The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Kenya Devolution Support Project (P149129) AFRICA | Kenya | Social, Urban, Rural and Resilience Global Practice Global Practice | Requesting Unit: AFCE2 | Responsible Unit: GSU13 IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Abdu Muwonge, John Muratha Kinuthia Seq No: 6 | ARCHIVED on 07-Dec-2018 | ISR35085 | Created by: Abdu Muwonge on 27-Nov-2018 | Modified by: Abdu Muwonge on 02-Dec-2018 Program Development Objectives Program Development Objective (from Program Appraisal Document) To strengthen capacity of core national and county institutions to improve delivery of devolved services at the county level. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions KDSP is two years since it became effective in September 2016. The program has become a central part of the conditional grants architecture from the National Government to County Governments for supporting institutional strengthening through incentives provided with capacity building grants and performance grants for physical investments. The program has registered remarkable achievements, notably, the cumulative disbursement of USD 63 Million as of June 15, 2018, representing 31.5% of the total credit. This fiscal year alone, KDSP has disbursed approximately USD 36.5 million against an appraisal target of USD 45.2 Million, that was largely triggered following completion of the first annual capacity and performance assessment (ACPA) that formed the basis of disbursing the first performance based grants to thirteen counties (out of forty-seven) that successfully met all program performance requirements. National Treasury released the level 2 grants (performance grants) to the beneficiary counties for physical investments articulated in their CIDPs. Cumulatively, the National Treasury has released roughly USD22 Million as level one capacity building grants to 47 eligible counties. County Governments are utilizing the capacity building grants on eligible activities such as developing systems and capacity building to support procurement, social and environment, revenue enhancement and HR management. An allocation of approximately USD 63 Million has been captured in the Division of Revenue Act (DORA) toward KDSP disbursements for FY 2018-19. KDSP has contributed to fostering improved coordination of capacity building activities within the National Capacity Building Framework as evident from the continuous dialogue and joint program implementation by the national implementing agencies, Council of Governors and Counties. National level implementing agencies (i.e. National Treasury, Ministry of Devolution and Planning, Ministry of Public Service, Youth and Gender Affairs; and Kenya School of Government) have developed and are implementing strategic plans in support of county capacity development in line with the National Capacity Building Framework. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P149129 IDA-57650 Effective USD 200.00 200.00 0.00 62.14 141.07 31% Key Dates (by loan) 12/11/2018 Page 1 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P149129 IDA-57650 Effective 15-Mar-2016 15-Apr-2016 15-Sep-2016 31-Dec-2020 31-Dec-2020 Program Action Plan Conduct a review of the implementation of the first year of full grant disbursements, and discuss options for financing Action Description of the C&P Grant beyond FY 2019/20 at the KDSP Steering Committee Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Eligibility criteria including resettlement and dealing with vulnerable and marginalized groups will be included in the Action Description Program Operational Manual (capacity and performance grants Manual) and in training for KDSP. Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS Completed Comments Interested county governments are sensitized to ACPA and grants and able to meet the program minimum access Action Description conditions Responsibility Recurrent Frequency Due Date DLI# Status Both Yes CONTINUOUS In Progress Comments Ministry of Public Service/DPSM appoints a focal point/team to coordinate HR action plans, reports, budget Action Description submissions Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description Independent ACPA conducted Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress 12/11/2018 Page 2 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Comments Action Description Results of ACPA widely published to promote transparency and increased incentives for performance Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description Office of the Auditor General completes audit reports in time for grant allocations Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS Delayed Comments Grant conditions, including adherence to capacity and performance grants Manual, included in County Allocation Action Description Revenue Act-CARA Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments GoK will transfer capacity and performance grants to counties as per Program entitlement and CARA allocations in Action Description two tranches, with the first tranche disbursed before end August, and the second tranche disbursed before end February each year. Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Program Operating Manual includes system for tracking Program expenditures and outputs (including compliance with Action Description investment menus) Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments 12/11/2018 Page 3 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Action Description Audit Committee guidelines to be developed and issued Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description Joint Steering Committee operational, including county governor representative Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description Technical Committee operational Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments KDSP Secretariat operational: Coordinator and staff are assigned or appointed in the KDSP secretariat as per Action Description institutional arrangements and sufficient operating budget allocated Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments National Treasury appoints a focal point/team to coordinate with Treasury departments and ensure adequate annual Action Description budget for the Program is reflected in annual printed budget estimates Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description KSG appoints a focal point/team to coordinate KSG action plans, reports, budget submissions Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress 12/11/2018 Page 4 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Comments Chapter with methodology and ToR for value-for-money audits added to C&P Assessment Manual, compliant with Action Description PFMA requirements Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS Not Yet Due Comments Action Description Sensitization of counties includes training of technical staff responsible for environmental and social management. Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Sensitization of counties includes training of county focal persons (county secretary’s offices, complaints officer) on Action Description complaints handling and management (in consultation with the EACC and other institutions) Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Implementing agencies to develop risk management registers. KDSP Secretariat to develop and periodically update Action Description risk management registers Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Action Description Sensitization and awareness campaigns on corruption reporting mechanisms Responsibility Recurrent Frequency Due Date DLI# Status client Yes CONTINUOUS In Progress Comments 12/11/2018 Page 5 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- High High Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes PDO Indicator 1: Counties have strengthened institutional performance as demonstrated in the ACPA IN00650467 ►Counties have strengthened institutional performance as demonstrated in the ACPA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.60 40.60 55.00 Date 20-Jun-2018 20-Jun-2018 20-Jun-2018 20-Jun-2018 Comments PDO Indicator 2: MC-Number of counties which comply with the minimum performance conditions (DLI 8) IN00650468 ►MC-Number of counties which comply with the minimum performance conditions (DLI 8) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 13.00 35.00 Date 20-Jun-2018 20-Jun-2018 03-Dec-2018 20-Jun-2018 Comments IN00650469 12/11/2018 Page 6 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) ►PDO Indicator 1: Counties have strengthened institutional performance as demonstrated in the ACPA - Score in the ACPA for institutional performance of participating counties (average across all counti (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 40.00 55.00 Date 18-Feb-2016 05-Dec-2017 03-Dec-2018 31-Dec-2020 Comments IN00650470 ►PDO Indicator 2: MC-Number of counties which comply with the minimum performance conditions (DLI 8) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 13.00 35.00 Date 18-Feb-2016 20-Jun-2017 03-Dec-2018 31-Dec-2020 Comments Intermediate Results Indicators by Results Areas Building county-wide institutional capacity for devolution IN00650497 ►IR Indicator 1.1: Number of months taken to produce a full set of audits of financial statements of counties (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 11.00 11.00 7.00 Date 18-Feb-2016 20-Jun-2018 03-Dec-2018 31-Dec-2020 Comments IN00650498 ►IR Indicator 1.2: ACPA and value for money audits completed on time (DLI 2) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 18-Feb-2016 20-Jun-2018 03-Dec-2018 31-Dec-2018 Comments IN00650499 ►IR Indicator 1.3: Annual capacity building plans for county governments are completed (DLI 3) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments 12/11/2018 Page 7 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) IN00650500 ►IR Indicator 1.3: Planned MoDP Capacity Building activities are implemented according to the annual implementation plan (DLI 3) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 18-Feb-2016 20-Jun-2018 03-Dec-2018 31-Dec-2020 Comments IN00650501 ►IR Indicator 1.4: Annual HRM capacity building activities for county governments are completed (DLI 4) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 18-Feb-2016 20-Jun-2018 03-Dec-2018 31-Dec-2020 Comments IN00650502 ►IR Indicator 1.4: Planned DPSM capacity building activities are implemented according to annual implementation plan (DLI 4) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650503 ►IR Indicator 1.5: Annual PFM capacity building activities for county governments are completed (DLI 5) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650504 ►IR Indicator 1.5: Planned NT PFM capacity building activities are implemented according to annual implementation plan (DLI 5) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650505 ►IR Indicator 1.6: Kenya School of Government implements annual planned activities to address county capacity gaps (DLI 6) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes 12/11/2018 Page 8 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650506 ►IR Indicator 1.6: Planned KSG capacity building activities are implemented according to the annual implementation plan (DLI 6) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650507 ►IR Indicator 1.7: Inter-Governmental Relations Strengthened (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 13.00 35.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650508 ►IR Indicator 2.1: Strengthened County PFM capacity. Average (for all counties) aggregate deviation between budget and outturn (average across all sectors) reduced by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650509 ►IR Indicator 2.1: Strengthened county PFM capacity. Value of Audit queries as % of total expenditures reduced by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650510 ►IR Indicator 2.1: Strengthened county PFM capacity. Number of counties with 25 steps in the IFMIS procurement process adhered to by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650511 12/11/2018 Page 9 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) ►IR Indicator 2.2: Improved Planning and M&E capacities. Number of CIDPs that adhere to guidelines increased by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650512 ►IR Indicator 2.2: Improved Planning and M&E capacities. Number of Counties producing County Annual Progress Reports on time (September 30) by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650513 ►IR Indicator 2.2: Improved Planning and M&E Capacities. Number of counties where the county M&E Committee (COMEC) meets regularly increased by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650514 ►IR Indicator 2.3: Improved HR and performance management capacity. Number of counties with staff performance appraisal process operationalized increased by: (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650515 ►IR Indicator 2.3: Improved HR and performance management capacity. Number of counties with performance contracts for level 1 (and or 2) increased by: (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 20-Jun-2018 31-Dec-2020 Comments IN00650516 ►IR Indicator 2.4: Strengthened citizen education and public participation at the county level. Number of counties with established and functional civic education units increased by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 5.00 12/11/2018 Page 10 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650517 ►IR Indicator 2.4: Strenghthened citizen education and public participation at the county level. Number of counties with established and functional civic education units increased by (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 5.00 Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650518 ►IR Indicator 2.4: Strenghthened citizen education and public participaton at the county level. Number of counties with evidence of citizen input in plans and budgets increased by (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 5.00 Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650519 ►IR Indicator 2.4: Strengthened citizen education and public participation at the county level. Number of counties with the following documents published online: CIDP, ADP, Annual Budget, Fiscal Strat (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650520 ►IR Indicator 2.5: Improved investement implementation and value-for money. Number of counties that prepare Annual Environmental and Social Audits/reports increased by: (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 6.00 Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments IN00650521 ►IR Indicator 2.5: Improved investment implementation and value-for-money. Number of counties projects with a satisfactory value-for-money levle increased by (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 31-Dec-2020 Comments 12/11/2018 Page 11 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Capacity and Performance Based Grants - County institutional performance IN00650496 ►Capacity and Performance Based Grants - County institutional performance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.60 40.60 60.00 Date 31-Mar-2016 20-Jun-2018 02-Dec-2018 20-Jun-2018 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI 5: National Treasury implements annual planned activities to strengthen countrywide frameworks and systems and to address county capacity gaps (Output, 10.00, 20%) Baseline Actual (Previous) Actual (Current) fiscal year National Treasury Value 0.00 prepared and done 2017-18 implemented the Cap Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments ►DLI 2 DLI 4: MoPSYGA implements annual planned activities to strengthen countrywide frameworks and systems and to address county capacity gaps (Output, 2.50, 0%) Baseline Actual (Previous) Actual (Current) fiscal year MOPSYGA prepared and Value 0.00 implemented the done 2017-18 Capacity buil Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments ►DLI 3 DLI 1: Office of the Auditor General submits audit reports on time and in compliance with ISSAI for all counties that have submitted financial statements in compliance with the PFMA and prevailing acc (Output, 5.00, 0%) Baseline Actual (Previous) Actual (Current) fiscal year Audits for FY2016/1 have Value 0.00 not yet been submitted not on time 2017-18 by OA Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments ►DLI 4 DLI 2: Introduction and timely implementation of Annual Capacity & Performance Assessments by MoDP (Output, 8.10, 0%) 12/11/2018 Page 12 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Baseline Actual (Previous) Actual (Current) fiscal year ACPA report was Value 0.00 finalized and endorsed completed but delayed 2017-18 on February 8, 2018. Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments ►DLI 5 DLI 3: MoDP implements annual planned activities to strengthen countrywide frameworks and systems and to address county capacity gaps (Output, 7.50, 0%) Baseline Actual (Previous) Actual (Current) fiscal year MODP prepared and implemented the Value 0.00 done 2017-18 Capacity building plans for FY2016/17 Date 18-Feb-2016 20-Jun-2018 -- -- However, there are delays in finalization of the capacity building plans. In addition, the process for monitoring Comments the results achieved against the capacity building plans is weak. ►DLI 6 DLI 6: Kenya School of Government implements annual planned activities to address county capacity gaps (Output, 5.00, 0%) Baseline Actual (Previous) Actual (Current) fiscal year KSG prepared and implemented the Value 0.00 done 2017-18 Capacity building plans for Fy2017/18. Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- KSG has implemented activities in its capacity building plan. However, the major challenge lies with lack of Comments resources from KDSP to implement their activities. ►DLI 7 DLI 7: Counties have undergone annual capacity & performance assessment and met access conditions. (Output, 33.00, 0%) Baseline Actual (Previous) Actual (Current) fiscal year All 47 counties were able to comply with Minimum Value 0.00 done 2017-18 Access Conditions for FY2017-18. Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments ►DLI 8 DLI 8: Counties have undergone annual capacity and performance assessment and have met minimum access conditions and minimum performance conditions for grant funding and implemented projects according (Output, 127.00, 0%) Baseline Actual (Previous) Actual (Current) fiscal year 12/11/2018 Page 13 of 14 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) The ACPA report for FY2016-17 was finalized and endorsed by Value 0.00 February 8, 2018. 13 done 2017-18 counties qualified for the first performance grant for physical investments. Date 18-Feb-2016 20-Jun-2018 02-Dec-2018 -- Comments 12/11/2018 Page 14 of 14