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USAID Information:
External Links:
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Kenya
The Development Challenge: Kenya is experiencing a unique historical moment. On December 27, 2002, Kenyan voters elected their first new president in 24 years. The new government has already made a clear break from the past by its policy actions, including the introduction of key legislation to address corruption and improve governance, support for free universal primary education, and working to accelerate the constitutional review process. To this end, the Government of Kenya (GOK) has completed financing agreements with the World Bank and the International Monetary Fund (IMF), which are encouraged by the government's commitment to the reform process. Yet, there is much to do. The GOK and its development partners (including USAID) are undertaking an ambitious agenda of reform, with a focus on the implementation of key measures to fight corruption and promote good governance, encourage economic recovery, and combat HIV/AIDS.
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Though frustrated by a history of poor policy decisions and lack of foreign direct investment, Kenya still has the largest and most diversified economy and the most developed infrastructure in the East Africa region. Kenya's gross domestic product grew at an annual average rate of 2.2% in the past decade---not sufficient to keep up with population growth. The World Bank, however, estimates that the country could grow by more than 6% per annum with the implementation of a serious reform program as outlined in the GOK's Economic Recovery Strategy. Kenya's external debt has been falling and is about $5.5 billion. Sound monetary policy has produced low inflation and a stable exchange rate. Kenya has also become a leader in the race to benefit from the U.S. African Growth and Opportunity Act (AGOA), and its garment industry is enjoying spectacular recovery. Factors such as efficiently run export processing zones, good air and sea transport links to Asia and the United States, and a skilled workforce are important attributes in attracting other businesses as the investment climate improves under the new government.
Besides needing to make progress on the goals of democratic transition and economic recovery, the country faces a number of additional challenges in the social sectors. The 2003 Demographic and Health Survey (DHS) shows that fertility increased over the past five years. This reverses a decade of outstanding progress in family planning. The Total Fertility Rate (TFR) in 2000-2002 was 4.9 children per woman, up from 4.7 in 1995-1997. The DHS also shows that after decades of improvement, child mortality rates increased by 28% from the late 1980s to the present. Of 1,000 births in Kenya, 114 children died before age five during the 1998-2002 period, up from 89 deaths per 1,000 births over the 1984-1988 period. The Kenyan educational system is also facing significant challenges, especially the high direct costs of schooling that have kept a significant proportion of the poor away from school. Another challenge is the low level of internal efficiency, as evidenced by the high drop out rate (5%-6%) and repetition rates (15%-16%) at primary levels. There are also regional and gender disparities, with the arid areas being the hardest hit. The new government, however, has introduced free primary education and substantially revised the educational curricula.
Kenya is a high priority country for the United States in terms of regional stability and the fight against terrorism. Other important U.S. foreign policy interests in Kenya include: supporting democratization, encouraging economic prosperity and combating 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 six 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, providing education support for children of marginalized populations, and promoting economic development through trade and investment.
HIV/AIDS prevention through positive behavior change, condom availability, blood transfusion safety, and preventing mother-to-child transmission is a program priority. The care and support for people living with HIV/AIDS will be expanded, including a pilot drug treatment program. Support for voluntary counseling and testing; treatment for tuberculosis (TB), malaria, and sexually transmitted infections (STIs); reproductive health; and child health programs also will be continued. The democracy and governance program focuses on increasing the independence of select government institutions; promoting more transparent and competitive electoral processes, and 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. The Mission utilizes P.L. 480 Title II resources 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.
Activities to improve the management of wildlife outside of protected areas, forest management and environmental governance, and integrated coastal management will all provide tangible benefits to local communities as well as preserve Kenya's wealth of natural resources. USAID will also implement a social mobilization campaign on education quality in North Eastern and Coast Provinces. USAID will fund a campaign to mobilize communities and schools to raise issues and foster dialogue regarding the value of education and educational quality. This will empower communities to accept responsibility for influencing, implementing and achieving participation within the educational system and for enhancing educational quality. Activities will increase both the demand for quality education and the capacity of the education system to meet that demand. Finally, USAID will also fund a trade and investment program to assist Kenya in implementing bilateral, regional and multilateral trade commitments and to support the GOK's efforts to expand the economy through trade.
Kenya is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR). All proposed HIV/AIDS activities are being integrated into PEPFAR and are subject to the approval of the U.S. Global AIDS Coordinator. Additional funding from the Global HIV/AIDS Initiative account is anticipated for both FY 2004 and FY 2005.
Other Program Elements: USAID/Washington funding supports targeted evaluations in HIV/AIDS and operations research in community and reproductive health. Other central funds provide scholarships for girls and increase access to internet and other electronic communications. Finally, the Mission is programming Anti-Corruption Initiative funds to support the GOK's efforts to increase transparency and accountability throughout the public sector.
Other Donors: Donor coordination is generally good with various donors taking the lead in coordinating assistance to different sectors. The United States is the largest bilateral donor, followed by the United Kingdom (UK), Japan, Sweden, Federal Republic of Germany, and France. The United States is the leading donor in the democracy and governance sector. 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. The World Bank works closely with USAID to provide support to Kenya's agricultural research institutes, while the EU, World Bank, African Development Bank, and USAID support livestock development. The leading donors in the micro- and small enterprise sector are the United States, the UK, the EU, the Netherlands, Denmark, and the United Nations Development Program. In the natural resources management sector, the major donors are the United States, the Netherlands, the UK, Japan, Sweden, Belgium, Finland, Germany, Denmark, the EU, the World Bank, and the United Nations Environment Program. The United States is the leading bilateral donor to Kenya's population and health sector. USAID and DFID both support work in HIV/AIDS, family planning, and malaria. Finally, USAID has recently joined the Sector Working Group on Education which includes DFID, the World Bank, Canada, Japan, and the United Nations organizations.
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