Public Disclosure Authorized AFRICA Kenya Social Protection & Labor Global Practice IBRD/IDA Program-for-Results FY 2014 Seq No: 8 ARCHIVED on 30-Oct-2017 ISR28662 Implementing Agencies: Department for International Development (DFID), MEACL&SP, National Treasury, UNICEF, World Food Programme, Swedish International Development Agency, National Drought Management Authority Public Disclosure Authorized Program Development Objectives Program Development Objective (from Program-for-Results Appraisal Document) To support the Republic of Kenya's efforts to establish an effective national safety net program for poor and vulnerable. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Public Disclosure Authorized Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Substantial Implementation Status and Key Decisions The Government is making steady progress on the implementation of the National Safety Net Program for Results and disbursements against the targets are on track. The Government has demonstrated strong leadership on critical issues for the program, such as greater fiduciary oversight on the program through a comprehensive action plan and stronger beneficiary centric communication through the development of a beneficiary outreach strategy. An additional financing of US$ 50 million was approved in April 2017, making the total program budget US$ 300 million of which 63 percent has been disbursed to date. Two additional Disbursement Linked Results have been achieved since the previous status review. These include: (i) timeliness of payments and (ii) implementation of the Consolidation Strategy. Public Disclosure Authorized Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P131305 IDA-52870 Effective USD 250.00 250.00 0.00 175.51 59.56 70% P131305 IDA-59810 Effective USD 50.00 50.00 0.00 12.73 38.48 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Page 1 of 9
P131305 IDA-52870 Effective 23-Jul-2013 09-Sep-2013 16-Oct-2013 31-Mar-2018 -- P131305 IDA-59810 Effective 26-Apr-2017 27-Apr-2017 02-Jun-2017 30-Jun-2020 -- Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate High Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Substantial Technical Design of Project or Program -- Low Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Substantial Fiduciary -- High High Environment and Social -- Low Moderate Stakeholders -- Low Low Other -- -- Substantial Overall -- Moderate Substantial Disbursement Linked Indicators (DLI) DLI 1- Additional households are enrolled in the NSNP (Number) Value 0.00 0.00 765000.00 Date -- 31-Jul-2014 29-Sep-2017 This indicator remains the same,but four new DLRs are introduced. The DLRs proposed focus on (a) Government taking over financing of additional beneficiary households to ensure sustainability and (b) expansion in the NEDI counties. DLI 2 - System for recertification of NSNP beneficiaries is in place (Yes/No) Date -- 05-Jun-2015 29-Sep-2017 Page 2 of 9
The DLI has been modified as it was difficult under the original DLI to capture the desired outcomes (targeting conformity), as: (i) massive expansion took place before the baseline survey meant to measure the DLI was conducted, (ii) the survey reported a baseline much higher than was originally estimated; and (iii) Government does not plan to undertake a massive expansion in the future. As such, measuring recertification of existing beneficiaries is more appropriate at this stage of the Program. DLI 3 - Single Registry is fully operational with program MISs using agreed standards for internal payroll controls (Yes/No) Value Y Y Y Date -- 28-Nov-2014 29-Sep-2017 This DLI has been achieved. DLI 4 - Percent of NSNP payments made electroincally using two-factor authentication (Percentage) Value 40.00 -- 60.00 Date -- -- 31-Jul-2015 This DLI has been achieved. DLI 5 - Percent of payments disbursed to Payment Service Providers on time (Percentage) Value 12.00 -- 96.00 This DLI has been modified and achieved. The target for the DLI was increased from the original target of 65 percent to 75 percent (with a new baseline of 12 percent). Further, the window for considering a payment on time was increased and payments were considered to be on time, if the funds and payroll documentation are sent to the PSP within 15 calendar days of the deadline. DLI 6 - Grievance and Case Management mechanisms for the Cash Transfer Programs are functional (Yes/No) Page 3 of 9
This DLI has been modified given the challenges in measuring improvement in knowledge of beneficiaries on complaints and grievance mechanisms and as it did not include case management updates. As such, the DLI now to includes 'case management,' and the decentralization of the G&CM MIS module to improve information flow and feedback. Also, DLR 6b has been modified to replace the previous indicator measuring beneficiary awareness, and focuses on developing and implementing a Beneficiary Outreach Strategy to better engage beneficiaries and improve their awareness, as well as measures beneficiary awareness above an agreed cut-off for at least three of the four programs (proposed cut-offs: 60% for awareness of amount of transfer and 30% for being able to name two means of making a complaint or program updates current baseline for G&CM awareness is 8.8%). DLI 7 - System for scaling up the NSNP has been adopted (Yes/No) The achievement of this DLI has been delayed due to among other things the national elections in August 2017. It is expected to be achieved in FY18. DLI 8 - Government has adopted the consolidation strategy (Yes/No) Value N -- Y This DLI has been achieved DLI 9 - HSNP is financed (Yes/No) Value N -- Y This DLI has been achieved. Page 4 of 9
DLI 10 - NSNP beneficiaries' access to complementary social and productive services is promoted (Yes/No) This indicator has been introduced to support the Government in building the foundation for provision of complementary social and productive services to the NSNP beneficiaries through linkages and partnership with other organizations/programs delivering the relevant services. DLI 11 - Fiduciary systems for NSNP have been stregnthened (Yes/No) This indicator is being introduced to ensure that the fiduciary systems for the NSNP are strengthened to address the high-risk rating and the mention of systemic weaknesses in repeated audits. Results Results Area Intermediate Results Area Expanding cash transfer programs to promote more comprehensive and equitable coverage Strengthening program systems to ensure good governance Harmonizing cash transfer programs to increase the coherence of the safety net sector Project Development Objective Indicators PHINDPDOTBL Net change in beneficiary household monthly per adult equivalent consumption expenditure (Number, Custom) Page 5 of 9
Value 0.00 -- -- 150.00 Date 30-Jun-2013 31-Mar-2017 06-Oct-2017 31-Dec-2018 PHINDPDOTBL Number of NSNP beneficiaries, by sex (Number, Custom) Value 1,650,000.00 4,017,759.00 4,040,000.00 4,280,000.00 Date 28-Jun-2013 31-Jan-2017 06-Oct-2017 31-Dec-2019 PHINDPDOTBL System for recertification of NSNP beneficiaries is in place (Text, Custom) Value No -- No Completion of the rollout of the recertification plan in at least 20 subcounties New. This indicator replaces the previous indicator on targeting conformity. Recertification is a more important focus, since no new massive expansion is envisioned at this stage. It is important for the NSNP to ensure that the right people are in the program, making recertification of existing beneficiaries necessary. PHINDPDOTBL % of all payments are made on time to Payment Service Providers or transfer to Program Beneficiaries (Percentage, Custom) Value 12.00 -- 96.00 90.00 Page 6 of 9
The indicator remains the same, but targets have been included fir additional years due to the proposed extension of the closing of the Program. The targets for 2017 and 2018 are in line with modified DLR 5. The targets for 2019 builds upon the achievement made in the previous years. The baseline has also changed to reflect the current status of payment timeliness. Overall Some of the indicator targets and end dates have been revised as part of the restructuring and Additional Financing, namely (i) number of beneficiaries, by sex; (ii) % of payments made on time. The indicator on targeting conformity has been replaced by the indicator on system for recertification in place, as this is a more important focus given that there is no new massive expansion is planned. Intermediate Results Indicators Number of households paid for by the Government (Number, Custom) Value 114,384.00 -- 742,000.00 792,000.00 Date 26-Jun-2013 -- 06-Oct-2017 31-Dec-2019 % of beneficiaries who know correct program transfer amount for the program in which they are enrolled (Percentage, Custom) Value 56.30 -- -- 70.00 Date 05-Apr-2017 -- 06-Oct-2017 31-Dec-2019 % of beneficiaries for whom payments are made electronically using Two-Factor Authentication (Percentage, Custom) Value 40.00 -- 90.00 90.00 Grievance and Case Management mechanisms for the Cash Transfer Programs are functional (Yes/No, Custom) Page 7 of 9
Y % of Program Beneficiaries who can name two means of making complaint (Percentage, Custom) Value 8.80 -- -- 40.00 Date 31-May-2016 -- 06-Oct-2017 31-Dec-2019 Single Registry is operational and progam MISs use the Standards for Internal Payroll Controls (Yes/No, Custom) Value Y -- Y Y % of NSNP funding financed by the Government (Percentage, Custom) Value 41.00 -- 91.00 96.00 Number of households per year paid through the NSNP out of NDEF (Yes/No, Custom) Y Date 26-Jun-2013 -- 14-Jul-2017 31-Dec-2019 Currently the NDEF has not yet been established and the target is unknown since it will depend on the drought situation in Kenya. Whenever NDEF is set up and households paid numbers for this indicator will be inserted Page 8 of 9
NSNP beneficiaries' access to complementary social and productive services is promoted (Yes/No, Custom) Y Date 05-Apr-2017 -- 06-Oct-2017 31-Dec-2018 Fiduciary systems for NSNP has been strengthened (Text, Custom) Value N/A -- In progress Implementation of 100% of the agreed critical FM actions. Overall Some new indicators and targets have been revised and updated during the Additional Financing and Restructuring of the NSNP to reflect modified and new DLIs/DLRs, as well as the new closing dates. Notable revisions include the removal of the following indicators: (i) Number of households in the NSNP payroll (captured in the PDO indicator on NSNP beneficiaries by sex); (ii) % of complaints actioned (captured in the indicator on Functional Grievance and Case Management mechanisms); (iii) Amount spent on the NSNP by the Government as % of GDP (captured in another indicator on % of NSNP funding financed by the Government). Moreover, revisions have been made to some indictors, namely the ones related to Grievance and Case Management, and Expansion to better reflect current realities and facilitate effective measurement and capture of results. Page 9 of 9