Executive Summary (in one page)

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1 Kenya

2 PAGE 1 OF 6 (Please submit completed form to countries@gcfund.org) Executive Summary (in one page) Country (or region) Kenya Submission Date 28/10/2015 NDA or Focal Point Contact Point (both NDA/FP and delivery partner) Readiness Area/s Request Summary (in 200 words) Anticipated Duration The National Treasury Name: Dr. Kamau Thugge, EBS Position: Principal Secretary, The National Treasury ps@treasury.go.ke ; copy to odhengo@gmail.com ; peter.odhengo@treasury.go.ke Tel: Full Office address: Treasury Building, Harambee Avenue P.O. Box Nairobi, Kenya 1. Establishing and strengthening National Designated Authorities (NDAs) or Focal Points 2. Strategic frameworks for engagement with the Fund, including the preparation of country programmes 3. Selection of implementing entities or intermediaries, and support for accreditation 4. Initial pipelines of programme and project proposals The initial phase of the Readiness and Preparatory Support Programme will focus on 1 of the standardized package for strengthening the NDA. The key activities will be undertaken by the NDA with support of consultants, focusing on technical and management support to strengthen the NDA, in the following ways: a) Create operational procedures within the NDA that are consistent with the Fund s Initial best-practice guidelines; b) Bridge knowledge gaps so that the NDA can fulfill its roles and responsibilities; c) Enable the NDA to act as the primary communication channel with the Fund as well as stakeholders consistent with the Fund s initial best practice options for country coordination and multi-stakeholder engagement; and d) Raise awareness at national and sub-national levels on the funds activities and benefits for Kenya s climate response. The NDA may also add other activities, within the overall envelope of US$150,000, in accordance with the Fund s defined scope of work in the Standardised Package for NDA or Focal Point Strengthening, available at: ackage_1_nda_strengthening.pdf 01/01/ /12/2016 (12 Months) Estimated total cost Up to US$ 150,000

3 PAGE 2 OF 6 SECTION A: RATIONALE FOR REQUEST A.1 Background Kenya is a leader in Sub-Saharan Africa in the development of an enabling regulatory environment for climate change and green economy. The government has established a number of strategies, policies and plans, institutional structures and legal frameworks to advance the shift to a low-carbon-green economy climate resilience development pathway and it continues to further develop climate resilience instruments. Kenya s proactive engagement on climate change is a function of its heightened vulnerability. Despite a diverse geography, Kenya s landmass of 58,728km 2 (slightly larger than Spain) is dominated by 89% arid and semi-arid lands (ASALs), which are prone to destructive, large-scale droughts (Republic of Kenya, National Climate Change Action Plan). The most recent drought of resulted in an estimated USD 12.1 billion in damages and losses, with recovery, reconstruction and future resilience building needs of an estimated USD 3.8 billion (Republic of Kenya, 2012: Kenya Post-Disaster Needs Assessment (PDNA) Drought). Flooding and exposure of the Kenyan coastline to sea level rise also pose significant vulnerability, among other sector impacts. In light of the current and projected trends, climate change poses a fundamental risk to Kenya s economy and future development. The National Climate Change Response Strategy (NCCRS, 2010) was the first national policy document to acknowledge the reality of climate change in Kenya while the National Climate Change Action Plan (NCCAP) sets out a vision for a low carbon climate resilient development pathway. The NCCAP contains an analysis of mitigation and adaptation options and recommended actions, recommendations for an enabling policy and regulatory framework, and defines the next steps for knowledge management and capacity development, technology requirements including a financial mechanism, and a National Performance And Benefit Measurement System (NPBM). In addition to the NCCAP, the Government of Kenya is preparing a National Climate Change Policy, National Climate Finance Policy, Climate Change Law, and Climate Finance Budgeting and Tracking System within the Integrated Financial Management Information Systems (IFMIS) as well as establishment of a Climate Change Fund. The Government of Kenya through the NDA has proactively engaged with a range of partners to establish and operationalize its work with the Green Climate Fund. This includes: establishment of a National Designated Authority (NDA) in the National Treasury, establishment of an Inter-Ministerial Technical Steering Committee (IMTC) chaired by the PS-National Treasury/Focal Point for GCF to oversee and coordinate GCF related decisions. The GCF-NDA office is within the Directorate of Budget, Fiscal and Economic Affairs, in the Department of Macro and Fiscal Affairs, Project Management and Resources Division, Climate Change Unit. There are six dedicated officers at the NDA, four of whom are at the Project Management and Resource Division and supported by two staff from the Resources Mobilization Department. The initial GCF readiness support will focus on NDA strengthening with resources provided by the GCF to be managed directly by the NDA. A.2 Justification for request The readiness support from the GCF enables the NDA to conduct the additional roles and responsibilities required to engage more effectively with the GCF. Although the NDA has put in place a dedicated GCF team within the National Treasury, it currently lacks internal procedures to execute its functions in full. The GCF readiness support will enable this dedicated team to carry out activities such as convening of national stakeholder engagements/workshops/seminars, and providing support to potential candidates for accreditation as intermediaries or implementing entities (in areas such as identification of capacity gaps and project development - e.g. project/programme pipeline development, ensuring transparency of the GCF-related processes and engaging private sector operatives, development partners, civil society organizations, community beneficiaries).the key outcomes of the initial readiness support are: i) To raise the country s awareness of GCF opportunities and activities in the country; ii) To enhance human resources within the NDA to develop and/or elaborate on clear national procedures for the issuance of no-objection to projects and programmes and iii) To support nominations for direct access entities for accreditation to the Fund. Training materials generated as results of GCF support would be publicly available on the NDA s website.

4 PAGE 3 OF 6 SECTION B: SCOPE OF WORK B.1 Description of activities (Please provide detailed logical framework as an annex. See Annex I for content to build from). The National Treasury of Kenya will hire a consultant or consultancy services for 1 year to build the capacity of the team within the NDA that will be responsible for overall coordination and capacity building of Kenya s engagement with the Fund. Key activities will include: a) Strengthening of the NDA to be consistent with the Fund s Initial best-practice guidelines; b) Strengthening NDA capacity to fulfill its roles and responsibilities, including to: 1. Provide no objection to the GCF on Kenyan funding proposals in the context of national climate change strategies and plans, including through consultation processes. This will include support of a national stakeholder consultation process to engage on future investment priorities and to engage potential accredited entities; 2. Facilitate the communication of nominations of prospective public and private sector entities seeking accreditation with the Fund; 3. Seek to ensure consistency of funding proposals from national, sub-national, regional and international intermediaries and implementing entities with national plans and strategies; 4. Implement the no-objection procedure as per the Fund s Initial no-objection procedure; 5. Oversee the implementation of GCF funded projects and programs in the country; 6. Work closely with Accredited Entities to ensure timely execution of projects as well as application of safe guards; 7. Preparation of National Standard Procedures (NSP) and code of conduct for Accredited Entities intended as an operating procedure within the NDA this will ensure fairness and uniformity of outputs; 8. Convening of stakeholders meetings and/or hearings to raise awareness, popularise proposed projects and programs; 9. Creating a technical working group with different stakeholders from the IMTC to communicate on Kenya and the GCF engagement; 10. NDA s unique requirements to achieve these outcomes of strengthening safeguards and governance systems to GCF funded activities; and c) Strengthen NDA capacity to act as the primary communication channel with the Fund as well as stakeholders at national and sub-national levels, including government, civil society and private sector actors consistent with the Fund s Initial best practice options for country coordination and multi-stakeholder engagement. B.2 Expected results The NDA will adopt the Logical Framework developed by the Fund (see Annex 1 with further information to be added in the inception phase). During the inception phase, the following results would be incorporated into the Logical Framework: 1. A strong and an effective NDA capable of delivering results in a timely manner; 2. Processes that can support timely communication of no objection letters to the GCF; 3. Strong stakeholder engagement including the private sector and CSOs; 4. Processes that can support a well coordinated implementation of GCF funded projects, programs and activities in Kenya 5. High level of awareness on GCF activities in the country; 6. Skilled personnel with clear understanding of GCF processes within the NDA which in turn has benefits to the Accredited Entities 7. Further impact of capacitated NDA-results in increased flow of green finance to support investments in low emission-green economy development activities at the country level; and 8. Increased Kenyan NDA representation in GCF global activities with readiness programme being initial phase.

5 PAGE 4 OF 6 SECTION C: BUDGET (include total cost and share of GCF funding) Please use the separate budget template provided to detailed relevant line items. Category area 1 area 2 area 3 area 4 area 5 Consultancy 65,000 65,000 Travel 20,000 20,000 Workshop 50,000 50,000 Other Operating Cost 7,500 7,500 Contingency 7,500 7,500 Project management costs n/a n/a Total (USD) Grand Total 150, ,000 GCF Share (USD) Note: please refer to the Fund s guide on indicative budgets for the standardised packages for activity 1 and activity 2. SECTION D: IMPLEMENTATION PLAN D.1 Implementation arrangements Kenya s National Treasury (NDA) will oversee the implementation of Area 1 activities through the direct access modality of the GCF readiness programme. The NDA will identify and hire individual consultant or consultancy services to deliver Area 1, in accordance with the Procurement Plan and a detailed Implementation Plan, both of which will be further elaborated in the Inception Report. D.2 Disbursement and implementation schedule The funding will be transferred to Kenya s National Treasury in three tranches: The first disbursement, which amounts to US$ 60,000, will be transferred upon the submission of an inception document from the NDA to the Fund, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; The second tranche of US$ 65,000 will be transferred upon submission of an interim progress report and financial report, in form and substance acceptable to the Fund, including an expenditure statement; and The final disbursement of $25,000 will be made upon submission of a completion report and an audited financial report, in form and substance acceptable to the Fund. The funds shall be bank in a special GCF-NDA project Account facilitate accounting and to avoid co-mingling of funds. D.3 Procurement Plan Procurement will be carried out in accordance with Kenya s Government Procurement Policy and will be executed by the National Treasury (NDA); a transparent and competitive process will be conducted and elaborated upon in the inception document. SECTION E: MONITORING & REPORTING PLAN The reports will be submitted as per what is included in section D.2, and will include reporting against the Logical Framework included in Annex I. Any additional indicators may be identified during the preparation of the Inception Document.

6 PAGE 5 OF 6 SECTION F: RISK & MITIGATION MEASURES Potential risks and mitigation measures include: Low-levels of stakeholder engagement and uptake of information: This risk would be mitigated by ensuring active engagement by key champions across sectors and strong communication products made publicly available on the NDA website. Challenge of procuring a high-quality consultant or firm to implement activities due to short term nature of the assignment (1 year): This risk would be mitigated by wide circulation of the Terms of Reference throughout national and development partner networks.

7 PAGE 6 OF 6 Annex I. Logical Framework OUTCOMES OUTPUTS PROJECT SUMMARY INDICATORS BASELINES 1. NDA capacity to undertake Fund-related responsibilities and engage national stakeholders strengthened 1.1 A process for supporting coordination across stakeholders and facilitating engagement (including periodic meetings / workshops) 1.2 Annual report on activities of the Fund and other relevant funding mechanisms and institutions in the country 1.3 Information materials on the operational procedures of the Fund in local languages (where relevant) and distribution lists of recipients 1.1 Capacity to coordinate across stakeholders and facilitate effective consultation and communication 1.2 Knowledge on climate and finance priorities strengthened 1.3 System for reviewing proposals and issuing recommendations (or noobjections) established 1.4 Capacity and systems to monitor, evaluate and report on the activities of the Fund and other relevant finance mechanisms and institutions established 1.5 Information, including in local languages, on procedures of the Fund to disseminated to country stakeholders Write up of the coordination process, and convening schedule Meeting minutes and participant lists documenting engagement of at least xx groups Electronic copy of the annual report, and details of public dissemination channels Links to electronic copies of presentations, information materials, climate and development information disseminated to distribution lists where relevant At least xx information materials on the fund developed and disseminated to at least xx people

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