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| >> AFR Regional Overview >> Kenya Overview | |||||||||
IntroductionKenya has historically been the most important U.S. development partner in east and southern Africa. Kenya is the dominant economy in the Greater Horn of Africa (GHA), with a gross domestic product (GDP) considerably larger than all GHA countries; it is the gateway to a regional market of over 180 million people; and it is the potential growth engine for the entire region. Kenya offers exceptional opportunities to advance US national interests. The most important US foreign policy interests are combating transnational threats to US national security, supporting democratization, promoting economic development, providing humanitarian assistance and fighting HIV/AIDS. USAID/Kenya's strategic objectives fully support USAID's three new priority areas of Economic Growth and Agriculture, Global Health, and Conflict Prevention and Developmental Relief. USAID's democracy and governance program contributes to U.S. national security by strengthening democracy, promoting good governance, and helping to reform the democratic process in Kenya. It specifically strengthens the ability of civil society organizations to effectively advocate for political reform, and supports efforts to make the electoral process more transparent. USAID also promotes broad-based economic development in Kenya by increasing agricultural commercialization and improving natural resource management. Economic policy reform and agricultural market liberalization create opportunities for American business, and sound environmental policies benefit U.S. global interests in preserving bio-diversity. USAID programs have effectively supported agricultural price decontrols, and directly contributed to the growth of micro-and small enterprises by 10% per year. Mission health programs combat HIV/AIDS, and have played a major role in the dramatic decline in Kenya's population growth rate-in turn establishing a basis for renewed economic growth and reducing pressure on Kenya's world-class natural resources. The Development ChallengeUSAID has a history of major successes with its programs in Kenya, and with a better policy environment, good governance, and limited drought, Kenya could achieve rapid growth on a sustainable basis. Civil society organizations (CSOs) are more active and stronger in demanding political and constitutional reforms, and the government now works more collaboratively with them to develop policies and reforms. USAID agriculture programs have led to greater agricultural liberalization, the development of high-yield seed varieties and more competitive agricultural markets. USAID support to communities living adjacent to national parks and reserves has resulted in greater community investment in nature-related business, and the communities increasingly consider wildlife an asset rather than a liability. Fertility rates have fallen dramatically, easing the pressures of population growth on Kenya's society, economy, and environment. Attitudes toward sexual and reproductive issues and behavior are changing, adding hope that transmission rates for HIV/AIDS will decline. However, the vast majority of Kenyans remain poor, and in spite of years of donor assistance many have a declining quality of life. About half of all Kenyan's live below the poverty line, and while urban poverty is growing the majority reside in rural areas and use a combination of on- and off-farm activities to make ends meet. The immediate development challenge is poverty reduction. USAID's strategy for agriculture and enterprise development will, therefore, continue to emphasize rural-based economic growth as the basis for addressing Kenya's poverty. To increase rural incomes, USAID focuses on increasing agricultural productivity to increase the profits of smallholder farmers and increasing marketed production. Since rural incomes are derived partly from off-farm micro and small enterprises, USAID will continue its work in microenterprise development. In more vulnerable areas, enhancing household food security and minimizing the impact of drought will decrease household expenditure on food, thereby increasing disposable incomes and use thereof for education and health care. USAID will also focus on improving natural resource management in targeted biodiverse areas, with an emphasis on communities living adjacent to national parks to improve their management and wise use of natural resources. Kenya's political system is characterized by personal rule, rather than the rule of law. This is reflected in the consolidation of power in the executive branch of government. One negative consequence of personal rule has been unchecked corruption. Corruption drains public coffers, reduces the budget available for public services, and makes service providers far less responsive to public demands than to directives from the top political leadership. Until there is a better balance of power among the institutions of governance, including civil society and the media, major improvement in anti-corruption, economic growth, and accountable government will not be realized. In spite of USAID achievements in the areas of health and population, major challenges remain. AIDS has become a tragedy of devastating proportions in Kenya. HIV prevalence among adults has risen from less than 5% in 1990 to over 13% in 2000. About 2 million adults and children are HIV-positive, almost a million children have been orphaned, and life expectancy has fallen to 52 years. The economy is severely affected, since infection rates are highest among young, productive members of society and HIV/AIDS cuts into the productivity and profitability of commercial firms. Linked to the AIDS pandemic, important family planning challenges such as increasing use of condoms, breast feeding and improved birth spacing remain at the core of USAID's work in the health sector. Important family planning challenges also remain. A quarter of married women in Kenya wish to stop childbearing or delay their next pregnancy but are not using family planning. Due to the high fertility of the early 1970s, large numbers of young people are entering their reproductive years. Child health has also suffered. Child mortality rates have worsened in the 1990s (largely due to the AIDS epidemic), immunization rates have dropped, and infectious diseases such as malaria have resurged, in part due to breakdowns in health care delivery systems. There remains, in short, a tremendous need for continued USAID investment in the health sector. Kenya's total debt is about $7.6 billion, including $5.0 billion in external debt. In March 2001, the United States rescheduled loans totaling $19.3 million. Other DonorsBilateral donors that complement the USAID program are Japan, France, Germany, Italy, Denmark, Sweden, Spain, Belgium and the United Kingdom. Multilateral donors and lenders include the World Bank, the International Monetary Fund, the European Union, and African Development Bank. Among the leading bilateral donors, the United States is ranked seventh. FY 2002 ProgramThe overarching goal of the USAID program is a democratic and economically prosperous Kenya. USAID's program focuses on helping Kenya deal with its most critical development constraints: good governance, poverty reduction, conservation of its biologically-diverse natural resources, reduction of population growth and HIV/AIDS. The USAID program in FY 2002 has four strategic objectives and one special objective. In the democracy and governance program during FY 2002, USAID will continue to support civil society organizations and selected government institutions. The goal is to support demand for sustainable reforms and improved governance in order to improve the balance of power among the institutions of governance. USAID's sustainable economic growth programs address microenterprise development and declining agricultural productivity, main causes of increasing rural poverty and economic decline. USAID focuses on increasing yields and promoting increased trade in maize, dairy and horticulture products in the high potential areas. In marginal areas, P.L. 480 Title II funds will support activities that increase incomes, initially through increased food security and by helping vulnerable communities mitigate the effects of drought. P.L. 480 Title II will also promote the transition of vulnerable communities from dependency on relief to participation in development. For example, World Vision has helped a community of 7,000 inhabitants increase its household food production through a gravity-fed micro-irrigation system that has enabled households to grow their own food. USAID support to micro and small enterprises (MSEs) will result in more profitable MSEs through better access to credit and savings services, more choice of financial products, and greater access to non-financial services. Businesses will become more efficient and profitable, while support to smallholder organizations will make them more efficient and responsive to their members. The natural resources management (NRM) program will focus on reversing the unsustainable use of natural resources by communities near the national parks and in key bio-diverse regions. USAID will strengthen the capacity of environmental NGOs to articulate their positions and to coordinate with others to change unsustainable patterns of resource use. The ability to plan and to mitigate conflict over use of resources will also be strengthened. In FY 2002 HIV/AIDS activities will continue to comprise the biggest area of emphasis. Realizing that HIV/AIDS is a multi-sectoral crisis and not just a health issue, USAID will work with the National AIDS Control Council to support policy change. Prevention activities will include support for behavioral change and condom promotion, and community and home-based care. Innovative new programs to generate income, provide small loans for families affected by AIDS, and address the problems of children under five will be piloted. Operations research will continue to investigate ways to prevent mother-to-child transmission and to improve the reproductive health of adolescents. In FY2001, the Mission is programming Displaced Children and Orphans Fund (DCOF) money for care and support programs within its HIV/AIDS programs. Under this activity, children from HIV/AIDS-affected families (including orphans) will benefit from home-based care and other programs. In FY 2002, USAID will implement new family planning activities with local NGOs and public sector authorities to improve the efficiency of service delivery, ensure community consensus, build NGO and public-sector capacity and improve financial and technical accountability. USAID's new service delivery program includes family planning integrated with HIV/AIDS and child survival services, at both the clinic and community levels. The quality of all services will be improved by training health care workers and by developing national and local training, supervision and logistics systems. In addition, USAID will continue to support the national immunization program and pilot activities in the management of illnesses that disproportionately kill children, especially malaria. USAID will also continue to strengthen the policy environment and help Kenya manage health sector resources. Increasing efficiency in the management of health sector resources will require improved management of the national cost-sharing program, joint GOK/donor planning, rationalized budgeting at the central and decentralized levels, and an increase in complementary donor financing. Finally, USAID will also continue to implement programs aimed at reducing the economic impact on Kenya of the August 7, 1998, bombing of the American Embassy, helping all of the Kenyan victims injured in the bombing to receive adequate medical care, and strengthen disaster response and preparedness programs. Activity Data Sheets
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