Recent Economic Performance

Page 4

Ban on plastic bags takes effect

in Kenya

Page 8

Strategies for promoting National values & principles of governance

Page 9

Parliamentary contention on the two-thirds gender rule

Page 11

Policy MonitorSupporting Sustainable Development through Research and Capacity Building

ISSUE 9 NO. 1 JULY-SEPTEMBER 2017

KENYA INSTITUTE FOR PUBLIC POLICYRESEARCH AND ANALYSIS(KIPPRA)

Special Report

The Status of National Values and Principles of Governance, 2015

KIPPRA Special Paper No. 162016

Ban on Plastic Bags Finally Takes Effect in Kenya

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ContentsEditorial Team:• BernadetteWanjala• PaulOdhiambo• BoazMunga• AnnGitonga• JamesGachanja• JohnNyangena

Contributors: • BensonKiriga• FelixMurithi• JohnNyangena• AugustusMuluvi• AnnGitonga• EldahOnsomu• BoazMunga• NancyNafula• ChantalChweya

Layout:

Publishedby:KenyaInstituteforPublicPolicyResearchandAnalysis(KIPPRA)BishopsGardenTowers,BishopsRoadP.O.Box56445-00200,Nairobi,KenyaTel:+254204936000 +254204936000/ 2719933/4Fax:+254202719951Cell:+254736712724 +254724256078Email:monitor@kippra.or.keWebsite:www.kippra.orgTwitter:@kipprakenya

VISIONAninternationalcentreofexcellenceinpublicpolicyresearchandanalysis

MISSIONToprovidequalitypublicpolicyadvicetotheGovernmentofKenyabyconductingobjectiveresearchandanalysisandthroughcapacitybuildinginordertocontributetotheachievementofnationaldevelopmentgoals

Also in this Issue:Parliamentary Contention on the Two-Third Gender Rule ...................... 11Policy News ........................................13Current KIPPRA Research Projects ...16KIPPRA News and Events ..................17

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RecentEconomicPerformanceandGrowthProspects

BanonPlasticBagsFinallyTakesEffectinKenya

EstablishmentofKIPPRA

StrategiesforPromotingNationalValuesandPrinciplesofGovernanceinKenya.

Nicodemus Murimi

KENYA INSTITUTE FOR PUBLIC POLICYRESEARCH AND ANALYSIS(KIPPRA)

Special Report

The Status of National Values and Principles of Governance, 2015

KIPPRA Special Paper No. 162016

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WelcometotheJuly-September2017IssueoftheKIPPRA Policy Monitor.

The recent data released by the KenyaNationalBureauofStatistics(KNBS)indicatesslowereconomicactivityinthefirsthalfof2017comparedtoasimilarperiodin2016.This ismainlyattributedtoadverseweatherconditionswhichhadsignificantimpact on agriculture, the mainstay of Kenya’seconomy.Thelongrains,albeitinsufficient,togetherwith quick government intervention has stabilizedfood prices and thus easing inflationary pressure.However,theheightenedpoliticaluncertaintyfromthe prolonged electioneering period following theannulmentofthe8August2017presidentialelectionmaycompoundtheeffectsofdroughtoneconomicactivityinthesecondhalfof2017.

AsKIPPRAcelebratesits20thanniversarythisyear,this issue shares some insights on how the ideaof establishing a policy research think tank wasconceived leading to the establishment of KIPPRAthroughLegalNoticeof9thMay,1997.Itisclearthattheneedtobuildcapacityforevidence-basedpolicymaking process was a priority as the governmentimplementedinstitutionalandpolicyreformsunderthe structural adjustment programme. Severalpersonalitiesplayeda considerable roleduring theformativeyearsoftheInstitute.

A review of progress and challenges Kenya isfacing in promoting national values and principles

of governance is presented. The establishmentof National Values and Principles of Governance(INUKA) through Sessional Paper No. 8 of 2013,broadening of representation and leadership,implementation of devolution, and introduction ofMwongozo Code of Conduct are but some of theachievements made in promoting national valuesand principles of governance in Kenya. However,lack of awareness, low levels of compliance,weakinstitutions, corruption, high levels of inequality,low level of equity, relative under-representationof women in political leadership and weak citizenparticipation in decision making is undermininggovernment efforts in advancing national valuesand principles of governance. The article identifiesstrategies for promoting national values andprinciplesofgovernance.

In addition, the this Issue of the Policy Monitorhighlights challenges in meeting the two-thirdsgenderruleinKenya’sParliament.Thecountryisyettorealizethetwo-thirdsgenderruleinitslegislativearm despite the Constitutional provisions. Thoughthere was an increase in the number of electedwomeninthe8August2017generalelection,therewas a shortfall in meeting the two-thirds genderrule inboththeNationalAssemblyandtheSenate.The12thParliamenthastheopportunitytoexplorepragmaticandinnovativealternativestorealizethegenderrule.

This edition also highlights the rationale behindthe ban on plastic bags that came into effect on28 August 2017, lessons from other countries’ andsuggestionsforasuccessfulenforcement.

Forthisandmanymore,welcomeandreadon!

Executive Director, KIPPRA

The edition highlights challenges in meeting the two-thirds gender rule

in Kenya’s Parliament.

ISSUE 9 NO. 1 JULY-SEPTEMBER 2017

Editorial

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Recent Kenya Economic Performance and Growth Prospects

By Benson KirigaRecent economic performance

The first half of 2017 has recorded an average economic growth rate of 4.9% compared

to 5.8% in corresponding period in 2016. This is despite the second quarter recording a higher GDP growth rate of 5.0% compared to 4.7% in the previous quarter. All the economic sectors posted positive growth rates in the quarter, though at slightly lower rates compared to the first quarter save for agriculture sector which grew by 1.4% compared to a negative 1.1% in te first quarter. However, the key sectors that have continued to contribute significantly to the realized growth were accommodation and restaurants (13.4%), information and communication (9.2%), real estate (9.7%), transport and storage (8.2%), and construction (7.5%).

The second quarter also experienced sharp increases in food prices due to adverse weather conditions. Inflation averaged 10.8% compared to 8.8% in the first quarter, with the month of April registering a highest level of 11.5%. Although the long rains were insufficient, this together with timely government interventions eased pressure on

food prices, resulting to an average inflation of 7.5% in the third quarter.

The cumulative revenue collection including appropriation in aid increased to Ksh 1,400.6 billion by end June 2017 from Ksh 1,291.1 billion at end of June 2016. However, it remained slightly below a revised target of Ksh 1,455.4 billion mainly due to shortfalls in appropriation-in-aid collection and income tax. In addition, total expenditure and net lending increased to Ksh 2,110.0 billion by end June 2017 as compared to Ksh 1,768.5 billion end June 2016. However, this was below the target of Ksh 2,326.9 billion, which was attributed to low absorption levels in wages and salaries, operations and maintenance and appropriation in aid expenditures. As a result, by end June 2017, the fiscal balance on a commitment basis and excluding grants was a deficit of Ksh 709.4 billion (9.2% GDP). Total gross domestic debt stock increased by 16.4% while total external debt stock increased by 27.8%.

The current account deficit widened slightly in the second quarter of 2017 at Ksh 134.8 billion from the previous

quarter at Ksh 123.4 billion. This was mainly due to a 15.5% increase in imports valued on f.o.b (mainly food and petroleum products) as compared to a paltry increase in exports by 2.7% (mainly due to decline in value of domestic exports of medicinal and pharmaceutical products, cement and iron and steel). The merchandise trade deficit widened by 24.2% to Ksh 260.8 billion. However, receipts from international trade in services expanded by 20.1% to Ksh 128.1 billion mainly due to increased travel receipts which grew by 38.0% to Ksh 23.5 billion. Trade in services inflows posted a surplus of Ksh 38.9 billion in the same quarter. Diaspora remittances also increased by 5.1% to Ksh 47.6 billion in the second quarter as compared Ksh 45.3 billion in the first quarter of 2016. Comparing the surplus in the services account and the deficit in the merchandise trade balance, the net effect only led to the current account deficit expanding by 18.1%.

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The prolonged electioneering period, in addition to the persistent

demonstrations, is expected to have repercussions on economic activity in the second half of 2017. It is expected to take a toll on total investments as investors continue holding on investment decisions until actual settlement of the political environment. Moreover, the drought spell is expected to adversely impact on agriculture sector which is the mainstay of Kenya’s economy. In addition are the external risks that include the low economic growth of the trading partners;

Economic growth prospects for Kenya

low exports performance due to low value addition; and the increasing imports bill. The poor performance in the private sector credit is also adversely affecting investments thereby reducing the expected economic growth for the year.

Given these downside risks, the projected growth for 2017 is revised down to 5.6 per cent with the private investment also revised down to 0.7 per cent as shown in the table above. This projections are more optimistic compared to the IMF October 2017 economic outlook on

Kenya of 5.0 percent, which is attributed to, in addition, low diversification and low commodity prices. Economic growth is expected to get back to over 6.0 per cent in 2019. Private investments may take time to recover while government investments particularly the infrastructural projects are expected to continue growing supporting growth in economic activity.

Source: KTMM

ISSUE 9 NO.1 JULY-SEPTEMBER 2017

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The Establishment of Kenya Institute for Public Policy Research and Analysis

As KIPPRA celebrates two decades of its existence this year, we reflect on its

foundation. It is clear that the need to expand analytical capacity to support the policy making process within the government had been appreciated as far back as early 1970s. This was documented by a taskforce on strategies and practical measures for combating the problem of unemployment in Kenya which was appointed by the then President His Excellency Hon. Daniel Toroitich arap Moi on 30th March 1982. In its report, the taskforce observed that:

“We have been struck by the little amount of time available to the policy makers to think in the future and to consult each other, not so much on the day-to-0day issues, but on the long-term and broad issues facing the nation. We are aware that there are such portfolios as development coordination within the Office of the President, and even the Ministry of Economic Planning and Development, but we feel that there is an urgent need for and we therefore recommend setting up of a National Economic Council (NEC) which would advise Government on a regular continuous basis, on many of the economic issues that a normal Civil Service structure may be ill equipped to handle. This Council should be composed of a small number of reputable economists and or long experienced

Early responses to address the need for evidence-based research and policy analysis included efforts to train economists and other requisite disciplines through the Directorate of Personnel Management (DPM) with the support of bilateral and multilateral donors, and mostly at Masters degree-level. However, the public sector was unable to retain the highly qualified officials, and Kenya continued to rely on technical assistance funded through development partners.

The importance of rigorous policy analysis to inform and provide alternative views to policy makers came into increased focus following progressive openness and competitive politics in the early 1990s. New demands for policy opinions were emerging from diverse groups in the Kenyan community, including members of parliament, civil society, professional organizations, and interest groups, and more so during the period from 1991 when Kenya was implementing the Structural Adjustment Programme.

Although there were many agencies that were involved in socio-economic and political research in Kenya, few had a direct link with the government and could not respond to immediate policy needs. Further, there were many consulting firms with limited scope and operations that served a highly fragmented

administrators with a high powered secretariat and should form the “Think Tank” for the nation on all economic matters. We are convinced that there are people in the country with the necessary experience of insight to be able to play this role. We must not lose our capacity to dream and to see in the midst of the harsh realities of today, the vast opportunities of tomorrow”.

Later, in January 1991, a Presidential Committee on Employment proposed the creation of an institute of policy research within the civil service. The institute was to be autonomous but have a close working relationship with the government and private sector organizations. The anticipated institute was expected to promote continuous economic and social research. At the time, it was also observed that some of the elements of such an institute already existed in the form of the Long Range Planning Division in the Ministry of Planning. Since the Canadian International Development Agency (CIDA) funded the Long Range Planning Division, CIDA was requested to fund the new institute as a continuation of the Long Range Planning project. Unfortunately, there was a freeze on new CIDA projects in November 1991 and overall re-orientation of CIDA’s Kenya programme in 1993.

By Felix Murithi

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market. The national research institutes and universities were also engaged in highly academic work without specific focus on policy research, while there was a conglomeration of various types of non-governmental organizations (NGOs) generating information without the necessary analytical rigor. The foregoing factors lent credence to the establishment of a government think tank.

A number of personalities took up the idea of establishing a government think tank and embarked on the bureaucratic processes of creating such a body. Information on their specific contribution is scanty, but around mid-1997, Dr Kang’ethe Gitu, the then Director of Planning in the Ministry of Planning and National Development, spearheaded the preparation of proposal for the establishment of a public policy research institute, which was presented to the Cabinet by the then Head of Civil Service, Dr. Richard Leakey. Mr. Geoffrey West, an Economic Adviser with the European Commission STABEX project for Kenya was assisting the Ministry of Planning and National Development in the establishment of KIPPRA. Dr. Nehemiah Ng’eno, then (representing the Permanent Secretary, Office of the President) was a contact person in the Office of the President.

After several months of consultations and high level deliberations, the Kenya Institute for Public Policy Research and Analysis (KIPPRA) was established as a public institute through Legal Notice No. 56 of the Kenya Gazette of 9 May 1997. On 13th February 1998, the non-official Board members were named in a Gazette Notice No. 582. They included Prof. Gichaga (then Vice Chancellor of the University of Nairobi), Prof. Justin Irina (former Vice Chancellor of Moi University

and then secretary Commission for Higher Education), Mr Kassim Owango (then Executive/Vice President, East and Southern Africa Business Organization, also linked with the Kenya National Chamber of Commerce and Industry), Mr Dick Evans (then Chief Executive, Homegrown Ltd, a flower exporting company.

The first Board meeting was held on 18th March 1998 at the Conference Room on the 14th Floor of the Treasury Building and was officially inaugurated by the late Prof. George Saitoti, the then Minister for Planning and National Development. In his remarks, the Minister noted that there had been many delays in starting KIPPRA but it was important for the Board to make due haste in taking substantive decisions necessary to make the Institute operational. He expected the Board to ensure that KIPPRA recruited staff with skills needed to undertake high quality analysis on social and economic issues and to recommend appropriate strategies. He noted that the Government was establishing KIPPRA because it meets a national need. During the meeting Prof. Gichaga was nominated to chair and was formally appointed as Chairman of the Board on 22nd May 1998.

To secure the autonomy of the institute, KIPPRA was exempted from the provisions of the State Corporations Act through Legal Notice No. 114 published in the Kenya Gazette of 21st August 1998. However, immediately the Board of KIPPRA started operations, one of the permanent agenda items was to draft the KIPPRA legislation, so that the establishment of the Institute would be anchored in an Act of Parliament.

The process of recruiting the Executive Director began in earnest

in July 1998. However, it was not until June 1999 that Prof. Mwangi S. Kimenyi was appointed the first Executive Director of KIPPRA. To kick start the technical operations, Macroeconomic Division was established as the first research programme. This was later followed by establishment of Productive Sector Division, Social Sector Division, and Infrastructure and Economic Services Division. In preparations of the first Strategic Plan 2003-2008, the board and management identified “the need to provide young scholars with an opportunity to work on real policy issues with more experienced researchers and policy makers and prepare them for careers in public policy research and analysis”. This saw the first cohort of Young Professional programme recruited in 2003, establishing KIPPRA capacity building programme.

Initial funding for KIPPRA came from the European Commission. Later on, the African Capacity Building Foundation (ACBF) came on board, through a counter-funding arrangement with the Government of Kenya. The Government of Kenya in its 2001/2002 Estimates of Development allocated under Vote Item 188 of the Ministry of Finance and Planning Ksh 30 million for the operations of KIPPRA. In addition, Vote 189 of the same report allocated Ksh 10 million for the KIPPRA Endowment Fund. In the subsequent year, 2002/2003, Vote 188 was allocated Ksh 14.3 million while Vote 189 was allocated Ksh 35 million.

Since then the institute has witnessed tremendous growth in terms of capacity, scope and impacts. The KIPPRA Act was enacted in 2006, thus giving legal effect in pursuit of its mandate.

ISSUE 9 NO.1 JULY-SEPTEMBER 2017

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WhentheGovernmentofKenya issued a LegalNotice in 28th February 2017 banning the useofplasticbags,manyKenyansreceiveditwith

muchcynicismbecauseitwasthethirdtimeinadecadethat thegovernmentwasattempting toeliminatewhatis perceived as the country’s worst litter problemwithmanyadverseeffects.TheLegalNoticetookeffecton28th

August2017andoffendersfaceajailtermoffouryears,orafineofKsh4million.

Previous attempts to ban plastic bags were selective,targeting to regulate light weight carrier bags withthicknessoflessthan30microns,whichmademonitoringofcompliancenearimpossible.Thecurrentbancoversallplastic carrier bags commonly referred to as single-usebagswhich are used as secondary packages. However,materials used for industrial primary packaging aswell as disposal bags for handling of biomedical andhazardouswaste and garbage bin liners are exempted.This exemption is givenon condition that thematerialsareusedat thepointofproductionandarenot soldatthecounterorgivenforfree.Theyshouldalsobelabelled,including the identity of the end-user to improve theirtraceability. Those exempted are required to obtain aclearance from the National EnvironmentManagementAuthority (NEMA) to enable them continue with theiroperations. Tomopupunused stocks, collectionpoints

were designated at leading supermarkets, althoughno incentives have been provided to encourage theirdelivery.

Kenya’s ban hinges on the 2010 Constitution thatguarantees every citizen the right to a clean andhealthy environment. It also buttresses the country’scommitment to a green economy as envisaged in theGreenEconomyStrategyandImplementationPlan2016-2030.Animportantdriverofgreengrowthissustainableproductionandconsumptionbehaviourswhichminimizesthe impacts on the environment as envisaged in theSustainableDevelopmentGoalNo.12.

Disposal of plastic bags has been the biggest probleminKenya.AccordingtoUNEP,closeto100millionplasticbagsaregivenouteveryyearinKenyabysupermarkets,mostofwhichendupingarbagebins.Itisawell-known

fact that plastic bags are non-biodegradable and canlastmore than 100 years in the soil, hence reducing itsfertility.Theyareeasilyblownawaybywindandgetfixedontreesandplantbranches.Otherplasticsaredepositedin ditches along roads and obstruct the sewer system.Plastics deposited on public water ways end up in theoceanandposearisktomarinebiodiversity.Asaresult,notonlyaretheyathreattothehealthoftheanimalsandmarinelifebutarealsoavisualeyesore.

Manufacturers under the umbrella body of the KenyaAssociation of Manufacturers (KAM) lobbied againstthe regulations arguing thatwithmore than 170plasticmanufacturingindustriesemployingover60,000people,thebanwouldresultinlossofjobsandincomeasmostoftheseindustrieshavetocloseshop.Inaddition,KenyaisamajorexporterofplasticmaterialsintheregionwhereinKsh10billionworthofplasticswereexportedin2016.In order to save themanufacturers from closure, KAMproposedaplasticlevyinsteadoftotalban.

Kenya has joined more than 40 other countries in theworld that havebannedor regulated the useof plasticbags using environmental taxes. In Africa, Rwandaand Morocco have already banned plastic bags whileBotswanaandSouthAfricahaveimposedenvironmentaltaxestoregulatetheiruse.Inthelattercase,lightweightplastic bags were banned while a levy was added onheavyweightbagstomakethemcostlyandreducetheirconsumption.

Rwanda outlawed the manufacture, use, importationandsaleofthebags in2007,making it thefirstcountrytodoso inAfrica.Retailersand individualsviolatingthelawfacestifffines includingariskof imprisonment.Theenforcement measures include undertaking search ofmanufacturers, imports including individual travellers attheentrypoints.Althoughthismoveresultedinreductionofthequantityofplasticbagsused,casesofblackmarkethavebeenreported.

Morocco’sbancameintoeffectinJuly2016aspartofthecountry’seffortstogogreenbyreducingenvironmentalimpactscausedbyimproperdisposalofplasticbags.Likein Rwanda, the ban prohibits the production, import,saleanddistributionofplasticbags.Thefirstattemptin2009 failed because authorities did not curtail informalproduction.

In2007,Botswanaintroducedaplasticlevywhichcausedapriceincreaseof31%tocurbthedemandforplasticbagswithlessthan24microns.After18months,thedemandforplasticbagfellbyhalfcomparedtopre-levyconsumption.Inresponse,shoppersincreasedthevolumeofshoppingcarriedperbag.AlevyintroducedinSouthAfricaresultedin a temporary drop as consumption increased again.

Cont. P11

Ban on Plastic Bags Finally Takes Effect in KenyaBy John Nyangena, Augustus Muluvi and Ann Gitonga

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Kenya’sVision2030acknowledgesthatnationalvaluesareimportantforoveralldevelopment.TheVisionstates that“Kenyashall formulate

andadoptacoresetofnationalvalues…”andtheseset valueswere later espoused in theConstitutionpromulgatedin2010.Article10(2)oftheConstitutionofKenyaprovidesthenationalvaluesandprinciplesof governance as follows: a) Patriotism, nationalunity,sharinganddevolutionofpower,theruleoflaw,democracyandparticipationofthepeople;(b)human dignity, equity, social justice, inclusiveness,equality, human rights, nondiscrimination andprotectionofthemarginalized;(c)goodgovernance,integrity, transparency and accountability; and (d)sustainabledevelopment.

Consequently, Sessional Paper No. 8 of 2013 onNational Values and Principles of Governance(INUKA)notonlyespousedbutalsooperationalizedandinstitutionalizedthecountry’sNV&PG.ThepolicyvisionofINUKAistohave“avaluedriven,peaceful,united and prosperous nation.” The broad policypillarsthatguidetheoperationalizationofNV&PGasespousedbyINUKAare:(i)thecreationofastrongnational identity; (ii) effective representation andleadership; (iii) equitable allocation of resourcesand opportunities; (iv) good governance; and (v)promotionofsustainabledevelopment.Eachofthepillarsfrom(i)to(iv)mapsintotherespectiveNV&PG(a)through(d)asespousedintheConstitution.

Despite the relatively robust frameworks forentrenching national values and principles ofgovernance, the country is currently facingmyriadchallenges which have undermined the status ofour NV&PG. These challenges/opportunities areexamined in correspondence to eachof thepolicypillarsidentifiedinINUKA.

Evidence indicates that Kenyans have a strongattachment to the nation as expressed by theirhigh levelsof“pridetobeKenyan”.However, thisstrong national identity isweak among individualswhoperceivethattherearehighlevelsofinequalityinthedistributionofpublicgoods.Inthesamevein,evidence indicates that the equitable allocationof resources and opportunities is still a key

challenge.Therelatively low levelofequitycanbecorroborated by unequal access to various publicgoodssuchaselectricityandimprovedwateracrossKenya’s counties. Even so, these challenges, arelikelytobemitigatedbydevolutionandtheefficientimplementation of ongoing initiatives such as theequalizationfund.

Asregardseffectiverepresentationandleadership,goodprogresshasbeenmade inmany spheres.Akey challenge is the relative under-representationof women particularly in political leadership. Asan example, fewer than 20% of memberships ofthe National Assembly in the 11th Parliament werewomendespitethetwo-thirdsgenderrule.

Good governance is about managing publicresources effectively, efficiently and in responseto critical needs of communities. Indicators ofgood governance include: accountability, absenceof violence, rule of law and control of corruption.PublicInstitutionshaveputinplacevariouspoliciesand statutes to improve good governance inKenya. These include: the Mwongozo code whichaddresses matters of effectiveness of boards; thereview of organizational structures; adoption ofe-procurement;assetdeclaration;andexecutionofperformance contracts and appraisals. There areimmenseopportunitiestoenhanceservicedeliverybyincreasingMinistries,DepartmentsandAgencies(MDAs) presence in the e-citizen platform (giventhatonly15%hadpresenceinthee-citizenplatformin2016).

Additional challenges affecting the entrenchmentofNV&PGthatareamenabletopolicyinclude:lackof awareness – where 41.0% of households werenot aware of NV&PG; low levels of compliance;and weak enforcement of NV&PG. With respectto compliance, evidence indicates that only 47.4%of staff in all public and private institutions had

By Eldah Onsomu, Boaz Munga and Nancy Nafula

Kenyans have a strong attachment to the nation as expressed by their high levels of “pride to be Kenyan

CONT. PAGE 10

ISSUE 9 NO.1 JULY-SEPTEMBER 2017

Strategies for Promoting National Values and Principles of Governance in Kenya

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beensensitizedandtrainedonNV&PGonaregularbasis by 2015. This is despite the commitment to“continuouslearninginordertoadvanceknowledgeandproperapplicationoftheNV&PG”asenvisagedbySessionalPaperNo.8.Theenforcementrelatedchallenges affecting existing frameworks include:weak institutions, corruption and inadequatecitizen participation in decision making. Theseenforcement frameworks include institutions suchasParliament,theExecutive,NationalPoliceService,IndependentPoliceOversightAuthority,EthicsandAnti-Corruption Commission, Efficiency MonitoringUnit,AuditorGeneral,ControllerofBudget,andtheOmbudsman.

Lessonsfromothercountriesrevealthataddressinginequality, or perceptions of inequality is a robustapproach to enhancing patriotism and nationalunity and hence NV&PG and social cohesion. Thiscanberealizedpartlybyongoingeffortssuchastheequalizationfundandconsiderationofconsociationsystemsof governance such as in Switzerland andFinlandwhereallsocietalgroupsincludingminoritieshaveguaranteedrepresentationingovernance.

In addition, creating awareness is important inpromoting NV&PG. Effective interventions wouldcall for initiatives encompassing early formationofvaluesinthefamiliesandinschool.Kenyacouldapplyspecificnationbuildingpoliciessuchasamoreeffectivequotasystemofeducationcombinedwitha school curriculum that taught national values inTanzania.AkeysuccessfactorforTanzaniawasthattheprocesswaschampionedbyitsfirstpresident.Inaddition,thegovernmentscandesignandimplementcomprehensive and targeted civic educationprogrammesonNV&PGacrossallcounties.VariouslawsandpoliciesincludingtheConstitutionprovideforinstitutionsandprocessesfortheconductofciviceducation and facilitation of citizen participation.If well implemented, these channels are likely toincreaseeffectiveness increatingawarenessaboutGovernmentpoliciesandstrategies ingeneral,andNV&PGinparticular.

Thegovernmentshouldensurecompliancethroughstronger commitment to integrity, ethical valuesand the ruleof lawamongall citizensat all levels.To further entrench compliance, training and

merit-based recognition of attainments shouldbe adopted. Compliance and enforcement withNV&PG should also be integrated into the StateCommendations awards; introduction of rewardsandsanctionsforthosewhoviolatetheNV&PG;andcurbingcorruption,bystrengtheningpublicfinancialmanagement. There is need to ensure adequatefunding for training, enforcement, monitoring ofNV&PG and evaluation of effectiveness of variousinterventions and continuous monitoring andevaluation of programmes that promote nationalvaluesatalllevels,includinginstitutionallevels.

The government should ensure compliance through stronger

commitment to integrity, ethical values and the rule of law among

all citizens at levels.

FROM PAGE 9

KENYA INSTITUTE FOR PUBLIC POLICYRESEARCH AND ANALYSIS(KIPPRA)

Special Report

The Status of National Values and Principles of Governance, 2015

KIPPRA Special Paper No. 162016

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Similarly,aplastictaxintroducedinBangladeshin 2002 has not succeeded as evidenced bylitteredstreets.

In Ireland,a levy introduced in2002onsingle-use plastic bags has led to a reduction ofnearly 95%. The European Union (EU) in April2015 introduced a directive aimed at reducingthe consumption of lightweight plastic carrierbags. The directive has been in effect sinceNovember2016.TheEUMemberstatesareatlibertytoidentifytheeconomicinstrumentstocurbconsumption.Itisreportedthatanumberof EU countries no longer use plastic carrierbagsattheirsupermarketswhilecountriessuchas France and Italy have banned plastic bagsaltogether.

ItisstilltooearlytoevaluatetheeffectivenessofthebaninKenya.However,basedonlessonsfrom other countries the following is worthhighlighting:

• Thebanisthefirststepinmanagingplasticwastedisposal.Tobeeffective,NEMAneedsto stringently monitor its compliance. Inthesamevein,effortsshouldbeputplaceto createpublic awareness so as to avoidillicittradeofbannedmaterials.

• Manufacturers should be encouraged toproduce alternative biodegradable bagsusingabundanceofnaturalresourcessuchascotton,sisal,wool,bambooandhyacinthwhichpresentgoodenvironmentalfriendlyalternatives.Thiswillincludeleveragingonthe “Presidential or other award systemfor novel innovations” provided in theScience, Technology and Innovation Actno.28 of 2013. Manufacturers could, forinstance, receive a monetary award fornovel innovationsthatofferanalternativetoplastics,whichshouldnotbe limitedtocarrier bags but other plastic containers.The incentives should target enhancingcapacity of the youth to produce for thelocalmarketwhichispartiallybeingmetbyimports.

• Considering the lifespan of plastic bags,thereare large stocksalready in the soils,water bodies, or littering in the openenvironment. NEMA should design aprogramme in collaboration with Countygovernmentstohelpmopuptheseplastics.

In summary the plastic bag ban should formpartofthewiderwastemanagementpolicy inKenya.

CONT. FROM PAGE 8

Parliamentary Contention on the Two-Third Gender Rule in Kenya

The Constitution of Kenya (2010) champions an affirmativeaction that provides for equality and freedom fromdiscrimination.ThisisanchoredinArticle27(8)“theStateshall

takelegislativeandothermeasurestoimplementtheprinciplethatnotmorethantwo-thirdsofthemembersofelectiveorappointivebodiesshallbeofthesamegender.”Furtherreiteratedunderthegeneral principles of the electoral system in Article 81(b) is that“Notmorethantwothirdsofthemembersofelectiveorappointivebodiesshallbeof thesamegender.”Kenya isalsoasignatory tointernational and regional agreements including: the UniversalDeclarationofHumanRights,BeijingDeclarationandPlatformforAction,AfricanUnionProtocoltotheAfricanCharteronHumanandPeoplesRightsontheRightsofWomeninAfrica(MaputoProtocol)andSolemnDeclarationonGenderEqualityinAfrica,andthereforehas to uphold championed principles such as attaining equitablegenderrepresentationinParliament.

Thisnotwithstanding, therepresentationofwomen inParliamentremainslow.Inthe10thParliament16womenwereelectedoutofthe 210memberswhile sixwere nominated out of 12 nominatedseats.The11thParliamentwhichimplementedthe2010Constitutionsaw 16 women elected in the National Assembly out of 290membersandfivewomenwerenominatedoutofthe12nominatedseats. In addition, therewere 47 electedwomen representativesand 18women nominated in Senate. This translates to less than25%ofwomenrepresentationinParliament,ascomparedto64%inRwanda,morethan40%inSenegal,SeychellesandSouthAfricaandover35%inMozambique,Angola,TanzaniaandUganda.

Although there was a steady increase in the number of womenrepresentationinthe12thParliamentaftertheAugust2017generalelection, there was no compliance with the two thirds genderprinciple. With only 23 elected MPs, six nominated MPs, and 47womenrepresentatives, therewasashortfallof41 frommeetinggender parity. Only three women were elected in Senate whotogetherwith18nominatedwomenhadashortfalloftwotomeetthegenderparity rule.At the county level, only96womenwereelectedoutof1,450membersofthecountyassemblytogetherwiththreewomengovernors.Meanwhile,afterthe2013parliamentaryelectionsinRwanda,womencomprisedof49outof80membersinthelowerhouseand10outof26membersinitsupperhousewhichwashigherthantheminimum30%quotaforwomenasprovidedforinthe2003Constitution.

ISSUE 9 NO.1 JULY-SEPTEMBER 2017

By Chantal Chweya

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Implementation of the twothirds gender rule is underminedby absence of a legislation tooperationalize Article 81(b) of theConstitution.Afterpromulgationofthe2010ConstitutionofKenya,therewas a proposal for a ConstitutionalAmendment 2011 so that extrawomen representative seats arecreated in case the principle is notcomplied with through electoralprocess.However,thiswastohavesignificant budgetary costs. TheAttorneyGeneralsoughtanadvisoryopinionfromtheSupremeCourtofKenyathroughareferencedated8thOctober2012whichheldthatgenderequityasanaffirmativeactionrightforwomenisprogressiveinnature.As such, Parliament was requiredto provide for mechanisms toimplement the two-third-genderprinciplebyAugust2015.

Thetwo-thirdsgenderruleundertheConstitutionofKenya(Amendment)Bill 2015 was introduced andpublishedon24thJuly2015seekingtoestablishaclausetoprovideforthenomination, fromparty lists, of thenumber of members necessary toensure that themembershipof theNational Assembly and the Senatemeet the gender requirement. Toguaranteethatthisaffirmativeactionisnotpermanent,theBilllimitedtheapplicationofthismechanismto20yearswithapossibilityofextensionforafurther10yearsiftheminimumgenderquotaisnotachieved.Italsolimitedtotwotermstheperiodthat

one may be nominated under thismechanism. The bill required thatnominations by political partiesbe based on fair and competitiveprocedures.

Thesecondreadingandvotingwasheld on 28th April 2016. Althoughthe Speaker tried to ensure therewas at least a minimum numberof members to pass the bill, theNationalAssemblystillfailedtopassit.Thebillwassubmittedforavoteagainon5thMay2016but the totalnumber of members present wasless than the requiredminimum topasstheamendment.ThePresidentin demonstrating his commitmenttocompliancewith thegender ruleasked the majority leader to rallysupport on passing the bill but bytheexpiryofthe11thParliament,thegender bill had not been passed.Parliamentarians argued that thecostof implementing the twothirdgender rule would cost tax payersa lot of money. Lobby groups,followingthe2017generalelection,filed a suit against Parliament,to which the High Court gaveParliament 60 days to enact thelegislation.

Even if the 12th Parliament wasto pass the Gender Bill in Kenyawithin the specified time by theHigh Court, the gender principle inParliament may only apply in thenextgeneralelection.Inthisregard,thereisadequatetimetostrategizeon how to improve the number of

electedwomen.Itisimportantthatwomen build a strong movementincluding engaging in cross-partyplatforms to unite women beyondparty lines by rallying them arounda common agenda. Women alsoneed to register as members ofpolitical parties and become activemembers.Thatsaid,theyalsoneedto identify male allies to help inlobbying the implementation ofquota provisions. Further, genderresponsivecivicandvotereducationshould share information withwomenandthecommunityatlargeon theneed forwomen to takeupleadershippositions,aswellasbuildcapacityofwomentoenhancetheirengagementinthepoliticallife.

While the establishment of theNational Gender and EqualityCommission(NGEC),aconstitutionalcommission mandated to promotegender equality, is a step in theright direction, political goodwill is required to ensure thereis compliance to the genderprincipleatalllevelsofgovernmentincluding MDAs. Kenya can drawsome lessons from Rwanda’sexperience. Rwanda has managedto implement the gender principleby having gender sensitive quotas,aninnovativeelectoralstructureandparticipationofpartnerinstitutions.Forexample,theNationalWomen’sCouncil (NWC)which isa forumforwomen participation in nationaldevelopment and governanceengages women from the age of18 years and provides them withcivic education on the importanceof political participation. Further,NWCtrainswomenoncampaigning,buildingself-esteemandconfidenceandpromotinggenderequality.Thegovernment has also established aGenderMonitoringOfficemandatedtomonitor,adviceandadvocateforgender equality in all institutionsin the country. Moreover, thereis a strong political will by thegovernment topromoteaspectsofgenderequality.

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Policy NewsDomestic Policy NewsLegislative developments

In the first quarter of 2017/18, thePresident signed eight bills into lawon21st July2017.ThePresident’sAwardAct 2017 establishes the President’sAwardBoardofTrusteestoregulatetheawards.Italsoprovidesforconferringofawardstoyoungpersonswhoundertakevoluntary activities which encourageself-development,growthandservicetothecommunity.

The Companies Amendment Act 2017seekstoamendtheCompaniesAct2015toconformtootherlaws,globaltrendsandbestpractices.Thiswillensureeaseof doing business, protect minorityinvestors and clarify ambiguities in theAct.

The Traffic (Amendment) Act 2017amends theTrafficActbyproviding forroad safety near schools and promotechild safety in motor vehicles. Theamendment introduces 50KM/h speedlimitnearschools.OffendersareliabletofinesofKsh20,000.Inaddition,vehiclestransporting children should meet theprescribedstandard

The Kenya National ExaminationsCouncil (Amendment)Act 2017amendstheKenyaNationalExaminationsCouncilAct to ensure integrity in examinationand education system. The Act createsan offence against an officer of theCouncilwhose omission or commissionleads to examination irregularity. Theoffencewillattractapenaltyof5yearsinjailorafineofKsh5millionorboth.

TheParliamentaryPowersandPrivilegesAct gives effect to Article 117 of theConstitution that provides that thereshallbe freedomofspeechanddebatein Parliament. The Act provides forpowers, privileges and immunitiesof Parliament, committees, leader ofmajority, leader ofminority, chairs andmemberscommittees.

The Occupational Therapists (Training,Registration and Licensing) Act makesprovision for training, registration andlincensing of occupational therapists.The piece of legislation also regulatestheir practices and establishes theOccupational Therapists Council ofKenya.Inaddition,theActprescribesthequalifications of registered therapistsandestablishesadisciplinarycommittee.

KenyaTradeRemediesAct2017providesfor the establishment of Kenya Trade

Other Domestic NewsSocial sector challenges

The health sector has beenencumbered by nurses’ strike since

5thJune2017affectingnearlyallcounties.Broadissuesofthestrikerevolvearoundthe failure to implement the nurse’sCollective Bargaining Agreement (CBA)anddelayedsalaries,unpaid internship,and discrepancies in remuneration. Akeypathtoendtheimpasseistoensurewell-structurednegotiationsamongtheparties including the health workers,theMinistryofHealthandtheCouncilofGovernors.Partofapromisingsolution

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Remedies Agency for the investigationand imposition of anti-dumping,countervailingandsafeguardmeasures.TheActwillalsoenablethegovernmentto take necessarymeasures to protectdomestic industries from foreigncompetition and unfair trade practicesarising from dumping, subsidizing andimportsurges.

TheInternationalFinancialCentre(NIFC)Act 2017providesa legal framework tofacilitateandsupportthedevelopmentofagloballycompetitivefinancial servicessector. This is expected to enhancenational savings and investments. TheAct establishes a Nairobi InternationalFinance Centre Authority in line withVision 2030’s financial inclusion policyprescription.

On6thJuly2017,thePresidentassentedintoAct theRevenueAllocationBill forthe financial year 2017/2018. CountygovernmentswillgetatotalallocationofKsh341billion,anincreasefrompreviousyear’sallocationofKsh302.2billion.Thisincludes Ksh 302 billion of equitableshare of national government revenue,Ksh23billioninconditionalgrantsfromthe national government and Ksh 16.4billion in conditional allocations fromloans and grants from developmentpartners.

is to establish a coordinating agencyof professionals within the industry asenvisagedintheKenyaHealthPolicy.

AccordingtotheWorldEconomicForum(WEF)HumanCapitalReport2017,Kenyaranks78outof 130countriessurveyed.The report looked at four key areas ofhuman capital development, namely:capacity,deployment,developmentandknow-how.KenyawasrelativelyweakintheKnow-Howsub-index,definedasthe“breadth and depth of the specializedskillusedatwork”andtheDevelopmentsub-index, defined as the “formaleducation of the next generationworkforceandcontinuedup-skillingandre-skillingofthecurrentworkforce”.

Financial stability and development

To enhance cyber security in thefinancial sector, commercial banks

are expected to begin implementing30th November 2017 the new cybersecurity guidelines thatwerepublishedby Central Bank of Kenya (CBK) inAugust 2017. The guidelines are meanttomitigate the growing risks of cyber-attacksbanks facegiven the increasingexposure on digital banking channels.This will also increase resilience to ITfailures and cyber security incidents,includingorganisedfraud.

TheCBKandKenyaBankersAssociation(KBA) have launched a Cost of Creditwebsite which provides informationon fees and charges relating to loanproductsprovidedbycommercialbanksandmicro finance institutions in Kenya(http://www.costofcredit.co.ke/).

TheCapitalMarketsAuthority inKenyahasapprovedaPolicyGuidanceNotetofacilitate the issuance/listing of GlobalDepositaryReceiptsandNotes.Aglobaldepositary receipt (GDR) or globaldepositary note (GDN) is a negotiablecertificate issued, listed and traded ona securities exchange and representssecuritiesissuesinanothercountry.TheobjectiveofGDR/GDNistoraisecapitaldomesticallyandinternationally.

The mVisa, a mobile solution thatfacilitates e-commerce and electronic

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payment through a QR-based paymentservice, is as of 2017 available in India,Kenya and Rwanda. InterswitchEast Africa, a transaction switchingand electronic payments processingcompany, announced that they willupgradethedigitalbankingapplicationsto include mVisa and allow moremerchantsacceptthepaymentmode.

Drought effects

Projections show that about 3.4million Kenyans are likely to face

starvation as the production of thecountry main staple food plummets.Drought and infestation of fall armywormhasaffectedmaizeproduction ingrain basket counties. In response, thegovernment has programmed Ksh 6billiontobuymaizefromfarmersduringthe harvest season for the strategicfood reserve to improve food security.The programme also aims to boostthe country food security and sustainaffordablepriceformaizeflour.

Data from the Sugar Directorateindicates that sugar production in thefirstsixmonthsof2017droppedby40%from 337,826 to 202,023 tonnes. Thelow production was attributed to theprevailing cane shortage inmost sugargrowing areas occasioned by drought.Thecountryhasimportedenoughsugarstocks to run for the next fivemonthsensuringstablepricesfortherestoftheyear.

Drought in ASAL counties has seenpastoralists in Isiolo County dividetheir rangelands into grazing blocksas a strategy tomitigate the effects ofdrought. The blocks cater for grazingduring the rainy season, moderatelydry spell, and extremely dry period bycontrollingthemovementofpastoralistsandmanagementofwaterandpasture.Although the communities have beenpracticingthissystemovergenerations,it has been eroded by the adoption ofmodernpublicadministrationstructures.The system is overseen by a council ofelders ‘Dedha’who are responsible forenforcing rules and regulations withregard to livestock mobility. In KajiadoCounty, farmers are being encouragedtoinsuretheirlivestockagainstdrought.

Infrastructuredevelopment

Kenya requires about Ksh 1trillion a year to create a 21st

century transportation, water, andcommunications as well as electricityinfrastructure system. This is accordingto G20’s Global Infrastructure OutlookReport that calls on policy makers tohelp“closetheinvestmentgap.”

TheGovernment of Kenya through theKenya Civil Aviation Authority (KCAA)has recently allowed 20 African andEuropean airlines to start direct flightsto the country. This is in line with theplanned launch of an African singleair transport market in January 2018in which more than 40 countries areexpectedtobesignatories.Thesingleairtransportmarketaims toboostAfricannations’ tourism,economicgrowthandeconomicdevelopment.Similarly,KenyaAirwaysiseyeingNewYorkCityasitsfirstdestinationwhen it starts direct flightsto the US next year before expandingnetworks across the world’s biggesteconomy. This follows the airline’sreceiptofaforeignaircarrierpermiton5th September from the United StatesDepartmentofTransportation(DOT).

In the energy sector, KenyacommissionedanelectricitytransmissionlineinAugust2017toaccesscheappowerproduced at the Olkaria geothermalfields inNaivasha for the Coast region.Thiswillseereducedrelianceonthermalpower plants which is expected to cutthe fuel cost charge component in theelectricity bill. In addition, the Energy(SolarWaterHeating)Regulations 2012are set to come into effect by end ofOctober 2017. The regulations compelallbuildingsusingover100 litresofhotwater to install solar water heatingsystem. This applies to buildings, bothpublic and private, and is expected toincreasedemandforsolarproductsthuspromote renewable energy sourceswhilereducingusageofpowerfromthe

nationalgrid.

Business Environment

Kenya has ratified a double taxationagreement with India to attract

moreinvestmentwhileprovidingforthesharing of fiscal information betweenthe nations to eliminate tax cheatsin the two countries thus enhancingtax compliance. The Agreement wasratifiedbytheKenya’sNationalTreasurythrough Legal Notice No. 147 of 2017.Theagreementaimsattheavoidanceofdouble taxation of commercial entitiestradinginbothNairobiandNewDelhi.

There are new anti-counterfeitingmeasures reported, including: a DeviceManagement System to be deployed

Policy Newsby Communication Authority of Kenya(CA) to curb counterfeits and phonemodels that have not been typeapproved towork in Kenya; and a Pre-ExportVerificationofConformity(PVoC)to Standards programme by KenyaBureau of Standards in partnershipwith the Kenya Pharmacy and PoisonsBoard to inspect all imported medicaldevices, food supplements, medicalcosmetics, and herbal products andissuing a Certificate of Conformity tocombat substandardand/or counterfeitimported products that do notmeet local standards and technicalregulations. To address piracy, theKenyaCopyrightBoardplanstocombatillegalproductionandsellofmusicandmovies without proper authentication.Authentic products are supposed tohave the Board’s tamper proof stickerwith a hologram and a product uniquebar code failure of which attracts apenalty.

Trade

Establishment of nationalcommodities exchange by June

2018 in Kenya is expected to protectcross-border traders from exploitationby middlemen, promote efficiency indomestic and regional trade, attractmore investors and create jobs. Thecommodity exchange will involvethe use of regional warehouses withmodern facilities where farmers andtraders can take their products tominimize on storage wastage. Thestructure is meant to operate in thelargerEastAfricanregion,withRwandaalreadyrunningacommodityexchange.Kenya and Uganda are laying legaland infrastructural structures for thesuccessful operation of the commodityexchange.

Online shopping commerce in Kenyahas picked up with the entry of anumber of platforms including Jumia,OLX, Pigiame, Kilimall, among others.Increased penetration of internet inKenyawhich standsat85%as reportedin the Communications Authority 2015-2016annual report reduced thecostofsmartphones fromanapproximateKsh25,000toKsh10,000andtheimprovingprice of data favours Jumia onlineshopping. Online trading is seen as away to revitalize Kenya’s retail sectorthathasseenincreaseofemptyshelvesin supermarkets and closure of giantsupermarketbranches.

Policy NewsGlobal Policy News

EastAfricaCommunity

Tanzaniaissettolaunchtheworld’slargestdronedeliverynetworkin2018todeliverbloodandmedicinestowomengivingbirthandchildrenstruckby

malaria.Besidescuttingontimetakentodeliversupplies,itisestimatedthatthedroneswillcutthedrugdeliverybillforTanzania’scapital,Dodoma,oneoftworegionswheretheprojectwillfirstrollout,byUS$58,000ayear.

The EAC states envisage upgrading their 30,000 kilometre road network tobitumenstandardsinthecoming33years.Atanaveragerateof900kilometresperyear,theregion’sentireroadnetworkwillbecoveredby2050asprovidedfor in theEACVision2050. In theenergy sector, theEAC ismoving towardsgetting energy solutions for the regional block as part of the integrationfactors.ElectricitytradeamongEastAfricanstateswillsoonbeginasEthiopiaandKenyaracetofinishthestringingofcross-borderhigh-voltagetransmissionlines.TheKenyaandEthiopiapowerlineisexpectedtoreducecostofpowerbyUS$0.07(Ksh7.25)perKilowatthourfromSeptember2018,theKenyasectionofthelineisvaluedatapproximatelyKsh40.3billion.

After the completion of one stop border at Busia, Malaba, Mutukula, andMirama, TradeMark has announced the investment of US$ 20 million toconstructonestopborderbetweenUgandaandtheDemocraticRepublicofCongo(DRC)atGoli(NebbiDistrict,NorthwesternUganda)andMahagiborderontheDRCside.Theconstructionoftheonestopborderpost(OSBP)meansthatclearanceofgoodswillbedoneonceandall institutions involved intheclearance have access to the same ICT system. Themeasures aremeant toreducethecostofdoingbusinessandreduceclearancetime.

The Inter-Governmental Authority on Development (IGAD) is keen onrevitalizing the South Sudan peace process with determination to add newparticipantsincludingtheNationalDemocraticMovement(NDM),theNationalSalvationFront(NSF),SouthSudanNationalMovementforChange(SSNMC);andFederalDemocraticPartyofSouthSudan(FDPSS).Ithasalsobeendecidedthat the peace talkswill nowbe taking place in rotation in Kenya, Ethiopia,SouthAfrica,SouthSudanandSudan.Sincethepeaceprocessbeganin2014,theactorshaveonlybeentheSPLM-InGovernment,SPLM-InOppositionandSPLMofFormerDetainees.

ChinaandTurkeyintheHornofAfrica

China cemented its militarypresenceinAfricabysendingfirst

batch of its soldiers to its recentlybuilt military base in Djibouti inJuly 2017. Beijing contends that thebase in Djibouti will boost the EastAsia powerhouse’s performance inmaritime security, peacekeepingand humanitarian aid in Africa. TheDjibouti basewill also be conduciveto military cooperation, jointexercises,evacuationandprotectionofChinesecitizensworkingoverseas,emergencyrescuemissionsandjointlymaintaining security of internationalstrategic seaways. Other countrieswith military presence in Djiboutiinclude the United States, France,Germany,ItalyandQatar.

InSeptember2017,Turkeyopenedamilitary training base in Mogadishu,Somalia. The facility has beendescribed as Ankara’s largestoverseas military training facility.Turkey is progressively emerging asamajor security and adevelopmentally of Somalia. The increasinginterests of emerging powers tothe Horn of Africa is likely to raisethe geostrategic importance of theregion.SinceChina,Turkeyandotheremerging economies have becomeimportant investorsandmajor tradepartners with regional states, it isimperative to explore innovativemilitary cooperation that could becriticalindealingwithsecuritythreatssuch as terrorism, piracy, humanand drug trafficking, among others.Similarly, regional states shouldpursue strategic partnership withthe countries establishing militaryfacilitiesintheregionsoastoenhancetheir capacity in peacekeeping andhomelandsecurity.

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Current KIPPRA Research Projects

Building Resilience to Mitigate the Impacts of Droughts and Floods in Kenya

The study supports the ongoingefforts by the government to

end emergencies emanating fromdroughts and floods, which are keyinanchoringthelongtermeconomicgrowthasarticulatedinKenyaVision2030. The study will analyze thesocio-economic impacts, assess thepolicy and institutional structuresthat govern disaster managementand identify any capacity gaps thatrequire government interventionsin building resilience to climaticshocks.Sofar,theInstitutehasheldroundtablediscussionswithrelevantstakeholders on 1st September2017, and is now preparing for fieldsurveytocollectprimarydata.Uponcompletion, the Institutewill hold anational workshop to disseminatethesurveyfindingswithanintentionof initiating national dialogue onhow the country can strengthenits preparedness and response toemergenciesofdroughtsandfloods.

Boosting Investments for Delivery of Kenya Vision 2030

The focus is to provide theimpetus on total investments

that can deliver the desired 10%growth in the economy. Public andprivate investments are critical indriving inclusive economic growthand development. Increasinginvestments across all sectors ofthe economy will enhance theirrespective contributions towardsoverallgrowth.Theanalysisisguidedbyseveralquestionsasfollows:WhatisthestatusofinvestmentsinKenya?Whataretheopportunitiesandrisksfor investments in Kenya?What are

the constraints and challenges forinvestments inKenya?What are thefinancing options for investmentsin Kenya? What are the policyimplications and recommendationson investments? The findings areaimed at advising on investmentsto realize the Vision 2030 goal ofsustained10%annually.

Capacity Development for Child Sensitive Planning and Budgeting in Kenya

KIPPRA is participating in theCapacity Development for Child

Sensitive Planning and Budgetinginitiative in Kenya spearheaded bythe National Treasury with supportfromUnitedNationsChildren’sFund(UNICEF). The overall objectiveof this initiative is to develop theNational and County Governments’capacity and capabilities in the areaofchildsensitiveplanning,budgetingandrelatedpolicymakingprocesses.Otherpartnering institutions includeOxford Policy Management (OPM)andtheKenyaSchoolofGovernment(KSG). Planned activities includeNational and County level trainingsand production of County budgetbriefs. The project will inform the2018/19 budget making processthrough participation in relevantsectorbudgetworkinggroups.

Appraisal of the Performance of the Track and Trace System of Excisable Goods in Kenya

This study is funded partly bythe African Capacity Building

Foundation(ACBF)withtheobjectiveof reviewing the implementationchallenges of the Track and TraceSystemofexcisablegoods inKenya.It examines the contribution of thetrack and trace system towardsthe control of illicit trade andacknowledges that an independentappraisal of the system is yet to be

implemented.Thestudy isexpectedtobe completedby theendof 2017and the findings will inform policyinterventions in Kenya, besidesproviding learning experiences toother developing countries thatintendtorolloutsimilarsystems.

Economic Inclusion of Young People and Women through Inclusive Entrepreneurship: Case of Kenya

KIPPRA signs an agreement withCAPEC to jointly undertake

this IDRC funded project. Theoverall objective of this projectis to analyse the contribution ofinclusive entrepreneurship to youngpeople and women well-being inCote d’Ivoire, Burkina Faso andKenya.Findingsfromthisprojectareexpected to provide useful insightsfor governments to implementincentives and support mechanismsto mainstream the practice ofinclusive entrepreneurship whilemaximizing its impact on vulnerablegroups,includingwomenandyouth.Three (3) Think Tanks includingKIPPRA,theEconomicPolicyAnalysisUnitofCIRES(CAPEC)ofCoted’Ivoire,and the Laboratory of QuantitativeAnalysis Applied to Development -SAHEL (LAQAD-S) in Burkina Fasoareinvolvedintherealizationofthisproject. This is a three year projectwhichwill bemanagedonbehalfofthethree(3)countriesbyCAPEC.

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KIPPRA News and EventsNational Workshop on Capital Flows in Kenya

On 4th September 2017, KIPPRA and AERCpartnered in organizing a workshop on

“CapitalflowsinKenya”.Theessenceoftheforumwas to brainstorm on policy issues related tocapitalflowsbothdomesticallyandinternationallyandtodisseminateresearchfindings.KIPPRAwasimploredtoundertakefurtherresearchoncapitalflowsandfiscaldisciplineinKenyaandtheregion.Theworkshopconcludedwiththeobservationthatcapitalflowsisakeyareainnationaldevelopmentagendaandthatthedomesticpolicyenvironmentand de-risking issues need to take cognizance ofthepushfactorsforcapitalflows.

Roundtable Discussion on Building Resilience to Mitigate the Impact of Droughts and Floods in Kenya

On1stSeptember2017,KIPPRAheldastakeholderroundtablediscussiononastudyaimedat“Buildingresiliencetomitigatetheimpactofdroughtsand

floodsinKenya”.Thepurposeofthemeetingwastoengagestakeholdersontheplannedstudy.Thestudysupportstheongoingeffortsbythegovernmentto end emergencies emanating fromdroughts and floods,which are key inanchoringthe longtermeconomicgrowthasarticulated intheKenyaVision2030.During the event, three keynote speakers fromKenyaMeteorologicalDepartment, National Drought Management Authority, National DisasterOperationsCenterandMinistryofWatersharedtheirexperiences indealingwith emergencies of droughts and floods. Among the major policy-relatedissues highlighted were: lack of a well-coordinated effort and overlappingmandateamonginstitutionsdealingwithdroughtsandfloods.Otherissuesarerelatedtohumanandcapital,culturalandtechnicalcapacity.

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Pol icy Dialogue on Creating and Sustaining Jobs in Kenya

On20thJuly2017,KIPPRAheldastakeholder policy dialogue

on“CreatingandsustainingjobsinKenya”.Theeventwaspartofa series of policy engagementswith stakeholders to discusseconomic issues affecting thecountry. The forum discussedpossible policies and strategiesto be put in place to enhancejobcreationandcurb job lossesin the country. The importanceof conducting a study onestablishing and sustaining jobsinKenyawasemphasized.

AERC Executive Director, Prof. Lemma W. Senbet durng the national workshop on capital flows in Kenya

Participants during the roundtable on impact of droughts and floods in Kenya

On 25th July 2017, KIPPRAhosted a colorful launch of

its ninth edition of the “KenyaEconomic Report (KER) 2017”. Theannual report, which is a KIPPRAflagship, is in fulfilment of statutoryobligation as stipulated in KIPPRAAct 2006. Themed: “SustainingKenya’s Economic Development byDeepeningandExpandingEconomicIntegrationintheRegion”,thereportdiscusses in detail the prospects ofenhancingKenya’seconomicgrowthand development by exploitingopportunitiesinregionalintegration.The launch coincided with KIPPRAcelebrations of its 20th anniversary,providing an opportunity for staffto reflect and take stock of theinstitute’sjourneythusfar.

Kenya Economic Report 2017 launch and KIPPRA @20 celebrations

Launch of the Kenya Economic Report 2017

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N a t i o n a l D i s s e m i n a t i o n Wo r k s h o p : H e a l t h S e c t o r i n K e n y a

The AERC and KIPPRA partneredin organizing a dissemination

workshop in Nairobi on 27th July2017. KIPPRA presented findings ofits work on assessing health caredelivery in Kenya under devolution.Theworkshopbroughttogetherkeystakeholdersinthehealthsectorandthisenrichedthediscussions.Kenya Eco

nomic

Report 2017

Now Available

KIPPRA’s Benson Kiriga (second left) and Dr Chris Onyango (second right) being interviewed my media during launch of the Kenya Economic Report 2017

Participants during the national dissemination workshop on health sector in Kenya

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Ateam of 25 Turkish and Kenyan students undertook an interactive study tourof KIPPRA on 22nd August, 2017. The visit, which was courtesy of the TurkishCooperationandCoordinationAgency(TIKA)Nairobi,aimedatexposingthestudentsto development challenges within TIKA’s priority areas of health, education, water,sanitationandagriculture.TheteamalsowantedtoknowKIPPRA’s role inprovidingpolicy and research solutions to these challenges. Themeetingendedwith amutualagreement to continue discussions with the possibility of forging collaborations infuture.

Tu r k i s h C o o p e r a t i o n a n d C o o r d i n a t i o n A g e n c y ( T I K A ) s t u d e n t s v i s i t K I P P R ADeepening Islamic

Finance in Kenya

A section of Turkish students who visited KIPPRA

A participant during the stakeholder policy dialogue on Islamic finance in Kenya

On 7th September 2017, the Institute

organized a stakeholder policy dialogue on “Deepening Islamic finance in Kenya”. The aim was to share industry experiences, successes and challenges; identifying policy gaps and challenges; as well as priority agenda for policy reforms thus contributing to and enhancing the reform agenda on Islamic finance in Kenya. The forum highlighted the importance of a supportive, dynamic and comprehensive policy and regulatory framework, an effective interagency m u l t i - d i s c i p l i n a r y approach and enhanced public awareness to foster deepening of Islamic finance in the country.

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Tel: +254 20 2719933/4; Fax: +254 20 2719951

Email: monitor@kippra.or.keWebsite: http://www.kippra.org

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ABOUT KIPPRAThe Kenya Institute for Public Policy Research and Analysis (KIPPRA) is an

autonomous institute whose primary mission is to conduct public policy research leading to policy advice. KIPPRA’s mission is to produce consistently high-quality

analysis of key issues of public policy and to contribute to the achievement of national long-term development objectives by positively influencing the decision

making process. These goals are met through effective dissemination of recommendations resulting from analysis and by training policy analysts in the

public and private sectors. KIPPRA therefore produces a body of well-researched and documented information on public policy, and in the process assists in

formulating long-term strategic perspectives. KIPPRA serves as a centralized source from which the Government and the private sector may obtain information

and advice on public policy issues.

KIPPRA acknowledges generous support from the Government of Kenya and the Think Tank Initiative (TTI) of IDRC. The TTI is a collaborative initiative

of Hewlett Foundation, International Development Research Centre (IDRC) and other partners.

Other organizations are welcome to contribute to KIPPRA research either as core support, or support to specific projects, by contacting the Executive Director,

KIPPRA.

Send to us your comments on the articles published in this newsletter and any other aspects that may help to make the KIPPRA Policy Monitor

useful to you. This may include policy issues you would like KIPPRA to prioritize.