Memorandum submitted by Oxfam
GENERAL CONTEXT
Despite the social and economic progress made
after independence, the rich in Kenya have become steadily richer,
while the poor are increasingly impoverished. Aid levels to Kenya
declined dramatically in the 1990s. There is now a window of opportunity
for donors to support the new government in Kenya and provide
financing for achievement of the Millennium Development Goals.
Kenya's population is estimated to have reached
31 million in 2002, about 75% to 80% of whom live in the rural
areas. Only about 18% of the land area is good agricultural land,
and this supports 80% of the population. The remaining 20% of
the population lives on land that is arid and semi-arid.
The country's resources have become increasingly
concentrated in the hands of a few, with 10% of the population
holding 48% of the wealth. The proportion of the population living
below the national poverty line reached 56% in 1997, and this
has remained the current national estimate but is projected to
increase to 65.9% in 2015 if current trends continue. A number
of factors contribute to these projected increases including low
economic growth from 1994, and a rise in consumer prices. The
impact of bad governance, inefficient uses of public resources,
corruption, and structural adjustment programmes have also significantly
contributed to Kenya's poor economic performance.
However, the current political and economic
situation looks promising with a new government that has a vision
to "work together with all Kenyans to bring about effective
economic reforms and growth". The government has pledged
to revitalise the country's economy by streamlining economic and
financial management as well as harmonising mechanisms for implementation.
Development partners have the opportunity to support these efforts,
in particular by strengthening key institutions and establishing
a rights-based approach to development.
The focus of Oxfam's programme in Kenya is on
helping communities to achieve sustainable livelihoods and food
security. Providing access to basic services including clean water
and sanitation, and speaking up for the protection of rights (particularly
for women and children) and for land tenure, Oxfam works with
urban, agricultural and pastoral populations.
KENYA'S
ECONOMIC GROWTH
During the post independence era (from 1964
to 2000), Kenya's economy saw a growth in the 1960s (6.6% average
growth over 1964-72). This has now declined (5.2% over 1974-79,
4% over 1980-89 and 2.4% over 1990-2000). This decline in economic
performance has, since 1980, been matched by declining investment
levels thus reducing the country's growth potential. This unsatisfactory
performance was due to unfavourable macroeconomic policies, the
slow pace of structural reform, and governance problems.
The lack of sustained economic recovery in the
1990s resulted in an overall decline in per capita income. Economic
prospects in the late 1990s have been further aggravated by net
outflows of external funding from the public sector and an increase
in the government's recurrent costs (mainly wages and salaries),
with the result that public investment has declined relative to
overall investment. Today, a huge amount of investment is required
by the private sector to enhance its ability to compete with other
markets.
During the 1990s the manufacturing and agricultural
sector registered a declining growth that has resulted in loss
of jobs and increased poverty. In the first phase of import substitution
and industrialisation many Kenyan businesses could not compete
in the face of liberalisation and had to close down. Existing
businesses are now facing competitive challenges both regionally
and globally whilst working under WTO regulations. A key challenge
of the fiscal strategy for the Poverty Reduction Strategy planning
cycle is how to reverse these negative trends.
KENYA'S KEY SOCIO-ECONOMIC INDICATORS
| Indicator | Value
| Year |
| Population size (million) | 28.7
| 1999 |
| Population growth rate (%) | 2.9
| 1999 |
| Life expectancy at birth (yrs) | 46.4
| 2003 |
| GNP per capita (US$) | 1.022
| 2000 |
| Human Development Index (value) | 0.489
| 2001 |
| Human Development Index (rank) | 146
| 2001 |
| % of population below national poverty line
| 56 | 1997 |
| Prevalence of HIV/AIDS in adult population aged 15-49 yrs (%)
| 10.1 | 2002 |
| Population without access to drinking water supply (%)
| 55 | 2000 |
| Percentage of underweight under 5 children |
32.5 | 1999 |
| Adult literacy rate (%) | 83
| 2003 |
| Net enrolment rate in primary education (%)
| 73.3 | 2000 |
| Ratio of girls to boys in primary education (%)
| 74.8 | 2000 |
| Under five mortality rate (per 1,000 live births)
| 100 | 1999 |
| Maternal mortality rate (per 1,000 live births)
| 590 | 1998 |
| | |
WHAT ARE
THE PROSPECTS
OF KENYA
MEETING THE
MILLENNIUM DEVELOPMENT
GOALS?
A window of opportunity exists for DfID to support the Kenyan
government in implementing policies to meet the Millennium Development
Goals. The Kenyan government has demonstrated its commitment to
reducing the unacceptably high levels of poverty. Further capacity
building by donors including DfID would assist the government
in efficiently implementing the following initiatives:
— The National Poverty Eradication Plan (NPEP),
which seeks to strengthen the capabilities of the poor and vulnerable
groups.
— The Poverty Reduction Strategy Plan from 2001,
a consultative process aimed at reducing poverty and which links
the national budgeting process through the Medium Term Expenditure
Framework.
— The participatory review of the National Food
Policy, that the Kenyan government is conducting to address causes
of food insecurity at household levels.
— The school feeding programme targeting the arid
and semi-arid areas has supplemented dietary needs and improved
children's participation and performance in schools.
— The Government has now launched the Economic Recovery
Strategy (ERS) for Employment Creation and Poverty Reduction 2003-07
to focus attention on specific, deliverable poverty reduction
targets.
The Economic Recovery Strategy (ERS) for Employment Creation
and Poverty Reduction integrates a number of areas including the
Poverty Reduction Strategy Plan (PRSP) consultation report, plans
for development and the National Rainbow Coalition Manifesto.
This strategy for economic recovery is expected to provide both
a national vision and overall goals for Kenya's economic and social
transformation in the medium term.
From the outset Oxfam GB was involved in consultation for
the Poverty Reduction Strategy Paper. Oxfam's long history of
working with pastoralist communities since the 1980s following
two major droughts, provided a strong basis to provide support
for pastoralist organisations who wished to contribute to the
policy dialogue with the Kenyan government.
Support from Oxfam for groups to engage in consultation with
the government, including through the PRSP process, led to the
formation of two networks—the Pastoralist Steering Committee
and latterly the Kenya Pastoral Forum—which have sought
to raise pastoralist issues at a national level directly to government.
Following the failure of the Interim Poverty Reduction Strategy
Plan (I-PRSP) to adequately address pastoralist issues, the Pastoralist
Strategy Group (PSG) was also formed which integrated involvement
from a range of stakeholders including government and civil society.
This group has worked throughout the formulation of the full PRSP.
The group's secretariat, which has been funded by Oxfam GB and
Action Aid, has worked closely with the Government of Kenya's
Government Arid Lands Resources Management Project.
Together with the Poverty Reduction Strategy Plan, the National
Development Plan and district plans that are already strongly
poverty-oriented, the Economic Recovery Strategy process promises
to deliver substantial improvement to Kenya's poorest people over
the coming years, through employment creation and poverty reduction.
The Economic Recovery Strategy proposes a transformation of the
way government is run, so that the incentives facing individuals
and organisations are changed in a manner that encourages ethical
and development-focused behaviour and increased efficiency.
Some key elements are already in place to encourage such
a change. These include the Medium Term Expenditure Framework
process, Poverty Reduction Strategy Plan consultations and sector
working groups. In addition, the protection given to priority
expenditures on core poverty programmes (ring-fenced within the
national budget), give a clear-cut direction of the government's
future agenda. These arrangements give new incentives to government,
NGOs and other development partners, demonstrating that proposals
for public and other funding have a clear poverty rationale.
THE EXTENT
TO WHICH
DFID'S
COUNTRY ASSISTANCE
PLAN IDENTIFIES
THE CHALLENGES
THAT KENYA
FACES
The Country Assistance plan captures the increase in national
poverty levels in the country from 48% in 1990 to 56% in 2001.
The DfID paper also has a good analysis of the causes of poverty,
governance and poor targeting of resources to the productive sectors
of the economy particularly in agriculture and investment in the
private sector.
The Country Assistance Plan captures the favourable changes
that are current to Kenya including the new and responsive government.
We note that DfID is prepared to support the government in its
implementation of the Economic Recovery Strategy through budgetary
support, and welcome the flexible approach identified which includes
working with other development players including civil society
organisations and the private sector.
DfID recognises the need to work towards a vision under which
government, donors and other stakeholders share a single strategy
for the implementation of the Economic Recovery Strategy. Oxfam
shares this view that a shared vision will greatly assist the
efficient implementing of policies to improve the country's economy.
CHALLENGES WHICH
KENYA FACES
IN MEETING
THE MILLENNIUM
DEVELOPMENT GOALS
1. Eradicate Extreme Poverty and Hunger (Goal 1)
The high incidence of poverty has greatly undermined the
government's ability to address the pressing needs in such critical
sectors as health care and nutrition, and basic education. Low
productivity in the key sectors of agriculture, trade and industry
serve to entrench poverty and increase malnutrition rates. Only
increased economic growth with equity can lift the country out
of this vicious circle of poverty.
The magnitude of the HIV/AIDS epidemic is a major social
and economic challenge in Kenya. Its effect on the economy and
the entire society needs deeper analysis for effective measures
to be undertaken. The effects of the epidemic in all sectors of
production both in rural and urban areas pose a great challenge
to the realisation of the Economic Recovery Strategy.
Governance, corruption and inefficient use of public resources
still remain barriers to the achievement of the national targets
on poverty reduction. Bad governance and corruption has contributed
highly to the current poverty levels in Kenya. This is manifested
in a lack of transparency and accountability in the management
of the resources meant to benefit the wider public. Government
funds have been diverted from the intended recipients (individuals
and specific projects). The government system for service delivery
has lacked transparency and basic services have not been provided
for many poor people.
Inequality is a key development challenge and the Economic
Recovery Strategy needs to address this issue. NGOs and other
actors should help monitor progress to address inequality by holding
the government and policy makers to account.
Food insecurity, especially in regions that are prone to
drought and starvation, continues to pose a challenge for poverty
reduction. A comprehensive Food Policy, that not only addresses
short-term interventions during emergencies, but also builds links
between low levels of agricultural production and food storage
systems, is needed to cushion the country during lean seasons.
Recommendation 1: Donors including DfID should support
NGO and other civil society's efforts to ensure measures to address
inequality are both included in the design and implemented in
the execution of the Economic Recovery Strategy.
Recommendation 2: The Kenyan Government needs to implement
a food security policy that addresses the root causes of poverty,
not simply a policy limited to short term responses in emergencies.
DfID could support them in this effort.
2. Achieving Universal Primary Education (Goal 2)
Education is the best tool to address poverty. Despite the
declaration and implementation of the Free Primary Education For
All initiative in Kenya, more progress is required to meet this
aim. Of paramount importance are policies to ensure access and
retention of pupils, and to improve the quality of education for
all groups in a country where over 50% of the population is below
15 years old.
Regional disparities regarding education are glaringly obvious
given the lifestyles of different groups and communities in Kenya.
Pastoralists and people living in informal urban settlements face
continued problems of poor access, quality and retention in schools,
which the Free Primary Education initiative is meant to solve.
Many schools in both pastoralist areas and informal settlements
are under-staffed, and the majority of the teachers are untrained.
Oxfam works with partner organisations in urban informal
settlements addressing child rights issues. The Oxfam education
programme focuses on the rehabilitation of street children and
other destitute urban slum children through non-formal education
programmes, vocational training and linkages to formal schools.
Support to non-formal education initiatives in urban settlements
acts as a focal point around which the urban poor are mobilised
and organised to analyse their own situation and come up with
appropriate solutions.
It is apparent that the formal education system in Kenya
cannot reach all children. Oxfam has supported the Education civil
society group Elimu Yetu that has engaged with the Poverty Reduction
Strategy Plan process. More support is needed to assist marginalised
communities to lobby the government to ensure they access education
on the same footing as other communities in the rest of the country.
Recommendation 3: The Kenyan education policy, and donor
support of Kenya's education programmes such as DfID, must include
measures to widen access to education to cover non-formal education
needs. In this regard a commitment to Non-Formal Education should
be reflected in a revised Education Act.
Recommendation 4: Relevant Kenyan Government ministries,
and donors supporting their programmes such as DfID, must provide
sufficient financial resources for non-formal education to improve
access, levels of teaching and curriculum standards.
Recommendation 5: DfID and other donors should support
efforts such as the Education Fast Track Initiative to ensure
Primary education is free and fully funded for all children in
Kenya under Kenya's Education policy framework.
2. Ensure Environmental Sustainability (Goal 7)
Ensuring environmental sustainability is a major challenge
in Kenya. Wanton destruction of forests for timber and cultivation
has reduced the Kenyan forest reserves to a mere 1% of the total
forest cover.
The natural resource base—land and other natural resources—have
been destroyed. Compounded by constant changes in climatic conditions,
the major challenge is to rehabilitate and restore the environment
and especially the agricultural sector to its productive state
for economic recovery. Inadequacy of land policies has adversely
affected agricultural production. The Poverty Reduction Strategy
Plan consultations revealed that many Kenyans are landless or
squatters and lack security of tenure, a situation that has led
to conflicts. Therefore effective land use and planning policy
need to be in place to address this.
The degradation of Kenya's forest eco-systems considerably
undermines long-term economic growth prospects and socio-political
stability. Loss of soil fertility and degradation of water resources,
directly attributable to this degradation has threatened the sustainability
of agricultural development. The main challenge here is restoration
of the environmental condition to a level where it can support
production levels if the economy will be revived.
Official government statistics recognise that the highest
incidence of poverty in Kenya is in the Arid and Semi Arid (ASAL)
districts, where the poor account for nearly 80% of district populations.
They are physically isolated, have inferior access to basic goods,
services and infrastructure and rely on an uncertain natural resource
base.
The nomadic communities of pastoralists are among the poorest
and most vulnerable groups in Kenya, living on the arid and semi
arid lands. The 3.5 million pastoralists are both politically
and economically marginalised. Key development indicators—for
example, in health and education—are below those of other
population groups. Current modes of service delivery are largely
inappropriate to the priorities and needs of pastoral populations.
Oxfam's programme works to support pastoralist communities through
a development process to improve their socio-economic situation.
There is no specific government policy on pastoral development.
While covering many relevant issues, development policies in Kenya
do not focus on pastoralism per se as a livelihood. There
are a number of shortcomings in current policies. Pastoralism
is not understood or perceptions of it are negative from Government
departments. Current institutions have been ineffective in managing
increased incidence of drought and conflict affecting pastoral
communities. There is a lack of clear future vision: about where
pastoralism is heading in Kenya and what different line ministries
and NGOs should be working.
Building on its strong work in supporting local partners
for participatory local approaches and its national level advocacy
experience, Oxfam GB has developed an integrated Kenya Pastoral
Development Programme.
Recommendation 6: DfID should support the Kenyan Government
to develop and implement a national policy on pastoral development
to address the socio-economic situation that face pastoral communities.
Kenya is faced with serious recurrent droughts reducing most
of the arid and semi arid areas into deserts. Soil erosion is
high in most areas of Kenya. The deterioration in the water supply
situation has been a result of poor management of water supply
schemes, and the rampant destruction of water catchment areas.
Water catchment areas are drying up and once large rivers are
now almost mere streams.
Water facilities need to be improved to reduce land degradation
on arid and semi arid lands occupy which make about 80% of Kenyan
land.
Recommendation 7: A clear environmental strategy should
be adopted by the Kenyan Government, and supported by donors including
DfID, which addresses priority issues including forestation in
all areas, spring protection, and wetland conservation, and facilitates
the construction of appropriate water facilities.
GOVERNANCE: A
KEY CHALLENGE
THAT DFID
FACES IN
MEETING THE
MILLENNIUM DEVELOPMENT
GOALS IN
KENYA (GOAL
1)
In addition to the challenges outlined in the section covering
achievement of the Millennium Development Goals above, we would
suggest the key challenge to DfID and other development players
is to support the Kenyan Government in developing clear implementation
strategies for the policies already announced. Donors should also
press for the necessary policy changes to allow smooth implementation
of the Economic Recovery Strategy. At present, policies within
some sectors in government are preventing progress, constraining
participation of all stakeholders in the development process.
While DfID has a lot of confidence in the current government
there are concerns about the ongoing internal political wrangles
within the ruling party, which could prove a major challenge to
achievement of its development targets. It is clear at the moment
that ongoing differences among the ruling party leadership may
make the government lose its focus and direction in realising
the achievements of the planned development strategy.
The government system for service delivery has lacked transparency
and basic services have not been provided for many poor people.
However, the new government is determined to root out corruption
and strengthen the governance system.
The Anti-Corruption Bill, which was published and discussed
by Parliament, is being enacted. The Kenyan judiciary is being
restructured and corrupt judges have been dismissed. Measures
have been taken to increase the independence of the Controller
and Auditor-General (C&AG) office. To strengthen financial
management and ensure transparency an Integrated Financial Management
System has been developed which includes the posts of Finance
Officers.
The Kenyan Government is committed to developing a new constitution,
which will look seriously into matters of power sharing to reduce
excessive powers vested on a few individuals might choose to mismanage
the affairs of the government.
DfID would like to see a participatory process in reducing
poverty. While that is the right direction, the Kenyan Government
on the other hand does not seem to be clear about how to ensure
communities' participation in the implementation and monitoring
of the Economic Recovery Strategy plan.
Recommendation 8: DfID should support the Kenyan Government
in incorporating policies of accountability and financial transparency
within the Economic Recovery Strategy.
SUMMARY OF
RECOMMENDATIONS
1. Donors including DfID should support NGO and other
civil society's efforts to ensure measures to address inequality
are both included and implemented as part of the Economic Recovery
Strategy.
2. The Kenyan Government needs to implement a food security
policy that addresses the root causes of poverty, not simply a
policy limited to short-term responses in emergencies. DfID could
support them in this effort.
3. The Kenyan education policy, and donor support of
Kenya's education programmes such as that of DfID, must include
measures to widen access to education to cover non-formal education
needs. In this regard a commitment to Non Formal Education should
be reflected in a revised Education Act.
4. Relevant Kenyan Government ministries, and donors
such as DfID, must provide sufficient financial resources for
non-formal education to improve access, levels of teaching and
curriculum standards.
5. DfID and other donors should support efforts such
as the Education Fast Track Initiative to ensure Primary education
is compulsory for all children in Kenya under Kenya's Education
policy framework.
6. DfID should support the Kenyan Government to develop
and implement a national policy on pastoral development to address
the socio-economic situation that face pastoral communities.
7. A clear environmental strategy should be adopted by
the Kenyan Government, and supported by donors including DfID,
which addresses priority issues including forestation in all areas,
spring protection, and wetland conservation, and facilitates the
construction of appropriate water facilities.
8. DfID should support the Kenyan Government in incorporating
policies of accountability and financial transparency within the
Economic Recovery Strategy.
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