POLICY MONITOR 1 Improving public policy making for economic growth and poverty reduction POLICY MONITOR Improving pIumbplirco vpinogli cpyu bmlica pkoinlicgy f omra ekcinogn foomr eicco gnroomwict hg raonwdth p aonvde protyv erretdy urecdtiuocntion Issue 6, No. 2 July - December 2015 Role of Counties in Kenya’s Trade Development Issue 6, No. 2 July - December 2015 2 POLICY MONITOR Improving public policy making for economic growth and poverty reduction KIPPRA stand at the Kisumu ASK regional show ublit Policy, Resear h a :2008 Ce· KIPPRA Ag. Executive Director, Dr Dickson Khainga, during the launch of the tea industry study KIPPRA staff at a Switch Africa KIPPRA showcases its publications at the Nakuru Green workshop in Nairobi ASK show African Union Mission Former Prime Minister, Right Hon. Raila Odinga officials visit KIPPRA signs the visitor’s book at the KIPPRA stand during the 18th Nairobi International Book Fair Some of KIPPRA’s management staff during a Board/ Management retreat in Naivasha KIPPRA participants during the ‘Race to restore poor children’s sight’ StanChart Marathon Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 3 Improving public policy making for economic growth and poverty reduction Editorial Team: Felix Murithi and Jane Kenda Contributors: Benson Kiriga, Manaseh Otieno, Paul Odhiambo, Joseph Issue 6, No. 2 Kieyah, Adan Shibia, Augustus Muluvi, Hannah Wang’ombe, Humphrey Njogu, James Gachanja, Alex Oguso, Winnie Nguyu, John Nyangena, Leonard Kirui Design and Photos: Diana Anangwe Published by: Kenya Institute for Public Policy Research and Analysis (KIPPRA) Bishops Garden Towers, Bishops Road 12. P.O. Box 56445-00200, Nairobi, Kenya Tel: +254 20 4936000 +254 20 4936000 / 2719933/4 Fax: +254 202719951 Cell: +254 736 712724 +254 724 256078 Email: monitor@kippra.or.ke Website: www.kippra.org Twitter: @kipprakenya 21. Vision To be the leading institute in public policy research and analysis; an international centre of excellence Mission To provide quality public policy advice to the Government of Kenya and other stakeholders by conducting objective research 27. and through capacity building in order to contribute to the achievement of national development goals Economy’s Resilience and Steady Growth Signify Better Times Land Bill will Empower Locals and Lead to Rapid Growth Implement Special Economic Zones Strategically LAPSSET Corridor: Prospects and Challenges To create a globally competitive Road to Recovery: Moving Kenya’s Tourism beyond Travel Advisories and prosperous nation with a high quality of life by 2030 Critcal Lessons from the Thika Superhighway Project Going Digital Could Change the Fortunes of Kenya’s Publishing Industry Plastic Bag Levy is Not Enough to Curb their Use Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 ALSO IN THIS ISSUE 4 POLICY MONITOR Improving public policy making for economic growth and poverty reduction EDITORIAL The lead article in this issue of the Policy Monitor discusses the dynamics of trade, especially in the new constitutional dispensation that saw the creation of counties. Being a critical factor in the country’s economic growth, national development and economic diplomacy, the government has established policies to promote Kenya’s trade interests in the region and internationally. While the national government is mandated to sign agreements and trade treaties, county governments have the key role of internalizing and referring to them when developing their sub-national trade policies and strategies. Dr Dickson KhaingaAg. Executive Director Land is one of the most important resources in a country’s development. In Kenya, however, land US$ 24 billion (Ksh 2.4 trillion), the project seeks has been a major source of conflict between to spearhead development in undeveloped communities, and understandably so. Most of Northern Kenya while providing South Sudan the country’s land – 67% of the total acreage and Ethiopia, both landlocked countries, with an – is classified under community land, which is alternative route to the Indian Ocean through commercially not viable due to diverse informal Lamu. Upon completion, the project is expected systems that govern it. This, however, is set to to transform regional trade by making the change once the Community Land Bill, 2015 movement of goods and services easier. This becomes law. Read more to learn about the mega project has, however, faced a number of historical context of land in Kenya and how the challenges that have slowed its progress. Find out new law will unleash the country’s huge potential what they are and what the partner countries can and fuel its economic take off. do to overcome them. Another law that is set to boost Kenya’s Another of Kenya’s economic pillars that has economic growth through industrialization is faced major challenges over the years is tourism. the Special Economic Zones (SEZs) Act 2015. Terrorist attacks and subsequent travel advisories While manufacturing-led industrialization plays have threatened to cripple this crucial industry. a catalytic role in inclusive economic growth However, a careful assessment of the devastating and employment creation as well as holding effect of these travel advisories, which are mostly the promise of achieving the Sustainable issued by Western countries, reveals that there Development Goals (SDGs), the manufacturing could be more to them than meets the eye. Get sector’s contribution to Kenya’s Gross Domestic a deeper analysis and possible motive of travel Product has been declining. However, with proper advisories plus many other informative articles in implementation of the SEZs, which embody a host this issue. of production cost reduction incentives such as physical infrastructure and fiscal measures, Kenya The magazine also highlights some of KIPPRA’s will turn the tide on industrial investment. Find events and activities during the last half of 2015. out which countries have adopted SEZs to build Have an engaging read. their economies. One of the flagship projects under Kenya’s economic blueprint, Vision 2030, is the multi- billion dollar Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor. Estimated to cost Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 5 Improving public policy making for economic growth and poverty reduction Economy’s Resilience and Steady Growth Signify Better Times By Benson Kiriga Kenya’s economy has gradually recovered to record impressive growth despite many domestic sources, amounting to Ksh 251.1 billion, challenges. Growth in 2014 was mainly which was higher than the target of Ksh 172.9 driven by increased spending by both the billion. External financing was Ksh 217.8 billion government and households, which grew by 2.7 compared to a target of Ksh 261.2 billion. This per cent and 5.5 per cent, respectively. There represented a domestic financing and external were also increased investments especially in the financing of 4. 4 per cent and 3.81 per cent of real estate sector, infrastructure and air transport the Gross Domestic Product (GDP) in 2014/2015, equipment. respectively. Economic growth was, however, slower in 2014 Diaspora remittances to Kenya increased by 3.2 compared to 2013. This was occasioned by per cent from US$ 128.2 million in August 2014 to certain internal and external factors, with the US$ 132.9 million in August 2015. It increased by main ones being slow economic growth for 1.4 per cent compared to inflows in July 2015. The the trading partners and the diminishing fiscal increase was attributed to improvement in inflows space. Total cumulative revenue (including from North America and Europe. Remittances Appropriation-in-Aid) amounted to Ksh 081.2 from North America accounted for 48.3 per cent billion in 2014/2015 against a target of Ksh of all the total inflows. Inflows from Europe also 1,170.5 billion. Total government expenditure rose by 1.1 per cent to US$ 36.7 million from US$ and net lending amounted to Ksh 1,616 billion 36.6 million. in 2014/2015, compared to Ksh 1,297.8 billion in Given the current stable macroeconomic 2013/2014. In 2014/2015, recurrent expenditure conditions, the medium term growth prospects accounted for 52 per cent of total expenditure while development expenditure was 31 per cent. Overall fiscal deficit, including grants on a cash basis, amounted to Ksh 471.9 billion (8.3% of the Kenya’s economy has gradually recovered Gross Domestic Product) compared to a target to record impressive growth despite many of Ksh 584.9 billion (10.2% of Gross Domestic challenges. Product). Deficit financing was largely from Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 6 POLICY MONITOR Improving public policy making for economic growth and poverty reduction the medium term. The two quarters of 2015 are expected to be strong and positive. This is, recorded a growth rate of 4.9 per cent and 5.5 however, based on the assumptions that: per cent, respectively. a) The structural reforms and public The projections in the table below show that the investment in infrastructure will continue economic growth in Kenya in the medium term as planned, thus improving the business will be gradual, and is likely to be 6.7 per cent by environment and the potential GDP of the 2018. Private and government investments are economy. both expected to continue growing rapidly, and will heavily contribute to the country’s expected b) The political climate, including smooth high economic growth rates. transition to the devolved system of government, continues to be stable and Slow uptake of the Public Private Partnership growth-oriented. (PPP) initiatives in the implementation of Medium Term Plan strategies may, however, c) Favourable weather conditions continue lead to a slower rate of economic expansion to sustain improvements in agricultural than envisaged in the Vision 2030. In addition, output. weak implementation of the budget can d) There will be a stable regional and global adversely affect growth in the medium term. economic environment. The decreasing international oil prices and the low inflation levels give an impetus for economic growth to rise in the medium term. The discoveries of minerals in Kenya, coupled with the huge infrastructural investments, are expected to support this expected high economic growth in Economic projections for 2016 – 2018: Selected economic indicators --2013 2014 2015 2016 2017 2018 GDP growth 5.7 --5.3 --5.9 --6.3 6--.5 6-.7 Inflation -5.7 I -6.9 -5.9 I -6 5- I 5-- Private consumption 7.0 7.8 6.1 6.0 6.1 6.6 Government consumption 4.6 1 2.7 2.5 I 5.7 5.9 I 5.4 Private investments --4.9 -4.7 -6.9 -8.9 1-0.0 6.7 Government investments 25.2 1 21.9 22.1 I 5.1 4.5 I 4-.3 Export goods and services --0.7 -2.3 -2.1 -3.3 4-.2 6-.2 Import goods and services 0.1 1 9.7 5.3 I 4.9 6.1 I 5.2 Current account balance -10 -12 -13 -14 -16 -16 Deficit --8.1 1 -7.4 -7.0 I -6.4 -5.8 I -5.3 Public expenditure (%gdp) 30 29 28 27 26 25 Interest rate 8.9 1 -8.9 -8.2 I -8.3 8 Kenya shilling per dollar -86.0 -87.9 89.7 90.2 8 Source: KIPPRA Staff Estimates, KIPPRA-Tre-asury Macr-o Model (K--.3 I 8--.3 9.8 90.8 TMM) Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 7 Improving public policy making for economic growth and poverty reduction The Role of Counties in Kenya’s Trade Development Agenda By Manaseh Otieno and Paul Odhiambo Trade is a critical factor in Kenya’s economic Vision 2030, and regional integration agreements growth, national development and such as the East Africa Community (EAC) Common economic diplomacy. In terms of growth and Market Protocol, Common Market for Eastern development, it is through trade that the country and Southern Africa (COMESA), COMESA-EAC- can create gainful employment, increase national SADC Tripartite Free Trade Area and the European income and promote technological innovation Union (EU) Economic Partnership Agreement. that will enhance efficiency in production of goods and services. Regional trade agreements are signed by the national government and, once ratified by the Some of the objectives of the economic diplomacy legislature, form part of the country’s domestic pillar are geared towards promoting the country’s law. Ratification alone is, however, not sufficient trade interests, namely promoting exports in to operationalize the trade treaties, since the the region and beyond, expanding access to ultimate beneficiaries of these agreements are the traditional markets and new markets, increasing country’s citizens. It is expected that the citizenry capital flow into the country, strengthening regional economic communities, and promoting fair trade and equitable bilateral, regional and In addition to providing physical fa- multilateral trade agreements. cilities, the county trade departments should act as business information In order to realize its trade interests, the centres for the local entrepreneurs. government is engaged in the establishment This will address the challenge of lack of a trade policy that will be imperative for of market information both locally and development of both domestic and international internationally trade. Since the launch of Vision 2030 in 2007 and the promulgation of the Constitution in 2010, the government has strived to formulate policies that are in line with the economic blueprint and new constitutional order. In a devolved system of government such as in the Kenyan case, there are national and sub- will have better access to outside markets, as the national policies that are executed at the county country opens up to regional and international and national levels, respectively. This, however, is trade. not to imply that the two are independent of each All enterprises fall within the jurisdiction of a given other. The sub-national policies should fit into the county and, for this reason, counties are the first broader national policies to ensure consistency point of interaction for all businesses. in the regulatory framework at both levels of government. Therefore, it is important for the counties to familiarize themselves with the country’s trade It is on this basis that counties should be at the agreements and refer to them when developing forefront of implementation of the strategies their sub-national trade policies and strategies. as guided by the country’s economic blueprint, Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 8 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Map showing the 47 Counties Counties, to a large extent, characterize the country’s domestic trade environment. The countries in Africa that have quasi-federal or sub-national regulatory and tax regime shapes federal governance structures include South the business environment and subsequently Africa, Nigeria and Ethiopia. In these countries, determines the success or failure of a given treaty. the national government develops trade policies Trade agreements, in most instances, address the while the sub-national units implement the regulatory issues in a given sector. agreements within their respective jurisdictions. The common denominator is that the overall In countries such as the United States, the trade policy is mirrored across the board as the federal government negotiates and signs treaties sub-national units implement the country’s on behalf of the country and regulates both desired objectives. international and inter-state trade among other duties. On the other hand, the state governments The provision of physical facilities such as roads, regulate intra-state trade on businesses and street lighting, warehouse facilities, markets, issue business licences, among other roles. Other sewerage and drainage as well as waste disposal sites play an important role in creating an enabling Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 9 Improving public policy making for economic growth and poverty reduction business environment. Infrastructure enables the Very instrumental will be the element of public steady flow of goods and services within and participation and the use of inter-governmental outside the counties. institutions to achieve the desired ends. The Inter- In addition to providing physical facilities, the governmental Relations Act 2012 established county trade departments should act as business a framework for consultation and cooperation information centres for the local entrepreneurs. between national and county governments as This will address the challenge of lack of market well as between county governments. It more information, both locally and internationally. importantly provides mechanisms for dispute Currently, there is very little information on resolution; that is, disputes that may derail domestic demand and supply of goods. It is national and county governments from the difficult for producers to determine where there agenda of trade development for economic is demand for their produce and similarly, for growth and development. consumers or willing buyers to establish where Counties have a great potential of being the there is abundance of the same and at what engine for Kenya’s trade development agenda. prices. The counties can resolve this by setting up As they begin to establish institutions that will one-stop shops where business people can find support trade and investment, it is crucial that the all the information they need. More importantly, two levels of government find a common ground the counties, in collaboration with the national on developing institutions that will advance the government, should assist business people country’s trade development agenda. The national identify foreign markets where surplus production government should endeavour to establish a could be sold at competitive prices. trade policy that is geared towards making trade Statistics on local business dynamics will assist a critical tool for development. Moreover, the the country and counties in planning and counties and other stakeholders in both levels development of trade policies. The counties of government should ensure that sub-national should take up the responsibility of mapping all policies on trade are aligned to overall national the businesses in their jurisdiction. This will not trade policy and agenda, so that the country only help in planning but will also be useful for benefits from both domestic and national trade. revenue collection at both the national and county governments. A broader revenue base will help the government at both levels to reduce the tax rates imposed on businesses. This information, if shared with the national government, will assist in formulation of policies from a point of knowledge. By virtue of being in close contact with entrepreneurs, the counties should hold interactive forums with the business people to sensitize them on the existing international trade agreements and the benefits of participating in The counties should hold interactive global trade. Formation of business producer forums with the business people groups would also be important at the county to sensitize them on the existing level to increase bargaining power and reduce international trade agreements and incidences of exploitation by middlemen. the benefits of participating in global trade. Formation of business producer County governments, therefore, have a very groups would also be important at the important role to play in the promotion and county level to increase bargaining development of trade activity within the country. power and reduce incidences of All that needs to be done is to create a framework exploitation by middlemen to guide counties in promoting and developing trade in Kenya. The various institutions and rules provided for in the Constitution should form the basis for these guidelines. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 10 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Land Bill will empower locals and lead to rapid development By Joseph Kieyah The Community Land To circumvent this its jurisdiction under the then Bill (CLB) 2015, which is constitutional impasse, the before Parliament, has British invoked the Foreign old Constitution. The new Constitution renamed the generated a lot of debate in Jurisdiction Act of 1890 that the public and the media. gave jurisdictional power trust land as community land This is not surprising because over unoccupied land. They and assigned ownership to communities on the basis of community land is home enacted new laws to acquire land that was occupied by ethnicity, culture or community to millions of Kenyans and interest. The Constitution holds enormous untapped Africans. These laws denied Africans occupancy rights further mandated Parliament to wealth running into trillions of shillings. This wealth, by segregating them to the enact legislation on community land. It is on this basis the CLB however, is locked up in form so-called ‘natives’ reserves’. of dead capital that remains Africans, as matter of policy, was formulated. commercially invisible due became “tenants at the will The Bill is an entrenchment of to diverse informal systems of the Crown”. In 1920, the constitutional provisions on that govern community land. policy was reversed after Kenya community land. Specifically, Undoubtedly, the 98 million became a British colony. the Bill sets to recognize, acres of community land, which As tenants at the will of the protect and register community translates to 67 per cent of crown, the Africans’ land rights land rights. It also vests total acreage, hold our nation’s were recognized Community land is home treasure trove. However, and protected under to millions of Kenyans and despite its huge potential, the new land policy. holds enormous untapped community land is the least Consequently, researched or well known land African reserves wealth running into trillions category. were reclassified as of shillings. This wealth, Conversation on community trust land, which however, is locked up in form land must be viewed from a was administered of dead capital that remains historical context. Before Kenya by the colonial commercially invisible due to became a British Protectorate government’s representative diverse informal systems that in 1895, the African customary govern community land laws, which embodied on behalf of the usufructuary and communal Africans. ownership rights to the ownership, governed the land With attainment of bonafide communities and tenure. As a protectorate, the independence in 1963, the unregistered community land British had no legal power Kenya government reclassified to the county government. to own land unless such trust land into three broad Once enacted, the Bill will power was granted through categories: adjudicated, un- repeal the Trust Land Act agreements. Thus, they could adjudicated and public land. and cure the anomalies of not claim title on land occupied The trust land ownership was land grabbing that were by Africans. vested in the local government perpetuated by the local on behalf of residents within governments. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY 1M!!!!11 - -------.T ~ONITOR 11 Improving public policy making for economic growth and poverty reduction The formulation of the Bill community land as provided in public land, respectively. followed the right process, Article 60. including consultation In conclusion, the CLB is with the Commission for Secondly, the Bill sets up timely because it removes the Implementation of the a constitutionally-based historical veil of obscurity that Constitution (CIC). To begin registration framework has surrounded community with, members of the task force of community land. The land. The colonial government that drove the formulation framework encompasses created an export of legally process were drawn from the the adjudication process to protected enclave of European public and private sectors, civil ascertain ownership under the private settlement, while society organizations and the oversight of the NLC. Upon condemning majority of National Land Commission completion of the adjudication Kenyans to poor peasantry in (NLC). Furthermore, there is process, the ownership rights the communal native reserves supporting evidence that the are then registered under on the periphery. Legally exercise met the participation the name of the community, recognizing and protecting threshold under the public clan or family, community land rights to community land participation doctrine. association or traditional is a major milestone towards Obviously, the aforementioned leader, with the community’s righting the historical wrongs. discussion is contrary to the consent. Thirdly, it recognizes Embracing the community’s allegation that the exercise was the county government as not participatory. the constitutional trustee right to property is a critical of unregistered community step towards the eventual The Bill is essentially anchored land with a regulatory role of unlocking of the vault storing on the right to own property as overseeing its development, untapped wealth that is enshrined in Article 40 of the management and use. desperately needed to fuel Constitution. Accordingly, every Kenya’s economic take off. person has the right, either Fourthly, the Bill is alive to the More importantly, the formal individually or in association temporal nature of land rights registration of community land with others, to acquire and that are held communally own property. Such association and their tendency to evolve rights will mitigate the ticking towards individual ownership. time bomb of land-related ownership enjoys constitutional protection under the sanctity of Such evolution is mostly driven conflicts, especially in areas where vast extractive resources the title doctrine. The Bill is also by an increase in land value have been discovered. The bound by the principles of land due to population pressure and immediate strategy that the Bill policy of ensuring equitability, commercial activities within efficiency, productivity and the proximity, among others. embodies is to legally protect sustainability as well as proper The Bill, therefore, provides the community land rights and use and management of a framework of converting worry later about the individual community land to private and land rights within these communities. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 12 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Implement Special Economic Zones Strategically By Adan Shibia The celebration of the Africa Industrialization and employment creation as well as holding Day on 20 November, 2015 provided an the promise of achieving the Sustainable opportunity to reflect on industrial policies Development Goals (SDGs) adopted by the United and raise awareness on the challenges of Nations member states in September 2015. With industrialization in Africa. Despite such annual SDG 9, the world leaders have promised action celebrations since 1990, the industrialization on sustainable industrialization. A shift from process in Africa has been elusive, with average commodity exports to high value manufacturing contribution of the manufacturing sector to the accelerates per capita income growth, acting as Gross Domestic Product (GDP) sliding from 14 an engine for catch-up of low income countries per cent in 1990 to about 10 per cent recently. to developed economies. In Kenya, the contribution of the manufacturing sector to GDP has declined from 12.7 per cent in The 10 per cent manufacturing contribution to 2006 to 10.0 per cent in 2014. GDP in Kenya lags behind those of Malaysia and Korea at 24 per cent and 30 per cent, respectively. The 2015 Africa Industrialization Day theme These differentials reveal a contrasting ‘Small and Medium Enterprises (SMEs) for Poverty development narrative of the three countries that Eradication and Job Creation for Women and Youth’ were contemporaries in the 1960s. Malaysia and is in congruence with the Vision 2030 blueprint Korea aggressively pursued an export strategy and the second medium term plan. The youth that was anchored on the manufacturing sector. aged 15-34 years account for over 35 per cent of In contrast, Kenya delayed in shifting from the population. The expanding share of working protective import substitution policy to high value age population results in an increase in labour manufacturing export-led growth. Over the last supply and hence productive potential of the 50 years, Korea and Malaysia realized remarkable economy. To address high youth unemployment GDP per capita compound growth rates of 12 per and realize demographic dividends from the cent and 7 per cent, respectively, compared to youth bulge, a vibrant manufacturing sector is Kenya at 5 per cent. imperative for job creation. The recent enactment of Special Economic Zones Manufacturing-led industrialization plays a (SEZ) Act 2015 marked a major policy milestone catalytic role in inclusive economic growth in Kenya’s industrialization agenda. The Act sets Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 13 Improving public policy making for economic growth and poverty reduction the stage for the roll out of SEZs that embody a host of production cost reduction incentives such The enactment of the SEZ law is a as physical infrastructure and fiscal measures. boon for attracting investments in SEZs can be an effective instrument in promoting the industrial sector. However, given industrial investment if implemented properly that SEZs in African economies in light of a country’s specific situation. The have mixed results, roll-out of SEZs increasing popularity of SEZs emanate from in Kenya should be strategically economic benefits such as technology transfer, undertaken. Key considerations foreign direct investments, employment and include adaptation to the local export growth. context, creation of a competitive A living success story is China, which established business environment that lowers the Shenzhen special economic zone in 1980 that costs of production, access to proved to be a foreign investment hub and export markets, clear goals in terms of powerhouse. Other success stories include Korea economic contributions, and efficient and Malaysia. The establishment of SEZs in Sub- production across value chains. Saharan Africa has had mixed results, with limited success stories. Indeed in response to rising environmental costs, Besides adapting to local contexts, other success China has implemented environmental standards factors warrant attention. First, a gradualist and use of fiscal policies to incentivize firms to approach in roll out with a sound business adopt green technologies. Adoption of green environment that minimizes uncertainties in manufacturing would be especially vital for return on investments is key in attracting seed micro and small enterprises in lowering costs of investments. Second, it is imperative to set clear production as well as ensuring sustained growth targets in contribution to the economy with and access to international markets where green regards to such parameters as foreign direct production is increasingly being emphasized. investments, employment and exports. Third, In conclusion, the enactment of the SEZ law is a linkages with international markets should be boon for attracting investments in the industrial a priority. Success stories in Asia demonstrate sector. However, given that SEZs in African that SEZs are strategically linked to international economies have mixed results, roll-out of SEZs markets through sea ports, railways and airports. in Kenya should be strategically undertaken. Fourth, sustainability of industrialization calls Key considerations include adaptation to the for accelerated efforts towards efficient use of local context, creation of a competitive business resources across the value chain. Granted that environment that lowers costs of production, the product markets tend to be inefficient, the access to markets, clear goals in terms of government should embrace the green economy economic contributions, and efficient production initiative to mitigate production costs attributable across value chains. to negative externalities. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 14 POLICY MONITOR Improving public policy making for economic growth and poverty reduction LAPSSET Corridor Prospects and Challenges By Augustus Muluvi and Paul Odhiambo The Lamu Port-South The LAPSSET project, with explain this fear. First, the Sudan-Ethiopia Transport an estimated cost of US$ 24 protracted conflict in South (LAPSSET) corridor is a billion (Ksh 2.4 trillion) seeks Sudan is impacting negatively multi-billion dollar flagship to spearhead development in on Kenya in terms of trade, project under Kenya’s economic undeveloped Northern Kenya investment and infrastructure blueprint, Vision 2030. The while providing South Sudan development, which in turn project comprises seven major and Ethiopia, both landlocked delays LAPSSET’s progress. components: a port in Lamu; countries, with an alternative Secondly, Ethiopia, another key an oil pipeline from Juba, South route to the Indian Ocean country in the project, seems Sudan to Lamu; oil refineries in through Lamu. The entire project to be shifting her focus to Lamu and Isiolo; a railway link is expected to enhance regional developing infrastructure to link to South Sudan and Ethiopia; trade by making the movement Addis Ababa with the Port of three resort cities and airports of goods and services easier. Djibouti. Thirdly, the prospects at Lamu, Isiolo and Lokichogio of the construction of Uganda- and high grand falls along Recent developments in the region, however, cast doubt on Kenya crude oil pipeline River Tana for hydropower generation. the timely completion of the (through Hoima-Lokichar- project. Three developments Lamu) is in doubt after Uganda LAPSSET Corri.dot' Design Layout __-_ , ......·.-_ Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 15 Improving public policy making for economic growth and poverty reduction allegedly signed an agreement which require billions of transport goods between the with Tanzania to explore the dollars in financing and run two cities from two days to ten Tanga route, which is said to be simultaneously with LAPSSET. hours, is nearing completion. cheaper. Even though the Government Without the full participation of of South Sudan and the rebels Other new projects that are in the offing include a new the three countries in the project, signed the latest deal in August 2015, it remains to be seen rail line linking Djibouti with its completion is unforeseeable. whether the implementation the northern Ethiopia town of This is mainly because the cost Mekele and the construction of of the project will be too huge will accelerate the country’s return to normalcy. a 550km pipeline to transport to be borne by one country. diesel, gasoline and jet fuel Also, with Ethiopia diverting her On the other hand, continued from the port of Djibouti. With exports to Djibouti and declining conflict in South Sudan might these projects, more than 90 exports (goods and oil) from mean that all attention and per cent of Ethiopia imports South Sudan due to the conflict, money is being diverted to and exports will pass through the economic viability of the finance the war rather than the port of Djibouti. So where project will be jeopardized. development projects. In does this leave LAPSSET, which Other factors likely to delay the addition, oil production from initially targeted a substantial project include security issues the country has considerably amount of cargo from Ethiopia? along the proposed corridor, decreased since the beginning the proximity of the project of the war. This is a major Despite these emerging to Somalia where al Shabaab challenge for the project as challenges, the objectives militants pose a security threat, a peaceful South Sudan was of the LAPSSET corridor are and the acquisition of the land expected to generate about 46 still valid. The Government of for the project. per cent of freight volumes on Kenya should remain focused in completing the project since Although Kenya is responsible the corridor. Although the Lamu it is anchored in the Vision for majority of the components of Port project has already kicked 2030. It is critical that the the LAPSSET corridor, the initial off, without the South Sudan agreement was that countries crude oil exports, the project government budgets for the may not be viable. Also, given project whether or not regional expected to benefit from the project were to contribute part that the bulk of financing for states contribute. Moreover, the completion of the corridor will of the budget even as they seek the project will be provided by attract not only South Sudan, donor funding. Kenya itself is external funders, the continued having challenges in financing instability and uncertainty in Uganda and Ethiopia but also South Sudan will likely deter other distant countries since the LAPSSET projects owing to LAPSSET corridor is envisioned other investment programmes, potential investors. to connect East and West In regard to Ethiopia, the country Africa. South Sudan remains a has in recent years signed major strategic partner with regards Other new projects that are infrastructure development to the LAPSSET corridor. It is, in the offing include a new projects with Djibouti and therefore, important that Kenya rail line linking Djibouti hence casting doubt in her continues to play an active role with the northern Ethiopia commitment to the LAPSSET in the country’s peace process. town of Mekele and the corridor. The two countries construction of a 550km have invested heavily in joint pipeline to transport diesel, infrastructure in a bid to make gasoline and jet fuel from the Ethiopian-Djibouti belt the the port of Djibouti. With logistic hub of the continent in these projects, more than the long term. Already a 752km 90 per cent of Ethiopia railway linking the capital cities To create a globally competitive imports and exports will of the two countries, Addis pass through the port of Ababa and Djibouti, which is and prosperous nation with a meant to cut the time taken to high quality of life by 2030Djibouti. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 16 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Road to recovery; moving Kenya’s tourism beyond travel advisories By Hannah Wang’ombe I nternational tourist arrivals to to Kenya. The US even went as as people’s livelihoods. Many Kenya declined by 25 per cent far as issuing warnings to its hotels, especially in the coastal in August 2015 compared to citizens not to attend the Global regions of the country, closed the same period last year. This is Entrepreneurship Summit that down, leading to massive job according to the Kenya Tourism was held in Kenya in July 2015 losses. Board (KTB). Travel advice and graced by President Barack on security risks by foreign Obama. Tourism remains key to governments to their citizens Kenya’s economy against traveling to Kenya, have Declining passenger numbers had far more reaching social have also seen leading airlines Indicators of the abysmal and economic effects to Kenya such as Virgin Atlantic pull out performance of the tourism than was anticipated. from Kenya. However, it is worth sector, according to the Kenya noting that Germany, one of the National Bureau of Statistics, Recent terrorism-related key tourist source markets for 2015 Economic Survey, are incidences in Kenya range from Kenya, did not issue any travel telling. Between the year 2013 kidnappings and shootings advisory. In fact, the country’s and 2014, decrease in bed- to major attacks such as the airline, Lufthansa, recently nights occupied, international Westgate Mall in 2013 and resumed operations in Kenya conferences, visitor arrivals the Garissa University in after an 18-year absence. to national parks and game 2015, both of which left more reserves as well as decline in than 200 people dead. While The impact of terrorist attacks the Garissa attack did not and resultant travel advisories tourism earnings from Ksh 94 billion in 2013 to 87.1 billion target tourists per se, it sent have had negative effects on the local tourism industry, in 2014 were largely attributed signals to the international community about Kenya especially periphery sectors to negative travel advisories. being an unsafe destination, such as accommodation, While most travel advisories at the time. Consequently the transport and food industries were lifted in October 2015, that subsequently support the US has maintained caution US, UK, France and Australia micro, small and medium against travelling to towns governments issued warnings bordering Somalia and use of to its citizens against travelling enterprises (MSMEs) as well Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 17 Improving public policy making for economic growth and poverty reduction the Likoni Ferry in Mombasa for economies. same period the previous year, its citizens. The expectation is not that despite it being the peak period for the annual wildebeest Tourism has been a leading foreign governments will resile migration. This implies that sector and contributes from issuing travel advice, significantly to Kenya’s economy. as their first call of duty is travel advisories have a lasting to protect their citizens. The impact and are highly likely to The industry accounts for 10 per argument for the travel advice result in the sluggish growth cent of Gross Domestic Product of tourism in Kenya. Therefore, (GDP), 18 per cent of foreign by foreign governments is that they provide their citizens with unless such advisories are in exchange earnings, employs information so they can make future shared in consultation 9-11 per cent of the total formal workforce in the country and in informed decisions on their with the government, the road to recovery for Kenya’s tourism 2014 generated Ksh 1.7 billion travel plans. is going to be steep. towards government coffers However, on the other hand, through levies. Kenya has scrutiny on the objectivity Policy perspectives competitively remained a safari of these advisories has and beach tourism destination. raised concern because of While the government has their devastating effects on made considerable effort to A great deal at stake destinations, especially in less revive the tourism industry in With declining tourist numbers, developed countries. According Kenya, future terrorist attacks Kenya continues to miss on its to a report by Shirley Eber do not guarantee that foreign governments will not issue travel national development goals and Catherine Conway, which advisories. To militate against and specifically its Vision 2030 among other things analyses objective of attracting 3 million the motives and effects of travel the impact of these advisories advisories, some governments’ and ensure continued growth of visitors annually. Ailing tourism- related businesses means that motive to prolong travel the tourism sector, the following the government cannot collect advisories may not necessarily policy interventions could be be ‘security’-related but rather considered:the much needed revenues, and given the weakening Kenyan ‘political and economic’ to • Issuance: Prior to shilling, decrease in tourist encourage tourists to take any issuance of travel expenditures and successive holidays in their home country. advisories, foreign foreign exchange earnings will Also, given that many of Kenya’s governments should only worsen the country’s trade tourist destinations have hardly consult local authorities. deficit. been affected by these attacks, the blanket travel advisories • Content: Careful A policy analysis by the Kenya were largely unwarranted. consideration of spatial Institute for Public Policy dimensions of which Research and Analysis (KIPPRA), areas the advisory in its flagship publication, While policy makers hoped affects. the Kenya Economic Report that injecting Ksh 1.567 billion • Timeliness of (KER) 2015, highlights the in the financial year 2013/14, recanting advisories: underperformance of the the highest allocation in the Timelines agreed upon tourism sector in Kenya. The history of Kenya’s tourism, as with local governments report underscores, among well as President Obama’s visit, about when the other challenges, insecurity would turn things around for advisories should be brought about by acts of the tourism sector, the reality is withdrawn. terrorism as a global challenge different. In fact, international to tourism. More so, travel tourist arrivals in August 2015, advisories and the harsh reality according to KNBS, fell by of their effect on developing 25 per cent compared to the Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 18 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Critical Lessons from the Thika Superhighway project By Humphrey Njogu, James Gachanja and Alex Oguso The 50.4km Thika Superhighway is the first of Ruiru, Juja and Thika. Evidently, the superhighway its kind and one of the mega construction has enhanced trade and investments not only projects in the region. Officially launched in surrounding areas, but also in the counties in by Former President Mwai Kibaki in November Central and Eastern region of Kenya. 2012, the superhighway was built at a cost of US$ 360 million, with funds from the Government of There are, however, critical and useful lessons to Kenya, African Development Bank and Exim Bank be gained from the conceptualization, planning, of China. It features a four-lane dual carriageway, design, construction and operation of this premier with additional two-lanes of access roads on superhighway. These lessons can be applied in either side. ongoing and planned road projects. The project has been successful in delivering some key development objectives. It has not Emerging traffic congestion only changed the landscape, but eased traffic Traffic conditions along the highway have congestion and traffic flows in and out of Nairobi continued to witness increased congestion in comparison to pre-project conditions and since project completion. This has mostly been aggregate 24hr traffic flows. The superhighway observed during peak hours. The peak hours have has also acted as a pull factor for property also continued to spread as well as the distance developers and various entrepreneurs to areas of congested roadway. Theoretical explanations such as Ruaraka, Kasarani, Luckysummer, Githurai, Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 19 Improving public policy making for economic growth and poverty reduction of the traffic congestion phenomena in analyses quickly to accidents on the highway to ensure before the construction of the highway projects minimal interruption of traffic flow. Although have manifested themselves practically after its the government is already implementing some completion. This means that the new highway of these measures to curb the vice, additional capacity could have induced more travel demand measures that address socio-cultural and thereby generating more trips and unlocked behavioural factors need to be deployed to previously suppressed/latent demand. At the targeted segments of society. Further, innovative same time, some motorists could have diverted designs of road furniture that use materials that from previous routes to the new capacity, thereby serve as disincentives for vandalism should be quickly eroding the anticipated congestion relief developed. in the long term. It is noted that there is already an indication of However, off peak travel conditions are in general opposition to introduction of toll stations on the good with the likelihood of excess supply on a superhighway, with an argument that this will 24-hr cycle. It is, therefore, imperative to note amount to double taxation of the motorists, since that for future projects, a critical analysis of the they are already paying a road maintenance levy travel demand will need to be conducted, with of Ksh 12.00 for every litre of petrol purchased appropriate measures for mass public transport up from Ksh 9 in the previous years. However, the in the peak hours. Tentatively, current traffic Kenya Roads Board observes that the maintenance volumes provide sufficient evidence to justify needs of the highway cannot be adequately viability of low cost mass rapid transit options catered for by proceeds from the Fuel Levy Fund. on account people per hour per day (PPHD), by In addition, there are views that the fuel levy fund direction. is paid by all motorists across the country, most of whom do not have access to good quality roads Vandalism and destruction of road furniture such as the highway. Therefore, those using it should pay some extra fees to help maintain it. Vandalism and destruction of the road furniture, is a challenge to the superhighway in terms of Design constraints and amenities operation and maintenance costs. These losses have been attributed to unscrupulous metal Another issue of concern on the highway is that dealers who target the road furniture, carting it was designed in such a way that there are very away lamp posts, street lighting cables, road signs, few spots where motorists can pull over in case of guard rails, ramps for the disabled pedestrians, an emergency. In view of high speed traffic on it, and other safety materials. Vandalism on the there are high chances of accidents occurring as a highway furniture has cost the taxpayers millions result of stalled vehicles. of shillings in terms of repairs and replacements. It has also contributed to road accidents on the Some of the signage on the superhighway is superhighway, as it deprives the road users of also not consistent with the Kenya highway warning signs and other safety facilities. signs that motorists and road users are used to. For instance, design issues have been raised on The government, therefore, needs to move in fast the gantry-mounted directional signs, among and tackle the menace by imposing stiff penalties other road signs on the superhighway. Design on the offenders, among other measures. The issues that have been raised include: Crowded government plans to introduce toll stations on the information; inconspicuous typography and superhighway through public-private partnership colour; inconsistent labelling of road names, initiatives to increase surveillance. The proposal among others. The expected speed of vehicles is for passenger vehicles to pay a minimum fee on the highway and signs showing distance of Ksh 1.20 per kilometre, commuter taxis to pay seemingly was not put into consideration when Ksh 1.79 and multi-axle vehicles to pay Ksh 3.59. designing and placing the gantry-mounted The concessionaire who will be in charge of the directional signs. toll stations is expected to provide round-the- clock daily route patrol of the highway, maintain The design of exit and access points to the the highway in good condition, safeguard the highway has been challenging to motorists. This road furniture, nub traffic offenders, and respond has been attributed to the short distance between Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 20 POLICY MONITOR Improving public policy making for economic growth and poverty reduction the signage and the exit points. Considering the non-motorized transport (NMT) lanes were also high speed traffic on the highway, drivers need included on either side as well as bus stops. It is, time and space to manoeuvre, before joining the however, observed that the additional planning, service lanes. design and investment of new NMT bridges and facilities needs to be undertaken. Design of It has been observed that the highway experiences foot bridges, NMT lanes and bus-stops should flooding at some places during the rainy season. be guided by thorough research and analysis As witnessed in August 2013 and during other of demand, abutting land uses and road user points in time, flooding of the highway during stated and or revealed preferences. Currently, heavy rains caused a major concern. The massive the revealed user behaviour is not aligned with floods that rendered the highway impassable the design prescription. It is noted that in some led to concerns being raised on clogging and instances, traders (hawkers) and motorcycle and the capacity of the drainage system to handle vehicle taxis have also invaded the pavements high quantity of surface run-offs. While the or bicycle tracks, hence forcing pedestrians to clogging may be attributed to poor solid waste dangerously walk along the road. management, there are indications of hydraulic design issues as a factor to flooding. These Going forward, the sector stakeholders will need challenges point to the need for collective to review the project appraisal and formulation responsibility in solid waste disposal and proper criteria to ensure that economic, socio-cultural maintenance to ensure evacuation of storm water. and environmental factors are allocated objective weights. Rigorous analysis of demand and supply options based on sound data will be required for Road safety multi-modal route planning and design. The road safety indicators reveal that the highway Road planning and design needs to be informed is hazardous, recording a significant number of by a richer database and rigourous research to accidents, injuries and deaths of road users. A take into account all unique technical and non number of road crashes have occurred across technical specifications of a particular road. The the lifecycle of the project, from the construction, deisgn should be fitted to the dictates of the operation and maintenance phases. The crashes target society and environment as possible. have been attributed to human error, design factors and environmental factors. Speeding and Socio-cultural aspects influencing road user reckless driving are the leading causes of crashes. behaviour will need to be incorporated into road Second, the ‘complex’ designs and expected planning and design. Multi-disciplinary aspects Highway Code to inform behaviour have not capturing social psychology and behavioural been well internalised by many of the road users. sciences will need to be given enhanced scope In this regard, the learning curve for road users in project evaluation. To realize long-term gains has been steep and fatal. from infrastructural developments such as the Thika Superhighway, Kenyans need to embrace When it comes to safety of pedestrians and non- collective responsibility to stop adverse behaviour. motorized road users, it is commendable to note that about 17 footbridges were built along the Ultimately, there is need to consistently sensitize stretch from Nairobi to Thika town. Pedestrian and all road users on road safety. The revised Highway Code should be taught from as early as primary school level to inculcate positive road user values. When such a project is undertaken in future, all stakeholders, including road users, should be actively involved from the beginning to ensure that their views on issues such as where to put bus stops, crossing points, relocation of roadside traders and other concerns on road safety are incorporated. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 21 Improving public policy making for economic growth and poverty reduction Going digital could change the fortunes of Kenya’s publishing industry By Hannah Wang’ombe and Winnie Nguyu The increased pervasiveness of technology Notwithstanding the exponential growth of the in today’s society and its impact on publishing industry in Kenya in the last decade, digitization has, and will, transform the its contribution to economic development of publishing industry in Kenya. Despite the advent the country remains minimal. However, digital of new technologies for knowledge distribution, publishing may change this fact. such as the Internet and other computer-based innovations, traditional books and newspapers In Kenya, the publishing industry is estimated remain a primary source of information. to be worth about Ksh 12 billion. According to a Consequently, publishing remains pertinent to 2012 survey conducted by the Goethe Institute, the kind of reading material that is produced and textbooks alone generated 95 per cent of the distributed. However, against the backdrop of total revenue, which was approximately US$300 increased digital platforms, it is highly likely that million per year. Digital publishing provides an digitization will revolutionize the way Kenyans opportunity which, if exploited, can result in read, publish and even store reading material. immense industry growth. The 2015 Nairobi International Book Fair, which The transition within the publishing industry from was themed “Twende Digital”, directly translated, analogue to digital has been sluggish. Therefore, ‘let’s go digital”, saw book publishers congregate for electronic publishing to succeed, technological to showcase their products. This scenario may infrastructure should be in place. change if digital publishing is embraced. This will, however, depend on the ability of the industry to Indeed Kenya has made many strides, evidenced use existing infrastructure to innovate lucrative by ranking top in championing digitization in business models, map stakeholders needs and the African continent. The number of digital expectations and also enforce policies that will platforms accessible to Kenyans is enormous, enhance market structures and demand for digital especially through the mobile phone. publishing in the country. According to 2015 sector statistics report by Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 22 POLICY MONITOR Improving public policy making for economic growth and poverty reduction the Communications Authority of Kenya (CAK), First, price factors will form the foundation of Kenya has a mobile penetration rate of 80.5 per luring companies to venture into electronic cent, with approximately eight out of every 10 publishing. The argument for digital publishing is Kenyan adults having access to a mobile phone. that publishers have only to contend with fixed The number of estimated internet users stood at costs as variable costs are almost negligible in 23.2 million in 2015, with mobile data/internet digital publishing. This couldn’t be further from subscriptions rising to 5.9 per cent to reach 14.7 the truth. million up from 13.9 million recorded in 2014. Publishers will need to provide services such as From 2009, the government undertook a major maintaining subscriber records, sending renewal project to roll-out fiber-optic cable across the notices and billing. Variable costs will be inevitable country. The target to increase internet speeds as publishers will need to provide innovative and provide broadband at reduced cost was met, services to authors and new readers. What digital coupled with increased competition from mobile publishing is guaranteed to do is temper costs, phone providers providing enormous digitization which should improve publishing houses profit possibilities. margins. Second, market demand by readers and libraries The winning strategy for electronic publishing will determine the extent of penetration, uptake and even costing of digital Apart from adoption of technology, availability publishing services. This will only be informed of information about sales figures of digitally by empirically establishing demand and supply published resources through platforms such as factors; that is, the needs and expectations of Amazon is fundamental to a successful framework local authors and readers on digital publishing. for digital publishing in Kenya. The challenge therein lies in not only lacking a best practice Kenya’s publishing industry, well beyond its model for Kenya to adopt but also in developing “Gutenberg” stage, was in the past dominated price setting mechanisms as well as applying by subsidiaries of international companies due digital rights. to high investment for print. However, even with multinational companies’ influence on the publishing of local books, indigenous companies have emerged on a large scale. Digital publishing is rapidly changing and smaller companies that have more flexibility are able to take risks with smaller investments on newer platforms and have the opportunity to develop their organizations in an adaptable way. As the rallying call for this year’s Nairobi International Book Fair is “to go digital”, the questions surmount whether the publishing industry in Kenya is ready for electronic publishing. While it remains a daunting task, opportunities in this digital age are numerous for the publishing industry in Kenya. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 23 Improving public policy making for economic growth and poverty reduction Plastic bag levy is not enough to curb their use By John Nyangena and Leonard Kirui This is not the first time the government is intervening in the plastic bags industry. In 2007, the then Minister for Finance proposed a ban on all flimsy plastic bags with width a less than 30 microns. This was quickly abandoned following protests from manufacturers who threatened to pass on the cost of alternative materials to the consumers. About 60 per cent of bags are less than 15 microns and mainly used for carrying consumer products such as bread, paraffin, wrapping vegetables, etc. Unlike the thicker, heavy bags, these ones are easily carried by air and disposed indiscriminately. Although the 2014/2015 budget statement The levy introduced in the budget did not omitted the environmental sector from discriminate on the basis of quality.its list of six priorities, it contained two measures important for the sector: the need Effects of non-biodegradable plastic bags to reduce the environmental effects caused by Kenyan’s production and consumption patterns, The environmental effects of plastic bags are and the importance of reflecting the true social well documented by the National Environmental costs in the pricing of consumer commodities. Management Authority (NEMA). To begin with, they consume large amounts of petroleum, The plastic bag and its menace on the environment natural gas and energy during their production. was recognized, and an excise duty of Ksh 120 per For example, some estimates show that producing kilogramme introduced on all non-biodegradable 100 bags requires petroleum enough to drive a plastic shopping bags, possibly to make it more small car for a distance of one kilometer. Non- expensive, reduce their use, and ultimately biodegradable plastics take approximately 20 to reduce the consequences on the environment. 1,000 years to decompose, meaning that they can As an alternative, the Treasury Cabinet Secretary remain in the environment for a long period, with alluded to the use of brown paper bags. Bottled disastrous effects. water was, however, surprisingly spared. When disposed through burning, plastic bags The use of special taxes to mitigate the infuse the air with toxic chemicals such as dioxins, environmental effects of production and which are highly toxic and can cause reproductive consumption patterns was first proposed by and developmental problems, damage the Arthur Pigou in 1920. The tax commonly referred immune system, interfere with hormones and to as pigovian tax is meant to address problems also cause cancer. In addition, they lead to deaths of market inefficiency and is usually set at a level of livestock and other wild animals when ingested equal to the social cost of the associated negative thereby threatening livelihoods and tourism. effect. Such a tax has in the past been widely used to tackle consumption of tobacco and alcohol. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 24 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Flimsy plastic bags also clog drainage and sewer and upgrading of plastic waste management systems, exacerbating flooding particularly in infrastructure. This may include providing financial urban areas. The recent floods experienced in incentives to promote private public partnerships many urban areas were blamed on plastic bags, in the development and management of waste which block drainage conduits. Their capacity to infrastructure at county level. hold water for long makes them perfect breeding ground for malaria-causing mosquitoes. In The proposed 50 per cent levy on plastic many parts of the country, plastics are an ‘eye shopping bags should be used to support the sore’, littering everywhere, hence affecting the development of alternative bags that are more ambience of our landscapes. durable, reusable and recyclable. There is also need to zero rate the recycled products to create Part II of the first schedule of the Excise Duty a vibrant market for recycled products. The Bill, 2014 proposes a 50 per cent duty on plastic government, therefore, may need to urge plastic shopping bags of their excisable value. This is manufacturers in the country to own the entire life assumed to trigger a unit price increase to a level cycle of plastic products; and to convince policy high enough to discourage their use while at the makers to formulate rules that make companies same time generate sufficient revenue to finance fully responsible for their waste, which will likely cleanup campaigns. boost the recycling rates in the country. The problem with this is that taxes have their own As Kenya gears towards a green economy inertia and, just like any other tax, consumers transformation, a ban on all plastic bags will be will adapt to them. However, these taxes will a key measure but only if it is accompanied by disproportionately hurt the lower income sectors accessible and affordable alternatives. of society since the full amount of the levy could be passed on to customers at the checkout or sales outlets including shops, supermarkets, and service stations. A ban on these non-biodegradable products will, however, need to be carefully considered, as it may hurt the economy. According to a study by the Kenya Institute for Public Policy Research and Analysis (KIPPRA), the United Nations Environmental Programme (UNEP) and NEMA in 2005, the number of plastic bags industries is estimated at 120, employing about 11,000 people. These have an annual combined production capacity of 84,000 tonnes, while an additional 190 tonnes are imported annually. The main outlet of the plastic bags is supermarkets, which disburse over 100 million units each year. This means that any policy intervention to curb the plastic bags menace must recognize source- directed measures and place them at the core. Recycling is an alternative Most plastic bags as well as plastic bottles never get recycled. The budget should have provided for innovative financial support for recycling Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 25 Improving public policy making for economic growth and poverty reduction AU Commission discusses KIPPRA’s role in Agenda 2063 An African Union Mission delegation visited is planning to roll out soon. According to the KIPPRA on Wednesday, 2 December team, not many people know about the agenda 2015 to discuss the institute’s role and but once the communication strategy is in place, contribution to the implementation of Agenda the commission hopes the message will reach the 2063. The team of five held a meeting with relevant institutions and the general public. KIPPRA’s management, including the acting Executive Director, Dr Dickson Khainga. The second area is capacity assessment, where the Commission intends to identify relevant The visiting team was quite happy to learn that institutions at the regional and continental levels most of what KIPPRA does was in line with Agenda that can drive the agenda as well as assess the 2063’s main objectives. skills and capabilities needed. The third is the establishment of an accountability framework Agenda 2063 is a strategic framework for the and monitoring of progress. The commission socio-economic transformation of the continent reported that they were working on a set of over the next 50 years. It builds on, and seeks parameters to guide sourcing of data and ensure to accelerate the implementation of past and regular reporting. The last area is the identification existing continental initiatives for growth and of resources to implement the agenda, the main sustainable development. The guiding vision for one being domestic financing. Agenda 2063 is the AU Vision of “An integrated, prosperous and peaceful Africa, driven by its The team reported that there were already three own citizens and representing a dynamic force in draft documents in place: one, the framework, international arena”. which is the main/technical document. The second is the 25-page popular version, which According to the AU team, their visit to Kenya summarizes the main document. The last is the and other countries in Africa is meant to establish 10-year plan document. contact with key institutions expected to drive various aspects of the agenda. The team explained that while there was a lot of convergence between the Sustainable Agenda 2063 aims to provide a framework and Development Goals (SDGs) and Agenda 2063, general policies as well as establish benchmarks the later had unique areas. The agenda clearly and targets to guide the continents socio- highlights the role of the service industry in economic development. Each country is expected Africa and looks to cut down on the export of to develop specific policies and strategies low-value raw materials. It also clearly states the depending on their endowments. importance of culture in Africa’s socio-economic development. It also has a broad infrastructure According to the team, African think tanks are agenda, which aims at integrating both small and required to mobilize themselves and see how big economies in Africa. Agenda 2063 also clearly to be involved in the implementation of Agenda brings out Africa’s space in the global agenda, 2063. The agenda’s objectives are expected which will affect future interactions. This includes to either inspire new public policy debates or Africa’s participation in global markets and deep reinforce existing ones. oceans, among other global arenas. The AU team also highlighted four broad The KIPPRA team highlighted research areas that the agenda is targeting to ensure its programmes and collaborations the Institute had smooth implementation. The first is a detailed with local and regional organizations. KIPPRA communication strategy, which the commission was advised to work closely with the African Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 26 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Capacity Building Foundation (ACBF) to come framework had incorporated all these areas but up with research that incorporates Agenda 2063 welcomed additions, as the document was yet objectives. to be finalized. The team promised to share the technical document with KIPPRA. The KIPPRA team wanted to know whether the agenda clearly outlined the role of agriculture, education and the private sector in Africa’s development. The AU team reported that the The African Union Mission during a visit to KIPPRA Switch Africa Green National Stakeholders Workshop Switch Africa Green (SAG) project on national countries in Africa: Kenya, Uganda, Burkina Faso, stakeholders workshop was held from 16- Ghana, Mauritius and South Africa. In Kenya, the 17 November 2015 at the Boma Inn, Nairobi. programme focuses on agriculture, manufacturing The two-day event provided an avenue for the and tourism. common understanding of the project objectives and responsibilities, and expectations and required Mr Musandu, on the other hand, took participants outputs of the country projects among the through the SAG report co-authored with KIPPRA, national stakeholders, grantees, partners and final and invited them to give comments. Other guests beneficiaries (MSMEs). who made presentations on the SAG project and its importance to Kenya and the continent are Dr The workshop’s opening remarks were delivered by Patrick Mwesigye from UNEP and Dr Hezekiah Thomas Musandu of the Ministry of Environment, Okeyo from the Ministry of Environment. and Rhoda Wachira from UNEP. The latter gave an overview of the SAG project, the grantees, and Most of the workshop, however, focused on the expected outputs of the workshop. Participants the four grantees and their partners, who made were informed that the Ministry of Environment detailed presentations on their specific projects. had developed a Green Economy Strategy to The first grantee was International Centre of Insect provide policy direction on green strategies. The Physiology and Ecology (ICIPE), which together forum also got to know that the Switch Africa Green with its partners, is undertaking the ‘Community- budget of Ksh 19 million would be allocated to Based Domestication and Commercialization of the grants for Micro, Small and Medium Enterprises Traditional Medicinal and Insecticidal Plant, Mondia (MSMEs).The programme is being carried out in six whytei, Adjacent to Kakamega Forest’ project. The project aims to conserve the forest by enabling Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 27 Improving public policy making for economic growth and poverty reduction of the leather sector. the systematic harvesting of Mondia whytei, an indigenous medicinal plant, and the development Through the presentation, participants also learnt of a new nutraceutical commercial product that is that the project uses the blended approach in the branded Mondia Tonic. selection of MSMEs in the high, middle and lower ends and that its geographical coverage was The second grantee to present was the Kenya Private Nairobi, Thika, Nyeri, Sagana and Nakuru. Sector Alliance (KEPSA), which highlighted its work with various MSMEs to incorporate Sustainable The greening initiative has seen 30 per cent increase Consumption and Production (SCP) processes and in labour productivity, 15 per cent reduction in to promote resource efficiency, environmental energy consumption, 30 per cent reduction in quality, create green jobs and tackle poverty. machine idle time, 30 per cent reduction in solid waste and improved quality of soles produced using The third was SUS-TOUR, an initiative aimed at recycled materials. enhancing sustainable tourism innovation for community empowerment in Kenya. The project Participants got a chance to comment and seek aims at ensuring greening of the tourism sector clarifications after every presentation. through SCP as well as empowering the community The presentations were followed by group to ensure that they not only benefit from tourism discussions where each grantee together with their activities but also participate in conservation efforts. partners discussed the challenges they faced in The last grantee, Common Market for Eastern and the implementation of the projects, coordination Southern Africa (COMESA), made its presentation on mechanisms during implementation and the the second day of the conference. The presentation approaches the MSMEs could use to engage with focused on the leather industry and its contribution stakeholders. to Kenya’s economy. The participants learnt that the After the group discussions, each group made industry’s output was higher than that of the sugar presentations of their findings. The workshop ended and tea sectors. The objectives of the project are with the presentation of dummy cheques to the to design and enhance competitiveness, promote grantees and a group photo of all the participants. recycling and reduction in the use of chemicals, develop a roadmap of improving effluent management and quantification of carbon footprint Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 28 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Lively interaction with St. Austin’s Academy students KIPPRA had the privilege of with its stakeholders, including findings to advise policy makers hosting 30 senior students through policy taskforces and in the country. This, therefore, and two teachers from St. working groups; dissemination means that once the research Austin’s Academy, Nairobi on seminars and workshops; findings are disseminated, it 4 November, 2015. roundtable discussions and the is up to the policy makers and secondment of government stakeholders to adopt what The students wanted to know officers to the institute. is relevant to their particular what KIPPRA does and the needs. subject combinations they The presentation was followed needed to excel in to stand a by an interactive session where While acknowledging the chance of pursuing a career in the students asked a variety of challenges the country is public policy research. questions, including KIPPRA’s currently facing, Prof. Kieyah role in the implementation said Kenya also had many The team was received by Prof. of policies, Kenya’s economy success stories. To illustrate Joseph Kieyah, KIPPRA’s acting and whether it was all gloom the marked progress Kenya Programmes Coordinator, and doom as well as the had made in the last few years, who later gave a detailed significance of President Prof. Kieyah said after his more presentation on the institute’s Obama’s visit to Kenya. than two-decade stay in the mandate, its capacity building US, he came back home to role, structure, stakeholders Prof. Kieyah explained that find a totally different country and partners as well as the after conducting an objective with good roads and massive functions of each division. He research and analysis on development, especially in also highlighted some of the various issues affecting the real estate. Other examples ways the institute interacts economy, KIPPRA uses its he used to illustrate Kenya’s Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 29 Improving public policy making for economic growth and poverty reduction success are: Lupita Nyong’o’s mathematics forms the basis a brief presentation on the win of the Oscar, Obama’s for logical thinking; that to harmful effects of HIV and recent visit to the country, excel in any career, a grasp of Aids to Kenya’s economy. the Mpesa innovation and the the subject was paramount. The students were, therefore, continued shining of Kenya’s urged to be safe to avoid athletes in the Diaspora. Before the students and infection. The group later teachers were served with posed for a photo. The session ended with Prof. refreshments and snacks, Kieyah making a case for the Anne Gitonga, a policy pursuit and excellence in analyst in the Private Sector mathematics. According him, Development Division made Race to restore poor children’s sight The annual Standard stadium by 4a.m meant that The marathon attracted Chartered Nairobi vehicles were parked far and people of all walks of life and Marathon took place on participants had to walk long ages. It was also graced by 25 October 2015 and KIPPRA distances to get to the venue. parliamentarians, senators, could not miss an opportunity Nairobi County Deputy to be part of this worthy cause The organizers of the race left nothing to chance when it Governor and heads of various meant to raise funds towards public and private institutions. the ‘Seeing is Believing’ came to security. Apart from initiative. The programme aims various roads being closed Apart from some incidences of pickpocketing around at raising funds for the needy early, there was a thorough the watering points and an in the community, especially frisking of participants and a imposter who caused drama children who need eye care heavy police presence in and and restoration of sight. around the stadium. Police after claiming to come second choppers also hovered over in the 42km race, the marathon The marathon attracted more the stadium for a better part went on smoothly. than 20,000 people who of the morning. The Nairobi Marathon is part participated in six categories: KIPPRA staff gathered at a nine races -- Jersey, Bangkok, Tricycles 42 Km, wheelchairs 21Km, full marathon (42Km), central point before the races Singapore, Dubai, Mumbai, Hong Kong, the Falkland half marathon (21Km), 10Km for a briefing and photo Islands and Kuala Lumpur -- and family fun run. Fourteen session. There were also photo sessions at the finish points which are sponsored by the KIPPRA staff were among Standard Chartered Bank. majority of the runners and during the awarding of who participated in the half medals. marathon (21km) and 10km. Enthusiastic Nairobians, fitness lovers and veteran athletes were up and early and most of them streamed into Nyanyo National Stadium before sunrise. The closure of the roads leading to the Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 30 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Nairobi Trade Fair provides platform for interaction The Kenya Institute for Among the dignitaries well as the possible markets Public Policy Research who stopped by KIPPRA’s for the produce. They said and Analysis (KIPPRA) stand included the Principal this would educate the youth was among over 500 foreign Secretary, State Department and other young farmers and local exhibitors at the of Planning, Eng. Peter on best practices and the annual Nairobi International Oganga Mangiti and Senior most profitable ventures. Trade Fair that took place from Administrator at the Ministry Some of the professionals 28 September to 4 October, of Devolution and Planning and researchers who already 2015. Hassan Noor Hassan. knew about KIPPRA wanted Through the fair themed information on Young “Our think tank!” remarked ‘Enhancing Technology in Professionals Programme and Mangiti before asking, “So Agriculture and Industry for how they could be part of it. what do you have for us today?” Food Security and National They got a detailed explanation to which KIPPRA staff manning Growth’, KIPPRA got an of the programme, its benefits the stand responded with opportunity to showcase and the process of application.an explanation of the latest its products, explain to the researches and publications Since the fair coincided with public its vital role in Kenya’s the Institute had done. the nationwide teachers public policy and enhance its th strike that saw public schools image. Visitors got to know The 13 edition of the closed for more than a month, KIPPRA’s vision, mission and trade fair also provided student turnout was generally core mandate and most of a platform for KIPPRA to low. However, educationists them were given the ‘KIPPRA interact and exchange ideas and teachers who stopped in Brief’ to enable them learn and experiences with other by KIPPRA stand wanted to more about the Institute. researchers and the public. A know whether the institute Through the publications number of those who visited had conducted a research distributed, researchers, KIPPRA suggested that the on teachers’ salaries. It was students and government Institute should do a lot of explained to them that KIPPRA and public officials got a feel research on various forms had conducted a research of some of the research work of agriculture, including titled ‘A Comparative Study KIPPRA does. dairy and poultry farming as on Public-Private Sector Wage Differentials in Kenya‘, which could guide the Salaries and Remuneration Commission and the government on how to handle the salaries issue. The trade fair was officially opened by President Uhuru Kenyatta who said the government was undertaking major reforms in the agricultural sector to boost production and increase profits for farmers. Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 31 Improving public policy making for economic growth and poverty reduction Going digital will change dynamics of Kenya’s publishing industry publishing industry KIPPRA participated in with A Comparative Study on Eng. Kyalo reiterated that a 18th Nairobi International Public-Private Sector Wage thriving digital publishing Book Fair, which took Differentials in Kenya and the industry was fundamental place from 23-27 September, Kenya Economic Report 2014 to building a successful 2015. Themed ‘Twende Digital’ generating the most interest. knowledge economy. While (directly translated ‘let’s go the ICT Authority, in building digital’), the fair provided The official opening of the the country’s knowledge an opportunity for KIPPRA book fair was graced by economy, would take a to inform the public of its Eng. Victor Kyalo, CEO ICT lead role in regulation and mandate as well as showcase Authority, who, in line with the fair’s theme, said efforts were quality assurance of digital research publications. underway for the government publishing, it would also create Seven KIPPRA staff participated to deliver its promise of a platform to build capacity in the event that saw more providing digital devices to of publishers in developing than 500 people visit the stand, primary school children. He content, networking and including the former Prime noted that the approach in forging partnerships where Minister Hon. Raila Odinga, delivering the devices would ideas and innovations would senior government officials, be gradual but sustainable. be exploited. It would also academicians, publishers A number of foreign and provide a platform to bring and students. During the international exhibitors also together experts in the week-long event, KIPPRA attended the fair. publishing industry. distributed 1,226 publications CONT. ON PG 33 Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 32 POLICY MONITOR Improving public policy making for economic growth and poverty reduction KIPPRA Engages in National Policy Dialogue on Domestic Climate Financing As Kenya and the rest of In this regard, the Kenya She said Africa must focus the world continue to Institute for Public Policy on climate-smart agriculture suffer adverse effects Research and Analysis (KIPPRA) to ensure sustainable food of climate change, experts together with Food, Agriculture security. and scientists have intensified and Natural Resources Policy efforts to find solutions. Their John Nyangena and Joshua Analysis Network (FANRPAN) efforts, however, face various Laichena of KIPPRA discussed held a national policy dialogue challenges, key among them the importance of policy and on domestic climate financing finances. institutional frameworks in on 13th August, 2015 at the mobilizing domestic climate For many years, the developing Boma Hotel, Nairobi. change financing. A clear world looked up to Western The workshop attracted experts policy framework would create countries to finance climate from government ministries incentives for climate response, change adaptation and and departments, non- generate public resources, mitigation efforts, and justifiably governmental organizations, define climate-resilient options so because the developed civil society and UN agencies. and stimulate clean technology nations contribute most of the Representatives from FARNPAN development. On the other green house gases that are and KIPPRA made detailed hand, an institutional framework largely to blame for the menace. presentations on the current would coordinate climate Funding from these countries state of climate financing in finances, identify and address has, however, been unreliable Kenya and Africa. capacity needs, set standards and developing countries, most and protocols for measuring, of which are in Africa, are now FARNPAN representative, reporting and verification and forced to find homegrown Sithembile Ndema, outlined would also link domestic to sources of funding. her organization’s efforts in international processes. combating the effects of climate. Cont. on next page 33 Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 33 Improving public policy making for economic growth and poverty reduction FROM PG 31 The first International Book Fair KIPPRA, cannot afford to require you to consume was held in Frankfurt, Germany ignore digital publishing. it in any form; to either in the year 1400 and it remains KIPPRA could contribute to the constructively produce it or the largest of its kind to date policy discourse by empirically use it efficiently.” with over 7,000 exhibitors from establishing a baseline on over 100 countries and more Other events during the book digital publishing and the than 286,000 visitors taking fair included workshops and subsequent effect that such an part. Widely known as the seminars on topical issues, industry would have on literacy father of publishing, Johannes book launches and children levels and quality of books and Gutenberg is attributed to have activities. To crown the other reading materials being printed the first book. Since fair, the Kenya Publishers produced digitally. then, books have been vessels Association organized a of knowledge. However, the The chairman of the Kenya dinner where the winners of introduction of radio, television Publishers Association, the 2015 Text Book Centre and most recently the internet David Waweru, who was Jomo Kenyatta Prize for has changed the dynamics of one of the guest speakers Literature were announced. publishing, storing and even during the official opening reading books. Therefore, said: “Contributing to the Kenya, and by extension knowledge economy will Cont. from previous page 32 The KIPPRA policy analysts pointed out the various sources of climate change financing so far and that most of it was being used for mitigation and very little in adaptation activities. Nyangena and Laichena also heighted some of the important elements in mobilizing domestic sources of funds. They include accountability, right policies, effective coordination and adequate capacity. exaggerating the potential activities; promoting climate- Emuhaya Member of Parliament effects of climate change. smart agriculture; and ensuring Wilberforce Ottichilo, who incorporation of energy-saving is championing the Climate The various government techniques in construction. Change Bill in Parliament, said officials present at the dialogue once the Bill becomes law, it enumerated the measures Other key issues highlighted at the dialogue include the need to will provide guidance on how to taken by the government to create a centralized pool of data tackle climate change, including adapt to and mitigate the financing. Hon. Ottichilo effects of climate change. They on climate change research and narrated his tumultuous journey include giving incentives and activities in Kenya. This would ensure collaborative effort articulating and championing tax holidays or exceptions to organizations and investors by the various stakeholders climate change issues since the early 1990s, saying many people engaging in renewable energy and proper allocation and and other climate-favourable monitoring of resources.did not initially understand his concerns and thought he was Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 34 POLICY MONITOR Improving public policy making for economic growth and poverty reduction KIPPRA’s Presence at the Kisumu Regional ASK Show Principal Secretary, State Department of Livestock Prof. Fred Segor tours the Ministry of Devolution and Planning stand at the showground The Kenya Institute for showcase its research outputs recommendations, suggestions Public Policy Research and interact with the public on and appeals most of which are and Analysis (KIPPRA) public policy issues. detailed in the visitors book was among exhibitors at the (to be forwarded to concerned The show was officially opened Agricultural Society of Kenya divisions). by the Principal Secretary, Kisumu Regional show that State Department of Livestock The Anti-FGM Board, for took place from July 28, 2015 to Prof. Fred Segor. Other guests instance, requested KIPPRA to August 2, 2015. who visited the KIPPRA stand include FGM issues in its surveys The Knowledge Management included the NGO Coordination to help eradicate the vice in and Communications Division Board Acting Chief Executive Kenya. Researchers running spearheaded the institute’s Officer Rebecca Ombete, Kenya a project in one of the local participation at the show School of Government (KSG) universities further suggested whose theme was “Enhancing Director Academic Affairs Mrs. that KIPPRA should consider technology in agriculture and Leah Munyao, and Anti-Female conducting a research on the industry for food security and Genital Mutilation Board Acting elderly in Kenya because so far, national growth”. CEO Jane Mwereru among no data is in place. others. Under the Ministry of Devolution KIPPRA’s stand also attracted and Planning umbrella, the The visitors who visited academicians, university institute got an opportunity to the Institute’s stand made and high school students, Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 35 Improving public policy making for economic growth and poverty reduction researchers and many other parts of the country, depending campuses. This effort was curious visitors who wanted to on the study. much appreciated with some know what the institute was all of the university students about. Also, given that it was an hurrying to the stand to get agricultural show, many of materials for their personal Apart from getting a detailed the visitors expected to see reading and research. explanation on KIPPRA’s vision, publications on farming in mission and its core mandate, general such as livestock most of the visitors to the stand breeding and fish farming. were given ‘KIPPRA in Brief’ to enable them learn more about The KIPPRA team took the Institute. Some visitors advantage of the presence of wanted to know why KIPPRA local and public universities’ KIPPRA staff at the stand was based in Nairobi yet the constituent colleges at the show policy issues researched on to disseminate policy papers took time to explain how KIPPRA undertakes its affected the entire country. The and other research materials research; that researchers KIPPRA staff at the stand took that would on average not time to explain how the Institute reach such institutions, as they collect data from all parts undertakes its research; that are usually sent to the main of the country, depending on the study. researchers collect data from all KIPPRA Showcases Products at Nakuru ASK Show Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 36 POLICY MONITOR Improving public policy making for economic growth and poverty reduction Kenya Institute for Public of visitors, mostly students, to find relevant publications on Policy Research and researchers, government their specific areas of research.Analysis (KIPPRA) was officials and businesspeople Other prominent visitors to among many organizations who were interested in the KIPPRA stand included that exhibited their products the latest technological the Nakuru County Governor at the Nakuru Agricultural innovations and information Kinuthia Mbugua, county Society of Kenya Show that in the agricultural field. officials and representatives took place from June 29th to July 4th 2015. While officially opening the from various non- show, the Acting Cabinet governmental organizations. KIPPRA was among other Semi Secretary for Agriculture, However, some of the visitors Autonomous Government Livestock and Fisheries Mr Adan admitted that they did not Agencies (SAGAS) and Mohammed, emphasized the know much about KIPPRA and directorates hosted under the need to embrace technology were only drawn to the stand Ministry of Devolution and to enhance agricultural growth by the colourful mix of KIPPRA Planning umbrella. Apart from and ensure Kenya becomes branding colours, the banners improving KIPPRA’s visibility, an industrialized state in and other branding items that the event provided an accordance with the Vision were prominently displayed opportunity to directly interact 2030. in the stand. KIPPRA staff with the public and share were on hand to educate such policy ideas with stakeholders Among the products that visitors on what the Institute in the newly formed county KIPPRA exhibited included policy papers on agriculture, was all about and even handed government. food security, health, them relevant publications The show whose theme was education, national cohesion for further reading and ‘Enhancing technology in and infrastructure, which information. agriculture and industry for mainly attracted university Some of the visitors who food security and national students and researchers. wanted to know more about growth’ attracted hundreds Many of them were very happy Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 37 Improving public policy making for economic growth and poverty reduction the Institute took their financial delivery, he realized incorporated in the policy time to watch the KIPPRA that many of the relevant dialogue. He urged the documentary displayed on parties, such as major banks, Institute to ensure all relevant the plasma screen inside the financial institutions and stakeholders were consulted stand. autonomous bodies loaning in the course of policy Other visitors who knew community groups, were not formulation. about KIPPRA and had even Some visitors suggested interacted with the Institute in that KIPPRA should device a the past took the opportunity mechanism to monitor public to air their views and respond KIPPRA staff at the stand policy implementation to the to various issues touching on took time to explain how grassroots. Other subjects the Institute. One such visitor, KIPPRA undertakes its suggested for research include Douglas Muhoho of Uwezo research; that researchers devolution, county budgeting, Fund, said after attending collect data from all parts land reforms, youth fund for a recent forum by KIPRPA of the country, depending devolved governments, fish on policy formulation and on the study. farming, entrepreneurship and operations for enhancing of SME support. County validation workshops for the study on co-management of forests The Kenya Institute for Public Policy Research forests in Kenya. The Act The purpose of the study, and Analysis (KIPPRA) provided for the involvement therefore, was to review the together with Environment of neighbouring communities effects of the co-management for Development (EfD)-Kenya in forest conservation and and assess the extent to which carried out county validation management through the new management system workshops for the study on Community Forest Associations is working to enhance forest co-management of Aberdare, (CFAs). It also provided for conservation. Kakamega and Arabuko the establishment of Kenya Sokoke forests. Forest Service (KFS). The Act The study used household has specific provisions related surveys, focus group The workshops took place in to access rights and benefits discussions and key stations near each of forests sharing arrangement, which informants to collect data. from 15th to 18th December, provide a role for communities Various aspects were analyzed 2015. The study was funded by in the utilization of forest to determine the level of each the University of Gothenburg resources and protection of community’s dependence in Sweden. forests. The participation of the on forest resources as well community in decision making as their involvement in The Forest Policy 2007 and Forests Act 2005 came up is meant to ensure sustainable the management. These forest conservation. included the demographics with new ways of managing of the community members Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 NEWS HIGHLIGHTS 38 POLICY MONITOR Improving public policy making for economic growth and poverty reduction interviewed; their membership Among the key benefits to CFAs, Community Based of forest co-management the findings, most of those Organizations or other include: Firewood, grazing, interviewed felt that CFAs organizations; the benefits rafters, farmland, prevention of played an important role in they derived from the forest; soil erosion and maintenance the conservation of forests. whether or not they paid fees of biodiversity. According to to access the benefits and if so, how much; whether or not the CFA contributed to ,. .I I!' ------ forest management and the hindrances to accessing forest benefits. The workshops were meant to validate the findings of About EID the study as well as gather additional comments and -l~lil-.l~.l.-ll.lo.-l_llnl'.l~-l-l•ll-:-:ar, ...-.. P...l...i.~ ,~---.-.,-.~-corrections. Most of the 1111....a ...... 1111 ■m••~.....-. ............,.,........i ..-..-.....-_...- ... . 1111..... ~- workshop attendees were CFA members. Others were KFS ~, . -,J'. and KWS officials as well as ... local leaders. " l!I Q ■ ~ '1 !I - II "' , . " ..   Geita Community Forest Association Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 POLICY MONITOR 39 Improving public policy making for economic growth and poverty reduction   Issue 6, No. 2 July - December 2015 Issue 6, No. 2 July - December 2015 Av Na oi wla ble 40 POLICY MONITOR Improving public policy making for economic growth and poverty reduction 40 Thi! IICIN'l'A INSfflUT,E for· PUIUC .OUCI" RHYll!H <>NI .IIN&t'V$1S ABOUT KIPPRA Bishops Garden Towers, Bishops RoadPO Box 56445, Nairobi, Kenya Tel: +254 20 2719933/4; Fax: +254 20 2719951 The Kenya Institute for Public Policy Research and Analysis (KIPPRA) is an Email: monitor@kippra.or.ke autonomous institute whose primary mission is to conduct public policy research leading to policy advice. KIPPRA’s mission is to produce consistently high-quality Website: http://www.kippra.org analysis of key issues of public policy and to contribute to the achievement of Twitter: @kipprakenya 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. 2030 KIPPRA acknowledges generous support from the Government of Kenya To create a globally (GoK), the African Capacity Building Foundation (ACBF), and the Think Tank competitive and Initiative (TTI) of IDRC. The TTI is a collaborative initiative of Hewlett Foundation, prosperous nation with International Development Research Centre (IDRC) and other partners. a high quality of life by Other organizations are welcome to contribute to KIPPRA research either as 2030 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. Issue 6, No. 2 July - December 2015