National Safety Net Program (P131305) and Kenya Social and Economic Inclusion Project (P164654) Implementation Support Mission January 28-February 8, 2019 Aide Memoire 1. An implementation support mission was undertaken January 28 to February 8, 2019 for the National Safety Net Program (NSNP) and the Kenya Social and Economic Inclusion Project (KSEIP). The mission was led by the World Bank team1 and comprised of representatives from the implementation agencies: State Department for Social Protection (SDSP) and the National Drought Management Authority (NDMA), as well as with the National Treasury (NT). The mission also met development partners, including the United Kingdom’s Department for International Development (DFID), co-financing the KSEIP, as well as with UNICEF and the World Food Program (WFP) to align respective support to the Government. The mission participants are included in Annex 1. Field visits were also undertaken to Kisumu, Marsabit, Nakuru and Taita Taveta (annex 4). This Aide Memoire (AM) summarizes the findings on the status of the project implementation, recommendations and agreements reached with the relevant agencies to take corrective measures and/or to expedite NSNP implementation and ensure efficient start of KSEIP activities. The AM was discussed at two wrap-up meetings on February 8, 2019: with SDSP and NDMA, chaired by Mr. Nelson Marwa Sospeter, Principal Secretary (PS) for Social Protection and with NT, chaired by Mr. Jackson Kinyanjui, Acting Director General, Public Debt Management Office. 2. The objectives of the mission were to review the implementation readiness of KSEIP and the progress being made on the NSNP. This included assessment of availability of budgetary resources to the KSEIP and the NSNP implementation agencies - SDSP and NDMA - which is necessary to finance technical activities and accordingly ensure timely achievement of the Disbursement Linked Indicators (DLIs) under each project. I. OVERALL STATUS AND KEY PROJECT DATA 3. The mission confirmed that implementation of preparatory activities for KSEIP and ongoing implementation of the NSNP are progressing well; but stressed that particular attention is needed to ensure adequate budget allocations from NT for this and next Fiscal Year (FY) to enable SDSP and NDMA to achieve results under both NSNP and KSEIP. For KSEIP, this is particularly critical for DLIs 5 and 6 which are time- bound. The mission noted that KSEIP has now been signed but is awaiting provision of the legal opinion by the Attorney General’s Office. This would enable declaration of effectiveness and subsequent budgetary allocation for payments of emergency cash transfers under the Hunger Safety Net Program (HSNP) in case of a drought this FY, as well as for the Government to fully take over financing of HSNP cash transfers from July 2019. Since these are time-bound DLIs, the Government will not be able to achieve them unless they are achieved within the set time frame. These DLIs represent disbursements of US$ 36.5 million of which US$16.5 million is grant resources (see paragraph 20). SDSP and NDMA confirmed that their PSs will follow up and hold discussions with PS NT to ensure adequate budget allocations. A formal communication will also be made from SDSP and NDMA to NT in this regard no later than February 15, 2019. 4. For the NSNP, overall satisfactory progress has been made in the implementation of progress towards achieving the PDO. Implementation Progress was also deemed satisfactory. The mission however, noted that timeliness of payments remains a challenge but also noted that the main reason for delay is the ongoing rollout of the new payment mechanism. Between July 2018 and December 2018, only 7.6 percent of NSNP payments were made on time. Payments are expected to become timely from end of February onwards. The Government confirmed that NT has agreed to put all cash transfers on the recurrent budget from next FY which will facilitate future timely payments. Key achievements and challenges are summarized below for each of the two programs: 1 The World Bank team consisted of Emma Mistiaen (Senior Social Protection Specialist and Task Team Leader), Iftikhar Malik (Senior Social Protection Specialist and Co-Task Team Leader); Kevin Heraniah (Social Protection Specialist); Nadia Selim (Social Protection Specialist); Barry Maher (Senior Financial Sector Specialist); Henry Amuguni (Senior Financial Management Specialist); David Gacheru (Procurement Specialist); Nancy Gamusa (Program Assistant); Theresa Paulet Jones (Senior Social Protection Consultant), Giulia Parzani (Social Protection Consultant); Judith Sandford (Social Protection Advisor Consultant); Vanessa Tilstone (Social Safeguards Consultant) and Agha Hussain (Fiduciary consultant). Janet Heisey (Economic Inclusion Consultant) supported the mission remotely. 1 5. NSNP - The Mission reviewed progress of the NSNP towards the achievement of DLIs under the Program for Results (PforR) and confirmed that three additional results have been achieved since the previous mission: The Government has successfully: (1) expanded the NSNP in the NEDI counties as part of the 70+ roll out (partially achieving DLR 1e); (2) increased awareness of beneficiaries (partially achieving DLR 6b(iii)); and (3) implemented additional FM action reaching 80 percent of agreed critical FM actions (partially achieving DLI11). Together, these DLRs represent around SDR 8.6 million (around US$12 million). Evidence for the DLIs is being compiled and is expected to be submitted to the World Bank by February 22, 2019. Further progress was noted on a number of other DLIs expected to be achieved this FY (see annex 3). With the additional DLIs achieved and expected to be achieved before end of FY19, the project is expected to have disbursed a total of 80 percent (one year before the closing of June 2020), which is below the target of 88 percent. 6. KSEIP. Preparatory activities for KSEIP are progressing well but there is need to pay urgent attention to ensure adequate budgetary allocation for this FY and next to enable KSEIP implementation. The Financing Agreement (FA) and Grant Agreement (GA) for the KSEIP have been signed and NT now needs to ensure speedy provision of the legal opinion by the AG’s Office to enable declaration of effectiveness of the project. This is particularly important because of the timebound DLIs 5 and 6 (see above). Table 1 – Project Data National Safety Net Program for Results Original IDA Credit Board Approval July 23, 2013 Closing Date June 30, 2020 IDA Credit Amount SDR 166.9 million (US$ 237 million) Amount Disbursed SDR 126 million (US$ 179 million) % Disbursed 75% Additional Financing IDA Credit Board Approval April 27, 2017 Closing Date June 30, 2020 IDA Credit Amount SDR 36.8 (US$ 52 million) Amount Disbursed SDR 14.5 million (US$ 20.5) % Disbursed 39% Kenya Social and Economic Inclusion Project Board Approval November 27, 2018 Closing Date December 31, 2023 IDA Credit Amount US$ 250 million Co-financing through Recipient-Executed Grant US$ 70 million Amount Disbursed IDA Credit US$ 0 Amount Disbursed Grant US$ 0 % Disbursed 0% II. KEY POINTS DISCUSSED AND AGREED ACTIONS A. NATIONAL SAFETY NET PROGRAM 7. Timeliness of Payments –The mission discussed concerns around the continued challenges of timeliness of payments for NSNP. In the three payment cycles since the previous JRIS mission, July 2018 to December 2018, only 7.6 percent of payments were made on time (as per the DLI protocol). The programs under the CCTP have had delays in all payment cycles; however, payments for HSNP have been on-time. The July/August 2018 payments for the CCTP were delayed by less than one month, but the September/October and November/December payments are still outstanding due to the ongoing migration to the new payment system. Once this exercise is completed, it is expected that payments will become timely. 8. New Payment Solution for NSNP – The mission confirmed that accounts have been opened for 75 percent of the CCTP (non-70+) beneficiaries (over 510,056 beneficiaries out of the target of 636,000) across the four payment providers who are participating in the new solution. This process has identified a number of deceased caregivers and beneficiaries which will result in some beneficiaries/households being removed from the beneficiary list and/or the identification of alternate caregivers. SAU will start preparing a payroll under this new payment solution on February 13, 2019 but will continue to resolve and enrol outstanding cases and/or identify replacements before the closure of the FY18/19. 2 9. Harmonized Targeting Methodology – The mission noted that the finalization of the HTM has not yet been concluded and agreed that this should be given priority in the coming month, since a number of other streams of work, including the development of the targeting MIS module and the recertification strategy, depend on the HTM to be finalized. It was agreed that the Technical Assistance (TA) firm financed by DFID will support the completion of the existing HTM and thereafter immediately commence a more extensive review of the HTM and update it based on the recent Kenya Integrated Budget Household Survey (KIHBS 2015/2016). 10. Recertification – A draft recertification strategy has been completed. SAU is currently reviewing this strategy internally and will thereafter hold a consultation workshop to allow county officers the opportunity to review the strategy before it is formally adopted. This process is expected to be completed by the end of February and evidence of achievement of DLI2b will be submitted shortly thereafter. The mission noted the importance of finalizing this process to allow HSNP to complete its reregistration process and to allow implementation of year 1 of the recertification plan prior to the closure of the NSNP project in June 2020. 11. NSNP Expansion in the North and Northeastern counties (NEDI) – Compilation of evidence of the expansion of the OPCT 70+ in the NEDI counties was completed and will be submitted to NT by February 15, 2019. This evidence shows achievement of an eligible expansion of 13,023. US$ 4.7 million will be disbursed once the evidence has been submitted to the World Bank. SAU has also continued discussions with NT regarding the need for sufficient resources to support expansion of the CT-OVC programme in NEDI counties and complete achievement of this DLI. A request has been submitted for inclusion of financing in an upcoming supplementary budget for the FY18/19 and the Ministry submission for the FY19/20 includes sufficient funds for this expansion. If the FY19/20 does not include this budget, then DLI1e will not be met prior to the closure of the NSNP programme. The mission therefore agreed that SAU will begin registration and enrolment for CT-OVC expansion this FY18/19 to allow payments to start at the beginning of FY19/20. 12. Consolidated MIS including decentralized Grievance and Case Management (G&CM) System – The mission noted that the consolidated SAU MIS was completed (including the G&CM module) and that data migration from the CT-OVC and SD-MISs has been completed. The next payroll will be generated from the new MIS. The MIS is web based which will allow users based at county and sub-county level to access the MIS. SAU will undertake training of county officers and create accounts for them to have appropriate access rights and manage key functions in a decentralized system. This process will commence for the 20 sub-counties targeted for roll-out of the decentralized G&CM system (DLI6a(ii)). Roll-out to the remaining counties and sub-counties will take place thereafter. The DLI is expected to be achieved early next FY since priority is currently given to the new payment solution. Evidence for this DLI will need to include reporting on the functioning of the overall G&CM system (including at the national level). 13. Beneficiary Awareness of NSNP - Evidence of partial completion of DLR 6b (iii) was submitted during the mission. This confirmed that the PIBS survey found good awareness by beneficiaries on key programme entitlements. The ongoing roll-out of the Beneficiary Outreach Strategy (see paragraph 18) is expected to further improve beneficiary awareness and understanding of the program. The mission noted that SAU needs to urgently reach an agreement with the TA firm regarding the support to measure the outstanding indicator for this DLI6b(iii) related to beneficiaries’ awareness of two means of making a complaint or updating their information, since no further PIBS is planned under the PforR for the NSNP. Measuring this outstanding indicator needs to be concluded by September 2019 when the TA firm contract ends. 14. Behavioral Nudges: Good progress has been made in advancing the work of behavioral nudges and financial literacy (FL), aligned closely with the updated Beneficiary Outreach Strategy (BOS). For behavioral nudges, appropriate behavioral nudges and delivery channels have been identified and designed aimed at supporting beneficiaries to better manage the cash transfers they receive. These are being piloted in February/March (when payments will be made), findings and lessons learned of which will inform the final design. For FL, initial training materials have been developed and tested in the field in 2018, and will be discussed and finalized with SDSP this fiscal year. It is expected that a joint manual for nudges and FL will also be developed this FY to ensure harmonization between the two streams of work and will be integrated as an annex in an updated BOS going forward. 3 15. Complementary Service Module in SR - The TA firm undertook a preliminary assessment to verify the functionality of the Complementary Service Module (DLI10a). They highlighted a number of issues that need to be addressed before the verification can be completed. Key activities include: (i) development of summary guidance for potential users on the purpose of the module, who can access it and the procedures involved in accessing the data; (ii) finalization and formal adoption of the data sharing protocols; (iii) adjustments to the user access rights to reflect staffing changes in SPS; and (iv) the successful completion of a trial registration and data access process by the TA firm. SPS expects this to be concluded by April 18, 2019. 16. NSNP Governance and Oversight Structures – The mission noted that no meetings by the Program Working Committee (PWC) has been held since the previous mission nor a National Steering Committee (NSC) for Social Protection. There is a need to think what oversight structure, which meets regularly, might best support the NSNP going forward. 17. Setting up of the National Drought Emergency Fund (NDEF) – The mission was informed that the NDMA act had to be amended before the NDEF regulations could be approved (due to overlap of the two). Amendment of the NDMA act has been finalized and will be submitted to Parliament for approval next time Parliament convenes. Thereafter the NDEF regulations can be submitted to Parliament for approval. It is critical that NDMA continues to pursue this closely since NDEF is critical for DLI6 of KSEIP related to emergency payments under HSNP. 18. Beneficiary Outreach Strategy – SDSP has made good progress in implementation of the BOS in 20 sub-counties (DLR 6b (ii)). Training of relevant program officers and beneficiary welfare committees (BWCs) has been completed. Additionally, the SDSP has supported barazas for beneficiaries organized by Chiefs and meetings of beneficiary groups by the BWCs in each of the sub-counties to raise beneficiary awareness of key topics. The most critical part of the BWCs training the beneficiaries is however still outstanding. It is expected that this will be concluded by March 31, 2019. 19. Results Frameworks (RFs): The mission discussed results achieved to date, including DLIs (see annex 2). B. KENYA SOCIAL AND ECONOMIC INCLUSION PROJECT 20. Status of DLIs – As mentioned above there are some critical DLIs under KSEIP which are time- bound, meaning that Government has to achieved them within a set time frame or they will no longer be possible to meet. For this FY18/19 and July 2019 the disbursements linked to those time-bound DLIs is US$ 36.5 million (see below). An additional DLI1a(i) is expected by June 2019 related to the strategy and tools for the Enhancement of the Single Registry (ESR). Lastly, SAU has already migrated of over 60 percent of beneficiaries of the SAU programs and DLI2a will be met in February almost 1.5 years prior to expected timeline (worth disbursement of US$ 9 million). DLRs Indicative Timeline Disbursement Value Disbursement Value WB IDA credit DFID grant DLR 1a (i): Design and implementation June 2019 US$ 6,000,000 arrangements for enhancements in SR (EUR 5,200,000) finalized DLR 6a (i): Financing plan for HSNP Timebound - June US$ 1,000,000 scalability for FY19/20 adopted and 2019 (EUR 865,000) financed DLR 6a (ii) Emergency payments made in Timebound - June, US$ 4,000,000 US$6,900,000 FY18/19 for 100% of the total number of 2019 (EUR 3,500,000) households triggered in 4 counties where HSNP is functional DLR 5b - 100% of existing HSNP Timebound - July, US$ 15,000,000 US$9,600,000 households in the original four Counties 2019 (EUR 13,000,000) financed by the Government by July 2019 DLR 2a: 60% of beneficiaries receiving June 2020 US$ 9,000,000 payments through the new Payment (EUR 7,800,000) Mechanism 4 21. Enhancement of the Single Registry – The mission discussed the draft ESR strategy and SPS shared a revised version with the World Bank for comments and inputs. It was agreed that SPS would organize an internal review of the strategy, including selected participants from other agencies, by end-February and that a workshop will be held April 10-11 to present the draft strategy to key stakeholders. The strategy is expected to be finalized by June 2019. 22. NHIF roll-out – The mission met with NHIF to discuss status of NHIF roll-out and agree on next steps for KSEIP DLI4b(i) which is a formal agreement between MOH, SPS and NHIF and development of the tools to support a systematic process for the enrolment of NSNP beneficiaries in the NHIF. The mission highlighted the importance of beginning work on this and agreed that the first step would be for SPS to arrange a meeting between the Cabinet Secretaries (CS) of the Ministry of Health and the Ministry of Labour and Social Protection by the end of March. 23. Economic Inclusion – Several preparatory activities have been initiated for EI intervention. Procurement of the NGO to provide TA for EI design and rollout has commenced and TOR for context analysis agreed. The World Bank will bring on board TA to support the context analysis. During the mission it was also agreed that the Economic Inclusion (EI) intervention will be implemented in five counties: Kisumu, Makueni, Marsabit, Muranga, and Taita Taveta. A combination of criteria was used to select those counties to enable the Government to learn lessons from different contexts within Kenya and inform the future expansion (see annex 5). 24. NICHE – The mission discussed status of NICHE preparatory activities and concluded that there is an urgent need to finalize and sign the agreement with UNICEF to enable the commencement of the preparatory activities. UNICEF also informed the mission that the pilot in Kitui has ceased, and therefore, implementation will start afresh (including targeting) once the new intervention under KSEIP is launched. The mission also discussed outstanding issues related to reporting format for the NICHE agreement and UNICEF will share a revised agreement by February 13, 2019 for the World Bank and DCS to review. The final agreement will then be cleared by the World Bank and signed by UNICEF and SDSP. It is expected that the agreement is signed no later than March 1, 2019. 25. Financing plan for HSNP Scalability: NDMA has finalized the financing plan and discussions were held with NT on the draft plan. Given the urgency to get this plan adopted and financed, to enable emergency payments for HSNP counties, it was agreed that NDMA and NT will formally adopt the financing plan and confirm the method for financing the plan by February 22, 2019. Thereafter NDMA will prepare the evidence for submission to the World Bank related to this DLI. In case emergency payments are triggered before the financing plan is adopted it was also agreed that Government will make the emergency payments to ensure that the DLI6a(ii) can be achieved. 26. KSEIP M&E – The Mission acknowledged the need for further work to elaborate and operationalize the RF for KSEIP. This includes refining monitoring processes of the operational departments implementing KSEIP activities (SAU, DSD, DCS and NMDA) and how this will feed into the overall M&E of KSEIP led by SPS. The mission acknowledged that SAU has embarked on a process to develop a specific SAU M&E strategy, while SPS has taken some steps to elaborate on key progress indicators and tools. The mission agreed that each operational unit would review the RF agreed upon for KSEIP and detail the specific monitoring requirements and tools relevant to their responsibilities (March 2019) prior to joint discussion, led by SPS, to refine and agree the overall M&E system for KSEIP (May 2019). SDSP also confirmed its wish to continue operational monitoring and beneficiary satisfaction surveys as a means of supporting monitoring of programme implementation. The mission specifically discussed the value of an independent impact evaluation for the EI intervention. DFID confirmed that they will explore options for how they can support such evaluation and will confirm if it is possible by no later than March 1, 2019. 27. WFP’s continued support to SDSP – WFP confirmed their commitment to continue supporting the SDSP in information systems strengthening as part of their recently approved country strategic plan. This includes development of a module in the existing Single Registry for its enhancement of scope, coverage, and functionality through KSEIP and other relevant modules necessary for KSEIP monitoring (NICHE, Economic Inclusion, and NHIF). It was however agreed that a technical working group would be formed and meet to 5 further discuss details of the requirements for such support to enable WFP to clearly determine if support can be provided to address the needs of KSEIP. Further discussions will be held once the TOR for the overall assignment has been prepared. The working group will share draft TOR by March 29, 2019. C. FIDUCIARY COMPLIANCE 28. Procurement Performance – There are no major concerns related to procurement for NSNP and the rating remain satisfactory. The mission noted that the General Procurement Notice (GPN) for KSEIP had been approved by the World Bank and published in UNDB. It was agreed that NDMA and SDSP will submit the initial eighteen (18) month procurement plans in STEP for World Bank’s No Objection by latest February 15, 2019. On the initial KSEIP procurement preparatory activities, the mission agreed that SDSP will commence the procurement process for the EI intervention. NDMA, will proceed with PMU staff selection and sign contracts by latest February 28, 2019. The mission also noted that NDMA has concluded the selection of the new PSP for HSNP and confirmed that the contract will be signed by no later than February 28, 2019. The mission also confirmed to SDSP and NDMA that they can commence procurement activities even though KSEIP financing is not yet there. KSEIP allows for retro-active financing from September 1, 2018 for activities related to KSEIP. SDSP and NDMA were also encouraged to explore innovative methods of reaching out to potential bidders especially of specialised consultancies to ensure adequate responses and avoid low/inadequate responses. 29. Financial Management (FM) Performance – The rating for FM for NSNP remain satisfactory, mainly given the important progress made on the implementation of 80 percent of the agreed critical FM actions. SDSP will submit the formal request for this achievement by no later than February 15, 2019. Specific discussions on FM were undertaken during the second week of the mission and SDSP continues to make progress in the implementation of the agreed priority FM. Two critical actions were identified as pending since the previous mission; (i) full-time deployment of an accountant for NSNP; and (ii) the establishment of the audit committee. It was however agreed that one of the SAU payment officers will be reassigned to act as project accountant. The mission also confirmed that SDSP needs to urgently constitute the audit committee. 30. An Extended Comprehensive Action Plan (eCAP) has also been prepared by SAU, listing additional technical assistance requirements in MIS and fiduciary matters. eCAP will be submitted to WFP, DFID and the World Bank by March 1, 2019 and further discussions will be held on next steps. It was also been agreed that the procedure for monitoring the progress of eCAP will remain the same as for the original CAP, using progress and completion indicators. 31. The mission also discussed the level of FM preparedness for KSEIP and provided guidance on steps that need to be followed to ensure that respective designated accounts and project accounts are opened, and necessary staff are trained on Client Connection to facilitate timely disbursement of funds. The mission agreed that the World Bank’s Financial Management specialist will support NDMA in terms of transition in FM functions from FSD to NDMA by March 19, 2019. It was also agreed that SDSP and NDMA will find out the requirements and processes needed to open the respective KSEIP Designated Accounts and project accounts so that they can move swiftly as soon as the project is declared effective. D. SAFEGUARD MANAGEMENT 32. Social Safeguards – The KSEIP Vulnerable and Marginalized Group Framework (VMGF) was discussed, and it was reconfirmed that a Vulnerable Marginalized Group Plan (VMGP) would need to be prepared for new activities (i.e. NICHE, economic inclusion, and HSNP expansion) under KSEIP in target locations prior to implementation. Focal points in each of the relevant departments in MLSP and NDMA will be identified to lead on safeguards issues, coordinated by a focal point within SPS. A capacity building workshop will be held on March 15 for the focal points and relevant partners, to be cascaded down to the county and sub-county officers. It was agreed that technical expertise can be made available by the World Bank for the preparation of the VMGPs, as needed. It was further agreed that for existing activities under NSNP, the database of vulnerable and marginalized groups (VMGs) will be updated by county and sub-county officers nation-wide, indicating measures undertaken on the ground to reach out to VMGs and any challenges faced; and discussed and shared with relevant county officers. 6 III. Next Steps and Matrix of Agreed Actions 33. The next joint implementation support mission is scheduled for May 6-10, 2019. The following table highlights the most important actions agreed during the mission. The SPS will continue to be responsible for overseeing and regularly tracking progress against these actions to ensure that progress is made, and additional support identified if/as needed in a timely manner. 34. Disclosure of the Aide Memoire. The Government agreed that this AM can be publicly disclosed. Action Para Deadline Responsible 1 Formal communication to the Principal Secretary, NT, summarizing 3 February 15 SDSP and the key requirements for NSNP and KSEIP requesting speedy action NDMA for budget allocation for FY18/19 and FY19/20. 2 Submission of Legal Opinion for KSEIP 3 February 18 NT 3 Finalization of existing HTM tool 9 February 28 SPS & SAU 4 Review of HTM using new KHIBS data for ESR 9 June 30 SPS & SAU 5 Workshop on Recertification Strategy 10 February 22 SAU 6 SAU to open accounts and train officers for decentralized access to 12 March 31 SAU consolidated SAU MIS in 20 sub-counties. 7 Agreement with the TA firm regarding support to measure 13 February 15 SAU outstanding indicator for DLR6b(iii) 8 Conclude amendments to the Complementary Service Module 15 April 18 SPS (DLI10a) and commence discussions on the agreements to be signed 9 Conclude implementation of BOS in 20 pilot sub-counties 18 March 31 SAU 10 Workshop on draft Strategy for Enhancement of the Single Registry 21 April 10-11 SPS 11 Meeting with NHIF and MOH to agree on next steps for NHIF roll- 22 March 1 SPS out strategy and tools 12 Sign agreement between the Government and UNICEF for TA to 24 March 1 SDSP NICHE 13 Adoption of the scalability financing plan and confirmation of 25 February 22 NDMA and financing NT 14 DFID to finalize internal discussions and provide feedback on 26 March 1 DFID whether they can lead on EI impact evaluation 15 TOR for KSEIP MIS function requirements 27 March 29 SPS 16 Signing of contracts with PMU staff to ensure overlap with the 28 February 28 NDMA existing PILU staff for capacity building and smooth transition 17 Sign contract for the new PSP solution for HSNP to be effective in 28 February 28 NDMA April 2019 18 Share information on results and impacts of NSNP cash transfers February 28 SPS with NT 7 Annex 1: Mission Participants Name Organization Name Organization 1 Mr. Nelson Marwa Sospeter, EBS PS - SDSP 44 Ms. Julie Omolo DSD 2 Mr. A. Leonard N ASAL 45 Mr. Josephat Kalinge DCS 3 Mr. Ben Mugambi SDSP - Admin 46 Mr. Harrison Ng'ang'a DCS 4 Hon. Mohammed Gabbow CEO - NCPWD 47 Mr. Tobias Onyango DCS 5 Ms. Dorothy Kimeu NT 48 Mr. Franklin Makhulu DCS 6 Mr. Patrick Macharia NT 49 Mr. Moses Muga SDSP - Accounts 7 Mr. Mohamed Chute NT 50 Ms Beatrice Igawa SDSP – Accounts 8 Mr. Albert Mwenda NT DG Budget 51 Mr. Kennedy Okeyo SDSP – Finance 9 Ms. Linnet Vitisia NT-RMB 52 Mr. Sammy Cheruiyot SDSP – Finance 10 Mr. Joseph Murage NT Budget 53 Mr. Urbanus Kioko SDSP – Procurement 11 Mr. Peter Muhia NT Budget 54 Mr. James Njogu SDSP – Procurement 12 Mr. Jackson Kinyanjui Director-ERD 55 Ms. Grace Bruno CPPMU 13 Mr. John Gachigi SAU 56 Mr. James Oduor NDMA 14 Mr. Nicholas Mac’B SAU 57 Mr. Sunya Orre NDMA 15 Ms. Judy Tuda SAU 58 Hussein Bilala NDMA 16 Mr. Peterson Ndwiga SAU 59 Mr. Naseer Khan NDMA – HSNP 17 Ms. Lilian Karinga SAU 60 Mr Peter Tharika NDMA – HSNP 18 Mr. Sidney Achia SAU 61 Ms. Susan Kiragu OPM – TAT 19 Mr. Philip Didi SAU 62 Mr. Tim Waites DfID 20 Mr. Paul Njoroge SAU 63 Ms. Josephine Gitonga DfID 21 Mr. Andrew Too SAU 64 Ms. Mercy Oduor DfID 22 Ms Diana Muyala SAU 65 Ms. Zoe Hensby DfID 23 Mr. Brian Magara SAU 66 Mr. David Kamau WFP 24 Mr. Dennis Bengat SAU 67 Mr. Ousmane Niang UNICEF 25 Ms. Evelyn Mwangi SAU 68 Mr. Yves Dublin UNICEF 26 Ms. Cecilia Mbaka SPS 69 Ms. Susan Momanyi UNICEF 27 Ms. Stefanie Bitengo SPS 70 Ms. Shalini Guduri UNICEF 28 Mr. Bernard Moenga SPS 71 Mr. Patrick Codjia UNICEF 29 Mr. Stephen Ndungu SPS 72 Ms. Emma Mistiaen WB 30 Ms. Jacynter Omondi SPS 73 Mr. Iftikhar Malik WB 31 Mr. Enock Buses SPS 74 Ms. Polly Jones WB 32 Ms. Ann Wanjema SPS 75 Ms. Nadia Selim WB 33 Ms. Brenda Maina SPS 76 Ms. Judith Sandford WB 34 Ms. Rosemary Wang’ombe SPS 77 Ms. Giulia Parzani WB 35 Mr. Crispine Emadau SPS 78 Mr. David Gacheru WB 36 Mr. Richard Obiga SPS 79 Mr. Kevin Heraniah WB 37 Ms. Salvin Milka SPS 80 Ms. Lucie Muchekehu WB 38 Ms. Josephine Muriuki DSD 81 Ms. Aleme Tachbele WB 39 Ms. Winnie Mwasiaji DSD 82 Mr. David Gacheru WB 40 Ms. Emily Kimosop DSD 83 Ms. Nancy Gamusa WB 41 Mr. Paul Zawady Okinda DSD 84 Mr. Barry Maher WB 42 Ms. Charity Kiilu DSD 85 Mr. Peter Isabirye WB 43 Ms. Mary Mordecai DSD 8 Annex 2: NSNP Results Framework Target Values Unit of December 2017 December 2018 December 2019 PDO-Level Results Indicators Core DLI Baseline Remarks Measure Program Development Objective: To support the Republic of Kenya’s efforts to establish an effective National Safety Net Program for poor and vulnerable hous eholds. Net change in beneficiary household This indicator should be 1 monthly per adult equivalent □ □ Ksh n.a. 150 150 available March 2019. consumption expenditure Actual (as of Jan 2019) n/a Number of NSNP beneficiaries, by Million 2 × □ 1.65 4.04 4.13 4.28 sex2 beneficiaries Actual (as of Jan 2019) 4.523 Plan adopted for how all Completion of the roll- The recertification plan is four NSNP programs will out of the being finalized and expected System for recertification of NSNP 3 □ × n.a. n.a. maintain an up-to-date recertification plan in to be adopted by June 2019. beneficiaries is in place registry of beneficiaries at least 20 sub- through recertification counties Actual (as of Jan 2019) In process % of all payments are made on time Only HSNP payments were 4 to Payment Service Providers for □ × % 12 75 75 90 made on time transfer to Program Beneficiaries Actual (July 2018-Dec 2018) 7.6 Intermediate Results Area 1: Expanding cash transfer programs to promote more comprehensive and equitable coverage t the time of reporting, Number of households paid for by the approximately 56% of HSNP 5 □ □ Households 114,384 702,000 754,000 792,000 Government households are financed by GoK. Actual (as of Jan 2019) 1,234,2394 Intermediate Results Area 2: Strengthening program systems to ensure good governance 2 This will report on the total number of people benefitting from the four programs that constitute the NSNP. If this figure cannot be generated from the MIS, it will be calculated by multiplying the total number of households enrolled in the three programs managed by SAU x 5 members per household and x 7 members per household for households enrolled in the HSNP. The sex distribution for those households for which the MIS has complete information will be used to impute a figure for the entire caseload. 3 The OPCT has been expanded to become a universal cash transfer for anyone 70 years of age or older. This benefit is individually targeted and not poverty targeted. Hence, for the purposes of reporting on NSNP beneficiaries, individuals enrolled in the OPCT 70+ will be counted as 1 person rather than 5 members per household. 4 The OPCT has been expanded to become a universal cash transfer for anyone 70 years of age or older. Even though the benefit is individually targeted and not poverty targeted, for reporting purposes on this indicator, an individual enrolled in 70+ is considered a household paid for by Government. 9 Target Values Unit of December 2017 December 2018 December 2019 PDO-Level Results Indicators Core DLI Baseline Remarks Measure % of beneficiaries who know correct Indicator achieved, 6 program transfer amount for the □ □ % 56.3 60 65 70 according to PIBS II, program in which they are enrolled exceeding the target. Actual (as of Jan 2019) 86 % of beneficiaries for whom 7 payments are made electronically □ × % 40 90 90 90 using Two-Factor Authentication Actual (as of Jan 2019) 100 Beneficiary outreach strategy implemented in 10 counties5 Significant process of BOS Grievance and Case Management Beneficiary outreach Beneficiary outreach Design & implementation implementation. Expected to 8 mechanisms for the Cash Transfer □ × n.a n.a. strategy developed strategy implemented of G&CM system be finalized before the end of Programs are functional and adopted in at least 20 counties through MIS at county FY 18-19. and sub-county levels in at least 20 sub-counties Actual (as of Jan 2019) In process % Program beneficiaries who can 8.8 30 9 name two means of making a □ □ % 30 40 (15) (65) complaint Actual (as of Jan 2018) 30.4 Single Registry operational and 10 program MISs use the agreed □ × Yes n.a. Achieved standard for internal payroll controls Intermediate Results Area 3: Harmonizing cash transfer programs to increase the coherence of the safety net sector % of NSNP funding financed by the 11 □ □ % 41 91 94 96 Government Actual (as of Jan 2019) 96.7 Number of households per year paid No targets as this indicator will only be measured when the early warning Expected earliest end of 12 □ □ Households n.a. through the NSNP out of NDEF6 system triggers a response. FY19. NDEF not yet Actual (as of Jan 2019) operational Complementary Agreements signed with NSNP beneficiaries’ access to Services module in at least two partners 13 complementary social and productive □ × n.a. n.a SR is ready and providing relevant services is promoted formal data sharing complementary services 5 Within these 10 counties, the beneficiary outreach strategy must be implemented in at least 20 sub-counties as per the related DLR. 6 NDEF stands for National Drought Emergency Fund. 10 Target Values Unit of December 2017 December 2018 December 2019 PDO-Level Results Indicators Core DLI Baseline Remarks Measure protocols are to NSNP beneficiary available for use of households potential partners Actual (as of Jan 2019) Module in SR in process Previous (as of June 2018) Module in SR in process Implementation of Implementation of 70 Implementation of 100 Since the last report, an Fiduciary systems for NSNP have 14 □ × n.a. N/A 30 percent of agreed percent of agreed critical percent of agreed additional 33% has been been strengthened critical FM actions FM actions critical FM actions achieved Actual (as of Jan 2019) 74 % 11 Annex 3 – NSNP DLI Status Table N Disbursement Linked Disbursement Linked Results Total Allocated Disbursed Progress in DLIs o Indicator US$ m Credit (SDR m) (SDR m) 1. Additional households are a. Expansion Plan for the NSNP, informed by poverty and 10 6.8 6.8 Achieved enrolled in the NSNP vulnerability criteria adopted b. 235,000 new households enrolled in the NSNP 90 60 60 Achieved according to agreed Expansion Plan and paid for by GoK in comparison with July 2013 baseline c. Remaining 40,000 CT-OVC beneficiary households 8 5.9 5.9 Achieved (funded by DfID at December 2016) financed by the Government from July 2018 d. Modified NSNP Expansion Plan, including NEDI 3 2.2 2.2 Achieved expansion, adopted. e. 70,000 additional households in the NEDI counties 27 19.85 3.16 Partially achieved. 13K enrolled in the NSNP and paid for through the pending evidence Government’s budget. submission 2 System for recertification of a. Establishment of baseline. 5 3.34 3.34 Achieved NSNP beneficiaries is in place b. Plan adopted for how all four NSNP programs will 5 3.34 In progress. Expected by maintain an up-to-date registry of beneficiaries through June 2019 recertification b. Completion of the rollout plan of the recertification plan 10 6.66 Due December 2019 in at least 20 sub-counties 3 Single registry is fully a. Program MISs fully operational using agreed standards 15 10 10 Achieved operational with program MIS’s for internal payroll controls using agreed standards for b. Single Registry is fully operational with links to IPRS 10 6.7 6.7 Achieved internal payroll controls 4 Percent of NSNP payments a. 60 percent of NSNP payments made electronically 6 4 4 Achieved made electronically using two- using two-factor authentication factor authentication b. 90 percent of NSNP payments made electronically 9 6 6 Achieved using two-factor authentication 5 Percent of payments disbursed a. 75 percent of all payments disbursed to Payment 15 10 10 Achieved to Payment Service Providers Service Providers on time on time 6 Functional complaint and a. (i) Complaints and grievance mechanism is functional at 5 3.34 3.34 Achieved grievance mechanisms national level for all five cash transfer programs a. (ii) Complaints and grievance mechanism is functional 10 6.68 Overdue (December 2018). at all levels for all five cash transfer programs Expected September 2019 12 N Disbursement Linked Disbursement Linked Results Total Allocated Disbursed Progress in DLIs o Indicator US$ m Credit (SDR m) (SDR m) b. (i) Beneficiary Outreach Strategy developed and 3 2.01 2.01 Achieved adopted b. (ii) Beneficiary Outreach Strategy implemented in at 10 6.68 Overdue (December 2018). least 20 sub-counties Expected by June 2019 b. (iii) Beneficiary awareness of transfer amount and 7 4.68 Due December 2019. G&CM system Partially achieved pending submission. SDR 2.34 7 System for scaling up the A system for scaling up the NSNP as part of the national 20 13.35 Overdue (July 2017). NSNP as part of the national drought risk management system has been created with Expected next FY19/20. drought risk management agreed levels of GoK contingency financing system 8 Strategy for consolidating the a. Strategy for consolidating CT-OVC, OPCT, PWSD-CT 5 3.34 3.34 Achieved cash transfer programs and UFS-CT adopted b. Strategy for consolidating the CT-OVC, OPCT, and 10 6.68 6.68 Achieved PWSD-CT implemented 9 The GoK finances the HSNP in GOK finances the HSNP in line with budget and policy 5 3.34 3.34 Achieved line with budget and policy commitments commitments 10 NSNP beneficiaries’ access to a. Complementary Services module in SR is ready and 2 1.5 Overdue (December 2017). complementary social and formal data sharing protocols are available for the use of Expected by March 2019. productive services is potential partners Promoted b. Agreements signed with at least two partners providing 1 0.75 Overdue (December 2018). relevant complementary services to NSNP beneficiary Expected August 2019 households 11 Fiduciary systems for NSNP a. Implementation of 30 percent of agreed critical FM 2.7 1.98 2.7 Achieved have been strengthened actions b. Implementation of 70 percent of agreed critical FM 3.6 2.64 Achieved pending evidence actions submission. SDR 2.2 c. Implementation of 100 percent of agreed critical FM 2.7 1.98 Due December 2019 actions 13 Annex 4 – Key Findings from Field Visits Field visits were undertaken in four counties: Kisumu, Marsabit, Nakuru and Taita Taveta Counties. The field visits focused mainly on the following four key areas: • An introduction to the new KSEIP to county and sub-county based SDSP staff, County Commissioners and the County Government. • Roll-out of the new Payment Service Mechanism • Roll-out of the BOS strategy (in the county targeted for roll-out in 2018/19) • Ongoing functioning of G&CM system Individual reports from each of the field teams were prepared and an overall report, highlighting recommendations, was consolidated by SPS. Furthermore, key issues emerging from the field visit were discussed and fed into some of the key agreements. The paragraphs below highlight some of the key points highlighted by the mission: Introduction to KSEIP: SDSP and county governments welcomed the introduction of the KSEIP and expressed their commitment to work together to achieve agreed results. County Government staff further highlighted a number of existing efforts being implemented as part of the County Integrated Development Plans which could further complement the KEISP components related to economic inclusion and increased coverage by the NHIF. The upcoming context analysis work to support the economic inclusion intervention will further explore some of these initiatives. Roll-out of new Payment Service Mechanism. County and sub-county based SDSP staff and PSPs appreciated the new account-based payment solution and the roll-out of this new solution through the token- based migration strategy. The token-based approach offered greater efficiency as well as increased fairness and transparency. SDSP staff did report some incidences of inappropriate competitive behavior by some PSP staff which needed to be managed. Both SDSP and PSP staff recommended that any future migration exercise be planned in such a way as to allow a longer time in each county to complete the process. The rushed timeframe meant that migration barazas only took place at location level (not sub-location) which may have contributed to missed beneficiaries; and put smaller PSPs at a disadvantage as they could not attend multiple migration barazas on the same day. County and sub-county SDSP staff also expressed concern over missing tokens for some beneficiaries. Roll-out of the BOS strategy (in Nakuru County). SDSP staff in Nakuru county confirmed their receipt of BOS materials, participation in training and cascading of BOS to BWC staff. The final stage which comprises outreach to beneficiaries will take place in the coming months. More training of BWCs will be needed to support the outreach to beneficiaries, including the identification of appropriate forums to deliver messages (such as churches or barazas called in relation to non-NSNP actives). It is also necessary to find local champions to support sustainable implementation of the BOS. Ongoing functioning of G&CM system. Discussions with BWCs and Beneficiaries highlighted some good awareness and a few knowledge gaps. This highlighted the value of the BOS strategy as well as the importance of regular ongoing communication between SDSP HQ and SDSP county & sub-county, and between sub- county staff and BWCs and beneficiaries. This should allow the regular flow of key information including updates on any possible delays in payments, changes in NHIF coverage etc. Other: NHIF. A number of questions regarding expected support to NSNP beneficiaries through NHIF emerged during the field visit. Sub-county officers reported some apparent changes in the number of households being covered and also questioned what was happening regarding the anticipated roll-out of NHIF coverage to 70+. It was also noted that such questions are forwarded by beneficiaries to SDSP staff and there is a need to think through whether and how the NSNP G&CM procedures might include steps to record and refer any grievances. 14 Annex 5 – Criteria for Selection of Economic Inclusion Counties The following are the specific criteria used for each county: ✓ Kisumu: Geographical Diversity representing Western Kenya with higher prevalence of vulnerability to poverty (58%). Good capacity of county and sub-county officers; better accessibility; existence of other programs in the area; and presence of active self-help groups. ✓ Marsabit: Geographical Diversity representing Northern Kenya and ASAL region with higher incidence of poverty (64%) and vulnerability to poverty (86%). Good capacity of county and sub- county officers; existence of other programs in the area and presence of active self-help groups. With accessibility as a challenge, the Government feels that important lessons will be learned in this unique context. ✓ Makueni: Geographical Diversity representing Eastern Kenya and slightly lower poverty rates but higher vulnerability to poverty (48%), offering good opportunity to learn lessons for similar counties’ context. Good capacity of county and sub-county officers; better accessibility; existence of other programs in the area and presence of active self-help groups. ✓ Muranga: – Geographical Diversity representing Central Kenya and slightly lower poverty and vulnerability to poverty rates (30%) offering good opportunity to learn lessons for similar counties’ context. Good capacity of county and sub-county officers; better accessibility; existence of other programs in the area; and presence of active self-help groups. ✓ Taita Taveta: – Geographical Diversity representing the Coastal areas of Kenya with slightly higher vulnerability to poverty rates (38%), offering opportunity to learn lessons for similar counties’ context. Good capacity of county and sub-county officers; better accessibility; existence of other programs in the area; and the presence of active self-help groups. 15