Kenya - Competitiveness and Economic Recovery Support Programme II (CERSP-II)

Project Summary

Approval Date	29 Jun 2022
Signature Date	29 Aug 2022
Planned Completion Date	30 Jun 2023
Last Disbursement Planned Date	30 Jun 2023
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Environmental Category	3
Commitment	U.A 70,362,962.2
Status	Implementation

Project General Description

Competitiveness and Economic Recovery Support Programme II (CERSP-II) is the second phase of the two-year programmatic operation covering fiscal years from 2020/21 to 2022/23. It concerns the strengthen resilience and support inclusive post-pandemic economic recovery through improved economic governance and enhanced industrial development and competitiveness. The key outputs of the CERSP-II are (i) anti-money laundering frameworks strengthened; (ii) E-Government procurement advanced; (iii) fiscal commitment and contingent liabilities framework enhanced; (iv) monitoring of state owned enterprises improved; (v) increased budgetary allocations towards the development of special economic zones (SEZs); (vi) monitoring public investment management enhanced; (vii) single registry for social protection implemented; and (viii) universal access to affordable and quality health services advanced.

Project Objectives

The overarching development objective of CERP-II is to continue to strengthen resilience and to support inclusive post-COVID-19 pandemic economic recovery through improved economic governance and enhanced industrial development and competitiveness. CERP-II aims to deepen support to Kenya’s medium term development agenda by placing emphasis on: (i) enhancing fiscal performance; (ii) strengthening industrial development and competitiveness; and (iii) promoting economic and social inclusion by supporting the development of Micro, Small & Medium Enterprises (MSME), social protection coverage, and women’s empowerment.

Beneficiaries

The beneficiaries of the programme remain the same as under the CERSP-I. The direct beneficiaries are: The National Treasury; the Ministry of Industry, Trade, and Cooperative; the Ministry of Labour and Social Protection; the Ministry of Public Service, Youth and Gender Affairs; the Ministry of Health; Kenya Revenue Authority; Public Procurement Regulatory Authority; and Micro and Small Enterprises Authority. The private sector will also benefit from improved investment opportunities in industry (including in SEZs), and PPP transactions. The MSMEs will equally benefit from improved policy framework, access to affordable finance, and research and development. The programme will ultimately indirectly benefit all citizens of Kenya as enhanced fiscal performance will help to expand fiscal space for pro-poor spending and expansion of the COVID19 vaccination program which is the foundation for quick economic recovery.

Participating Organization

Implementing

GOVERNMENT OF KENYA (MULTINATIONAL)

Funding

African Development Bank

Information

IATI identifier	46002-P-KE-K00-010
Last Update	24 Mar 2023

Export

Contact Details

Name	Angelique UMUBYEYI
Email	a.n.umubyeyi@afdb.org

Geographic Location

Country	Kenya

Coordinates	Location Name
-1.28333 36.83333	Nairobi

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 70,362,962

African Development Bank

U.A 70,362,962.2

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	en	viewer
Appraisal report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value
Overall fiscal balance as a percentage of GDP	%	2022	-6.6
Public and publicly guaranteed debt service to exports ratio	%	2022	25.5
Investments as share of GDP	%	2022	11.4
Manufacturing value added	KES billion	2022	847.0
MSMEs registered	Number	2022	67000.0
MSMEs registered - of which are women-owned	Number	2022	26800.0
Social protection coverage	Number	2022	1500000.0
Social protection coverage - of which women	Number	2022	750000.0
Audit of all product tax exemptions over the past 5 years conducted by Kenya Revenue Authority (KRA)	None	2022	Yes
Second Mutual evaluation by the Eastern and Southern Africa Anti-Money Laundering Group conducted	None	2022	Yes
Comprehensive information on all awarded public tenders including beneficial ownership information published on the public procurement information portal	None	2022	Yes
The Government Management Information System (GMIS) for state owned enterprises (SOE) monitoring has further been enhanced to include SOE financial information and budget submission and generation of SOE monthly and quarterly reports	None	2022	Yes
E-Government Procurement (E-GP) policy framework launched	None	2022	Yes
Updated Sovereign Debt Management Strategy (SDMS) approved and published	None	2022	Yes
The Public Private Partnerships Act enacted to enhance the Fiscal Commitment and Contingent Liabilities Framework (FCCL) over public-private partnership (PPP) transactions	None	2022	Yes
FCCL databases and analytical tools expanded beyond the PPP to the broader issues of public debtmanagement,including public corporations and subnational governments	None	2022	Yes
Disclosure framework for debt statistics, reporting and settlement revised in line with international best practices	None	2022	Yes
SEZ legislation amended to bring clarity, predictability and sustainability on SEZ incentives and aligned with AfCFTA requirements	None	2022	Yes
Green Manufacturing Strategy approved and implemented to enhance sustainability	None	2022	Yes
Budget for the Financial Year 2022/23 has allocations for the development of special economic zones	None	2022	Yes
National Treasury and Planning applies PIM M&E criteria to the inventory of active projects and publishes Cabinet Decision for rationalising the inventory	None	2022	Yes
Environment and Social Risk Management Unit set up and operationalised within PPP Directorate to assess environment and social impacts of PPP projects	None	2022	Yes
MSE Policy designed to entrench entrepreneurship, promote formalization and improve coordination approved by Cabinet	None	2022	Yes
Pilot phase of MSE registration system rolled out	None	2022	Yes
The National Hospital Insurance Fund (Amendment) Bill 2021 enacted	None	2022	Yes
Enhanced single registry for social protection developed and rolled out in 4 counties out of 47 counties	None	2022	Yes
Unemployment Insurance Fund established	None	2022	Yes