs assessment,cutting across the entire GJLOS sector,will be completed during the year.
The Needs Assessment in collaboration with theCapacity Development programme mentioned previously,provide a firm basis for consistent and predictablebudgetary allocations to the sector in future years.However,it is unlikely to affect ongoing infrastructure and assetreplacement exercise.
6.1.4Policy,Legal and Institutional Reforms
The ambitious medium-term investment programmes to be implemented within the Plan period will require thebacking of key policy,legal and institutional reforms.These can be categorised under two headings namely:•National policy and legal reform; and•Policy,legal and institutional reform across the five strategic thrusts.
National policy and legal reform
The core national policy and legal reform that will underpin Kenya's medium-term governance and rule of law agendais the new constitution mentioned earlier.Kenya will aim for a constitution that enjoys broad national support that isrights-based,gender-friendly and fiscally affordable.This agenda has been forefront in the minds of Kenyans for a longtime.Consequently,a consensus based constitutional document could act as a basis for national renewal,stability andaccelerated development that is widely shared.
Policy,Legal and Institutional reform
Supporting the national constitutional effort,a sectoral policy framework on Governance,Justice,Law and Order –titled the GJLOS PFP and covering all policy-related aspects of the Political Pillar of
Vision 2030
- will be finalised withinthe first year of the MTP period.As a vital tool in linking
Vision 2030
to sectoral and institutional policies and strategies,the GJLOS PFP has been prioritised as one of the sector-wide reform initiatives to be completed.Other policy,legal andinstitutional reform measures identified under each of the strategic initiatives include the following:
The Rule of Law
Policy and Legal Reform Measures
•Ensure the rule of law is followed to the letter,and that human rights and access to justice issues forms a coreelement of the Constitutional reform debate;
132
VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
•The National Action Plan (NAP) on Human Rights will be finalised and launched as the primary government policydocument on human rights;•Promote gender equality and empower women.To this effect,a number of relevant bills will be enacted andoperationalised including the Marriage Bill,Matrimonial Properties Bill,Domestic Violence (Family Protection) Bill,Equal Opportunities Bill and Affirmative Action Legislation;•In order to promote economic growth based on competition with justice,the government will enact new laws togovern the market including a new Companies Act,a reformed Restrictive Trade Practices,Monopolies and PriceControl Act,reformed laws relating to personal securities (Hire Purchase Act,Sale of Goods Act,Chattels Transfer Act),a new legal framework for Consumer Protection,and a finalised Proceeds of Crime and Anti–MoneyLaundering Bill;•To improve access to justice,legislation will be passed including the Small Claims Court Bill; Private ProsecutionsBill; Legal Aid Bill; Court of Petty Sessions Bill; Alternative Dispute Resolution (ADR) legislation as well as theJudicial Service Bill; the Evidence Act and the Land Disputes Tribunal Act; and•To inculcate a culture of compliance with the law and decent human behaviour a Contempt of Court Bill will beenacted,while the Community Service Orders Act will be reviewed.
Institutional Reform Measures
•Improve access to justice,and establish an institutional framework for the proposed Small Claims Court system;National Legal Aid and Awareness Programme,Alternative Disputes Resolution (ADR) mechanisms (to recognise African Customary practices which are not repugnant to justice); National Prosecution policy and Crime VictimsCompensation Scheme;•Streamline the functioning of legal and judicial institutions by adopting a sector-wide approach to increasedrecruitment,training,planning,management and implementation of programmes and activities in the justicesector.In addition,strengthen and harmonise co-ordination and linkages among stakeholders at national level anddevelop a comprehensive continuing professional training policy;•Inculcate a culture of compliance to the law and encourage decent human behaviour among Kenyan citizens aswell as with foreigners.To this effect,institutional reforms will be introduced that aim at promoting integrity,transparency and accountability in the management of public affairs.Performance contracting and Results-BasedManagement (RBM) will be entrenched within the legal framework,in addition to continuously reviewing publicservice terms and conditions of service.This will enhance competence,results,competitiveness andprofessionalism,while ensuring guidelines are in place for consultancies and short-term contracts.
Electoral and Political Processes
Policy and Legal Reform Measures
•Ensure electoral and political processes form a core element of the Constitutional reform;•Facilitate the financing and operation of political parties.Further,the Political Parties Act 2007 will be implementedthrough the drafting,gazettement and operationalisation of necessary rules and regulations•Enhance the legal and regulatory framework pertaining to elections.To this effect,the Elections Bill will befinalised,initially through the consolidation of all election-related laws.Provisions will also be made to enableKenyans of majority age in the Diaspora to vote.There will be a review of constituency and electoral boundaries.•The enactment of an Electoral Commission of Kenya law will strengthen and restructure the Electoral Commissionof Kenya to deal with (among other things) building the confidence of the public in the electoral process,while atthe same time,eradicating election malpractices and streamlining party nominations.•Other laws linked to elections will be reviewed,including the Kenya Broadcasting Act (Cap 212); Public Order Act
(Cap.56); the Societies Act (Cap 108); Local Government Act,as well as the Administration Police Act,Police Actand Media Act•Implementation of the policy/law-related recommendations of the Independent Electoral Review Committee (TheKriegler Committee) will constitute an additional policy reform.•An Equal Opportunities Bill,Persons with Disabilities (Amendment) Bill and an Affirmative Action Bill will bedeveloped and finalised in order to promote the inclusion of women and other disadvantaged groups in electoraland political processes; and•The National Assembly (Standing Orders) will be reviewed,streamlined and operationalised in an effort to enrichthe quality of Parliamentary debates and the subsequent output of these debates .
Institutional Reform Measures
•The national gender and diversity policy,which substantively aims at creating gender balance in the electionand/or appointment of party officials and nominated candidates will be mainstreamed;•Other electoral reforms at institutional level will focus on strengthening the enforcement of the Electoral Code ofConduct,as well as the electoral system,to guarantee free and fair electoral competition and an independentelectoral management body;•Implementation of the administrative recommendations of the Independent Electoral Review Committee (TheKriegler Committee) will constitute an additional institutional reform;•To widen knowledge and participation among citizens,key institutional reforms will be targeted towards extendingthe voter education curriculum to the school system,and expanding non-school voter education,with greaterreliance on domestic,rather than external,funding;•To promote the inclusion of women and other disadvantaged groups in electoral and political processes,theUnited Nations Declaration on the Elimination of Violence against Women (UNDEVW) and the Convention on theElimination of all forms of Discrimination Against Women (CEDAW) will be fully implemented,while existinglegislation will be stringently enforced; and•To enrich the quality of Parliamentary debate and output,Parliament's Research Centre will be strengthened,recording of proceedings through Hansard production will be digitise and live coverage and electronic voting willbe introduced.
Democracy and Public Participation
Policy and Legal Reform Measures
•Ensure issues of devolution,local governance,decentralisation of decision making at all levels,recall of MPs,equitable delineation of constituency boundaries are a core element of the Constitutional reform;•Review the entire legal,regulatory and institutional policy regime for engagement between government and NSAs;i•Enact the Freedom of Information Bill to enhance access to public information (in the domain of government andother public bodies);•Establish a policy,legal and regulatory framework that allows constant review of all devolved funds,especiallyCDF and LATF,to ensure effective allocation and management of resources ;•Finalise,enact and operationalise the Local Government Bill; and•Finalise and operationalise of the Public-Private Stakeholder Participation Policy (PPSP)
Institutional Reform Measures
•Establish an institutional framework that allows for constant review of all devolved funds,especially CDF and LATF,to ensure effective allocation and management of resources; 134
VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
•To improve public participation in democratic processes,operationalise the Political Parties Act,2007,throughnew regulations;•To enhance participation by civil society and private sector,initiate and fund civic education programmes andpromote civic action programmes.Also,develop a broad civic education curriculum at formal and informal level,in schools and outside schools; and•To promote open engagement between the government,the civil society and the private sector,create an annualnational forum for government/NSA engagement which will focus on social,economic,political and democratic issues.
Transparency and Accountability
Policy and Legal Reform Measures
•To strengthen the legal framework for anti-corruption,ethics and integrity,a national anti-corruption policy will bedeveloped,while the Anti-Corruption and Economic Crimes Act,2003 and Public Officer Ethics Act,2003; will bereviewed to guarantee a transparent and accountable public service through review of the Anti-Corruption andEconomic Crimes Act,2003 and Public Officer Ethics Act,2003;•Further strengthening of the legal framework will come through the enactment of the Mutual Legal Assistance Bill,the Proceeds of Crime and Anti-Money Laundering Bill and new legislation on whistleblower protection; while theWitness Protection Act,2006 will be operationalised.Additionally,international anti-corruption instruments (suchas the United Nations Convention against Corruption and the African Union Convention on Preventing andCombating Corruption) as well as initiatives such as STAR (Stolen Assets Recovery (STAR),will be domesticated.•To promote results-based management in the public service,a policy on RBM and Performance Contracting willbe developed and implemented.RBM principles will be entrenched in the Constitution,while public performanceand results legislation will be developed to cover all persons paid from public funds;•To encourage public access to information and data,the ICT Bill and Freedom of Information Bill will be enactedand policy and legislation developed on cyber crimes and related issues; and•To strengthen Parliament's legislative oversight capacity appropriate legal reforms will be undertaken to facilitateparliamentary vetting of senior public appointments; while the Parliamentary Budget Office will be anchored on arelevant legal framework.
Institutional Reform Measures
•To strengthen the institutional framework for anti-corruption,ethics and integrity,the National Anti–Corruptionawareness campaign will be expanded,as will the capacity of District Anti–Corruption Civilian OversightCommittees to monitor the management of devolved funds and stigmatise corruption;•In addition,anti-corruption,ethics and integrity in the public sector will be mainstreamed through themodernisation of government operations and service-delivery (e-government); the prompt implementation of auditreports; enhancement of the capacity of agencies mandated to prevent,investigate,prosecute and adjudicate oncorruption and economic crime; enhanced co-operation and partnership among institutions responsible forpreventing,investigating,prosecuting and adjudicating corruption and economic crime – including internationalinstitutions; and harmonisation of terms and conditions of service for employees of institutions responsible forprevention,investigation,prosecution and adjudication of corruption and economic crime;•Results-based management will be promoted in public service through mainstreaming of corruption preventionstrategies in RBM and Performance Contracting; and institutionalising Rapid Results Initiative (RRI) in the publicservice;•Public access to information and data will be promoted through implementation of the ICT policy,modernisation ofoperations and communication systems through the use of ICTs,enhancement of information management includingprocessing,storage and access and capacity development through training,equipping and expanding local and widearea networks to support efficient seamless communication and fast and convenient service delivery; Civilian oversight over key legal,justice and security institutions will be achieved through the transformation ofthe Public Complaints Standing Committee into a fully-fledged
Ombudsman
office with adequate legalmandate; capacity building to strengthen the Office and other watch dog institutions,including the District Anti–Corruption Civilian Oversight Committees and the establish Civilian Oversight Committees for the Policeforce and Prisons service;•Parliament's own legislative oversight capacity will be strengthened as well as the introduction of stricter and moretimely deliberations on reports by the various institutions such as Kenya Anti-Corruption Commission (KACC); KenyaNational Audit Office (KENAO); State Law Office; Kenya National Commission on Human Rights (KNCHR);strengthening the organs of Parliament such as Parliamentary Accounts Committee (PAC); Parliamentary InvestmentsCommittee (PIC),among others to support the war against corruption and economic crime and promote transparencyand accountability in utilisation of public resources; address the physical capacity requirements for Parliament(Members of Parliament (MPs) and Parliamentary staff) by infrastructural development including modernisation of theHouse Chamber; construction of footbridge on Harambee Avenue and acquisition of more office space.All this willrequire closer consultation and collaboration between parliament and the Executive branch of government.
6.2Decentralisation
The
Vision 2030
envisages a democratic process in the decentralisation of decision-making and a more equitabledistribution of resources.This calls for a devolved system that conforms to the national and local structures.Devolution is defined as:
"a shift in power,authority,resources,and responsibilities from the centre to other lower levels of government."
On the other hand,in broad political terms,decentralisation can be defined as:
"any change in the organisation of government which involves the transfer of some powers from the national level to any sub-national levels,or from one sub-national level to another lower level"
.While the country awaits the implementation of newdevolution structures from the proposed constitution,the government's position is that decentralisation measures canstill be undertaken in the interests of growth with equity. Accordingly,the new constitution will define the duties of the Central Government and the functions to be carried outby the lower levels of government.In the meantime,the government is committed to the following policies in the courseof the implementation of the MTP:•To ensure that locally defined needs are met with services that conform to the best national standard and in sodoing,promoting equity;•Give local institutions both the appropriate capacity and authority to carry out their defined functions;•Deliver public services through better co-ordinated local institutions and planning;•Ensure that financial resources are distributed equitably across the country and are also adequate to perform thefunctions defined for the various decentralised institutions;•Put in place a system that promotes greater accountability of the Central Government to all the communities thatit serves;•Enhance community participation in decision making on issues that directly affect them; and•Address issues of institutional capacity and social capital at the lower (or grassroots) level.
Benefits of a decentralized system
The major benefits of a decentralised governance process (even prior to the introduction of a new constitution) is that it willmeet the strongly expressed needs in many parts of Kenya to bring services and decision making procedures closer to thepeople.Decentralisation is also expected to provide a more equitable expenditure system.Further,It will in effect make iteasier for the government to receive initial feedback on the impact of development projects from the people themselves.
6.2.1Situation Analysis
Kenya inherited a federalist constitution with clearly defined functions for regional,county and municipal authorities.This was gradually replaced by a more centralised government,which was based on provincial administration yet stillleaving certain functions to Local Authorities.On their part,Local Authorities were initially responsible for the provisionof a wide range of community and social services.However,poor governance as well as an inadequate and weak institutional capacity led to unsatisfactory service delivery.Consequently,in 1970,the Central Government took overthe provision of key services such as the provision of health care and education.The Kenya Government has undertaken periodic reviews of this situation.In particular,an earlier Task Force (1974) anda Commission of Inquiry (1995) recommended that issues of structures,functions and the powers of Local Authoritiesbe streamlined with those of the Central Government by:•Promoting a participatory approach to the Local Government;•Enhancing the Local Government's capacity,both in terms of human resources and functional streamlining; and•Promoting collaborative and effective linkages between the Central and Local Government.The rapid proliferation of Local Authorities,most of which had weak resource bases (in terms of revenue) led to thedeterioration of services provided to the communities.As a result,the government initiated yearly subventions to Local Authorities through the Local Authorities Transfer Fund (LATF) which is currently one of the devolved funds.In additionto these reforms,the government introduced a Ministry for Regional Development.This Ministry is now responsible foradministering regional development projects under various authorities that have specified geographical mandates.Examples include the Lake Basin Development Authority,Kerio Valley Development Authority and the Tana and AthiRivers Development Authority.In 1983,the government introduced the District Focus for Rural Development (DFRD) togalvanise Local Government resources towards a participatory planning based on local level decision making,but itsimplementation was not achieved fully due to the numerous challenges encountered.In recent years,there has been significant movement to transfer local service deliveries to the constituencies.Currentefforts by the government in the decentralisation of service delivery can be grouped as follows:•Local Authorities;•Regional Development Authorities;•Sector Ministries;•Provincial Administration;•District Focus for Rural Development;•Decentralised Funds (CDF,LATF,District Bursary Fund etc); and•Development Partners and Non-Governmental Organisations.
Local Authorities
There are currently 175 Local Authorities in Kenya made up of one city council,forty five municipal councils,sixty-twotown councils and sixty seven county councils.Each council is divided into wards with one elected councillor.Thecouncillors elect from amongst themselves a mayor (in cities and municipalities) or a chairman (in towns and counties).The ward is an administrative unit without any form of elected assembly.Additional councillors are nominated by thepolitical parties pro rata to their representation in the council.
Regional Development Authorities
There are six regional Development Authorities with each having its own governing legislation.The RegionalDevelopment Authorities were established to harness local resources for the benefit of the local people.These were mainly river basins,catchment areas and coastal resources in Kenya.Their main aim is to rationalise equitable andbalanced sustainable regional and national development in the country.The regions covered are the Lake Basin,Kerio Valley,Ewaso Nyiro North and Ewaso Nyiro South,Tana and Athi River,and Coast Region each with its ownestablishment date between 1974 and 1990.
Sector Ministries
A large number of Central Government ministries have delegated their functions to institutions within the districts.Theyinclude Roads,Land,Health,Education and Water Boards which are also organised into regional or district units.Theyexercise the authority for that service remains with the relevant central ministry.The allocation of resources to theindividual boards is at the discretion of the relevant ministry and does not generally follow specific and transparentdisbursement criteria.The Boards are also appointed by the relevant ministry with little formal local accountability.Other ministries such as Agriculture and Finance deliver services through district units of the ministry. Additional sectoral initiatives for decentralisation include the following:•The Ministry of Land has developed a draft land policy which proposes devolution of power and authority,participation and representation,justice,equity and sustainability to the districts and other institutions.Threeinstitutions are suggested for managing land affairs in the country namely:The National Land Commission,TheDistrict Land Board and Community Land Board.District Land Tribunals will also be set up for dispute resolution.•The Ministry of Education has developed a sector-wide approach which is being implemented through theEducation Sector Support Programme (KESSP).The four central themes of this programme are:transparency,decentralisation,team work; and performance-based management and accountability.Sub national co-ordinationof the education sector is carried out through the Provincial and District Education Boards though grants areprovided directly to primary schools.The Strategy for revitalising Agriculture (SRA) was launched in 2004 as a national policy document for steering thedevelopment of the agricultural sector for the period up to 2014 by the Agricultural sector ministries representing theMinistries of Agriculture,Livestock and Fisheries Development,and Cooperative Development and Marketing.It usesparticipatory approaches to development through empowerment of local level institutions to initiate and implementtheir own priority projects.At the sub national level,District Coordination Units are formed in all districts and provide aforum for the coordination of SRA activities,working closely with the District Development Committees.The provinciallevel provides backstopping and monitoring of implementation progress.In the Ministry of Health,a Sector Wide Approach through the National Health Sector Strategic Plan II 2005-2010 whichwill re-invigorate the Kenya Health Policy Framework (KHPF) elaborated in 1994.The Plan envisages the piloting ofdirect financing to health facilities in a few districts,following the Education model.It proposes delivery of healthservices through a hierarchical system of Health Management Teams at the province,district,and service outlet andvillage level,overseen by Boards or Committees at each level.The direct financing of health facilities using a similarapproach to the Education model is,however,currently being piloted in a few districts.The structure for decentralised delivery of services in the roads sector is defined in the Kenya Roads Act 2007 whichestablishes the Kenya Rural Roads Authority and the Kenya Urban Roads Authority with the Kenya National Highways Authority having an oversight role.These authorities will take over the responsibilities of the Ministry of LocalGovernment and the Local Authorities road maintenance and construction.At sub national level they will work throughthe existing District Road Committees.The Ministry of Water and Irrigation transferred the management and operation of water services to the Water Services Boards with effect from July 2005.These Boards have taken over the water supply responsibilities in their jurisdictionsfrom the central and local government institutions,though actual delivery of the services are delegated to water supplycompanies or community organisations.The Ministry of Finance has put in place a system of District offices whichallows for direct release of funds to the sub national level thus reducing the need to obtain funds from the CentralMinistries in Nairobi.This mechanism facilitates the operation of decentralised institutions.
District Focus for the Rural Development Strategy
The District Focus for Rural Development (DFRD) Strategy was established in July 1983.This strategy is based on theprinciple of a complementary relationship between ministries with their sector approach to development and thedistricts with their integrated approach to addressing local needs.In addition,the strategy makes districts the centresof development and involves a bottom-up approach to planning where the districts have autonomy in setting theirpriorities,unlike the previous top down strategy where ministries set district priorities. Although the adoption of the DFRD strategy broadened the level of engagement with the citizenry in districts,thisframework has over time faced implementation challenges that have necessitated its revision.As a result,thegovernment has initiated the process of revising the DFRD in order to make it responsive to the changing needs of therural/urban population and also the emerging policy initiatives.
Decentralised Funds
Funds are transferred by the Central Government to the various decentralised ministries,departments,agencies andthe local revenue sources of Local Authority boards and Regional Development Authorities.In addition,there are anumber of specific decentralised central funds financing activities at the local level.They include the following:
Local Authorities Transfer Fund (LATF)
LATF was introduced under the Local Authorities Transfer Fund Act,1998 with the objective of facilitating
"the disbursement of funds to local authorities to supplement the financing of the services and facilities they are required to provide under the Local Government Act."
It is a block grant equivalent to 5 per cent of national income tax revenuesand is allocated to all local authorities using a population-based formula.The amount provided in FY 2007/08 will beKshs 8.25 billion.
Constituency Development Fund (CDF)
The Constituency Development Fund was introduced under the Constituencies Development Fund Act,2003 with theobjective of ensuring
"that a specific portion of the national annual budget is devoted to the constituencies for purposes of development and in particular in the fight against poverty at the constituency level."
The amount paid into the fundeach financial year is fixed as not less than 2.5 per cent of all government ordinary revenue collection.Three quartersof the amount allocated annually to each of the 210 constituencies is based on equal shares per constituency,whilethe balance is allocated on the basis of a weighted poverty index.The amount to be released in FY 2007/08 is Kshs10.1 billion.The Act requires that the projects be identified through community participation.At the local level the Fundis administered through Constituency Development Committees and project implementation is co-ordinated throughDistrict Development Committees.CDF has acquired great popularity among Kenyans but it has encountered somemanagement problems that need to be addressed in the course of the plan period.
Road Maintenance Levy Fund:
Disbursements from this fund are budgeted at Kshs.18.3 billion in FY 2007/08.Thisamount is partly allocated to local authorities and the constituencies,the balance being expended through centralcontracting by the Roads Board.
HIV/AIDS (TOWA) Community Support Initiative:
The disbursements from this fund are budgeted at Kshs 742 millionin FY 2007/08.The fund is geared towards a total war on the HIV/AIDs scourge through related education andawareness campaigns at the constituency level for all the 210 constituencies.
Constituency Bursary Fund:
Disbursements from this fund are budgeted at Kshs 800 million in FY 2007/08 and targetfor the payment of school fees for destitute children.The funds are used to ensure that deserving students do not missout on high school education due to financial inabilities.
Community Development Trust Fund:
Disbursements from this fund are allocated at Kshs 382 million in FY 2007/08.
Poverty Reduction Fund:
This fund which is supported by the European Union (EU) commenced disbursements in 2006and will end in 2009.It provides earmarked financing of specific projects in 63 selected councils totalling Kshs 581 million.
Youth Development Fund:
The fund was introduced in FY 2006/07,for disbursement through the constituencies andKshs 750 million has been allocated for FY 2007/08.The resources under this fund are meant to go a long way increating job opportunities for the youth of this country through engaging in income generating activities.
Women's Enterprise Development Fund:
The fund was introduced in FY 2007/08,for disbursement through theconstituencies with an initial allocation of Kshs 1 billion.Since commercial banks have borrowing conditions that are notfavourable to women,this fund was to fill the gap by providing more easily accessible credit for investment by women.In addition to the disbursement of funds mentioned,there exists a number of special programmes targeting specificissues in specific areas,allocating additional resources to the most disadvantaged provinces such as the Arid LandResource Management Project.
Development Partners and Non-Governmental Organisations
There are many initiatives at the local level either supporting the local authorities or dealing directly with communitiesthat are financed by Development Partners or Non Governmental Organisations.In addition,the development partnerssupport the Water Sector Trust Fund to provide finance for improving access to safe,affordable and sustainable watersupply and sanitation services to the poor.The fund has budgeted Kshs 700 million for disbursement to local waterproviders in 2007/08.
6.2.2Emerging Issues and Challenges
Kenya's decentralisation policies suffer from poor coordination and overlaps between governmental functions.Hence,there has been a strong demand in favour of devolution.Other challenges include a weak legal framework,poorcoordination,limited budgetary allocation,uncoordinated financial management,weak human resource managementand unstructured stakeholder participation.The multiplicity of devolved funds whose activities are not properlycoordinated also indicates the lack of a coherent policy on decentralisation.The capacity for financial management andaccountability of these funds has generally been weak. A second challenge is the large number of uncoordinated decentralised funds.These have been formed without acritical review of past efforts and wastage may be extensive with poverty increasing instead of reducing.Centralisationhas an adverse impact on equity and distribution of resources especially in a multi-ethnic setting like Kenya's and isan emerging issue and challenge.Although there is no model of decentralisation that is universally agreed upon,thegovernment will undertake decentralisation based on five conditions to ensure that the process is effective in upliftinggeneral existential welfare and enhancing the capacity of the Local Government for self-administration.Measures willbe taken to adapt the programme to specific local prevailing conditions,capacities,historical and political realities.
140
VISION 2030
FIRST MEDIUM TERM PLAN 2008 - 2012
These conditions are expressed as a set of inter-related,pre-existing frameworks and will be used as guidelines foreffective decentralisation.They include the following;•
The basic legal and policy framework:
This will clearly stipulate the division of roles and responsibilitiesbetween different layers of government.Only if significant responsibilities are assigned to local governments willthey play a role in uplifting the standard of living and address local needs.•
The political and administrative framework:
The election of local leaders will be the most basic precondition.Effective local accountability will also demand that citizens and politicians have access to information,institutionalarrangements for participatory planning,open budget processes,social audits,and be influenced by politicalstructures and civil society Organisations.•
Local authority financing:
This shall be aligned with and commensurate with functions.Finances will beprovided to include a proper mix of local revenue sources,intergovernmental fiscal transfers and borrowing.A certain level of fiscal autonomy will be allowed to ensure that potential benefits of decentralisation canmaterialise,and this autonomy will be designed in a way that does not compromise overall national targets.•
Local authority human resource:
The government will ensure that the numbers,qualifications,and motivationof the enlisted staff are adequate.This will ensure that they are in a position to perform their duties effectively andefficiently.Some degree of local control of staff will be allowed to ensure local level autonomy and thus benefitfrom decentralisation.•
Coordinating the decentralisation process:
The government will coordinate the process for effectivedecentralisation of the public service across all the sectors.
6.2.3Programmes and Projects for 2008 - 2012
Development of a decentralisation policy:
Pending the introduction of the new constitution,the government will givepolicy direction on decentralisation by preparing an overall decentralisation policy.The policy will define moresuccinctly,the policy choices associated with devolution of authority for planning,budgeting and accountability.Thiswill achieve the desired development results at the devolved level as part of the new constitution in one year.
Development of a decentralisation strategic framework:
Following the development of a decentralisation policy,adecentralisation strategic framework that elaborates specific priorities over a given time frame will be prepared.Thiswill be based on the
Vision 2030
and the Grand Coalition Government's development agenda,making the strategicframework an instrument for overall national strategy and programmes towards accelerated growth and povertyreduction.In this context,a more systematic dialogue between the various strategic actors is needed in order tostreamline the strategic focus for decentralisation with the new constitution.All types of decentralised funds shall formpart of the strategic framework.
Reforms of local authorities:
The on-going process of reforming the Local Authorities shall be supported andaligned with a new decentralisation policy focused on devolution.This will imply a refinement of the LocalGovernment Act (LGA) itself as well as all laws,which reinforce central management functions over thosestrategically suited to LAs under CAP 265 of the LGA.The reforms will also entail improvement of strategic planningprocesses in all local authorities and embracing of various performance management tools and instruments asoutlined under the public sector reforms section.
Capacity building in Local Authorities:
A comprehensive training needs assessment will be carried out for Local Authorities with a view to developing a national programme for the training of local authorities' staff and re-orientingto them to the requirements and aspirations of the regional development policy and in particular the
Vision 2030
.Thetraining programme will be executed in collaboration with the Kenya School of Government whose primary focus willbe to build requisite capacity in governance and its affiliate institutions for national transformation.
Information,Education and Communication:
While the process of developing a decentralisation policy and itsstrategic framework will be through a participatory and consultative process,its success will hinge on promotion ofnational ownership and sustainability.In view of this,an Information,Education and Communication strategy with akey objective of sensitisation and promotion of the policy and framework will be developed and implemented.Thedissemination programme will be executed using the existing structures and systems at both the national and sub-national levels such as District Information and Documentation Centres.
7. THE IMPLEMENTATIONFRAMEWORK
7.0Overview
An effective Monitoring and Evaluation system is critical to the successful implementation of the
Medium Term Plan 2008-2012.
In light of its mandate to track the implementation of government policies,programmes,and projects,theMinistry of State for Planning,National Development and
Vision 2030
under the Office of the Prime Minister,will takea lead role in monitoring the implementation of policies,reforms,programmes and projects to be implemented underthe MTP 2008-2012.Towards this end,the Ministry will work closely with other line ministries,government agencies,the Private Sector and Non-Governmental Organisations (NGOs) to ensure that there is an effective monitoring andevaluation of the implementation of the MTP.In line with the policy on e-government,the National IntegratedMonitoring and Evaluation System (NIMES) under the Monitoring and Evaluation Directorate of the Ministry,a state-of-the-art Information Technology (IT) system will be relied upon to collect accurate and up to date information and dataon the implementation of the MTP 2008-2012.
7.1The National Integrated Monitoring and Evaluation System
The National Integrated Monitoring and Evaluation System (NIMES) was established in 2004 with an objective toproviding the government with a reliable mechanism and framework for measuring the efficiency of governmentprogrammes and the effectiveness of public policy in achieving its objectives.NIMES is not only a reporting system butan inherent part of the planning and budgeting processes both at the central and devolved levels and at district andconstituency levels.Moreover,it is designed to track and provide feedback on the implementation of governmentpolicies and programmes for improved performance,results and accountability.The government has reviewed the NIMES and a strengthened institutional framework is being put in place to ensurethat all programmatic activity by the government,civil society,the private sector and donor partners,particularly forthe
Vision 2030's
MTP 2008-2012 are effectively monitored.In addition,the framework will ensure that timely andcorrective action is initiated to monitor the successful implementation of the
Vision 2030
Medium Term Planprogramme and policies. As the focal point,the Monitoring and Evaluation Directorate (MED) of the Office of the Prime Minister Ministry of Planning,National development,and
Vision 2030
will receive information from line ministries,parastatals,Local Authorities,reformprogrammes,civil society,the private sector and development partners through an on-line system on the progress madein the implementation of the MTP 2008-2012.The MED will produce quarterly and annual reports on progress inimplementing the MTP which will also be availed on the MED Website.MED will regulary review M & E indicators to fast-track the implementation of
Vision 2030
.Various surveys will also be undertaken over the medium-term period.Thesewill include poverty surveys and Integrated Household Budget surveys which will be undertaken.These results will provideuseful input in monitoring the progress made in implementing the MTP 2008-2012.
7.2The Role of line Ministries and Government Departments
The Kenya National Bureau of Statistics (KNBS),through its Statistical Capacity Building Project (STATCAP/NSS) willdevelop technical as well as other capacities of line ministries to carry out data collection for input into the NIMES.
Subsequently,the Central Planning and Project Monitoring units (CPPMUs) in line ministries will be given theresponsibility for monitoring the projects administered in their various ministries and sectors.All line ministries andgovernment departments will then align their ministerial and departmental strategic plans to the MTP,Accordingly,performance contracts of line ministries and government agencies will be closely linked to meeting the targets of theirStrategic plans which have been aligned with the MTP 2008-2012.
7.3District/Devolved Level Reporting and Monitoring
As a measure to effectively track the implementation of programmes and projects at the district,local authority andconstituency levels,a revised District Focus for Rural Development (DFRD) report has been prepared and willsubsequently be institutionalised.In addition,the DFRD Monitoring and Evaluation reporting arrangements,workingthrough the District Planning and Management Units (DPMUs) and the District Monitoring and Evaluation Committees(DMECs) will be strengthened and integrated more effectively within the NIMES.In this regard,the district,Local Authorities and constituency level capacities in ICT,project monitoring,data base management and preparation ofmonitoring reports will be strengthened through capacity development under NIMES.The Annual District Monitoringand Evaluation Reports will then be published.Subsequently,Constituency Monitoring and Evaluation Committees(CMECs) will be established according to the provisions of the revised DFRD Strategy.
7.4The National Economic and Social Council
The National Economic and Social Council (NESC) under the Office of the President played a key role in thedevelopment of the Kenya
Vision 2030
.They will continue to play their advisory role on all developement mattersacross sectors.The Council through its link with the private sector and civil society organisations will provide animportant liaison function as well as feedback mechanism.
7.5The Vision Delivery Secretariat
The Vision Delivery Secretariat (VDS),working under the general direction of the Minister of State for Planning,NationalDevelopment and
Vision 2030
shall be responsible for the overall implementation of
Vision 2030
Flagship Projects.The VDS will be a Semi-Autonomous Government Agency (SAGA) with an independent Board established under a legalnotice by Minister of State for Planning,National Development and
Vision 2030
.The VDS will have clear institutionallinkages with other existing institutions,structures and organisations both in the public and private sector.
7.6The Vision Delivery Board
The Board shall provide overall leadership,oversight,guidance and policy directives in the implementation of the
Vision 2030
and sustenance of momentum and realisation of the Vision goals and targets.The Board shall beresponsible for target setting and evaluation of the achievement of results.The Board Members shall be gazettedby the Minister of State for Planning,National Development and
Vision 2030
and shall serve for a period of five yearson an honorary basis.
i. the width of the shear zone to the south and north of the current zone of artisanal workings with particular attention to the central zone in which the 4 gold veins occur. The area is covered by sand and duricrust cover.
ii. the extension of the shear-hosted gold mineralization along 7.5 kilometers of strike with particular attention to where the shear zone is crossed by NW-SE trending fracture zones
iii.
the sand covered area immediately to the west of the central zone and the artisanal mining area.
iv. the western extension of the mineralized shear zone some 5 kilometers further to the west appears to have been right laterally displaced for some 1.5 kilometers to the north by a major NE-SW fault. The Company will release drilling results as they become available. Analytical work is carried out at the independent SGS Laboratories in Mwanza, Tanzania. The drill samples have been subjected to full sample preparation followed by a 50-gram fire assay with an AA finish. Blanks (5%), commercial standards (5%) and duplicates (5%) have been used in each sample batch of 20 samples to monitor laboratory performance during the analysis. Samples submitted either represent 5 meters composite samples of 1 meter intervals or 1 meter samples where on site logging and panning of the RC chips indicated the presence of visible gold or gold-bearing sulphides The reader is cautioned that the potential quantity and grade of the regional exploration target is conceptual in nature; it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The Company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met. Clive King, P.Geo, a Qualified Person as such term is defined in Canadian National Instrument 43-101, is responsible for monitoring the supervision and quality control of Lake Victoria's exploration program and has reviewed and verified the technical information contained in this news release. Clive King, registered as a Professional Geologist with the South African Council of Natural Scientific Professions (Pr.Sci.Nat Reg. No. 400065/09). About the Company Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania is Africa's third largest gold producer, behind South Africa and Ghana, but also has reserves of uranium, nickel and coal. Gold exports alone earned it $1.076 billion in 2009, up from $932.4 million the previous year. Lake Victoria holds nine prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.comDisclaimer This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Canadian provincial securities laws applicable to the Company. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration programs and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-K filed on July 14, 2010, which is on file with the Securities and Exchange Commission, as well as the Company's periodic filings available at www.sec.gov and with Canadian Securities Administrators at www.sedar.com. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws. Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press release, such as "mineralized zones" which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our annual report on Form 10-K. This press release contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. Lake Victoria Mining Company, Inc. David T. Kalenuik, President & CEO Phone: 303-586-1390 Email: info@lvcamining.com
@@@@@@@@@@ World Bank Corruption http://www.endevil.com/worldbankcorruption.htmlYet another of Bush´s buddies is caught up in a scandal. World Bank President Paul Wolfowitz has publicly apologized for "mistakenly" arranging a huge pay rise along with a series of guaranteed promotions and pay rises for his girlfriend. Wolfowitz was already in a relationship with Shaha Riza (an employee of the World Bank) when he was appointed as president of the World Bank. The Bank has a rule that staff should not have romantic involvements, and so she was seconded to the U.S. State Department. However, thanks to leaks from staff we now know that this move was accompanied by a pay rise of $40,000 (making her pay a whopping $193,000 before tax - but she doesn´t actually have to pay any tax) and a series of guaranteed promotions. The pay rise actually made her better paid than her boss, Secretary of State Condoleezza Rice! The World Bank Staff Association (which represents over half of the Bank´s employees) called for his resignation with the chairperson stating that Wolfowitz "must acknowledge that his conduct has compromised the integrity and effectiveness of the World Bank Group and has destroyed the staff´s trust in his leadership. He must act honourably and resign." In response, Wolfowitz has claimed that he is the victim of a smear campaign, and that any criticism of him was "unjust and hypocritical". Wolfowitz claimed that he had received approval by the proper authorities within the bank for the substantial pay rise. Unfortunately for him, senior Bank officials do not seem to agree with his version of events. Ad Melkert (chairperson of the bank's ethics committee at the time) reported that "It was entirely Mr Wolfowitz´s decision to do exactly what he originally proposed not to do: to engage directly in personnel matters regarding his partner.... including the large initial pay increase, the stipulation for subsequent annual increases, the stipulation for subsequent promotions". He also denied that the ethics committee had even authorized the extraordinarily generous deal. Anti-corruption? Of course, the truly funny (and sad) aspect of all of this is that Wolfowitz has been at the fore-front of the Bank´s anti-corruption campaign. There is, unsurprisingly, plenty of evidence that his crusade against corruption has a political side to it. He suspended an aid program in Uzbekistan just after that country refused to allow US military aircraft to land within its borders. Countries who support the US in their "war on terror" seem to do rather well out of the World Bank, while others who are not so politically useful (such as the African nations) have found that their aid has been withdrawn because of allegations of corruption. Furthermore, the bank´s policies have already been changed to fit in with the neo-conservative ideals of the Bush Administration. For example, One of Bush´s other buddies who was appointed by Wolfowitz (Daboub) has already scupered aid programs which would have provided family planning and birth control to poorer nations. Daboub ordered that all references to family planning (which he as a devout catholic considers to be sinful) be deleted from the Bank´s long term health program. Thus under his management the World Bank has become little more than an economic outlet of the US Government. On the positive side, Wolfowitz has argued that the US needs to increase aid payments to Africa and has pointed out that trade restrictions applied by the US Government are partly responsible for the situation. However, he has also stated that an increase in aid should be linked to "performance" and "anti-corruption" measures. We can assume, therefore, that in his view Ms Riza´ "performance" has warranted a 25% pay rise (and a guarantee of future pay rises and promotions) and that corruption is perfectly acceptable, as long as he and his buddies are the ones to profit from it.
Posted 4th May 2007
Monday, October 22, 2012
ICC: Uhuru takes TNA, URP team to Kikwete By Peter Opiyo The Hague case against four Kenyans featured at a meeting between Mr Uhuru Kenyatta and Tanzania's President Jakaya Kikwete a day before ICC Prosecutor Fatou Bensouda arrives in Nairobi. The Deputy Prime Minister flew to Tanzania to enlist Kikwete's support for his presidential bid and asked the international community to allow Kenyans elect their leaders without interference. Uhuru, who alongside Eldoret North MP William Ruto, is fighting to succeed President Kibaki while saddled with serious crimes against humanity charges, led a delegation that visited Kikwete that included Justice Minister Eugene Wamalwa, who is variously talked about as his likely running mate. It is believed the Kenyan delegation, buoyed by the fact that Kikwete enjoys good relations with top Western capitals, and having played a key role in the stabilisation of Kenya following the 2008 post-election violence, chose Kikwete to send a message to ICC on the importance of having them run for the sake of Kenya's long-term stability and peaceful elections. It is significant that Uhuru flew out a fortnight after former UN Secretary General Kofi Annan, who brokered Kenya's peace deal alongside Kikwete, was in Kenya with the message that an Uhuru or Ruto presidency would not augur well for Kenya in the eyes of the global community. Former Tanzania President Benjamin Mkapa, who worked on the peace agreement with Annan, was also in Kenya around that time, and it is believed his discussions with President Kibaki could have dwelt on the implication of ICC cases on the March 4, 2013 elections. Specifically, Uhuru's delegation took issue with Annan's remarks that electing one of the ICC accused President, would not sit well with other nations. A statement from Uhuru's Director of Communications Mr Munyori Buku entitled "Kenyans are masters of their own destiny" read in part: "President Kikwete called for the respect of the "decision of the people of Kenya". He added Kenyans were the masters of their own destiny and must be allowed to elect their leaders without undue interference. Buku went on: "The President pointed out that Africa would respect the decision Kenyans would make in the General Election in March next year." Kikwete hosted the delegation from Uhuru's The National Alliance, Wamalwa's New Ford Kenya and Ruto's United Republican Party for a three-hour discussion at State House in Dar-es-Salaam. "Mr Kenyatta said his goal and that of like-minded leaders was to move the country forward in unity. To this end, he said, they were reaching out to leaders of other political parties," reported Buku. On his recent visit to Kenya, Annan said: "Of course there are implications that everyone needs to ponder over suspects running for presidency." Immediately, his statement provoked Uhuru and Ruto who retorted it was time Annan kept off Kenya's affairs. Uhuru then said he had friends who have not raised an issue with his election as President. And this may have been the statement that paved way for his visit to Tanzania. "We have no problem with our friends, but if they do not respect us, it is up to them. We have many friends to work with all over the world," Uhuru said at a TNA meeting a week ago. In Tanzania he is said to have repeated his comments to Kikwete, who said it was wrong for foreigners to interfere in Kenya's elections. Uhuru was also accompanied by Medical Services Assistant minister Kazungu Kambi (representing URP) and MPs Rachael Shebesh and Moses ole Sakuda and former MP Abdullahi Ibrahim Ali. Kenya's High Commissioner to Tanzania, Mr Mutinda Mutiso was also present. "Mr Uhuru was adamant and reiterated his public comments on Annan while Kikwete said people should be left to elect their leaders without interference," said Wamalwa's spokesman Mr Tony Gachoka. At the meeting, Wamalwa is said to have promised to ask the Attorney General Githu Muigai to seek an interpretation of the Supreme Court of Chapter Six of the Constitution regarding integrity. His argument is that elective positions are different from appointive ones and that precedents like the one that knocked off Mr Mumo Matemu as chairman of Ethics and Anti-Corruption Commission as well as Ms Nancy Baraza, who resigned as Deputy Chief Justice, should not be used when the court finally handles the case involving Uhuru and Ruto. Civil Society groups have moved to court to challenge the eligibility of the two to vie for the presidency while the CJ has said the two cases set a good precedent on integrity and were a trailblazer. "Mr Wamalwa made it clear that he will be asking the AG to ask the Supreme Court to interpret Chapter Six of the Constitution because he feels there is a difference between appointive and elective positions," Mr Gachoka told The Standard in Nairobi. The two camps are anxious that the Judiciary may use Matemu's and Baraza's cases as precedents to block the two from getting their names on the ballot paper. Gachoka claimed Wamalwa accused Annan of treating Kenyans as if he were a "prefect" yet it was Kikwete who got the two sides to agree to a deal. Ms Bensouda's visit comes at a time Uhuru and Ruto are engaged in intensive campaigns for the presidency. The two, together with former Secretary to the Cabinet Francis Muthaura and Kass FM radio journalist Joshua Sang' are accused by The Hague-based court of being behind crimes against humanity committed in the 2008 post-poll upheavals. During her visit the Prosecutor will meet President Kibaki and Prime Minister Raila Odinga and also travel to the Rift Valley to meet victims of the violence. Phasiko Mochochoko, Head of the Jurisdiction, Complementarity and Cooperation Division of the ICC and Shamiso Mbizvo, Cooperation Adviser, will accompany Ms Bensouda. In August, Ms Bensouda conceded some key witnesses in the Kenyan cases had been intimidated, compromised or threatened with death and execution, and feared this may undermine the two cases. http://kenyauptodate.blogspot.com/2012/10/icc-uhuru-takes-tna-urp-team-to-kikwete.htmlTrade volume between Tanzania, Kenya up amid Kikwete's visit Saturday, September 15, 2012 President Jakaya KikweteTanzania and Kenya on Tuesday resolved to promote existing bilateral ties as President Jakaya Kikwete begun a three-day visit to Nairobi. In a communiqué issued after a meeting between Kikwete and his host, Mwai Kibaki, the two leaders also hailed the growing investment relations between the two neighbours and observed that the two countries are socially and economically interdependent. Both Kibaki and Kikwete agreed to explore ways of enhancing shared prosperity in the spirit of the East Africa Community (EAC) and African integration. "The two leaders observed that the volume of trade between the two countries had grown steadily over the years. They committed to work closely particularly within the framework of the East African community (EAC), to facilitate efficient movement of goods and people between the two countries," they said. According to statistics from Kenya's Export Promotion Council (EPC), the volume and value of Kenya's exports to Tanzania form a significant portion to Kenya's total exports. Tanzania is very important to Kenyan exports accounting for 8.1 percent of total exports and was ranked the third largest market for Kenyan products in 2011. Trade between the two countries is expected to continue expanding subsequent to the current EAC integration process. This, experts say, calls for Kenyan companies to position themselves to take advantage of this development. Below is a table showing the trends of trade between Kenya and Tanzania. During the meeting, the two leaders also called for increased investments in the two countries and hailed the close and fraternal relations existing between the two countries that are founded on shared social-cultural values including the common use of the Kiswahili language. "The two leaders noted that the state visit by Kikwete would facilitate further consolidation of these brotherly ties," the communiqué read. According to EPC, Kenya's total exports to Tanzania in 2011 were valued at 488 million U.S. dollars as compared to 390 million dollars in 2010. The major exports to Tanzania in 2011 included 36 million dollars worth of Palm oil and its fractions, 27 million dollars of Soap, 22 million dollars of medicament mixtures, 21.5 million dollars Animal or vegetable fats, 20.7 million dollars Flat rolled products of iron, 16.3 million dollars Sugar confectionery, 16.1 million dollars aluminum table and household articles, 12.7 million dollars of margarine.
Kenya's imports from Tanzania were valued at 185.4 million dollars in 2011, an increase from 126 million dollars in 2010.
Major import products from Tanzania that dominated in 2011 included furnishing articles, paper and paperboard, maize, electric transformers, textiles, rice, animal products, tubes and pipes flour and meals of oil seeds & vegetables among others. The two countries held the second session of their Joint Commission for Cooperation (JCC) on Sept. 9-10 where experts deliberate and made decisions on a wide range of areas including: public service, immigration, environment, social affairs, education, health, security, trade and investment, infrastructure, information and communication, agriculture and youth affairs. Both Kikwete and Kibaki directed the relevant agencies to ensure timely implementation of these decisions in order for the envisaged benefits to accrue to the peoples of the two countries. They further directed that the Joint Commission for Cooperation holds timely and regular sessions. They observed that both countries were currently implementing national Blue Prints namely, Kenya's Vision 2030 and Tanzania's Vision 2025, and agreed on the need to identify common areas in the two Plans where synergy could be created for the benefit of the two economies. The two leaders discussed the effects of climate change and agreed to continue collaborating on the efforts to protect the environment, the shared ecosystems and natural resources to ensure sustainable development. They also discussed the issues of maritime incidents and accidents along the Indian Ocean coast and in Lake Victoria and agreed on the need to develop a joint intervention mechanism to deal with the disasters resulting from these incidents. SOURCE: THE GUARDIAN
Lake Victoria Mining Company, Inc. : Lake Victoria Commences Core Drilling at Uyowa Gold Project Tanzania, East Africa
03/07/2012| 09:15am US/Eastern (LVCA:OTCBB) - Lake Victoria Mining Company, Inc. ("Lake Victoria" or the "Company") is pleased to announce the beginning of a 1,500 meter core drilling program whereby the company hopes to establish the first fully reportable gold resource at Uyowa in northwestern Tanzania.
DEFINITION DRILLING
Near the end of 2011, a Phase 1, 29 hole, 2,470-meter reverse circulation (RC) drill program was completed at Uyowa; these holes were drilled on north-south fences spaced 80 meters apart (Press Release 27th October 2011). This Phase 1 drilling appears to have delineated a continuous, single, 1,700 meter long gold bearing structural zone. At this time, drilling has only tested the zone to a depth of about 60 meters, and the gold values appear to continue beyond the current 1,700 meter strike length.
Results suggest that at least 4 additional mineralized veins appear to have been delineated within the western to central parts of the structure. For a distance of about 300 meters, these additional veins appear to contain increased widths and increased gold grades. Some of these RC drill grades and widths are: 17.6 g/t over 6 meters, 11.41 g/t over 2 meters, 4.1 g/t over 10 meters, 4.06 g/t over 13 meters, 10.41 g/t over 3 meters, 27.16 g/t over 4 meters* and 3.43 g/t over 6 meters. *
* Indicates results reported from Reverse circulation drilling by Ashanti GoldFields in 2003 prior to Lake Victoria acquiring the property.
The current 1,500-meter core-drilling program is designed to define geologic controls of the four new veins in the western to central parts of the east-west trending shear zone. Core holes are planned on north-south fences spaced 40 meters apart; the holes will test mineral extensions to a vertical depth of about 150 meters. To confidentially compare gold grades and widths, a select number of core holes will carefully "twin" particular RC holes. If the core holes and the RC holes provide similar results, a new gold resource can be calculated with increased confidence.
RECONNAISSANCE DRILLING
There are at least seven additional Uyowa geochemical and geophysical targets that have been selected for reconnaissance rotary air blast (RAB) drilling; four of these targets include:
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