FINANCING SOCIAL PROTECTION
PROGRAMS
Building National- Owned and Funded Social Protection
System – a Case of Kenya
Arusha, Tanzania
15th - 17th December, 2014
1
Ali Noor Ismail
Principal Secretary
Ministry of Labour Social Security & Services
Presentation Outline
 Country Profile
 Background of social protection in Kenya
 Components of social protection
 Gaps in social protection measures (Social assistance, Social
security , Health insurance)
 Common policy issues
 Reforms in social protection; policy and Program level
reforms
 Lessons Learnt
 Conclusions
Country Profile
Population approximately -40
million
Orphans estimated at 2.6 million
Older Persons 60 years+ 1.9
million
46% of population live below
Poverty line
19% extremely poor population
HIV and AIDS Prevalence 6%
Poor households with OVCs
1,371,903
Poor households with 65+ years
3
504,114
Background of social protection in Kenya
Traditional (informal) Social protection interventions have
been implemented in Kenya for many years (care and
support to orphans & widows, weddings and funerals ….);
Formal Social Protection have been there to address
poverty and vulnerability have been implemented since
independence through Policies, strategies and programs;
However, Impact has remained minimal due to
fragmentation of these policies, strategies and programs;
They have not created adequate jobs;
Nor have they supported poverty reduction
Components of social protection in Kenya
Provided health
cover
(NHIF and other
private health
insurance
schemes) (mainly
contributory)
HEALTH INSURANCE
Health risk Management
SOCIAL SECURITY
Labour market instruments,
(NSSF, Public Servant Pension
Scheme, private schemes,
SocialEmployment injury benefits)
Protection
SOCIAL ASSISTANCE
Equity and Poverty
Reduction
Mitigates risks
associated with
employment and
efficient operation
of labour markets
– (mainly
contributory)
When resources- either
cash or in-kind, are
transferred to the poor
and vulnerable
Gaps in the social assistance measures
Policies and programs are still scattered, fragmented and not
effectively coordinated - leading to governance issues (including;
duplication, mismanagement or wastage of resources, poor
targeting)
Programs are irregular, unpredictable and insufficient
Support provided by some agencies is limited in scope and not
sustainable
Cash transfer programs lack supporting complementary
programs – no synergy
The social assistance programs lack supportive interventions to
aid graduation
Some social protection interventions leave out the poorest
groups – e.g. credit facilities
Gaps in Social Security & Health Insurance
The social security sub-sector is made up of mainly
contributory intervention (for the employed and those who
can afford)
 They have low coverage – leaving out most of those in the
informal sector
 The benefits are inadequate
 The Health Insurance sub-sector -Apart from the new civil
servants scheme, which covers both in and outpatient services,
NHIF only provides in-patient cover to the rest of the
contributors
 The Private Health Insurance schemes cater for high and middle
-income earners- who are able to pay for their contribution

Common policy Issues
 Affordability – There must be political will and acceptability by tax
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payers & policy makers
Accountability – For both implementer and beneficiaries
Conditionalities vs non conditionalities
Coverage - Universality vs Targeting
Dependency- How do we avoid this?
Sustainability – How do we build medium and long term strategies
Strategic Policy issues vs immediate response
Duration of support under a particular program- How can we
facilitate graduation?
A; TOWARDS SYSTEMS APPROACH - POLICY
REFORMS
Legal and Policy Reforms
The Constitution of Kenya (2010) contains a comprehensive Bill
of Rights.
Article 43 guarantees all Kenyans their economic, social, and
cultural rights.
It asserts the “right for every person…to social security and
binds the State to provide appropriate social security to
persons who are unable to support themselves and their
dependants.”
Kenya Vision 2030- The social pillar seeks to build ‘a just and
cohesive society with social equity in a clean and secure
environment- based on transformation in eight social sector
areas-education, health, agriculture etc;
Legal and policy reforms Contd.
 National Social Protection Policy developed through a
participatory process and approved in 2012
 It builds on Kenya’s commitment to reducing poverty
and vulnerability;
 Draft Social Protection Council Bill –will provide for an
institution for coordination and coherent in the
implementation of SP strategies and policies- currently
collaboration is on gentleman’s agreement;
 Draft Sessional Paper provides articulates broad
strategies for implementation of the SP Policy – it will
ensure effective and efficient delivery of SP policies,
strategies and programs (help expand coverage);
Policy Reforms
 All social protection implementers are currently aligning their
frameworks to the National Social Protection Policy (NHIF
and NSSF);
 The NSSF Act No. 45 of 2014 converted the NSSF fund
from a provident fund to a pension scheme.
 It also aims at expanding coverage of social security (NSSF
scheme) to include informal sectors and government
employees – with a goal of reducing dependency levels.
 This will give employees in Kenya opportunity to have
adequate pension, financial sustainability and modernity of
retirement systems in the long run
Policy reforms Contd.
 NHIF has been expanded to reach more beneficiaries
including those in the informal sector through subsidized
monthly contributions
 Plans are underway to implement universal healthcare
 Another reform in the NHIF is aimed at expanding the
current inpatient scheme to cover the outpatient aspects such
as laboratory services, drugs and minor surgeries
Other ongoing initiatives
 Plan are underway to establish a National Social
Protection Fund as envisaged in the Policy;
 Establishment of UWEZO Fund to provide affordable
loans to women and youth
B; PROGRAM LEVEL REFORMS
Cash transfer program reforms
 Establishment of the National Safety Net Program (NSNP)
to help realize the objectives of the National Social
Protection Policy; - consolidation of cash transfer to
improve on efficiency and effectiveness and attract more
funding
 Linking CT beneficiaries to other subsidy programs
including health and agriculture (piloting is currently on a
health subsidy with 23,000 households with OVC)
 Linking CT beneficiaries to empowerment programs eg
Kenya Youth Empowerment Program – to aid graduation of
beneficiaries
Expansion of allocation to CTs 2005-2014
17
What enabled expansion of funding?
 Social protection is a key strategies in the manifesto of the
ruling party
 There is great political will from the highest office in
government
 Members of parliament support through budgeting process –
allow them to provide services to their constituencies
 Cash transfer is a flagship program in the vision 2030 and
must therefore be funded
 Commitment of the government to implement the
Constitution – progressive realization
Lessons Learnt
 While donor support is good, government funding is key for
sustainability of the programs
 Good governance is critical for successful implementation of
all programs
 Long term strategies should be incorporated in programs to
allow resource allocation
 Programs must be engendered to include the needs of all
vulnerable groups for acceptance
 Cash transfer should be linked to other programs to enhance
the capacity of households e.g. public works, micro-finance,
livelihood projects etc.- (this will allow for graduation of
beneficiaries
Lesson Contd..
 Coordination process should not be left as a choice – but
should be derived from an institutional framework so as to;
build synergy between the various stakeholders
take advantage of the competencies of various agencies
enhance ownership and commitment to program
implementation
Allow for sharing of lessons from different stakeholders
Lessons Contd..
 A good communication strategy is important for successful
implementation
 For effective & efficient delivery of social protection,
interventions programs must be comprehensive and
integrated;
 Programs must have well managed data systems to allow
for synergy- we must create SP systems, not ad-hoc
implementation;
 There should be good M&E System for social
protection;
Conclusions
 Development of Policies and enactment of legislations
for social protection programs should be made a priority;
 Political will, good leadership and accountability are
key components for gaining fiscal space that can sustain
SP programs- Kenya has achieved this;
 Access to essential services including education,
healthcare, birth registration by all citizens to
complement CTs should be ensured;
ASANTENI SANA