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: 7 | ARCHIVED on 19-Jun-2019 | ISR37065 | Created by: Abdu Muwonge on 10-May-2019 | Modified by: Abdu Muwonge on 07-Jun-2019 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 Unsatisfactory Implementation Status and Key Decisions KDSP is two and half years since it became effective in September 2016. The program has turned around in the last one and half years providing significant discretionary resources for capacity enhancements for county governments and national level implementing agencies and infrastructure grants for county governments. Program disbursement stands at USD63 Million as of June 15, 2018, representing 31.5% of the total credit. The Ministry of Devolution (MODA) has submitted a withdrawal application worth USD40 Million to National Treasury for level 2 grants to be disbursed to 22 qualifying counties. Despite the implementation challenges, KDSP has significantly supported the entrenchment of devolution by influencing policy initiatives such as: (i) Establishment of the framework for Conditional Grants. (ii) Discussions on amendments of the CARA to include omitted KDSP resources (as well as other programs) at the time of CARA approval and capturing block allocation for performance grants in the CARA, and; (iii) Systematic approach to implementation of the National Capacity Building Framework (NCBF) contributing to county capacity improvements through (i) direct technical support (ii) peer-to-peer learning (iii) structured learning and (iv) development of guidelines, policies and laws. Despite the achievements, the program is facing challenges that may affect the program development objective. For example, at the national level, delays in fund flow and staffing issues at the program secretariat; and at the county level, non-compliance with program technical, environment, social, and fiduciary procedures; and staffing issues. It is important that GOK implements the agreed actions at MTR to address these implementation challenges. 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) 6/19/2019 Page 1 of 15 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 Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion Annual performance assessment (APA) Measurement 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. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous Completed Systems Completion APA Measurement Comments Interested county governments are sensitized to ACPA and grants and able to meet the program minimum access Action Description conditions Source DLI# Responsibility Timing Timing Value Status Technical Both Recurrent Continuous In Progress Completion APA Measurement Comments Ministry of Public Service/DPSM appoints a focal point/team to coordinate HR action plans, reports, budget Action Description submissions Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress 6/19/2019 Page 2 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Completion Completed reflected in MODA progress report Measurement Comments Action Description Independent ACPA conducted Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion Annual exercise captured in MODA program work plan Measurement Comments Action Description Results of ACPA widely published to promote transparency and increased incentives for performance Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion MODA progress report, The Kenya Gazette Measurement Comments Action Description Office of the Auditor General completes audit reports in time for grant allocations Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion APA Measurement Comments Grant conditions, including adherence to capacity and performance grants Manual, included in County Allocation Action Description Revenue Act-CARA Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion National level verification reports, MODA progress reports, APA Measurement 6/19/2019 Page 3 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) 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. Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion APA, The Kenya Gazette Measurement Comments Program Operating Manual includes system for tracking Program expenditures and outputs (including compliance Action Description with investment menus) Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion MODA progress reports. POM completed Measurement Comments Action Description Audit Committee guidelines to be developed and issued Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion MODA progress reports Measurement Comments Action Description Joint Steering Committee operational, including county governor representative Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion MODA progress reports Measurement Comments 6/19/2019 Page 4 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Action Description Technical Committee operational Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion MODA progress reports Measurement 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 Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion National level verification reports Measurement 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 Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion National level verification reports Measurement Comments Action Description KSG appoints a focal point/team to coordinate KSG action plans, reports, budget submissions Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion National level verification reports Measurement Comments 6/19/2019 Page 5 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Chapter with methodology and ToR for value-for-money audits added to C&P Assessment Manual, compliant with Action Description PFMA requirements Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous Not Yet Due Completion APA Measurement Comments Action Description Sensitization of counties includes training of technical staff responsible for environmental and social management. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion APA Measurement 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) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Regular training undertaken by MODA reported in the MODA progress report Measurement Comments Implementing agencies to develop risk management registers. KDSP Secretariat to develop and periodically update Action Description risk management registers Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion APA Measurement Comments 6/19/2019 Page 6 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Action Description Sensitization and awareness campaigns on corruption reporting mechanisms Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems client Recurrent Continuous In Progress Completion APA Measurement Comments 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 IN00702497 ►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 06-Jun-2019 31-Dec-2020 6/19/2019 Page 7 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Comments PDO Indicator 2: MC-Number of counties which comply with the minimum performance conditions (DLI 8) IN00702498 ►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 03-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702499 ►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 03-Dec-2018 07-Jun-2019 31-Dec-2020 Comments IN00702500 ►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 03-Dec-2018 07-Jun-2019 31-Dec-2020 Comments Intermediate Results Indicators by Results Areas Building county-wide institutional capacity for devolution IN00702502 ►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 03-Dec-2018 07-Jun-2019 31-Dec-2020 Comments IN00702503 ►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 6/19/2019 Page 8 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Value No No No Yes Date 18-Feb-2016 03-Dec-2018 07-Jun-2019 31-Dec-2020 Comments IN00702504 ►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 07-Jun-2019 31-Dec-2020 Comments IN00702505 ►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 03-Dec-2018 07-Jun-2019 31-Dec-2020 Comments IN00702506 ►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 03-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702507 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702508 ►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 06-Jun-2019 31-Dec-2020 Comments 6/19/2019 Page 9 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) IN00702509 ►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 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702510 ►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 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702511 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702512 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702513 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702514 ►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 6/19/2019 Page 10 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Value 0.00 0.00 0.00 5.00 Date 18-Feb-2016 20-Jun-2018 06-Jun-2019 31-Dec-2020 Comments IN00702515 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702516 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702517 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702518 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702519 ►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 06-Jun-2019 31-Dec-2020 Comments 6/19/2019 Page 11 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) IN00702520 ►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 06-Jun-2019 31-Dec-2020 Comments IN00702521 ►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 5.00 5.00 5.00 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702522 ►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 5.00 5.00 5.00 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702523 ►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 5.00 5.00 5.00 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702524 ►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 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702525 ►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 6/19/2019 Page 12 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Value 0.00 6.00 6.00 6.00 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments IN00702526 ►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 02-Dec-2018 06-Jun-2019 31-Dec-2020 Comments Capacity and Performance Based Grants - County institutional performance IN00702501 ►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 02-Dec-2018 06-Jun-2019 31-Dec-2020 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 Value 0.00 done done 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- 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 Value 0.00 done done 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- Comments 6/19/2019 Page 13 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) ►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 Value 0.00 not on time not on time 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- Comments ►DLI 4 DLI 2: Introduction and timely implementation of Annual Capacity & Performance Assessments by MoDP (Output, 8.10, 0%) Baseline Actual (Previous) Actual (Current) fiscal year Value 0.00 completed but delayed completed but delayed 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- 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 Value 0.00 done done 2018-19 Date 18-Feb-2016 -- 06-Jun-2019 -- 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 Value 0.00 done done 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- 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 Value 0.00 done done 2018-19 6/19/2019 Page 14 of 15 The World Bank Implementation Status & Results Report Kenya Devolution Support Project (P149129) Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- 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 Value 0.00 done done 2018-19 Date 18-Feb-2016 02-Dec-2018 06-Jun-2019 -- Comments 6/19/2019 Page 15 of 15