Kenya

The outcome of the Export Development Project (EDP) for Kenya was marginally satisfactory. The project achieved some of its objectives, institutional development wa... Show More + s negligible, sustainability is uncertain, and the performance of both the Bank and Borrower was marginally satisfactory. Several lessons can be learned from this project. First, The EDP suffered significantly from high turnover among task managers, resulting in inconsistent supervision. It is clear that successive task managers were unaware of the status of key components of the project and unsure of what actions they should be taking to keep the project on track. An established hand-over procedure, including a detailed memo outlining the current status of each element of the project and necessary future actions, might mitigate this type of problem in the future. Second, the experience with pre-shipment export finance in Kenya should not be cause to reject similar programs elsewhere, but should be viewed as an example of how an otherwise sound program can be abused in the absence of adequate oversight by both the Borrower and Bank. Finally, the GOK must continue to improve the transparency and consistency of its implementation of economic reform to achieve credibility in the eyes of private entrepreneurs. Show Less -

The outcome of the Agricultural Sector Management Project for Kenya was satisfactory. The project achieved its core objectives, its impact on institutional developm... Show More + ent was substantial, sustainability is uncertain, and the performance of both the Bank and Borrower was satisfactory. Several lessons can be learned from this project. First, the project clearly demonstrates the need for a carefully designed, comprehensive institutional development plan, accompanied by a pragmatic implementation strategy. In its absence, capacity building could end up as a non-sustainable ad hoc exercise. Second, while TA is an essential ingredient for getting institutional strengthening measures underway, the socio-political climate and policy environment should be carefully weighed and factored in at the time of designing a project. Third, the comprehensive and effective reform of the public sector, including the civil service, is essential for supporting development interventions such as ASMP. Fourth, as budget rationalization is an on-going process, measures to improve the budgetary process and overall quality of the budget have to constantly be instituted. Fifth, for projects containing a substantial training component, there should be a clear assignment of responsibilities for the implementation of the training program, with special attention given to the design. Finally, project implementation arrangements should be reviewed periodically. Show Less -

The outcome of the Financial Sector Adjustment Credit Project for Kenya was unsatisfactory. The project achieved some of its objectives, institutional development w... Show More + as modest, sustainability is uncertain, and the performance of both the Bank and Borrower was marginally satisfactory. Several lessons can be learned from this project. First, reform is a technical as well as political process. Second, up-front actions required from the Government before the release of the first tranche were few. This prevented IDA from gauging the political feasibility of some of the components of the reform program, such as bank restructuring. Finally, interest rate liberalization was implemented with success. However, whether its timing was appropriate is questionable. Show Less -