Select Committee on International Development Fourth Report


2 The Challenge for Kenya: Poverty Reduction and the MDGs

7. In December 2002 Kenyans elected President Mwai Kibaki's National Rainbow Coalition (NARC) to govern the country, ousting Daniel Arap Moi and a regime which was seen as authoritarian and corrupt. The election filled many Kenyans with hope: that their lives would improve; that Kenya would make progress in reducing poverty; and that the Government would become more responsive and accountable to its citizens. We felt the energy, enthusiasm and optimism ourselves of many Kenyans during our discussions, and donors too have seen the change of regime as an opportunity to re-engage with Kenya. But hopes can turn swiftly to disappointment, and windows of opportunity can close as quickly as they have opened. Now, particularly as Kenya seeks to design a new constitution and improved democratic processes, is a key opportunity for Kenya and for Kenya's donors.[3]

Progress and Challenges: Education, Corruption, Health and HIV/AIDS

8. Kenya has made good progress on several fronts since the elections of 2002, but challenges remain. On education, the new Government - with the help of £10 million of DFID funds - has instituted universal, compulsory and, most importantly, free, primary education. This move has enabled an extra 1.3 million children to attend school, illustrating clearly the demand which exists for education and learning.[4] But in the absence of increased resources, increasing access to education leads to a reduction in the quality of the education which pupils receive, something which we saw with our own eyes in the over-crowded classrooms of the school we visited in Mathare, Nairobi. There the headteacher was committed to providing access for as many pupils as possible. But he needed more resources. Teacher-pupil ratios of 1:70 (up from 1:33 since the new policy), two pupils per desk, a lack of water, and too few toilets for girls, do not make for an effective learning environment. And lower female enrolment rates, and much lower enrolment rates in rural areas including the North-East of Kenya, where formal schools are scarce, remain serious challenges.[5] In education, though much has been achieved, a lot more remains to be done. The demand for learning is evident; the development effectiveness of education, particularly the education of girls, has been demonstrated. What is lacking are the resources.

9. On corruption too, there has been significant progress. Tackling corruption and patronage when it is endemic and extends to the highest levels of political life is extremely difficult, but the Government seems to be serious about rooting out the cancer of corruption. There have been significant reforms to the judiciary, and Kenya is—according to league tables produced by Transparency International—moving in the right direction.[6] But the slow pace of change is a cause of concern, in both the public and private sectors. If people continue to encounter corruption and requests for bribes when going about their everyday activities, and accessing basic services, they will not be satisfied by high-level policy pronouncements and prosecutions. Implementation on the ground, making a difference to people's everyday lives, is what matters.[7]

10. In terms of health, HIV/AIDS and malaria there has been some progress. As the Secretary of State told us, there appears to have been some stabilisation of the HIV-prevalence rate.[8] The battle is far from over, but this is a glimmer of hope in a country where tackling HIV/AIDS is the "absolutely fundamental challenge to development", as it is across much of sub-Saharan Africa and elsewhere.[9] This in no way provides grounds for complacency. There is much that the authorities and community leaders can do to reduce the spread of HIV. It was clear from many conversations we had, with politicians, aid workers and most eloquently and memorably with female sufferers from the disease, that a major problem is a widespread aversion among males to the use of condoms, even when engaging in casual or commercial sex. There is a great reluctance to raise the issue, clearly sensitive as it is, in public debate. But this must be done if attitudes are to change and a taboo that has already proved fatal for millions of people is to be broken. A change in attitudes will have little effect unless condoms are widely available. Donors therefore need to play their part in ensuring the availability of adequate supplies of condoms in Kenya.

11. On malaria too, with DFID's help, the Government of Kenya has made progress and will save perhaps 40,000 lives as a result of phase one of its bed-nets programme.[10] Many more lives could be saved if the programme were extended to rural areas and the bed-nets made affordable for the very poor. In the health sector in general, there should perhaps be a re-balancing so that more than the currently paltry five percent is spent on prevention. We, along with DFID, hope that the Government of Kenya's budget, in June, will reflect a shift in priorities towards prevention.[11]

Economic Growth, Poverty Reduction and the MDGs

12. The MDGs will not be achieved without economic growth and job creation. Given the small size of Kenya's economy, and the current distribution of power and resources, redistribution without growth simply will not produce the goods. Growth, especially when some of its fruits can be distributed for poverty reduction, is good. And Kenya has an important role to play as the economic dynamo within East Africa. The Economic Recovery Strategy sets an ambitious target of generating an extra 2.6 million jobs by 2007. The Secretary of State reported that the private sector was making reasonable progress,[12] but highlighted the importance of the Kenyan Government moving forward with the privatisation agenda and with helping to create an environment which is conducive to business and enterprise.[13]

13. If the Government are serious in pursuing an economic reform programme along these lines they will have to address the issue of over-manning and inefficiency in the para-statal sector which has been a notorious burden on the Kenyan economy for many years, and which it will clearly take great political courage and determination to resolve. A prerequisite for successful transition is the unwinding of inefficient industries and over-manned bureaucracies inherited from the past. In the short-term this would increase unemployment above already high levels and be politically very unpopular. If the new National Rainbow Coalition in Kenya puts off dealing with this problem far beyond its current honeymoon period it may never tackle it at all, and it will then fail in achieving many of its other economic aspirations.

14. There is clearly a key role here for foreign donors, both in stiffening the Government's resolve and, most importantly, in being prepared to intervene to help alleviate some of the pressures that would otherwise be borne by those made redundant and by their families. Special measures will probably be required to make the political costs of any radical restructuring bearable. Donors might usefully consider offering to subsidise dedicated retraining and enterprise creation schemes, while the Kenyan Government might contemplate special tax breaks for domestic and foreign investment projects designed to absorb some of the people released from the para-statal sector.

15. In a situation where population growth outstrips economic growth, the prospects for poverty reduction are poor. Recognising the sensitivities around population control, Government and donors should, in our view, pay attention to both sides of the economic growth/population growth equation, improving reproductive health services and enabling women and families to make well-informed choices about family size and child-spacing.[14] Given the need for economic growth, and the huge importance of agriculture to the Kenyan economy, we were pleased to hear from Matthew Wyatt, the Head of DFID-Kenya, that the Government of Kenya has launched a strategy to revitalise the agricultural sector, and that DFID is working with both the Government and with NGOs such as Farm Africa in piloting new ways of supporting small-holder farmers.[15] We welcome the fact that DFID is paying more attention to agriculture, both in Kenya and more widely.

16. But economic growth on its own is not sufficient for poverty reduction. We share the concerns of some of the participants in the Nairobi seminar about whether the Government of Kenya's Economic Recovery Strategy—the strategy which DFID's CAP is designed to support—is sufficiently focussed on poverty reduction.[16] These concerns seem to be shared by DFID and partially explain why DFID is not providing direct budget support to the Government of Kenya.[17] Questions remain; as Hilary Benn put it: "it is not yet clear to what extent the budget will reflect expenditure which tackles poverty and improves social spending".[18] We were reassured therefore to hear the Secretary of State explain that DFID will be encouraging the Government of Kenya to adopt a more explicit focus on poverty, in part through consultation, discussion and dialogue around the CAP.[19] We firmly believe that DFID's role should be one of encouraging developing country governments to prioritise poverty reduction, rather than one of filling in the poverty gaps left by governments which have an insufficient focus on poverty.

17. If Kenya is to make progress in terms of economic growth, poverty reduction, and meeting the MDGs, then the Government of Kenya must have a well-designed development strategy, well-supported by donors including DFID. The Country Assistance Plan sets out DFID's plans. It is to this that we now turn our attention.


3   "Dissenters threaten Kenya's bold attempts to reform", The Guardian, 27 March 2004. Available at http://www.guardian.co.uk/international/story/0,3604,1179080,00.html Back

4   Q 3 [Hilary Benn, Secretary of State for International Development] Back

5   Ev 42-43 [Oxfam memorandum] Back

6   Q 3 [Hilary Benn] Back

7   Q 31 [Hilary Benn] Back

8   Q 4 [Hilary Benn] Back

9   Q 27 [Hilary Benn] Back

10   Q 3 and Q 36 [Hilary Benn] Back

11   Q 5 [Matthew Wyatt, Head of DFID-Kenya] Back

12   Q 3 [Hilary Benn] Back

13   Q 17 [Hilary Benn] Back

14   Q 15-16 [Matthew Wyatt] Back

15   Q 26 [Matthew Wyatt] Back

16   Ev 17, paragraph 4 [Action Aid memorandum], Ev 19, paragraph 4 [CARE Kenya memorandum], and Ev 24 [Farm Africa memorandum] Back

17   Q 6 [Matthew Wyatt] Back

18   Q 25 [Hilary Benn] Back

19   Q 25 [Hilary Benn] Back


 
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