AIDE MEMOIRE KENYA CASH TRANSFER PROGRAMME FOR ORPHANS AND VULNERABLE CHILDREN MID-TERM REVIEW MARCH 2012

Transcription

1 Public Disclosure Authorized Apri111,2012 ADE MEMORE KENYA CASH TRANSFER PROGRAMME FOR ORPHANS AND VULNERABLE CHLDREN MD-TERM REVEW MARCH 2012 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized. NTRODUCTON 1. A Mid-Tenn Review (MTR) for the Cash Transfer for Orphans and Vulnerable Children (CT-OVC) Programme was undertaken between March 12 and 23, The primary objective of the Review was to assess progress towards meeting the programme's development objectives. The MTR also considered the strategic direction of the Programme and the broader social protection policy context, specifically progress with the draft National Social Protection Policy (NSPP) and plans for developing and fmalising the national Safety Net Strategy. The Review also marked the start of a strategic dialogue between Government and development partners in relation to the coordination, harmonisation and consolidation of cash transfer programmes.. MD-TERM REVEW MSSON PROCESS 2. The discussions held during the MTR were based on a Programme Status Report prepared by the Department of Children'S Services (DCS) in the Ministry of Gender, Children and Social Development (MGCSD). The report is annexed to this Aide Memoire (Annex 1). Participants in these discussions included key stakeholders in Government, particularly from the MGCSD, and development partners, including DFD, SDA, UNCEF, and World Bank. The MTR also included workshops on the draft NSPP, sectoral coordination and targeting of cash transfers involving a wide range of stakeholders from government, development partners and civil society. A list of participants is in Annex The Mission concluded with a wrap-up meeting with the Pennanent Secretary of the MGCSD and the External Resources Department (ERD) of the Ministry of Finance. The Mission would like to thank Dr. James Nyikal, Pennanent Secretary, MGCSD, for his guidance to the Mission. This Aide Memoire outlines the findings and agreements reached during the MTR Mission. A detailed Action Plan is presented in Annex 3.. DSCLOSURE 4. The Government and development partners confinned their understanding of, and agreement to, publicly disclose this Aide Memoire. The disclosure of this Aide Memoire was discussed and agreed by the Pennanent Secretary, MGCSD, at a wrap-up meeting that took place on March 23,2012. V. PROGRAMME MPLEMENTATON PROGRESS N FY 2011/12 5. Progress towards meeting the programme development objective. The Programme increased coverage from 82,371 households in Fiscal Year (FY) 2009/10 to 124,691 households in FY As of February 2012, there were 134,431 households enrolled in the Programme and receiving regular payments (see Figure 1 below). Projections are that by June 2012 coverage will increase further to 156,000 households. Once achieved, the Programme will have exceeded its target to have enrolled 150,000 households by this date.

2 Aide i.,femoire and Vulnerable Children Mid-term Review Figure 1: No. of households enrolled in the CT-OVC Programme, by source ofsupport (FY 2004/5-FY ) 160, , ~ 120, , 100, , i 80, , , , """ 2004/ / / / / / GoK Support 1i' UNCEFDFD Support World Bank Support Source: Programme administrative data 6. Financing. ncreasing financing to the Programme has underpinned this expansion in coverage. As Table 1 shows, financing to the Programme has risen significantly since its inception in FY2004/05. Financing has increased from Ksh 50 million in FY 2004/05 to Ksh 3.5 billion in the FY2011/12. At the same time, sources of financing to the Programme have also expanded. Notes: From FY 2005/ these figures include financing from DflD channelled through UNCEF. 2SDA also finances the Programme, providing financing through UNCEF. 3Based on budget estimates for the Fiscal Year Source: Programme administrative data 7. Programme impact. The Mission discussed the preliminary findings from the latest round ( ) of a quasi-experimental panel survey implemented by the University of North Carolina (UNC) and the Transfer Project. 1 The results reaffirm the findings from the panel survey and show exciting fmdings in areas where impact had not previously been measured. Some of the preliminary results are as follows. The project continues to have a significant impact on consumption, as would be expected, and households' use programme transfers primarily for food and health related spending. There has been a significant increase in spending on meat, fish and dairy products. There has also been a modest impact on household productive assets (with a 20% increase in poultry ownership) and a significant reduction of on-farm child labour. There is also evidence that older and/or chronically ill beneficiaries may be working less in casual wage employment and more on their own farms. With regard to education, there is a strong positive impact of the CT-OVC Programme on primary school children who face higher 'prices'. Among The Transfer Project is joint initiative of UNCEF, the University of North Carolina and Save the Children UK and aims to enhance an understanding across Sub-Saharan Africa ofthe effectiveness of social cash transfer programmes (SCTs) in improving the lives ofpoor and vulnerable children. 2

3 Aide Memoire and Vulnerable Children Mid-term Review households living over 2 kilometres from a primary school, children in households participating in the Programme are 19 percentage points more likely to be enrolled and are 0.18 grades less behind in terms of grade for age than children in control households. There continues to be a significant positive impact of the Programme on enrolment for secondary school age children (by 7.8 percentage points). 8. The study for the first time evaluated impacts of the Programme on adolescent social behaviours that can increase their vulnerability to HV and on psychosocial status. The findings show that programme beneficiaries aged between years were 7 percentage points less likely to have had sex (indicating a postponement of sexual debut) as well as significantly less likely to have unprotected sex. n terms of psychosocial status, the research shows that the Programme significantly reduces depressive symptoms and that these effects are stronger for age groups. For the first time the study also found impacts on young child (0-5 years old) health. There was a significant reduction in diarrhoea for kids aged 3-5 (by 9.5 percentage points) and a significant increase in those seeking care if they had diarrhoea (by 15 percentage points). There was a 12 percentage point increase in measles vaccination and a 10 percentage point increase in those seeking preventative health care. Since these children are almost all new household members, this suggests an important inter-generational impact of the Programme. 9. Overall, it is noted that while impacts in some areas are impressive, they continue to be much higher for small households as compared with larger ones. This highlights the need to revisit the decision to provide a flat programme transfer irrespective of household size. Finally, the Mission reviewed preliminary work on Social Accounting Matrix (SAM) modelling of the local economic multiplier effects of the CT -OVC Programme. While this work is still being finalized, it indicates that there are significant additional effects of the Programme on the local economy, beyond the immediate impacts on programme beneficiaries, as the Programme stimulates demand for locally produced goods and services. Kenya is only one of two countries where the local economy impact of a cash transfer project has been modelled in this way. 10. Programme implementation. The overall assessment of the Mission is that performance is satisfactory and the Programme is on track to meet its development objectives. See Annex 4 for an assessment of progress towards the World Bank's results indicators. As the Programme has expanded, a number of measures have been put in place to strengthen its effectiveness and efficiency. 11. A citizen service charter, which lists the rights and responsibilities of the Programme stakeholders and the various channels through which complaints may be lodged, has been produced and was disseminated to 60 District Children's Officers (DCOs) where the Programme is operating for onward distribution to beneficiaries. A review of the citizen service charter distribution is ongoing after which more copies will be printed and distributed to all 69 programme districts. 12. The Programme has a grievance and appeal system, with internal and external components. However, there is a need to integrate the two systems so as to provide a consolidated account of the complaints and grievances received and the actions taken. External complaints reports show that there were few complaints and grievances in 2011 (only 16 recorded), the majority of which related to cash payments at the district treasury. The Secretariat indicated that between November 2011 and March 2012, 32 complaints were received and addressed through the internal complaints system. However, this low level of complaints can largely be attributed to the 3

4 Aide Memoire and Vulnerable Children Mid-term Review fact that the citizen service charter was distributed in October and November 2011, suggesting that community members were not aware of the external grievance and appeals system. Between January and February 2012, 15 complaints were received and addressed, suggesting that the distribution ofthe citizen service charter has improved understanding of this system. 13. Spot checks are undertaken by an independent firm to assess the extent to which implementation conforms to the Programme Operations Manual (OM). The firm samples three districts each quarter. The report for the quarter July-September 2011 assessed general perceptions of the Programme and knowledge and understanding of programme eligibility, payments, complaints and grievance, and the update processes. The analysis found that over 90 percent of the respondents in each of the three districts agree that the Programme helps households avert suffering and keeps children in school, which shows a general positive perception of the Programme in these areas. The Spot Check reported that, among the communities surveyed, understanding of programme eligibility, registration and payment processes was high, which suggests that these are being implemented according to the OM. For example, over 90 percent of respondents reported that they understood the programme's objectives and eligibility criteria, although there was some variation across districts and different aspects of the programme. n contrast, the results of the Spot Check suggest that the updates and complaints processes were not performing as well. Among households surveyed, between 36 percent (in Thika) and 13 percent (in Mwingi) were aware that they could file a complaint. Even among households that were aware of the appeals and grievances system, few understood how it works. 14. Previous Joint Review and mplementation Support (JRS) Missions had been informed how some Location OVC Committees (LOCs) in some areas were extorting money from beneficiaries. To address this problem, the Programme has changed the role of the LOCs, limiting their oversight function to targeting only, and has established a new structure, the Beneficiary Welfare Committees (BWCs). The BWCs were established to support programme implementation, particularly around mobilisation for payment. Where CT-OVC and HSNP operate in the same Districts, such as the ASALs, it is important that the roles and distinction of these community based institutions is clearly communicated to beneficiaries of the respective programmes and government stakeholders. Guidelines for these committee structures have been developed and establishment of these committees in all programme locations is in progress (See Section V for a more detailed assessment ofthe status ofthese various programme structures). 15. Regular audits and Financial Management (FM) reviews are undertaken by the Programme. An n-depth Financial Audit covering the period January June 2011 was carried out over a 4 month period (June- September 2011) and fmalized at the end of2011. DFD provided technical assistance through an external consulting firm called, RSN Tenon to Kenya's nternal Audit Department (lad). n November 2011, a comprehensive internal audit for the period ended June 30, 2011, covering all 47 counties was completed. An FM review is currently being undertaken by the World Bank and the report is expected to be finalized shortly. While some progress has been made in establishing programme systems and structures, the Mission noted that further work is required to ensure that these systems function effectively (See Section V for a more detailed assessment of the status of financial management issues). 16. Overall programme efficiency has improved as the Programme has expanded, as evidenced by the percentage of resources spent on operating costs. Overheads amounted to 57 percent of programme financing in the first three years of the Programme. Currently, this figure has been reduced to 19 percent of the budget, which is consistent with international benchmarks for this 4

5 Aide Memoire Kenya Cash Transfer Programme for Orphans and Vulnerable Children Mid-term Review type of programme. Nevertheless, it is noted that targeting and enrolment continues to be a lengthy and relatively inefficient paper-based process and the real operating costs are yet to be determined. This has limited the Programme's ability to consolidate the programmes objectives in some areas and scale-up rapidly in others. While the Programme has managed to achieve its targets, this has taken longer than would have been desired. These limitations highlight the need for innovation in some areas of the system should the Programme want to consolidate or further increase coverage and to scale-up rapidly in response to sudden short-term shocks and to support other desirable development impacts. v. STRATEGC SSUES 17. National social protection policy. The Mission learned that the draft NSSP was finalized in November 2011 and has been co-signed by relevant ministries involved in the delivery of social protection programmes, including MGCSD, Labour, Public Health and Sanitation and Planning, and National Development and Vision The draft Policy is awaiting the signature of the Minister for Finance, before it is submitted to Cabinet for consideration of approval. Once the Policy is approved, implementation strategies, in particular for the social assistance component, and a parliamentary bill for Social Protection will need to be developed. The Mission agreed that the drafting of these documents should be spearheaded by the Social Protection Secretariat, with support from development partners. n order to take this forward a Social Assistance Working Group should be established by the Permanent Secretary. The TOR for this group will need to be carefully considered and developed by the SP Secretariat. The Policy identifies key areas, such as a focus on safety nets, which will have strategic implications for cash transfer programmes in general and for the CT-OVC Programme specifically. The Mission considered some of these implications as discussed below. 18. Programme scale-up options. The CT -OVC Programme will achieve its target of enrolling and paying 150,000 households (or 50 percent of extremely poor OVCs) through various payment systems in the 69 old districts by June Meanwhile, other cash transfer programmes managed by the MGCSD are expanding in terms of both geographic coverage and beneficiary numbers. The second phase of the HSNP will see an increase in beneficiary coverage to 150,000 households in northern Kenya with 350,000 households enrolled and registered in the programme. The Older Persons Cash Transfer Programme (OPCT) has enrolled 46,000 households, the programme for Persons with Severe Disabilities (PWD), 14,000 households and the Urban Food Subsidy 10,210 households. Representatives of the various programmes agreed that there is need for programme-specific scale-up and consolidation scenarios and budget projections to ensure that the expansion and scale-up of other cash transfer programmes is taken into consideration to avoid overlap and duplication. 19. The Mission further agreed that the Social Protection Secretariat should lead the process by developing a Terms of Reference (TOR) with the aim of establishing a cash transfer working group consisting of representatives of the various programme secretariats and development partners. The working group's task would be to prepare scale-up plans for the various programmes. Once developed, these scale-up plans will inform the preparation of a medium-term expenditure framework (MTEF). The working group will draw on technical experts and refer to relevant analysis as needed. The Secretariat will draft the TOR by April 30, The working group will be established and mandated by the Permanent Secretaries, MGCSD, in consultation with the Permanent Secretary, Ministry of Northern Kenya and other Arid Lands, by June 30, 5

6 _ Aide Memoire Kenya Cash Transfer Programme for Orphans and Vulnerable Children Mid-term Review The working group will then present initial options and scenarios for coordinated scale-up to the National Steering Committee by August 30, Targeting of cash transfer programmes. During a workshop discussion on the targeting processes currently used by cash transfer programmes, participants agreed that further and more detailed analysis of targeting across the various programmes should be undertaken. This analysis would focus on the effectiveness of different methods in identifying eligible households, their relative cost-effectiveness, and the political economy of targeting, including social and opportunity costs, among other factors. The findings of this analysis will inform decisions on how to strengthen, rationalise and harmonise existing targeting methods. The Mission also noted that, in keeping with efforts to harmonise institutional mechanisms and information management, CT programmes, in the mid-term, should consider the possibility of develop common targeting methods where feasible and appropriate relative to these programmes areas of operation. t was agreed that these steps would provide a foundation for moving towards a harmonized national transfer mechanism. The Mission agreed that the targeting analysis and recommendations discussed here should be undertaken by the cash transfer working group mentioned in paragraph 19 above. 21. Building coordination with other cash transfer programmes. The Mission recognized that important measures had been taken to build coordinated delivery mechanisms among cash transfer programmes, most notably the work to develop the concept of a Single Registry. The Expert Working Group on the Single Registry has developed guidelines for the development of a future MS, specifications for a single registry, and a TOR to procure services for this work. The Mission agreed that the guidelines should be approved by the Permanent Secretary, MGCSD. Once approved, the guidelines would then be published and disseminated by the SP Secretariat, with support from the World Bank, by May 31, The Mission further agreed that DFD will procure the services of a consultant to (i) upgrade and modify the HSNP MS for the use of other cash transfer programmes; and, (ii) complete the design of the Single Registry. This work will be undertaken under the guidance of the Expert Working Group. The consultant will be recruited by April 15, nstitutional arrangements for cash transfers. The Mission further noted that, as part of the work to define scale up and harmonisation (paragraph 19 and 20 above), the SP Secretariat will recruit a consultant to review the institutional arrangements for cash transfers and safety nets and present scenarios for strengthening, harmonisation, coordinating and consolidating these institutional mechanisms. The TOR for this function will be disseminated to development partners for their inputs. The consultant, to be hired by April 30, 2012, with support from the World Bank, will also be expected to consult widely amongst key ministries involved in delivering safety nets, other government institutions and development partners. The consultant will share the findings of this review in the form of a discussion paper to the cash transfer working group and the SP Secretariat, by June 30, The Mission learned that there continue to be capacity concerns in the SP Secretariat. n order to support the processes noted above effectively, the SP Secretariat capacity will need to be rationalised and enhanced. An SP Advisor will need to be recruited. Moreover, the role of the Secretariat in relation to the other secretariats in the MGCSD (CT-OVC, OPCT) will need to be defined, in order to provide an efficiency delivery structure for cash transfer programmes in the Ministry. The Mission agreed that the consultancy discussed in paragraph 22 will contribute to this discussion. n order to provide continuous guidance and oversight to the work of the working 6

7 Aide Memoire and Vulnerable Children Mid-term Review groups discussed in this section, the Mission was infonned that a meeting of the National Steering Committee will be convened by May 30, V. OPERATONAL SSUES 24. Roll-out of the new payment service provider. A contract between Equity Bank and the Government was signed in December 2011 for Equity Bank to act as a Payment Service Provider (PSP) to the Programme. Subsequent to this, a working committee was established to oversee the roll-out of Equity Bank's services and to design a pilot phase, which included developing community mobilisation and communication plans. The phased implementation plan will initially enrol 2,600 beneficiaries in Nairobi into the Equity Bank PSP, after which the remaining 53,216 beneficiaries included under the Equity contract will be enrolled. This process will be completed by December The World Bank has contracted the Agency for Development Research (ADR) to support the OVC Secretariat to ensure that the biometric enrolment is implemented smoothly and to build the capacity of the Secretariat to undertake this function in the future. The intention is to make the first payments to beneficiaries in Nairobi using biometric smartcards in April The Mission confinned the existing agreement that the Government's contract with Equity Bank will include beneficiaries in both World Bank- and DFD-supported districts. t was agreed that approximately 30,000 beneficiaries in DFD-supported districts would be included under the current contract with Equity Bank. The Equity Bank transaction fee for these beneficiaries, as specified in the contract, will be paid by the Government from DFD financing. This means that, by December 2012, the World Bank will still need to transition 30,000 World Bank-supported households to the Equity Bank PSP. Subject to satisfactory perfonnance of Equity Bank, the intention of Government is to extend the contract with Equity Bank to cover these additional beneficiaries. At this time, subject to satisfactory perfonnance, DFD will finance a second contract with ADR, or a suitable bio-metric data gathering agency, for the enrolment of the remaining 3,500 DFD supported and 30,000 World Bank-financed beneficiaries. Concurrently, the Government will also consider further expansion of the contract with Equity Bank to the remaining programme beneficiaries. 26. The Mission agreed to DFD's request for additional mechanisms to be put in place by April 2012 to periodically monitor the phase 1 implementation of the new Payment Service Provider over the course of the next twelve months (March 2013). DFD will contract an independent agency through DFD's procurement mechanism to support the monitoring arrangement. 27. The Mission discussed how, for the PSP implementation to function optimally, there is need to develop time-bound Service Level Agreements (SLAs) on case management. Equity Bank and ADR have drafted SLAs as part of their inception reports, which are under review by the Secretariat. Because the pilot is being implemented, the Mission noted that lessons from the pilot may infonn the revision of these SLAs. Once revised, the SLAs should be included in the OM. The Mission further noted that lessons can be learned from the experience ofthe HSNP, which has been using Equity Bank as a PSP since t was agreed that opportunities to share experiences between the CT-OVC and the HSNP Secretariats would be sought. The Mission emphasized the need to learn lessons from the pilot phase currently being implemented and to document these lessons. t was agreed that a forum would be organized in May 31, 2012, to focus on lessons 7

8 Aide Memoire Kenya Cash Transfer Programme for Orphans and Vulnerable Children Mid~!!!!!!.!!e_vl_ ew_' learned from the initial enrolment and carding processes. n early July, a second forum reviewing the payment and reconciliation processes will be held. A number of districts where the coresponsibilities pilot is being implemented have not been included in the initial 19 districts, covering 53,216 beneficiaries, to be transitioned to the new PSP. This is because of the need to have baseline data collected at the same time as the initial payments are being made. n order to avoid jeopardising the quality of the impact evaluation baseline, these co-responsibilities districts would be initially paid through PCK. 28. Beneficiary welfare committees. The Programme has, to date, established BWCs in 20 districts. The Programme intends to establish BWCs in 25 and 23 districts in the second and third phases, respectively. The Mission noted that some DCOs are experiencing challenges related to implementing this new structure, including a lack of cooperation from some LOC members and the extensive time it takes to establish BWCs in large districts where the DCOs have to travel long distances between locations. Because training of BWC members was not factored into the current FY budget, the BWCs will not be trained until FY 2012/2013. This means that, while a number of committees have been established, they will not be functioning effectively until they are equipped to do so through a programme of training that will only start in the next FY. t was agreed that a Training Plan for the BWCs would be developed and agreed by the Technical Working Group (TWG) prior to the start of the next FY. The Mission noted that some components of the approved BWC TORs particularly on payments had not yet been implemented. Currently BWCs do not receive any allowance. The Mission agreed that an analysis will be undertaken on the appropriate levels of allowances based on sustainability where government funding is concerned, and the possibility ofjoint programme financing for the payment of these committees. 29. Complaints and grievance mechanisms. As noted in paragraph 11, the Programme has developed both internal and external complaints handling systems. The external system is managed by an independent firm. The Mission learned that the contract for this firm expires in June 30, 2012, and the DCS indicated that the procurement of a firm to undertake this function in the long term will be completed early in the next FY. The Mission therefore proposed that the current firm's contract would, subject to agreement, be extended to September 30, The Mission also agreed that the procurement of the firm to undertake long-term complaints and grievance management should be expedited. The internal complaints and grievance function is managed by a CT-OVC Officer, who reports to the Anti-Corruption Committee consisting of Officers from within the Secretariat. The Mission learned that some complaints are received and addressed through these mechanisms, but that the internal and external functions are not integrated in the MS. Although a service charter was delivered to the districts and 3 phone lines are in place, the Mission agreed that further communication strategies (new and adapted materials, trainings etc.) should be developed to ensure that beneficiaries know their rights and are aware of existing channels for communicating their grievances. The Mission further agreed that a document that explains the purpose, functions, activities and different roles of the external and internal mechanism is important for implementing both systems. n addition, it was agreed that the Secretariat would develop a protocol for managing complaints and grievances. This protocol will guide the process for receiving, resolving and filing grievances received through both the internal and external grievance systems. A draft of this protocol will be produced and shared with the TWG by May 30, As noted above, the MS has the capability to store this information and produce regular reports on complaints and grievances. The Mission agreed that the M&E team will be provided 8

9 Aide and Vulnerable Children Mid-term Review access to the complaints module in the MS, trained in its use and begins loading existing complaints records into the MS from April 30, The Mission further agreed that future complaints data from both the external and internal systems are regularly collected and uploaded into the MS. To further strengthen the complaints function, it was agreed that there would be systematic follow-up with DCOs to establish progress with the distribution of the citizen service charters. 31. Co-responsibilities pilot. The Mission recalled that during the last JRS Mission, revised co-responsibilities pilot guidelines had been reviewed and approved. The Secretariat was tasked with refining these guidelines and developing a roll-out plan, which has now been completed. A firm to support the data collection and management, recruitment of enumerators and training of Secretariat personnel was hired. The firm has submitted an inception report, which the Mission agreed should be reviewed by the Technical Working Group and discussed by April 5, Given that this firm is in place, the new PSP is beginning payments, and the 2nd impact evaluation baseline survey is scheduled for April-May 2012, the Mission agreed that subject to approval of the revised design concept by the CT-OVC Technical Working Group the proposal for the firm to deploy to the field in early April to establish systems and structures and recruit enumerators was appropriate. Concurrently, the Secretariat will begin training of DCOs, health and education workers on the co-responsibilities pilot and undertake awareness raising sessions among communities. The "family booklet with conditions" will be an important component of the community and beneficiary awareness-raising campaigns. The M&E team indicated that they intend to edit these guidelines and forward them to the communications team by March 30, so that printing and distribution will take place in April The Mission learned that the contract for the technical consultant that is supporting the pilot design and implementation had expired in February This consultant was appointed to deliver a series of key outputs. The Mission agreed that, given the intensity of field activities expected in the next month, the consultant's contract should be extended for three months to cover the period of April to June New outputs and deliverables for the consultants' extension will be developed and the contracting process will be initiated by the World Bank by March 30, Communication strategy. The Mission appreciated that the Secretariat had developed a communications strategy that had informed the design of various communications products. However, the communications team reported that the functionality and use of the various materials had not been assessed and indeed, in some cases, there was anecdotal evidence that they were not being used by target audience. While citizen service charters had been distributed to the DCOs, it was not clear how many had reached the beneficiaries directly. Moreover, monitoring reports suggest that, due to low literacy levels, many beneficiaries do not understand what is contained in the Charters. The Mission stressed the importance of developing a more comprehensive communication implementation plan that would include monitoring of delivery of products and usefulness of communications materials. The implementation plan should be developed in consultation with the M&E team. The Mission also noted the importance of the communication team working with the various operational departments to develop timely and useful products. The findings of the UNC follow-on study, for example, offer an opportunity to disseminate significant programme impact results. These findings will be shared with the Social Protection Secretariat communications and advocacy specialist to enable the Secretariat to develop broader and strategic messages of CT impacts. The communications team will develop a draft implementation plan for review and discussion by March 31,

10 Aide Alemoire Vulnerable Children Mid-term Review 33. Annual Work Plan and Budget. The draft Annual Work Plan and Budget take into account key activities for the coming financial year. The training of BWCs, additional activities resulting from the new PSP roll out and planned co-responsibility pilot implementation processes, are reflect in the work plan and budget, which are annexed below (Annex 5 and 6). The draft Annual Work Plan and Budget were reviewed and approved by the Mission. 34. Program Oversight. The Mission appreciated that Programme Management Oversight Committee (PMOC), chaired by the Secretary, CA, is a useful mechanism for periodic reflection on programme progress and provides important guidance to the TWG. The Mission scheduled the next meeting ofthe PMOC for July, V. MONTORNG AND EVALUATON 35. Management nformation System. Procurement of services to develop an internet domain and website for the Programme MS is planned for April-May The domain and website will enable various departments within the Secretariat and at the district-level to access relevant MS modules remotely, decentralising the MS function and reducing the level of work undertaken by the MS personnel. The Mission also discussed that, with the on-boarding of the new PSP, the capacities of the MS needed to be modified to be able to capture and store biometric information, a function it is currently unable to support. n the interim, Equity Bank has agreed to store this information and has provided a 'window' through which the DCS can view the data and provide necessary validation and payment approvals. UNCEF committed to providing support to undertake an MS upgrade to support the additional functionality required for the storage of biometric data. This modification is expected to be completed by June 30, 2012, at which time the biometric data held by Equity Bank will be transferred to the MS. As discussed in paragraph 21, the Expert Working Group for the Single Registry has commissioned a consultant to upgrade the MSs of selected cash transfer programmes, including the CT-OVC. This will constitute a significant upgrade of the CT-OVC MS, and will include the capacity to store biometric data. Once finalized, this upgraded MS will operate in parallel to the existing CT-OVC MS, for a period of at least six months, to confirm that this upgraded system is viable. 36. The Secretariat further noted that the MS has capabilities to collect and store data on grievance and appeals and co-responsibilities. The particular details of how these data needs to be provided to the MS team and accessed by the grievance and co-responsibilities personnel however has not been defined. The Mission recognised that while it is important to determine the flow of data and configure the MS accordingly, it is necessary to first advance the functionality of these two systems. The Mission agreed that the co-responsibilities pilot should function outside of the MS (with the exception of payroll and penalty component) until the model is deemed to be functioning properly. Progress on the co-responsibilities roll-out will be evaluated in August 2012, following which more comprehensive integration with the MS will be explored. Similarly, the Mission recalled that the firm undertaking external monitoring had proposed an interim solution for integrating external and internal grievances. The Mission noted that this had not been done and suggested that the Secretariat work with Kimetrica to install their software onto DCS computers in order to enable a consolidated grievance reporting and tracking systems. The loading of software on the Secretariat computers should be completed by April 30, The Mission noted that there are capacity concerns within the MS department, particularly given the loss of one of the key MS personnel The Mission agreed that, with the increased accessibility ofthe MS to the various departments and the planned decentralisation, the work-load 10

11 Aide Afemoire and Vulnerable Children Mid-term Review of the MS department is likely to reduce. However, the additional requirements of the PSP will require increased work from the MS team. The MS team noted that the World Bank: had supported the technical capacity by providing T A to the MS department. This contract expired in December The Mission noted that, rather than technical networking skills, there was need for an Officer capable of supporting the various departments to access and use the MS directly, build technical capacity of existing officers and analyse and relate MS developments to existing CT-OVC processes and models. This calls for a different set of skills. To this effect, the Mission agreed that the DCS draft a new TORs capturing these skills and share them with the World Bank: for review, by March 30, The DCS will initiate discussions with the Ministry regarding the deployment of additional full-time staff to key operational departments, including the MS department, to ensure sufficient capacity and staff continuity. The TA noted above will be tasked with building the capacity of these staff. 38. External monitoring. The Mission was informed that the long-term contract for the management of the Programme's external monitoring system has now been completed. The firm that designed and piloted this system will provide two more quarterly spot check reports (October December 2011; January-March 2012), after which the new firm will take ovel using the tools already developed for this purpose. The Mission discussed that plans for the inception phase, including shadowing the incumbent firm should be developed as soon as possible to ensure a smooth handover. 39. mpact evaluation. A baseline survey for selected districts in the Programme was undertaken in A second panel survey was fielded to the same households in n 2011, a third round panel survey was undertaken that assessed progress towards the same indicators as previous evaluations and additional indicators related to the impact of the transfers on adolescent sexual practice and on the effect of the cash transfer on the household, community and local economy. The initial results of the most recent survey were presented to the Mission (see paragraph 7). The Mission welcomed these significant findings and agreed that a clear dissemination strategy should be developed. This plan will include the publishing of policy briefs on several topics contained in that report. The MTR supported the recommendation to develop four research papers based on the broad areas of impact noted from the studies, by June 30, The topics for the papers will include: (i) comparison of 2 and 4 year impacts on spending, health, education and poverty (ii) HV risk behavior and psycho-social status; (iii) household and individual economic activity; and, (iv) local economy effects of the Programme. The papers will be shared with the Programme partners for review and comment prior to finalization and presentation at a national dissemination workshop, proposed for September Furthermore, the Mission agreed that shorter policy briefs on each of these topics would be written by the research team and disseminated to the public. For the economic impact studies, it was confirmed that planned qualitative follow-up work will be undertaken by June The Programme has recently engaged the services of another firm to undertake a separate impact evaluation in seven districts in which co-responsibilities are being piloted with the objective of determining if co-responsibilities improve impact on outcomes of interest for the Programme. The survey will also assess the effectiveness of the targeting system in those locations. This firm is expected to undertake a baseline study in AprillMay The Mission agreed that UNC will form part of the Steering Committee for the consultancy to assist in quality 2 The new finn has signed a contract and will begin inception discussions in April

12 Aide Memoire and VUlr.leralJle Children Mid-term Review V. assurance. The results of the baseline study are expected in June Two follow-up evaluations will be undertaken 12 months and 24 months following the baseline survey. FNANCAL MANAGEMENT AND PROCUREMENT 41. nternal Audit. The first nternal Audit report for the Programme was received on October 14,2011, covering the period July 1,2009, to March 31,2011. The report noted a number of control weaknesses that need to be addressed by the Programme 3 The internal audit highlighted weaknesses relating to, among others (i) lack of consistency with payment to the LOCs (ii) weaknesses in the MS and payroll preparation, (iii) delays in disbursement of GoK funds, (iv) lack of a complaints and grievance process, (iv) lack of effective programme communication leading to uncollected funds, (v) the overall programme governance structure, and (vi) quality control on consultancy outputs. 42. The action plan for addressing the detailed issues raised in the nternal Audit report was reviewed and discussed during the Mission. The Government noted that progress has been made in a number of areas. The Mission emphasised the importance of comprehensively implementing the action plan within the timelines indicated. Furthermore, the Mission suggested the importance of continually reviewing agreed plans given that a number of issues that have been raised in various reviews had not been fully addressed to date. To this effect, it was agreed that the Consolidated Fiduciary Risk Register will be updated by the DCS by April 30, The Mission agreed that this register will be reviewed during subsequent JRS, Audit and FM reviews. 43. Fixed Asset Management. The Government confirmed that development of a fixed asset management register for all Programme assets, both those procured by development partners and by the Government, was at an advanced stage. The procurement of a firm to provide the tagging equipment has been completed and the tagging of all programme assets is scheduled to start on March 25, comprehensive inventory of all programme assets has been completed by the Secretariat to guide this process. Once the tagging process has been completed, the fixed asset management register will be uploaded to the financial management system, which contains a module for asset management. 44. Fuel Management System. A review of the robustness of the Government fuel management system was undertaken following the May JRS Mission in The analysis shows that the government has clear guidelines for fuel management. The CT-OVC has since sent a circular to the districts re-emphasising the critical need to adhere to these guidelines. 45. World Bank Financial Management Review. The World Bank is in the process of undertaking a six monthly financial management review. Preliminary findings of the review were discussed during the Mission. A key issue relating to segregation of duties in the preparation and reconciliation of the payroll was highlighted. Currently these functions are completed by the same people within the Secretariat. t was agreed that action in this area will be a priority going forward. The review will be concluded in the coming weeks and an action plan to address the issues identified will be agreed with Government. 46. Procurement Plan. The Mission reviewed the Procurement Plan for DA-financed activities and noted that some contracts contained in the updated Procurement Plan have been 3 Some ofthese weaknesses had also been recorded by the External Audit completed by KENAO for the period ended June 30,

13 Aide Memoire and Vulnerable Children Mid-term Review carried forward since project effectiveness. f any of these activities have since been overtaken by events, or their implementation would be delayed, there would be need to either reschedule the activities if still required, or delete them from the Procurement Plan and reallocate the requisite funds to other project activities in line with the programme's development objectives. The Mission also noted that various recently signed contracts are scheduled to close beyond the enddate of the World Bank credit (December 2013). These three contracts end October The Mission agreed that, before the October 2012, the Procurement team and the Secretariat will revisit this issue and agree on the most appropriate options for managing the closure of these contracts. The Mission also noted that various planned procurements envisaged in the Project Appraisal Document (PAD) had not been undertaken to date. The Mission agreed that the Procurement team would decide which contracts were no longer necessary for effective programme implementation, and determine various scenarios for the reallocation of the savings that would be achieved by removing these from the procurement plan. This analysis will be done ahead of the next mission in October Finally, the Mission noted that the Social Protection Secretariat procurement processes are part of the overall Project procurement plan. There is need for the SP Secretariat to ensure that their procurement needs are reflected in the approved procurement plan. The Mission emphasized the need for the Procurement Specialist supporting the Programme to provide regular support to the SP Secretariat. 47. Procurement Post Review. Procurement Post Review conducted on March 13, 2012, observed that whereas there has been some improvement in procurement processing, documentation and record keeping since the last post review, weaknesses were noted as follows: (i) delays in internal administrative processes and approvals, which led to delayed processing of contract awards; (ii) inappropriately drafted contract agreements; (iii) delays in certification and processing of payments to suppliers and services providers; (iv) awarded contracts were not published in accordance with the Procurement Guidelines; and, (v) MGCSD implemented contracts related to the social protection component of the project. The details of activities undertaken under this component were not available for post review and the DCS was advised to promptly obtain and furnish the Bank with all the relevant transaction documents and records for purposes ofpost review (if financed through DA). X. NEXT STEPS 48. The next JRS Mission will be held in October The detailed Action Plan, attached as Annex 2, will be monitored through the CT-OVC Technical Working Group 50. The Programme Management Oversight Committee will continue to provide regular guidance to the TWG. The next meeting of the PMOC will be in July,

14 Aide Memoire and Vulnerable Children Mid-term Annex 1: CT-OVC Programme Status Report (March 2012) Background t is estimated that there are over 2.4 million orphans in Kenya, 48% ofthem resulting from HV and ADS. Since 2004, in response to the strong need to protect and assist these highly vulnerable children, the Department of Children's Services (DCS) in the Ministry of Gender, Children and Social Development in collaboration with Development Partners has implemented a Cash Transfer Programme for Orphans and Vulnerable Children (CT-OVC Programme). The programme started with a pilot in 2004 targeting 500 OVCs who were given Kshs 500 per month. The progressive success of the pilot has led to further scaling up of the programme to currently support over 130,000 beneficiaries in this 20 /20 12 financial year. The programme thus has its presence in all 47 counties. The transfer value increased progressively to Ksh. 1500/= and currently stands at Ksh. 2000/= per month. Programme Ohjectives The main objective of the programme was initially to provide a social protection system through regular and predictable cash transfers to families living with OVCs [orphans or vulnerable children] to encourage fostering and retention of OVCs within their families and communities and promote their human capital development. An impact evaluation conducted in revealed that fostering and the retention ofovcs within their extended families and communities were already well-grounded in existing social norms and that the Programme did not appear to increase their frequency. The evaluation recommended the objective to be reconsidered and the focus be directed at supporting existing processes and ensuring the welfare and development of OVCs. The objective was reviewed with the new focus being to strengthen the capacity of the households to protect and care for OVC within their families and communities. The cash transfer is given to very poor households taking care of OVC to assist them provide the basics of life to the children in the household. The cash transfers are expected to promote the health and education outcomes for the Orphans and Vulnerable Children (OVC). The programme also aims to enhance caregivers' /guardian's knowledge on developmental and protection aspects of OVC. Through training, the caregivers are familiarised with issues such as nutrition and health care practices as well as the need to improve civil registration for OVC and caregivers. The programme has successfully delivered the money to targeted households and thereby impacting very positively on the family. There is however great need to enhance the cash transfer with creation of accessibility to other services that could boost the household's economic status. CT-OVC Programme implementation progress The programme implementation process has progressed steadily resulting in the Government scaling up the operation to cover more districts and more beneficiaries. Since May 20 nine (9) new GOK districts (Keiyo, Kericho, Turkana, Lamu, Marsabit, Moyale, Wajir, Mandera and Meru Central) were added to the programme with an estimated beneficiary population of 11,000. The first payments in the districts are scheduled to take place in April The operational guidelines provided by the operations manual (OM) continue to provide useful road map for the implementation process. The manual, however, is reviewed annually in line with emerging needs of the program. n an effort to do a small scale internal scale up, targeting in GOKWB districts has been done to increase the number of beneficiaries in siolo, Teso, Embu, Bomet, Uasin Gishu and Kisii Central districts. These beneficiaries will be paid from the 2012/2013 financial year. Enrolment has also been done in 13 districts: Mt. Elgon, Laikipia, Tana River, Kajiado, Mbeere, Meru South, Maragua, West Pokot, Marakwet, Narok, Kuria, Trans Mara and Baringo. This has led to the increase in the total number of beneficiary households in line with the program design of vertical and horizontal expansion of the program. The programme has given serious consideration to the need to promote community and beneficiary understanding of the programme and its operations. A beneficiary awareness sensitization package has been developed and will be used as key reference material in mobilization and sensitization activities. Additional information materials that include a programme 14

15 Aide and Vulnerable Children Mid-term Review newsletter, Question and Answer booklet have been developed as part of a communication strategy to promote publicity and awareness on the programme among the stakeholders. The scaling up of the Programme has created considerable demand for human and material resources. The government has deployed 50 children officers to program districts to strengthen programme delivery at the district. Through the assistance of Development Partners (DP) the government purchased more 10 vehicles for the program to facilitate transport and implementation logistics. The criterion of distribution has been to ensure that every county with the programme has a vehicle. mplementing structure ofct- OVC Programme MGCSD through the Central Programme Unit CPU: Coordinate program operations at national level Provincial Children's Directors: Coordinates the implementation of program at Provincial level Area Advisory Council (AAC) District Children Officers: The AAC has overall role of overseeing the implementation and monitoring ofthe entire children welfare program within the district level. District OVC Sub-committee (DOSC): This is the technical committee selected by the AAC to implement the CT-OVC program at the district level. Location OVC Committee (LOC). This is a committee selected by the community to identify the eligible households and assist in mobilization of beneficiaries for community validation and enrolment. To improve the performance of the system, the role of the location orphans committees has been scaled down by reducing their involvement in the payment process. Their main role will be to mobilize the community during the targeting process. The members of this structure have been reported to request for money from the beneficiaries during payments. The role of mobilizing beneficiaries for payment will now be undertaken by the beneficiaries themselves through the beneficiary welfare committees. Secondly, a first community validation process has been introduced to correct the exclusion and inclusion errors at the appropriate time to ensure the most vulnerable excluded households are taken on board. Beneficiaries Welfare Committee (BWC). The DCS has already supported the formation of beneficiary welfare committees in nine districts and from this experience the BWC structure has potential to perform their roles and responsibilities. Guidelines to guide the formation and operation of these committees are already available. The location orphans committee will perform an important role in the targeting and enrolment of beneficiaries. The BWCs will mobilize beneficiaries for payment, case management and household information updating. Both structures are complimentary and report directly to the DCOS. At the moment it may be too early to suggest changes in these structures. t is anticipated that full implementation ofthe structure will offer important lessons to determine what may require to be changed. The BWC is a community established structure whose members are selected by beneficiaries to carry out the following activities on behalf of beneficiaries: To confirm with DCO the payment dates for each cycle The BWC will assist the DCO in identifying HH that have not been paid and the reason for non- payment. Provide support and assistance to the DCO, DOSC and Location Area Advisory Council in case management Using complaint channels, forward complaints from the beneficiaries to the relevant offices. Program Charter: The OVC Service Charters was produced to help programme beneficiaries understand their rights and responsibilities in the programme. A English and Kiswahili versions of the same charter were printed and distributed to all the districts across the country to be distributed to the beneficiaries. A practical challenge facing the utilization of the charter is that most of the caregivers are illiterate and might need someone else to translate for them the contents. The children in the households are to assist their caregivers to understand the content of the charter. The feedback on the use of the charter is mostly being channeled through the telephone. To date, many phone calls have been made by beneficiaries expression their opinions and concerns on the information on S

16 Aide Memoire the charter. The feedback is a clear indication that the information on the service charter has reached the beneficiaries and that they understand it. Management of fiduciary issues. Payment to beneficiaries is done by Postal Corporation of Kenya (PCK) through a manual process of using hard copy payrolls and use of fingerprints or signatures. The entire system is done manually hence reducing the levels of efficiency and effectiveness. The MGCSD has contracted Equity Bank to provide a cost effective, efficient, accessible and secure system for delivery of the cash transfer. Equity Bank will manage the payment process through use ofadvanced biometric technology and will effect the payments through it agents in the locations. The biometric solution involves use of technology that automatically authenticates the identity of the cash recipient by use of personal bio-data saved in the system. The caregivers will be issued with a personalized smartcard that will contain all appropriate personal data. The Equity Bank payment system will initially be piloted in Nairobi before rolling it out to other regions. A number of reviews have identified the LOCs as having become a powerful structure with the potential of becoming a major challenge to the process of beneficiaries receiving their payment without interference. The role of the LOCs has therefore been redefined and the involvement of LOC members will only be confined to mobilization of communities for targeting. Their involvement will end once the beneficiaries are enrolled. The responsibility of mobilizing beneficiaries for payment will now be done by beneficiary welfare committees. Guidelines for the formation and operation of Beneficiary Welfare Committee (BWC) have been developed and are in operation. The new structure will ensure effective participation of beneficiaries in the decision making process of the prograrnrne. The BWC are expected to be a platform for beneficiaries' capacity building, championing beneficiary rights, roles and responsibilities and elimination of (corruption) payment of money by beneficiaries to service providers. Training on formation of BWCs has been done in nine districts that include Lugari, Trans Nzoia, Makueni, Yatta, Nyahururu, Kibwezi, Taita Taveta and Teso. Plans are underway to scale up the exercise in the other districts. mprovement of payment system. n line with its desire to improve the effectiveness of prograrnrne payment process by providing a more cost effective, efficient, easily accessible and secure system of cash delivery, the Governrnent has engaged Equity Bank as an additional payment service provider for the prograrnrne. By use of biometric technology, Equity Bank is to enroll and pay beneficiaries in World Bank and DFD supported districts through the use of smart cards. Beneficiaries will be issued with smart cards that contain their bio-data and will use the same to withdraw their bi-monthly payments. To support the sensitization and mobilization of DCOs and beneficiaries for the Equity enrolment process, a sensitization package for the purpose has been developed and is currently in use in the Equity payment pilot districts. Complaints and grievance mechanisms. The CT-OVC Prograrnrne has established a complaint and grievances mechanism that addresses all cases including alleged commission and omission errors, misuse of funds, corruption, bribery and any undesirable behaviour of the Payment Service Providers, programme managers or other beneficiaries. A mobile phone contact number is available that those complaining can use to register their complaints and concerns. n addition, a complaints and grievance box has also been set up at the OVC Secretariat office at electricity house. 16

17 Aide Memoire and Vulnerable Children Mid-term Review A complaints committee to handle raised issues has been put in place. The committee meets on a monthly bases or when needs arise. The committee members also conduct field spot checks. Complaints and grievance mechanism is presently functioning well. MS updates aud capabilities: A comprehensive Management nfonnation System (MS) has been developed to support all the operational processes of the programme. t generates and processes infonnation required for use at the Central Program Unit (CPU) and the district level. Currently the infonnation system is centralized with a local area network connecting the servers and all the computers together. This has enabled sharing of infonnation and access of the weboriented software that is hosted on the server. The programme has been able to successfully pay beneficiaries in since July August 2007 cycle to date successfully. The programme has continued increasing the number of households to be targeted and, enrolled and paid with a current 134,345 beneficiary households being paid through Postal Cooperation of Kenya. This is tabulated as follows: DONOR UR NUMBERS AS AT FEBRUARY 2012 GOK/GOK 37,817 GOKWORLDBANK 50,094 GOK UNCEFDFD 46,434 TOTAL 134,345 households N.B: These numbers will increase in subsequent cycles be/ore the end 0/ the financial year Upgrade to the MS system was completed in December The upgrade included The adjustment will include all the modules of the MS using ASP.NET with MS Visual Studio 2008 as developing tool; and the required adjustment in the database structure. The modules are : (i)pre-targeting, (ii) Targeting, (iii)enrollment, (iv)payments, (v) compliance control, (vi)updating, (vii)appeals/complaints, (viii)statistics. This conversion means to translate the same functionality ofthe actual modules without adjustments. This item includes the data conversion to the new data base structure. The system was updated to ASP.NET Platfonn. The upgrade addressed emerging issues at that time. While the procurement, installation and the configuration of the finance module was completed, the integration of the finance module with the MS and ntegration of the MS with the external grievance and appeals system is also pending. The decentralization of the MS is the next significant step in improving MS work-flow and efficiency. n order to do this an internet domain is currently being procured. Once this is in place the CT-OVC Secretariat will develop a work-plan for the decentralization of the system including a capacity needs assessment and training programme for district level officers. The next step is to upgrade the MS to be able to capture biometric infonnation as required in the New payment service provider.discussions are currently being undertaken by the 17

18 Aide Memoire and Vulnerable Children Mid-term Review developer to see how it can be done.t will involve upgrade on several modules of the MS. MS Team and the social protection team of experts are Developing recommendations for customization required to existing MS in order for them to conform to requirements of single registry as illustrated below. This will enhance the social assistance programmes in Kenya and link them to the social protection single registry. Programme monitoring and evaluation nternal monitoring and evaluation is done regularly as indicated in the annual work plan. The outcome of the process is documented inform of reports that are shared among staff. Monitoring and evaluation shapes programme implementation as it helps programme implementers to confirm whether or not the programme is moving in the right direction. n case it is not remedial actions are put into place. The nternal and External monitoring and evaluation structures complement each other in monitoring the progress of the programme. The operational manual provides a clear direction as to how the implementation is to be conducted. Some of the major issues that have emerged as major concerns in previous monitoring and evaluation have included exclusion and inclusion errors during targeting of households and some community members soliciting for money from beneficiaries during payment. Conclusion To a reasonable extent, the programme implementation has been successful, and has provided lessons to other upcoming social protection programmes in the country. However, this has not been without challenges though surmountable. There has been delay in some of procurement procedures which has not only delayed disbursement but also inhibited the implementation of the programme. Funding variations due to different sources of funding has affected standard implementation of the programme in the districts. Lack of specialized skills i.e. Finance and communication has made the programme to continually be dependent on consultants. With the impending phase out of DA credit in 2013, it is quite necessary that an exit strategy be devised early enough. 18

19 Aide Memoire and Vulnerable Children Mid-term Review Annex 2: Mission Participants Name Dr. James Nyikal Prof. Jacqueline Oduol Amb. Franklin Esipila Mr. Jackson Kinyanjui Mr. George Njoroge Mr. Noah Sangani Ms. Beatrice Opande Ms. Winnie Mwasiaji Ms. Cecilia Mbaka Mr. Peter Muchais Ms. Mary Mbuga Mr. Samuel Ochieng Mr. Daniel Musembi Mr. Mwambi Mongare Mr. Peter Ombasa Ms. Grace Kimani Mr. Peterson Ndwiga Mr. Philip Ochieng Mr. Komu William Mr. Chrysostom Njeru Mr. Samuel Ndirangu Mr. Michael Nanjira Mr. Jonathan Magara Ms. Esther Kirigu Mr. Franklin Agwayo Ms. Elizabeth Sifuma Ms. Flora Nyaga Ms. Rosemary Kangechu Ms. Lilian Karinga Mr. Mitchell Sila Mutuku Mr. Paul Ngugi Mr. Moses Kanagi Ms. Josephine Mwangi Mweki Mr. Chris Price Mr. Chris Cosgrove Mr. Luis Corral Ms. Catherine Kimotho Ms. Joanne Bosworth Position Permanent Secretary, MGCSD Secretary, Children's Affairs, MGCSD Director Finance and Admin MGCSD Director, ERD, Ministry offinance (MoF) PAC, MGCSD DCS, MGCSD Principle nternal Auditor, MGCSD Programme Coordinator, SP Secretariat Deputy Director, Department ofgender, MGCSD Finance Officer, DCS, MGCSD Coordinator, CT -OVC secretariat, DCS, MGCSD MS, CT-OVC secretariat, DCS, MGCSD M&E, CT-OVC secretariat, DCS, MGCSD FM, CT-OVC secretariat, DCS, MGCSD Procurement, CT-OVC secretariat, DCS, MGCSD Procurement, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD Accountant, MGCSD Finance Officer MGCSD Finance Officer MGCSD Supply Chain Management, MGCSD CT-OVC secretariat, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD CT -OVC secretariat, DCS, MGCSD MS, CT-OVC secretariat, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD CT-OVC secretariat, DCS, MGCSD Accountant, MGCSD Director of Budget, MoF Budget Department, MoF Programme Officer, SDA Livelihoods Advisor, DFD Social Development Advisor, DFD Social Protection Advisor, UNCEF Child Protection Specialist, UNCEF Social Policy Advisor UNCEF 19

20 Aide and Vulnerable Children Mid-term Review Mr. Will Wiseman Mr. Michael Munavu Ms. Sarah Coll-Black Mr. Joel Munyori Mr. Henry Amuguni Ms. Lucie Muchekehu Ms. Karen Stephenson Mr. Solomon Mutuku Mr. David Njoroge Mr. Henry Misiani Ms. Constance Ambasa Ms. Caroline Kudwoli Mr. Lameck Odallo Ms. Marion Matoke Mr. Shannon Ryan Mr. Keith Fisher Mr. Peter Lokoel Mr. Robert Mbaka Ms. Elizabeth Manyala Mr. Jimmy Lilah Mr. Victor Odero Ms. Anne O'mahony Ms. Maria Wambua Mr. Muhoro Ndungu Mr. Henry Narangui Mr. Andrew Nyabera Ms. Susan Aletia Ms. Carrie Ndoka Mr. Richard Chirchir Ms. Aileen Lyon Ms. Sumananjali Mohanty Ms. Marion Ouma Senior Economist/Task Team Leader, WB Social Protection Specialist, WB Social Protection Specialist, WB Procurement Specialist, WB Financial Management, WB Programme Assistant, WB Senior Programme Officer DFD MS Consultant, CT-OVC secretariat, DCS, MGCSD Procurement Consultant, CT -OVC secretariat, DCS, MGCSD FM consultant, CT -OVC secretariat, DCS, MGCSD Co-responsibilities consultant Kimetrica nternational Kimetrica nternational Kimetrica nternational AusAid Hunger Safety Net Programme HelpAge nternational KAACR Platform for Social Protection Social Protection Actors Forum Concern Worldwide Concern Worldwide SP Secretariat ndependent SP Consultant Hunger Safety Net Programme Hunger Safety Net Programme Hunger Safety Net Programme Hunger Safety Net Programme Consultant, Development Pathways Director, Delta Partnership OxfamGB Africa Platform for Social Protection 20

21 Aprilll,2012 Annex 3: Action Plan 2 1#36 #29 4 1#38 l11 May 30,2012 Explore options and recommend approach to integrate internal May 30, 2012 and external grievance data through the MS Develop protocol documenting the purpose, functions, activities and different roles ofthe external and internal May 30,2012 mechanism for implementing both systems and share with TWG Manage inception oflong term external monitoring firm, including shadowing ofexisting firm's field monitoring April 15,2012 activities Procurement offirm to undertake monitoring of biometric April 30, 2012 and model CT-OVC Sec. (M&ElProc) MGCSD CT-OVC Sec. (MS) CT-OVC Sec.UNCEF CT-OVC Sec. (M&E/Proc) DFD 6 #32 June 30, 2012 Exten~ contract for the firm undertaking short-term complaints Ma #29 ~_--_._--tl_and grevance management y, 8 #31 Print and distribute co-responsibilities guidelines and family booklets containing information on co-responsibilities May 30, Develop different communication strategies to support the 9 #32 complaints and grievance mechanisms systems (new June 30,2012 materials and June 30, 2012 CT-OVC Sec. (M&E/Communications) World Bank CT-OVC Sec. (M&E/Communications) CT-OVC Sec. (Communications)UNCEF CT-OVC Sec. September, 2012

22 Aide Memoire Kenya Cash Transfer Programme for Orphans and Vulnerable Children Mid-term Review #28 Produce policy briefs based on the Programme 12 (20) mpact Evaluation. Social protection policy 13 #17 June 30, 2012 Draft TOR and.establi~h a Social Assistance Working Group Ma to work on Social ASSistance strategy y, CT-OVC (M&E) MGCSD, SP Secretariat 14 #18 Draft TOR of Cash Transfer Working Group April 30, 2012 MGCSD, SP Secretariat i #18 1#23 Establish Cash Transfer Working Group Convene a meeting of National Steering Committee (NSC) for SP 17 #18 Report ofthe CT Working Group to the NSC 18 #22 19 '# #23 21 #23 Publish guidelines for development of MS and Single Registry Work Recruit consultant for single registry and CT OVC/OPCTUFSP MS Procure services ofconsultant for SP institutional arrangement '! ana YSS Submission of discussion paper on CT institutional arrangements to SP SecretariatlNational Steering Committee Timely delivery of transfers, #17 Convene discussions with Treasury to explore ways of 122 (2011) improving predictability of Government fund flow Beneficiary Welfare Committees 23 #28 Complete establishment of BWCs in Phase 2 (25 districts) 24 #28 Begin training of BWCs and systematic monitoring of BWC performance based on defined implementation time-table Assessment ofthe appropriate levels of allowances to BWCs 25 #28 based on sustainability where government funding is concerned and evaluate the possibility ofjoint programme of financing for the payment of these committees Programme Coordination Mechanism 26 #34, Meeting of Programme Management Oversight Committee April 30, 2012 May 30, 2012 August 30,2012 May 30, 2012 April 15, 2012 April 30, 2012 June 30, 2012 Ongoing September 30, 2012 September 30, 2012 June 30, 2012! July 15, ' ~-..-. _.. - MGCSD, SP Secretariat MGCSD, SP Secretariat! Cash Transfer Working Group MGCSD, SP Secretariat!World Bank MGCSD, SP Secretariat! DFD MGCSD, SP Secretariat! World Bank Consultant CT-OVC Secl DPs CT-OVC Sec. (Operations) CT-OVC Sec. (Operations) CT-OVC Sec.lPartners CT-OVC Sec.lDPs f i i! i i i 22

23 ~. Aide Memoire Kenya Cash Transfor ProgrammeJor Orphans and Vulnerable Children Mid-term Review 50 (PMOC) - Co-responsibilities pilot 27 #31 Review and communicate feedback on inception report to firm that is supporting implementation of co-responsibilities pilot Edit guidelines for co-responsibilities roll out and for family 28 #31 booklets and forward to communications department for r- printing 29 #31 Extend contract for consultant supporting co-responsibilities pilot implementation 30 #36 Evaluate progress on roll-out ofco-responsibilities pilot as basis for more comprehensive integration with MS i Management nformation System 31 #35 Update MS to accommodate the requirements ofthe alternative PSP. Provision of access to M&E team for MS complaints and 32 #36 grievance module, training in the use and commence i uploading of historical complaints and grievance data 33 #36 Load Kimetrica software to DCS computers to allow integration of external and internal monitoring data Drafting TORs for T A for support to MS access and usage by 34 1#37 other CT-OVC departments and building capacity of MS team Financial Management 35 #41 nternal Audit 36 #42 Review and update of Consolidated Fiduciary Risk Register Procurement 37 #43 Commence tagging of all programme assets 38 #46 Review contracts that are expiring December 2013 and agree measures for management contract closures 39 #46 Review outstanding contracts from PAD and discuss whether need for procurement 40 #46 Undertake analysis on savings from un- procured contracts and recommend appropriate reallocation scenarios AprilS, 2012 April 15,2012 March 30, 2012 August 30,2012 June 30, 2012 April 30, 2012 May30,2012 March 30, 2012 To be confirmed April 30, 2012 Ongoing October 2012 October 2012 October 2012 CT-OVC Sec. CT-OVC (M&E) CT-OVC (M&E)! World Bank CT-OVC (M&E) CT-OVC Sec. (MS)/ UNCEF CT-OVC Sec. (MSM&E) CT-OVC Sec. (MS/M&E)lKimetrica CT-OVC Sec. (MS) MGCSD CT-OVC Sec. CT-OVC Sec. (Proc) CT-OVC Sec.lPartners CT-OVC Sec./Partners CT-OVC Sec.lPartners, 23

24 Aide Memoire Kenya Cash Transfer Programme for Orphans and Vulnerable Children Mid term Review - 41 #46 Procurement Specialist to provide regular support to the SP Secretariat 0 ngoing CT-OVC Sec. (Proc) 42 #46 With the approval of the Bank, the Procurement Plan updated annually or as needed throughout the planning period 0 ngoing CT-OVC Sec. (Proc) Capacity Building 43J#37 Analyze staffing capacity in the CT-OVC Secretariat and develop plan to meet additional staffing requirements 0 Ongoing MGCSD/Secretary, c.a., 24

25 Aide Memoire Kenya Cash Tranifer Programme for Orphans and Vulnerable Children Mid-term Review Annex 4: CT OVC Results Framework Update March 20, 2012 nla 70% 85% nla 85% 90% 95% 100% 66% 68% 72% 76% 80% nuust:nolus reporting satisfactory nla 70% 75% 80% 85% external assessments 4 Data reported regularly from MS. 5 The planned 2 nd impact evaluation of the Programme is specifically designed to answer this question. 6 Reported every two years from impact evaluation on original locations and will also be measured with second impact evaluation on new programme areas. 7 This is calculated from the responses of households to a range of questions on specific aspects of the programme's functioning. t is the average ofhousehold responses to a list of questions in the three districts surveyed by the July, August and September 20 Spot Reports. 8 Data collected through spot checks. t might be useful to consider adding more general question such as a single question that asks beneficiaries if they believe that they have all the information required to understand how the programme operates. 9 Produced as part of regular FR reporting. 10 This is measured as the "proportion of children (aged 0-17) holding a birth certificate or birth registration form". t is reported every two years from impact evaluation on original locations and will also be measured with second impact evaluation on new programme areas. 1 This is measured as the "proportion of children aged 1 3 years fully vaccinated" based on information from health cards. Further analysis of the 2007 data suggests that here may be a need to revise the baseline figure. This will be confinued. This indicator is reported every two years from impact evaluation on original locations. Will also be measured with second impact evaluation on new programme areas 12 This is the percent of households that agreed or strongly agreed that "programme processes are fair and operate efficiently" in the three districts surveyed by the independent spot check system in July, August and September