Nyangena et.al. (2017) Ban on Plastic Bags: Plastics ban finally takes effect in Kenya.pdf

Nyangena et.al. (2017) Ban on Plastic Bags: Plastics ban finally takes effect in Kenya.pdf


 Recent
Economic

Performance

Page 4

 Ban on plastic
bags takes effect

in Kenya

Page 8

 Strategies for
promoting National
values & principles
of governance

Page 9

 Parliamentary
contention on the
two-thirds gender
rule

Page 11

Policy Monitor
Supporting Sustainable Development through Research and Capacity Building

ISSUE 9 NO. 1JULY-SEPTEMBER 2017

KENYA INSTITUTE FOR PUBLIC POLICY
RESEARCH AND ANALYSIS
(KIPPRA)

Special Report

The Status of National Values
and Principles of Governance,
2015

KIPPRA Special Paper No. 16
2016

Ban on Plastic Bags
Finally Takes Effect in Kenya


2

Contents
Editorial Team:
• Bernadette Wanjala
• Paul Odhiambo
• Boaz Munga
• Ann Gitonga
• James Gachanja
• John Nyangena

Contributors:
• Benson Kiriga
• Felix Murithi
• John Nyangena
• Augustus Muluvi
• Ann Gitonga
• Eldah Onsomu
• Boaz Munga
• Nancy Nafula
• Chantal Chweya

Layout:

Published by:
Kenya Institute for Public Policy
Research and Analysis (KIPPRA)
Bishops Garden Towers,
Bishops Road
P.O. Box 56445-00200,
Nairobi, Kenya
Tel: +254 20 4936000

+254 20 4936000 /
2719933/4

Fax: +254 202719951
Cell: +254 736 712724

+254 724 256078
Email: monitor@kippra.or.ke
Website: www.kippra.org
Twitter: @kipprakenya

VISION
An international centre of
excellence in public policy

research and analysis

MISSION
To provide quality public

policyadvice to the
Government of Kenya

by conducting objective
research and analysis and

through capacity building in
order to contribute to the
achievement of national

development goals

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

4

8

6

9

Recent Economic
Performance and Growth
Prospects

Ban on Plastic Bags Finally
Takes Effect in Kenya

Establishment of
KIPPRA

Strategies for Promoting
National Values and Principles
of Governance in Kenya.

Nicodemus Murimi

KENYA INSTITUTE FOR PUBLIC POLICY
RESEARCH AND ANALYSIS
(KIPPRA)

Special Report

The Status of National Values
and Principles of Governance,
2015

KIPPRA Special Paper No. 16
2016


3

Welcome to the July-September 2017 Issueof the KIPPRA Policy Monitor.
The recent data released by the Kenya

National Bureau of Statistics (KNBS) indicates slower
economic activity in the first half of 2017 compared
to a similar period in 2016. This is mainly attributed
to adverse weather conditions which had significant
impacton agriculture,the mainstayof Kenya’s
economy. The long rains, albeit insufficient, together
with quick government intervention has stabilized
food prices and thus easing inflationary pressure.
However, the heightened political uncertainty from
the prolonged electioneering period following the
annulment of the 8 August 2017 presidential election
may compound the effects of drought on economic
activity in the second half of 2017.

As KIPPRA celebrates its 20th anniversary this year,
this issue shares some insights on how the idea
of establishinga policyresearchthink tank was
conceived leading to the establishment of KIPPRA
through Legal Noticeof 9th May, 1997. It is clear that
the need to build capacity for evidence-based policy
making process was a priority as the government
implemented institutional and policy reforms under
the structuraladjustmentprogramme.Several
personalities played a considerable role during the
formative years of the Institute.

A reviewof progressand challengesKenya is
facing in promoting national values and principles

of governanceis presented.The establishment
of NationalValuesand Principlesof Governance
(INUKA) throughSessionalPaperNo. 8 of 2013,
broadeningof representationand leadership,
implementation of devolution, and introduction of
Mwongozo Code of Conduct are but some of the
achievements made in promoting national values
and principles of governance in Kenya. However,
lack of awareness, low levels of compliance, weak
institutions,corruption,high levelsof inequality,
low level of equity, relative under-representation
of women in political leadership and weak citizen
participationin decisionmakingis undermining
governmentefforts in advancingnationalvalues
and principles of governance. The article identifies
strategiesfor promoting national values and
principles of governance.

In addition,the this Issueof the PolicyMonitor
highlightschallengesin meetingthe two-thirds
gender rule in Kenya’s Parliament. The country is yet
to realize the two-thirds gender rule in its legislative
arm despite the Constitutional provisions. Though
there was an increase in the number of elected
women in the 8 August 2017 general election, there
was a shortfall in meeting the two-thirds gender
rule in both the National Assembly and the Senate.
The 12th Parliament has the opportunity to explore
pragmatic and innovative alternatives to realize the
gender rule.

This editionalso highlightsthe rationalebehind
the ban on plastic bags that came into effect on
28 August 2017, lessons from other countries’ and
suggestions for a successful enforcement.

For this and many more, welcome and read on!

Executive Director, KIPPRA

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

in Kenya’s Parliament.

ISSUE 9 NO. 1JULY-SEPTEMBER 2017

Editorial


4

Recent Kenya Economic Performance
and Growth Prospects

By Benson KirigaRecent economic performance

The first half of 2017 has recorded an average economic growth rate of 4.9% compared
to 5.8% in corresponding period
in 2016. This is despite the second
quarter recording a higher GDP
growth rate of 5.0% compared to
4.7% in the previous quarter. All the
economic sectors posted positive
growth rates in the quarter, though
at slightly lower rates compared to
the first quarter save for agriculture
sector which grew by 1.4% compared
to a negative 1.1% in te first quarter.
However, the key sectors that
have continued to contribute
significantly to the realized
growth were accommodation and
restaurants (13.4%), information and
communication (9.2%), real estate
(9.7%), transport and storage (8.2%),
and construction (7.5%).

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

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

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

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

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


5

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

Economic growth prospects for Kenya

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

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

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

Source: KTMM

ISSUE 9 NO.1JULY-SEPTEMBER 2017


6

The Establishment of
Kenya Institute for
Public Policy Research
and Analysis

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

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

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

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

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

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

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

By Felix Murithi


7

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

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

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

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

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

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

The process of recruiting the
Executive Director began in earnest

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

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

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

ISSUE 9 NO.1JULY-SEPTEMBER 2017


8

When the Government of Kenya issued a LegalNotice in 28th February 2017 banning the useof plastic bags, many Kenyans received it with
much cynicism because it was the third time in a decade
that the government was attempting to eliminate what
is perceived as the country’s worst litter problem with
many adverse effects. The Legal Notice took effect on 28th

August2017 and offenders face a jail term of four years, or
a fine of Ksh 4 million.

Previous attempts to ban plastic bags were selective,
targetingto regulatelight weight carrierbags with
thickness of less than 30 microns, which made monitoring
of compliance near impossible. The current ban covers all
plastic carrier bags commonly referred to as single-use
bags which are used as secondary packages. However,
materialsused for industrialprimarypackagingas
well as disposalbagsfor handlingof biomedicaland
hazardous waste and garbage bin liners are exempted.
This exemption is given on condition that the materials
are used at the point of production and are not sold at
the counter or given for free. They should also be labelled,
including the identity of the end-user to improve their
traceability. Those exempted are required to obtain a
clearance from the National Environment Management
Authority (NEMA) to enable them continue with their
operations. To mop up unused stocks, collection points

were designatedat leadingsupermarkets,although
no incentives have been provided to encourage their
delivery.

Kenya’sban hinges on the 2010Constitutionthat
guaranteesevery citizen the right to a clean and
healthyenvironment.It also buttressesthe country’s
commitment to a green economy as envisaged in the
Green Economy Strategy and Implementation Plan 2016-
2030. An important driver of green growthis sustainable
production and consumption behaviours which minimizes
the impactson the environmentas envisagedin the
Sustainable Development Goal No. 12.

Disposal of plastic bags has been the biggest problem
in Kenya.According to UNEP, close to 100 million plastic
bags are given out every year in Kenya by supermarkets,
most of which end up in garbage bins. It is a well-known

fact that plasticbagsare non-biodegradableand can
last more than 100 years in the soil, hence reducing its
fertility. They are easily blown away by wind and get fixed
on trees and plant branches. Other plastics are deposited
in ditches along roads and obstruct the sewer system.
Plastics deposited on public water ways end up in the
ocean and pose a risk to marinebiodiversity. As a result,
not only are they a threat to the health of the animals and
marinelife but are also a visual eye sore.

Manufacturers under the umbrella body of the Kenya
Associationof Manufacturers(KAM) lobbiedagainst
the regulations arguing that with more than 170 plastic
manufacturing industries employing over 60,000people,
the ban would result in loss of jobs and income as most of
these industries have to close shop. In addition, Kenya is
a major exporter of plastic materials in the region where
in Ksh 10 billion worth of plastics were exported in 2016.
In order to save the manufacturers from closure, KAM
proposed a plastic levy instead of total ban.

Kenya has joined more than 40 other countries in the
world that have banned or regulated the use of plastic
bags using environmentaltaxes. In Africa, Rwanda
and Morocco have already banned plastic bags while
Botswana and South Africa have imposed environmental
taxes to regulate their use. In the latter case, lightweight
plastic bags were banned while a levy was added on
heavy weight bags to make them costly and reducetheir
consumption.

Rwandaoutlawedthe manufacture,use, importation
and sale of the bags in 2007, making it the first country
to do so in Africa. Retailers and individuals violating the
law face stiff fines including a risk of imprisonment. The
enforcementmeasuresincludeundertakingsearchof
manufacturers, imports including individual travellers at
the entry points.Although this move resulted in reduction
of the quantity of plastic bags used, cases of black market
have been reported.

Morocco’s ban came into effect in July 2016 as part of the
country’s efforts to go green by reducing environmental
impacts caused by improper disposal of plastic bags. Like
in Rwanda, the ban prohibits the production, import,
sale and distribution of plastic bags. The first attempt in
2009 failed because authorities did not curtail informal
production.

In 2007, Botswana introduced a plastic levy which caused
a price increase of 31% to curb the demand for plastic bags
with less than 24 microns. After 18 months, the demand for
plastic bag fell by half compared to pre-levy consumption.
In response, shoppers increased the volume of shopping
carriedper bag. A levy introduced in South Africa resulted
in a temporary drop as consumption increased again.

Cont. P11

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


9

Kenya’s Vision 2030 acknowledges that nationalvalues are important for overall development.The Vision states that “Kenya shall formulate
and adopt a core set of national values…” and these
set values were later espoused in the Constitution
promulgated in 2010. Article 10(2) of the Constitution
of Kenyaprovides the national values and principles
of governance as follows: a) Patriotism, national
unity, sharing and devolution of power, the rule of
law, democracy and participationof the people; (b)
human dignity, equity, social justice, inclusiveness,
equality,human rights, nondiscriminationand
protection of the marginalized; (c) good governance,
integrity, transparency and accountability; and (d)
sustainable development.

Consequently,SessionalPaperNo. 8 of 2013on
National Values and Principlesof Governance
(INUKA) not only espoused but also operationalized
and institutionalized the country’s NV&PG. The policy
vision of INUKAis to have “a value driven, peaceful,
united and prosperous nation.” The broad policy
pillars that guide the operationalization of NV&PG as
espoused by INUKAare: (i) the creation of a strong
national identity; (ii) effective representation and
leadership;(iii) equitableallocationof resources
and opportunities; (iv) good governance; and (v)
promotion of sustainable development. Each of the
pillars from (i) to (iv) maps into the respective NV&PG
(a) through (d) as espoused in the Constitution.

Despite the relativelyrobust frameworksfor
entrenchingnational values and principlesof
governance, the country is currently facing myriad
challenges which have undermined the status of
our NV&PG.These challenges/opportunitiesare
examined in correspondence to each of the policy
pillars identified in INUKA.

Evidenceindicatesthat Kenyanshave a strong
attachmentto the nationas expressedby their
high levels of “pride to be Kenyan”. However, this
strong national identity is weak among individuals
who perceive that there are high levels of inequality
in the distribution of public goods. In the same vein,
evidenceindicatesthat the equitableallocation
of resourcesand opportunitiesis still a key

challenge. The relatively low level of equity can be
corroborated by unequal access to various public
goods such as electricity and improved water across
Kenya’scounties.Evenso, thesechallenges,are
likely to be mitigated by devolution and the efficient
implementation of ongoing initiatives such as the
equalization fund.

As regards effective representation and leadership,
good progress has been made in many spheres. A
key challenge is the relative under-representation
of womenparticularlyin politicalleadership.As
an example,fewer than 20%of membershipsof
the National Assembly in the 11th Parliament were
women despite the two-thirds gender rule.

Good governanceis about managingpublic
resourceseffectively,efficientlyand in response
to criticalneeds of communities.Indicatorsof
good governance include: accountability, absence
of violence, rule of law and control of corruption.
Public Institutions have put in place various policies
and statutesto improvegood governancein
Kenya. These include: the Mwongozo code which
addresses matters of effectiveness of boards; the
reviewof organizationalstructures;adoptionof
e-procurement; asset declaration; and execution of
performancecontractsand appraisals.Thereare
immense opportunities to enhance service delivery
by increasing Ministries, Departments and Agencies
(MDAs) presence in the e-citizen platform (given
that only 15% had presence in the e-citizen platform
in 2016).

Additional challenges affecting the entrenchment
of NV&PG that are amenable to policy include: lack
of awareness – where 41.0% of households were
not awareof NV&PG;low levelsof compliance;
and weak enforcement of NV&PG. With respect
to compliance, evidence indicates that only 47.4%
of staff in all public and private institutions had

By Eldah Onsomu, Boaz Munga and Nancy Nafula

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

CONT. PAGE 10

ISSUE 9 NO.1JULY-SEPTEMBER 2017

Strategies for Promoting National Values and
Principles of Governance in Kenya


1 0

been sensitized and trained on NV&PG on a regular
basis by 2015. This is despite the commitment to
“continuous learning in order to advance knowledge
and proper application of the NV&PG” as envisaged
by Sessional Paper No. 8. The enforcement related
challenges affecting existing frameworksinclude:
weak institutions,corruption and inadequate
citizen participationin decisionmaking.These
enforcement frameworks include institutions such
as Parliament, the Executive, National Police Service,
IndependentPolice Oversight Authority, Ethics and
Anti-Corruption Commission, Efficiency Monitoring
Unit, Auditor General, Controller of Budget, and the
Ombudsman.

Lessons from other countries revealthat addressing
inequality, or perceptions of inequality is a robust
approachto enhancingpatriotismand national
unity and hence NV&PG and social cohesion. This
can be realized partly by ongoing efforts such as the
equalization fund and consideration of consociation
systems of governance such as in Switzerland and
Finland whereall societal groups including minorities
have guaranteed representation in governance.

In addition,creatingawarenessis importantin
promotingNV&PG.Effectiveinterventionswould
call for initiativesencompassingearlyformation
of values in the families and in school. Kenyacould
apply specific nationbuilding policies such as a more
effective quota system of education combined with
a school curriculum that taught national values in
Tanzania. A key success factor for Tanzania was that
the process was championed by its first president. In
addition, the governments can design and implement
comprehensiveand targeted civic education
programmeson NV&PG across all counties. Various
laws and policies including the Constitution provide
for institutions and processes for the conduct of civic
education and facilitation of citizen participation.
If well implemented, these channels are likely to
increase effectiveness in creating awareness about
Government policies and strategies in general, and
NV&PG in particular.

The government should ensure compliance through
strongercommitmentto integrity,ethicalvalues
and the rule of law among all citizens at all levels.
To further entrenchcompliance,training and

merit-basedrecognitionof attainmentsshould
be adopted.Complianceand enforcementwith
NV&PG should also be integrated into the State
Commendationsawards;introductionof rewards
and sanctions for those who violate the NV&PG; and
curbing corruption, by strengthening public financial
management.Thereis needto ensureadequate
fundingfor training,enforcement,monitoringof
NV&PG and evaluation of effectiveness of various
interventionsand continuousmonitoringand
evaluation of programmes that promote national
values at all levels, including institutional levels.

The government should ensure
compliance through stronger

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

all citizens at levels.

FROM PAGE 9

KENYA INSTITUTE FOR PUBLIC POLICY
RESEARCH AND ANALYSIS
(KIPPRA)

Special Report

The Status of National Values
and Principles of Governance,
2015

KIPPRA Special Paper No. 16
2016


1 1

Similarly, a plastic tax introduced in Bangladesh
in 2002has not succeededas evidencedby
littered streets.

In Ireland, a levy introduced in 2002 on single-
use plasticbags has led to a reductionof
nearly 95%. The European Union (EU) in April
2015 introduced a directive aimed at reducing
the consumption of lightweight plastic carrier
bags. The directive has been in effect since
November 2016. The EU Member states are at
liberty to identify the economic instruments to
curb consumption. It is reported that a number
of EU countries no longer use plastic carrier
bags at their supermarkets while countries such
as France and Italy have banned plastic bags
altogether.

It is still too early to evaluate the effectiveness
of the ban in Kenya.However, based on lessons
from other countriesthe followingis worth
highlighting:

• The ban is the first step in managing plastic
waste disposal. To be effective, NEMA needs
to stringently monitor its compliance. In
the same vein, efforts should be put place
to create public awareness so as to avoid
illicit trade of banned materials.

• Manufacturersshouldbe encouragedto
producealternativebiodegradablebags
using abundance of natural resources such
as cotton,sisal, wool, bamboo and hyacinth
which present good environmental friendly
alternatives. This will include leveraging on
the “Presidential or other award system
for novel innovations”providedin the
Science,Technologyand InnovationAct
no.28of 2013.Manufacturerscould,for
instance,receivea monetaryaward for
novel innovations that offer an alternative
to plastics, which should not be limited to
carrier bags but other plastic containers.
The incentivesshould target enhancing
capacity of the youth to produce for the
local market which is partially being met by
imports.

• Consideringthe lifespanof plasticbags,
there are large stocks already in the soils,
water bodies,or litteringin the open
environment.NEMA should design a
programme in collaboration with County
governments to help mop up these plastics.

In summary the plastic bag ban should form
part of the wider waste management policy in
Kenya.

CONT. FROM PAGE 8

Parliamentary Contention
on the Two-Third Gender
Rule in Kenya

The Constitution of Kenya (2010) champions an affirmativeaction that provides for equality and freedom fromdiscrimination. This is anchored in Article 27(8) “the State shall
take legislative and other measures to implement the principle that
not more than two-thirds of the members of elective or appointive
bodies shall be of the same gender.” Further reiterated under the
general principles of the electoral system in Article 81(b) is that
“Not more than two thirds of the members of elective or appointive
bodies shall be of the same gender.” Kenya is also a signatory to
internationaland regionalagreementsincluding:the Universal
Declaration of Human Rights,BeijingDeclaration and Platform for
Action,AfricanUnion Protocol to the AfricanCharter on Human and
Peoples Rights on the Rights of Women in Africa (Maputo Protocol)
and Solemn Declaration on Gender Equality in Africa, and therefore
has to uphold championed principles such as attaining equitable
genderrepresentation in Parliament.

This notwithstanding, the representation of women in Parliament
remains low. In the 10th Parliament 16 women were elected out of
the 210 members while six were nominated out of 12 nominated
seats. The 11th Parliament which implemented the 2010 Constitution
saw 16 womenelectedin the NationalAssemblyout of 290
members and five women were nominated out of the 12 nominated
seats. In addition, there were 47 elected women representatives
and 18 women nominated in Senate. This translates to less than
25% of women representation in Parliament, as compared to 64% in
Rwanda, more than 40% in Senegal, Seychelles and South Africa and
over 35% in Mozambique, Angola, Tanzania and Uganda.

Although there was a steady increase in the number of women
representation in the 12th Parliament after the August2017 general
election, there was no compliance with the two thirds gender
principle. With only 23 elected MPs, six nominated MPs, and 47
women representatives, there was a shortfall of 41 from meeting
gender parity. Only three women were elected in Senate who
together with 18 nominated women had a shortfall of two to meet
the gender parity rule. At the county level, only 96 women were
elected out of 1,450 members of the countyassembly together with
three women governors. Meanwhile, after the 2013 parliamentary
elections in Rwanda, women comprised of 49 out of 80 members in
the lower house and 10 out of 26 members in its upper house which
was higher than the minimum 30% quota for women as provided for
in the 2003 Constitution.

ISSUE 9 NO.1JULY-SEPTEMBER 2017

By Chantal Chweya


1 2

Implementation of the two
thirds genderrule is undermined
by absenceof a legislationto
operationalizeArticle81(b)of the
Constitution. After promulgation of
the 2010 Constitution of Kenya, there
was a proposal for a Constitutional
Amendment2011so that extra
women representativeseats are
created in case the principle is not
compliedwith through electoral
process. However, this was to have
significantbudgetarycosts. The
Attorney General soughtan advisory
opinion from the Supreme Court of
Kenya through a reference dated 8th

October 2012 which held that gender
equity as an affirmative action right
for women is progressive in nature.
As such,Parliamentwas required
to provide for mechanismsto
implement the two-third-gender
principle by August2015.

The two-thirds genderrule under the
Constitution of Kenya (Amendment)
Bill 2015 was introduced and
published on 24th July 2015 seeking to
establish a clause to provide for the
nomination, from party lists, of the
numberof membersnecessaryto
ensure that the membership of the
National Assembly and the Senate
meet the genderrequirement.To
guarantee that this affirmative action
is not permanent, the Bill limitedthe
application of this mechanism to 20
years with a possibility of extension
for a further10 years if the minimum
genderquota is not achieved. It also
limitedto two terms the period that

one may be nominated under this
mechanism.The bill requiredthat
nominationsby political parties
be basedon fair and competitive
procedures.

The second reading and voting was
held on 28th April 2016.Although
the Speaker tried to ensure there
was at least a minimumnumber
of membersto pass the bill, the
National Assembly still failed to pass
it. The bill was submitted for a vote
again on 5th May 2016 but the total
numberof memberspresentwas
less than the required minimum to
pass the amendment. The President
in demonstratinghis commitment
to compliance with the gender rule
askedthe majorityleaderto rally
support on passing the bill but by
the expiry of the 11th Parliament, the
genderbill had not been passed.
Parliamentariansarguedthat the
cost of implementing the two third
gender rule would cost tax payers
a lot of money. Lobby groups,
following the 2017 general election,
filed a suit against Parliament,
to which the High Court gave
Parliament60 days to enact the
legislation.

Even if the 12th Parliamentwas
to pass the GenderBill in Kenya
within the specifiedtime by the
High Court, the gender principle in
Parliamentmayonly applyin the
next general election. In this regard,
there is adequate time to strategize
on how to improve the number of

elected women. It is important that
womenbuild a strongmovement
includingengagingin cross-party
platforms to unite women beyond
party lines by rallying them around
a commonagenda.Womenalso
need to registeras membersof
political parties and become active
members. That said, they also need
to identifymale alliesto help in
lobbying the implementationof
quota provisions.Further,gender
responsive civic and voter education
should share information with
women and the community at large
on the need for women to take up
leadership positions, as well as build
capacity of women to enhance their
engagement in the political life.

While the establishmentof the
National Gender and Equality
Commission (NGEC), a constitutional
commission mandated to promote
genderequality,is a step in the
right direction, political good
will is requiredto ensure there
is compliance to the gender
principle at all levels of government
includingMDAs. Kenyacan draw
some lessons from Rwanda’s
experience.Rwandahas managed
to implement the gender principle
by having gender sensitive quotas,
an innovative electoral structure and
participation of partner institutions.
For example, the National Women’s
Council (NWC) which is a forum for
women participationin national
development and governance
engageswomenfrom the age of
18 yearsand providesthem with
civic education on the importance
of politicalparticipation.Further,
NWC trains women on campaigning,
building self-esteem and confidence
and promoting genderequality. The
government has also established a
Gender Monitoring Office mandated
to monitor, advice and advocate for
genderequalityin all institutions
in the country.Moreover, there
is a strong politicalwill by the
government to promote aspects of
genderequality.


1 3

Policy News
Domestic Policy News
Legislative developments

In the first quarterof 2017/18,thePresidentsignedeightbills into law
on 21st July 2017. The President’s Award
Act 2017establishesthe President’s
Award Board of Trustees to regulate the
awards.It also provides for conferring of
awards to young persons who undertake
voluntaryactivitieswhich encourage
self-development, growth and service to
the community.

The CompaniesAmendmentAct 2017
seeks to amend the Companies Act 2015
to conform to other laws, global trends
and best practices. This will ensure ease
of doing business,protect minority
investors and clarify ambiguities in the
Act.

The Traffic (Amendment)Act 2017
amends the Traffic Act by providing for
road safety near schools and promote
child safety in motor vehicles.The
amendmentintroduces50KM/hspeed
limit near schools. Offenders are liable to
fines of Ksh 20,000.In addition, vehicles
transporting children should meet the
prescribed standard

The Kenya National Examinations
Council (Amendment) Act 2017 amends
the Kenya National Examinations Council
Act to ensure integrity in examination
and education system. The Act creates
an offenceagainstan officerof the
Council whose omission or commission
leadsto examinationirregularity.The
offence will attract a penalty of 5 years
in jail or a fine of Ksh 5 million or both.

The Parliamentary Powers and Privileges
Act giveseffect to Article117of the
Constitutionthat providesthat there
shall be freedom of speech and debate
in Parliament.The Act providesfor
powers, privileges and immunities
of Parliament,committees,leaderof
majority, leader of minority, chairs and
members committees.

The OccupationalTherapists(Training,
Registration and Licensing) Act makes
provision for training, registration and
lincensingof occupationaltherapists.
The piece of legislation also regulates
their practicesand establishesthe
OccupationalTherapistsCouncil of
Kenya. In addition, the Act prescribes the
qualificationsof registeredtherapists
and establishes a disciplinary committee.

Kenya Trade Remedies Act 2017 provides
for the establishment of Kenya Trade

Other Domestic
News
Social sector
challenges

The health sector has beenencumbered by nurses’ strike since
5thJune 2017 affecting nearly all counties.
Broad issues of the strike revolve around
the failureto implementthe nurse’s
Collective Bargaining Agreement (CBA)
and delayed salaries, unpaid internship,
and discrepanciesin remuneration.A
key path to end the impasse is to ensure
well-structured negotiations among the
partiesincludingthe healthworkers,
the Ministry of Health and the Council of
Governors. Part of a promising solution

ISSUE 9 NO. 1JULY-SEPTEMBER 2017

Remedies Agency for the investigation
and imposition of anti-dumping,
countervailing and safeguard measures.
The Act will also enable the government
to take necessary measures to protect
domestic industries from foreign
competition and unfair trade practices
arising from dumping, subsidizing and
import surges.

The International Financial Centre (NIFC)
Act 2017 provides a legal framework to
facilitate and supportthe development of
a globally competitive financial services
sector.This is expectedto enhance
national savings and investments. The
Act establishes a Nairobi International
FinanceCentreAuthorityin line with
Vision2030’sfinancialinclusionpolicy
prescription.

On 6th July 2017, the President assented
into Act the Revenue Allocation Bill for
the financialyear 2017/2018.County
governments will get a total allocation of
Ksh 341 billion, an increase from previous
year’s allocation of Ksh 302.2 billion. This
includesKsh 302 billion of equitable
share of national government revenue,
Ksh 23 billion in conditional grants from
the national government and Ksh 16.4
billion in conditionalallocationsfrom
loans and grants from development
partners.

is to establisha coordinatingagency
of professionals within the industry as
envisaged in the Kenya Health Policy.

According to the World Economic Forum
(WEF) Human Capital Report 2017, Kenya
ranks 78 out of 130 countries surveyed.
The report looked at four key areas of
humancapitaldevelopment,namely:
capacity, deployment, development and
know-how. Kenya was relatively weak in
the Know-How sub-index, defined as the
“breadth and depth of the specialized
skill used at work” and the Development
sub-index,defined as the “formal
education of the next generation
workforce and continued up-skilling and
re-skilling of the current workforce”.

Financial stability and
development

To enhancecyber securityin thefinancialsector,commercialbanks
are expectedto begin implementing
30th November2017the new cyber
security guidelines that were published
by CentralBank of Kenya (CBK) in
August 2017. The guidelines are meant
to mitigate the growing risks of cyber-
attacks banks face given the increasing
exposure on digital banking channels.
Thiswill also increaseresilienceto IT
failuresand cyber securityincidents,
including organised fraud.

The CBK and Kenya Bankers Association
(KBA) have launched a Cost of Credit
website which provides information
on fees and chargesrelatingto loan
products provided by commercial banks
and micro finance institutions in Kenya
(http://www.costofcredit.co.ke/).

The Capital Markets Authority in Kenya
has approved a Policy Guidance Note to
facilitate the issuance/listing of Global
Depositary Receipts and Notes. A global
depositaryreceipt (GDR) or global
depositary note (GDN) is a negotiable
certificate issued, listed and traded on
a securitiesexchangeand represents
securities issues in anothercountry. The
objective of GDR/GDN is to raise capital
domestically and internationally.

The mVisa, a mobile solution that
facilitatese-commerceand electronic


1 4

payment through a QR-based payment
service, is as of 2017 available in India,
Kenya and Rwanda. Interswitch
East Africa, a transactionswitching
and electronicpaymentsprocessing
company,announcedthat they will
upgrade the digital banking applications
to include mVisa and allow more
merchants accept the payment mode.

Drought effects

Projections show that about 3.4millionKenyansare likely to face
starvationas the productionof the
countrymain staple food plummets.
Droughtand infestationof fall army
worm has affected maize production in
grain basket counties. In response, the
governmenthas programmedKsh 6
billion to buy maize from farmersduring
the harvestseasonfor the strategic
food reserve to improve food security.
The programmealso aims to boost
the country food security and sustain
affordable price for maize flour.

Data from the Sugar Directorate
indicates that sugar production in the
first six months of 2017 dropped by 40%
from 337,826to 202,023tonnes.The
low production was attributed to the
prevailing cane shortage in most sugar
growing areas occasioned by drought.
The countryhas imported enoughsugar
stocks to run for the next five months
ensuring stable prices for the rest of the
year.

Droughtin ASAL countieshas seen
pastoralistsin Isiolo County divide
their rangelandsinto grazingblocks
as a strategy to mitigate the effects of
drought. The blocks cater for grazing
during the rainy season,moderately
dry spell, and extremely dry period by
controlling the movement of pastoralists
and management of water and pasture.
Althoughthe communitieshavebeen
practicing this system over generations,
it has been eroded by the adoption of
modernpublic administration structures.
The system is overseen by a council of
elders ‘Dedha’ who are responsible for
enforcingrules and regulationswith
regard to livestock mobility. In Kajiado
County, farmers are being encouraged
to insure their livestock against drought.

Infrastructure
development

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

century transportation,water, and
communicationsas well as electricity
infrastructure system. This is according
to G20’s Global Infrastructure Outlook
Report that calls on policy makers to
help “close the investment gap.”

The Government of Kenya through the
KenyaCivilAviationAuthority(KCAA)
has recentlyallowed20 Africanand
European airlines to start direct flights
to the country. This is in line with the
plannedlaunchof an African single
air transportmarketin January2018
in whichmore than 40 countriesare
expected to be signatories. The single air
transport market aims to boost African
nations’ tourism, economic growth and
economic development. Similarly, Kenya
Airwaysis eyeing New York City as its first
destination when it starts direct flights
to the US next year before expanding
networksacrossthe world’s biggest
economy.This follows the airline’s
receipt of a foreign air carrier permit on
5th September from the United States
Department of Transportation (DOT).

In the energy sector, Kenya
commissioned an electricity transmission
line in August 2017 to access cheap power
producedat the Olkariageothermal
fields in Naivasha for the Coast region.
This will see reduced reliance on thermal
power plants which is expected to cut
the fuel cost charge component in the
electricity bill. In addition, the Energy
(Solar Water Heating) Regulations 2012
are set to come into effect by end of
October 2017. The regulations compel
all buildings using over 100 litres of hot
water to install solar water heating
system. This applies to buildings, both
public and private, and is expected to
increase demand for solar products thus
promote renewableenergy sources
while reducing usage of power from the

national grid.

Business Environment

Kenya has ratified a double taxationagreementwith India to attract
more investment while providing for the
sharingof fiscalinformationbetween
the nationsto eliminatetax cheats
in the two countriesthus enhancing
tax compliance.The Agreementwas
ratified by the Kenya’s National Treasury
through Legal Notice No. 147 of 2017.
The agreement aims at the avoidance of
double taxation of commercial entities
trading in both Nairobi and New Delhi.

There are new anti-counterfeiting
measures reported, including: a Device
ManagementSystemto be deployed

Policy News
by Communication Authority of Kenya
(CA) to curb counterfeitsand phone
models that have not been type
approved to work in Kenya; and a Pre-
Export Verification of Conformity (PVoC)
to Standardsprogrammeby Kenya
Bureau of Standardsin partnership
with the Kenya Pharmacy and Poisons
Board to inspect all imported medical
devices, food supplements,medical
cosmetics,and herbal productsand
issuinga Certificateof Conformityto
combat substandard and/or counterfeit
imported products that do not
meet local standardsand technical
regulations.To address piracy, the
Kenya Copyright Board plans to combat
illegal production and sell of music and
movies without proper authentication.
Authenticproductsare supposedto
have the Board’s tamper proof sticker
with a hologram and a product unique
bar code failureof which attractsa
penalty.

Trade

Establishment of nationalcommoditiesexchange by June
2018in Kenyais expectedto protect
cross-border traders from exploitation
by middlemen,promoteefficiencyin
domesticand regionaltrade, attract
more investorsand createjobs. The
commodity exchange will involve
the use of regionalwarehouseswith
modernfacilitieswhere farmersand
traders can take their products to
minimizeon storage wastage. The
structureis meantto operatein the
larger East African region, with Rwanda
already runninga commodity exchange.
Kenya and Ugandaare laying legal
and infrastructuralstructuresfor the
successful operation of the commodity
exchange.

Onlineshoppingcommercein Kenya
has picked up with the entry of a
numberof platformsincludingJumia,
OLX, Pigiame,Kilimall,amongothers.
Increasedpenetrationof internet in
Kenya which stands at 85% as reported
in the Communications Authority 2015-
2016 annual report reduced the cost of
smartphones from an approximate Ksh
25,000 to Ksh 10,000 and the improving
price of data favours Jumia online
shopping. Onlinetradingis seenas a
way to revitalize Kenya’s retail sector
that has seen increase of empty shelves
in supermarketsand closureof giant
supermarket branches.


Policy News
Global Policy News

EastAfrica Community

Tanzania is set to launch the world’s largestdrone delivery network in 2018to deliverblood and medicines to women giving birth and children struck by
malaria. Besides cuttingon time taken to deliversupplies, it is estimated that
the droneswill cut the drug delivery bill for Tanzania’s capital, Dodoma, one of
two regions where the projectwill first roll out, by US$ 58,000a year.

The EAC states envisage upgrading their 30,000 kilometre road network to
bitumen standards in the coming 33 years. At an average rate of 900 kilometres
per year, the region’s entire road network will be covered by 2050 as provided
for in the EAC Vision 2050. In the energy sector, the EAC is moving towards
getting energy solutions for the regional block as part of the integration
factors. Electricity trade amongEast Africanstates will soon begin as Ethiopia
and Kenya race to finish the stringing of cross-border high-voltage transmission
lines. The Kenya and Ethiopia power line is expected to reducecost of power by
US$ 0.07 (Ksh 7.25) per Kilowatt hour from September 2018, the Kenya section
of the line is valued at approximately Ksh 40.3 billion.

After the completion of one stop border at Busia, Malaba, Mutukula, and
Mirama,TradeMarkhas announcedthe investmentof US$ 20 millionto
construct one stop border between Uganda and the Democratic Republic of
Congo (DRC) at Goli (Nebbi District, North western Uganda) and Mahagi border
on the DRC side. The construction of the one stop border post (OSBP)means
that clearance of goods will be done once and all institutions involved in the
clearance have access to the same ICT system. The measures are meant to
reducethe cost of doing business and reduceclearance time.

The Inter-GovernmentalAuthorityon Development(IGAD) is keen on
revitalizing the South Sudan peace process with determination to add new
participants including the National Democratic Movement (NDM),the National
Salvation Front (NSF), South Sudan National Movement for Change (SSNMC);
and Federal Democratic Party of South Sudan (FDPSS). It has also been decided
that the peace talks will now be taking place in rotation in Kenya, Ethiopia,
South Africa, South Sudan and Sudan.Since the peace process began in 2014,
the actors have only been the SPLM-In Government, SPLM-In Opposition and
SPLM of Former Detainees.

China and Turkey in the
Horn of Africa

China cemented its militarypresence in Africa by sending first
batch of its soldiers to its recently
built militarybase in Djibouti in
July 2017. Beijing contends that the
base in Djibouti will boost the East
Asia powerhouse’sperformancein
maritime security, peacekeeping
and humanitarian aid in Africa. The
Djibouti base will also be conducive
to military cooperation, joint
exercises, evacuation and protection
of Chinese citizens working overseas,
emergency rescue missions and jointly
maintaining security of international
strategicseaways.Other countries
with militarypresencein Djibouti
includethe United States,France,
Germany, Italy and Qatar.

In September 2017, Turkey opened a
military training base in Mogadishu,
Somalia. The facility has been
described as Ankara’s largest
overseasmilitary training facility.
Turkey is progressively emerging as
a major security and a development
ally of Somalia. The increasing
interestsof emergingpowers to
the Horn of Africa is likely to raise
the geostrategic importance of the
region.Since China, Turkeyand other
emergingeconomieshavebecome
important investors and major trade
partnerswith regionalstates,it is
imperativeto explore innovative
militarycooperationthat could be
critical in dealing with security threats
such as terrorism,piracy,human
and drug trafficking, among others.
Similarly, regional states should
pursue strategicpartnershipwith
the countriesestablishingmilitary
facilities in the region so as to enhance
their capacity in peacekeeping and
homeland security.

1 5


Current KIPPRA Research Projects

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

The studysupportsthe ongoingefforts by the governmentto
end emergenciesemanatingfrom
droughts and floods, which are key
in anchoring the long term economic
growthas articulated in Kenya Vision
2030.The study will analyzethe
socio-economic impacts, assess the
policy and institutionalstructures
that governdisastermanagement
and identify any capacity gaps that
require governmentinterventions
in building resilienceto climatic
shocks. So far, the Institute has held
roundtable discussions with relevant
stakeholders on 1st September
2017, and is now preparing for field
survey to collect primary data. Upon
completion, the Institute will hold a
nationalworkshopto disseminate
the survey findings with an intention
of initiatingnationaldialogueon
how the country can strengthen
its preparednessand responseto
emergencies of droughts and floods.

Boosting Investments
for Delivery of Kenya
Vision 2030

The focus is to provide theimpetus on total investments
that can deliver the desired10%
growth in the economy. Public and
privateinvestmentsare criticalin
drivinginclusiveeconomicgrowth
and development. Increasing
investmentsacross all sectors of
the economy will enhancetheir
respective contributionstowards
overall growth. The analysis is guided
by several questions as follows: What
is the status of investments in Kenya?
What are the opportunities and risks
for investments in Kenya? What are

the constraintsand challengesfor
investments in Kenya? What are the
financingoptions for investments
in Kenya? What are the policy
implicationsand recommendations
on investments?The findingsare
aimedat advisingon investments
to realizethe Vision2030goal of
sustained 10% annually.

Capacity Development for
Child Sensitive Planning
and Budgeting in Kenya

KIPPRA is participatingin theCapacity Development for Child
SensitivePlanningand Budgeting
initiativein Kenyaspearheadedby
the National Treasury with support
from United Nations Children’s Fund
(UNICEF). The overall objective
of this initiativeis to developthe
Nationaland CountyGovernments’
capacity and capabilities in the area
of child sensitive planning, budgeting
and related policy making processes.
Other partnering institutions include
Oxford PolicyManagement(OPM)
and the Kenya School of Government
(KSG). Planned activities include
National and County level trainings
and productionof Countybudget
briefs.The projectwill informthe
2018/19budget making process
through participationin relevant
sector budget working groups.

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

This study is funded partly bythe African CapacityBuilding
Foundation (ACBF)with the objective
of reviewingthe implementation
challengesof the Trackand Trace
System of excisable goods in Kenya.
It examines the contribution of the
track and trace system towards
the control of illicit trade and
acknowledges that an independent
appraisal of the system is yet to be

implemented. The study is expected
to be completed by the end of 2017
and the findingswill informpolicy
interventionsin Kenya, besides
providinglearningexperiencesto
other developing countries that
intend to roll out similar systems.

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

KIPPRA signs an agreement withCAPEC to jointly undertake
this IDRC funded project. The
overall objective of this project
is to analysethe contributionof
inclusive entrepreneurship to young
people and women well-beingin
Cote d’Ivoire, Burkina Faso and
Kenya.Findings from this project are
expected to provide useful insights
for governmentsto implement
incentives and support mechanisms
to mainstreamthe practice of
inclusive entrepreneurshipwhile
maximizing its impact on vulnerable
groups, including women and youth.
Three (3) Think Tanks including
KIPPRA, the Economic Policy Analysis
Unit of CIRES (CAPEC) of Cote d’Ivoire,
and the Laboratory of Quantitative
AnalysisAppliedto Development-
SAHEL (LAQAD-S)in BurkinaFaso
are involved in the realization of this
project. This is a three year project
which will be managed on behalf of
the three (3) countries by CAPEC.

1 6ISSUE 9 NO.1JULY-SEPTEMBER 2017


KIPPRA News and Events
National Workshop on Capital
Flows in Kenya

On 4
th September2017,KIPPRA and AERC

partneredin organizinga workshop on
“Capital flows in Kenya”. The essence of the forum
was to brainstormon policy issuesrelatedto
capital flows both domestically and internationally
and to disseminate research findings. KIPPRAwas
implored to undertake further research on capital
flows and fiscal discipline in Kenya and the region.
The workshop concluded with the observation that
capital flows is a key area in national development
agenda and that the domestic policy environment
and de-risking issues need to take cognizance of
the push factorsfor capital flows.

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

On 1
st September 2017, KIPPRAheld a stakeholder roundtable discussion on a

study aimed at “Building resilience to mitigate the impactof droughts and
floods in Kenya”. The purpose of the meeting was to engage stakeholders on
the planned study. The study supports the ongoing efforts by the government
to end emergencies emanating from droughts and floods, which are key in
anchoring the long term economic growth as articulated in the Kenya Vision
2030. During the event, three keynote speakers from Kenya Meteorological
Department,NationalDroughtManagementAuthority,NationalDisaster
Operations Center and Ministry of Water shared their experiences in dealing
with emergencies of droughts and floods. Among the major policy-related
issues highlighted were: lack of a well-coordinated effort and overlapping
mandate amonginstitutions dealing with droughts and floods. Other issues are
related to humanand capital, cultural and technical capacity.

1 7

Policy Dialogue
on Creating and
Sustaining Jobs
in Kenya

On 20
th July 2017, KIPPRAheld a

stakeholder policy dialogue
on “Creating and sustaining jobs
in Kenya”. The event was part of
a series of policy engagements
with stakeholdersto discuss
economicissuesaffectingthe
country.The forum discussed
possible policies and strategies
to be put in place to enhance
job creation and curb job losses
in the country. The importance
of conducting a study on
establishing and sustaining jobs
in Kenya was emphasized.

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

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


On 25
th July 2017, KIPPRA

hosted a colorful launch of
its ninth edition of the “Kenya
EconomicReport(KER) 2017”.The
annualreport, which is a KIPPRA
flagship, is in fulfilment of statutory
obligationas stipulatedin KIPPRA
Act 2006. Themed: “Sustaining
Kenya’sEconomicDevelopmentby
Deepening and Expanding Economic
Integration in the Region”, the report
discusses in detail the prospects of
enhancing Kenya’s economic growth
and developmentby exploiting
opportunities in regional integration.
The launchcoincidedwith KIPPRA
celebrations of its 20th anniversary,
providingan opportunityfor staff
to reflect and take stock of the
institute’s journey thus far.

Kenya Economic Report 2017 launch and KIPPRA @20 celebrations

Launch of the Kenya Economic Report 2017

1 8ISSUE 9 NO.1JULY-SEPTEMBER 2017

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

The AERC and KIPPRA partneredin organizinga dissemination
workshopin Nairobi on 27th July
2017. KIPPRA presented findings of
its work on assessinghealthcare
delivery in Kenya under devolution.
The workshop brought together key
stakeholders in the health sector and
this enriched the discussions.

K
en

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no

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ic


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ep

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t
20

17

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ow

A
va

ila
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e

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

Participants during the national dissemination
workshop on health sector in Kenya


1 9

Ateam of 25 Turkish and Kenyan students undertook an interactive study tourof KIPPRA on 22nd August, 2017. The visit, which was courtesy of the Turkish
Cooperation and Coordination Agency (TIKA) Nairobi, aimed at exposing the students
to development challenges within TIKA’s priority areas of health, education, water,
sanitation and agriculture. The team also wanted to know KIPPRA’s role in providing
policy and research solutions to these challenges. The meeting ended with a mutual
agreement to continue discussions with the possibility of forging collaborations in
future.

Tu r k i s h C o o p e r a t i o n a n d C o o r d i n a t
i o n

A g e n c y ( T I K A ) s t u d e n t s v i s i t K I P P
R ADeepening Islamic

Finance in Kenya

A section of Turkish students who visited KIPPRA

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

On 7
th September

2017, the Institute
organized a stakeholder
policy dialogue on
“Deepening Islamic
finance in Kenya”.
The aim was to share
industry experiences,
successes and challenges;
identifying policy gaps
and challenges; as well as
priority agenda for policy
reforms thus contributing
to and enhancing the
reform agenda on
Islamic finance in Kenya.
The forum highlighted
the importance of a
supportive, dynamic and
comprehensive policy and
regulatory framework,
an effective interagency
m u l t i - d i s c i p l i n a r y
approach and enhanced
public awareness to
foster deepening of
Islamic finance in the
country.


20

Bishops Garden Towers, Bishops Road
PO Box 56445, Nairobi, Kenya

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

Email: monitor@kippra.or.ke
Website: http://www.kippra.org

Twitter: @kipprakenya

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.

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

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

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

KIPPRA.

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

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


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Ban on Plastic Bags

Finally Takes Effect in Kenya


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