Kenya - Public debt management support project (PDMS)

Project Summary

Approval Date	27 Apr 2020
Signature Date	23 Sep 2020
Planned Completion Date	30 Jun 2024
Last Disbursement Planned Date	30 Jun 2023
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Environmental Category	3
Commitment	U.A 800,000
Status	Implementation

Project General Description

The Public Debt Management Support Project (PDMS) will finance technical assistance and capacity building activities to address capacity and knowledge gap in identified areas for effective public debt management and borrowing in Kenya. It falls under the country’s medium-term development goal as outlined in the Third Medium Term Plan (MTP III 2018–2022), aims at transforming the economy to achieve inclusive and broadbased economic growth. The project will enhance the capacity of the National Treasury (NT) to better balance the government's financing needs and its payment obligations over the medium to long run, consistent with a prudent degree of risk. Reducing vulnerabilities to risks of public debt and maintaining debt within sustainable levels is critical for Government’s efforts to attain fiscal consolidation policy in order to safeguard macroeconomic stability and reduce the pace of growth of the public debt. It is structured around two components to support the Government’s efforts in addressing these challenges; namely: (i) Strengthen public debt management functions; and (ii) Strengthening institutional capacity for transparent, accountable, and results-based debt management. The project will be implemented over a period of 24 months. The estimated total cost is USD 1,385,680, of which the Bank will provide UA 800,000 (USD 1,110,080), to be funded under the MIC TAF.

Project Objectives

The goal of the project is to strengthen public debt management capacity of the PDMO for transparent, accountable, and effective management of public debt and borrowing. The ultimate objective is to support the GoK to better manage the level and composition of national public debt, national guarantees and other financial obligations of national government within the fiscal consolidation framework and develop a framework for sustainable debt control.

Beneficiaries

The direct beneficiaries of the project are government officials involved in debt management activities. This will be mainly through technical assistance, training, mentoring and study tours. In the long term, the positive impact of the project on the debt management transparency and efficiency will also help reduce the debt cost and sustainability. The project will ultimately indirectly benefit all citizens of Kenya. The fiscal consolidation reforms that aim at maintaining macroeconomic stability and improving the efficiency and effectiveness of public spending would benefit all Kenyan citizens, as more reliable resources would be available for propoor activities (e.g. education, health and social protection services).

Participating Organization

Implementing

Ministry of Finance

Funding

Middle Income Countries Fund

Information

IATI identifier	46002-P-KE-KF0-006
Last Update	24 Mar 2023

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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 Grant Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Other Technical Assistance

Commitments

U.A 800,000

Middle Income Countries Fund

U.A 800,000

Disbursements

Document Type	Language	Document
Appraisal report	en	viewer
Evaluation Report	en	viewer
Expression of interest	en	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Debt management framework strengthened	CPIA Score	2020	4.2	2022	4.08
Long-term contingent liabilities management improved	None	2020	Liability management risk (Medium Risk)	2022	Liability management risk (High Risk)
Fiscal Commitments and Contingent Liabilities reviewed	None	2020	Assessment report on the FC of PPP commitment conducted and action plan for implementing recommendation elaborated and endorsed. Assessment report of contingent Liability conducted and action plan for implementing recommendation elaborated and endorsed. FCCL framework developed and operationalized	2022	FCCL Commitment has been undertaken, but now been expanded to include PPPs and u
Sinking funds framework developed	None	2020	Liability management framework developed and operationalized	2022	The PFM act established the sinking funds, but the framework for its operational
Operational guidelines and rules to support secondary market trading activities developed	None	2020	Guidelines and rules to support secondary market trading activities develop and operationalized	2022	Framework for secondary market trading activities exists, but need to be undated
Disclosure framework for debt statistics, reporting and settlement developed	None	2020	Disclosure framework for debt statistics, reporting and settlement developed and operationalized. 10 staff trained	2022	Disclosure framework for debt statistics, reporting exists, but required update
Number of staff benefited from training on: (loan negotiation; contract management, resource mobilization; risk management; and M&E)	Number	2020	30.0	2022	0.0
Number of staff benefited from training on: (loan negotiation; contract management, resource mobilization; risk management; and M&E) - of which women	Number	2020	9.0	2022	0.0
Number of staff benefited from study benchmarking visits to countries that offer the relevant experience and lessons	Number	2020	10.0	2022	0.0
Assessment report of contingent liability	None	2020	Assessment report of contingent Liability conducted and action plan for implementing recommendation elaborated and endorsed	2022	FCCL Commitment has been undertaken, but now been expanded to include PPPs and u
FCCL framework developed	None	2020	FCCL framework developed and operationalized	2022	FCCL Commitment has been undertaken, but now been expanded to include PPPs and u
Number of staff trained on debt dissemination standards	Number	2020	10.0	2022	0.0
Number of staff trained on debt dissemination standards - of which women	Number	2020	3.0	2022	0.0
Annual reports on borrowing and debt-related transactions portfolio conducted	None	2020	Annual reports on borrowing and debt-related transaction portfolio produced and endorsed by NT	2022	Annual reports on borrowing and debt-related transaction portfolio exist; but qu
The Electronic Project Monitoring Information System for Kenya (e-ProMIS Kenya) evaluated	None	2020	Evaluation report on the e-ProMIS functionality and recommendation implemented	2022	The e-promis system has been operationalized since 2020, but yet to be evaluated