Introduction Socio-Economic and Political Context Status of Development Planning Instruments Status of Common Premises

Country Profile

The Socio-Economic and Political Context

Kenya's economy has been struggling to recover from decades of decline and stagnation, with service provision having deteriorated, per capita income severely declined in real terms, and the proportion of people below the national poverty line risen from 48% in 1990 to 56% in 2003. The economy improved and grew at 2.6 percent in 2004 compared with 1.8 percent in 2003.

Key socio-economic indicators have been on a downward trend:

• illiteracy rates have increased as school enrolment rates have dropped;
• life expectancy has fallen;
• child and maternal mortality rates have risen; and
• Kenya has remained one of the most unequal societies in the world.

At the root of much of this decline lie deep-rooted structures of political and economic patronage. These have led to an environment in which corruption has flourished, there has been widespread misuse and theft of public resources, public institutions have been chronically weakened and the private sector has been unable to operate effectively to create wealth and prosperity, which is the overall theme of the Government's economic blue-print - the Economic Recovery Strategy for Wealth and Employment Creation.

The foregoing notwithstanding, Kenya still has the potential to make rapid progress in reducing poverty and improve livelihoods for her people. It has a relatively well-educated and trained labour force, and a strong industrial and manufacturing base. It is at peace with its neighbours and is free from major internal conflict. And its geographical position and potential in areas such as tourism and the export of high-value agricultural crops and products combine to make Kenya the natural driver of economic prosperity in the region.

The National Rainbow Coalition Government elected in December 2002 made a promised to tackle some of the challenges, and enable Kenya to realise its potential. Anchored on the Economic Strategy for Wealth and Employment Creation was the bold step to implement free primary education and tackle corruption. Key challenges remain including, strengthening the focus of the ERS on poverty reduction; ensuring that the implementation of the ERS drives decision-making (including on budgetary allocations); maintaining momentum in the war against corruption; and putting in place an effective multi-sectoral response to the HIV/AIDS epidemic.

Back to Top

Key political and socio-economic issues significant for UN System Development Assistance.

The second year of the Kenya Government NARC has been received with mixed reactions. The promises of its election manifesto have only been partially met. Public confidence and development has been marred by internal political wrangling, allegations of corruption, and failure to deliver a new constitution. In addition, the country has suffered a famine due to prolonged drought. During the fourth quarter of the year, inflation rates shot past the 15 % mark, being the steepest rises in inflation over the past two decades. Only approximately 4% of donor pledges reached the coffers at the treasury, mainly due to the inability of the government to meet the numerous conditions. Some donors voiced concern on the government's failures to institute reforms and failure to fight corruption. This had a negative impact on the development of the country's infrastructure and slowed interventions on the Millennium Development Goals (MDGs). The direct impact on the UN is increasing signs of international aid redirected through the UN, as opposed to through direct budget support as anticipated in 2003.

Despite these hindrances, there have been some key socio-political achievements. Progress, albeit slow, has been made, by addressing corruption through judicial reforms; the Kenya Anti-Corruption Commission took up office in September 2004; Kenya also hosted an international anti-corruption conference in October 2004. Kenya has been pivotal in supporting regional peace and democracy. Within the frame work of IGAD, Kenya has hosted and played an active role in the negotiations to resolve the civil war in Sudan and to re-instate a central government in Somalia. An International Conference of the Great Lakes region Summit in Dar-es-Salaam, held in November 2004, concluded successfully with the Heads of State and Government signing the Dar-es-Salaam Declaration on Peace, Security, Democracy and Development in the Great Lakes region.

The MDGs process in Kenya has been inclusive, consultative and primarily nationally driven. The UN and other development partners have supported the process through enhanced development assistance and greater policy dialogue with government. In 2004, the Secretary General, Koffi Annan visited the country twice and through discussions held with the President, reinforced cooperation and relations between the UN and Kenya and reiterated the UN's commitment to push for pledged resource commitments for the MDGs to be met. Professor Jeffrey Sachs, the Secretary General's Special Advisor on the MDGs, visited the country thrice, strengthening advocacy on the issue of health, agriculture and the call for donors to honour their commitment to increase ODA. Policy ramifications show reinforced Government commitment by passing of the National Health Insurance Fund Bill, participating in high-level discussions in the agriculture sector, including tangible efforts to realign the Economic Recovery Strategy for Wealth and Employment Creation (ERS) and other national planning frameworks to the MDGs.

Commitment to improving good governance, the entrenchment of rights and freedoms of citizens, the delivery of services towards attainment of the ERS and MDGs has been forthcoming. Thus creating an enabling environment for UN support to the national priorities, such as to government mechanisms to measure ERS as well as the launch of a National Information and Communication policy framework in partnership with the UN. In November 2004, the country launched the National Commission of Gender and Development with the support of the UN and other development partners, representing a milestone in the struggle for gender equity and equality in Kenya. Kenyan environmentalist Honourable Professor Wangari Maathai was the first African woman to win the Nobel Peace Prize. The effects are expected to be far reaching in terms of advocacy, shaping environmental policy and promoting gender equality and good governance. Kenya was appointed a focal point for the African Peer Review Mechanism arm of the New Partnership for Africa Development (NEPAD) and joined other African states in the campaign for the adoption of uniform labour laws to collectively tackle serious problems facing the continent such as unemployment, poverty and HIV/AIDS.

Operational Committees

• Inter-Agency Administration Coordination Committee

Addresses the harmonisation and collaboration on issues such as transport and shipping, auditing, disbursement, taxes, recruitment, technology, and programme and project financial reporting and accountability. It is convened by UNDP and UNON, and reports to the Kenya Country Committee (KCC).

• United Nations Communications Group

This is an inter-agency committee that identifies common UN system public information needs and addresses special information projects and events. Participants include information/media officers of the UN system. It is coordinated by UNIC and reports to KCC.

• Security Management Team

This inter-agency team jointly addresses and finances common security needs. It is headed by the Director General, United Nations Office in Nairobi, (for Nairobi) and the Resident Coordinator (up-country) and works with the Kenya Country Committee.

Back to Top

Status of Development Planning Instruments.

• Poverty Reduction Strategy Paper and Economic Strategy for Wealth and Employment Creation of 2003.
  Kenya's development priorities are articulated in the Government of Kenya's Economic Strategy for Wealth and Employment Creation of 2003.
  
  
• Common Country Assessment (CCA)
  The preparation of the second Common Country Assessment (CCA) database for Kenya was completed in 2002.
  
  
• Harmonization of Programme Cycles.
  Kenya is one of the five pilot countries to spearhead this process together with Benin, Niger, Pakistan and Ecuador. Within this context, four UN funds and programmes in Kenya, UNDP, UNICEF, UNFPA and WFP, while initiating their programme of S&H together with other interested agencies, have developed a common Results Matrix and Monitoring and Evaluation Plan to spell out how the programme activities of each agency will contribute to the achievement of the UNDAF outcomes linked to the overall national and millennium development goals. These agencies are now operating on the basis of a harmonized programming cycle from 2004 to 2008.
  
  
• United Nations Development Assistance Framework (UNDAF).
  The preparation of the second United Nations Development Assistance Framework (UNDAF) 2004-2008 was completed with the signing of the document in May 2003.