Policy Monitor Sustaining Development Momentum in the Electioneering Year and Beyond: ISSUE 14 No. 4 April-June 2022 PERSPECTIVES ON TRADE, NATIONAL UNITY AND YOUTH EMPLOYMENT C o n t e n t s Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Recent Economic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Developments in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Implications of DR Congo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Joining the East African Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Economic Sectors with Greatest Potential for . . . . . . . . . . . . . . . . . . . . . . . 16 Creating Decent Work for the Youth in Kenya (2019-2025) . . . . . . . . . . 16 Promoting National Unity in Kenya Beyond Elections . . . . . . . . . . . . . . .22 Legislative Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Policy News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 KIPPRA Demand-Driven and Collaborative Research Projects . . . . . .32 KIPPRA EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Editorial team 1. John Karanja 2. Melap Sitati 3. Charity Mbaka 4. Jane Kenda 5. Kenneth Kiptanui 6. Adan Shibia Contributors 1. Jacob Nato 2. Eldah Onsomu 3. Boaz Munga 4. Violet Nyabaro 5. Martin Nandelenga 6. Kenneth Malot 7. Paul Lutta 8. Judith Nguli 9. Janeth Chebwogen 10. Jimmy Mercy Design & Layout 11. Caroline Mukiira 12. Jane Mugambi Nelig Group Ltd 13. Mohamednur Duba Issue 14, No. 4, April-June 2022 2 3 Issue 14, No. 4, April-June 2022 Editorial W elcome to the KIPPRA Policy Think Tanks Symposium, Courtesy Call on Monitor, the April-June 2022 CBK Governor by KIPPRA Executive Director, edition. The theme of this edition Induction of KIPPRA Board Chair and members, is “Sustaining Development and KIPPRA Executive Director taking reins Momentum in the Electioneering at Southern Voice. It concludes with the 5th Year and Beyond: Perspectives on Trade, KIPPRA Annual Regional Conference and National Unity and Youth Employment”. This KIPPRA Silver Jubilee Celebrations that were edition comes at a time when Kenya is gearing held in June 2022. up for the general elections in August 2022 and maintaining national unity is critical for the In fulfillment of its mandate on sharing country. The articles are, therefore, focused on research findings, the Institute undertook measures to promote growth during and after various activities including participating in the electioneering period. the 9th edition of Africities held in Kisumu from 17th to 22nd May 2022 where preliminary The main articles in this edition focus on the findings were presented for the study on following: Recent economic developments; Urban Economic Growth: A Case for Nairobi Implications of DR Congo joining the East City County being undertaken in collaboration African Community; Economic sectors with with AGI-Brookings Institution. greatest potential for creating decent work for the youth; and promoting national unity in the Finally, the Policy Monitor highlights key policy electioneering period and beyond. news at domestic, regional, and international levels, and legislative developments at the The Policy Monitor also highlights KIPPRA’s National Assembly and the Senate. demand-driven and collaborative projects, such as the development of a Local Economic On behalf of the KIPPRA fraternity, we hope Development Plan for Kisumu County along you will be informed as you read this edition. other key activities such as the 3rd Kenya Issue 14, No. 4, April-June 2022 2 3 Issue 14, No. 4, April-June 2022 Recent Economic Developments in Kenya By Jacob Nato This article analyses the country’s recent economic growth considering the upcoming general elections with a focus on four key areas: the growth of economic activities, monetary and financial policy, fiscal developments, and the external sector. Economic Growth T he growth of the economy in the uptake of the vaccination. However, the recent first quarter of 2022 was 6.8 per increases in confirmed cases of the virus are a cent compared to a growth of 2.7 source of concern. per cent in the first quarter of 2021 (KNBS Quarterly GDP Report, 2022), The economic growth is projected at 6.0 per reflecting an economic rebound. Sustaining cent in 2022 (Budget Statement for 2022/23). the recovery is, however, susceptible to global The Purchasing Manager’s Index (PMI) for shocks such as the ongoing Russia-Ukraine Kenya (Stanbic Bank PMI Report, 2022) showed war; resurgence of COVID-19 infections; and an improvement in business conditions up to rising prices of food, fertilizer, and energy. This December 2021, when the PMI rose to a high is also an electioneering period, with general of 53.7 points. This was, however, followed by a elections in August 2022. The government has deterioration in January 2022 with a PMI of 47.6. put in place measures to ensure a peaceful February and March 2022 had scores above 50 election process and continued economic of 52.9 and 50.5, respectively. However, Kenya’s growth. business conditions deteriorated between April, May and June 2022 given the PMI scores The Russia-Ukraine war is expected to have of 49.5, 48.2 and 46.8, respectively. These have a spill-over effect on Kenya’s economy. The been attributed largely to rising inflation and effects are likely to be felt through higher the decline in what is spent by clients of goods commodity and food prices given the nature and services. of commodities that Kenya trades with the In the tourism sector, the number of tourist two countries. For instance, Kenya has been arrivals to Kenya has seen a gradual recovery importing oils and fats, cereals, and seeds between January and April 2022. The arrivals from Ukraine. Further, Kenya relies on Russia through Jomo Kenyatta International Airport for importation of steel, iron, fertilizers, wheat, (JKIA) and Mombasa International Airport and paper. Kenya then exports fruits and (MIA) for the first four months of 2022 were vegetables, tea, and cut flowers to Russia and 69,236; 73,950; 81,409 and 81,328, respectively, Ukraine. If the war is protracted, this will mean indicating a gradual recovery from January to lower export earnings for Kenya and the need April 2021 where the total arrivals, respectively, to find new source and destination markets for were 59,687; 45,964; 52,051 and 40,183 (Annual these commodities. Tourism Sector Performance Report, 2021). Of these arrivals between January and April On the upside, Kenya has done well in 2022, 283,860 were through Jomo Kenyatta containing the spread of COVID-19 and International Airport, while 22,063 visitors were Issue 14, No. 4, April-June 2022 4 5 Issue 14, No. 4, April-June 2022 through Moi International Airport, Mombasa. If food inflation may be attributed partly to the the global recovery from COVID-19 is sustained, drought situation that has engulfed the north- it is expected to result in a better performance eastern parts of Kenya that are largely arid and of the tourism sector. semi-arid areas. The government has, however, been responding by offering relief supplies The overall inflation rate for April, May and to the affected areas. In addition, a waiver on June 2022 was 6.5 per cent, 7.1 per cent and 7.9 maize imports is expected to be in force from per cent, respectively, compared to the same July 2022, a measure that would help to bring period in 2021 when the overall inflation rate down food inflation. Prospects of good weather was 5.8 per cent, 5.9 per cent and 6.3 per cent, are also expected to improve the outlook on respectively. The average inflation rates for inflation. April to June 2022 was 7.2 per cent, which was higher than the 6.0 per cent average recorded Fuel pump prices increased between April in the same period for 2021, and even higher and June 2022. Pump prices for super petrol, than the 5.6 per cent average for April to June diesel, and kerosene increased by an average 2020 (Figure 1). The rise is largely driven by of Ksh 9.90 per litre between 15th April to 14th increase in prices of commodities, especially May 2022, and further by Ksh 5.50 per litre food and beverages, household equipment from 15th May to 14th June 2022 (EPRA Press and furniture, and transport. Fuel inflation Release, 14th May 2022). This is attributed to rose sharply from an average of 5.2 per cent in the upward price revision to the increase in April to June 2020, to an average 14.2 per cent landed cost of imported fuel. The ongoing for 2021, but eased to 9.2 per cent for the same geo-political tension in Europe has also had period in 2022. For food inflation, the average implications on the global oil prices. The for April to June 2020 was 10.3 per cent, and this government has sealed a deal for cheaper oil declined to an average of 7.3 per cent in 2021, from Saudi Arabia to be operationalized from before rising to 12.8 per cent for 2022. However, August 2022. Furthermore, the government non-food-non-fuel inflation has been on an aims at eliminating the fuel subsidy, which upward trend for the period, rising gradually was increasingly becoming unsustainable, and from an average of 1.8 per cent to 2.5 per cent instead replace it with a gradual adjustment of between 2020 and 2021, and further to average fuel prices. 2.7 per cent in April-June 2022. The rise in Figure 1: Inflation rates (April-June 2022, vis-à-vis 2021 and 2020) Data Source: CBK Weekly Bulletin (various issues) Issue 14, No. 4, April-June 2022 4 5 Issue 14, No. 4, April-June 2022 Monetary and Financial Policy Credit to the private sector stood at Ksh 3,193.1 billion in April 2022 compared to Ksh 2,864.2 The Monetary Policy Committee (MPC), during billion reported in April 2021. This performance its meeting on 27th July 2022, maintained the reflected a significant growth from 6.7 per Central Bank Rate (CBR) at 7.50 per cent, a cent in April 2021 to 11.5 per cent in April 2022 rate it first adopted during its meeting of 30th (Figure 2). This growth in credit in April 2022 May 2022. The MPC attributed its decision to was broad-based with strong credit growth in the expected easing of domestic inflationary transport and communications (28.9%), mining pressures in the near term based on the and quarrying (28.3%), consumer durables observation that international commodity (16.1%), business services (12.2%), manufacturing prices had begun to moderate. Additionally, the (12.0%), trade (10.7%), building and construction MPC noted that the fiscal measures instituted (8.2%), agriculture (6.4%), private households by the Government had also moderated prices (6.7%), and finance and insurance (5.8%). The of specific items, and the sustained optimism robust performance reflecting increased about business activity from the surveys demand for credit with increased economic conducted ahead of the MPC meeting. activities (Figure 2). Figure 2: Credit to the private sector Data Source: CBK Weekly Bulletin (various issues) Data Source: CBK (2022), Monthly Economic Indicators, April 2022 Issue 14, No. 4, April-June 2022 6 7 Issue 14, No. 4, April-June 2022 The ratio of non-performing loans (NPLs) to cumulatively amounted to Ksh 783.5 billion gross loans declined marginally to 14.10 per cent from a revised estimate of Ksh 1,007.9 billion, in April 2022 from 14.24 per cent in April 2021. while that of external loans and grants totaled Nevertheless, the volume of NPLs increased an actual of Ksh 172.1 billion from a revised from Ksh 438.3 billion to Ksh 482.6 billion over estimate of Ksh 433.1 billion. Overall, the the same period. The increase in the volume actual receipts for total revenue cumulatively of NPLs was on account of specific challenges amounted to Ksh 2,666.3 billion from a revised in the respective businesses, coupled with estimate of Ksh 3,279.8 billion, which represents credit impairments in specific economic an underperformance in all the receipt sources sectors. Sectors such as tourism, restaurants, for revenue. and hotels, building and construction and manufacturing were noted for the increase The total recurrent exchequer issues amounted in NPLs. Nevertheless, the banking sector to Ksh 1,020.4 billion, the total CFS exchequer remained resilient and stable, supported by issues amounting to Ksh 1,046.6 billion, while strong capital adequacy and liquidity ratios. The total development exchequer issues amounted total capital adequacy ratio stood at 18.8 per to a cumulative of Ksh 283.1 billion, which all cent in April 2022, which is above the statutory translated to a total of Ksh 2,350.1 billion in requirement of at least 14.5 per cent. The issues to the national government, excluding strong capital adequacy ratio was supported appropriation-in-aid. In terms of the county by a faster growth in total capital relative to governments equitable share, the actual total risk-weighted assets. The average liquidity cumulative equitable share issues amounted ratio for the banking sector was 54.3 per cent to Ksh 286.5 billion. The exchequer balances in April 2022, which is also above the minimum improved for the period under review from statutory limit of 20 per cent. The total liquidity Ksh 30.2 billion as at 31st March 2022 to Ksh 51.0 ratio in April 2022 was 54.3 per cent, which was billion as at 31st May 2022. Going forward, the lower than 56.5 per cent recorded in April 2021, government aims to maintain tight spending but higher than 51.2 per cent registered in April control while simultaneously protecting social 2020. security spending. On their part, counties are expected to raise Ksh 56.7 billion as own source The interbank rate averaged 4.62 per cent revenue (Kenya Economic Survey, 2022). between January and April 2022, which was a decline from an average of 4.99 per cent On public debt, the National Treasury proposed over a similar period in 2021. Furthermore, the to raise the limit on the debt ceiling from interbank rate declined from 4.72 per cent to Ksh 9 trillion to Ksh 10 trillion to enable the 4.67 per cent between March and April 2022. government to finance the Ksh 3.3 trillion The decline in the interbank rate reflects a budget for 2022/23. This was approved by higher availability of credit by banks that are Parliament on 7th June 2022. The National lending to the economy. Yields on government Treasury also proposed a replacement of the securities in April 2022 stood at 7.4, 8.3 and 9.7 debt ceiling with a debt anchor set at 55 per per cent for the 91-day, 182-day, and 364-day cent of debt to GDP in present value terms treasury bill, respectively. These yields represent (Budget Statement for 2022/23). higher values when compared to average rates of 7.3, 8.1 and 9.6 per cent for the 91-day, 182-day External Sector Developments and 364-day Treasury Bill for the first quarter The Kenya Shilling depreciated slightly against 2022. the US Dollar, but slightly improved against the Sterling Pound and the Euro for the April to June Fiscal Developments 2022 period. The Kenya Shilling recorded an The economy in the first five months of 2022 average exchange rate of Ksh 116.32, Ksh 146.67 showed a strong recovery, with the cumulative and Ksh 124.21 against the US Dollar, Sterling tax revenue amounting to Ksh 1,638 billion Pound, and the Euro, respectively, in April to against a revised estimate of Ksh 1,741 billion June 2022 compared to average exchange rates (Kenya Gazette, 17th June 2022). The improved of Ksh 107.73, Ksh 150.60 and Ksh 129.87 against revenue collection was on account of increased the US Dollar, Sterling Pound and the Euro, economic activity following the easing of respectively, in the same period of 2021. The COVID-19 containment measures, tax policy depreciation of the Kenya shilling against the measures, and enhanced tax collection US Dollar emanated from growing demand for efforts. Similarly, non-tax revenue collection foreign currencies in the face of rising import cumulatively amounted to Ksh 59.5 billion prices, rising global fuel prices, geo-political against a revised estimate of Ksh 67.1 billion. tensions in Europe with Russia-Ukraine war, rising cost of external debt repayments, rising The actual receipts from domestic borrowing inflation expectations, and other uncertainties Issue 14, No. 4, April-June 2022 6 7 Issue 14, No. 4, April-June 2022 in the global scene. The CBK maintained within the statutory requirement of at least 4 sufficient foreign exchange reserves where months of import cover and the East African the stock of official reserves stood at US$ 8,028 Community’s (EAC) convergence criteria of 4.5 million (4.77 months of import cover) as at months of import cover, and hence continue to end June 2022. This though was a 1.7 per cent provide an adequate buffer against short-term decrease from US$ 8,144 (4.95 months of import shocks in the foreign exchange market. cover) reported in June 2021. The reserves are Figure 3: Exchange rate against major currencies Data Source: Central Bank of Kenya The value of export of goods increased from US$ 11.45 per cent, respectively, of the total import 6,178.4 million to US$ 6,871.1 million between value. Consequently, the volume of trade grew April 2021 and April 2022, registering a growth by 19.43 per cent from US$ 21,409.5 million to of 11.21 per cent. This growth in exports was US$ 25,569.4 million between April 2021 and due to a growth in demand for Kenya’s exports April 2022. Furthermore, the current account mainly food and beverages, which accounted balance widened from a deficit of US$ 4,877.7 for 42.77 per cent of domestic export, followed million in April 2021 to a deficit of US$ 5,686.6 by non-food industrial supplies accounting for million in April 2022 (Figure 4). 27.97 per cent. Similarly, the value of imports increased from US$ 15,231.1 million to US$ 18,698.3 million between April 2021 and April 2022, registering a growth of 22.76 per cent. This growth was because of importation of non- food industrial supplies, fuel and lubricants and machinery and other capital equipment which accounted for 39.61 per cent, 23.14 per cent, and Issue 14, No. 4, April-June 2022 8 9 Issue 14, No. 4, April-June 2022 Figure 4: Current account balance Data Source: Central Bank of Kenya Total diaspora remittances registered a modest growth of 7.53 per cent to stand at US$ 339.6 million in May 2022 compared to US$ 315.8 million received in May 2021. The growth from diaspora remittances was mainly from North America (6.65%), and the rest of the world (34.36%), with a decline experienced in Europe (-11.82%). The decline registered in Europe could be due to the geo-political tensions in Eastern Europe. The remittances by source in May 2021 were US$ 203.3 million from America, US$ 59.7 million from Europe, US$ 49.2 million from Asia, US$ 15.2 million from Africa, US$ 11.0 million from Australia and Oceania, and US$ 1.3 million from other countries (Central Bank of Kenya, 2022). Issue 14, No. 4, April-June 2022 8 9 Issue 14, No. 4, April-June 2022 Implications of DR Congo Joining the East African Community By Martin Nandelenga and Kenneth Malot Introduction O n 8th April 2022, the Democratic providing opportunities to leverage on already Republic of Congo (DRC) signed developed trade among the neighbouring the Treaty of Accession, effectively states including Kenya. Even before signing becoming the 7th member of the East the Treaty of Accession, DRC remained a key African Community (EAC), bringing on board a trading partner with EAC member states. For population of 93.7 million people. The signing example, Kenyan export performance to the of the agreement connected seven countries DRC ranked fourth on average between 2016 with a combined population of 270 million and 2021 as shown in Figure 1. people and a GDP of US Dollars 243 billion (IMF, 2022). With DRC joining EAC, the territorial trade bloc now extends from the Indian Ocean to the Atlantic Ocean in the west, presenting an opportunity to potentially open the East, Central and North Africa trade corridor. The expansion of the EAC with the entry of DRC, therefore, presents a larger market for increased trade activities among member states and improved regional integration. DRC borders five members of EAC (Burundi, Uganda, Tanzania, Rwanda and South Sudan), thus Issue 14, No. 4, April-June 2022 10 11 Issue 14, No. 4, April-June 2022 Figure 1: Kenyan exports to the East Africa Community, 2016-2021 Source: Central Bank of Kenya (2022) The DRC has been a member of several 2019 and 2021 (Economic Survey, 2022). trading blocs such as the Southern African Development Community (SADC) and the The entry to EAC membership follows Common Market for Eastern and Southern a rigorous process to ensure countries Africa (COMESA). This multiple membership permitted membership meet the EAC Treaty to different trading blocs is a common requirements. Article 3 (2) stipulates that a phenomenon among the EAC member states. country approach a member state expressing For example, Kenya is a member of EAC and interest to join the community. The member the COMESA while Tanzania is a member of state will then forward the request to the EAC EAC and SADC. This multiple membership Partner States for consideration considering within the EAC region member states has acceptance by the Partner States, geographical complicated the implementation of the full proximity of the requesting country and social EAC customs union protocol, as Tanzania and economic policies being aligned to those was allowed to grant trade preference to her of the EAC, among other things. The period counter parts in the SADC region. Furthermore, of joining is determined by the requesting three trading blocs of EAC, COMESA and SADC country to meet the EAC Treaty requirements. are working towards forming a one Free Trade For example, DRC made the application in Area to allow for harmonization of tariffs across 2019 and the process was completed on 8th borders while promoting integration of markets April 2022, with the signing of the EAC Treaty. and economies. This trade integration is in line South Sudan applied for membership to EAC with the broader AU objective of accelerating in 2011 immediately after its independence and economic integration within the continent. acceded the Treaty on 15th April 2016. The entry to the EAC allows member countries The entry of countries to EAC as Partner States to benefit from the larger market of 270 million have previously been refused or delayed due to people and increased returns on reduced failure to meet the Community’s membership trade tariffs for goods originating within the requirements. Somalia made the application to community. Relatedly, the member states join the EAC in 2013 and since then the process benefit from the four pillars that anchor the has been delayed due to continuing insecurity EAC objectives. The EAC is based on custom in the country. In 2016, the EAC Partner States union, common market, monetary union and rejected Somalia’s request due to long-standing political federation pillars that help to advance insecurity in the country. growth of the member states. The first two pillars of customs union and common market A Resourceful Country with Potential to Enhance EAC have so far been achieved and this has increased Regional Growth trade volumes among member states. For example, for over five years, Uganda has been The DRC is well endowed given its natural the largest export market for Kenyan products resources base and a huge consumer market due to enhanced customs union among EAC of 93.7 million people, numerous water bodies, member states. Among the top exports to EAC vast farmland, rich biodiversity, and the world’s are pharmaceutical products, salt and cement second-largest rain forest. The resource with an average of US$ 1.44 billion between portfolio of the Democratic Republic of Congo Issue 14, No. 4, April-June 2022 10 11 Issue 14, No. 4, April-June 2022 is impressive and unmatched in the region. The Structure of EAC Trade Bloc with DR Congo (2012-2020) Currently, DRC is the world leading producer and exporter of cobalt used in battery manufacture. The EAC enjoys a favourable trade balance It is also the fourth largest producer and with the DRC, which stands at US$ 658.5 exporter of copper used in assembly of electric million in 2021. However, the trade balance is motor vehicles and renewable energy sources. heterogeneous among the EAC member States, It is also a major producer of gold, diamonds, with Tanzania and Kenya having the highest uranium, coltan, oil and other precious metals. trade balance in 2021 of US$ 204.6 million and The lithium deposits, found in the southeast US$ 197.2 million, respectively. Table 1 presents part of the country, are estimated at over 130 the data on merchandise export trade flows million tonnes. China is the major importer between the EAC countries and Democratic of this mineral products produced by DRC, Republic of Congo from 2012 to 2020. Generally, accounting for about 48.4 per cent in 2020. This all the EAC partner States are net exporters to the is followed by United Republic of Tanzania 17.2 Democratic Republic of Congo, with Rwanda per cent, Singapore 8.0 per cent, Switzerland and Uganda being the largest traders followed 7.8 per cent, United Arab Emirates 6.0 per cent by Kenya while Burundi has the lowest export and South Africa 3.4 per cent. values. Notably, EAC exports to Democratic Republic of Congo have grown by about 66 per As noted earlier, DRC is a major exporter of cent from US$ 564,040 in 2012 to US$ 936,309 copper. To meet its demand for copper, however, in 2019, before declining to US$ 575,609 in 2020 Kenya imports a significant proportion of this because of COVID-19 pandemic. Imports have mineral from the United Arab Emirates (37.6%), grown marginally from 49.3 million to 49.9 the Russian Federation (27.3%), and Zambia million over the same period, respectively. In (17.7%). Similarly for Uganda, this mineral is terms of average exports for the review period, majorly imported from United Arab Emirate Uganda and Rwanda are leading with the (56.4%), China (18.3%) and Zambia (12%). value of exports averaging US$ 205 million and US$ 200 million with an export growth of The economic benefits of the resource base 35 per cent and 705 per cent, respectively, for in DRC cannot be over emphasized. The EAC the period 2012 and 2021. Burundi has been countries can largely benefit from the numerous the lowest exporter to Democratic Republic of resources found in the DRC and promote the Congo, despite registering an export growth of industrial and manufacturing capabilities. DRC 90 per cent in the last nine years. This can be entry will see a reduction in tariff for these attributed to under-developed manufacturing mineral commodities and the governments sector coupled with the aftermath of civil need to focus more on processing the mineral unrest in the country in 2015 that could have themselves and promote industrialization. hindered trade and production. The availability of these resources accompanied The share of EAC exports to Democratic by improvement in infrastructure ¬– road, rail Republic of Congo is about 10 per cent and and air – can boost EAC’s and Africa Union (AU) majorly composed of agricultural commodities, Agenda 2063 on promoting industrialization while the major imports by DRC from the within the region through reduction of cost world include machinery, electrical equipment, of production and shifting to high productive vehicles and articles of iron and steel. EAC activities. This would further contribute towards partner States may not satisfactorily supply economic transformation in the region, which these products due to limited technological is imperative in contributing to economy-wide capacity hence the need to invest in these productivity translating to job creation and sectors. poverty reduction. In 2020, EAC partner States accounted for The entry of the DRC is set to benefit the about 9 per cent of the Democratic Republic already integrated EAC trade bloc by expanding of Congo import demand and 6 per cent per the market and access opportunities for cent of their total exports to the world. The commodities produced within the region. major export products from EAC to DRC are In addition, trade facilitation effects will composed of salt, sulphur, earths and stone, be enhanced through tariff elimination as plastering materials, lime and cement (US$ 91.2 provided for by the EAC customs Union protocol, million); iron and steel (US$ 50 million); tobacco including the free movement of persons, goods and manufactured tobacco substitutes (US$ and services. The agricultural value chains are 39.1 million); beverages, spirits and vinegar expected to be enhanced in the region with a (US$ 34.4 million); animal or vegetable fats more liberalized and expanded market. and oils and their cleavage products; prepared Issue 14, No. 4, April-June 2022 12 13 Issue 14, No. 4, April-June 2022 edible fats (US$ 31.6 million); products of the and articles (US$ 1.5 million). milling industry; malt; starches; insulin; and wheat gluten (US$ 31.4 million) while the major Generally, EAC partner States trade export imports are composed of wood and articles of structure with Democratic Republic of Congo wood; wood charcoal (US$ 21.8 million); oil seeds reveals that exports are predominantly and oleaginous fruits; miscellaneous grains, primary products characterized by limited seeds and fruit; industrial or medicinal (US$ value addition and low trade on manufactured 4.9 million); iron and steel (US$ 3.9 million); salt; commodities. From a sectoral standpoint, sulphur; earths and stone; plastering materials, trade in primary commodities such as coffee lime and cement (US$ 3.04 million); cocoa and and tea are likely to increase compared to cocoa preparations (US$ 2.6 million); plastics manufactured/processed products. Table 1: Trade flows between EAC and the Democratic Republic of Congo for the period 2012-2020 (million US$) Country 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Panel (a) Exports Kenya 218.2 214.1 239.4 211.1 197.5 182.6 149.8 132.0 134.4 223.1 Uganda 240.9 268.2 181.7 152.6 176.9 189.6 204.3 249.1 267.2 267.2 Tanzania 187.4 237.6 281.5 198.3 157.4 114.3 144.9 162.6 142.2 207.2 Rwanda 18.2 161.6 189.6 193.6 202.9 280.8 337.4 372.6 - Burundi 0.1 0.1 0.3 0.8 0.3 0.3 0.2 0.2 0.3 - Total exports 664.8 893.5 920.6 755.6 763.0 794.1 855.4 936.3 575.6 697.5 Country 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Panel (b) Imports Kenya 10.5 6.5 2.9 1.3 2.1 4.9 12.7 19.1 25.9 25.9 Uganda 12.2 6.8 5.9 3.6 2.5 4.9 34.5 10.1 10.4 10.5 Tanzania 0.9 0.1 0.8 0.6 0.3 1.0 0.6 1.3 2.1 2.6 Rwanda 4.1 7.9 8.8 11.0 9.1 12.7 14.3 16.7 - Burundi 6.3 3.9 3.7 0.5 3.8 0.9 3.9 2.8 8.5 - Total exports 34.0 25.1 22.2 16.6 17.8 24.4 65.9 49.9 46.9 39.0 Source: ITC Trademap 2022. Issue 14, No. 4, April-June 2022 12 13 Issue 14, No. 4, April-June 2022 A Resourceful Country with Potential to Enhance ports of entry and exit and the DRC will adopt EAC Regional Growth the existing EAC Common External Tariff (CET) EAC partner State stands to benefit following on imports outside the region who are not the Democratic Republic of Congo membership members of the bloc. With the tariff elimination in the region. The DRC tariff classification uses a on goods and removal of trading restrictions four-tariff band revised in 2011 (see Table 2) with among the partner States, the exports and the aim of reducing duties on raw materials and imports are likely to witness a tremendous other inputs to stimulate economic growth. growth. The benefits will be felt across all Majority of the product lines (36.3%) entering sectors of the economies in the region, with DRC attract a duty rate of 10 per cent while 33.6 enhanced value chains and access to a wider per cent attracted 5 per cent rate. With DRC market. This will see the manufacturers in the joining the East African Community trade bloc, EAC benefiting from economies of scale, and it is assumed that all the imports and exports thus increasing efficiency and competitiveness will be exempted from paying the duty at the in the region. Table 2: DRC Most Favoured Nation (MFN) rates Tariff rates (%) Number of tariff lines Share of the tariff lines (%) 0 23 0.39 5 1,963 33.70 10 2,121 36.41 20% 1,718 29.49 Source: ITC Trademap 2022. Challenges on the Gains of DRC Joining EAC DRC presents a challenge to enhancement of trade with other EAC member States. As noted earlier, the DRC brings on board a The continued political fragility especially in large mass of consumers and several products mineral rich areas makes it difficult for trade such as minerals and agricultural produce to take place. This is because the mineral rich important for driving industrial and service areas are also agriculturally endowed with sector development in the EAC. Trade with good weather conditions. However, the existing DRC under EAC is, however, expected to face poor infrastructure hinders access and delivery some implementation challenges. of the produce to other EAC member States. First Furthermore, the existing insecurity in DRC , the under-developed infrastructure has hampered agricultural productivity, thus (roads, rail and air transport) in DRC presents limiting the country’s potential, leading to over- a challenge in trade with other EAC member reliance on EAC member States for imports. States. The country has one of the lowest infrastructure Third, the existing legal framework in DRC developments globally, ranked 127 out of 137 and other EAC member States on investment countries in the Global Competitive Report of requires convergence with a clear framework 2020. This in effect leads to delay in movement to attract investor confidence. While this is a of goods and services to other parts of DRC, requirement for joining the EAC, DRC is still thus increasing transactional costs. This low struggling with pockets of insecurity that infrastructure development has reduced the hampers investment. pace of movement of goods to other EAC partner States, thus hampering the DRC trade revenue potential. Second, the increasing insecurity in parts of Issue 14, No. 4, April-June 2022 14 15 Issue 14, No. 4, April-June 2022 Challenges on the Gains of DRC Joining EAC To realize trade gains with the DRC, there is need to eliminate NTBs that limit trade It is evident that the EAC trade bloc stands between the two parties, such as development to benefit from the entry of the Democratic of transport infrastructure and to promote Republic of Congo into the region. The peace and stability. Literature has shown that elimination of tariffs for trade in goods and with tariff liberalization/elimination, NTBs tend free movement of persons will translate to to emerge, which inhibit the flow of goods and increased export volumes by the EAC partner services across borders. This calls for the EAC States, majorly driven by Uganda and Rwanda. countries and DRC to not only focus on tariff Additionally, admission of the DRC into the elimination as there are additional factors that East African Community is likely to increase the emerge following tariff reduction. Effective and share of cargo movements from the northern efficient NTB resolution mechanisms need to corridor be put in place to ensure timely resolution of the challenges that come with tariff reduction. Northern corridor covers 1,700km long commencing The EAC partners States need to develop from the Port of Mombasa and serves Kenya, Uganda, a strategy towards development of high Rwanda, Burundi and Eastern Democratic Republic technology products such as machinery, of Congo. electrical equipment, and motor vehicles, which are Democratic Republic of Congo’s leading imports from the world and take advantage of existing market potential and to the central corridor. address the supply-side constraints. This can be done through promoting the assembly of motor vehicles in the region and exporting to The central corridor covers 1,300km long, begins the new market. at the Port of Dar es Salaam and serves Tanzania, Zambia, Rwanda, Burundi, Uganda and Eastern Democratic Republic of Congo. Focus will shift to use of the ports of Mombasa and Dar es Salaam as an entry point of cargo from the Indian ocean to Central African countries, thus creating more employment opportunities and increase in cargo through- put. The increased cargo movement will scale up logistic services and create employment in areas such as transport, warehouse and retail sub-sectors. Issue 14, No. 4, April-June 2022 14 15 Issue 14, No. 4, April-June 2022 Economic Sectors with Greatest Potential for Creating Decent Work for the Youth in Kenya (2019-2025) By Eldah Onsomu, Boaz Munga and Violet Nyabaro ccording to the International Labor rate and the employment-to-population ratio), A Organization (ILO) guidelines, decent while most other indicators, such as those work is anchored in four pillars that correspond to adequate earnings and or strategic objectives, namely: productive (e.g., the working poverty rate and productive full employment, rights at low pay rate) are rarely monitored. In addition, work, social protection, and the promotion of most of the indicators are measurable only after social dialogue. These four themes correspond long periods due to the long duration between to ten substantive themes or elements that surveys. Examples of this include child labour enable the identification of diverse decent and wage and income inequalities. work indicators, as summarized in Table 1. It is evident that some of these indicators, such as those that correspond to the strategic objective on employment opportunities, are often tracked (such as the unemployment Issue 14, No. 4, April-June 2022 16 Table 1: Trade flows between EAC and the Democratic Republic of Congo for the period 2012-2020 (million US$) Elements of the strategic Main decent work indicators objectives Employment opportunities • Employment to population ratio • Unemployment rate • Youth not in education and not in employment, 15 to 24 years • Informal employment Adequate earnings and • Working poverty rate productive work • Low pay rate (below 2/3 of median hourly earnings) Decent Working Time • Excessive working time (more than 48 hours per week; ‘usual’ hours) Combining work, family and • Unusual hours of work (work that limits social interaction) personal life • Maternity protection Work that should be abolished • Child labour as defined by International Conference of Labour Statisticians (ICLS) resolution • Other worst forms of child labour Stability and security of work • Precarious employment rate Equal opportunity and • Occupational segregation by sex treatment in • Female share of employment in senior and middle employment management Safe work environment • Occupational injury rate, fatal Social security • Share of population aged 65 and above benefiting from a pension • Public social security expenditure (% of GDP) Social dialogue, workers’ and • Union density rate employers’ representation • Enterprises belonging to employer organization • Collective bargaining coverage rate • Days not worked due to strikes and lockouts Economic and social context • Children not in school (% by age) for • Labour productivity (GDP per employed person, level and decent work growth rate) • Income inequality (percentile ratio P90/P10, income or consumption) • Inflation rate (Consumer Price Index) • Employment by branch of economic activity • Education of adult population (adult literacy rate, adult secondary-school graduation rate) • Labour share in GDP • Real GDP per capita in Purchasing Power Parity (PPP)$ (level and growth rate) • Female share of employment by industry (ISIC tabulation category) • Wage / earnings inequality (percentile ratio P90/P10) Information source: ILO (2013), Decent work indicators: Guidelines for producers and users of statistical and legal framework indicators. Geneva: International Labour Office 17 Issue 14, No. 4, April-June 2022 In Kenya, the most salient deficits are in relies on labour from workers both within and adequate earning and productive work, outside the working age population. As a result, employment opportunities, security of work an estimated 8 per cent of employees in the and child labour. A study by ILO in Kenya’s tea informal sector were between the age of 5 and sector reports presence of child labour, low and 14 years. below national average earnings, and deficits in employment opportunities due to high Decent work deficit is characterized by gender levels of informality. inequality and violence, and weak framework for inclusion of persons living with disability (PWDs). The labour market is also characterized Decent work deficits among rural workers: Key by increased casualization of work and other findings and recommendations for trade unions forms of non-standard employment such https://www.ilo.org/wcmsp5/groups/public/--- as part-time, piece-rate, outsourcing and ed_dialogue/---actrav/documents/publication/ subcontracting, which have intensified due to wcms_850582.pdf COVID-19. Despite these challenges, Kenya has made progress towards employment creation, protection of dignity of its workforce, and rights at work, social dialogue and tripartism through Moreover, employment opportunities as numerous policies and interventions. measured by its indicators are inadequate and many individuals are unemployed or if employed The Sustainable Development Goal No. 8 is are involved in informal employment. Although aimed at promoting decent work and economic the open unemployment rate seems modest growth through productive employment. At at 9.4 per cent in 2015/16, the employment to the regional level, the African Union’s Agenda population ratio of 63.2 per cent for the working 2063 Goals 1, 2, 4, 17 and 18 provides for decent age group in 2019 suggests that a large share of work and economic growth through provision the population is not involved directly in labour of a high standard of living, quality of life and market-related activities either because they well-being for all citizens. Provision of decent are outside the labour force or are unemployed. work in Kenya is embedded in the Kenya Constitution, 2010. Chapter Four of the Bill Empirical evidence shows low adherence of Rights provides for economic and social to minimum wage in the informal sector. rights, including social security; freedom of According to the MSME survey of 2016, the association; labour relations; equality and monthly wage in the informal sector is below freedom from discrimination; and specific the minimum wage. The monthly minimum application of rights for youth, children and wage for employees in micro, small and PWDs. medium enterprises is an equivalent of monthly wage of Ksh 3,525, Ksh 4,975 and Ksh There is a strong association between formal or 2,082 per worker, respectively. This is despite wage employment and decent work. Although the statutory recommended minimum wage Kenya’s economy has had relatively high of Ksh 13,572.88, Ksh 12,522.72 and Ksh 7, 240.96 growth for the last two decades, expansion for cities, former municipalities, and other areas of employment in the formal sector has been (KNBS, 2020). Income security is a key pillar of slow over this period. The share of the informal decent work, which is critically lacking in the sector (which is one of the indicators of decent informal sector. work deficits) remained at nearly 83 per cent of total employment in the last two decades. Persisting and emerging issues to provision of Open unemployment and under-employment decent work include low levels of unionization, rates were estimated at 7.4 and 20.4 per cent, low social security, and child labour. According respectively, in 2015/2016. In 2019, the NEET rate to the KIHBS 2015/2016, over 90 per cent of for youth aged 15-34 years averaged 13 per cent, respondents in the informal sector have no but there was an upward shift to 16 per cent in membership to any trade union, which negates the first quarter of 2020 and further to 18.2 per the fundamental principle of employee rights cent in the second quarter of 2020. Inclusion at the workplace. Low social security coverage of persons living with disability is also low. For is indicative of a deficit in decent work in the instance, in 2012, only 10.3 per cent of PWDs informal sector and vulnerability of employees. were in formal employment and 14.7 per cent In 2019, 27.7 per cent of the total membership in informal employment. of the NHIF were in the informal sector. Casualization of the informal sector also poses On creation of decent jobs, the government a challenge of child labour. Findings from with support from various stakeholders has KIHBS 2015/16 show that the informal sector put in place short, medium, and long-term Issue 14, No. 4, April-June 2022 18 19 Issue 14, No. 4, April-June 2022 measures. The interventions included the create quality and decent jobs is hindered by Youth Employment Scheme Abroad (YESA), an unfavourable policy environment, inhibitive Youth Enterprise Development Fund (YEDF) legal and regulatory framework, limited access and Kenya Youth Empowerment Opportunities to financial services and markets, inadequate Programme (KYEOP). These programmes have access to skills and technology, insecurity expanded the employment opportunities set of tenure, poor access to infrastructure, especially for young people. In addition to this, inadequate business skills and linkages with the Kenya government has been implementing large enterprises, gender inequality and the Decent Work Country Programme (DWCP) unfavourable taxation regime. However, part between 2007 and 2016. The first phase of of what is missing is the ability of the economy DWCP was implemented between 2007 and to generate even higher economic growth 2011 and the second phase took place between rates, which is a necessary condition for 2013 and 2016. The third generation DWCP employment creation. The economy also faces (2021-2024) launched in 2021 is also aimed at binding constraints affecting competitiveness, ensuring provision of decent work in line with investments and employment growth. These Kenya’s MTP III and subsequent medium terms constraints relate to the investment climate, plans. which includes supportive infrastructure, regulatory environment and skills. As an example, the agricultural sector faces inadequate quality of feeder roads, cold chain “ ILO through the DCW programmes offer technical facilities and non-tariff barriers. Other sectors in support to the government to ensure that overall the economy such as tourism are constrained development objectives are anchored on decent by multiple taxation and levies. work pillars.” Sectors with Potential for Creation of More Decent Jobs (2019-2025) The recent introduction of payments of The analyses focus on forecasts of both total statutory contributions to the National Social employment (formal and informal) and wage Security Fund (NSSF) and National Health employment for Kenya’s economy between Insurance Fund (NHIF) through daily or weekly 2023 and 2025. In the forecasts, the underlying contributions using ICT platforms is a good assumptions include: example of what can be done to enhance formalization. Other measures the government i) Firstly, that output and employment has put in place include streamlining business growth trajectory between 2012 to 2019 is registration and licensing through the Micro maintained into the future with 2019 used and Small Enterprises Authority (MSEA), as the base year. establishment of the Huduma Centres as one-stop-shop for business registration at ii) Secondly, the structure of the economy county level, supported with effective online will not change and that no major shocks registration platforms that have reduced will occur. the number of steps to register businesses, increased access to public procurement Under these assumptions, the total opportunities for formal micro and small employment (formal and informal) is expected enterprises, capacity building to support to grow from 18.0 million in 2019 to 20.9 million involvement of micro and small enterprises in in 2025. public works, and enhanced financial inclusion such as through M-Pesa innovations. Consequently, in 2025, the leading sectors with respect to the share of total employment will These measures have not fully tackled the be agriculture, forestry and fishing (46.7%), challenges associated with creation of more wholesale and retail trade, repair of motor decent jobs as the country continues to have vehicles and motorcycles (16.4%), construction a high share of informal employment. Kenya (7.4%), other service activities (5.7%) and continues to experience changes in the forms manufacturing (5.7%) (Figure 1). of employment. Workers on casual contracts of service constituted 23.4 per cent of total wage employment in 2019 up from 20.9 per cent in 2013. Part-time workers made up 28.5 per cent of the 17.9 million working population in the labour force in 2016, and majority (61.9%) were females. Further, the ability of MSMEs to Issue 14, No. 4, April-June 2022 18 19 Issue 14, No. 4, April-June 2022 Figure 1: Share of total employment by sector, 2019 to 2025 (%) Figure 2 represents the 2019 wage employment and fishing) at 8.6 per cent (Figure 2). These levels and projected wage employment for sectors can be supported to enhance further 2025. Wage employment is projected to grow wage jobs. from 2.9 million in 2019 to 3.9 million in 2025. The leading productive sectors of the economy with respect to wage employment in 2025 are projected to be manufacturing with a share of 11.3 per cent, construction (9.7%), wholesale trade (8.9%) and agriculture (including forestry Issue 14, No. 4, April-June 2022 20 21 Issue 14, No. 4, April-June 2022 Figure 2: Share of wage employment by sector 2025 (%) Source: Author’s computations Besides nudging growth in formal employment, and pack houses; and diversify agricultural it will be important to transform the large and support products to include support for small growing number of informal jobs into more scale agriculture, sustainable marketing decent work. There are notable sectors with structures, linking producers to markets and good potential that reported rapid growth institutionalizing agricultural insurance. For in informal employment, including ICT and some sectors, such as the thriving financial agriculture. In other countries’ experiences, services sub-sector (outside of formal incentives such as lower taxes for smaller firms operations), there may be need to incentivise helps in the transition to better quality jobs. formalization of operations and jobs. Several challenges inhibit job creation for the Finally, whereas the government and private youth. These include inadequate infrastructure sector have initiated various programmes across sectors, weak regulatory frameworks, aimed at creating employment, most of the and skills mismatch. Going forward, and jobs will be created in the informal sector. to promote job creation in the agriculture Existence of forward and backward linkages sector, there is need to ameliorate the adverse across the various sectors shows that there is effects of the dynamic non-tariff trade barriers need to adopt a comprehensive multisectoral (NTTBs) by supporting continuous skills approach in job creation strategy for the transfer and extension services support to local country and early investments in areas such producers, including the small-scale farmers; as training, technology, education, and enhance further investments in supportive infrastructure development; supported with infrastructure – the feeder roads and cold chain strong institutions and regulatory frameworks. infrastructure such as “cold” collection centres Issue 14, No. 4, April-June 2022 20 21 Issue 14, No. 4, April-June 2022 Promoting National Unity in Kenya Beyond Elections Paul Lutta, Judith Nguli, Janeth Chebwogen and Jimmy Mercy Introduction N ational unity can be defined as a politics as political parties coalesce around state of oneness that results from tribal powerbrokers. Political campaigns tend to shared values, vision, purpose, and take an ethnic angle characterized by promises aspirations irrespective of the ethnic, aligned to community interests should their cultural, economic, religious, or any tribal kingpins be voted in, and this creates other superficial status, while recognizing tensions among communities. Furthermore, diversity. National unity has been one of the the 2010 Constitution requires presidential fundamental themes for building Kenya candidates to garner 50 percent plus one since independence. The Kenya Vision 2030 vote to win the election and encourages pre- espouses national cohesiveness and unity in election ethnic coalitions. As a result, political diversity as pillars that promote inclusivism, support and mobilization targeting certain pro-poor oriented improvements, improved ethnic groupings to achieve the required vote. resource distribution, and strengthened social institutions, consequently enabling upward Weak institutional structures also remain a social mobility and positive economic growth. hindrance to the achievement of national unity. Indeed, national unity provides a favorable For example, when institutions are unable business climate, which is essential for growth to investigate and prosecute perpetrators in economic activity. With an inclusive and of vices committed by public servants while progressive 2010 Constitution, Kenya has in office, this damages the fabric that holds attained various democratic milestones, the society together threatening national including a decentralized governance structure, unity. Before the 2010 Constitution of Kenya, which has brought power to the people and regional socio-economic disparities and invites the participation of all stakeholders in marginalization were defined by the presence decisions making thus building national unity. or lack of natural resource endowments, political patronage, policy choices, and cultural There are various commonly documented norms. Even though devolution has attempted factors that define the existence of national unity to promote shared prosperity, the persistently including ethnicity and divisive politics, weak high level of inequality across the regions robs institutional quality, socio-economic disparities, the disadvantaged population of a sense of and marginalization. The advent of multi-party national belonging. democracy in 1992 has seen ethnicization of Issue 14, No. 4, April-June 2022 22 Government Initiatives Towards Achievement of National Unity marginalized regions has promoted restorative justice and healing. The Independent Review a. Redistributive Policies Commission (IREC) established to analyze gaps in the constitutional and legal framework The Kenya government had made deliberate that contributed to the 2007/2008 post- attempts to promote the achievement of election violence recommended the for review national unity through various initiatives, and consolidation of all laws relating to the programmes, and distributive policies. An operational management of elections in Kenya example is the Sessional Paper No. 10 of 1965 towards solving perennial election-related on African Socialism and its Application to problems and strengthening national unity, Planning in Kenya, which sought to address peace, and stability. Overall, the commissions inequality and the devolved system of support National healing and reconciliation as governance that aims to promote democracy key to developing national unity. and foster equitable sharing of national resources thus promoting national unity. Such c. National Cohesion and Integration policies curb historical marginalization and The exclusive establishment of the National promote national unity. Cohesion and Integration Commission (NCIC) is a key milestone toward the achievement of Further, the Kenya Vision 2030 aspires for national unity. NCIC is mandated to facilitate long-term development through a collective and promote equal opportunity, good relations, aspiration of all Kenyans towards a better harmony, and peaceful co-existence of persons society by the year 2030. Organized into three of different ethnic and racial communities. pillars, economic, political, and social pillars; Sessional Paper No.9 of 2013 on National the political pillar envisages a democratic Cohesion and Integration outlines guidelines political system that is issue-based, people- fostering understanding and implementation centered, result-oriented, and accountable to of national cohesion and integration the public. Key areas for transformation include framework aimed at equal opportunity, rule of law; electoral and political processes; peaceful, prosperous, and united nation. The democracy and improved public service role of the commission also monitors incidents delivery; transparency and accountability; of hate speech and has been able to bring public administration reforms; and security, to book perpetrators. NCIC is also credited peace building, and conflict management. for spearheading, national cohesion and integration, which have been mainstreamed The Medium-Term Plan II (2013-2017), which within all the government agencies through implements the Vision 2030, recognized strict compliance with national values and national unity as a prerequisite tool to socio- principles of governance. economic development and thus prioritized civic education and a public awareness e. The Constitution of Kenya 2010 programme aimed at inculcating change of The promulgation of the Constitution of Kenya behavior towards more positive values and in 2010 can be considered one of the greatest national reconciliation. MTP II also provided achievements toward the building of national for the enactment and operationalization unity. The Constitution in Article 174 introduced of policies and legal frameworks toward a devolved system of governance to promote National Cohesion and Integration and the democracy and accountability in the exercise establishment of a National Cohesion and of power as well as foster national unity by Integration Research and Memorial Centre. recognizing diversity. Devolution ensures Further, the Medium–Term III (2018-2022) equal distribution of resources and brings identifies the role of national values and ethics services closer to the people thus promoting in the realization of a cohesive, values-driven, national unity. Article 10(2) of the Constitution and prosperous nation. recognizes the importance of National Values and Principles of Governance for strengthening b. Healing and Reconciliation national unity. Additionally, the Constitution Various commissions have been set up to address under Article 1 (2), Article 10 (2)a b c) Article 27, 33, historical injustices and bring perpetrators to 69, 118, and 119 provides for public participation book. National Unity is achieved by ensuring and two-thirds gender. Public participation access to justice for all the population groups. brings a sense of belonging and ownership For instance, the establishment of the Truth, of the governance process by the public Justice, and Reconciliation Commission with respect to all genders and marginalized (TJRC) whose key recommendations included groups thus promoting national unity. The the emphasis on socio-economic and Constitution has provided for frameworks and infrastructure development of historically procedures such as the judiciary and electoral 23 Issue 14, No. 4, April-June 2022 management body, responsible for managing Conclusion and Recommendations elections and dispute resolutions to ensure National unity remains a critical key to the election credibility. achievement of Kenya’s development goal and f. Other Government Affirmative Actions for the existence of the nation. To strengthen national unity, there is a need for a strong The government also put in place affirmative political will to implement the available policies action programmes and policies to promote which foster national unity. This includes equitable access to socio-economic the re-distributive policies which enhance development, and correct cultural and historical development for all the citizens through the gender imbalance, physical segregation, and reduction of inequalities. The increased uptake regional disparities to promote national unity. of recommendations from various commissions Affirmative funds such as Access to Government such as the Ndung’u Land Commission, and Procurement Opportunities (AGPO), Youth the Independent Review Commission among Enterprises Development Fund, and Women others are key towards promoting national development Fund support the growth of unity. Further, there is a need to eliminate all enterprises for wealth and employment forms of gender inequalities including harmful creation for the marginalized, a precursor to cultural practices that continue to derail active national unity. engagement in economic activity. Issue 14, No. 4, April-June 2022 24 25 Issue 14, No. 4, April-June 2022 Legislative Developments and Policy News Legislative Developments A) ACTS OF PARLIAMENT amended by inserting section 10A 1. The Division of Revenue Act, 2022 was immediately after section 10 to include- gazetted on 8th April 2022. The Industrial Training Act (Cap. 237.)It is an Act of Parliament to provide for the equitable 3. The Copyright (Amendment) Act, 2022 division of revenue raised nationally was gazetted on 8th April, 2022. It is an between the national and county Act of Parliament to amend the Copyright governments in 2022/23 financial year, and Act, and for connected purposes. The key for connected purposes. amendments are; 2. The Industrial training (Amendment) Act, 2022 a) Inserting the definitions of artiste, was gazetted on 8th April 2022. It is an premium rate service provider, registry, Act of Parliament to amend the Industrial ring back tune and telecommunication Training Act. The key amendments are; operator in the proper alphabetical sequence under section 2. a) Deleting paragraph (b) under section 3A. b) Inserting section 30C which provides for payment of ring back tune revenue b) Deleting section 5B and substituting immediately after section 30B. with a new section on training levies. c) Inserting section 22B which c) Deleting the marginal note and provides for National Rights registry substituting it with a new marginal immediately after section 22A. note on distribution of training levies. Subsection 1A and 2 were subsequently d) The principal Act is amended in section deleted under section 5C. 49 (2) in paragraph (a) by inserting the following subparagraphs (iva), d) Part II of the First Schedule to the (ivb), (ivc) and (ivd) immediately after Kenya Revenue Authority Act is subparagraph (iv)— Issue 14, No. 4, April-June 2022 24 25 Issue 14, No. 4, April-June 2022 iva)The fees for accessing the National a) Section 28 of the Kenya Deposit Rights Registry; Insurance Act, 2012 is amended in subsection (1) by deleting the words ivb)The format for registrations of the “one hundred thousand shillings” respective copyright works; and substituting therefor the words ivc)The type of copyright works that are “five hundred thousand shillings” and registrable with the National Rights deleting subsection 2. Registry; b) Inserting a new subsection 3 ivd)Anything necessary for the immediately after subsection 2 performance of the functions of the providing for consequences of National Rights Registry;” contravention of the said subsection. 4. The Employment (Amendment) Act, 2022 B) NATIONAL ASSEMBLY BILLS was gazetted on 8th April, 2022. It is an Act of parliament to amend the Employment 1. Parliamentary Pensions (Amendment) Act. Section 9 of the Employment Act is Bill, 2022 was gazetted for introduction into amended by inserting new subsection 5, 6, the National Assembly on 5th April 2022. 7, 8 and 9 immediately after subsection 4 The principal object of the Bill is to amend as below: the Parliamentary Pensions Act, Cap. 196. It proposes to raise the amount of pension (5) In respect of recruitment, an employer due to former Members of Parliament shall not require an employee to who served between 1st July 1984 and 1st submit any clearance or compliance January 2001 to a minimum sum of Ksh certificate unless such employer 100,000. This is in light of the fact that intends to enter into a contract of despite serving the nation, some former service with the employee: Provided Members of Parliament are languishing in that an applicant for a state office poverty and there is need to take care of shall provide compliance or clearance their welfare. certificates at such times in the recruitment or approval process as they 2. The Supreme Court (Amendment) Bill, may be required. 2022 was gazetted for introduction into the National Assembly on 5th April, 2022. It (6) An employer who intends to enter is a Bill for an act of parliament to amend into a written contract of service may, the Supreme Court Act and for connected in compliance with chapter six of the purposes. The key amendments include; Constitution, request an employee to submit mandatory clearance a) Section 3 of the principal Act is certificates from the relevant entities. amended in paragraph (d) by deleting the words “including matters relating (7) Notwithstanding subsection (6), an to the transition from the former to the employer may, where an employee present constitutional dispensation” does not satisfy the requirements appearing immediately after the words under subsection (6), withdraw an offer “legal matters”. of contract of service. (8) A relevant public entity shall— (a) not charge b) Inserting section 3A on inherent a fee for the issuance of a clearance powers of the court immediately after or compliance certificate under this section 3. section or any other written law; (b) issue an applicant with the clearance c) Repealing section 4 and substituting or compliance certificate or reject the therefor with new section 4 which application within seven days of receipt states that Subject to Article 163 (2) of the application. of the Constitution, a vacancy in the Supreme Court shall not affect the 5. The Kenya Deposit Insurance jurisdiction of the Court. (Amendment) Act, 2022 was gazetted on 8th April, 2022. It is an Act of parliament to d) Inserting section 11A providing for amend the Kenya Deposit Insurance Act, case management immediately after 2012 and for connected purposes . The key section 11. amendments are; Issue 14, No. 4, April-June 2022 26 27 Issue 14, No. 4, April-June 2022 e) Repealing section 13 and substituting 4. The Valuers Bill, 2022 was gazetted for therefor with a new section providing introduction into the National Assembly for advisory opinion. on 5th April 2022. It is a Bill for an Act of Parliament to establish the Valuers Board f) Inserting a section 13A that provides for of Kenya; to provide for the registration determination in a state of emergency and licensing of valuers; and for connected immediately after section 13. purposes. g) Inserting sections 15A (appeal as 5. The Kenya School of Law (Amendment) of right), section 15B (appeal upon Bill, 2022 was gazetted for introduction certification) and section 15C (direct into the National Assembly on 5th April, appeals from tribunals). 2022. It is a Bill for an Act of Parliament to amend the Kenya School of Law Act, 2012; h) Repealing section 18, 19 and 20. and for connected purposes. The key amendments are; i) Repealing and substituting with a section on further evidence in appeals. a) Section 16 of the Kenya School of Law Act, 2012, is amended by deleting the j) Inserting section 21A which provides for words “set out in the Second Schedule review of own decision. for that course” and substituting therefor the words “prescribed by k) Inserting section 23A on stay of the Council of Legal Education under proceedings immediately after section section 8(3)(a) of the Legal Education 23. Act, 2012 for that course” l) Repealing section 24 and substituting b) Repealing the Second Schedule. with a section on interlocutory directions. 6. The Finance Bill, 2022 was gazetted for introduction into the National Assembly m) Inserting section 29A providing for on 8th April 2022. It is a Bill for an Act of nomination of court representatives, parliament to amend the laws relating to 29B on Committees of the court, 29C various taxes and duties; and for matters on Alternative Dispute Resolution incidental thereto. The key amendments mechanism, 29D on court sittings and are; recess and 29E on ethics and integrity immediately after section 29. a) Section 3 of the Income Tax Act is amended in subsection (2) by adding 3. The Public Finance Management a new paragraph on gains from (Amendment) Bill, 2022 was gazetted for financial derivatives immediately after introduction into the National Assembly on paragraph (h) 5th April 2022. It is an act of Parliament to amend the Public Finance Management b) Section 4A of the Income Tax Act is Act, and for connected purposes. The key amended in subsection (1) by deleting amendments are; subparagraph (ii)(a) of the proviso and substituting therefor the following a) Deleting section 192 and substituting new subparagraph— (a) where the with a new section that provides for foreign exchange loss is realized by a establishment of the board. company whose gross interest paid or payable to related persons and third b) The principal Act is amended in section parties exceeds thirty per cent of the 193 by deleting subsection (5). company’s earnings before interest, taxes, depreciation and amortization in c) Inserting subsections 195A on Chief any financial year. Executive Officer, 195B on Staff of the Board, 195C on Common seal, 195D on c) Section 5 of the Income Tax Act is Funds of the Board, 195E on financial amended in subsection (5) and (6), by year, 195F on annual estimates and deleting paragraph (a) of the proviso 195G on accounts and audits. and substituting with (a) in the case of an employee share ownership plan, d) Inserting paragraph 13 and 14 after the value of the benefit shall be the section 12 under Schedule 2. difference between the offer price, per Issue 14, No. 4, April-June 2022 26 27 Issue 14, No. 4, April-June 2022 share, at the date the option is granted by the employer, and the market m) Section 5 of the Value Added Tax Act, value, per share on the date when 2013 is amended in subsection (9) by the employee exercises the option; deleting the words “sell or provide and in subsection (6), by deleting services, goods or other property” and paragraph (a) and substituting with substituting therefor the words “sell (a) the benefits chargeable shall be goods or provide services”. deemed to have accrued on the date the employee exercises the option. n) Section 10 of the Value Added Tax Act, 2013 is amended by inserting a d) Section 9 of the Income Tax Act is new subsection 1A immediately after amended by adding subsections 3 and section 1. 4 after subsection 2. o) The Value Added Tax Act, 2013 is e) Section 12E of the Income Tax Act is amended by repealing section 30. amended by adding the following proviso to subsection (1)— Provided p) Section -34 of the Value Added Tax that this section shall not apply to a Act, 2013 is amended in subsection nonresident person with a permanent 1 by adding the following proviso establishment in Kenya. Provided that this section shall not apply to persons supplying imported, f) Section 16 of the Income Tax Act is digital services over the internet or an amended in the proviso to subsection electronic network or through a digital (2)(j) by adding a new subparagraph marketplace. immediately after subparagraph (iii) (B)— (C) microfinance institutions q) The Tax Appeals Tribunal Act, 2013 licensed under the Microfinance Act, is amended by repealing section 32 2006. and replacing it with a new section on appeal to the high court against g) Repealing section 18A and replacing decisions of the tribunal. it with subsection on ascertainment of gains and profits of business in a preferential tax regime. r) Section 10 of the Excise Duty Act, 2015 is amended by adding the following h) Repealing section 18B of the Act proviso to subsection (1) — Provided and substituting it with a section on that the Commissioner may, by application of sections 18C(notifications notice in the Gazette and with the to the commissioner), 18D(filing of approval of the Cabinet Secretary, country-by-country report, master exempt specified products from file and local file), 18E(offences and inflation adjustment after considering penalties) and 18F(definitions). the circumstances prevailing in the economy in that year in respect of such i) Section 35 of the Income Tax Act products. is amended in subsection (1) by adding new paragraph on gains from s) The Second Schedule to the Excise financial derivatives immediately after Duty Act, 2015 is amended in Part A by paragraph (o). adding new paragraphs 15, 16 and 17 after paragraph 14. j) Section 35 of the Income Tax Act is amended in subsection (1) by t) Section 31 of the Tax Procedures Act, adding new paragraph on gains from 2015 is amended by adding subsection financial derivatives immediately after 5 immediately after subsection (4) paragraph (o). — (5) In the case of value added tax, the input tax shall be allowable for k) The First Schedule to the Income Tax a deduction within six months after Act is amended by deleting paragraph the end of the tax period in which the 57, 58 and 61. supply or importation occurred. i) The Second schedule is amended by adding section 1B immediately after u) The Tax Procedures Act, 2015, is section 1A. amended by repealing section 47 and Issue 14, No. 4, April-June 2022 28 29 Issue 14, No. 4, April-June 2022 replacing it with a new section on C) SENATE BILLS offset of refund or overpaid tax. 1. The County Allocation of Revenue Bill, v) The act is amended by adding section 2022 was gazetted for introduction into 48A (refund of tax paid in error) and Senate on 8th April 2022. The principal 49B (refund of tax paid on exempted object of this Bill is to make provision for or zero-rated supply) immediately after the allocation of revenue raised nationally section 4. among the county governments for the financial year 2022/23. w) The First Schedule to the Tax Procedures Act, 2015 is amended by The County Governments Additional adding paragraph 15 on registration Allocations Bill, 2022 was gazetted for of trust immediately after paragraph introduction into Senate on 10th May 2022. The (14). principal object of this Bill is to make provision for the transfer of conditional allocations from 7. The Kenya Revenue Authority national governments share of revenue and (Amendment) Bill, 2022 was gazetted for from development partners to the county introduction into the National Assembly governments for the financial year 2021/22. on 13th April 2022. It is a Bill for an Act of parliament to amend the Kenya Revenue Authority Act, 1995; to make consequential amendments to other statutes; and for connected purposes. The key amendments are: a) The long title of the Kenya Revenue Authority Act, 1995 (hereinafter referred to as the “principal Act”) is amended by deleting the word “Authority” and substituting therefor the word “Service”. b) Deleting the word “Authority” in section 1 and substituting therefor the word “Service”. c) Deleting the definition of “Authority” in section 2 and substituting therefor with new definition in proper alphabetical sequence — “Service” means the Kenya Revenue Service established by section 3; d) By deleting the definition of “Minister” and substituting therefor the following new definition in proper alphabetical sequence — “Cabinet Secretary” means the Cabinet Secretary responsible for matters relating to finance. e) Repealing section 3 and replacing it with a new section on establishment of service. Issue 14, No. 4, April-June 2022 28 29 Issue 14, No. 4, April-June 2022 Policy News A. Bilateral Relations Kenya-Greece Bilateral Relations Kenya-Japan Bilateral Relations Kenya and Greece signed a Memorandum of Foreign Affairs Cabinet Secretary Ambassador Understanding (MoU) on Diplomatic Training Raychelle Omamo met with the state minister Cooperation on May 9, 2022, in Athens, Greece, for Foreign Affairs of Japan, Suzuki Takako witnessed by a delegation of the two countries on 4 May 2022 during the second Japan- led by Kenya’s Foreign Affairs Cabinet Secretary Africa Public-Private Economic Forum in Ambassador Raychelle Omamo and the Nairobi. The two ministers reviewed bilateral Greek Foreign Minister H.E. Nikos Dendias. relations of the two countries founded on The framework under the MoU signifies shared values. Ambassador Omamo not only commitment by both countries to cooperate praised Japan’s generous support towards in the training of diplomatic personnel by the Kenya national development agenda but also exchange of diplomatic experts, researchers, donation of COVID-19 vaccines to contain the and specialists in the areas of mutual interests pandemic. The Cabinet Secretary also held a and the exchange of information and bilateral meeting with the Chairman of the publication. The two foreign ministers agreed Board of Toyota Tsusho Corporation Mr. Juan to strengthen the longstanding relations Karube on 5 May 2022. As he briefed the CS between Kenya and Greece by exploring on the operation of Toyota Tsusho, Mr. Karube new areas of cooperation, including the blue highlighted some of the proposed areas of economy, energy, agriculture, green transition, cooperation in the MoU that will be signed by tourism, culture, information communication the Kenya Investment Authority and Toyota and technology (ICT), health, peace and Tsusho Corporation during the TICAD VIII to security, research and development. The be held in Tunisia in August 2022. Ambassador two sides agreed to fast track the conclusion Omamo welcomed the proposals in the MoU of pending agreements and host a Joint and thanked Toyota Tsusho for partnering with Ministerial Committee (JMC). The two ministers the Government of Kenya in various sectors also reaffirmed the continued cooperation including Manufacturing and Industrialization; under the Kenya-European Union Strategic Circular Economy and Carbon Neutrality; Dialogue with three main pillars, namely Digitalization; Infrastructure Development, peace and security, trade and investment, and Universal Health Care and Food Security. The sustainable development. During the visit, the Japan-Africa Public-Private Economic Forum is CS Ambassador, Omamo, delivered a message held once every three years, with participation of goodwill from President Uhuru Kenyatta of senior public and private sector officials from to H.E. Katerina Sakellaropoullou, President Japan and Africa. During the Nairobi meeting, of Greece, who acknowledged the warm and eighteen (18) MOUs between Japanese cordial relations between the two countries. entities and their African counterparts were presented, with some finalized and signed. The sectors covered in the MOUs include green Issue 14, No. 4, April-June 2022 30 31 Issue 14, No. 4, April-June 2022 energy, health, technology, human resource Prospects of digitization of Mombasa Tea Auction development, motor vehicle assembling, The establishment of the Integrated Tea Trading manufacturing and logistics. System (iTTS) by the East African Tea Trade Kenya-Comoros Bilateral Relations Association (EATTA) is expected to end the manual system at the Mombasa tea auction. Cabinet Secretary Ambassador Raychelle The weekly Mombasa tea auction serves Kenya, Omamo held a bilateral meeting with the Mozambique, Tanzania, Malawi, Burundi, Foreign Affairs minister of Comoros H.E. Rwanda, Ethiopia, Democratic Republic of Dhoihir Dhoukamal on 3 May 2022 on the Congo, Madagascar, and Uganda. The digital sidelines of the second Japan-Africa Public- platform will increase the profits of farmers and Private Economic Forum in Nairobi. The two other stakeholders by cutting operation costs. ministers appreciated the friendly relations Further, the digitization seeks to fill gaps in the that exist between Kenya and Comoros. The current procedures that are done manually. ministers noted that there was a need to The new development is expected to reduce expand the relations especially in the business cost and time as traders will not have to travel sector. Other areas of possible cooperation physically to trade their tea products. Farmers discussed include geothermal exploration will be able to trace the movement of their in which Comoros could learn from Kenya’s tea across factories and shipping companies experience and technical expertise. Kenya was through their mobile phones. The dealers will the first African country to build geothermal also be able to analyze market trends across energy sources. By 2019, the country had 690 the globe. While the manual system has MW of installed geothermal capacity. The disadvantaged farmers since they have had two countries could also explore exchange of little say on the price of their tea, the digital technical expertise in the training of nurses, platform is inclusive hence will benefit farmers teachers, and agricultural extension officers. immensely. The iTTS is expected to reduce B. Regional and Continental News the tea trading cycle by 65 per cent from the A new deal to end Non-Tariff Barriers between Kenya and current 45 to 65 days to less than a month. Uganda C. Global Affairs The signing of a Memorandum of Implications of China’s new Zero-Covid Strategy on trade Understanding (MOU) on 20 April 2022 between The resurgence of COVID-19 cases in key Chinese Kenya and Uganda traders is expected to cities and regions in late March 2022 prompted end continual tiffs on non-tariff regulations. the government to reintroduce lockdowns Effective implementation of the signed MOU and other stringent measures including will enhance agricultural trade between Kenya zero COVID-19 strategy to curb community and Uganda, improve interdependence of transmission. The goal of Zero COVID-19 agro-based industries in the two countries. The Strategy is to reduce the virus transmission to two sides pledged to harmonize policies on near zero levels and ultimately eliminate the agriculture to reduce delays and to cut down on virus within a specified geographical region. The bureaucracies in doing business. The business strict measures have disrupted supply chains associations from the two countries noted that due to delays at Chinese vital ports including the establishment of common standards of Shanghai even though Chinese authorities safety, sanitation and the list of documentations are introducing measures to facilitate major would help reduce unnecessary delays. industrial operations and transport without The two countries have come up with undermining the zero COVID-19 strategy. The recommendations for priority improvement in Kenya Ship Agents Association has raised the management of export quality standards concerns that the new measures in China for agro-products. During the signing of the have contributed to temporary closure of MOU, Uganda’s Consulate General to Mombasa factories, leaving warehouses idle and slowing said that Uganda will benefit as the country has truck deliveries. As shipping lines opt to other a surplus of agricultural produce. The Consul destinations such as Europe, shipment of goods General added that the signing of the MOU will to and from Africa will be adversely affected. strengthen cooperation as stakeholders seek Due to the lockdown measures, imported to gain a better understanding of the vital role containers wait for estimated 12.1 days at the of agriculture and trade within the region. The Shanghai port before they are picked up by Kenya National Chamber of Commerce and trucks and delivered to inland destinations. Industry Mombasa Chairman urged Uganda Since China is one of Africa’s market sources to take advantage of the streamlined transport of key products, the delays are expected to system in the country such as the Standard undermine Africa-China trade due to supply Gauge Railway and the Inland Container Depot chain disruptions. in Naivasha to transport their produce. Issue 14, No. 4, April-June 2022 30 31 Issue 14, No. 4, April-June 2022 KIPPRA Demand-Driven and Collaborative Research Projects A) Demand-Driven Projects: B) Collaborative Projects: The Domestic Savings Shortfall in Sub-Saharan Africa: What Kisumu Local Economic Development Plan Can Be Done About It? KIPPRA is currently supporting the County KIPPRA, in collaboration with UNU-WIDER, Government of Kisumu to develop a is working on a book on savings titled “The Kisumu Local Economic Development Domestic Savings Shortfall in Sub-Saharan Plan. The Local Economic Development Plan Africa: What Can Be Done About It?” This is will bring together all pre-existing visions and motivated by the need to increase domestic plans to attain the SDGs while considering savings rates in Sub-Saharan Africa for Kisumu’s strengths and assets. Among other economic growth to be realized. The book developmental aspects, the Local Economic intends to close the gap in knowledge about Development Plan aims to analyze the major drivers of domestic saving rates in Sub-Saharan trends and opportunities of an integrated Africa; whether alternative approaches, such as local economic development, considering pension funds or fintech, could provide new the significant impact of COVID 19 and solutions to increase domestic savings; and consolidating all opportunities for private lessons learnt from the experiences so far in sector investment for city development. different countries in Sub-Saharan Africa and other regions which have been successful A Cost-Benefit Analysis of a Research Reactor Project in Kenya in raising savings rates. The findings of the research will be in tandem with the Addis KIPPRA is supporting the Nuclear Power Ababa action agenda of the United Nations on and Energy Agency in conducting a Cost- financing for development, which provides a Benefit Analysis of a research reactor project in new global framework for financing sustainable Kenya. The objective of the study is to provide development by aligning all financing flows information that will be useful for determining and policies with economic, social and the economic and financial feasibility of the environmental priorities. Preliminary findings project. The analysis will inform budgetary of the project were shared in a hybrid domestic considerations for the project, considering savings workshop held on 16th -17th March overall lifetime costs and expected revenue 2022, organized by KIPPRA in collaboration based on the planned utilization of the research with UNU-WIDER. A total of 11 papers were reactor. presented with KIPPRA presenting three of them. Issue 14, No. 4, April-June 2022 32 33 Issue 14, No. 4, April-June 2022 KIPPRA-AERC Institutional Partnership Grant Children Sensitive Planning and Budgeting, Public Finance for Children (PF4C): From Evidence to Policy Project KIPPRA has received an Institutional Partnership Grant from Africa Economic KIPPRA, in collaboration with UNICEF, is Research Consortium (AERC) towards providing technical assistance to county building capacity to conduct research and governments to implement recommendations support human capital development in Africa of the county budget briefs, Public Expenditure (HCA) through institutional partnership. The and Financial Accountability (PEFA) and grant aims to build capacity that involves poverty profiles for improved service delivery. systematic mentoring of young researchers by The institute is also supporting transitioning international resource persons who are experts UNICEF county level support to be fully in their fields of research. This project presents reflected on plans and budgets (including UN an opportunity from a research perspective Women and UNDP support). The Institute is to establish priority research and investment planning to develop the seven (7) National areas for the government, aimed at ensuring Budget Briefs (2017/18-2021/22) as well as set up that fundamental rights, including right to a virtual policy centre platform for supporting highest attainable standard of health; quality county governments. The seven national education, training, and skills development; budget briefs will focus on macro public finance and freedom from hunger and access to safe management; education and training; health; clean water are attained. The institutional child protection; nutrition; water, sanitation, and support will cover the following components: hygiene; and social protection. The programme Thematic research on provision and financing is being implemented in partnership with CoG, human capital investment in Kenya; capacity CAF, UNICEF, Un-Women and UNDP. building of researchers, strengthening KIPPRA ICT institutional systems, including Youth and Children Dashboard KIPPRA policy virtual center; strengthening KIPPRA and Executive Office of the President partnerships and collaborations in human Advisory and Strategy Unit (PASU) are capital; capacity building (internal and external); working on the migration of the employment and knowledge management, dissemination, initiative mapping tool, the Youth and holding joint workshops and policy uptake of Children Dashboard, to be hosted at KIPPRA. recommendation emanating from Human KIPPRA will develop, update and host the Capital Country Case studies. Under this portal on youth and children indicators and grant, KIPPRA will also implement studies on support its utilization by the public, Ministries, human capital development. These include: Departments and Agencies (MDAs), counties, i) The contribution of school and non-school researchers, policymakers, private sector, non- environment on pupil performance: A case for state actors (NSAs) and other stakeholders. teacher development; ii) Do social assistance interventions foster education attainment What works for youth employment in Africa: A review of existing policies and empirical analysis project in Kenya? An empirical perspective; among others. KIPPRA, in collaboration with the Partnership for Economic Policy (PEP) and the Mastercard Implications of COVID-19 on Essential Health Services in Foundation, are conducting a comprehensive Kenya review of youth employment policies and KIPPRA, in collaboration with Africa Economic initiatives in Kenya; and of empirical studies on Research Consortium (AERC), is conducting their impact, while identifying and promoting research on understanding the short and long- best practices. The project will also involve the term effects of COVID 19 on Kenya’s health understanding of the functioning of formal system. KIPPRA is developing a research paper and informal employment institutions in Kenya addressing the following objectives: Assess the and to a large extent the Global South. Other implications of the COVID 19 on the delivery participating countries are Ethiopia, Ghana, of healthcare services, including availability Kenya, Nigeria, Rwanda, Senegal, Uganda, and distribution; the level of preparedness Burkina Faso, Niger and South Africa. The with essential equipment, health workers, Kenya research team was drawn from KIPPRA, medicines; and information in the crisis period. National Youth Council, Ministry of Labour and The impact of COVID 19 on the provision of Ministry of ICT Innovation, and Youth Affairs. public health services amidst the pandemic The project will also involve capacity building will be tackled while identifying strategies of and mentorship by senior researchers and adequately and appropriately providing public policymakers on labour market issues. The health services amidst the pandemic. project objectives were also highlighted by the PEP Executive Director, Prof. Jane Mariara during the youth employment workshop held on 18th March 2022 at Utalii Hotel. Issue 14, No. 4, April-June 2022 32 33 Issue 14, No. 4, April-June 2022 Urban economic growth in Africa: A case study for Nairobi city The overarching goal of FSNet-Africa is to KIPPRA, in collaboration with Africa Growth strengthen food systems research and the Initiative at Brookings, is conducting research on translation of evidence into interventions urban economic growth in Africa: a case study using systems analytical research designed of Nairobi city. The study aims at addressing and implemented in partnership with a challenges faced by the urban population diverse set of food systems stakeholders. The in Nairobi, including lack of productive jobs, Food Systems Research Networks for Africa inadequate housing, low levels of accessibility, (FSNet-Africa) project seeks to strengthen food and high costs relative to development. The systems research capabilities and translate study will develop a framework detailing the evidence into implementable policy solutions primary constraints to Nairobi city’s ability to and practical interventions in support of the benefit from agglomeration and generate Sustainable Development Goal (SDG) targets productive jobs-accessibility, business for Africa. This will be achieved through leading environment, and public sector governance. systems analysis research on climate-smart, The official launch of the study took place on nutrition-sensitive and poverty-reducing food 30th September 2021 and a preliminary analysis system solutions designed and implemented is currently being conducted. The report is set in partnership with relevant food systems to be officially launched during the Africities stakeholders. FSNet Africa held a research Conference in Kisumu in May 2022. symposium from 28th March to 1st April 2022. The symposium provided an opportunity Making agri-tourism markets work for sustainable food for strengthening research capabilities, systems in Sub-Saharan Africa collaborating with stakeholders, and building KIPPRA, in collaboration with Agriluxe networks. The 20 fellows in the programme Marketing (ALM) plc South Africa, are presented their research proposals, which undertaking research on “Driving food systems they have been developing since the transformation in Kenya via agritourism commencement of the fellowship in July 2021. markets” that aims to explore the synergy between the agriculture and tourism sectors Green Economy Coalition (GEC)-East Africa hub project on (with inputs from other sectors) and how they the status of the transition to a natural capital based green will contribute to transforming Africa’s food economy in East Africa systems on all the three dimensions/ measures The Kenyan Institute for Public Policy Research of food systems sustainability: economic, and Analysis (KIPPRA), Research on Poverty social, and environmental. The project will Alleviation (REPOA) in Tanzania, and Institute provide insights on linkages of the sector with of Policy Analysis and Research (IPAR) Rwanda sustainable food systems and agritourism are collaborating in the research. The project value chains. The second Roundtable on post is aimed at understanding the various stages consultation discussions was held on 6th May of transition to a green economy in each 2022. Consultations are going on with the country. The research generated will be State department for Tourism in preparation useful in stimulating debate on the national for the mapping of Agri-tourism activities and Natural Capital based Green Economies in the institutions in Kenya. region. The project is being coordinated by the Advocates Coalition for Development and Food Systems Research Network for Africa (FSNET Africa) - Environment (ACODE) based in Uganda. ARUA-UKRI GCRF research excellence project Kenya’s transition to an inclusive green economy: An KIPPRA, which is the Kenya Node hosting economy-wide analysis institution for Food, Agriculture, and The world Resource Institute (WRI) and the Natural Resources Policy Analysis Network New Climate Economy (NCE) are partnering (FANRPAN), is supporting the implementation with KIPPRA to conduct an initial cross- of FSNet-Africa ARUA-UKRI GCRF Research economy analysis scoping exercise to identify Excellence Project, which is a collaborative opportunities for enhanced climate impact initiative between University of Pretoria (UP), through mitigation and adaptation action at the University of Leeds (UK), and the Food, the energy-agriculture nexus, which will help Agriculture, and FANRPAN. It is a research Kenya move towards a strong, transformative, excellence project funded by the Global and inclusive green recovery from COVID-19. Challenges Research Fund (GCRF) through the The project will focus on the agricultural and African Research Universities Alliance (ARUA) energy sectors, being the two sectors that – United Kingdom Research and Innovation contribute the highest total greenhouse gas (UKRI) partnership. emissions in the country but are also highly vulnerable to climate change and contribute Issue 14, No. 4, April-June 2022 34 35 Issue 14, No. 4, April-June 2022 significantly to the country’s total GDP and employment. The cross-economy analysis will focus on mapping out existing modelling and analytical capacities in the agri-energy nexus in Kenya and identify key gaps that will need to be filled to inform policy decisions. The analysis will also provide a brief overview of existing and proposed policies and interventions that can be used to foster a more inclusive green transition and economic recovery for Kenya. The cross- economy analysis will lay the groundwork for future economic modelling and analysis that would aim to identify, quantify, and select sound economic evidence that will form the basis for formulation of green transition policies and advise on appropriate investments decisions at both national and county levels under energy and agricultural programmes. Issue 14, No. 4, April-June 2022 34 35 Issue 14, No. 4, April-June 2022 KIPPRA EVENTS KIPPRA Executive Director Dr Rose Ngugi gives her opening remarks at the 5th KIPPRA Annual Regional Conference KIPPRA Hosts a Successful 5th Annual Regional Conference 15th -17th June 2022 KIPPRA held its 5th KIPPRA Annual Regional Speaking at the conference CAS Hon. Eric Conference (KARC) from 15th to 17th June Wafukho noted that the conference was well 2022 at the Kenya School of Government put together and the recommendations from in Nairobi. The theme of the conference this year the conference will go a long way in influencing was “Foundations for a Sustainable Economic government’s development agenda, PS Transformation in Kenya”. The conference, Planning Mr. Saitoti Torome stated that the which brought together state and non-state conference is timely as it comes at a time the actors to discuss progress made, challenges government is developing its fourth medium faced and the way forward in forging a common term plan that is crucial in the development front to accelerate the gains in economic process of our country, KIPPRA Board Chair transformation, was graced by CS The National noted that the choice of the theme of the Treasury and Planning Hon Amb. Ukur Yatani conference is intentional as the country is represented by CAS The National Treasury and in transitional process at the moment and Planning Hon. Eric Wafukho; PS Planning, Mr KIPPRA Executive Director Dr Rose Ngugi on Saitoti Torome; Amb. Dr Amina Mohammed her part welcomed delegates and guests to the represented by Mr. Henry Obino; KIPPRA Board conference and urged them to fully participate Chair Dr Benson Ateng’ and Executive Director in the discussions at the conference. Dr Rose Ngugi. The conference provided delegates with an opportunity to deliberate on KIPPRA and other partner institutions got a how Kenya can best build robust foundations chance to interact with delegates and display to accelerate economic transformation. their products and services in the exhibition The key areas of discussion at the conference booths set outside the conference hall. were categorized into eight sub-themes, namely: creative economy, green economy, The conference was well attended with diverse trade competitiveness and frontier products, representation and witnessed an average gig economy and digital transformation, of over 400 participants each day, including financial inclusion, values and economic about 40 presenters and 40 panelists covering transformation, human capital and making the eight themes of the conference. The markets work. The conference also included a youth side event attracted 199 students from youth side event which discussed emerging different universities, there was also exhibitions issues to support economic transformation by several organizations at the conference and through youth entrepreneurship, skills KIPPRA choir was in hand to entertain the development, and employment. delegates. Issue 14, No. 4, April-June 2022 36 37 Issue 14, No. 4, April-June 2022 PS, State Department for Planning, Mr Saitoti Torome, addresses delegates at the conference Issue 14, No. 4, April-June 2022 36 37 Issue 14, No. 4, April-June 2022 CAS Hon. Eric Wafukho gives remarks on behalf of CS, The National Treasury and Planning Hon. Amb. Ukur Yatani at the conference Issue 14, No. 4, April-June 2022 38 39 Issue 14, No. 4, April-June 2022 A panel discussion on gig economy and digital innovation at the 5th KIPPRA Annual Regional Conference Issue 14, No. 4, April-June 2022 38 39 Issue 14, No. 4, April-June 2022 Delegates sample items at the National Museum of Kenya’s exhibition booth at the conference KIPPRA Marks its Silver Jubilee KIPPRA was established in 1997 through a Legal Notice No.56 and it officially opened its doors in June 1999. In January 2007, the President signed the KIPPRA Bill into law. The KIPPRA Act No.15 of 2006 became effective in February 2007. The Act itemizes twelve function that the Institute is expected to perform and they can be summaried into three broad functions: 1. Capacity building. 2. Public policy research and analysis 3. Networking and engagement. KIPPRA celebrated its 25th anniversary during a colourful dinner held at the Kenya School The silver jubilee celebration event included of Government on Thursday 16th June 2022. speeches from the chief guest, the National Themed “25 years of Thinking Policy Together”, Treasury and Planning Cabinet Secretary Hon. the event provided an opportunity to reflect on Ukur Yattani, who was represented by the Chief the journey towards KIPPRA’s establishment Administrative Secretary Mr Eric Wafukho. and the progress made so far. Other speakers included representatives from the EU and UNICEF, Kenya National Bureau In early 1990s, the Government embarked on of Statistics Director General Mr MacDonald public sector reform and a key agenda was to G. Obudho; Economic Planning Secretary Ms strengthen the public policy making process. Katherine Muoki who represented the Planning The need to build human and institutional PS Mr Saitoti Torome; the KIPPRA Board Chair capacity in government to support the policy Dr Benson Ateng’ and the Executive Director formulation process was identified. The Dr Rose Ngugi. Presidential Commission on Employment in 1991 observed that in the new industrialied Guests also enjoyed an elaborate dinner, cake, economies, mechanisms such as national drinks and entertainment from the KIPPRA research institutes, think tanks and advisory choir and a jazz band. councils were established to promote public policy research and analysis and to generate evidence to help the Government anticipate emerging policy problems. Issue 14, No. 4, April-June 2022 40 41 Issue 14, No. 4, April-June 2022 NIPFN Launches Portal to Centralize Food and Nutrition Information KIPPRA Executive Director Dr Rose Ngugi addresses participants at the launch KIPPRA Board Chairperson Dr Benson Ateng’ gives The web portal has summarized statistics on his remarks at the launch food and nutrition, visualized data information The National Information Platform for Food and central repository of data in a ready to use Security and Nutrition (NIPFN) web portal was format, to guide on Government policies and launched by the CAS National Treasury and strategies. Planning Mr Eric Wafukho on 16th June 2022 during the KIPPRA@25 silver jubilee celebratory dinner. In his remarks, he acknowledged with thanks the financial support from the European Union together with Foreign, Commonwealth & Development Office and the Bill and Melinda Gates Foundation to the NIPFN project. “The country still welcomes such support to ensure that food and nutrition security issues are adequately addressed”. Participants follow the proceedings of the launch KIPPRA holds Dissemination Workshop on “COVID-19; Livelihoods in Africa, Climate Change and Economic Development in Africa (CCEDA)” and Towards UHC in Kenya Studies KNBS Director General Mr Macdonald Obudho addresses participants at the launch Through the NIPFN portal, nutrition information will continuously be consolidated, summarized, and visualized at a central place. Thus, one can determine whether the nutrition information in Kenya is improving or not. The platform will enhance the dissemination and use of information, to better inform strategic decisions and thereby advance achievement of optimal nutrition. Furthermore, through the Participants follow the proceedings of the NIPFN portal, KIPPRA and KNBS are identifying workshop areas to advise Government priorities to KIPPRA, in collaboration with Africa Economic accelerate progress of preventing malnutrition Research Consortium (AERC), held a workshop and mitigate food security. to disseminate findings from the studies on “ COVID-19; Livelihoods in Africa”, Climate Change and Economic Development in Africa (CCEDA)” and Towards UHC in Kenya. Issue 14, No. 4, April-June 2022 40 41 Issue 14, No. 4, April-June 2022 The workshop, which took place at Utalii Hotel KIPPRA Showcases its Products and Services at Africa Public in Nairobi on 24th June 2022, was graced by Service Week Celebrations, 21st to 25th June 2022 KIPPRA Executive Director Dr Rose Ngugi, AERC Executive Director Prof Njuguna Ndung’u and representatives from state and non-state organizations. Executive Director Dr Rose Ngugi (left) moderates a session on “fostering innovation to deliver inclusive and equitable services” during the event KIPPRA joined other government institutions AERC Executive Director Prof. Njuguna Ndung’u in marking the Africa Public Service Week and addresses participants at the workshop celebrating 10 years of Kenya’s transformation of public service delivery that has created an efficient and effective public sector. The celebrations took place at the Kenyatta International Convention Centre on 21st to 25th June 2022. KIPPRA staff got a chance to showcase the Institute’s products and services and interact with many guests at the Institute’s stand. KIPPRA Executive Director Dr Rose Ngugi gives her remarks at the workshop Addressing the workshop participants, Dr Ngugi noted that one of the objectives of the research project is to evaluate the impact of macroeconomic policies to mitigate negative consequences and promote a gender- equitable economic recovery, Prof Ndung’u, Head of Public Service Mr Joseph Kinyua, on his part, noted that the project assesses CS, Ministry of Public Service, Gender, Senior the consequences of a social and economic Citizens Affairs and Special Programmes Prof. lockdown on targeted economies of Ethiopia, Margaret Kobia, Youth and Gender Affairs Chief Kenya, Nigeria, South Africa and Zambia. Administrative Secretary (CAS), Hon. Rachel The workshop gave participants an opportunity Shebesh and Mrs Mary Kimonye Principal to discuss key areas of policy and research interest on the country’s labour market, employment, and job creation. The participants also gave their views on the findings from the studies. Issue 14, No. 4, April-June 2022 42 43 Issue 14, No. 4, April-June 2022 Among the guests who visited the KIPPRA The summit, which is organized every stand include Head of Public Service Mr three years by the United Cities and Local Joseph Kinyua, CS, Ministry of Public Service, Governments of Africa (UCLGA), saw more Gender, Senior Citizens Affairs and Special than 8,000 delegates from over 40 countries Programmes Prof Margaret Kobia, Youth and attend. They comprised international and Gender Affairs Chief Administrative Secretary regional leaders, African ministers, leaders and (CAS) Hon. Rachel Shebesh, Mrs Mary Kimonye officials of local and regional governments, civil Principal Secretary for the State Department society organizations, development partners for Public Service and Mr Kennedy Kihara, the and other stakeholders. Among key guess who Principal Administrative Secretary, Office of the addressed the forum include Kenya’s President President. The guests were impressed by the Hon. Uhuru Kenyatta and the Chairperson of Institute’s work, especially the innovation of the the African Union is H.E. President Felix-Antoine Public Policy Repository. Tshisekedi. US Special Presidential Envoy on Climate Change, Mr John Kerry, addressed the Executive Director Dr Rose Ngugi moderated summit virtually. a session on “fostering innovation to deliver inclusive and equitable services” during the event. The key areas of focus during the session included innovation in enhancing public service delivery, the place of innovation in delivery of inclusive and equitable services, innovation in public service management for enhancing employee productivity and the role of research and innovation in enhancing public service delivery. The participants in the sessions were: the Director General of the National Commission for Science, Technology and Innovation (NACOSTI), Prof Walter Oyoo, CEO of the Kenya Innovation Agency Dr ToTny Omwansa, the Secretary of Youth Affairs Visitors at KIPPRA stand at Africities Summit Mr Raymond Ochieng and the National KIPPRA participated in several sessions, Youth Council CEO Mr Roy Sasaka who was including making a presentation in one of the represented by Ms Viridiana Wasike. breakaway sessions on preliminary findings of a study on Urban Economic Growth: A Case for KIPPRA participates in the 9th Africities Summit, 17th-21st May 2022 Nairobi City County, which is being undertaken in collaboration with AGI-Brookings Institution. KIPPRA participated in and played a key role A number of KIPPRA policy analysist also at the 9th Africities Summit held in Kisumu participated in panel discussions during the County on 17th to 21st of May 2022. The theme of session. the summit was “the role of intermediary cities of Africa in the Implementation of Agenda The KIPPRA Executive Director (ED), Dr Rose 2030 of the United Nations and the African Ngugi, was part of panel discussions in relation Union Agenda 2063. to the summit and the urban cities agenda, including one organized by Organization for Economic Cooperation and Development (OECD) on the launch of a book titled “Africa’s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities,” which was authored by OECD and African Development Bank (AfDB). Dr Ngugi was also a panelist in a session on “economic power of Africa’s cities - Africities The most important democratic gathering in Africa.” The session focussed on policy priorities to enable cities to play their role of economic drivers. ”KIPPRA Executive Director Dr Rose Ngugi (second right) poses for a photo with Dr Aloysius Ordu of Africa Growth Initiative (left) and Former Auditor- General Dr Edward Ouko at the summit Issue 14, No. 4, April-June 2022 42 43 Issue 14, No. 4, April-June 2022 Another forum that the ED participated in was on “integrated frameworks to achieve all-inclusive intermediary cities; policy and legislation.” The session discussed how the implementation of well-defined core functions and policy priorities as well as utilization of resources to increase productively play a pivotal role in the counties’ economic development. The Institute also had an exhibition booth where staff distributed books and promotional materials and created awareness of KIPPRA’s products and services. KIPPRA also took advantage of the robust social media KIPPRA Board Chair Dr Benson Ateng’ gives his promotions and posts to highlight the closing remarks at the symposium. Institute’s participation at the summit and create awareness of its products and services. Speaking at the symposium Dr Ngugi The 9th Africities Summit was unique as it was underscored the important role the Think held by an intermediary city – Kisumu City. Tanks Symposium plays in policy formulation Previous summits have been held in capital as it provides an opportunity to convene cities. This was the second time Kenya was stakeholders in the policy arena to discuss hosting the summit. The next Africities Summit policy issues and contribute to the solutions to will be held in Egypt. be adopted by the government. Discussions at the symposium centered on KIPPRA Convenes the 3rd Kenya Think Tanks Symposium, restoring Africa’s food security in the wake of 28th April 2022 climate change, climate change financing for Africa’s future, impact of climate change on Africa’s public health, balancing the burden KIPPRA hosted the 3rd Kenya Think Tanks and benefits of climate action and mitigating Symposium themed “Empowering Africa for the impact of climate change on peace, security mate Change Action”. The symposium, and development. which was held on 28th April 2022 in Nairobi, discussed the impact of climate change on food security in Africa, deliberated on the viable options for climate change financing in Africa and stimulated discourse on Africa-centered solutions to climate change. KIPPRA Executive Director Dr Rose Ngugi addresses participants at the symposium A panel discussion at the symposium In his closing remarks, the Dr Ateng’ thanked The annual symposium establishes a collective all participants who attended the symposium multisectoral platform for Kenyan think tanks and noted that the practical solutions and policymakers to engage on policy issues discussed at the symposium once adopted to develop policy-oriented solutions. The will strengthen Africa’s response to climate event brought together Kenyan Think Tanks, change. The symposium came to a close with representatives from ministries, parastatals, panel discussions. county governments and non-governmental organizations. The KIPPRA team was led by Board Chair Dr Benson Ateng’, KIPPRA Executive Director Dr Rose Ngugi, KIPPRA Board members and representative of PS State Department for Planning Mr Zachary Mwangi who is also KIPPRA Board member. Issue 14, No. 4, April-June 2022 44 45 Issue 14, No. 4, April-June 2022 KIPPRA Executive Director takes the reins at Southern Voices, KIPPRA Executive Director Meets CBK Governor Over 10th April 2022 Conference Partnership, 19th April 2022 KIPPRA Executive Director Dr Rose Ngugi has Dr Ngugi and Dr Njoroge discussed the taken the reins as chair of Southern Voice. possible areas of collaboration with regards to Southern Voice is a vibrant network of 59 think 5th KIPPRA Annual Regional Conference which tanks from Africa, Latin America & Caribbean, will be held from 15th-17th June 2022. and Asia. They are all dedicated to leveraging quality local data and research and serves as an open platform for think tanks to contribute to the global dialogue on the Sustainable Development Goals (SDGs). Its ultimate aim is to address the existing ‘knowledge asymmetry’ and ‘participation deficit’ in the dialogue on development. It does this by producing, promoting, and disseminating evidence-based policy analysis by researchers from Global South countries. KIPPRA Executive Director Dr Rose Ngugi Welcoming the appointment Southern Voice Director Ms Andrea Ordóñez said that the Southern Voice fraternity is delighted to welcome Dr Ngugi as its chair and will greatly benefit from her guidance in preparing the second edition of our State of the SDGs report and engaging in a strategic global policy process on sustainable development. KIPPRA Inducts New Board Chair and Members, 25th April 2022 KIPPRA Executive Director Dr Rose Ngugi poses for a photo with CBK Governor, Dr Patrick Njoroge, after the courtesy call Dr Ngugi provided an overview of the conference, including the theme and the overall objectives. She noted that the Institute organizes the annual conferences in fulfillment of its mandate to provide a platform for policy dialogue among stakeholders in the public KIPPRA Board Chair Dr Benson Ateng’ (centre) policy space to explore and discuss potential and management staff keenly follow the areas and opportunities to exploit in forging a proceedings of the induction workshop common front to accelerate achievement of a sustainable and inclusive development. KIPPRA Management Staff led by Executive Director Dr Rose Ngugi conducted induction Dr Njoroge, on his part, hailed KIPPRA for of Board Chair Dr Benson Ateng’ and Board initiating the conference, saying the forum members Mr Samuel Wambugu and Ms provides an important platform to discuss Caroline Saroni. The Board Chair and members pertinent policy issues and find solutions to were taken through the Institute’s mandate, promote inclusive growth. strategic direction, workplan activities, performance contract obligations, research and capacity building programmes, partnership engagements, key products and services as well as challenges. Issue 14, No. 4, April-June 2022 44 45 Issue 14, No. 4, April-June 2022 KIPPRA to Host Symposium for Youth in Climate Action KIPPRA, in conjunction with youth-led organizations working on climate change, is organizing a youth symposium themed “Building Momentum for COP27 with Youth in Climate Change”. The one-day symposium seeks to identify the key issues of interest pertaining to climate change as well as develop policy briefs on the issues arising. A communique with a summary of key issues raised will be developed and presented to the Brookings Institution as they pull together KIPPRA Executive Director Dr Rose Ngugi (third youth voices for COP27 in Egypt. right) and CBK Governor Dr Patrick Njoroge (third left) pose for a group photo with KIPPRA and CBK staff KIPPRA Works with Partners to Develop the Third Generation of CIDPs KIPPRA, the Council of Governors and the The Governor said there was need to take State Department for planning, The National a close and honest look at issues of youth Treasury and Planning are working with unemployment and how to harness the youth counties to review the current generation of demographic dividend to propel growth. He County Integrated Development Plans (CIDPs) also urged KIPPRA to consider discussions on and to develop the next generation of CIDPs. income inequalities and how to bridge them, The CIDPs are plans prepared by all counties especially for the vulnerable in society. to guide development over a five-year period. They are meant to guide counties in medium- The Governor pledged to support KIPPRA term planning and investments. The upcoming in the conference, including attending and CIDPs will cover the period between 2023 and providing technical staff to make presentations 2027. and participate in panel discussions on various issues, including fintech and financial inclusion. Dr Njoroge also congratulated KIPPRA on the KIPPRA to Hold CSR Event and Issue PWD Cards to Learners celebration of its silver jubilee with Disabilities KIPPRA will hold a Corporate Social Upcoming Events Responsibility event at Kipsaina Integrated Launch of Kenya Economic Report 2022 Primary School in Elgeyo Marakwet County. The CSR is part of the Institute’s sensitization KIPPRA will in September launch the Kenya of students on national values and government Economic Report (KER) 2022. The KER is a programmes; and empowerment of persons statutory flagship report prepared pursuant to with disabilities (PWDs). Section 23(3) of the KIPPRA Act No. 15 of 2006. The report provides analysis on performance of The event is a follow up of a previous visit to the economy during the preceding financial the school in 2020 where KIPPRA partnered year and economic prospects for the next with the National Council for Persons with three financial years. The KER 2022 themed Disabilities (NCPWD) to identify and assess “Building Resilience and Sustainable Economic learners with disabilities. The Institute then Development in Kenya” provides analysis worked with NCPWD to register the identified of various shocks to which the economy learners and provide PWD cards. The CSR event has exposure at both macroeconomic and will, therefore, provide a chance to issue the sectoral levels. On building resilience for cards and donate various items, including food sustainable development, the KER 2022 makes stuff, electronics and clothes. recommendations to: nurture the potential of the digital economy, creative economy and science, technology and innovation sectors; protect the trade interests of the country; mitigate geopolitical risks; support the manufacturing sector to maximize on its potential; promote and cushion the livestock industry in supporting the economies in the arid and semi-arid lands (ASALs); and entrench values and good governance within the society. Issue 14, No. 4, April-June 2022 46 47 Issue 14, No. 4, April-June 2022 Board to Train on Audit and Risk Oversight The roundtables planned for the next quarter include Kenya-USFTA; stakeholder roundtable The KIPPRA Board will in July 2022 undergo a on promoting basic education equity and three-day training on audit and risk oversight. inclusion in context of Competency-Based The State Corporations Advisory Committee Curriculum; stakeholder roundtable on (SCAC) training, which is being facilitated by exploiting the potential of Kenya’s creative the Kenya School of Government, will focus economy; stakeholder Roundtable on Building resource stewardship and role of board; audit inclusive, safe, resilient and sustainable cities committee and audit framework; internal in Kenya; roundtable on the concept note on controls and environment; overseeing risk adopting green economy to counter effects management; value for money audits; and of climate change; attitudes, knowledge and governance: ethics and emerging trends. practices of food hygiene and safety among Upcoming Corporate Social Responsibility Activities hotel and restaurant workers in Nairobi; stakeholder roundtable on trade agreements Among the Corporate Social Responsibility and trade competitiveness; shocks and (CSR) activities KIPPRA is considering for this stressors for cities; and discussion on criminal financial year include a tree planting exercise, gangs/ organized crime and security. participation in the Standard Chartered Marathon; participation in the East African The upcoming workshops are: IFPRI (inflation, Wildlife Society Forest challenge to support commodities, crisis; an overview of food systems environmental conservation; and donation of in Kenya; what works for youth employment assistive devices and assorted items to learners (PEP-MCF); AGI validation workshop; and with disabilities. assessment of men and women participation in trade. Upcoming policy Seminars, Roundtables and Workshops KIPPRA will also hold two consultative forums KIPPRA will hold policy seminars and in September for the Kenya Economic Report roundtables where stakeholders are invited 2023. to discuss and give input towards various topical and ongoing policy research issues. The policy seminars scheduled for the next quarter include policy initiatives for safe, resilient and sustainable cities in Kenya; supplementary budget highlights; an analysis if the winning party’s manifesto; circular economy of major processed agricultural produce in Kenya; socio-economic implications of the Russia- Ukraine crisis in Kenya; structure and trends in agriculture public spending in Kenya; and competition indicators. Issue 14, No. 4, April-June 2022 46 47 Issue 14, No. 4, April-June 2022 ABOUT KIPPRA The Kenya Institute for Public Policy Research and Analysis (KIPPRA) is an autonomous institute whose primary mission is to conduct public policy research leading to policy advice. KIPPRA’s mission is to produce consistently high-quality analysis of key issues of public policy and to contribute to the achievement of national long-term development objectives by positively influencing the decision making process. These goals are met through effective dissemination of recommendations resulting from analysis and by training policy analysts in the public and private sectors. KIPPRA therefore produces a body of well-researched and documented information on public policy, and in the process assists in formulating long-term strategic perspectives. KIPPRA serves as a centralized source from which the Government and the private sector may obtain information and advice on public policy issues. 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