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USAID Information:
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Kenya
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| HIV/AIDS, Population, and Health |
615-003 |
34,877 |
12,600 |
12,300 |
| Natural Resources Management |
615-005 |
3,967 |
6,095 |
5,000 |
| Democracy and Governance |
615-006 | 6,436 |
6,728 |
7,673 |
| Increased Rural Household Incomes |
615-007 | 6,637 |
9,073 |
10,171 |
| Basic Education |
615-008 |
2,914 |
2,814 |
1,500 |
| Total (in thousands of dollars) |
54,831 |
37,310 |
36,644 |
Excludes P.L. 480. See Program Annex.
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The Development Challenge: Kenya, by most measures, continues to face a daunting array of developmental constraints. Sustained economic growth and the alleviation of poverty are still significant challenges in Kenya. The Government of Kenya (GOK) will have to carefully reallocate public spending to support economic growth and poverty reduction, while striving to eliminate systemic obstacles to the full participation of women and other groups in the economy and in the political system. Areas of concern include the Kenyan population's elevated expectation of the government's ability to deliver results linked to election promises; investor and donor community hopes for the institutionalization of critical structural reforms in the financial sector, especially for privatization and public sector reform; and the need to strengthen human resource development and to build institutional capacity. In 2004, Kenya was selected as a Millennium Challenge Account (MCA) Threshold Program-eligible country. Threshold countries are countries that do not qualify for MCA assistance but have demonstrated a commitment to meeting the eligibility requirements for MCA assistance in the future. These countries will be invited to submit proposals for funding to improve their performance on the Millennium Challenge Corporation (MCC) selection criteria. The GOK is preparing a concept paper for consideration by the MCC. In coordination with USAID, MCC will review the proposals.
The current government is made up of a fragile coalition of disparate parties, which have not yet been able to agree on a new constitution. Parliament, where all these parties are represented, is one arena where these differences are being played out in public. Unless ruling elites can agree on the most contentious issues, including how to share power under a new constitution, there will be a continuing delay in passing critical pieces of legislation and in the implementation of the legal and judicial reforms that are essential to the long-term stability and growth of Kenya. Much still remains to be done to strengthen democratic institutions and the rule of law in Kenya, but a foundation now exists to tackle these perennial weaknesses. Huge investments are needed to repair crumbling infrastructure and restore effective delivery of social services. Increased basic poverty and limited opportunities for generating income have contributed to the majority of rural Kenyans becoming exceedingly dependent on natural resources. As a result, Kenya's wildlife, forests, water and marine resources are being overexploited, resulting in degradation of the environment.
The country also faces a number of significant social challenges. More than half of the population is poor, and per capita income has declined every year from $378 in 1992 to $360 in 2003. HIV prevalence is declining, due both to fewer new infections and to increasing AIDS-related deaths. The latest modeling, using demographic health survey (DHS) and surveillance data, suggests that prevalence among adults 15-49 years old is now 7%, but there are still about 1,400,000 Kenyans infected with HIV, 140,000 adults who die from AIDS every year, and 1,700,000 orphans, many of whom lost parents to AIDS. HIV/AIDS prevention through positive behavior change, including the promotion of "ABC" (Abstinence, Be faithful, and correct and consistent Condom use), condom availability, blood transfusion safety, and preventing mother-to-child transmission is a program priority. The 2003 DHS survey, released in 2004, shows that fertility increased over the past five years, the first reversal in Kenya's successful family planning program in which USAID is the lead donor agency. Child mortality rates did not improve significantly. In 1999, 116/1000 children died before the age of five, while in 2003, the Child Mortality Rate was 114/1000. The infant mortality rate was constant at 77/1000. Maternal mortality remained high, while antenatal care coverage and medical assistance at delivery did not improve. The low levels of internal efficiency in Kenya's education system is evidenced by drop-out rates of between 5-6% and repetition rates of between 15-16% at primary school levels. The nation also continues to struggle with significant regional disparities in the rate of growth and investment, as well as with a prevalence of gender inequality in the distribution of income and wealth.
Kenya's total external debt in 2002 was about $5.1 billion, including arrears, or 49% of the gross domestic product (GDP). Of this, 57.5% was owed to official multilateral creditors, while debt to bilateral and commercial creditors accounted for 32.2% and 8.5%, respectively. During the last decade, the GOK continued to service its external debt, bringing down debt service payments from 34% of the cost of export of goods and services in 1990 to 14% in 2001.
USAID's program contributes directly to the achievement of U. S. Government (USG) interests in Kenya. U.S. goals support the processes of political and economic reform, assist in the fight against corruption, protect Kenya's natural resource base, contribute to countering the terrorist threat in Kenya, and help combat the health crisis, especially HIV/AIDS.
The USAID Program: The overarching goal of USAID assistance is to build a democratic and economically prosperous Kenya. This goal is being addressed through five objectives: improving the balance of power among the institutions of governance; promoting sustainable use of natural resources; improving rural incomes by increasing agricultural and rural enterprise opportunities; improving health conditions; and providing education support for children of marginalized populations. FY 2005 funds will be used to implement ongoing programs. Activities to improve the balance of power among various branches of government will focus on increasing the independence of select government institutions in promoting more transparent and competitive electoral processes; increasing the effectiveness of civil society organizations in lobbying for reforms; monitoring government activities; and preventing and resolving conflicts. Growth of rural incomes will be encouraged through improvements in smallholder agricultural productivity (including the use of biotechnology approaches), market access, and strengthening the private sector's abilities to manage the production and distribution of key commodities. P.L. 480 Title II resources are used to improve food security and increase incomes in arid and semi-arid areas by increasing agriculture and livestock production and marketing opportunities, as well as promoting sustainable natural resources management practices. The natural resources management program will focus on the management of wildlife outside of protected areas, forests and environmental management, and integrated coastal management. USAID will use FY 2005 funds to implement an education program, focusing on improving historically marginalized populations' access to quality education.
Other Program Elements: USAID central funds support operations research in HIV/AIDS and community and reproductive health. Other central funds provide scholarships for girls and increased access to internet and other electronic communications. Anti-Corruption Initiative funds are used to support the GOK's efforts to increase transparency and accountability throughout the public sector. USDA resources contribute to the World Food Program's School Feeding Program, which is co-located with the USAID Education Program in marginalized areas.
Kenya is a focus country under the President's Emergency Plan for AIDS Relief. FY 2005 funding will be provided from the Global HIV/AIDS Initiative under the policy direction of the U.S. Global AIDS coordinator. The FY 2006 HIV/AIDS request for this country is contained in the Global HIV/AIDS Initiative account justification. For further details please see the Department of State FY 2006 Congressional Budget Justification.
Other Donors: As the leading bilateral donor in Kenya, the United States chairs several donor meetings which meet once a month. Overall development assistance to Kenya totals about $700 million per year. The United States and the United Kingdom (UK) are Kenya's first and second largest bilateral donors, respectively. The United States is the leading donor in democracy and governance. Other donors are the UK's Department for International Development (DFID), European Union (EU), Netherlands, Denmark, Sweden, Germany, and Canada. The World Bank, EU, DFID and USAID work together to support the GOK in developing appropriate policies and macroeconomic and fiscal expenditure frameworks. USAID, the EU, and the World Bank have been instrumental in encouraging the development of an enabling policy environment for agriculture and natural resources management. The World Bank works closely with USAID to support Kenya's agricultural research institutes, while the EU, World Bank, African Development Bank, and USAID support livestock development. In natural resources management, major donors are the United States, the Netherlands, UK, Japan, Sweden, Belgium, Finland, Germany, Denmark, EU, World Bank, and the United Nations Environment Program. The United States is the leading bilateral donor in population and health. USAID and DFID support work in HIV/AIDS, family planning, and malaria. USAID is a member of the Sector Working Group on Education, which includes DFID, World Bank, Canada, Japan, and United Nations organizations.
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