Kenya

Using newly collected survey data on direct supplier-multinational linkages in Chile, Ghana, Kenya, Lesotho, Mozambique, Swaziland, and Vietnam, this paper first evaluates... Show More + whether foreign investors differ from domestic producers in terms of their potential to generate positive spillovers for local suppliers. It finds that foreign firms outperform domestic producers on several indicators, but have fewer linkages with the local economy and offer less supplier assistance, resulting in offsetting effects on the spillover potential. The paper also studies the relationship between foreign investor characteristics and linkages with the local economy as well as assistance extended to local suppliers. It finds that foreign investor characteristics matter for both. The paper also examines the role of suppliers' absorptive capacities in determining the intensity of their linkages with multinationals. The results indicate that several supplier characteristics matter, but these effects also depend on the length of the supplier relationship. Finally, the paper assesses whether assistance or requirements from a multinational influence spillovers on suppliers. The results confirm the existence of positive effects of assistance (including technical audits, joint product development, and technology licensing) on foreign direct investment spillovers, while the analysis finds no evidence of demand effects. Show Less -

This report covers findings of Environmental and Social Impact Assessment (ESIA) study that was originally conducted by ESF Consultants and thereafter updated by the... Show More + Water Security and Climate Resilience Project (WSCRP) Lead Safeguards Specialist and Consultant-Tito Kodiaga. The Lower Nzoia Irrigation Development Project (LNIDP) will involve the construction of new water abstraction, conveyance, and distribution and drainage structures. It will also involve the construction of inspection and farm roads along the major infrastructure and farmers’ fields. The higher level development objective of the project is to increase food production and food security, including access to better nutrition and enhanced standards of living for the local communities in the project areas. Key indicator to measure the achievements of this goal is the increased agricultural production. The project development objectives are to revitalize agricultural development in the project areas by enhancing the production of high value crops and increasing employment opportunities and income for smallholder farmers within the project areas. Show Less -

The Executive Directors approved the credit for the Kenya Judicial Performance Improvement Project in the amount of SDR 78.9 million (US$120 million equivalent) on the... Show More + payment terms and conditions set out in the Memorandum of the President. Directors noted that recent constitutional changes had created a window of opportunity for reforming the judiciary. They welcomed the positive steps that the Government of Kenya has taken thus far to strengthen the judiciary, as well as the judiciary's preparation of a transformational reform agenda. Directors urged the Government to continue to support judicial reform, to expand the availability of professional judicial services, and to sustain the financial and administrative independence of the judiciary so that it can effectively carry out its duties. They also welcomed the project's emphasis on capacity building, public outreach, and complementarily with the efforts of other partners. Show Less -

Kenya's new constitution marks a critical juncture in the nation's history. It is widely perceived, by Kenyans from all walks of life, as a new beginning. Indeed, many... Show More + feel that post- independence Kenya has been characterized by centralization of political and economic power in the hands of a few, resulting in an uneven and unfair distribution of resources and corresponding access to social services; the opposite of an inclusive state. Born of the political opportunity created by the 2008 post-election violence, the constitution finally adopted, after almost a decade of unsuccessful reform attempts, presages far-reaching changes. Its vision encompasses a dramatic transformation of the Kenyan state through new accountable and transparent institutions, inclusive approaches to government and a firm focus on equitable service delivery for all Kenyans through the newly established county governments. Devolution is at the heart of the new constitution and a key vehicle for addressing spatial inequities. A more decentralized government makes eminent sense, given Kenya's diversity and experience with political use of central power. Decentralization has been increasingly seen and adopted worldwide as a guarantee against discretionary use of power by central elites as well as a way to enhance the efficiency of social service provision, by allowing for a closer match between public policies and the desires and needs of local constituencies. Kenya's constitution entrenches devolved government by guaranteeing a minimum unconditional transfer to counties under the new dispensation. The devolution train has already left the station: the challenge is to make sure it arrives at destination, safely and on time. The politics of devolution explain the high intensity of hopes and expectations that have been pinned to it. It also means there are high risks if they are disappointed. There are great opportunities and enormous challenges waiting for Kenya, in a critical election year, which will determine the fate of the country, politically and economically for years to come. This report takes a snapshot look at the critical issues facing Kenya's policy makers today. It does not argue for or against devolution (a decision that belongs solely to Kenyans), but presents suggestions and recommendations on how best to navigate the tough choices ahead. It's main focus in on helping Kenya manage a delicate transition. Show Less -

Two trends in financial inclusion that are widely discussed today are the development of savings products designed specifically for poor clients and the ability to deliver... Show More + financial products over the mobile phone. P9 is a savings product that was developed and tested in Bangladesh to meet poor people's variable savings and credit needs. M-PESA is a mobile payments product that was launched and scaled up in Kenya to enable the mass market to move money more easily. This Brief highlights the experience of Jipange KuSave, the mobile version of P9 designed to work over the M-PESA system. Show Less -

Kenya's economy has been running on one engine. Kenya's strong engine is domestic consumption, which accounts for 75 percent of Gross Domestic Product (GDP). Kenya's... Show More + weak engine remains its exports, which have been declining sharply in relative importance. Kenya's top four main exports do not earn enough to pay for oil imports, not to mention other imports. It will be very difficult for Kenya to achieve high growth over an extended period of time because of its existing economic imbalances. Kenya needs to increase its export competitiveness. It is clear that Kenya's trade performance is below its potential. The objective of this overview is to provide some of that analysis and to contribute to the policy dialogue on the role of exports Kenya's future growth. This paper focuses on five issues: 1) overall trade orientation and export growth; 2) merchandise export trends; 3) merchandise exports by sector; 4) merchandise exports by destination; and 5) diversification. The growth of merchandise exports has been slow and volatile. The average annual growth rate of merchandise exports has been only 10 percent. And while countries such as Vietnam have has a distinct export growth trajectory with steady growth in merchandise exports year after year, Kenya's pattern has been rather volatile with a few good years followed by major falls. Export growth has been driven primarily by existing products in existing markets. Overall there has been little new product/new market discovery. Show Less -

Agriculture is one of the most important sectors in Kenya and its performance greatly affects the poor. In addition to its importance as a source of food and income,... Show More + the sector directly accounts for 24 percent of Kenya's Gross Domestic Product (GDP), and for another 25 percent indirectly through linkages with other economic sectors. It provides about 70 percent of rural employment. Kenyan agriculture is dominated by smallholder farmers, pastoralists, and fisher-folk who together comprise around 4 million households. Farms are small, averaging one hectare. The sector faces many challenges including low productivity, poor market access, low levels of commercialization, inadequate infrastructure, and increasing weather variability. This note has summarized the lessons learned from a gender-disaggregated survey in Kenya. The distinction between a 'primary farmer' and a 'head of household' proved to be relevant and useful because women in most cases were the primary farmers in their households, but seldom headed their households. Show Less -

The health equity and financial protection reports are short country-specific volumes that provide a picture of equity and financial protection in the health sectors... Show More + of low-and middle-income countries. Topics covered include: inequalities in health outcomes, health behavior and health care utilization; benefit incidence analysis; financial protection; and the progressivity of health care financing. Kenya's government is committed to improving equity and financial protection in health by implementing the Second National Health Sector Strategic Plan (NHSSP II). Kenya spends 4.3 per cent (2009) of its gross domestic product (GDP) on health. This is lower than the average spending levels in other lower income countries in Africa, which spent an average of 6.5 per cent (2009) of their GDP on health. The functions of the health system in Kenya have historically been centralized through top-down decision-making and resource allocations. However, in the past decade Kenya has committed to decentralization of certain core functions to the district level. These include managing the health management system, making resource allocation decisions, and delivering health services. The central government maintains control over the majority of the key functions of the health system including staffing, contracting, and maintaining the national health information system. Kenya has a form of social insurance through the 40 year-old National Hospital Insurance Fund (NHIF). Employees in the formal sector are compulsorily insured and must make monthly contributions from their wages. Show Less -

Substantial declines in infant and under-5 mortality have taken place in recent years in many countries in Sub-Saharan Africa. Kenya's infant mortality rate has fallen... Show More + by 7.6 percent per year, the fastest rate of decline among the 20 countries in the region for which recent Demographic and Health Survey data is available. Kenya's rate of postneonatal deaths per 1,000 live births fell by more than half over a five-year period, dropping from 47 to 22, as measured using data from the 2003 and 2008-09 Demographic and Health Surveys. Among the possible causes of the decline are various targeted new public health initiatives and improved access to water and sanitation. A Oaxaca-Blinder decomposition using Demographic and Health Survey data shows that the increased ownership of insecticide-treated bednets in endemic malaria zones explains 39 percent of the decline in postneonatal mortality and 58 percent of the decline in infant mortality. Changes in other observable candidate factors do not explain substantial portions of the decline. The portion of the decline not explained may be associated with generalized trends such as the overall improvement in living standards that has taken place with economic growth. The widespread ownership of insecticide-treated bednets in areas of Kenya where malaria is rare suggests that better targeting of insecticide-treated bednet provision programs could improve the cost-effectiveness of such programs. Show Less -

Poor sanitation costs Kenya 27 billion Kenyan Shillings each year, equivalent to US$324 million, according to a desk study carried out by the Water and Sanitation Program... Show More + (WSP). This sum is the equivalent of US$8 per person in Kenya per year or 0.9 percent of the national Gross Domestic Product (GDP). The costs of poor sanitation are inequitably distributed with the highest economic burden falling disproportionately on the poorest. This study provides an estimation of economic impacts on populations without access to improved sanitation in order to provide information on the losses to society of the current sanitation situation. While not all these economic impacts can be immediately recovered from improved sanitation practices, it provides a perspective on the economic gains that are available to countries through a range of policies to mitigate these impacts over the longer term. Underlying data sets to estimate economic impacts are weak; the study therefore uses objectively verified data sources and conservative numbers to estimate economic impacts. Several impacts have been excluded due to lack of data. Therefore the total costs of poor sanitation in this report are likely to be a significant under estimate. Show Less -