DENMARK – KENYA PARTNERSHIP POLICY 2015-2020 January 2015 CONTENTS EXECUTIVE SUMMARY 3 1 DENMARK AND KENYA – INTRODUCTION AND FUTURE VISION 5 2 NATIONAL CONTEXT – CHALLENGES AND OPPORTUNITIES IN KENYA 7 3 FROM ANALYSIS AND PAST DANISH EXPERIENCE TO STRATEGIC CHOICES 13 4 STRATEGIC FOCUS AREAS & SUGGESTED AREAS OF INTERVENTION 15 5 RESULTS, MONITORING AND EVALUATIONS FRAMEWORK 22 ANNEX 1 RISK ASSESSMENT 23 ANNEX 2 INDICATORS FROM KENYA’S SECOND MEDIUM TERM PLAN 2013 – 2017 25 ANNEX 3 KEY ECONOMIC AND SOCIAL DATA 27 ANNEX 4 DENMARK’S’ ONGOING DEVELOPMENT ACTIVITIES IN KENYA 29 ANNEX 5 OVERVIEW OF PROGRESS TOWARDS THE MDGS IN KENYA 32 EXECUTIVE SUMMARY Kenya’s geographical position on the Horn of Africa and as an entrance to the East African market provides the country with strong opportunities and yet difficult challenges. Long term instability at the Horn of Africa has seen Kenya suffer problems with man-made humanitarian disasters in areas that are also affected by droughts. Since the terror attack against Westgate shopping mall in Nairobi in 2013 Kenya has been the target for an increasing number of terror attacks often related to al-Shabaab. Problems rooted in neighbouring countries have a severe spill-over effect into Kenya. Kenya has taken up these challenges by comprehensive reforms and development of the social sectors, military engagement, humanitarian cooperation and through active diplomacy seeking to find national and regional solutions. Denmark has since Kenya’s independence maintained close ties and has under changing governments and different political climates played a decisive role in support of important results within both poverty reduction and democratic development. But more needs to be done. The new constitution from 2010 with a separation of the legislative, executive and judicial arms of government, a bill of rights and a devolution of power to 47 newly established counties, provides a foundation for a government reform and transition process that holds the potential for finding solutions to deep rooted conflicts and developing a more cohesive, politically stable and rule based Kenya with a deeper involvement of the population in political decision-making. The reform process also holds the potential for high and broad-based economic growth. Women are still marginalised in political, social and economic life. Poverty oriented development engagements and the inclusion of women in both the formal and informal sectors aims to change this. The ambitious articles in the constitution about gender equality are in line with international standards, and represents enormous normative progress that are to be put into practice to improve living conditions and empowerment of women. Amidst these opportunities Kenya is faced with serious domestic problems including high levels of inequality and poverty, and critical challenges due to climate change. To spur higher and sustained inclusive economic growth, Kenya needs to address these issues. The objectives for Denmark’s future engagement will be to support the Kenyan population in advancing inclusive green growth, poverty reduction, support the democratic reform process and promote the respect for human rights. Furthermore, it will be an objective in its own right to strengthen trade and commercial relations between Kenya and Denmark as-well-as the objective of stability and security in Kenya and the wider region. With Kenya’s economic rise towards becoming an upper-middle-income country by 2030, the Kenya-Denmark partnership is increasingly becoming mutually beneficial. A strengthened cooperation in the area of trade and economic cooperation forms along with development cooperation and strengthened cooperation on stability and security the background for Kenya’s continuous role as an important partner country for Denmark. 3 36° SOUTH SUDAN 5° 37° 38° 40° Guenale Negēlē 39° Konso Administrative Boundary Yabelo Kelem Lokichokio Sabarei 5° w ETHIOPIA Todenyang Banya KENYA Da Houdat 42° a Ch'ew Bahir 41° Dolo Odo Mega Sibiloi National Park 4° Mandera Ramu (Lake Rudolf) Lokwa Kangole Kaabong 4° Banissa Lake Turkana Kakuma Central I. Central Island N. P. Moyale North Horr Takaba Lodwar T ur k w e l Moroto UGANDA South Island N. P. Marsabit Marsabit National Park South Turkana Nat. Reserve Baragoi Mount Elgon N. P. Maralal 0° Lake Kisumu Molo Shaba Nat. Res. Nyeri ia Victor CENTRAL Embu Murang'a Masai Mara Nat. Res. Mado Gashi Kora National Reserve Masinga Reservoir Lake Natron 3° Boni Nat. Res. Mtito Andei Arusha Dodori Nat. Res. Taveta Lamu Garsen Lamu I. 2° Pate I. Manda I. COAST Tsavo East National Park Tsavo West Nat.Park Moshi Kaambooni Tana River Primate Nat. Res. South Kitui Nat. Res. T s av o 5895 m National capital Provincional capital Town, village Airport International boundary Provincional boundary Main road Secondary road Other road or track Railroad 0° 1° Buur Gaabo Kolbio Arawale Nat. Res. Ungama Bay 3° G a l an a Tsavo Malindi Voi INDIAN OCEAN Kilifi Nyumba Ya Mungi Reservoir Mariakanii Same 4° Mombasa Shimba Hills Nat. Park UNITED REPUBLIC OF Moa TANZANIA Korogwe 4 ra Bilis Qooqaani La k De Hagadera Hola Amboseli Nat. Park Kilimanjaro Map No. 4187 Rev. 3 UNITED NATIONS December 2011 Liboi Bura Kibwezi Namanga 1° Garissa Kitui Sultan-Hamud L. Amboseli 35° a Mwingi A th i Kajiado Magadi 34° N ORTHEA S TER N Ta n Dif og Machakos L. Magadi 5° aB Nguni Thika NAIROBI Nairobi AREA 2° 4° North Kitui Nat. Res. Mt. Kenya Nat. Park Lo g Habaswein ' Meru Bisanadi Rahole Nat. Nanyuki Nat. Res. Meru Nat. Reserve Park Mt. Kenya Narok KENYA g so N Kinna Isiolo Aberdares N. P. Gilgil Naivasha L. Naivasha E wa 5199 m Nakuru Migori Musoma L. Baringo Marigat Nyahururu (Thomson's Falls) Londiani Kisii Archer's Post Kisima Solai Kericho Homa Bay NYANZA 1° Eldoret Kakamega Butere Mfangano I. Lorule aB 2° al WESTERN Webuye Busia Lag Maralal Game Sanctuary Kitale Tororo Laisamis or Mbale 1° Wajir Losai National Reserve R I F T VA L L E Y Tot Girito ir o am L. Oputa Tarbaj EA S TER N Lokori Su L. Bisinga El Beru Hagia South I. Lokichar 2° 3° El Wak Buna Loiyangalani SOMALIA 3° 36° 37° 38° The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations. 0 Wete Tanga 39° Pemba I. 0 40° 100 50 25 50 150 75 41° 5° 100 mi 42° Department of Field Support Cartographic Section 1 DENMARK AND KENYA – INTRODUCTION AND FUTURE VISION Denmark and Kenya have since the independence of Kenya in 1963 enjoyed strong bilateral relations. The strong people to people linkages between the two countries have been further strengthened by the high numbers of Danish tourists who visit Kenya annually, the numerous scholarships to Kenyan students and the many Danish advisors and volunteers that have contributed to the development of Kenya over the years. Through 50 years of development cooperation Kenyans know Denmark as a long term development partner. Modalities and areas of cooperation have naturally changed during these 50 years, but the overall objectives have always been poverty alleviation and support to democracy and human rights. The Danish engagement – along with other development partners – has contributed to Kenya’s significant results and progress in all three areas, but more needs to be done; far too many Kenyans still live in poverty. After 50 years of Danish development engagement in Kenya it is relevant to ask what can make a difference and what can make development and poverty reduction a reality in Kenya during the next five years? This policy paper identifies the new constitution with devolved governance along with a vibrant civil society as important drivers for change that can enable right holders to hold duty bearers accountable for making real change. Denmark will work with these important drivers for change and continue to support empowerment of women and work for a better business environment and stability in Kenya and the region. The development cooperation will have a focus on poverty alleviation. The operational choices when it comes to development cooperation will be made together with Kenyan partners in the country programming process that will follow this overall policy paper. With Kenya’s economic rise towards becoming an upper-middle-income country by 2030, the Kenya – Denmark partnership is increasingly becoming mutually beneficial. Denmark and Kenya enjoy several overlapping political interests where we cooperate closely. This entails e.g. countering violent extremism, piracy, climate change, and gender equality. Strengthened relations in the areas of trade and economic cooperation forms along with continued development engagement and partnership on stability and security the background for Kenya’s continuous role as a strategic important partner country for Denmark. The Westgate terror attack in Nairobi in September 2013 was an attack not only on Kenya, but also on other partners that support the efforts for establishing stability and peace in the region. Kenya has during 2014 been the target for a high number of increasingly sophisticated terror attacks often related to al-Shabaab. This calls for an even stronger cooperation and solidarity with Kenya and the region in the area of stability and security. Kenya’s geographical position on the Horn of Africa and as an entrance to the East African market provides the country with strong opportunities but yet difficult challenges. Long term instability at the Horn of Africa has seen Kenya suffer problems along its border with instability, frequent terror attacks and man-made humanitarian disasters. Due to this instability Kenya has for decades played host to hundreds of thousands of refugees primarily from Somalia and Sudan. Kenya has taken up these challenges through security arrangements, military engagement, humanitarian cooperation and active diplomacy in order to to find regional solutions. Kenya’s political importance as a democracy with a free press, a relatively well educated labour force, a tradition for a stable economic environment and Nairobi’s role as a financial centre gives Kenya a further natural role as an African regional centre. The new constitution from 2010 with its separation of the legislative, executive and judicial arms of government, a bill of rights and a devolution of power to newly established counties, provides a foundation for finding solutions to deep rooted conflicts and developing a more cohesive, politically stable and rule based Kenya. A Kenya where the citizens’ role as rights holders can be greatly enhanced. Amidst these opportunities Kenya is faced with serious challenges which threaten Kenya’s development aspirations. Among these challenges are security problems 5 in neighbouring countries and in the Kenyan North-Eastern border areas. In addition comes a polarised political climate along ethnic fault lines, inequality and widespread poverty, serious quality issues linked to provision of social sector services, impunity for serious crimes, weak and unguaranteed security due to common criminality and pervasive corruption; all these challenges undermine achievement of Kenya’s development goals. To spur higher and sustained inclusive economic growth, Kenya needs to address these issues as well as severe infrastructure deficiencies, ensure a more business friendly environment for foreign investment, address climate change challenges and ensure a higher performance in the social sectors, particularly health and education. The objectives for Denmark’s future engagement will be to support inclusive green growth and poverty reduction, support the democratic reform process and promote human rights. It will also be an objective in its own right to strengthen trade and commercial relations between Kenya and Denmark as-well-as the objective of stability and security in Kenya and the wider region. This paper presents the Danish Governments view on the current and emerging challenges in Kenya, as-well-as objectives and strategic focus areas for future engagement. iii.Promoting regional cooperation and stability. The overall vision for the partnership is to support the Kenyan government and the people of Kenya to implement Kenyans own Vision 2030 to create “a globally competitive and prosperous country with a high quality of life by 2030”. 6 Three strategic focus areas have been identified for effectively pursuing the objectives: i.Implementing the constitution towards a prosperous and equitable Kenya ii.Inclusive green growth and employment The instruments for engaging in three strategic focus areas will be broad-based and rely on a focused and efficient development cooperation, humanitarian assistance, close cooperation between public authorities together with an open and honest policy dialogue, strengthened commercial ties and security cooperation for the benefit of both countries and the region. The partnership will involve key stakeholders in both countries, including public sector, private sector, civil society and the academia. In the area of development cooperation Danish assistance will increasingly play a catalytic role in promoting needed change and progress within key areas while leveraging synergies and other public and private support. Gradually, trade and investments are expected to evolve as the most important area of economic cooperation between Kenya and Denmark. Consequently, Denmark shall continue to support market entry for Danish companies in Kenya with increased trade and investments as result. The utilisation of instruments like the Danish Investment Fund for Development Countries (IFU) and the Export Credit Fund (EKF) and the presence of the Danish Trade Council together with a close cooperation between public authorities in particular within climate, energy, environment food and agriculture constitute the enabling environment for the economic cooperation between the two countries. 2 NATIONAL CONTEXT – CHALLENGES AND OPPORTUNITIES IN KENYA KENYA IN AFRICA – REGIONAL INTEGRATION AND REGIONAL STABILITY Kenya is a significant actor on the Horn of Africa and its geographical location provides many opportunities. Kenya is a regional commercial hub and an important partner for increased regional integration through the East African Community (EAC) which has the potential to create a larger and more attractive market for regional and international investors. Ensuring regional stability continues to be a significant challenge for the region and Kenya’s development. Piracy off the coast of Somalia is decreasing, but remains a concern and will continue to need close attention in the coming years. Kenya is an active partner in promoting peace and stability on the Horn of Africa providing troops into Somalia, judicial mechanisms on piracy and hosting more than half a million refugees from Somalia, Sudan, Ethiopia and the Great Lakes region. The situation in the region will remain volatile in a foreseeable future, and Kenya’s challenge is to continue to be a stabilizing factor in the region while also addressing issues of radicalisation and potential conflicts at home. To work towards a regional collective response to both internal and external threats, Kenya hosts the Eastern Africa Standby Force Coordination Mechanism (EASFCOM) that performs as the planning element of the Eastern Africa Standby Force (EASF). POVERTY AND INEQUALITY – HIGH GROWTH, BUT NOT FOR ALL… Kenya has maintained a stable macroeconomic environment and has, at the same time, been developing key infrastructure facilities and public works nationwide to stimulate growth. Its economic growth however is below potential. In September 2014 the Government of Kenya published new GDP growth data where Kenya’s economy is estimated to be 25 % higher than previously expected. The GDP rate is based on a new calculation model with baseline data from 2009 whereas the old figures where based on data form 2001. With an economy of USD 53,1 billion Kenya is placed as the 9th biggest economy in Africa and 4th biggest economy on the sub-Saharan continent after Nigeria, South Africa and Angola. The economic growth rate from 2013 is thus upgraded from 4,7 % to 5,7 %. With the new data the 2013 GDP per capita is estimated to be USD 1,246. By the next World Bank global statistic update in July 2015 this could place Kenya among the lower-middle-income countries. The economic growth rate in Kenya is however still not at the level of Kenya’s East African neighbours. The agricultural sector continues to be the largest contributor to GDP at 29.9 %, followed by the industrial sector at 17.4 % in 2012. The most important export earners are tourism, horticulture and tea. Kenya’s tax revenue to GDP ratio stands at 20 %, which compared with its neighbouring countries, places Kenyans as amongst the highest taxed in the region. Tax revenue is mainly generated from income tax, with an over 20 % contribution on average. Value added tax (VAT) is secondary at approx. 9 %. Other sources of tax revenue include excise, customs and import taxes. However, rising demands on the wage bill, costs arising from implementing devolution and fulfilment of the Government Jubilee Coalition election promises (e.g. laptop project for school children and free maternal healthcare) are expected to exert additional expenditure pressures. This demand is likely to crowd out reform financing. With regard to tax evasion and illicit flow of funds, the government in December 2009 passed ‘The proceeds of Crime and Anti-money Laundering Act’. However, the Act is yet to be fully operationalized. Even though Kenya has experienced significant economic growth the inequality has not decreased and poverty reduction remains the biggest challenge for Kenya. There is currently no updated data on the poverty rate for Kenya but according to the World Bank the rate of extremely poor has dropped from 47 % in 2005/6 to 39 % in 2012/13. To eradicate the extreme poverty by 2030 would imply a deduction of 2 % of the poverty rate per year. This development would require the economic growth rate to double and inequality to halve. Poverty levels are much higher in the Northern dry areas marked by marginalisation, lower level of education and high population growth rates. 7 The coastal region of Kenya is the most challenged in regards to inequality. With its high levels of inequality, Kenya remains the most unequal in the East African Community. This entails marginalisation and fundamental challenges in regards to equal access to social services of good quality such as clean water and sanitation, access to health care and education. In addition the maternal mortality in Kenya is amongst the highest in Africa with 488 mother deaths per 100,000 births. In the marginalised North-Eastern areas the rate is above 1,000 mother deaths per 100,000 pregnancies. JOB CREATION IS ESSENTIAL IN HANDLING DEMOGRAPHIC DEVELOPMENTS The population of 43 million is expected to reach 80 million in 2050. Population mobility has led to unmanaged urbanization. Almost half the population in Kenya now live in cities, which has resulted in large informal settlements and pressure on social systems and access to land. Kenya has made good progress on some Millennium Development Goals particularly regarding access to primary education and underfive mortality. Nevertheless, eradication of poverty, gender equity and maternal mortality, have not progressed as desired. 8 From a growth perspective the youth unemployment rate of above 40 % is a lost opportunity. The cohesion in Kenya will in the coming years depend on how well the youth is included in the economic growth. On the positive side there is a huge demographic potential whereby some 26 million Kenyans – more than half the population- are currently under the age of 25, and this ratio will rise to almost two-thirds by 2030. If these citizens are equipped with the skills and competencies for a changing marketplace and can secure gainful work, they will provide a huge boost to productivity and output in Kenya. But if too many of them are left unemployed and with no opportunities then, there is a risk of social capital being undermined by crime and delinquency. Each year it is estimated that around 800.000 people enter the job market in Kenya and only 6 % are able to find a job in the formal sector. The growing youth population combined with high levels of inequality across the country and the persistence of continued exclusion of young adults from the labour market risk leading to increased crime and insecurity. The impact of these socioeconomic and demographic developments can have a cumulating and negative effect on Kenya’s conflict propensity over the coming years. That is also why it is so important for the private sector to create jobs and for young people to get relevant education. Job creation is essential in order to sustain economic, social and political stability. GOOD OPPORTUNITIES FOR ECONOMIC GROWTH – AND SERIOUS OBSTACLES Kenya has a growing middle class of an estimated 5 million citizens, a large well-educated young population and a vibrant business sector mainly comprised of micro, small and medium-sized enterprises. These are important elements to push growth upwards. Adding to this, the discovery of significant oil resources in Kenya has the potential, if managed properly, to eliminate the current account deficit. The World Bank Doing Business Report ranked Kenya as 129th in 2013 out of 185 Countries. Weaknesses in infrastructure and pervasive corruption are barriers for business sector development and are also hindrances for access to services, job creation and foreign direct investments. Furthermore, whereas the financial and ICT sectors are doing well, the agricultural, manufacturing and transport sectors, which are drivers of employment and export led growth, are underperforming thus contributing to a large current account deficit. Kenya is placed as 136 out of 175 countries in the Transparency International’s Corruption Perception Index 2013 and scores 27 on a scale of 0 – 100 where 100 is zero corruption. DEMOCRACY, STABILITY AND POLARISED POLITICAL SITUATION Kenya has traditionally had a strong centralised government structure. Multiparty elections were introduced in 1992. Elections in 1992, 1997 and 2007 were marred by intercommunity violence along ethnic fault lines related to a continued polarised political situation. The contested results of the 2007 general elections brought the country to the brink of civil war, illustrating Kenya’s economic and political fragility. The subsequent cases at the International Criminal Court concerning alleged involvement and responsibility in the post-election violence have divided the country along the same polarised political lines that dominated the 2013 elections. After abandonment of most of the ICC cases there is a discussion in Kenya about reconciliation and justice for the victims of the 2007 post-election violence. It has been considered to establish a tribunal with this purpose. A Government-led process of cohesion and integration with complementary non-governmental initiatives by civil society organisations and faith based organizations has been on-going. The results of this process partly contributed to the relative stability of the 2013 elections. However, the disputed results of the presidential elections resolved by the newly created Supreme Court brought about a polarised National Assembly and political stalemate. The role and engagement of both the government and the opposition will be vital for reducing political polarisation, uniting the country, preventing ethnic conflicts and protecting Kenyan citizens from atrocities. THE GOVERNMENT OF KENYA’S PLAN FOR REACHING MIDDLE INCOME STATUS BY 2030 A government, headed by President Uhuru Kenyatta and Deputy President William Ruto took office in April 2013. The Government has in October 2013 presented its 5 year Medium Term Plan 2013-2017 (MTP II) that is the second of consecutive MTPs aimed at leading to implementation of Kenya Vision 2030 launched in 2008 as a national long-term development blue-print It is by development partners considered equivalent to a poverty reduction strategy paper. The Vision 2030 aims to transform Kenya into a newly industrializing, upper-middle-income country (GNI of USD 4,700 per capita) providing a high quality of life to all its citizens by 2030 in a clean and secure environment. It emphasizes implementing devolution, national cohesion & unity; and accelerating economic growth. It is structured along three pillars – economic, social and political – which enlist key sectors and priorities that include amongst others: infrastructure development, enhanced electricity generation including the development of new and renewable sources of energy e.g. use of solar, wind and biogas; Information and Communications Technology; land reforms and public sector reforms. The MTP II is to be implemented at both national and county government levels. County governments are expected to align their respective County Integrated Development Plans to the MTP II; while national government will be expected to develop strategic plans to implement key priorities. GOVERNANCE REFORMS The new Constitution promulgated in 2010 seeks to address inequalities and bring decisions closer to the citizens. It has the potential to change the political, social and economic landscape in the coming decades. The Constitution promises equal rights for all Kenyans and promises improved delivery of services such as health care, housing, water and a clean environment. The Constitution holds the government accountable to the people on leadership and integrity, gender and regional balance, access to information and access to justice. With a comprehensive Bill of Rights with articles on political, economic, and social rights the Kenyan people have an ambitious legal foundation to, as rights holders, make the authorities accountable as duty bearers. The Constitution introduces with effect from 2013 decentralised and devolved governance in Kenya both politically and administratively. The transition is historic 9 and few countries has attempted something on this scale with shift of powers and 30 per cent of government revenues moving from national government to the 47 new county governments. The county governments are responsible for county legislation, executive functions and functions transferred from national government such as agriculture, health, pre-primary education, county public works including maintenance and construction of roads. The devolved structures shall decentralise and possibly enhance service delivery while at the same time institutionalise public participation in planning and decision-making processes. The process has the potential to bring the power and decisions closer to the people and thus to a greater extent enable right bearers to hold duty bearers to account and ensure that resources will be used to address the actual needs on the ground. If properly implemented and managed, the devolved system can become a strong vehicle for addressing the challenges of inequality and poverty and enhancing national cohesion and bring democratic decision making closer to the grassroots. Conflicts of interest between the national and the county governments have clearly indicated that implementation will take time. Given the magnitude of the structural reforms, the transition to a devolved system is expected to be cumbersome, lengthy and challenging. The transition process itself will thus also require safeguarding and support including in capacity building. 10 HUMAN RIGHTS AND RULE OF LAW The implementation of the Constitution has led to a large amount of structural, legal and institutional reforms needed to be implemented by 2015. The judiciary is undergoing progressive reforms including vetting of judges to re-establish the credibility of the legal system and improve the access to justice for the ordinary Kenyan. Impunity at all level of government is a serious problem and a report from May 2013 by the Truth, Justice and Reconciliation Commission which recommends prosecution of several hundred senior government officials and politicians has not been followed up. Human rights violations continue to be a challenge as documented in Kenya’s most recent Universal Periodic Review (UPR) from September 2010. The most serious issues related to the state is abuses by the security forces, including unlawful killings, torture, rape, and use of excessive force, arbitrary arrest and detention and police corruption. The government has only taken limited action against security forces suspected of unlawful killings and the long awaited police reform is yet to materialize. Kenya is also facing very severe problems with common criminality and terrorism. GENDER EQUALITY – IMPRESSIVE LEGISLATIVE PROGRESS – CHALLENGE NOW ON IMPLEMENTATION The Constitution’s provisions on gender equity are amongst the most advanced by international standards, and represent a huge normative leap forward for Kenya. Despite significant progress, women are still marginalized in political, social and economic life. Women’s employment in the formal sector is far less than that of men, and women’s representation in the national parliament is only around 20 %. Cultural traditions and practices in many communities remain a hindrance for women’s access to land, employment and women’s right to self-determination. It is important to follow up with support to full implementation of women’s rights as enshrined in the Constitution and work for cultural acceptance of the opportunities it provides to achieve progress and results in these areas. Women represent a lot of potential for trade and growth in Kenya. They make a major contribution to trade, often in the informal sector, and if properly empowered, can be essential for job creation and poverty reduction. HEALTH SECTOR The access to quality health care is very limited for the around 40 % of the Kenyan population who lives below the poverty line. Kenya’s health policy has mainly focused on communicable disease and the double burden of disease including HIV/AIDs, further strains an overburdened health care system. Cultural practices, poverty levels and position of women in society make effective sexual reproduction initiatives difficult to achieve both in management of population growth and appreciation of individual’s sexual reproductive health rights. Kenya continues to score very poorly on indicators like maternal health as the majority of pregnant women cannot access skilled delivery or maternal health services. Kenya will not attain MDG 5 on improving maternal health but is likely to meet with a narrow margin MDG 4 on reducing child mortality. Factors contributing to poor health indicators include inadequate overall health financing, insufficient health services infrastructure, a shortage of human resources for health services and essential medical supplies including medicine, and limited administrative and managerial capacity – all of which restricts health service delivery and coverage. The new Constitution has provided an opportunity to address most of the above issues by enshrining the right to the highest attainable standard of health to every Kenyan. This places fundamental duty on the State to take legislative, policy and other measures, including the setting of standards, to achieve progressive realization of the rights including the right to health. In the area of sexual and reproductive health and rights the Constitution includes a right to safe abortion. The definition of safe abortion remains a contentious issue and almost derailed the constitutional formulating process. The Constitution assigns the County Governments the responsibility for delivering essential health services functions, while the National Government has the function of stewardship for health policy and oversight of national referral health facilities. In the short to medium term, intensive investment in strengthening health delivery systems along with capacity building at the county level will be key to ensuring health services delivery as the country goes through the devolution transition process. NATURAL RESOURCES MANAGEMENT AND TRANSITION TOWARDS GREEN ECONOMY Kenya has in the last couple of years encountered an unprecedented challenge from climate change impacts and corresponding socio-economic losses. This stems from heavy reliance on climate sensitive economic sectors coupled with the absence of adequate preparedness and mitigation strategies. The Kenyan economy relies heavily on natural resources to support people’s livelihoods and to generate national income. Roughly 42 % of the national income is derived from the natural resource sectors (agriculture, mining, forestry, fishing, water supply and energy – tourism closely related to Kenya’s nature and wildlife also falls within the earning figure related to this area). With a land area of about 583,000 Km2, less than 15 % of Kenya’s land is arable, and supports about 80 % of the population; the rest of the land is made up of fragile arid and semi-arid ecosystems, and land-use is largely pastoral. The majority of the population live in rural areas and rely predominantly on an ever-degrading environment and scarce natural resources for their livelihoods. This explains why scarce resources often underlie inter-communal conflicts in most parts of the country. Unsustainable traditional policies and exploitation of water and other natural resources are with an increasing impact from climate change underlying factors for this negative development. Further, linkages between development and natural resources in the Kenyan context are profound. As demonstrated by the country’s energy model, the bulk of energy is derived from hydro-power, which in turn depends on rivers emanating from the main water towers whose ecosystem services highly depend on proper land use management and protection of forests. Yet, water and energy are crucial inputs into the country’s economic processes and the attainment of the country’s Vision 2030. 11 EXTERNAL ASSISTANCE TO KENYA – MANY DIFFERENT PARTNERS AND NEED TO STRENGTHEN AID EFFECTIVENESS Kenya is less dependent on donor assistance compared to neighbouring countries. The current level of external support is around 10 % of the annual budget, but constitute up to half of the development budget in some sectors like health. A large number of development partners are active in Kenya, which makes coordination, harmonization and development effectiveness very important. A considerable part of development assistance is implemented outside of government systems. The reasons for this are many, but lack of accountability and the high level of perceived corruption in the public sector are often singled out. Denmark will continue to give high priority to building national capacity and strengthening national systems. Denmark is the 6th largest bilateral donor in Kenya1 and is supporting public financial management to improve transparent and efficient spending of Kenyan revenues as well as funds from development partners. Denmark will with due concern to financial risks, when possible play a catalytic role for use of government systems. Development partners including the EU are now regarding the Vision 2030 with the MTP II 2013-17 and the Medium Term Expenditure Framework as the joint strategy for development partner’s alignment and coordination efforts. Joint EU programming has been initiated. South Korea and Turkey joined the Development Partners Group recently. India has been engaged in Kenya since before independence – also with development activities. China is becoming an increasingly important actor in Africa and Kenya. This changes the context for development cooperation and implies loans that needs to be repaid and development projects with less guaranties for environment, human rights and companies social responsibilities. 1The top ten donors of gross ODA (2010-11 average, USD m) US 642, IDA 244, IMF 159, Japan 139, AfDB 134, UK 131, Germany 129, France 128, EU 113, Denmark 71. 12 3 FROM ANALYSIS AND PAST DANISH EXPERIENCE TO STRATEGIC CHOICES Kenya is facing serious problems with inequality, poverty, environmental degradation and instability in the region. The country still has a need for economic assistance. Kenya has the potential to realise the high economic growth figures that can make Vision 2030’ ambitious goals a reality. This will require not only economic growth but also development in the areas of security, business climate, employment, democracy, human rights, inequality, including equality between genders. Denmark’s engagement will address these challenges and opportunities within three strategic focus areas and will draw on all relevant instruments including development engagement, cultural relations, diplomacy & political dialogue, close cooperation between the public authorities, people to people initiatives, continued advice and support to trade and investments and security cooperation. In addition to the bilateral Danish engagement with Kenya, Denmark will engage actively at headquarters and local level in international fora, the UN, development banks and the EU. The 2010 constitution with devolved governance structure sets the new framework of operations in Kenya. It defines the transition to a new governance structure and encourages reforms to enhance rule of law and citizen participation. With the long experience in the Kenyan governance sector with support to both civil society and capacity building in the public sector Denmark is well placed to support this vital transition process and people’s participation at central and county governance level. Similarly after 40 years of involvement in the health sector Denmark has contributed significantly to good results in establishment of national health systems and capacity building at all levels both in public health care and public financial management as well as promotion of sexual and reproductive health and rights. Denmark is therefore in a good position to play a catalyst role in making the new devolved system work in this important area. Denmark is supporting Kenya’s aspirations for transition to a green growth economy. Denmark has provided support where the private sector has been promoted as the vehicle for economic growth while the public sector establishes a conducive environment for this sector. On-going support to small scale agri-business farmers through greening of the value chain has demonstrated the value of promoting green growth as a means of achieving higher and improved yields with less resource inputs. Denmark is also supporting research in i.a. agriculture. As such her historical presence and core competences places Denmark in a pivotal position to be a driving force in the green economy and natural resource sector in Kenya by promoting sustainable and inclusive economic development, while addressing climate and environmental challenges. Under the new country programme for development cooperation, the two existing sector programmes on Natural Resource Management and the Business Sector Programme are envisioned to be merged into one Green Growth Programme that will promote synergies to commercial activities while still giving priority to poverty reduction and environmental adaptation in some of Kenya’s poorest areas. Kenya’s economic growth has led to an increasing interest from Danish companies but from a low starting point. Kenyan demand for solutions in the areas of water supply, renewable energy, infrastructure, health, pharmaceuticals and agribusiness corresponds to what Danish companies can deliver. Danish solutions can obviously help Kenya to counter many of the development challenges the country is currently facing, while at the same time benefit Danish companies. This entails more than exporting goods and services. Economic diplomacy and heavy investments from the Danish companies are needed in order to secure market access in Kenya and to provide the solutions. These investments need to be accompanied by relevant financial instruments and advisory services. Denmark is an active donor in Trade Mark East Africa which headquarters is based in Nairobi. TMEA has national offices in all EAC countries and works closely with EAC to solve non trade barriers for expanded 13 regional trade. The cooperation with EAC and TMEA is especially addressing regional infrastructure problems such as inadequate ports, roads and rail capacity and border-issues that constitute bottleneck obstacles for trade and economic growth in the region. Denmark is working with Kenya and the UN in support to people affected by natural and man-made humanitarian disasters. Denmark is a close partner with Kenya in international rule setting as well as dealing with concrete piracy issues and has in recent year’s strengthened cooperation with Kenya in the area of defence including a MoU on cooperation. In addition, Denmark is through a regional stability programme contributing to AMISOM that provides a platform for continued engagement with Kenya in regional stability activities. 14 4 STRATEGIC FOCUS AREAS & SUGGESTED AREAS OF INTERVENTION OBJECTIVES, INSTRUMENTS2 AND THE THREE STRATEGIC FOCUS AREAS: Objectives •Implementation of rights based governance reforms • Respect for human rights • Inclusive green economic growth and poverty reduction • Strengthen trade- and business relations • Stability and security instruments Strategic focus areas Diplomacy and dialogue Development cooperation including business instruments Trade and commercial cooperation Cultural cooperation Security cooperation • Implementing the constitution towards a prosperous and equitable Kenya • Inclusive green growth and employment • Regional cooperation and stability 2Cultural cooperation refers to 2013 framework agreement between the Danish MFA and the Danish Centre for Culture and Development (CKU), while culture being a relatively small activity in Kenya the figure illustrates that all Danish Government related activities will seek to engage within the three strategic focus areas. 15 STRATEGIC FOCUS AREA 1 IMPLEMENTING THE CONSTITUTION TOWARDS A PROSPEROUS AND EQUITABLE KENYA The Constitution and related reforms lays out an ambitious foundation for a human rights based approach not only in supporting respect for the political rights but also in addressing the challenges and root causes for lack of development that Kenya is facing. A focus on national authorities as duty bearers and citizens as rights holders is therefore in accordance with the Government of Kenya’s own priorities. The on-going progressive judiciary reforms are essential elements of improving the duty bearer’s adherence to the rule of law, potentially putting an end to impunity and ensuring victims’ right to justice. Similarly, a credible and trustworthy legal system is essential for the efforts of fighting corruption. Implementation of the devolved structures will require a massive effort. It will necessitate a general public sector reform, restructuring central ministries, creation of a devolved structure as well as transfer of civil servants from ministries to counties. Whereas the reforms represent a great opportunity for Kenya, it will most likely take 10-20 years to effectively implement. External support can play a catalytic role in support of this transition in a number of areas such as policy development, institutional strengthening, public financial management as well as 16 capacity building of public authorities at both national and county levels. Denmark will continue to work also with civil society organisations including social actors and support rights holders in work for human rights, gender equality and participation in decision making. Further, opportunities will be explored how to increase people to people engagement and understanding by e.g. scholarships and volunteer work. In the health sector, maternal health and sexual and reproductive health and rights is a high priority for the Danish engagement. This can create a synergyeffect to political and economic empowerment of women. Strengthening devolved governance at the central and decentralised level will enhance the institutional capacity for counties to deliver on the devolved functions and hence provision of strengthened health services. It is important that devolution results in real change for Kenyans through equal opportunities and access to resources as well as improved service delivery. Specifically, citizen’s rights to the highest attainable standards of health, including reproductive health and emergency treatment, will require attention since this is an area where Kenya has not delivered according to the MDGs. Improved health is also important for enabling the poor population to make use of the window that has been opened for participation in decisions concerning their livelihood. Through a long-term engagement in the health sector in Kenya Denmark has a strong comparative advantage in this sector. Health will continue to be a strong area of focus in the partnership taking further the already introduced human rights based approach including a focus on sexual and reproductive health and rights and the need for improving quality in health services. Furthermore, access to energy and water and improved natural resource management are crucial for growth and a critical factor for improving livelihoods. Denmark will engage with the Government of Kenya and civil society to support national follow up on recommendations from Kenya’s Universal Periodic Reviews. The increased collaboration between the Danish and the Kenyan defence is an opportunity to engage in a human rights based dialogue with the security arm of government including CSR issues and implementation of UN Security Council Resolution 1325 on women and peace and security. AREAS OF INTERVENTION • Support national and county organs as duty bearers in meeting their obligations towards its citizens. • Political dialogue, people to people initiatives and cooperation between public authorities. • Support Kenya’s implementation of recommendations from UPR. • Support citizens and civil society organisations as rights holders in claiming their rights – including gender equality. • Promote public participation, oversight mechanisms and transparent decision making. • Promote rule of law and fight corruption and impunity. • Support effective delivery of quality health services and improve natural resource management at county level. 17 STRATEGIC FOCUS AREA 2 INCLUSIVE GREEN GROWTH AND EMPLOYMENT The potential for a poverty-reducing economic growth is anchored in an active business society and a population educated and qualified to meet the requirements from the private and public sector. It is also important to support improvement of framework conditions including addressing inequalities and lack of possibilities for marginalised parts of the population. While the Danish support to Kenya is increasingly oriented towards private sector development it is becoming pertinent to promote improved labour conditions and working environment i.e. in cooperation with civil society organisations. The Government of Kenya has shown commitment to promoting a green economy and a low carbon development path based on renewable energy sources and sustainable solutions. It will require strong political commitment to design an enabling framework that decouples economic growth from environmental degradation. Promoting climate adaptation measures necessitates innovative incentives for sustainable and environmentally sound solutions. The natural resource sector can contribute to the economic growth of the country, by promoting sustainable and greener growth. But pursuing a green growth and low carbon development path is a country 18 commitment, not just an isolated environmental bracket in the bigger picture. The transition to a green economy can by itself propel a new wave of economic growth, enabled by private sector commitment and investment in innovation of green technologies and promotion of resource efficiency and job creation. An ambitious national climate change strategy and action plan (2013-2017) has been developed and its implementation is expected to reduce the long-term costs of climate change through mitigation and adaptation measures. This initiative will require external financing, but will also create opportunities for innovation and promotion of climate friendly and green technologies and sustainable consumption and production patterns. Denmark will promote green growth in Kenya by actively encouraging and assisting authorities and social actors in developing the necessary policy framework for sustainable economic growth benefitting the entire population. Denmark will support the whole value chain and involvement of women and job creation, for example women can be empowered and play an important role in enhancing green growth as producers of agricultural products. Development assistance will support this through a focus on developing economic and legislative incentive structures and support a business-friendly environment, while promoting sustainable management of the country’s natural resources. Danish companies can provide clean tech know-how and cost-efficient and resource efficient innovative solutions to support the transition towards a green economy. As Kenya is an active partner in the Danish initiative Global Forum for Green Growth (3GF) the cooperation will be further enhanced in this field bringing the Kenyan government, the Danish and Kenyan public authorities, the private sector, the civil society and academia together in new partnerships. An important area in the relations between Denmark and Kenya will be to make use of commercial business opportunities and strengthen trade relations. This will include promotion of commercial relations and utilization of development and financial instruments like the Danish Investment Fund for Development Countries (IFU) and the Export Credit Fund (EKF). In addition the concrete knowledge about the Kenyan market and the assistance to Danish companies provided by the Trade Council will facilitate access to trade and investment partners and public sector participation. Cultural cooperation will also be able to contribute to business development and employment. AREAS OF INTERVENTION • Support an enabling environment for green economic growth sustainable private sector development and public private-partnerships. • Economic diplomacy and cooperation between public authorities. • Enhance promotion of mutual commercial cooperation by highlighting market and investment opportunities. • Promote and support development of green value chains in agribusiness and industrial sectors. • Promote and support renewable energy, resource efficiency and climate friendly technologies. • Support employment for youth and women through business development and investments. • Support inter-sectoral pro-poor planning, budgeting and improvement of framework conditions at national and county level. 19 STRATEGIC FOCUS AREA 3 PROMOTING REGIONAL COOPERATION AND STABILITY As a regional gateway and an economic powerhouse, Kenya plays an important and active role in the Horn of Africa and beyond. Denmark will use its close diplomatic relations with Kenya to encourage the Government to continue its role in promoting integration, economic cooperation, peace and stability in the region. Denmark will combine the dialogue on concrete cooperation with Kenya – including on humanitarian assistance to people affected by regional conflicts and a closer cooperation between Danish and local public authorities. Denmark will continue to support Kenya’s role as a regional stabilizing factor including the countering of severe security challenges on Kenya´s borders and beyond, and in particular in Somalia. Hence, Denmark continuously aim to assist multilateral organisations and efforts such as the African Union Mission in Somalia (AMISOM) and the continued build-up of rapid deployment capacities within the framework of the East African Stand-by Force (EASF). 20 The multilateral support will be synchronized with the increased KenyanDanish bilateral cooperation on programmes within e.g. counter-piracy, anti-radicalization and counter-terrorism, including efforts to prevent atrocities (Responsibility to Protect, R2P). The activities will be executed by Danish actors and their Kenyan counterparts. The programs will adhere to demands of sustainability and promotion of international law and standards. The bilateral security cooperation program will include, however not necessarily be limited to navy and coast guard cooperation and military education. Specifically, the maritime cooperation will aim at promoting national, interagency cooperation within the maritime domain, including cooperation on maritime safety. The bilateral security cooperation with Kenya will be supplemented by a coordinated cooperation with other East African and international partners. Denmark will support Kenyan participation in the regional economic cooperation including support to reducing non trade barriers to increased economic integration. To deliver on its commitment on green growth, environmental sustainability and climate change, Denmark will continue its collaboration with the United Nations Environment Programme (UNEP) which is headquartered in Nairobi. These efforts will be further supplemented by encouraging Kenya’s leading African role and participation in the Global Green Growth Forum (3GF). AREAS OF INTERVENTION • Deepen the collaboration between Denmark and Kenya on stabilizing the Horn of Africa, with special focus on Somalia. • Contribute to combat piracy and support Kenya’s efforts in this respect. • Support building of regional responses to security challenges such as the EASF. • Support Kenya’s efforts to address the refugee challenges. • Collaborate on global challenges such as climate change, counter terrorism, Global Green Growth (3GF) etc. • Support Kenya’s role and integration into the common market of EAC. 21 5 RESULTS, MONITORING AND EVALUATIONS FRAMEWORK Denmark’s partnership with Kenya will focus on ensuring long-term impact. Relevant development indicators from MTP II are highlighted in annex 2. The partnership will contribute to: 1.Strengthened position of rights holders and duty bearer and improved institutions for furthering democratic reforms and human rights 2.Reduced number of people living in extreme poverty 3.Progress in transition towards a green economy in Kenya 4.Increased business and direct investment cooperation between Denmark and Kenya 5.Increased stability and peace in Kenya and on the Horn of Africa. Based on the MTP II and the national monitoring systems Denmark will assist in developing baseline data in the areas of special importance for measuring results of the Danish engagement. The monitoring and evaluation framework for the country programme will be based on a Theory of Change analysis outlining the transformation of the development engagements; the different types and levels of results it is expected to create; 22 and a narrative explaining and underpinning the model, especially with regards to how the results are expected to lead to the certain changes. The majority of the monitoring of the country programme will be an integrated part of the (development cooperation) country programme. In addition the Kenya country programme will be a pilot exercise for Danida to use external Real Time Evaluation, where the results of the evaluations can be strategically used during implementation. The monitoring and evaluation framework will, to the extent possible, rely on the Kenyan country systems for tracking and reporting results on development cooperation. Denmark will use the National Integrated Monitoring & Evaluation System (NIMES) for the Kenyan Governments Medium Term Plan II 2013-2017 and the related Medium Term Expenditure Framework. Since available data on NIMES is often outdated, Denmark will also use supplementary data sources, for example World Bank and programme/ project specific reports. Denmark will have a particular focus on supporting the gathering of baseline data to better guide development planning and measure impact. This will be a specific area of attention for Denmark’s involvement in the Aid Effectiveness Group. ANNEX 1 RISK ASSESSMENT The Danish engagement in Kenya involves contextual, institutional and programmatic risks. Denmark has through 50 years engagement in Kenya been able to engage in a flexible manner to take into account different types of risks. The Danish engagement will continue to be designed in a robust manner to mitigate substantial risks. Contextual Risks Increased polarised political situation worsen latent conflicts – Kenya is politically divided along ethnic lines. Ethnic tensions from national to village level may risk making the security situation volatile, and include serious human rights violations, as witnessed in the post-election violence in 2007/2008. To mitigate this risk Denmark supports inter-ethnic and inter-religious dialogues, as-well-as devolution as a cross cutting issue, and projects in some of the most conflict-ridden areas to mitigate the risk of violence. Addressing the root causes to these conflicts, in many cases through support to poverty-reduction, human rights and sustainable natural resource management, is a main objective of Danida’s engagement in Kenya. Terror threat against Kenya and partners as well as serious problems with violent criminality The high level of crime as well as the increasing threat of terrorism in Kenya may pose an obstacle for attracting foreign investment and getting foreign businesses to engage in Kenya. Denmark seeks to support a more secure environment by supporting the AMISOM peace operations in Somalia and engaging the Kenyan national security forces on rule of law, human rights and the legal system. Denmark also supports making Kenyan businesses more resilient. Development engagement in areas of soft security such as anti-radicalisation and conflict mitigation will have increased priority in the new country programme. Limited political will to implement the Constitutions and reforms The new devolved governance structure brings an inherent risk of prolonged and challenging transitions for the county governments. To mitigate the risk of limited political will to implement the Constitution, Denmark will apply a multifaceted approach working with the national and the county governments as well as the business sector and the civil society. Denmark will support actors promoting the reform agenda to facilitate an effective transition and build sustainable governance structures. The country programming will design the development programme in a robust manner that both supports the transition to devolution and at the same time takes into account the risk of lack of political will. Political space Many civil society and media representatives are expressing concerns of their political space and some human rights defenders express concerns for their safety. To mitigate a retraction on respect for human rights, Denmark will support the judiciary reform process and the different actors in the legal system both duty bearers and right holders. Denmark will continue the dialogue on promotion of and respect for human rights with the Kenyan government, both at central and county level. An emphasis will be placed on promoting national processes of justice, gender rights, anti-corruption and anti-impunity at the national as-well-as county level. 23 Non-collaboration with the International Criminal Court A proposed bill in the Kenyan Parliament calls for Kenya to withdraw from the Rome Statute which questions Kenya’s support to international justice. Denmark will seek to encourage the government of Kenya to collaborate and support processes of justice. INSTITUTIONAL RISKS Lack of capacity at county level leads to set back in service delivery and natural resource management The decentralization of certain service deliveries to the county government raise the question as to whether or not these devolved governments are capable of keeping the level of service delivery as prior delivered by the national government system. To address this concern, Denmark will work with the county institutions to support their capacity as well as with the national government to ensure appropriate measures are established to provide the county governments with the necessary assistance in the transition period. Denmark is already engaged in Public Financial Management in specific sectors building capacity for this purpose. 24 PROGRAMMATIC RISKS Large scale corruption in public sector and corruption against Danish supported activities A comprehensive reform of the public sector in terms of public finance management and control is still pending, creating risks of large scale corruption. The newly revamped Ethics and Anticorruption Commission is actively investigating several high profile corruption cases. Denmark will support efforts to combat corruption and strengthening public financial management. Denmark will design its development programme in a robust manner using country systems to the extent possible while continuing to apply a strict zero tolerance to corruption. ANNEX 2 INDICATORS FROM KENYA’S SECOND MEDIUM TERM PLAN 2013 – 2017 TRANSFORMING KENYA: PATHWAY TO DEVOLUTION, SOCIO-ECONOMIC DEVELOPMENT, EQUITY AND NATIONAL UNITY MTP Implementation framework – As relevant to the strategic focus areas in the Danish-Kenyan policy paper. PUBLIC SECTOR REFORMS Goal To transform the public service for accountability and provision of efficient and quality services to citizens Strategic Objectives Enhance quality and efficiency of Public Service Delivery; improve Performance Management; strengthen management systems and processes in Government; enhance the capability of public service leadership and management; transform the culture and attitude of public service DEVOLUTION Goal Establish 47 functional county governments Strategic Objectives Strategic collaboration between national and county governments and between counties GOVERNANCE AND RULE OF LAW Goal Efficiently and expeditiously delivery of justice Strategic Objectives Enact and operationalize policies and legal framework towards national cohesion and integration, establish a comprehensive framework for human rights, undertake various legal reforms including development, review and implementation of all legislations relating to reforms in governance, judiciary and rule of law MICRO AND SMALL ENTERPRISE DEVELOPMENT Goal To promote growth and development of MSE Strategic Objectives Enhance capacity of MSEs to create employment and reduce poverty among Kenyans ENVIRONMENT Goal Promote and safeguard the state of environment for economic growth Strategic Objectives Improve environmental planning and governance 25 HEALTH Goal Reduce maternal neonatal and child health, morbidity and morality Strategic Objectives Country wide scale up of community health high impact interventions at level 1 health centers HEALTH Goal Improve access to referral systems Strategic Objectives Guide and support the establishment of efficient vertical and horizontal country-wide comprehensive referral system with national, intra and inter-county health service HEALTH Goal Comprehensive coverage to health services by the economically disadvantaged Strategic Objectives Consolidate and expand social health subsidy mechanisms to contribute towards achieving universal health care GENDER, YOUTH AND VULNERABLE GROUPS Goal Improve livelihoods of all Women, Youth and Vulnerable Groups Strategic Objectives Empower all women, youth and vulnerable groups to enhance their capacity and opportunities 26 ANNEX 3 KEY ECONOMIC AND SOCIAL DATA ECONOMIC DATA UNIT Area (2012) Km2 Population (2013) SOURCE 569.140 WDI Million 42.749 HDI GDP (2012) Million USD 40.697 WDI Annual economic growth (2013) % in GDP 4.7 WDI GNI per capita (2012) USD 860 WDI Growth in GNI per capita (2012) % 1.4 WDI Ease of doing business (2013) Rank 129 WDI Agriculture (2012) % of GDP 29.9 WDI Industry (2012) % of GDP 17.4 WDI Manufacturing (2012) % of GDP 10.4 WDI Services etc. (2012) % of GDP 52.7 WDI Government final consumption expenditure (2012) % of GDP 17.2 WDI Tax revenue (2012) % of GDP 19.7 WDI Net ODA received per capita (2012) USD 61.5 WDI Present Value of External Debt (2012) % of exports of goods, services and primary income 69.9 WDI ECONOMIC SECTORS: VALUE ADDED: 27 SOCIAL DATA UNIT Population growth (2009) % annual Life expectancy (2009) SOURCE 2.7 KPC Years 57.7 KDHS Infant mortality (2012) Deaths per 1,000 births/first year 48.7 MDG Maternal mortality (2010) Deaths per 100,000 488 MDG Number of physicians (2014) Per 10,000 inhabitants 1.8 WHO Population with access to an improved drinking water source (2011) % 61.0 MDG People btw. 15-49 years living with HIV (2012) % 6.1 WDI Adult literacy rate (2010) % of people ages 15 and above 87.4 HDI Primary-secondary education (2012) % gross enrolment 91.1 WDI Girls in primary education (2009) % school enrolment 85 WDI Military expenditure (2012) % of GDP 2 WDI Distribution of income (Gini)(2005) 0-100 47.7 WDI Sources: HDI UNDP, Human Development Indicators 2013 KPC Kenya Population Census Report 2009 KDHS Kenya Demographic Household Survey 2009 MDG UNDP Millennium Development Indicators, last updated 2012-2013 WHO World Health Organisation, World Health Statistics 2014 WDI World Bank’s World Development Goal Indicators 28 ANNEX 4 DENMARK’S’ ONGOING DEVELOPMENT ACTIVITIES IN KENYA DEMOCRACY, HUMAN RIGHTS AND GOOD GOVERNANCE From the early 90s when the push for political and governance reforms heightened, Danida supported civil society organizations on anti-corruption and human rights, moving to gender, constitutional reform and access to justice ten years later. The Danish assistance has facilitated the establishment of democratic institutions, multiparty democracy as well as political space for civil society, gender equality promotion and human rights dialogue. The current Kenya Governance Support Programme (DKK 175 million, 2011-2015) focuses on three areas: 1.Support to drivers of accountability through partnerships with both independent public institutions and civil society organizations, including support to constitution implementation, judiciary reform, the election commission, transition to devolved structures, as well as promotion of gender and human rights and civic education 2.Support to public financial management reforms including the auditor general’s office 3.Support to inter-religious and inter-ethnic civil society efforts of peace and security in the coastal region. The new devolved structure of governance reorients the efforts of good governance to county level and provides potential for greater synergies with other Danida programmes at county level. Likewise, the progressive Bill of Rights in the Constitutions provides a solid foundation for a human rights based approach across all the sectors. GENDER Danida has for decades been a major partner in promotion of gender equality that runs as a cross cutting issue in all interventions. Danida has provided core support to the Federation of Women Lawyers (FIDA) and the UN Gender and Governance Programme (GGP). With Danida support FIDA has played a leading role in policy advocacy and in mobilizing national and community women groups to ensure that gender equality measures are included in legislation and government policy. The far-reaching gender equality provisions in the 2010 Constitution can be credited to their work, which they have continued by monitoring the implementation of the constitutional requirement of not more than 2/3rds of either gender in public organisations. Through the GGP programme Danida has empowered female aspirants and encouraged women’s participation in the last General Elections. As the not more than 2/3rds of one gender rule is being implemented, an increased number of women representatives have entered the political sphere providing a momentum for more gender focused and sensitive policies as well as gender mainstreaming throughout the public sector. HEALTH The Danish-Kenyan partnership in the health sector spans over 40 years with the main objective being reduction of poverty and disease. The current Health Sector Programme Support (DKK 430 million 2012-2016) concentrates on influencing policy dialogue on increased access as-well-as support to systems strengthening in provision of health care to the poorest population. With Danida’s assistance, Kenya has achieved key milestones on a number of policies, for example, improvement on child health (MDG 4) which Kenya is set to achieve, sexual reproductive health in management of population growth, health care financing, management of medical supplies, and health information to inform decisions and policy planning. Danida has also strongly supported aid effectiveness focusing on sector coordination, harmonisation and improved government ownership of the health care process. The new devolved system of health services provides an opportunity to strengthen the health care system and improve access to health care by the majority rural and urban poor, which remains a challenge. Danida’s long experience in health care system strengthening is a comparative advantage and enables Danida to play a catalytic role in establishing capacity at county level and bring services closer to the people. The support complements Danida’s broader support to good governance, public financial management and human rights by advancing equity, quality and 29 social accountability in health service delivery. Danida is also leveraging existing private sector investments to improve access, affordability, and quality of health services. NATURAL RESOURCE MANAGEMENT Danida has supported management and reforms of Kenya’s natural capital base especially in the sectors of water, environment and agriculture since the early days of engagement with Kenya. Partnering directly with the Government, this support has brought forward development of relevant sectoral policies, institutional and capacity building, in addition to facilitating communitydriven environmental management and advocacy initiatives. Currently Danida is implementing the Natural Resource Management Programme (DKK 375 million, 2010-2014). The Programme’s main focus is the reduction of poverty through legal framework for sustainable management of natural resources. It supports the demand from community level for technical services from both public and private service providers. Danida has supported the development of Kenya’s National Climate Change Action Plan (2013-2017) and Danida manages the Fast Start Climate Change Programme (DKK 100 million, 2011-2013) to enhance 30 the private sector and community engagement in climate interventions through the use of technology innovation to reduce vulnerability to climate change and contribute to a low carbon development path. Improved capacities and networks within government agencies in environmental management as well as increased energy efficiencies in various industries have been achieved. BUSINESS SECTOR Since the late 1990s, Danida has been contributing to the development of an enabling and vibrant private sector in Kenya. The Business Sector Development programme (DKK 320 million, 2010 – 2014) creates green growth and employment in particular in micros and small businesses and supports the regional East African integration in the interest of trade. In addition the Danida Business Partnership programme has over the years supported 50 Danish and Kenyan businesses contributing to poverty elevation, green growth, technology transfer and capacity building in agriculture, fishery, IT, health, energy and environment, manufacturing and service industries. Since 2011 the Trade Council is present in Kenya, an expression of the trend in shifting from aid to trade as the Kenyan economy develops. Building on the synergies across Danida’s four areas of engagements in health, governance, natural resource management and business a One-Stop-Shop for businesses is being established jointly with IFU (Danish Industrial Fund for Developing Countries) and EKF (Danish Export Credit Fund). It is a unified entry point for Danish companies looking for opportunities, market access and support mechanisms. The initiative facilitates access to all the Danish instruments available for businesses to enhance trade and development between the two countries. REGIONAL ECONOMIC COOPERATION Denmark has, in cooperation with other donors, supported the Regional Economic Integration Support Programme in East Africa which is being implemented by the Secretariat for the East African Community (EAC) and Trade Mark East Africa (TMEA). The programme is promoting the development of the regional market in East Africa and facilitating real economic integration. The programme is supporting improvements in procedures for border crossing, harmonisation of standards, common systems for regulations and improvement of regional transport infrastructure. REGIONAL SECURITY COOPERATION The Peace and Stabilization Program (DKK 215 million, 2011-2014) for East Africa and the Horn of Africa supports among other activities Kenya’s important role in promoting peace and stability in the East African region. It compliments’ the Danida Kenyan program by supporting the Kenyan Navy and the broader regional security architecture such as the East African Standby Forces (EASF). It also supports measures against terror and anti-radicalisation and prevention of money laundering. Much effort is directed to the fact that stabilisation of Somalia, and Kenya’s role herein, is becoming increasingly important, including the rule of law, anti-piracy efforts, support to the AU mission in Somalia as well as improvement of the Somali National Security Forces. 31 ANNEX 5 OVERVIEW OF PROGRESS TOWARDS THE MDGS IN KENYA MDG GOALS INDICATORS PREVIOUS LEVEL CURRENT LEVEL 52.6 % (1997) 45.9 % (2005) Poverty gap ratio (PPP) NA 16.9 % (2005) Share of poorest quintile/national consumption (the poorest 20 %) NA 4.8 % (2005) Employment to population ratio 66.1 % (1999) 55 % (2005) Percentage of underweight under age 5 18.5 % (1998) 16.4 % (2009) Net enrolment ratios in primary education 75.9 % (2005) 84 % (2009) Primary school completion rate 88.6 % (2004) 90.7 % (2005) Literacy rate of 15-24 year-olds NA 82.4 % (2007) Ratio of girls to boys in primary school 98 % (2000) 98 % (2009) Ratio of girls to boys in secondary school 95 % (2000) 90 % (2009) Ratio of girls to boys in tertiary education 54 % (2000) 70 % (2009) NA 32.2 % (1997) 3.6 % (2000) 9.8 % (2013) GOAL 1: ERADICATE EXTREME POVERTY AND HUNGER 1.Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day 2.Achieve full and productive employment and decent work for all, including women and young people 3.Halve, between 1990 and 2015, the proportion of people who suffer from hunger Proportion of population below total consumption poverty line GOAL 2: ACHIEVE UNIVERSAL PRIMARY EDUCATION Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling GOAL 3: PROMOTE GENDER EQUALITY AND EMPOWER WOMEN Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education, no later than 2015 Share of women in wage employment in the non-agricultural education Proportion of seats held by women in the National Assembly 32 MDG GOALS INDICATORS PREVIOUS LEVEL CURRENT LEVEL 103.5 (2005) 72.9 (2012) Infant mortality rate (per 1,000 live births) 64.5 (2003) 48.7 (2012) Maternal mortality ratio (per 100,000 live births) 450 (2005) 360 (2010) Proportion of births attended by skilled health personnel 41.6 % (2003) 43,8 % (2009) Contraceptive prevalence rate 39.3 % (2003) 45.5 % (2009) 116 (2001) 106.3 (2006) 6.0 % (2010) 5.9 % (2011) Condom use at last high-risk sex among 15-24 years, female 25.4 % (2003) 39.15 % (2009) Condom use at last high-risk sex among 15-24 years, male 46.8 % (2003) 64.3 % (2009) Proportion of women aged 15-24 years with comprehensive correct knowledge of HIV/AIDS 44.4 % (2007) 48.7 % (2009) Proportion of children under 5 sleeping under insecticide-treated bed-nets 4.6 % (2003) 46.7 % (2009) 20 (2010) 22 (2011) GOAL 4: REDUCE CHILD MORTALITY Reduce by two-thirds, between 1990 and 2015, the mortality rate of children under five Under-five mortality rate (per 1,000 live births) GOAL 5: IMPROVE MATERNAL HEALTH 1.Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio 2.Achieve, by 2015, universal access to reproductive health Adolescent birth rate (per 1,000 women) GOAL 6: COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES HIV prevalence among population aged 15-24 years 1.Halt and begin to reverse, by 2015, the spread of HIV/AIDS 2.Achieve universal access to treatment for HIV/AIDS for all those who need it 3.Halt and begin to reverse, by 2015, the incidence of malaria and other major diseases Death rates associated with tuberculosis per 100.000 population 33 MDG GOALS INDICATORS PREVIOUS LEVEL CURRENT LEVEL 11.56 % (2010) 11.59 % (2012) N/A 196/7,847 (2009) Proportion of population using an improved drinking water source 60 % (2010) 61 % (2011) Proportion of population using an improved sanitation facility 29 % (2010) 29 % (2011) 54.8 % (2007) 54.7 % (2009) GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY 1.Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources 2.Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss 3.Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation 4.Achieve, by 2020, a significant improvement in the lives of at least 100 million slum dwellers Proportion of terrestrial and marine areas protected Proportion of species threatened with extinction (out of total known species) Proportion of urban population living in slums Source: UNDP Millennium Development Goals Indicators, last updated 2012-2013 34 DANMARK – KENYA PARTNERSHIP POLICY 2015-2020 January 2015 Publisher: Ministry of Foreign Affairs of Denmark Asiatisk Plads 2 1448 Copenhagen K Denmark Phone +45 33 92 00 00 Fax +45 32 54 05 33 [email protected] Internetwww.um.dk Design: BGRAPHIC Photo: Maiken Lyster Thonke The publication can be downloaded or ordered from: www.danida-publikationer.dk The text of this publication can be freely quoted. 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