with FAO for the Republic of Kenya 31 January 2018 Adaptation Planning

with FAO for the Republic of Kenya 31 January 2018 Adaptation Planning

PAGE 1 OF 18 Ver. 20 March 2017 Readiness and Preparatory Support Proposal How to complete this document? - A readiness guidebook is available to provide information on how to access funding under the GCF Readiness and Preparatory Support programme. It should be consulted to assist in the completion of this proposal template. - This document should be completed by National Designated Authorities (NDAs) or focal points with support from their delivery partners where relevant. - Please be concise. If you need to include any additional information, please attach it to the proposal. - Information on the indicative list of activities eligible for readiness and preparatory support and the process for the submission, review and approval of this proposal can be found on pages 11-13 of the guidebook Where to get support? - If you are not sure how to complete this document, or require support, please send an e-mail to countries@gcfund.org. We will aim to get back to you within 48 hours. - You can also complete as much of this document as you can and then send it to countries@gcfund.org. We will get back to you within 5 working days to discuss your submission and the way forward. Note: Environmental and Social Safeguards and Gender Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, in particular to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult page 4 of the readiness guidebook for more information.

PAGE 2 OF 18 Ver. 20 March 2017 SECTION 1: SUMMARY 1. Country submitting the proposal Country name: Kenya Name of institution (representing National Designated Authority or Focal Point): Name of official: Dr. Kamau Thugge Position: Principal Secretary, The National Treasury Telephone: +254 20 224 0051 Email: ps@treasury.go.ke, copy to odhengo@gmail.com; peter.odhengo@treasury.go.ke 2. Date of initial submission 3. Last date of resubmission (if applicable) 4. Which entity will implement the Readiness and Preparatory Support project? (Provide the contact information if entity is different from NDA/focal point) 5. Title of the Readiness and Preparatory Support Proposal Full Office address: Treasury Building, Harambee Avenue P.O. Box 30007-00100, Nairobi, Kenya 25/04/2017 20/10/2017 (Submitted by Delivery Partner on 09 January 2018, confirmed as the appropriate version by NDA on 28 January 2018) National Designated Authority Delivery partner X Accredited entity Name of institution: Food and Agriculture Organization of the United Nations Name of official: Dr. Gabriel Rugalema Telephone: +254 207625961 Position: FAO Representative in Kenya Email: gabriel.rugalema@fao.org Full Office address: United Nations Avenue, UN Complex, Block P, Level 3, P.O.BOX 30470-00100, Nairobi, KENYA Enhancing capacity for planning and effective implementation of climate change adaptation in Kenya Kenya s Intended Nationally Determined Contribution (INDC) reiterates that adaptation is Kenya s priority response to climate change. In November 2015, Kenya made a historic landmark in efforts to address the country s vulnerability to climate change by validating its National Adaptation Plan (NAP 2015-2030). The NAP is Kenya s first plan on adaptation and demonstrates a strong commitment to operationalize the National Climate Change Action Plan (NCCAP 2013-2017). The NAP identifies and prioritizes actions in 20 planning sectors for the short, medium and long term. 6. Brief summary of the request (200 words) The GCF NAP readiness support will help achieve the following expected results in line with the recommended actions in the NAP. i. Technical and institutional capacities for adaptation planning in key Ministries, Department and Agencies (MDAs) enhanced. Targeted institutions include: Ministry of Agriculture, Livestock and Fisheries, Ministry of Environment and National Resources, National Drought Management Authority, Ministry of Water and Irrigation, Ministry of Devolution and Planning, Climate Finance Unit of the National Treasury. ii. Knowledge base for NAPs strengthened iii. Evidence-based results for NAPs improved and integrated in subsequent adaptation plans. iv. Private sector actively engaged and investing in the adaptation process. In a bid to improve its ability to mobilize adequate resources to adapt to and mitigate the effects of climate change, Kenya has also effected a new policy on Climate Finance (Climate Finance Policy 2017).

PAGE 3 OF 18 Ver. 20 March 2017 7. Total requested amount and currency USD 3 million 8. Anticipated duration Three years. 9. Is the country receiving other Readiness and Preparatory Support related to the GCF? Yes No Kenya has received some Readiness and Preparatory Support ($ 150,000 direct access) in order to strengthen its NDA. Within this framework, the Government of Kenya aims to: 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 fulfil its mandate; 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 fund s activities.

PAGE 4 OF 18 Ver. 20 March 2017 SECTION 2: COUNTRY READINESS LOGICAL FRAMEWORK Please complete the table below, which enables a country to assess its readiness for the GCF and set targets for strengthening its readiness, including proposed outputs and activities to improve the country s readiness. For further guidance on completing the table, please refer to the guidebook Accessing the GCF Readiness and Preparatory Support Programme. OUTCOMES 1 BASELINE TARGET ACTIVITIES (including key outputs or deliverables where applicable) 2 7 N/B: Deliverables and the month number outputs will be achieved are in the brackets. In addition, an implementation schedule chart has been provided in excel. 1. Technical and institutional capacities for adaptation planning and implementation in key Ministries, Departments and Agencies (MDAs) enhanced 1.1 Training curriculum developed and integrated in the Kenya School of Government (KSG) training programs. 0 1 2 0 1 2 1.1.1. Review existing training material developed under the USAID-funded Low Emission Climate Resilient Development (LECRD) project. (deliverable: Gap analysis report, month to be achieved:03) 1.1.2. Based on 1 above, develop a capacity development programme (curriculum and manual) to be implemented at both national and county (sub-national) level on integrating climate change adaptation into planning and budgeting, application of gender-responsive approaches for the agricultural sector, data analysis and information management. This activity will also be informed by the findings and recommendations of the recently concluded capacity assessment for climate change adaptation planning in Kenya (curriculum and training manual; 05). 1.2 Capacity of technical staff to integrate climate change risks and opportunities in planning and budgeting, application of gender-responsive approaches strengthened. 1.3 Climate data and information management at both national and county level improved. 0 1 2 0 1 2 1.2.1 Train at least 500 men and women technical staff in Climate Change Coordination Units (CCUs) at county level as per the training programme in 1.1.2 2 (10 Trainings, capacity development reports, 18) 0 1 2 0 1 2 1.3.1 Equip Climate Change Coordination Units with data analysis and information management systems at both national and county level (in all 47 counties across the six targeted institutions) and 1 Based on decisions: B.08/10, annexes XII, XIII & XIV; B.08/11; B.11/10, annex I; B.12/20, annex I 2 The integrating agriculture in NAPs project- a collaborative initiative of the FAO and UNDP is currently technically and financially supporting some capacity building activities for technical officers in CCUs but at the national level only.

PAGE 5 OF 18 Ver. 20 March 2017 support establishment of a coordination mechanism linking the data and information management systems with national and county planning processes. 1.4 Gender-responsive budgeting addressed in adaptation strategies and programmes/projects for the agricultural sub-sectors (crops, livestock, fisheries, forestry and aquaculture). 1.5 Adoption and implementation of the Kenya Climate Smart Agriculture Framework Programme (KCSAFP 2017-2026) 3 realized in at least 3 counties. 2. Knowledge base for adaptation strengthened 2.1 Knowledge base for the recently launched NAP 2015-2030 strengthened. 2.2 Knowledge and information sharing on adaptation planning and implementation between target countries, development partners and donors enhanced. (data analysis and information management systems installed in all 47 counties and linked with national planning processes; 24) 0 1 2 0 1 2 1.4.1 Develop guidelines for counties to do gender-responsive budgeting for adaptation investments (capacity building of officers on how to use the guidelines incorporated in 1.1.2 above). (Guidelines for gender-responsive budgeting; 30) 0 1 2 0 1 2 1.5.1 Provide technical support to counties to implement the Kenya Climate Smart Agriculture Framework Programme (KCSAFP 2017-2026) in line with Kenya's Climate Smart Agriculture Strategy and the NAP. (Three community projects on Climate Smart Agriculture implemented, 24) 2 5 0 1 2 0 1 2 2.1.1 Conduct 8 NAP sensitization and training workshops at the county level. 4 (Eight sensitization workshops; 18) 0 1 2 0 1 2 2.2.1. Organize at least one South-South peer to peer exchange to share with other countries lessons learned on formulating and/or implementing NAPs, including representatives of farmers, indigenous, men and women groups. (One peer to peer exchange for NAPs; 36) 2.2.2 Establish a regional knowledge hub for adaptation (initially Kenya, Uganda and Ethiopia) (Regional knowledge hub for adaptation; 18) 2.2.3 Develop a compendium of adaptation programmes/projects involving good and innovative approaches for the three countries. (regional compendium of adaptation initiatives covering Kenya, Uganda and Ethiopia; 18) 3 The Kenya Climate Smart Agriculture Framework Programme (KCSAFP 2017-2026 is the Implementation plan for the Kenya Climate Smart Agriculture Strategy. 4 Public awareness and sensitization at the national level have already been done through support from other adaptation initiatives.

PAGE 6 OF 18 Ver. 20 March 2017 2.3 Capacity of environmental journalists to effectively report on climate change issues improved. 0 1 2 0 1 2 2.3.1 Review existing training materials (Gap analysis report; 12) 2.3.2 Develop a regional climate change training programme for journalists in partnership with the media council, research and academic institutions. (Training programme for journalists; 12) 2.3.3 Conduct one T.o.T session for facilitators (T.o.T; 18) 3. Evidence-base for climate change adaptation in agriculture improved and integrated in subsequent National Adaptation Plans. 3.1 Assessment framework adopted and applied by the Ministry of Agriculture, Livestock and Fisheries. 3.2 Results from the application of the framework and CBA serve as an input into the agricultural policy dialogue on national adaptation planning. 3.3 Best practices and lessons learnt documented and integrated in subsequent NCCAPs. 1 4 2.3.4 Based on 2.3.1 & 2.3.2 above, train 50 journalists at the county level in partnership with the Media Council of Kenya (MCK) and the Environment Society of Kenya (ESOK). (50 journalists trained on climate change reporting; 24) 0 1 2 0 1 2 3.1.1. Develop an impact assessment framework for adaptation interventions in the agricultural sectors (including fisheries, aquaculture, crops, livestock and forestry) in line with the strategic priorities of the Government as set out in the Nationally Determined Contribution and other relevant strategies including the NCCAP and the NAP. (Impact Assessment Framework; 24) 0 1 2 0 1 2 3.2.1. Conduct eight training sessions at the national and county level to strengthen the capacity of climate change coordination units on using the framework in 3.1.1 (Eight trainings; 30) 3.2.2. Review previous work on economics of climate change adaptation and conduct Cost and Benefit Analysis (CBA) of selected adaptation interventions within the agricultural sectors, including socioeconomic and gender analysis. (Review report; 24) 3.2.3 Document and disseminate case studies on evidence-based results based on 3.2.2 above. (At least two case studies; 30) 0 1 2 0 1 2 3.3.1. Document the lessons learnt from the National Climate Change Action Plan (NCCAP 2013-2017) and support the Climate Change Directorate (CCD) to develop the next NCCAP. (Publication highlighting lessons learnt; county consultations; 24,30)

PAGE 7 OF 18 Ver. 20 March 2017 4. Private sector actively engaged and investing in the adaptation process 4.1 Local network of private sector companies/entities that integrate climate change adaptation in their core business established and operationalized. 4.2 Business case for the private sector to investment in climate solutions strengthened. 4.3 Enabling environment for private sector engagement in climate change action improved. 1 4 0 1 2 0 1 2 4.1.1. Establish a local network of private sector companies (including female-owned and operated companies) that integrate climate change adaptation in their core business/operations. Network Secretariat to be hosted by the Kenya Private Sector Alliance (KEPSA). (Local network established and hosted within KEPSA; 18) 0 1 2 0 1 2 4.2.1. Conduct four sensitization forums and trainings on how climate change affects value chains including gender-based constraints of female and male actors - in different sectors of the economy. (Four sensitization workshops; 24) 0 1 2 0 1 2 4.3.1. Identify the drivers for (and barriers to) private sector investment in adaptation. (Barrier Analysis Report; 18) 4.3.2. Strengthen the institutional and technical capacity of the Climate Business Information Network (CBIN) 5 established by the Kenya Private Sector Alliance (KEPSA). (Capacity of CBIN enhanced; 12) 4.4 Private sector-led adaptation programmes/projects developed and submitted to the GCF. TOTAL 6 20 4.3.3. Foster a strong linkage between the NDA and the private sector (through the Climate Business Information Network and the local network in 4.1.1) to enhance accreditation to GCF s Private Sector Facility. (At least two workshops to deepen the private sector s understanding of the GCF s PSF, periodic consultative meetings with the NDA; 24) 0 1 2 0 1 2 4.4.1. Support the development of at least three project Concept Notes for submission to GCF's Private Sector Facility for funding. (three project Concept Notes; 30) 4.4.2. Establish at least three public-private partnerships to catalyse private sector engagement in adaptation investments. (three public-private partnerships; 30) 5 Climate Business Information Network (CBIN) aims to promote information and experience sharing between businesses with a view to helping the private sector understand risks and opportunities from climate change

PAGE 8 OF 18 Ver. 20 March 2017 SECTION 3: ADDITIONAL INFORMATION Please explain how this grant will help deliver on the country s readiness needs as identified above and build on institutions, processes or existing work already underway in the country (maximum 500 words) The Government of Kenya recognizes the threats posed by climate change and is committed to take action to address them. Kenya s Nationally Determined Contribution identifies climate change adaptation as a priority for the country. Over the last five years the country has developed climate change strategies, policies and plans, including the National Climate Change Response Strategy (NCCRS) in 2010, the National Climate Change Action Plan (NCCAP 2013-2017), Climate Change Act in 2016 and the Climate Finance Policy in 2017. Furthermore, the country s National Adaptation Plan (NAP 2015-2030) was released in November 2015. It is Kenya s first plan on adaptation aimed at operationalising the NCCAP by mainstreaming adaptation across all sectors in national planning, budgeting and implementation processes. Both the NCCAP and the NAP will be reviewed after five years. Further challenges related to adaptation planning remain. Two specific needs were highlighted in the NAP itself: 1) Establish an institutional framework and build capacity to coordinate and enhance mainstreaming at the sectoral level; and 2) Put in place mechanisms linking climate change data and information with national and county planning processes. In light of the iterative nature of the NCCAP and the NAP, a stakeholder consultation was convened in January 2017 6 to identify gaps and needs in adaptation planning and ways to address them. Some of the main gaps identified include: weak evidence on the impacts of adaptation interventions; weak involvement of counties in adaptation planning; and a lack of capacities at the individual, institutional and systemic levels on climate change risks and opportunities in the agriculture sectors. A study commissioned by FAO and UNDP in 2016 (see Section 4.3) identified a number of barriers to NAP implementation. Of specific mention are barriers related to Lack of harmonization of the national and county planning processes leading to lack of synergies in the implementation of the NAP. Others are technical capacity and financial barriers (page 6 and 7 of the assessment report). This readiness project will address some of the barriers. For instance, the first outcome area is focused on strengthening technical and institutional capacities. Other critical aspects of capacity building are covered under project outcomes 2, 3 and 4, precisely activities 2.3.3, 2.3.4, 3.2.1, 4.2.1.The project component on private sector engagement is aimed at mobilizing climate finance from the private sector in a bid to address financial barriers. In an effort to address the lack of harmonization of national and county planning processes identified by the study, this project will support the development of a coordination mechanism to ensure that the data and information management systems are linked with national, sectoral as well as county planning processes, in particular, the third Medium Term Plan (MTP III 2018-2022), County Integrated Development Plans (CIDPs) as well as existing Early Warning Systems. The study also identified drivers for NAP implementation such as public participation, the Kenya Climate Smart Agriculture Strategy (KCSAS 2017-2026) and its Implementation Plan (the Kenya Climate Smart Agriculture Framework Programme). By strengthening the capacity of journalists on climate change reporting, the project will contribute towards influencing public participation. Lastly, activity 1.5 of the readiness project is about implementation of the Kenya Climate Smart Agriculture Framework Programme-a key driver for NAP implementation. This Readiness project offers the opportunity to meet the residual needs of the country s adaptation planning process in terms of: i) building technical and institutional capacities; ii) promoting knowledge management, communication and advocacy; iii) enhancing the evidence base for adaptation; iv) enabling private sector involvement. A detailed explanation of how the project will address the residual needs of the country is provided under section 4.2 on additional information, sub-section title: Theory of Change The project will build on existing work already underway in the country. For instance, in the first outcome area on strengthening technical and institutional capacities, the project will build on the work currently being supported by the USAID-funded Low Emission Climate Resilient Development (LECRD) project and the Integrating Agriculture 6 Minutes of the stakeholders consultation meeting attached under additional information (section 4.2)

PAGE 9 OF 18 Ver. 20 March 2017 in National Adaptation Plans project. The integrating Agriculture in NAPs project is a collaborative initiative of the FAO and UNDP Kenya representations. In 2016, the project technically and financially supported a capacity needs assessment for climate change adaptation planning in six government institutions. Namely, Ministries of Agriculture, Livestock and Fisheries, Environment and Natural Resources, Devolution & Planning, National Drought Management Authority, Ministry of Water and Irrigation and the National Treasury (The target institutions under this NAP readiness project). The Integrating Agriculture in NAPs project is currently supporting capacity development activities based on the findings of the capacity assessment. However, the training programme is not integrated in the Kenya School of Government (KSG) training programs. Moreover, since the LECRD-supported training program is focused on imparting basic climate change knowledge, there is need to develop climate change programs at the intermediate and advanced levels. Due to budget constraints, the capacity building exercise under the FAO-UNDP collaborative initiative has been limited in scope to the national level only. Since the capacity assessment findings are institution-based, this project will support the development of training curricula tailored to the unique needs of each sector and further oversee their integration in the KSG training programs. KSG is a state corporation that offers management training, research, consultancy and advisory services to the public sector at both National and County governments, private sector players as well as those from the Non-Governmental Organizations (NGOs). Once integrated in the KSG programs, technical officers at both national and county level will be able to benefit through enrolment. The idea of anchoring activities in functional national institutions helps in ensuring sustainability of project activities beyond the project period. Although the NAP is multi-sectorial, this proposal is focused mainly on the agricultural sectors, being the sector mostly affected by climate change and a priority for Kenya. However, the implementing agency will work closely with the Climate Change Directorate (CCD) under the Ministry of Environment and Natural Resources and the NDA, and will seek synergies with other adaptation-related activities of the other sectors through regular consultations with the NAP Thematic Working Group. 7 In particular, this project will help Kenya achieve the following expected results: Expected result 1: Technical and institutional capacities for adaptation planning in key Ministries, Departments and Agencies (MDAs) enhanced. Expected result 2: Knowledge management, communication and advocacy on climate change adaptation strengthened. Expected result 3: Evidence-base of climate change adaptation in agriculture improved and integrated in subsequent national adaptation plans. Expected result 4: Private sector actively engaged in climate change adaptation. 7 The NAP Thematic Working Group (TWG) comprises representatives of the Ministries of: Agriculture, Water and Irrigation, Environment and Natural Resources, Devolution and Planning, Drought Management Authority, Private Sector, NGOs, Development Partners, Research and Academia. The NAP TWG will be part of the Project Steering Committee. See implementation map in sec. 5.

SECTION 4: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT PAGE 10 OF 18 Ver. 20 March 2017 4.1. Budget Plan Please provide a breakdown of cost estimates and implementation schedule analysed according to the activities suggested in Section 2. Please feel free to replicate this table on Excel spreadsheet if needed. Budget Plan and Implementation schedule provided in the attached excel sheet (see sheet one of excel sheet). The budget plan has been modified based on comment no. 14 made by reviewers.

4.2. Procurement Plan PAGE 11 OF 18 Ver. 20 March 2017 For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below. Also, please feel free to replicate this table on Excel spreadsheet if needed. Procurement will be done according to FAO procurement policy, as per the Framework Arrangement signed between FAO and GCF (link to Framework Agreement provided) The thresholds of FAO procurement policies for goods and works will be applied, as per the Framework Agreement between GCF and FAO http://www.greenclimate.fund/documents/20182/466886/gcf_and_fao_readiness_and_preparatory_support_framework_agree ment.pdf/b95fa215-80b2-496a-b8ad-2d1f8c668331 Procurement Plan provided in the attached excel sheet (see sheet 3 of excel document).

PAGE 12 OF 18 Ver. 20 March 2017 4.3. Disbursement schedule Disbursement requests will be submitted in accordance with the requirements and timing set out in Clause 4 of the Framework Readiness and Preparatory Support Grant Agreement between the Green Climate Fund and FAO. http://www.greenclimate.fund/documents/20182/466886/gcf_and_fao_readiness_and_preparatory_support_framework_ag reement.pdf/b95fa215-80b2-496a-b8ad-2d1f8c668331 4.4. Additional information In accordance with established practice, the following rates are the basis on which locally recruited consultants/experts are remunerated by the United Nations. CATEGORY Degree of expertise Minimum daily rate (KES) Maximum daily rate (KES) NC-A NC-B NC-C NC-D Junior consultant: Masters degree with between 0-4 years experience. Mid-level consultant: Masters degree with between 5-9 years experience. Senior consultant: Masters degree with between 10-19 years experience. Senior and highly specialized consultant: Masters degree with more than 20 years experience, or PhD in lieu of the 20 years. 16,553.00 20,476.00 21,389.00 26,673.00 27,833.00 34,549.00 36,023.00 44,559.00

PAGE 13 OF 18 ver. 20 March 2017 SECTION 5: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 4.1. Please attach an implementation map or describe how funds will be managed by the NDA/FP or delivery partner Funding Source: GCF GCF Accredited Entity: FAO Executing Entity: CCD under Ministry of Environment Project Steering Committee PSC composition The Project Steering Committee will comprise representatives of: Climate Change Directorate (CCD) National Designated Authority-The National Treasury NAP Thematic Working Group FAO Kenya Kenya Private Sector Alliance Kenya Association of Manufacturers Ministry of Agriculture, Livestock and Fisheries TECHNICAL TASK TEAMS-to help make implementation of activities more effective and to facilitate stakeholder engagement Knowledge Management and Advocacy Capacity Building (Technical & Institutional) Evidence-based results for Adaptation Private Sector Engagement STAFF COMPONENT Technical Advisor (National) Operations Assistant (Existing FAOKE staff) Finance Assistant (existing FAOKE staff) Procurement Assistant (existing FAOKE staff)

PAGE 14 OF 18 ver. 20 March 2017 The project will be implemented over a three-year period from 2017 to 2019 by the Food and Agriculture Organization of the United Nations (FAO)-the GCF Accredited Entity (AE) in collaboration with the Climate Change Directorate (CCD) under the Ministry of Environment and Natural Resources. A Project Steering Committee (PSC) shall be established to ensure operational effectiveness. The PSC shall be responsible for supervising project implementation and guiding activities through technical backstopping. The PSC shall be the highest decision making organ of the project. It will be co-chaired by the NDA, CCD, and the FAO. The PSC will comprise primary stakeholders of the Readiness project i.e. representatives of the National Designated Authority, Climate Change Directorate, National Adaptation Plan Thematic Working Group, Kenya Private Sector Alliance, Kenya Association of Manufacturers, Ministry of Agriculture, Livestock and Fisheries and the FAO. To ensure wider stakeholder participation during implementation, the project task teams will hold periodic consultative meetings with the Kenya Climate Change Working Group (KCCWG). KCCWG is a forum that brings together Civil Society Organizations in Kenya, donor partners, government departments and agencies working on climate change. The forum will provide a platform for creating synergies, harmonizing and strengthening of efforts in the implementation of activities, establishing strategic partnerships, accessing climate finance information from donors and lobbying and advocating for favourable national policies. The project s stakeholder engagement mechanism will build on the initial consultative process utilised during the project design and preparation phase. Regular consultation meetings will be held to ensure that all stakeholders are adequately engaged and their views taken into account during implementation. As the AE, the FAO will be responsible for financial management as well as overseeing the implementation and evaluation of the project in coordination with the PSC. All procurement and recruitment processes will be done in accordance with FAO s policies in consultation with the Executing Entity. For purposes of cost containment, the project will be operationally supported by existing staff of the FAO Kenya office. The operations staff will comprise: 1. Operations Assistant 2. Finance Assistant 3. Procurement Assistant The implication is that only a few months (11 months) of staff time will be charged to the project. The costs will be managed from the AE fees. A national consultant (Technical Advisor) will be locally recruited by FAO Kenya office to provide technical oversight and oversee overall implementation of the project. The FAO Kenya office has a Gender Expert who will provide guidance to the Technical Advisor and task teams on integrating gender dimensions into the overall project process. Where necessary or required, technical backstopping support will be sought from FAO Regional Office and/or headquarters. To make implementation of project activities more effective, four task teams/technical working groups shall be established as follows: a) Knowledge Management and Advocacy b) Capacity Building c) Private Sector Engagement d) Evidence-based Results for Adaptation The task teams shall provide technical support towards implementation of the various project components.

PAGE 15 OF 18 ver. 20 March 2017 4.2. Other relevant information Minutes of the stakeholders meeting held on 20 January 2017 has been provided as an attachment in the email. The meeting was convened by the NDA. Study on Assessing Institutional Barriers for NAP implementation in Kenya s Agricultural Sectors http://www.ke.undp.org/content/kenya/en/home/library/environment_energy/assessing-institutional-barriers-to- NAP/ DETAILED SCOPE OF WORK FOR THE GCF READINESS SUPPORT PROGRAMME Kenya is already implementing a Readiness programme (direct access and indirect access) focused on: strengthening the capacity of the NDA, institutional capacity building for national Accredited Entities and Executing Entities and preparing country programmes and project pipelines for GCF support. Within the first focus area, the scope of work includes: a) Strengthening of the NDA to be consistent with the Fund s Initial best-practice guidelines; b) Strengthening NDA capacity to fulfil 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. 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 safeguards; 7. Preparation of National Standard Procedures (NSP) and code of conduct for Accredited Entities 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 to communicate on Kenya and the GCF engagement; c) Strengthen NDA capacity to act as the primary communication channel with the Fund THEORY OF CHANGE The project aims at enhancing capacity for planning and effective implementation of climate change adaptation in Kenya while complementing other ongoing adaptation initiatives. To achieve this goal, four preconditions (intermediate outcomes) need to be fulfilled: 1. Technical and institutional capacities for adaptation planning and implementation enhanced. 2. Knowledge base for adaptation strengthened. 3. Evidence-base for climate change adaptation in agriculture improved and integrated in subsequent NAPs. 4. Private sector actively engaged and investing in the adaptation process. The above outcome areas are informed by the priority actions for the agricultural sector as identified in Kenya s National Adaptation Plan (NAP 2015-2030) and can be interpreted as the pillars of the ultimate goal. The four outcome areas are currently under-funded yet critical for effective climate risk management. First, adequate capacities are required to

PAGE 16 OF 18 ver. 20 March 2017 strengthen integration of climate change adaptation into development planning as well as inform the formulation of bankable adaptation projects/programmes for implementation at the national and county level within the agricultural sector, as well as across sectors. If capacities are strengthened for individuals, institutions and systems, indirect benefits are realized through better knowledge management and improved private sector participation. The consolidation of a knowledge-base on national adaptation planning by promoting the sharing of lessons learnt and best practices ultimately contributes to strengthening the evidence base for adaptation interventions. Since the private sector will be a key stakeholder in outcome 2, we see this as a positive aspect that will catalyse private sector engagement and investment in adaptation as envisioned in outcome 4. Hence the four outcomes are interlinked. To achieve the intermediate outcomes, the project has further identified and prioritized several important interrelated interventions (activities) through national stakeholder consultations with the aim of fostering change in a holistic manner. Details of activities are provided in the theory of change diagram below. Under the first outcome on strengthening capacities at the individual, institutional and systemic levels, the project will build on the on-going capacity development work under the USAID-funded Low Emission Climate Resilient Development (LECRD) project and the integrating agriculture in NAPs project, the latter being a collaborative initiative of the FAO and UNDP Kenya representations. Other activities that will support the realization of this outcome include: reviewing existing training material, developing a capacity development plan, training technical staff in all climate change units at both national and county level, equipping climate change coordination units with data analysis and information management systems, developing guidelines for gender-responsive budgeting and supporting implementation of the Kenya Climate Smart Agriculture Framework Programme (KCSAFP 2017-2026). Once the climate change coordination units are equipped with data and information management systems, the project will support the establishment of a strong coordination mechanism to ensure that the data and information management systems are linked with national, sectoral as well as county planning processes, and in particular to the 3rd Medium Term Plan (MTP III 2018-2022), County Integrated Development Plans (CIDPs) as well as existing Early Warning Systems. To strengthen the knowledge base for NAPs the project will conduct sensitization forums at both national and county level with a view to creating awareness among all duty bearers. Other activities will entail organizing national and international knowledge exchange forums, establishing a regional knowledge hub for adaptation, developing a compendium of adaptation programmes/projects to guide donor support and to enhance synergistic effects in adaptation planning and implementation. Lastly, in an effort to address the issue of limited/poor coverage of climate change by the local media in developing countries, the project has proposed the establishment of a regional climate change training programme for journalists. The programme will be developed in partnership with media, research and academic institutions. The project will further support the training and certification of journalists on climate change reporting. Activities under this outcome will complement activities proposed under outcomes 1, 3 and 4. Interventions under outcome 3 will contribute to evidence-based decision making for policy makers and development practitioners through a systematic process integrating climate, agriculture and livelihoods data, and carrying out cost benefit analyses that will be used to inform adaptation policies and investment decisions. Interventions under outcome 4 will contribute towards Kenya s INDC which stresses the need to build capacity among private-sector actors and to strengthen private sector participation in climate change adaptation initiatives, independently of whether or not these actors have a built-in social corporate responsibility unit.

PAGE 17 OF 18 ver. 20 March 2017

PAGE 18 OF 18 ver. 20 March 2017 SUSTAINABILITY OF THE PROJECT BEYOND FUNDING PERIOD Sustainability of the project is ensured at different levels. First, the project will be implemented in partnership with functional national institutions and hence ownership is ensured beyond the project s life. A major focus of this Project is to build the knowledge, capacity and institutional structures that Kenya requires to adapt to climate change over the long term. One of its key objectives is to strengthen both vertical and horizontal coordination of climate change adaptation by further establishing better communication channels and capacity for planning across agriculture and environmental (climate change) ministries at national and local level. The institutional sustainability will be ensured by coordinating with other technical working groups established with GCF support. Regarding financial sustainability beyond the project period, strategic partnerships will be identified and nurtured with donors, development partners and the private sector through the vibrant Kenya Climate Change Working Group (KCCWG). This linkage will be pursued through periodic consultative meetings between the technical task teams (established under the project, see implementation arrangement diagram on page 21) and the KCCWG. Donors that participate in the KCCWG meetings include DfID, USAID, DANIDA and SIDA among others. During the meetings, potential funding opportunities will be identified for purposes of upscaling and/or supporting emerging initiatives. Since the forum brings together multiple stakeholders, it provides a good platform for strengthening private sector engagement in adaptation through the establishment of public private partnerships as envisioned under outcome 4. Project concept notes to be developed under activity 4.4.1 will be informed by priority needs identified through stakeholder consultations. Other avenues for resource mobilization such as direct support from national and county governments will also be explored. Under outcome 1 for instance, the project will support the establishment of a strong coordination mechanism that will link climate data and information management systems with national and county planning processes such as MTP III and County Integrated Development Plans (CIDPs). The integration of these systems in CIDPs will ensure ownership by county governments. We see this as a positive thing that will foster direct support through national and county budgets. FAO will play a strategic role in providing technical support and in linking national and county governments with donors and development partners. GENDER EQUALITY Gender dimensions have been integrated throughout the project, to ensure that gender issues of climate change are reflected in the knowledge products, as well as to ensure that diverse viewpoints are reflected and different types of actors capacity is strengthened. By taking gender issues into account, the project is more likely to meet its objectives, as the knowledge products and related planning processes will more accurately reflect the existing socio-economic dynamics that shape people s adaptive capacity. In addition, the project will avoid reinforcing existing inequalities vis a vis access to knowledge and training by encouraging the participation and engagement of diverse stakeholders.

SECTION 4.1: BUDGET PLAN (FAO ORACLE FORMAT) EXPENDITURE AND IMPLEMENTATION SCHEDULE OUTCOME ACTIVITIES TOTAL USD 5011 Profesionnal 5013 Consultants 5014 Contracts 5021 5023 Trainings & 5024 Expandable 5025 Non- 5027 5028 6M 12M 18M 24M 30M 36M Travels workshops Procurement expandable TSS GOE Procurement Inception Workshop 7,186 7,186 Outcome 1: Technical and institutional 1.1.1. Review existing training 36,000 20,000 6,000 10,000 36,000 0 capacities for adaptation planning and 1.2.1 Train at least 500 men and 194,000 40,000 40,000 90,000 24,000 0 79,000 115,000 0 implementation in key Ministries, 1.3.1 Equip Climate Change 165,000 10,000 155,000 80,000 85,000 0 Department and Agencies (MDAs) 1.4.1 Develop guidelines for counties 53,000 16,000 3,000 34,000 53,000 enhanced. 1.5.1 Provide technical support to 327,038 60,000 190,000 40,000 37,038 75,000 150,000 102,038-0 782,224 0 136,000 190,000 96,000 147,224 58,000 155,000 0 0 36,000 154,000 345,000 187,038 53,000 0 OUTCOME ACTIVITIES TOTAL USD 5011 Profesionnal 5013 Consultants 5014 Contracts 5021 5023 Trainings & 5024 Expandable 5025 Nonexpandable TSS GOE 5027 5028 6M 12M 18M 24M 30M 36M Travels workshops Procurement Procurement Outcome 2: Knowledge base for 2.1.1: Conduct 8 NAP sensitization 197,000 35,000 45,000 55,000 62,000 60,000 50,000 87,000 adaptation strengthened. (This will 2.2.1. Organize at least one South- 122,000 7000 90,000 15,000 10,000 97,000 25,000 help sensitize members of civil society, 2.2.2: Establish a regional knowledge 103,000 101,000 2,000 60,000 43,000 researchers, private sector, academia, 2.2.3 Develop a compendium of 37,380 20,000 10,000 7,380 37,380 parliamentarians, representatives of 2.3.1 Review existing training 43,000 20,000 3,000 20,000 43,000 different sectors and CBOs on the NAP 2.3.2 Develop a regional climate 0 including the role of the sub-national 2.3.3 Conduct one ToT session for 18,000 6,000 4,000 8,000 18,000 government in its implementation). 2.3.4 Based on 2.3.1 & 2.3.2 above, 52,000 15,000 12,000 25,000 52,000 572,380-204,000-161,000 106,000 99,380 - - 2,000 60,000 153,000 185,380 52,000 97,000 25,000 OUTCOME ACTIVITIES TOTAL USD 5011 Profesionnal 5013 Consultants 5014 Contracts 5021 5023 Trainings & 5024 Expandable 5025 Nonexpandable TSS GOE 5027 5028 6M 12M 18M 24M 30M 36M Travels workshops Procurement Procurement Outcome 3: Evidence-base for climate 3.1.1. Develop an impact assessment 71,000 50,000 6,000 10,000 5,000 40,000 31,000 change adaptation in agriculture 3.2.1. Conduct eight training sessions 210,000 30,000 80,000 80,000 20,000 160,000 50,000 improved and integrated in 3.2.2. Review previous work on 45,000 40,000 5,000 45,000 subsequent National Adaptation Plans. 3.2.3 Document and disseminate 45,000 5,000 40,000 45,000 3.3.1: Document the lessons learnt 255,839 107,000 50,000 98,838.5 60,000 100,000 65,839 30,000 626,839-177,000 50,000 141,000 95,000 163,839 - - - - - 220,000 235,000 141,839 30,000 USD Profesionnal Consultants Contracts Trainings & Expandable OUTCOME TOTAL 5013 5014 5021 5011 5023 5024 5025 Nonexpandable 5027 5028 6M 12M 18M 24M 30M 36M Travels workshops Procurement TSS GOE Procurement Outcome 4: Private sector actively 4.1.1. Establish a local network of 87,000 52,000 5,000 20,000 10,000 40,000 37,000 10,000 engaged and investing in the 4.2.1. Conduct four sensitization 73,000 30,000 15,000 28,000 50,000 23,000 adaptation process 4.3.1. Identify the drivers for (and 20,000 16,000 4,000 20,000 4.3.2. Strengthen the institutional 40,000 40,000 40000 4.3.3. Foster a strong linkage 59,000 5,000 20,000 34,000 59,000 4.4.1: Support the development 91,000 60,000 11,000 20,000 of at 91,000 4.4.2: Establish at least three public- 66,000 7,000 2,000 20,000 66,000 37,000 436,000 170,000 0 53,000 126,000 0 40,000 0 47,000 0 40,000 110,000 119,000 167,000 0 6M 12M 18M 24M 30M 36M Consultant (Technical Adviser) 182,031 96000 347000 860380 593038 458839 55000 Contingency (up to 5%) 127,799 Sub-Total PROJECT 2,727,273 Delivery partner Fee (10%) 272,727 TOTAL PROJECT 3,000,000

5011 5013 5014 5021 5023 5024 Non- 5025 5027 5028 5029 TOTAL Profesionnal Consultants Contracts Travels Trainings & expandable Expandable TSS GOE Project workshops Procurement procuremen Support Outcome 1 136,000 190,000 96,000 147,224 58,000 155,000 0 0 782,224 Outcome 2 204,000 0 161,000 106,000 99,380 0 0 2,000 572,380 Outcome 3 177,000 50,000 141,000 95,000 163,839 0 0 0 626,839 Outcome 4 170,000 0 53,000 126,000 0 40,000 0 47,000 436,000 Consultant (Technical Adviser) 182,031 182,031 Contingency 81,818 30,000 15,981 127,799 Delivery partner Fee (10%) 272,727 272,727 TOTAL 950,849 240,000 451,000 474,224 321,219 195,000 30,000 64,981 272,727 3,000,000

BUDGET NOTES WITH BREAKDOWN FOR ALL COST CATEGORIES HARMONIZED WITH FAO ACCOUNT CODES OUTCOME 1 Consultancies (=5013) Activity Source Nature of services Unit (consultant) Units (working dadaily rate Total Budget 1.1.1 National One consultant (or firm) to review existing training materials and develop a capacity 1 50 400 20,000 development programme 1.2.1 National/International One consultant (firm) to deliver training course developed in 1.1.1 and conduct 10 tra1 60 lumpsum 40,000 1.4.1 National One consultant to develop guidelines for counties to do gender-responsive budgeting1 40 400 16,000 1.5.1 National Five national consultants to provide technical support to five counties to implement 5 30 400 60,000 the Kenya Climate Smart Agriculture Frame-work Programme (KCSAFP 2017-2030) Travel (=5021) Activity Source Nature of travel Unit (people) Unit (events) Unit cost Total Budget 1.1.1 National National travel to field test the training programme and curriculum 35 2 86 6,000 1.2.1 National National travel for training 45 11 81 40,000 1.3.1 National National travel to 47 counties for installation 2 47 106 10000 1.5.1 National Travel for county participants 45 5 178 40,000 136,000 96,000 Workshops/Training (Training = 5023) Activity Source Nature of meeting Unit (workshops) No.participants N.days Unit cost Total Budget 1.1.1 National Two venues: one stakeholders meeting and one validation workshop, 35 pax per mee2 35 2 2,500 10,000 1.2.1 National Ten venues for trainings for all 47 counties (clustered in 10 trainings), 45 pax per train10 45 3 3,000 90,000 National One venue for the inception workshop 1 45 2 3,593 7,186 1.4.1 National One venue for stakeholers workshop 1 40 1 3,000 3,000 1.5.1 National Venue for five technical backstopping meetings/workshops with relevant county offic5 45 1 165 37,038 Others Activity FAO Acc code Description Unit Unit cost Total Budget 1.2.1 (Exp procurement = 5024) Printing of training materials/visual aides Lumpsum 24,000 1.3.1 (Non-Exp procurement = 5025) Data analysis software for all Climate Change Units (CCUs), 50 CCUs. 50 600 30,000 1.3.1 (Non-Exp procurement = 5025) Data management information systems for 50 CCUs 50 2500 125,000 1.4.1 (Exp procurement = 5024) Printing (mass production of guidelines for dissemination in all 47 counties) Lumpsum 34,000 1.5.1 (Contracts = 5014) Grants with county Govts - 5 counties 5 38000 190,000 403,000 OUTCOME 2 147,224 Consultancies (=5013) Activity Source Nature of services Unit (consultant) Units (working dadaily rate Total Budget 2.1.1 National Two consultants (facilitators) to support eight NAP training workshops for all 47 coun2 50 350 35,000 2.2.1 National Consultant/facilitator for the South-South peer exchange 1 20 350 7,000 2.2.2 National Consultant (or firm) for system development Lumpsum 35,000 2.2.2 National/Internaitonal Knowledge management expert 1 200 330 66,000 2.2.3 National/Internaitonal Consultant to develop a compendium of adaptation programmes/projects involving 1 50 400 20,000 good and innovative approaches for the three countries 2.3.1 / 2.3.2 National/Internaitonal Consultant to review existing training materials and develop a regional climate 1 50 400 20,000 change training programme for journalists 2.3.3 National Consultant to conduct one ToT session for facilitators 1 15 400 6,000 2.3.4 National/Internaitonal Consultant to train 50 journalists at the county level (all 47 counties) 1 45 333.33 15,000 204,000

Travel (=5021) Activity Source Nature of travel Unit (people) Unit (events) Unit cost Total Budget 2.1.1 National Travel for participants - 8 clusters workshops 50 8 113 45,000 2.2.1 International International travel for 30 NAP focal officers from 15 countries to participate in a pee 30 1 3,000 90,000 2.2.3 National/Internaitonal Travel for consultant 1 3 3,333 10,000 2.3.3 National Travel for participants in the TOT 54 1 74 4,000 2.3.4 National Travel for participants 50 2 120 12,000 161,000 Workshops/Training (Training = 5023) Activity Source Nature of meeting Unit (workshops) N.participants N.days Unit cost Total Budget 2.1.1 National Eight venues for NAP sensitization/training workshops 8 50 3 2,292 55,000 2.2.1 National Venue for a three days workshop 1 45 3 5,000 15,000 2.3.1 / 2.3.2 National Three venues for stakeholders consultation meetings during programme developmen3 45 1 1,000 3,000 2.3.3 National Venue for a Training of Trainers; 20 Pax / four days 1 20 4 2,000 8,000 2.3.4 National Three venues for training of journalists, 20 pax per training; three days per training. 3 20 3 2,778 25,000 Others Activity FAO Acc code Description Unit Unit cost Total Budget 2.1.1 (Exp procurement = 5024) Printing/mass production of the NAP 2015-2030 for all the 47 counties, to be used dis2350 26 62,000 2.2.1 (Exp procurement = 5024) Communication and Visibility Materials Lumpsum 10,000 2.2.2 (Gen Op Exp = 5028) Miscellanous expenses Lumpsum 2,000 2.2.3 (Exp procurement = 5024) Printing of success stories documentation 350 21 7,380 2.3.1 / 2.3.2 (Exp procurement = 5024) Design & Printing of consultancy output Lumpsum 20,000 101,380 OUTCOME 3 106,000 Consultancies (=5013) Activity Source Nature of services Unit (consultant) Units (working dadaily rate Total Budget 3.2.1 National Consultant (firm) to conduct eight training sessions at the national and county level 1 40 Lumpsum 30,000 3.2.2 National to strengthen the capacity of climate change coordination units on using the consultant to review previous work on economics of climate change adaptation and 1 50 Lumpsum 40,000 3.3.1 National conduct a Cost and Benefit Analysis (CBA) of selected adaptation interventions Seven consultants (national and international) to review various sub-components of 7 45 339.68 107,000 the current National Climate Change Action Plan (NCCAP 2013-2017) with a view to 177,000 Travel (=5021) Activity Source Nature of travel Unit (people) Unit (events) Unit cost Total Budget 3.1.1 National Travel for participants 40 1 150 6,000 3.2.1 National Travel for participants 50 8 200 80,000 3.2.3 National Travel for stakeholders 25 1 200 5,000 3.3.1 National Travel for participants during county consultations to develop the next National Climate Change Action Plan 50 8 125 50,000 141,000 Workshops/Training (Training = 5023) Activity Source Nature of meeting Unit (workshops) N.participants N.days Unit cost Total Budget 3.1.1 National Venue for a stakeholders validation meeting (to validate consultancy output) 1 40 2 5,000 10,000 3.2.1 National Venues for the 8 trainings; 45-50 pax per training, 3 days per training. 8 50 3 3,333 80,000 3.2.2 National Venue for primary stakeholders workshop to validate consultancy outputs; at least fo1 25 3 1,666.67 5,000 Others Activity FAO Acc code Description Unit Unit cost Total Budget 3.1.1 (Contracts = 5014) Consultant (firm) to develop an impact assessment framework for adaptation interve1 Lumpsum 50,000 3.1.1 (Exp procurement = 5024) Printing and distribution of consultancy output 200 25 5,000 3.2.1 (Exp procurement = 5024) Training materials; 8 trainings; $2500 per training 8 2,500 20,000 95,000