DENMARK – KENYA PARTNERSHIP POLICY 2015-2020

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°
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Kora National
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Map No. 4187 Rev. 3 UNITED NATIONS
December 2011
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The boundaries and names shown and the designations
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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.
ISBN 978-87-90656-22-5 (PDF version)
WWW.DANIDA.DK