1. home and garden

THE REPUBLIC OF KENYA
MINISTRY OF HOUSING
Kenya Informal Settlements
Improvement Programme (KISIP)
Operations Manual
Version 1.0
29th June 2011
Table of Contents
FOREWORD........................................................................................................................................... V
1.
PURPOSE ........................................................................................................................................1
2.
INTRODUCTION .............................................................................................................................2
3.
INSTITUTIONAL ARRANGEMENTS ................................................................................................6
4.
ELIGIBLE MUNICIPALITIES AND SETTLEMENTS ........................................................................ 13
5.
COMPONENTS ............................................................................................................................ 18
6.
SUPPORTING AREAS ................................................................................................................... 28
7.
MOH AND MOL COMMITMENTS .............................................................................................. 47
8.
PROGRAMME IMPLEMENTATION PLAN ................................................................................... 49
Annexes:
Annex 1
Municipal Council Resolution format
Annex 2
List of all informal settlements and slums in the 15 municipalities
Annex 3
List of selected A and B settlements (to be revised regularly)
Annex 4
Templates for Procurement Plan (Consultants, Goods and Works) for municipalities
Annex 5
Procurement Tracking System (PROCYS)
Annex 6
Municipal Agreement and Subsidiary Agreement format
Annex 7
Interim Financial Report (IFR) format
i
Annex 8
ToR for Audit of KISIP
Annex 9
List of KISIP Team and general responsibilities
Annex 10
KISIP Procurement Plan (to be revised regularly)
Annex 11
KISIP Results Framework and Monitoring
Annex 12
SEC Formation Guidelines
ii
List of Abbreviations
AFD
Agence Française de Développement
ALGAK
Association of Local Government Authorities of Kenya
AMPR
Annual Municipal Performance Review
CBK
Central Bank of Kenya
CTAT
Central Technical Assistance Team
DP
Development Partners - the external funding agencies participating in the
KISIP (AFD, the World Bank and Sida, but could be extended to other partners
in the future)
EIA
Environmental Impact Assessment
EMP
Environmental Management Plan
ESMF
Environmental and Social Management Framework
GIS
Geographic Information System
GoK
Government of Kenya
IFMIS
Integrated Financial Management Information System
IFR
Interim Financial Reporting
KMP
Kenya Municipal Programme
KENAO
Kenya National Audit Office
KISIP
Kenya Informal Settlements Improvement Programme
KISIP Team
KISIP Coordination Team based at MoH (with MoH and MoL staff)
LGRP
Kenya Local Government Reform Programme
LA
Local Authority
LAIFOMS
Local Authority Integrated Financial Operations Management System
LATF
Local Authorities Transfer Fund
MCT
Municipal Coordination Team
iii
MoF
Office of the Deputy Prime Minister and Minister of Finance
MoH
Ministry of Housing
MoL
Ministry of Lands
MoLG
Office of the Deputy Prime Minister and Ministry of Local Government
MoNMD
Ministry of Nairobi Metropolitan Development
MoPND
Ministry of Planning, National Development and Vision 2030
MTAP
Municipal TA Pool
Municipality/
Municipal
Unless context states otherwise refers to a Municipal or City Council
NGO
Non Governmental Organisation
NMSP
Nairobi Metropolitan Services Programme
PC
Programme Coordinator
PCT
Programme Coordination Team (called KISIP Team)
PROCYS
Procurement Tracking System
PS
Permanent Secretary
RPF
Resettlement Policy Framework
SIA
Social Impact Assessment
Sida
Swedish International Development Cooperation Agency
TA
Technical Assistance
ToR
Terms of Reference
WaSSIP
Water Supply and Sanitation Improvement Programme (WB funded)
iv
Foreword
Kenya, like most African countries, has experienced rapid urbanisation over the past 50 years. The
urban areas in the country have over the years suffered from poor planning, which partly explains the
proliferation of informal settlements with poor housing and little or no infrastructure services. While an
estimated 32 per cent of Kenya’s population (12.5 million people) resided in urban areas by 2009, by
2030 the proportion of the Kenyan population living in urban areas is estimated to reach 54 per cent (or
23.6 million people). Rapid urbanisation will henceforth be guided by a planned programme in
urbanisation that is consistent with the path of economic and social investments anticipated by Kenya
Vision 2030. It is expected that with the right urban planning strategy, it will be possible to change the
lives of millions of Kenyans for the better.
The Government has requested support from development partners to facilitate systematic scale-up of
slum upgrading, one that can reach all slums in the medium to long term. In response, the World Bank,
the Swedish International Development Cooperation Agency (Sida) and the Agence Française de
Développement (AFD) have been working with the Government to jointly design and co-finance the
Kenya Informal Settlements Improvement Programme (KISIP). KISIP will focus on improving living
conditions in existing informal settlements by investing in infrastructure and strengthening tenure
security. It will also support the Government in planning for future urban growth in a manner that
prevents emergence of new slums.
The proposed KISIP will contribute to the goals of Kenya Vision 2030. The 2030 goal for urban areas is to
achieve “a well-housed population living in an environmentally-secure urban environment.” This will be
achieved by bringing basic infrastructure and services — roads, street lighting, water and sanitation
facilities, storm water drainage, footpaths and others — to informal settlements. By strengthening
tenure security in informal settlements, KISIP will also foster private investment in housing and in
businesses.
On behalf of Ministry of Housing, we assure that we will give all the necessary support to the KISIP Team
so that it can play its role as set out in this Operations Manual. As you all know, the purpose of the
Operations Manual is to provide guidance to the KISIP team both at the Ministry level and at the
Municipal level in ensuring that a common approach is adopted by all during the implementation of the
Kenya Informal Settlements Improvement Programme.
We would like to thank the World Bank, the Agence Française de Développement, and the Swedish
International Development Cooperation Agency for supporting us in the development of KISIP. We hope
that our joint performance on this programme will encourage other development partners to join the
next phase so to make even a bigger impact in all our urban centres.
Tirop Kosgey
Permanent Secretary
Ministry of Housing
v
1. Purpose
The purpose of the Operations Manual is to provide guidance to the implementers of the Programme to
ensure that a consistent understanding is shared and a consistent approach adopted by all managers at
national and municipal levels. The Manual operationalises the Project Appraisal Document1 and the
Financing Agreement for the Kenya Informal Settlements Improvement Programme (KISIP).
The Operations Manual is being developed by and for KISIP officers at Ministry of Housing, Ministry of
Lands and the participating municipalities. It provides guidance for KISIP management, especially in
respect of:
•
•
•
•
the objectives and components
the institutional structure for the management and implementation
the resources available
the procurement, financial management, environmental and social management and reporting
procedures required to be followed
The text of the manual will refer the reader to existing guidance in areas such as procurement, finance,
Environmental and Social Management Framework etc, which are attached as annexes.
The Operations Manual is a living document which will be amended and updated from time to time, to
reflect changing circumstances and experiences gained during implementation of the Programme.
1
Project Appraisal Document (PAD), World Bank, 24 February 2011
1
2. Introduction
This chapter briefly outlines KISIP and what it entails in terms of activities. The background, objectives,
components and cross-cutting areas of KISIP will be described in a few words as an introduction to the
whole Operations Manual.
The Operations Manual will, after this introductory chapter, start with the institutional and
implementation arrangements that will be covered in Chapter 3. Chapter 4 will deal with the selection
criteria for participating municipalities and settlements. Chapter 5 and 6 presents the different KISIP
components and the accompanying cross-cutting areas. Chapter 7 specifies the commitments made by
Ministry of Housing and Ministry of Lands towards the KISIP. Finally, Chapter 8 presents the Programme
Implementation Plan for the five year Programme.
2.1 Background
KISIP has been developed by the Government of Kenya (GoK) in cooperation with the World Bank, the
Agence Française de Développement, and the Swedish International Development Cooperation Agency.
It is envisaged as the second in a series of programmes that will support GoK in the urban and local
Government sector. Two other programmes are also being developed in the sector, namely:
•
•
The Kenya Municipal Programme (KMP), which will address institutional constraints —
municipal capacity, finance and reforms – and, simultaneously, support investments to improve
infrastructure and local service delivery
The Nairobi Metropolitan Services Programme (NMSP), which will provide support for
strengthening of newly created metropolitan institutions and improved service delivery in the
Nairobi metro area
KISIP will focus on informal and slum settlements that will not be reached by KMP, and it will improve
the living conditions in these areas through tenure regularisation and infrastructure investment, while at
the same time ensure that the growth of new informal areas is curbed. KISIP is housed and spearheaded
by Ministry of Housing and will be implemented through participating municipalities and in close
partnership with the Ministry of Lands.
The primary beneficiaries of the KISIP are the residents of the participating informal settlements and
slums. They will benefit from regularised or strengthened security of tenure, which, in turn will give
them confidence to invest in their homes and in their neighbourhoods. They will also benefit from
increased access to infrastructure and services, including access roads, street lighting (which improves
security), water and sanitation services, and solid waste collection.
2
A basic idea behind KISIP is that the improvement in tenure and infrastructure for the residents should
not be piecemeal interventions in various poor urban settlements, but should be large scale and cover a
majority of the urban poor areas in the selected municipalities. The services to be provided will be basic
and will constitute a minimum level from where continued development can carry on, by the residents
themselves. By investing in basic infrastructure in large areas of the informal parts of Kenya’s town and
cities, the usual gentrification that takes place during smaller slum upgrading interventions can be
avoided or at least mitigated.
An important part of KISIP is that it will lay the foundation not only in terms of tenure security and
infrastructure, but also in terms of institutional settings and capacity built at different levels of society,
including community level.
KISIP is jointly prepared and financed by AFD, Sida, and the World Bank. In terms of financing, AFD
intends to contribute the equivalent in USD of 30M€ as a concessional loan, Sida is expected to
contribute US$10 million as a grant, and IDA will contribute US$100 million as a Specific Investment
Loan. GoK will contribute 10 percent of the IDA allocation, i.e. US$ 10 million towards programme costs.
2.2 Objective
The overall project development objective of the KISIP is to “improve living conditions in informal
settlements in selected municipalities in Kenya”2.
The Operations Manual uses both the terms “informal settlements” and “slums”, referring to areas that
lack at least two of the following: secure tenure, adequate infrastructure, planning at the settlement
level, and quality housing.
However, in order to describe the content of the programme, it is sometimes necessary to distinguish
between the two terms. “Informal settlements” more specifically refer to unplanned areas with insecure
tenure conditions inhabited by poor people without adequate basic infrastructure. “Slums” refer to poor
areas which lack basic infrastructure, but are surveyed and planned.
Thus KISIP intends to reach both types of areas. In areas lacking tenure security, it will first help to
strengthen tenure security and then invest in infrastructure. Before any interventions take place, the
community will be consulted and an agreement will be reached about what types of interventions will
take place. The community will also commit itself to participate in the whole process from planning over
implementation to operation and maintenance. The long-term objective for KISIP is to reach a majority
of the informal settlements and slums in Kenya with at least basic infrastructure and improvements in
the tenure situation. KISIP will establish a national framework for systematic improvement and
investments in poor settlements, which will continue to operate also after the programme has ended.
2
Project Appraisal Document (PAD), World Bank, 20 January 2011
3
In addition to supporting improvements in existing informal settlements, the KISIP will support the
Ministry of Housing, Ministry of Lands and Local Authorities in planning to accommodate future demand
for housing and environmentally healthy neighbourhoods as cities expand. KISIP also aims at
strengthening institutions, i.e. MoH, MoL and participating municipalities.
2.3 Participating Municipalities
In chapter 4, the selection criteria for both municipalities and settlements is discussed, but suffice to list
at this point the 15 municipalities that have been selected to participate in KMP and KISIP after having
had expressed their willingness to do so:
1.
2.
3.
4.
5.
Eldoret
Embu
Garissa
Kakamega
Kericho
6.
7.
8.
9.
10.
Kisumu
Kitui
Machakos
Malindi
Mombasa
11.
12.
13.
14.
15.
Nairobi
Naivasha
Nakuru
Nyeri
Thika
2.4 Components and Supporting Areas
KISIP comprises four thematic components and five areas for supporting/cross-cutting issues. The four
components, which will finance also the five cross-cutting areas, are as follows (see further in Section 5):
•
•
•
•
Component 1: Strengthening institutions and programme management (Section 5.1)
Component 2: Enhancing tenure security (Section 5.2)
Component 3: Investing in infrastructure and service delivery (Section 5.3)
Component 4: Planning for urban growth (Section 5.4)
Component 1: Strengthening institutions and programme management (estimated US$17 million; IDA
US$10 million). This component will support institutional strengthening and systematic capacity building
of the MoH, the MoL and the participating municipalities, as well as development of policies,
frameworks, systems, and guidelines for slum upgrading. The component will also include an
institutional analysis of the Ministry of Housing to clarify the roles and responsibilities of the ministry
under the new constitution; and the development of municipal-level housing strategies to serve as input
into the broader city strategic plans being developed under the KMP. It will finance community
mobilisation and formation of Settlement Executive Committees (SEC), as well as all management
activities associated with programme implementation, including monitoring and evaluation.
Component 2: Enhancing tenure security (estimated US$13 million, IDA US$8 million). This component
will directly support implementation of the new national land policy in urban informal settlements
through refinement, systematic scale-up of ongoing efforts to strengthen tenure security in urban
4
informal settlements. Activities will involve, amongst others, establishment of a database on land tenure
status of slums; establishment of laboratories for Geographical Information Systems (GIS); mapping of
informal settlements; acceleration of surveying and registration of titles to individuals or groups.
Component 3: Investing in infrastructure and service delivery (estimated US$129 million; IDA US$70.3
million). This component will support the implementation of settlement upgrading plans that have been
developed at the community level. Infrastructure investment that is eligible under KISIP includes the
following: roads, bicycle paths, pedestrian walkways, street and security lighting, vending platforms,
solid waste management, storm water drainage, water and sanitation systems, electrification, public
parks and green spaces.
Component 4: Planning for urban growth: (estimated US$6 million; IDA US$4 million). This component
will support planning and development of options that facilitate delivery of infrastructure services, land
and housing for future population growth. The objective is to provide an alternative to the current
practice of informally establishing settlements on any open land. This component will be flexible in
identifying and leveraging opportunities and will support both policy-related work to curb the growth of
informal settlements, and practical interventions such as planning and identification of land and publicprivate partnership to deliver land and housing.
In addition to the four components, four supporting areas (see Section 6), which are cross-cutting and
needed by all four Components, are defined as3:
•
•
•
•
Monitoring and Evaluation (Section 6.1)
Procurement (Section 6.2)
Finance (Section 6.3)
Environment, Social and Community development (Section 6.4)
3
Please note that the activities under the supporting areas will be financed by the four components. The majority of
the supporting activities will fall under Component 1, Institutional Strengthening.
5
3. Institutional Arrangements
In KISIP, activities will be implemented at the most decentralised level while still ensuring efficiency, and
there will be a special emphasis on facilitating implementation by municipalities themselves. The GoK
through MoH is however the highest responsible agency for ensuring that the implementation of KISIP is
undertaken as planned. MoH is collaborating closely with MoL as several of the Programme activities are
directly linked to the mandate of MoL. The primary implementers of the programme remain the 15
selected municipalities.
A basic guiding principle for KISIP implementation is that the ministerial, municipal, and settlement
structures and systems for implementation should be adhered to whenever possible.
Institutional and implementation arrangements for KISIP are designed on the basis of the need to:
•
•
•
•
•
Engender close collaboration between the institutions responsible for KISIP implementation;
Facilitate decentralised delivery of the Programme as a basis for promoting ownership and
accountability;
Promote mainstreaming of the KISIP within the current GoK structures and programmes;
Provide a link between KISIP and development partners; and
Promote GoK leadership as a basis for ensuring programme sustainability
3.1 Executing and Implementing Agencies
The Recipient of the grant and loan for KISIP is the Ministry of Housing on behalf of the Government of
the Republic of Kenya. The Office of the Deputy Prime Minister and Ministry of Finance (MoF) will be
responsible for ensuring that project resources are budgeted for and released. The Office of the Auditor
General will be responsible for auditing of project accounts.
The MoH is the executing agency but will work closely with the MoL in implementing the programme.
The Permanent Secretary (PS) of MoH, in collaboration with the PS of MoL, has formed a programme
coordination team, the KISIP Team, with staff from both MoH and MoL. The KISIP Team is responsible
for programme design, overall programme coordination (including liaising with senior Government
officials and the Development Partners’ team), financial management, procurement, monitoring and
evaluation (M&E), and reporting. The KISIP Team is also responsible for managing KISIP’s learning and
communications activities.
The KISIP Coordinator, whose position shall not be below head of department in the Ministry, is officer
in charge of the Team and of the overall coordination of programme activities. The Coordinator reports
directly to the PS of MoH.
6
The participating municipalities are responsible for implementing many KISIP-financed activities, with
their responsibilities increasing in line with their capacity. Municipalities will appoint their Municipal
Coordination Teams (MCTs), which will have day-to-day responsibility for implementing the agreed
activities and for M&E at settlement level. The MCTs will in most municipalities be shared between the
KMP and KISIP4. See diagram on page 9 for an overview of the linkage between the municipalities and
MoH and MoLG.
3.2 Roles and Responsibilities within Ministry of Housing
As the borrower/recipient for KISIP, Ministry of Housing (MoH) is responsible for the negotiations and
signing of the credit/financing agreements and any amendments to the Programme’s legal agreements.
MoH will interface with other sector ministries such as the Ministry of Local Government (for KMP), the
Ministry of Lands, and other ministries on matters and policies relating to slum upgrading and
prevention. It will also interface with Ministry of Finance (MoF) on issues such as sector budgets,
ensuring that the KISIP budget is included in the national budget, and amendments to legal agreements.
PS MoH will provide strategic policy oversight and guidance. He will also be the main mediator between
the Development Partners and the Government. The dedicated programme coordination team, the
KISIP Team, is responsible for the implementation of KISIP and ensures that programme implementation
activities and reports are on schedule and in compliance with the financing agreement. The KISIP Team,
led by the KISIP Coordinator, will report directly to the PS and will from time to time draw the attention
of the PS to emerging policy issues for decision at a higher level. The KISIP Coordinator is responsible for
all official communications to the Development Partners on technical matters.
The KISIP Team is hosted by the Slum Upgrading Department of the MoH; the Department where the
Kenya Slum Upgrading Programme (KENSUP) is already located. The implementing department for
Components 1, 3 and 4 is the Slum Upgrading Department of the MoH whereas Component 2 will be
implemented by Ministry of Lands who will also support Component 4. Apart from the four
Components, the KISIP Team also includes officers in M&E, financial management, procurement,
environmental management, social and community development.
The Component Heads come from both the MoH and MoL and will have the authority to draw on staff
from the relevant department in both ministries, as needed. The Component Heads will report to the
KISIP Coordinator and work in collaboration with staff in the other departments of the two ministries,
and with the 15 municipalities.
The key personnel of the KISIP have participated fully in the preparatory work resulting in the actual
Programme.
4
Larger LAs, such as Nairobi City Council and Mombasa Municipal Council, may need to establish two MCTs; one
for KMP and one for KISIP, as the implementation volume for each of the programmes is substantial.
7
In order to guarantee the allocation of sufficient staff time for the Programme, KISIP activities are
included in the annual performance contracts for the KISIP staff from MoH starting from 1 July 2010. For
the KISIP staff from MoL the performance contracts reflect the KISIP work load from 1 January 2011.
The KISIP Team meets weekly, chaired by the Programme Coordinator, to:
•
Review progress and plan KISIP activities
•
Review and approve budgets and procurement plans
•
Discuss ToRs and tender issues for consultancies, services, goods and works
•
Update selection lists for municipalities and settlements
•
In accordance with the selection criteria, review and approve requests received from
municipalities for funding of activities under KISIP ensuring that they are also compliant with
annual work and procurement plans, consistent with current progress, and fundable from
available funds in the KISIP bank accounts
•
Review quarterly reports from Municipalities
•
Review financial and Programme audit reports, and monitor progress implementation
In addition to in-house staff, KISIP will recruit a Central Technical Assistance Team (CTAT) with general
programme management skills (e.g. procurement, financial management, M&E, gender and
environmental mainstreaming), as well as technical specialist TAs (e.g. slum upgrading, mapping,
surveying and planning) to support the KISIP Team in their work.
Until CTAT is on board, Sida is funding a small TA team, which has been supporting KISIP since March
2010; originally in the preparation phase and now during implementation. Other experts will be taken
on board before CTAT is operational, e.g. a procurement expert and a financial management expert.
The CTAT and all other consultants shall report to the relevant KISIP Head of Component or when
appropriate to the KISIP Coordinator.
Independent consulting engineers – who will be responsible for e.g. feasibility studies, design, following
up on implementation of construction contracts and to certify construction quality – will be contracted
prior to the start of works, and will work in consultation with respective local authorities and KISIP
Component Heads.
8
9
3.3 Roles and Responsibilities within Participating
Municipalities
Both KMP and KISP are urban programmes designed to be implemented by the municipalities on local
level. The fact that they are going to be implemented at the same time requires that their
implementation is seen as one large programme for the municipality. To minimise confusion,
competition and conflicts it is proposed that to the extent possible the same team in the municipality is
responsible for managing both KMP and KISIP implementation at local level.
Each Municipality will appoint a KMP/KISIP Municipal Coordinator who will be responsible for the day
to day implementation of the KMP and KISIP activities, with the support of a Municipal Coordination
Team (MCT) comprising Component Heads drawn from the departments managing the KMP and KISIP
components, and other areas of expertise such as procurement, M & E and community development.
The MCT will be responsible for mainstreaming the KISIP activities into the Council programming and
budgeting systems and for the briefing of the council management team and the councillors.
Consultants will be recruited for both KMP and KISIP to deliver hands-on and tailored support to
participating municipalities, the so-called Municipal Technical Assistance Pools (MTAP). For KISIP, each
team (shared between a number of municipalities) will each include experts with approximately the
following skills:
Engineer, who will be experienced in municipal engineering skills and will also provide front line support
to the municipalities on supervision of the KISIP infrastructure investment projects. (Component 3)
Urban Development Expert/ Physical Planner who will assist the municipalities with planning at
settlement level and support the municipalities with the reconciliation between planning at national,
municipal/county and community levels. (Component 2)
Institutional Development Expert who will strengthen the municipalities in their role in KISIP regarding
e.g. organisation for community mobilisation, management of council housing and vacant land and new
methods for enhancement of tenure security. (Component 1 and 4)
Land Survey Expert who will provide advisory services and support in strengthening land surveying and
digital topographical mapping capacities. He/she will provide advice in the best practices in land
administration and development of GIS based land information management required for the
implementations of KMP and KISIP in line with National Land Information Management Systems
(NLIMS). The Land Survey Expert should advice municipalities on strengthening capacity and
development of GIS based informal settlement databases. (Component 2)
The MTAPs will also provide support to financial management, procurement, environmental and social
safeguards and Monitoring and Evaluation in the municipalities.
10
3.4 KMP/KISIP Joint Steering Committee
While the management of KISIP will be undertaken by MoH and to some degree by MoL there will be an
institutional oversight framework in close consultation with KMP. The twin programmes will use the
same Steering Committee, which will provide a mechanism for high level consultation on the KMP and
KISIP management, lessons sharing across Government, and dissemination of achievements. The
Steering Committee will be co-chaired by PS of MoLG and PS of MoH on a rolling schedule and will, apart
from representatives for these two ministries, also include representatives from:
•
•
•
•
•
•
•
Ministry of Lands (MoL)
Ministry of Finance (MoF)
Ministry of Nairobi Metropolitan Development (MoNMD)
Ministry of Planning, National Development and Vision 2030 (MoPND)
Ministry of Environment (MoE)
Ministry of Roads (MoR)
Representatives from three of the participating municipalities
The Programme Coordinators from KMP and KISIP will provide the Secretariat. Other members can be
co-opted to the Steering Committee as need arises. The contributing development partners may attend
meetings as observers, a right which the civil society5 also has. The Steering Committee meets quarterly
and carries the following responsibilities:
•
•
•
•
•
•
Oversee and coordinate programme activities of KMP and KISIP
Receive and make recommendations on reports from the KMP and KISIP Teams
Receive and approve annual work plans and budgets from the KMP and KISIP Teams
Receive and make recommendations on internal and external audit reports
Receive and make recommendations on any changes proposed in the Programme
procedures or regulations
Ensure that KMP and KISIP processes are in line with the new Constitution, and with
current and coming Government policies such as the National Land Policy, the National
Urban Development Policy and the Vision 2030
3.5 Networking and communication
Networking addresses the often vital role of engaging, informing and managing stakeholders in a
programme process. It seeks to ensure that key stakeholders and their interests are identified and
strategies are developed to engage them.
5
Possibly the civil society will be represented by the Civil Society Urban Development Programme (CSUDP)
11
Stakeholders must be consulted in order to ensure the effective planning and delivery of KISIP.
Apart from the Government bodies other stakeholders involve, among others, civil society, the
private sector, universities and institutions, the donor community, the media and the public at
large.
The purpose of communicating with stakeholders can vary depending on the stage of the process
and on the type of stakeholders involved. Reasons for involving stakeholders could be to build
rapport, spread information, convey intentions, get co-financing or support with other resources,
ask for feedback/input, build ownership, build credibility, understand another perspective or to
seek buy-in.
For KISIP, five main groups of stakeholders who will need special attention have been identified. These
five stakeholder groups will need separate communication and cooperation strategies, which will be
developed over the course of the KISIP implementation:
1. Communities (including local NGOs and CBOs) – for cooperation in settlement project
implementation. KISIP will start to work with this group through the Sida supported Civil Society
Urban Development Programme (CSUDP), which brings together several major urban NGOs and
which has good grassroots contacts in all 15 participating municipalities. CSUDP will assist KISIP
in contacts for consultations and will also mentor local level partners in areas such as
enumeration skills, community contracts, operation and maintenance and local monitoring and
evaluation.
2. Private sector (both local firms and national) – for partnership in settlement project
implementation
3. The public in general and media – to ensure the public have correct information about KISIP
and to strengthen the accountability of the Programme
4. The donor community (bilateral and multilateral donors and International Financial Institutions)
– for bringing in invaluable international best practise experience and possibly additional
funding
5. The Public Service (other Government ministries such as water and roads; quasi Government or
parastatal enterprises such as Kenya Power and Lighting Company (KPLC); water boards,
Universities, etc.) – for information and possible cooperation
KISIP will also to the degree possible cooperate with other major infrastructure interventions ongoing in
Kenyan slums, such as:
•
•
•
The Water and Sanitation Improvement Project (WaSSIP) – a World Bank supported programme
that will invest in water and sanitation improvements in the informal settlements of Nairobi
(US$5 million), Mombasa (US$2 million), and Malindi (US$1 million). Settlements benefiting
from WaSSIP that also meet the KISIP criteria will be given priority for investments under KISIP.
AFD supported water projects in Kisumu, Nairobi and Mombasa
The Electricity Expansion Project – supported by the World Bank, with a provision for electricity
connection to slum areas.
12
4. Eligible Municipalities and
Settlements
4.1 Municipalities Criteria and Selection
Municipalities that receive KISIP funds to undertake municipal projects will enter into a Municipal
Agreement with the MoH, consistent with the Municipal Agreement format in Annex 6. Project
expenditure incurred by each Municipality will be eligible for financing only after the date of execution
of the respective Municipal Agreement.
Participation in the KISIP is voluntary and municipalities may opt not to take part, in which case another
municipality will be offered the opportunity. Those that are eligible and choose to participate must,
however, meet certain criteria to access funds under the programme as discussed below. The first entry
condition for KISIP is that the municipality must have qualified for KMP and chosen to participate in
KMP. All municipalities participating in KMP will be eligible to access funding from KISIP. However, given
that the scale and nature of the issues relating to informal settlements varies significantly among
municipalities, a given municipality may opt to participate only in a selected component of the KISIP.
Under KMP, municipalities were selected using the following selection criteria:
•
All provincial capitals (Nairobi and seven Municipal Councils)
•
Municipal Councils that have LAIFOMS and a population larger than 75,000 in the 1999
census
•
The municipalities that met these criteria were ranked by their 2007-2008 financial
performance
Using the above criteria, a list of 15 municipalities has been agreed, as follows and overleaf:
1.
2.
3.
4.
5.
Eldoret
Embu
Garissa
Kakamega
Kericho
6.
7.
8.
9.
10.
Kisumu
Kitui
Machakos
Malindi
Mombasa
13
11.
12.
13.
14.
15.
Nairobi
Naivasha
Nakuru
Nyeri
Thika
Naivasha
14
These 15 municipalities are eligible to participate in KISIP and have all expressed willingness to do so,
but participation and access to resources is conditional on them meeting certain access criteria, or basic
entry conditions:
Core municipal staff in place. Both KMP and KISIP require certain municipal staff to be in place for
implementation. Under the KMP, it has been agreed that the following staff are required for
municipalities to function in general and also to be able to participate effectively in the two
programmes: town clerk, treasurer, engineer, planner, internal auditor, procurement officer,
environment officer, social development officer, surveyor, human resources officer, and a monitoring
and evaluation officer. In many municipalities some of these key positions are currently vacant or
staffed with under-qualified personnel. The responsibility for filling these positions lies with the Ministry
of Local Government (MoLG) and the process is underway.
Municipality’s KMP and KISIP coordinator and team are in place. To participate, a municipality must
identify and assign a core team, the Municipal Coordination Team (MCT), see Chapter 3. It is expected
that in most municipalities KMP and KISIP will share a municipal-level programme coordinator and
several core team members (for example, procurement, financial management, safeguards and
monitoring and evaluation officers). However, the KISIP will require some additional dedicated staff such
as community development specialists and Ministry of Lands (MoL) staff to work on tenure
regularisation.
Municipal council resolution (see format in Annex 1). Participation in KISIP is voluntary and requires
serious commitment from municipalities to improve informal settlements in their jurisdiction. It was
agreed that, as a first step, municipalities will pass council resolutions confirming their intention to
participate and to adopt approaches supported under the KISIP.
Municipal performance will determine level of access to finance and number of settlements that are
upgraded under KISIP. Settlements will be selected on a rolling basis for tenure enhancement,
infrastructure investment and upgrading. Selection will be made on the basis of specific criteria,
presented in the section below. The number of targeted settlements and the overall investment in each
municipality will depend on implementation progress in the preceding year, and will also be influenced
by its ratings in the Annual Municipal Performance Review conducted under the KMP.
4.2 Subsidiary Agreement with other bodies
Water services boards and other Government bodies that receive KISIP funds to undertake eligible
activities (subprojects) will enter into Subsidiary Agreements with the MoH with the following conditions
(see Subsidiary Agreement format in Annex 6 for details):
•
carry out its subproject with due diligence and efficiency and in conformity with appropriate
administrative, technical, financial, economic, environmental and social standards and practices
15
•
•
•
•
•
procure all works, goods and services required for its subproject in accordance with the
Agreement and ensure that all such works, goods and services are used exclusively for the
purposes of the subproject
Maintain records adequate to log the progress of its subproject and furnish such records and
information as may be requested by MoH
Maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing
basis, in accordance with indicators acceptable to the MoH; prepare periodic reports; and
prepare a final report
Maintain a financial management system and prepare financial statements in accordance with
consistently applied accounting standards acceptable to the MoH; avail the records pertaining
to the subproject to external and internal auditors
Open and maintain a dedicated Project Account and ensure that the funds deposited into the
Project Account shall be used exclusively to finance the cost of expenditures related to the
subprojects.
4.3 Settlements Criteria and Selection
For the settlements to be selected for investment in infrastructure and/or tenure regularisation (see
further for programme activities under Section 5), they have to fulfil a number of criteria. For the first
phase investments (starting year 1), the focus for selection will be on readiness and availability of
information, since there is need for a quick start for KISIP. During the subsequent years, the criteria will
be amended so that higher score will be given according to the need of the settlement (poverty level,
infrastructure inadequacy etc.). The settlements criteria are the following:
•
Land tenure status: a settlement should be located on land that is owned by the Government or
on land with clear ownership status (criteria for Components 3 and 4; not for Component 2)
•
Location: a settlement should not be located on a hazardous site or in an environmentally
fragile area.
•
Scale of potential displacement of residents: upgrading of the settlement should not entail
large-scale displacement (and, thereby, relocation) of residents.
•
Settlement size and density: larger and denser settlements will receive priority to ensure that
as many people as possible benefit from the project.
•
Proximity to trunk infrastructure: to maximise settlement coverage within a limited budget and
to ensure that participating settlements receive connections to citywide infrastructure networks
and maintenance systems, in the initial years of project implementation the settlements that
are in close proximity to core trunk infrastructure (such as roads and trunk lines for water,
sewage or electricity) will receive priority. This criterion may be omitted in special cases for
Component 4.
•
Community readiness to participate. Participation by a community is voluntary, and will depend
on its willingness to follow a participatory process to identify priority activities. To qualify
16
communities will have to (a) mobilise and form settlement executive committees, and (b)
approve a community resolution. Once a settlement has been identified as eligible using the
other criteria, community leaders will be consulted regarding the interest of the community in
participating. The community will then need to appoint a settlement executive committee (SEC)
that will lead the participation of the community in developing a vision for the settlement and
preparing settlement upgrading plans to realise the vision. To ensure that the plans and
investments enjoy the support of the majority of community members, the SEC will need to
submit a community resolution to the Ministry of Housing before implementation of
settlement-level infrastructure and/or tenure formalisation can start. Thus, even if a settlement
meets all technical criteria and its residents are in advanced stages of planning and design,
construction will not proceed unless the SEC approves the final design and implementation plan
Settlements for phase 1 investment for Component 3, infrastructure, will be scored on level of
preparation and readiness for implementation in order to ensure that the KISIP implementation can
start smoothly, according to the following:
a) Land tenure. Informal settlements where land regularisation initiatives are already underway or
have been completed in the recent past will be accorded a higher score for readiness.
b) Planning and readiness for infrastructure investment. Higher scores for readiness will be given
to settlements that already have:
i.
A Part Development Plan (PDP) either approved by the MoL or in advanced stages of
preparation and approval
ii.
A base map — including those prepared with support from development agencies and
nongovernmental organisations (NGOs) — that can facilitate planning and infrastructure
investment
iii.
Some ongoing infrastructure investments that can be complemented by support under
the KISIP
Settlements for phase 1 investment for Component 2, enhancing tenure security, will also be scored on
level of preparation and readiness for implementation, according to the following:
a) Formalisation process under way. In cases where the formalisation process has already started
and where an intervention from KISIP could assist in finalising one or more steps of the process
(e.g. surveying), the settlement will be scored higher
b) Information available. Settlements with information readily available e.g. PDP, acreage,
population size, LR number, will be scored higher for readiness
Following these criteria, the MoH has categorised settlements as A and B in line with their readiness for
investment in infrastructure and tenure security respectively, with A indicating the highest level of
preparation or readiness. Category A settlements will receive investment in phase 1, with B settlements
receiving investments once they fulfil the readiness criteria. See Annex 2 for a list of all informal
settlements and slums in the 15 municipalities and Annex 3 for a list of settlements that are targeted for
investments during the first year of the Programme.
17
5. Components
The KISIP activities have been grouped together into four components as follows:
•
•
•
•
Component 1: Strengthening institutions and programme management
Component 2: Enhancing tenure security
Component 3: Investing in infrastructure and service delivery
Component 4: Planning for urban growth
The scheduling of implementation is set out in the Programme Implementation Plan in Section 8.
5.1 Component 1
Component 1: Strengthening institutions and program management
(estimated US$17 million; IDA US$10 million)
This component will support institutional strengthening and capacity building of the MoH, the MoL, and
the selected municipalities. It will also support development of policies, frameworks, systems, and
guidelines for slum upgrading. The component will support an institutional analysis of the Ministry of
Housing to clarify the roles and responsibilities of the ministry under the new constitution. It will
support municipal-level housing strategies to serve as input into the broader city strategic plans being
developed under the KMP. In addition, this component will finance the community mobilization in
slums to ensure that slum residents participate fully in designing and overseeing implementation of
upgrading plans. It will support implementation of a systematic training and capacity building program
for the MoH and the MoL. It will also assist with studies or technical advisory services identified during
project implementation to strengthen the MoH, the MoL, and the municipalities. Finally, it will finance
the management activities associated with program implementation.
From KISIP Project Appraisal Document, World Bank, 24 February 2011
National Level
At the national level, Component 1 will work within the following main areas:
1. Capacity building of MoH and MoL
2. Coordination of policies, frameworks, systems and guidelines for slum upgrading and access to
land and housing
3. Financing of management and implementation of KISIP
Under the area of capacity building of MoH and MoL, the Component will review the organisational
structures in view of the decentralisation efforts and the new Constitution. A capacity needs assessment
will be conducted on the staffing, capacity and training needs of the two Ministries. The Component will
18
prepare and implement a systematic training and capacity building strategy, including national, regional
and international study tours. The objective of the institutional strengthening is to improve the capacity
of MoH and MoL in implementing KISIP, and in addition ensure an enhanced delivery within the
Ministries’ respective mandates. The institutional structure, roles and mandates of the MoH may need
to be revised due to the new constitutional dispensation and this Component will propose appropriate
arrangements.
Specifically under MoL, the Component will support capacity building for the National Land Commission,
established under the New Constitution (2010), to process allotment letters and registration of titles,
and safeguard land records. The district land registries will also be strengthened.
Another important area for capacity building is to strengthen the interface between Government
agencies and the civil society. In order for communities to feel ownership for the interventions the
municipalities must learn how to engage with the community and civil society organisations from the
very start. Civil society organisations also need to learn how to interact with a Government counterpart,
and in addition they need skills such as how to conduct an enumeration, how to arrange for community
contracts, how to manage operation and maintenance. Component 1 and the Environment, social and
community development area (see Section 6.4) will be in charge of the process of engaging civil society
in KISIP and in training both parties on efficient cooperation with one another.
The policy development will be the responsibility of the other Components; however Component 1 is in
charge of the coordination of the policy work as well as the financing of it. In order to avoid overlaps
and contradictions in the development of policies, guidelines, frameworks and legislation, Component 1
will oversee the development and also ensure compliance with national policies in the area (e.g. the
new National Land Policy and the Urban Development Policy which is under development).
Furthermore, Component 1 will be responsible for dissemination, awareness raising and training on new
policies and guidelines, and also for initiating legislative processes that may be needed.
MoL is currently in the process of implementing the National Land Policy and receives support within
this area, but KISIP will also contribute to the process for the specific situation regarding informal
settlements.
MoH is responsible for policies for provision of housing and serviced land for low and middle income
households. The MoH shall lead the development of new or revised policies for housing and serviced
land and will undertake assessment of and review existing policies, legal framework and processes for
housing, slum upgrading and slum prevention. The policy development process will be aligned to the
drafting of the Urban Development Policy and the policy on devolution and decentralisation, which are
currently being developed.
The Component will support and coordinate the development of policies, frameworks and guidelines for
areas relevant for KISIP implementation, such as (to be refined and extended as the Programme
proceeds):
•
•
•
Inventory of slums and establishment of a GIS database on slums in Kenya (see further under
Component 2 for land tenure and Component 4 for the whole database)
Preparation of guidelines for implementation of the provisions of the National Land Policy on
the informal settlements (see further under Component 2)
Development of systems, standards, or policies that facilitate delivery of serviced land and
housing for low-income households (see further under Component 4)
19
•
Mechanisms for fast tracking delivery of land (see further under Component 2)
The KISIP management and implementation lies under Component 1 and even though it is a crosscutting issue all management activities associated with programme implementation will be financed
under this Component.
Municipal Level
At the municipal level, Component 1 will assist the local authorities in:
1. Capacity building
2. Implementing slum upgrading plans
3. Develop city specific slum upgrading strategies and plans
The capacity building of the local authorities will be carried out in conjunction with KMP6. KISIP and
KMP will support the operations of the Municipal Coordination Teams (MCTs) and KISIP will focus on the
parts connected with slum upgrading and prevention. Capacity needs and organisational structure will
be assessed and recommendations will be made for suitable arrangements. This Component will make
provision for training for skills enhancement and study tours for exposure for municipal staff as needed.
Component 1 will assist the local authorities to implement slum upgrading plans in KISIP, including
continuing the work of KENSUP in facilitating increased interaction of community development officers
with communities and civil society organisations. In particular it is anticipated that the local authorities
need assistance in implementation of the infrastructure investment in terms of procurement training,
establishment of maintenance and operation plans and in the start up costs for these activities.
Each of the local authorities will need to develop their own city/town specific slum upgrading strategies,
plans and frameworks, building on the national policy frameworks developed at central level. The
inventory of slums that will be developed at central level will also support the local development of
strategies and guidelines for slum upgrading and access to land and housing.
6
KISIP will not be responsible for the restructuring and filling of positions in the participating municipalities. This is purely the
mandate of the Ministry of Local Government.
20
5.2 Component 2
Component 2: Enhancing tenure security
(estimated US$13 million, IDA US$8 million)
This component will directly support implementation of the new national land policy in urban informal
settlements through refinement, systematic scale-up of ongoing efforts to strengthen tenure security
in slums.
•
•
•
•
•
•
•
•
•
•
•
Preparation of guidelines for implementation of the provisions of the National Land Policy
(2009) on the informal settlements.
Establishment of a database on the land tenure status of slums.
Establishment of the Geographical Information Systems laboratories at the MoL Establishment
of GIS based Land Information Management Systems for the informal settlements.
Community organization and mobilization.
Preparation of a part development plan, including determination of settlement (enclosures)
boundaries.
Detailed mapping of existing parcels and structures in the informal settlements.
Identification and verification of beneficiaries based on agreed eligibility criteria.
Preparation of local physical development plans.
Issuance of letters of allotment/offer to individuals or groups.
Surveying of individual plots and preparation of registry index maps.
Preparation, registration, and issuance of titles to individuals or groups.
From KISIP Project Appraisal Document, World Bank, 24 February 2011
National Level
KISIP maintains that de facto tenure security can be achieved before the formal regularisation process is
completed, especially if it is complemented with public infrastructure investments. Three basic
conditions will need to be fulfilled for reaching a reasonable level of tenure security: a) the settlement
should have a survey plan approved by the MoL; b) the residents should have been enumerated; c) a
Physical Development Plan (PDP) should have been developed and approved.
Surveying, enumeration and preparation of a PDP will take place at local level, however KISIP will e.g.
need to develop methods for how to undertake land surveying in a quicker, cheaper and more efficient
way. One of the activities at national level for Component 2 is to continue with and improve the block
survey methods that MoL has started to use. The rationale behind focusing on the survey part is that it is
considered to be a bottle neck in the regularisation process, which therefore in many cases has stalled
after letters of allotment have been issued. Title surveys conducted by registered private surveyors are
usually too expensive for residents of informal settlements. In addition, owners have to pay several fees
to have their titles formally registered and issued. To tackle this problem, the Programme will support
the use of block survey methods that entail simultaneous survey of all plots in a given settlement and
21
help to significantly reduce unit costs. The Programme will also provide support to MoL in simplifying
the steps and fees for title registration, including options for enhancing affordability of these fees for the
urban poor.
In addition to focus on making surveying more accessible for poor people, KISIP will develop generic
mechanisms for fast tracking delivery of land, i.e. improving the speed and efficiency of the processes
for moving through the stages of mapping, planning, surveying, and land registration. This will likewise
benefit poor and marginalised people.
Other activities at national level are linked to institutional strengthening and involve:
•
•
•
Contribute to the GIS database on slums with data on land tenure status, starting with the slums
in the 15 municipalities KISIP is targeting.
Support improved systems and approaches for mapping and planning at MoL and at District and
municipal levels (including a possibility to out-source mapping and physical planning activities to
registered firms).
Assist in the implementation of the National Land Policy, through developing guidelines for
implementation of the Policy in informal settlements.
Municipal Level
KISIP will support the MoL in implementing the new Land Policy in informal settlements. This involves,
amongst others, to scale up the process of tenure regularisation and to ensure that poor informal
settlements will be prioritised. KISIP will assist as needed in any of the steps in the regularisation of
tenure that is necessary, according to the status and needs of each informal settlement; from
community mobilisation to surveying, preparation and registration of titles to individuals or groups. To
the extent feasible, settlements benefiting from enhancements in tenure security will also benefit from
infrastructure investments under component 3.
In its support and scale up of ongoing efforts to regularise land tenure in urban slums, KISIP will include
financing for the following types of activities at local level (steps to go through at municipal level for
tenure regularisation):
1. Ensure that community organisation and mobilisation is done in the informal settlement before
land tenure regularisation is commenced
2. Identification of informal settlements in the 15 municipalities, including compilation of base
maps with cadastral overlay for the informal settlements
3. Provision of information on land tenure status
4. Recommendation to MOL for revocation of titles irregularly acquired in the informal settlements
5. Preparation of Physical Development Plans (PDPs) / Local Physical Development Plans (LPDPs)
6. Approval of PDP / LPDP
7. Surveying of individual plots / structures identified in the informal settlement
22
8. Submission of survey plans for checking and approval
9. Preparation of Registry Index Maps (RIMs)
10. Development of a GIS model system for informal settlement in the 15 municipalities in the
country
11. Registration of individual titles of bona fide residents of informal settlement
12. Issuance of letters of offer/allotment to individuals/groups
13. Issuance of titles to bona fide residents of informal settlements in the 15 municipalities
5.3 Component 3
Component
3: 3:
Investing
in infrastructure
and service
delivery
(estimated
US$129 million; IDA
Component
Investing
in infrastructure
and
service
delivery
US$74 million).
Thismillion;
component
will support
investment in settlement infrastructure, and, where
(estimated
US$129
IDA US$70.3
million)
necessary, extension of trunk infrastructure to settlements.
This component will support investment in settlement infrastructure, and, where necessary,
Investment
The followingto
areas
of investments will be eligible for financing under KISIP:
extension
ofmenu.
trunk infrastructure
settlements.
roads, bicycle paths, pedestrian walkways, street and security lighting, vending platforms, solid
Investment
menu. The
following
areas of investments
will be eligible
for financing
underpublic
KISIP:
waste management,
storm
water drainage,
water and sanitation
systems,
electrification,
roads,
bicycle
paths,
pedestrian
walkways, street
securityand
lighting,
platforms,
solid
parks and
green
spaces.
Other investments,
suchand
as schools
healthvending
clinics, will
not be eligible.
waste management, storm water drainage, water and sanitation systems, electrification, public
From KISIP Project
Appraisal
20be
January
2011
parks and green spaces. Other investments,
such as
schools Document,
and health World
clinics,Bank,
will not
eligible.
From KISIP Project Appraisal Document, World Bank, 24 February 2011
National Level
Under Component 3, infrastructure upgrading will be carried out in settlements that are poor but have
reached a certain level of security of tenure. The reason for this is that if the tenure situation is insecure
or disputed the whole infrastructure investment can turn useless if the residents risk eviction and
relocation. The level of tenure security needed is not easily defined as it is a question of degrees of
security and formality, but basically KISIP is arguing that if a settlement is planned, and has been
surveyed or surveying is underway, the settlement is reasonably secure. If a resident in that settlement
in addition has been enumerated, the resident is reasonably secured. If these conditions are fulfilled,
infrastructure investment can take place.
Apart from this basic condition of tenure security, other criteria are applied for the prioritisation and
selection of settlements for infrastructure investment, as was described in Section 4. It should be further
noted that as KISIP works in the same municipalities as KMP, KISIP will build on and supplement the citywide infrastructure improvements that will be done under KMP, e.g. in the area of trunk infrastructure
such as roads and drainage. KISIP and KMP will at municipal level work as one, and the planning and
implementation for infrastructure will be done jointly for the two programmes.
23
When settlements are improved, property values will be substantially affected. In many of the poor
settlements where KISIP wants to work, many of the residents are tenants rather than house owners.
The proportion between tenants and owners differ a lot between different settlements, so different
methods have to be applied in order to fairly accommodate for the changes brought about by
upgrading. One impact will be that the rent for the tenants in areas that are being improved will most
probably increase and the poorest tenants will be forced to move to cheaper houses, i.e. to another
slum area. In order to avoid major relocations by people who cannot afford to remain in an area that has
been upgraded, KISIP has agreed on the following coping mechanisms:
1. Scale – each municipality will have several settlements where infrastructure investment will
take place, and thereby the market will not be as distorted as if only a single settlement is being
upgraded
2. Basic standard – the infrastructure to be provided is very basic and of simple standard, in order
to make higher income people less interested in the upgraded areas
3. Additional land for housing – Component 4 will be complementary to Component 2 in that it
will open up new land for housing, work with densification and other methods in order to house
more people
Municipal Level
Investment at settlement level will be prioritised according to the settlement selection criteria as
described in Section 4. Selection of investments will in addition be guided by the following principles:
•
•
•
•
•
•
The service should be selected from the agreed investment menu (see below)
The investment should be a priority specified in the Physical Development Plan developed by
the residents of the informal settlement through a participatory process
The chosen infrastructure investments should be economically justifiable (as shown by costbenefit analyses or, for small investments (below US$500,000), by cost-effectiveness analyses)
Arrangements for operations and maintenance must be sound and give confidence that service
delivery will be sustainable
Environmental and social impacts of infrastructure investments are positive
Budget and per hectare cost must be within agreed limits
Investment Menu
Roads
Bicycle paths
Pedestrian walkways
Street and security lighting
Vending platforms
Solid waste management
Storm water drainage
Water and sanitation systems
Electrification
Public parks and green spaces
24
The infrastructure investment at settlement level will be implemented by the local authority in charge of
the area, in cooperation with the local community. In the beginning KISIP will assist with planning,
procurement and supervision but gradually the municipalities will take on larger responsibility.
Key principles for implementation are that the investment shall be implemented in collaboration with
the people who will benefit from the improved services; that the settlement shall be the owner of the
project and; that labour intensive methods and locally sourced building material should be used to the
extent possibly. All these issues will enhance the ownership of the project by the residents in the
settlement and will improve the sustainability of KISIP.
The main steps for implementation of an infrastructure project in a settlement are:
1. Initial discussions with the settlement, led by the municipality
2. Carry out a socio-economic survey in the settlement
3. Formulate a Community Development Plan (see further in Section 6.4.2) and prepare an
infrastructure upgrading plan
4. Carry out conceptual design and feasibility studies for the prioritised infrastructure, followed by
detailed design and tender documentation
5. Carry out Environmental Impact Assessment, Resettlement Action Plans and Environmental
Management Plans (see further in Section 6.4.4)
6. Construct the prioritised infrastructure (through contractors but in cooperation with the
community)
7. Ensure settlement is in charge of operations and maintenance for the infrastructure investment
(including having set up proper organisational arrangements and legal provisions as needed)
5.4 Component 4
Component 4: 4:
Planning
for urban
growthgrowth
(estimated US$6 million; IDA US$4 million). This component
Component
Planning
for urban
will supportUS$6
planning
andIDA
development
of options that facilitate delivery of infrastructure services,
(estimated
million;
US$4 million)
land, and affordable housing for future urban growth. The objective is to provide an alternative to the
This
component
will support
planningestablishing
and development
of options
that
facilitate
of
current
chaotic practice
of informally
settlements
on any
open
land. delivery
This component
will
infrastructure
services, land,
and affordable
housing for
be flexible in identifying
and leveraging
opportunities
[…]future urban growth. The objective is to
provide an alternative to the current chaotic practice of informally establishing settlements on any
KISIPinProject
Appraisal
Document,
World Bank,[…]
20 January 2011
open land. This component will beFrom
flexible
identifying
and leveraging
opportunities
From KISIP Project Appraisal Document, World Bank, 24 February 2011
25
National Level
Component 4 will support planning and development of options that facilitate delivery of infrastructure
services, land, and housing for future urban growth, with a special focus on poor and marginalised
people. The objective is to provide an alternative to the current chaotic practice of informally
establishing settlements on any open land. This Component targets poor people who are forced to squat
on public and private land and who do neither have resources nor knowledge to abide by the existing
planning and building regulations. It also targets the local authorities’ difficulties with enforcement of
regulations for land, planning and housing and will seek to identify hinders for pro-poor urban growth,
as well as suggest options on how to deal with an increasing urban growth in a pro-active manner.
Accordingly, this Component is designed to be flexible and it will support analysis, exploration and
innovation at both national and municipal levels. The more successful innovations or experiences under
this Component could subsequently be implemented at scale under a follow-on project. A few of the
envisaged activities at national level are:
•
•
•
•
A Situation Analysis of each of the 15 municipalities with regards to informal settlements,
housing, land tenure, poverty, infrastructure access, access to social services, environment,
socio-economic situation etc.
A systematic study of the main impediments to delivery of housing and serviced land that is
affordable to the poor and marginalised urban residents.
Analysis of the financing available for low-income housing, and development of strategies to
improve access to financing. The study will examine current financing available to end-users in
lower income groups to construct or purchase housing, and to developers for increasing the
supply of affordable housing (both for ownership and rental purposes).
Development of systems, standards, or policies that facilitate delivery of serviced land and
housing for low-income households.
The last point includes, for example, formulation or implementation of revised standards for planning
and land development (such as reductions in minimum plot sizes and setbacks, or increases in floorarea-ratios and building heights) that can go a long way in increasing the affordability (and, potentially,
the availability) of the least-cost formal-sector housing unit on the market.
Other areas to examine under this component are e.g. the rental market (including options for an
incremental transformation from informal to formal renting); land banking; public-private partnership
for housing; plot demarcation as a means to control urban growth; mixed development and other
methods to avoid gentrification; densification and avoidance of urban sprawl.
Component 4 will also keep an eye on policy development in other sectors and ministries that touch
upon the mandates of MoH and that are of interest for KISIP. One example of such a policy is the Urban
development Policy, recently under development in the MoLG, which KISIP should give input to.
26
Municipal Level
At the municipal level, support will be based on demand and priorities set by participating municipalities
and can include:
•
•
Analysis of housing supply and demand in selected municipalities, and development of cityspecific housing strategies and action plans.
Technical assistance for: (a) preparation of options or plans for redevelopment of council-owned
housing; (b) drafting of local building and planning by-laws, including those that may be required
to implement the new national building code that will come into effect in 2011; and (c)
identification of land for additional housing (either in green field sites or as densification in
existing settlements that are not fully occupied) and preparation of site-specific housing
development plans.
27
6. Supporting Areas
Apart from the four Components, which cover the thematic areas of KISIP, there are four supporting
areas which are cross-cutting and thus will be vital for the success of each of the four Components. The
supporting areas are defined as:
1.
2.
3.
4.
Monitoring and Evaluation
Procurement
Finance
Environment, social and community development
6.1 Monitoring and Evaluation
The objective of the monitoring and evaluation (M&E) system is to generate timely and relevant
feedback on the Programme’s implementation progress and achievement of expected outcomes to
enable the Government and the Developing Partners to address issues as quickly as possible once they
arise. Monitoring and reporting will take place at both municipal and central levels. It involves carrying
out periodic socio-economic surveys of slum settlements that will collect information on the
characteristics of slum residents and the living conditions of slums, with the aim of understanding how
the Programme’s interventions are changing living conditions in these settlements and the impact these
changes are having on residents.
KISIP will finance a detailed M&E and reporting system plan expected to be ready by Programme
effectiveness. The Programme will finance training of M&E specialists, technical assistance, and other
capacity support required to establish an effective M&E system. It will also finance follow-on training
and workshops to enable M&E specialists from different municipalities to learn from each other and to
ensure that normal staff turnover does not disrupt the M&E effort.
6.1.1 M&E at nationa l level
The M&E specialists at the MoH and MoL will be responsible for establishing the M&E system, and
training and backstopping M&E specialists in municipal administrations. They will also be responsible for
preparing quarterly and annual KISIP progress reports, based on the information from the municipal
level M&E specialists and on information from the KISIP coordinator, and specialists in procurement,
financial management, environmental and social safeguards, social and community development,
engineering, and others.
28
6.1.2 M&E at municipal level
The M&E specialists responsible for collecting settlement-level data will be part of the KMP/KISIP
Municipal Coordination Team (MCT). They will be responsible for collecting and reporting on indicators
of tenure security, infrastructure constructed or rehabilitated, service delivery, and progress with
developing and adopting plans for delivery of serviced land. They will also be responsible for monitoring
and reporting on the participatory processes that are followed in preparing plans for settlement
upgrading. Finally, they will be responsible for monitoring and reporting on indicators of implementation
progress to be agreed with the KISIP Team.
6.1.3 Data collection and reporting
The data to track the key performance indicators will come from central Government and municipal
sources and from Programme specific surveys. For example, information on the tenure status of
settlements will come from the MoL offices at municipalities. The number of households benefiting from
strengthened tenure security will come from the national census, supplemented with information from
settlement censuses carried out under the KISIP and other projects, such as the WaSSIP. The information
on creation of project financed infrastructure will come from KISIP reports. Data on improvements in
overall living conditions will come from socio-economic surveys to be carried out twice in each
beneficiary settlement, once prior to the start of works and once a year or so after the completion of the
infrastructure investments. Additional information on the impact on individual households of the
Programme will come through tracking of sample slum residents over time.
The KISIP Team is responsible for preparing quarterly and annual progress reports and providing them to
the Permanent Secretary of the MoH, to the participating municipalities and to the Development
Partners within six weeks of the end of each quarter. The Development Partners and Government teams
will discuss the findings in the reports during each supervision mission and agree on actions to address
issues raised in the reports.
The main indicators used for M&E are presented below:
•
•
•
•
•
•
Direct project beneficiaries (number), of which female (percent)
People in urban areas provided with access to improved drainage under KISIP (number)
People in urban areas provided with access to all-season roads within a 500 meter range under
KISIP (number)
People in urban areas provided with access to improved water sources under KISIP (number)
Informal settlements benefiting from enhanced tenure security under the KISIP (number and
area)
Households benefiting from improved tenure security under the KISIP (number)
These targets are indicative only, because the specific activities that will be undertaken in settlements
are known only for the first 18 months of the Programme. Moreover, populations and areas of
29
beneficiary settlements still need to be confirmed. Targets will be adjusted when additional information
becomes available.
6.2. Procurement
Procurement activities for KISIP will be carried out by the MoH and participating municipalities in line
with Government regulations and taking into consideration existing capacities at both levels. KMP and
KISIP will jointly strive to build capacity of municipalities and support them in steadily taking over of
responsibility for procurement in their jurisdiction.
Procurement for the KISIP will be carried out in accordance with the World Bank’s "Guidelines:
Procurement under IBRD Loans and IDA Credits" dated May 2004 revised October 2006 and May 2010;
and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004
revised October 2006 and May 2010, and the provisions stipulated in the Legal Agreement.
The KISIP Team and the Municipal Coordination Team must familiarise themselves with these guidelines
which, where inconsistent with the GoK Public Procurement and Disposal of Assets Act, 2005, take
precedence. Especially the procurement staff, but also all KISIP Team and MCT members, should ensure
that they are conversant with these guidelines which can be obtained from the World Bank Website,
http://siteresources.worldbank.org/Intprocurement/Resources/Procurement-May-2004.pdf.
A procurement expert will be recruited to the KISIP Team. This expert will build capacity in, and provide
support to, the Team and the MoH procurement experts. He will also assist in providing support to the
MTAP procurement experts and the municipality procurement teams.
6.2.1 Procurement by MoH and municipalities
At present, the procurement of consultants’ services is carried out by the Ministry of Housing in close
consultation with the Ministry of Lands and the participating municipalities. Over time, however, it is
envisaged that municipalities will take over the responsibility, from MoH, of procurement for
consultancies, goods and works.
Procurement assessments will be conducted repeatedly in MoH, MoL and all participating municipalities
to determine the extent to which these responsibilities can be transferred to the local level over time,
and also which municipalities have greater capacity to take on these tasks.
The first municipal-level procurement assessment was completed in late 2010. The assessment revealed
that although procurement staff in the municipalities possesses solid academic backgrounds and
practical knowledge in supply chain management, they lack the working knowledge and experience to
handle procurement activities under the KISIP using Bank Procurement Guidelines. Therefore,
procurement staff will need to participate in basic procurement training before Programme
30
effectiveness, followed by formal training in Bank Procurement Guidelines during the first year of
implementation. The procurement assessment will be repeated annually.
It is expected that, over time, an increasing number of municipalities will qualify to undertake
procurement under KISIP. Municipalities that have adequate financial management and procurement
capacity and arrangements satisfactory to the World Bank will be eligible to open an account and to
start procuring in accordance with their approved procurement plan.
Over time, as municipal capacity increases, the following is envisaged:
MoH will remain responsible for:
•
•
•
Own procurement requirements
Selection of major consultant contracts (especially international consultancies); and
Goods and large works to be procured through international competitive bidding (ICB) and
national competitive bidding (NCB) procedures.
Municipalities with low procurement capacity will be responsible for:
•
•
Procurement of small works contracts (through quotations, direct contracting and shopping);
Procurement of goods comprising minor items (through quotations, direct contracting and
shopping).
Municipalities with higher procurement capacity will, in accordance with their procurement threshold,
also be responsible for:
•
•
Procurement of goods and works (through NCB, quotations, direct contracting and shopping);
Procurement of municipality-specific consultancies.
The initial threshold of procurement capacity for the municipality will be conditional on the municipality
having in post appropriately qualified procurement staff, these officers having undergone the initial
training described below, and a procurement plan having been prepared. If these minimum conditions
have been passed the municipality will be able to make minor procurements of goods, services and local
consultancies under the shopping method.
Further thresholds will be established as the KMP and KISIP progress, with the objective of the
municipalities taking on full procurement responsibilities before the end of the Programmes.
6.2.2 Training of Procurement Staff
Initial training of all municipal and MoH/MoL procurement staff on World Bank procurement procedures
will be carried out through one week’s training by resident WB specialists followed by two weeks
training at ESAMI.
31
This will be followed up by annual refresher training as required to address issues and weaknesses
identified during programme implementation.
On the job training in the municipalities will be provided through the MTAP procurement specialists and
the procurement consultant in the KISIP Team, which will also support the MoH procurement officers.
Procurement capacity in each of the Municipalities will be reviewed annually by KMP and the
development partners and the level of procurement that may be managed by an individual municipality
fixed accordingly.
6.2.3 Preparation of procurement plans
The initial procurement plan for the first 18 months of the KISIP has been prepared. It must be made
available to the public by the KISIP Coordinator, and will therefore be published on the MoH/KISIP and
World Bank website, once operational.
The procurement plan will be reviewed annually, that is each year on the date of the agreement of the
initial plan being December 2010. The plan will be updated for actual procurement performance as well
as additional activities. The updated plan will be forwarded to the development partners for approval
and published on the KISIP and World Bank websites.
Municipal procurement plans will be prepared on commencement of KISIP (in June 2011) and updated
at the same time as those for the KISIP Team and consolidated.
Templates of procurement plans are attached as Annex 4 and the most updated KISIP procurement plan
can be found in Annex 10.
6.2.4 Procurement thresholds
The following are the various thresholds for each procurement method.
7
8
Expenditure
Category
Contract Value
Threshold (US$)
Procurement / Selection
Method
Contracts Subject to
Prior Review
Works
Above 5,000,000
ICB7
All
Below 5,000,000
NCB8
Below 80,0000
Shopping
Specified in the
procurement plan
None
ICB = International Competitive Bidding
NCB = National Competitive Bidding
32
Expenditure
Category
Goods
Consulting
services
(firms)
Consulting
services
(individuals)
Contract Value
Threshold (US$)
Procurement / Selection
Method
Contracts Subject to
Prior Review
All Values
Direct contracting
All
Above 500,000
ICB
All
Below 500,000
NCB
Below 80,000
All Values
Above 200,000
Shopping
Direct Contracting
QCBS9/LCS10
International Shortlist
QCBS/CQS11/LCS
National Shortlist
SSS12
Individual consultant’s
qualification
Individual consultant’s
qualification
SSS
Specified in the
procurement plan
None
All
All
Below 200,000
All Values
Above 100,000
Below 100,000
All Values
None
All
All
None
All
Details of the circumstances under which each of these approaches are used are set out in the World
Bank procurement guidelines, together with the rules for their application.
6.2.5 Requests for no objections
The World Bank has established the Africa Region Procurement Tracking System (PROCYS). All requests
for no objections to Requests for Expressions of Interest (REOI) and subsequent requests required under
the procurement procedures will be addressed to the World Bank using the PROCYS system, an
overview of which is attached as Annex 5. Ministerial and municipal procurement specialists will be
trained on this system, as part of the initial training referred to above.
The procedures of AFD and Sida require them to also give “no objections” on certain types of
procurement. These will however be channelled through the World Bank who will forward the
appropriate requests for no objections to Sida and AFD, who will respond through the World Bank, who
will transmit this to the KISIP Coordinator when all necessary approvals have been received.
9
QCBS = Quality and Cost Based Selection
LCS = Lowest Cost Selection
11
CQS = Selection Based on Consultant’s Qualifications
12
SSS = Single Source Selection
10
33
6.2.6 Publishing of procurement documents
All Requests for Expression of Interest (REOI) will be published in at least two nationally distributed
Kenyan newspapers. They will also be forwarded two days before they are due to appear in the local
press to the World Bank for posting on the WB Market and the DG market website.
All REOIs will also be posted on the MoH/KISIP website (www.housing.go.ke) and, if such exists,
municipal websites, as will lists of those received and those shortlisted. The following further
information will also be published on the websites:
•
•
The results of the evaluation of technical and financial tenders/proposals, giving the scores for
each as well as the price.
Details of the tender award.
6.3. Financial Management
MoH will be responsible for the overall implementation of the KISIP including that at municipal level.
During KISIP execution, MoH will be in charge of the financial management, accounts and disbursement,
in close cooperation with the municipalities. MoH will constitute the operational link to the
development partners and the Government on matters related to the financial management of the
Programme.
The Permanent Secretary of the MoH will be the “Accounting Officer” for the Programme, assuming the
overall responsibility for accounting for the project funds.
The KISIP will use existing Government financial regulations and procedures for the management and
accounting of the Programme funds. Also to be adopted are financial procedures for Water Services
Boards and other Government bodies that will execute subprojects on behalf of KISIP. LAIFOMS will be
used in the municipalities for accounting and report production as required by the KISIP procedures. At
MoH, spreadsheet based tools will be developed for central reporting and the consolidation of
municipality reports. The Government of Kenya is currently procuring a project accounting software for
Government projects, and when this is operational KISIP will shift from spreadsheet accounting to this
system.
The lending instrument for the proposed KISIP will be a Specific Investment Loan (SIL). The support
offered by the Bank under a SIL will help to ensure that the investments benefit the targeted groups.
The MoH is optimistic that the World Bank will provide long-term support for slum upgrading in Kenya,
with a second five-year Programme to follow the first.
KISIP is estimated to cost US$165 million for the first five years but can be scaled up and complemented
with additional financing. IDA will finance US$100 million of the costs. The Government will add US$10
million as counterpart financing; this will include non-cash contributions (such as staff time and space)
34
and incremental costs beyond the amount financed by IDA. Further, bilateral development partners,
Sida and AFD, intend to deliver additional financing to the Government that can, inter alia, help broaden
coverage to a larger number of informal settlements than those to be covered by IDA alone.
Budgeting at the MoH is done by the finance department which is separate from the accounts
department. Budgeting guidelines are documented in the Government Financial Regulations and
Procedures manual. The staff will have adequate qualifications and experience to prepare and monitor
the Programme’s budget. At municipal level there are adequate budgeting guidelines and staff to
prepare and monitor the budget.
The following chart summarises the fund flow arrangements which are discussed in the sections below.
6.3.1 Inclusion in the Government budget
KISIP will be included in the Government of Kenya budget under the development budget for MoH. The
budget will cover both contributions from Development Partners and from GoK.
Appropriations in aid provisions will be made to account for in kind contributions by GoK including the
costs of the officers in the KISIP Team, office running costs and other costs that will be included in the
Government budget.
35
6.3.3 Signatories
The signatories to the KISIP Project bank account are:
1. First Signature – Head of the Accounting Unit at MoH, with an alternate signatory being the
project accountant or the Deputy Head of the Accounting Unit
2. Second Signature - the KISIP Coordinator, with an alternate signatory being the deputy
Coordinator. In the absence of both, the Director of the Slum Upgrading Department will be the
signatory
One signatory from each category will be needed in order to access the account. This will equally apply
to the sub-implementing entities (municipalities, MoL, Water Services Boards and other Governmental
bodies). They will be expected to forward the names of the signatories to the MoH.
6.3.4 Transfer of funds to the Designated Account
The MoF will be required to open a Designated Account denominated in United States Dollars while the
MoH will open a Project Account denominated in Kenyan Shillings. Both accounts are to be opened in
acceptable commercial banks in Kenya.
The municipalities, MoL and Water Services Boards that meet the eligibility criteria will be expected to
open KISIP project accounts in commercial banks acceptable to the World Bank. Details of these
accounts and their signatories are to be communicated to MoH and copied to the World Bank.
KISIP will submit a withdrawal application to the World Bank with six month cash flow projection based
on agreed work plans and budgets. The World Bank will process the withdrawal application and deposit
funds into the Designated Account, on receipt of the withdrawal application and a satisfactory Interim
Financial Report (IFR, see Annex 7) for KISIP for the penultimate quarter of the year. Funds will then be
transferred from the Designated Account at MoF into the project account at the MoH. After confirming
that relevant requirements have been met satisfactorily, the MoH will transfer funds into the project
accounts for the other implementing entities, specifically the MoL, the municipalities, and the Water
Services Boards. Payments in regard to eligible expenses can be made from the Designated Account or
any of the project accounts.
The KISIP Coordinator will, for example, submit the IFR for the quarter ending 31st March on 14th May
and that for 30th June on 14th August. The approval of March IFR will mean funds for the next six
months as reflected in cash flow projections in the approved IFR net of cash in hand (In Designated
Account and Project Account) can be released.
The initial deposits into the Donor Account will be made by the World Bank, following approval of the
banking arrangements, and on receipt of a withdrawal application with a six months cash flow forecast.
This withdrawal application should be prepared within one month after KISIP effectiveness. Thereafter,
World Bank disbursements will be made into the Donor Account based on quarterly Interim Financial
36
Reports (IFRs) which would provide actual expenditure for the preceding quarter (three months) and
cash flow projections for the next two quarters (six months)
The IFR together with the withdrawal application will be reviewed by the World Bank’s financial
management specialist and approved by the task team leader (TTL) before the request for disbursement
is processed by the Bank’s Loan Department. Disbursements to the municipalities will be under a similar
arrangement using the report based disbursement method.
Disbursements to the municipalities, MoL and Water Service Boards will be transferred by MoH from the
project account using advance transfers. Upon accounting for the previous advance, the entity will
receive the next advance which is equivalent to its three months projections. The first transfer will be
for an agreed amount up to a maximum of three months of forecast eligible expenditure supported by a
work plan and annual procurement plan approved by the KISIP Steering Committee. Subsequent
disbursements to the MoL, municipalities and Water Services Boards will be done by the MoH once
these entities account for the previous advance. Details concerning disbursements will be specified in
KISIP’s Disbursement Letter.
6.3.5 Direct payments and transfer of funds
The direct payment method of disbursement, involving direct payments to suppliers for works, goods
and services upon the borrower’s request, may also be used. Payments may also be made to a
commercial bank for expenditures against pre-agreed special commitments. Reimbursements can also
be made to the Designated Account. These payments will also be reported in quarterly IFRs. The
minimum application value for direct payment and special commitment procedures is US$ 200,000 and
the maximum is US$ 350,000. Detailed guidance for the use of these procedures is set out in the World
Bank Disbursement Guidelines for Projects (May 2006).
The KISIP Team will request the transfer of funds to the Project Account from the Designated Account as
required for operational purposes. PS of MoH will apply to PS of MoF to request the Central Bank of
Kenya to make the required transfer. These transfers should normally be quarterly, based on the cash
flow requirements of the KISIP Team.
6.3.6 Eligibility to open a Project Account for municipa lities, MoL and Water
Services Boards
KISIP will through KMP assess each participating municipality to determine whether it has the requisite
financial management capacity and systems to qualify for a municipal-level project account and the level
of KISIP funds that it may directly manage. MoH will also need to seek authority from the Accountant
General at Treasury to open bank accounts at the municipalities.
37
The municipalities will be assessed in order to qualify to manage KISIP funds at the local level. To be
eligible for a municipal project account, municipalities must:
•
•
•
Have qualified and experienced staff to account and report on the utilisation of project funds.
The minimum qualification is a Certified Public Accountant with Part II or bachelor of commerce
degree holder with accounting option.
Have a satisfactory financial management manual that states the accounting policies and
procedures to be used for the project and the internal control systems to be complied with.
Once deemed eligible to manage KISIP funds, have established a project account.
During implementation, municipalities should strive to achieve the following:
•
•
•
Use LAIFOMS for producing complete and accurate accounts.
Maintain a functional internal audit department producing reports using a risk-based approach.
The internal audit department should submit its reports to the audit committee (comprised of
councillors) and action should be taken to resolve issues flagged by the internal auditors.
Review external and internal audit reports and adopt action plans to mitigate risks that will
impact on the project.
Where the minimum criteria have been met, the municipality will be eligible to set up a Project Account
from which the Component 1 capacity building and other procurement under the shopping method can
be met. Better performance against the above criteria and the procurement criteria will result in larger
amounts of KISIP funds being transferred to the municipality.
The financial management assessments of municipalities will be carried out at the same time as the
procurement assessments and the results — in particular, the proposals for the level of KISIP funds a
municipality may manage though the project account — will be agreed upon between the MoH and the
development partners.
It is recommended that the MoL and the Water Service Boards also meet the following requirements:
• Have a computerized accounting system to produce complete and accurate accounts.
• Have a functional internal audit department producing reports using a risk-based approach.
• Have a functional audit committee to review both internal and external audit reports and
ensure that management takes action on audit recommendations.
6.3.7 Transfer of Funds to Municipalities, MoL and Water Service Boards
The transfer of KISIP funds to the municipalities and other entities that have met the minimum criteria
above will flow from the KISIP Project Account to the entity’s Project Account using account advance
transfers. Upon accounting for the previous advance the municipality will receive the next advance. It
should however be noted that funds will not be transferred to entities that have not met the minimum
38
conditions. In such cases payments will be either made directly to the supplier by MoH or by
reimbursement of eligible expenditure, on a quarterly basis.
The first transfers will be conditional on the submission to and approval by the KMP/KISIP Joint Steering
Committee of an annual work plan, an annual procurement plan and a cash forecast for the first three
months of operations. Subsequent annual approvals will be given by the KMP/KISIP Joint Steering
Committee on submission of the above for the upcoming year. The work plan, procurement plan and
cash flow forecast will be updated by each entity on a quarterly basis.
Transfers to municipalities, MoL and Water Service Boards will be made quarterly and be subject to
satisfactory accounting for the penultimate quarterly’s release of funds, through the quarterly Interim
Financial Report (IFR). The KISIP Team will request the transfer of funds to the different Project Accounts
from the MoH/KISIP bank account as required for operational purposes.
The disbursements to the municipalities, MoL and Water Service Boards are expected to be published in
the press as a transparency measure of the funds flow process.
6.3.8 Financial Reporting Arrangements
The MoH will prepare quarterly un-audited IFRs in form and content satisfactory to the World Bank,
which will be submitted to the World Bank within 45 days after the end of the three months to which
they relate.
The contents of the IFR (see format in Annex 7) will include a section to report on the accountability of
funds utilised and a section to access funds using the report based method of disbursement.
The reporting section includes:
• Statement of sources and uses of funds
• Statement of Uses of Funds by Project Activity/Component.
The disbursement Section includes:
• Designated Account Activity Statement
• Bank statements for both the Designated and Project Account
• Summary statement of Designated Account expenditures for contracts subject to prior review
• Summary statement of Designated Account expenditures not subject to prior review
The MoH will also prepare the KISIP’s annual accounts in accordance with International Public Sector
Accounting Standards.
The participating municipalities, MoL and Water Service Board with Project Accounts will prepare
quarterly IFRs in form and content satisfactory to the World Bank, which will be submitted to MoH
within 15 days after the end of the quarter to which they relate (for the municipalities in line with
39
quarterly reporting guidelines in the Local Authority Financial Management Regulations) to enable the
MoH to consolidate and submit them to the World Bank within 45 days of the same period.
6.3.9 Auditing Arrangements
Government of Kenya’s Internal Audit Department are conducting fiduciary/in-depth reviews of high
and substantial risk projects, including KISIP. This is expected to strengthen the fiduciary controls of the
KISIP. In regard to the municipalities, they have internal audit functions with qualified and experienced
staff but they do not use a risk-based audit approach and they lack independence as the audit reporting
is to the town clerk rather than to the audit committee chair. The audit committees of the municipalities
are also ineffective as they rarely meet. The audit committee is comprised of councillors, most of whom
have no auditing or accounting knowledge. They need capacity building to strengthen their
effectiveness. Audit committees for the MoL and the Water Service Boards will also need to be
strengthened.
The internal control systems of MoH are adequate for KISIP and documented in the accounts procedure
(procedure MoH/ACCS/001) and the Government Financial Regulations and Procedures. However, the
internal control systems relating to imprests, bank reconciliations, and advances of the MoH need to be
improved, as they have consistently been highlighted in the external audit report produced by Kenya
National Audit Office (KENAO).
For the municipalities, the procedures’ manuals documented under the local authorities financial
management regulations 2007 and the treasurer’s manual are considered adequate for KISIP, with welldocumented internal control systems, which will also be complemented by the Financial Management
inputs as described in this manual. The internal control systems of the municipalities also need
improvement, as revealed by the Bank assessment of the 15 municipalities visited and a review of
municipality accounts audited by KENAO.
The audit report and management letter prepared by the Kenya National Audit Office (KENAO) must be
submitted to the World Bank within six months after the end of the financial year. The KISIP will be
annually audited. The audit will be done in accordance with the International Standards on Auditing
(ISAs). The financial Statements for KISIP prepared by MoH will consolidate all accounts for the
Municipalities and other implementing units (MoL and Water service Boards).
The ToR for the audit of the Programme Accounts is set out in Annex 8.
40
6.4. Environment, Social and Community Development
The KISIP follows a flexible design, where the infrastructure investments to be financed will be demanddriven and subjected to a screening process to ensure that technical selection criteria are met and
environmental, social and community issues are adequately identified and addressed.
At the national level, as part of the KISIP Team, an officer has been appointed to handle all matters
pertaining to environmental and social management in the programme. The environment and social
officer will amongst others address community engagement and participation; regulatory clearances;
integration of the Environmental and Social Management Framework (ESMF) into project design and
contract documents and; over-all monitoring and supervision of environmental and community
activities in KISIP.
Similarly, at the local level, each municipality will designate an officer to coordinate and provide inputs
on environment management and community development pertaining to investments in their
jurisdiction, especially on construction management. These officers will also assist in data collection and
documentation management on environmental, social and community aspects, as inputs in the
monitoring and evaluation system of the Programme.
At the field level, the contractor will be responsible for planning, executing and coordinating the
implementation of the ESMF provisions as laid out in the contract documents.
A training plan will be prepared as part of the ESMF incorporating the short (programme specific) and
longer term capacity building needs of the MoH, MoL and the municipalities. The plan will consist of
different training modules specific to the needs of various target groups. Training in World Bank
safeguard policies will be included for environmental and social officers working on the KISIP. An
orientation programme for all participating municipalities will be carried out by MoLG in assistance with
the consultants on the ESMF and RPF provisions to increase and harmonise the understanding. If
needed, the KISIP will undertake a similar exercise but with focus on the informal settlements and the
specific issues that arises regarding these in the areas of environment and social/community safeguards.
6.4.1 Social and Community Development
To reflect the basic principles of the KISIP strategy, implementation must change from a programme to a
process approach which is firmly rooted at the community and local authority level and embedded
within the broader urban context.
At the municipal level the focus should be on strengthening the municipalities’ capacity to work with
local communities to improve the living conditions and livelihoods of slum dwellers. At the central
Government level, the focus should be on supporting the municipalities to undertake the
implementation and coordination of slum upgrading efforts through policy and regulatory initiatives,
41
and capacity development, especially concerning the cooperation with local communities, civil society,
private sector and other non-Governmental partners.
The municipalities’ role will be to coordinate, motivate and engage local stakeholders without getting
directly involved in practical slum upgrading activities. The central KISIP team will ensure an appropriate
response to the needs identified and defined at the local level.
Community officers from the municipalities will assist in establishing and continuously strengthening the
Settlement Executive Committees (SEC) in the settlements where KISIP will be active (see Annex 12 for
guidelines for the formation of SEC). As the SECs will be the entry point for all KISIP interventions in the
settlements it is important to ensure that the SEC members have capacity and willingness to participate
in the entire KISIP project cycle; from planning through implementation to operation and maintenance.
6.4.2 Implementation framework at local level
Implementation of KISIP will take place at the municipal level where the role of the municipalities will be
to identify opportunities and resources and ensure collaboration between all stakeholders and in
particular the slum communities, to achieve effective programme implementation.
The municipalities are the main facilitators of a process of upgrading the slum settlements, working in
close collaboration with the communities. KISIP interventions will be identified and selected by the
community and be part of a long-term, community-generated, development strategy for the
settlements. The communities will be encouraged and capacitated to take a leading role in the planning
and upgrading process to ensure a high level of community ownership.
A phased approach for long-term sustainability
The needs in the slums are many and substantial. In order to have the greatest possible impact on
improving the living conditions of as many people as possible with the limited financial resources
available, the following approaches must be adopted:
•
•
A phased approach, starting with basic interventions to improve living conditions in the short
term that can be built upon in future. The initial interventions should provide an incentive to
residents to contribute to further improvements over time.
A sustainable approach, in which social and physical infrastructure is designed to:
- Make use of low-cost approaches which minimise future maintenance and running costs
- Utilise local labour wherever possible for both construction and maintenance
- Be environmentally sustainable and make use of locally available materials
- Promote community contracting
- Be gender sensitive
42
Community Development Plan
Investments in secure tenure and infrastructure cannot be implemented ad hoc. Communities
supported by the municipalities need to formulate a Community Development Plan for their
settlements. An agreed plan, with community defined priorities, will minimise the possible politicisation
of slum upgrading issues. A Community Development Plan is not simply a physical development plan but
will:
•
•
address the communities’ priorities including infrastructure, land and tenure, personal security
and safety, unemployment, and environmental, health, social and economic issues
Identify not only the community’s needs but the resources available to meet these needs. In
particular the resources available in the community e.g. youth and women groups and the
inputs required to stimulate their involvement should be identified
In order to be able to participate in and contribute to the KISIP planning and projects in the settlements,
capacity building will be needed also at local level. This assistance will be coordinated by the respective
municipalities with help of the MTAP and will be provided by national or local NGOs or consultants.
The generic implementation framework at the local level, including main activities and responsibilities, is
shown in brief in the table below:
Activities
Responsibility
Assistance
Identify priority interventions
Community, opinion
leaders
Community, opinion
leaders
SEC
Technical design and budget and prepare
tender documents and tendering
Municipality with support
of KISIP Team
Implementation: contract supervision, M&E
Municipality with support
of KISIP Team
KISIP Team
Municipality, KISIP Team,
NGO/consultant
Municipality, KISIP Team,
NGO/consultant
Municipality, KISIP Team,
NGO/consultant
KISIP Team, MTAP,
NGO/consultant to guide
participatory process
KISIP Team, MTAP,
supervision consultant
Consultants
SEC supported by the
municipality
NGO/consultant to guide
process
SEC supported by the
municipality
KISIP Team
NGO/consultant to guide
process
MTAP, other consultants
Priority interventions
Community mobilisation and identification of
possible interventions
Form a Settlement Executive Committee (SEC)
Backstopping and overall M&E support
Community planning
Assess available capacity in the community,
collect physical, socio-economic,
environmental, political and other information
and identify development needs and priorities
Identify and delineate the roles and
responsibilities of all stakeholders
Identify and respond to needs requiring
response e.g. policy change, resources for
investment, capacity development etc.
43
6.4.3 Gender Mainstreaming
KISIP will make a special effort to ensure that women benefit fully from the Programme, especially in the
land tenure component. The new National Land Policy states that females who are heads of households
are entitled to an individual household title or, in the case of a community title, be formally recognised
as a member of the community, and KISIP will make sure that this policy is implemented and respected.
The Settlement Executive Committees (SECs) that will lead the enumeration of legitimate residents of
settlements and preparation of settlement upgrading plans will comprise at least 33 percent women.
This will contribute to increasing the likelihood that women are able to benefit from the tenure
regularisation, and it will also ensure that women are able to influence the choice and location of
infrastructure investments. Women are expected to benefit disproportionately from some of the
investments, such as in water and sanitation facilities.
A member of the gender mainstreaming committee at the MoH is a member of the KISIP Team. This
specialist has been involved in developing MoH’s gender mainstreaming policy, which the Ministry
adopted in 2010. The specialist will promote implementation of the policy in the KISIP at Ministry and
settlement levels.
Gender disaggregated data will be collected through the settlement socio-economic surveys to allow
assessment of the Programme’s impact on both women and men.
6.4.4 The Environmenta l and Social Management Framework (ESMF) and
the Resettlement Policy Framework (RPF)
The draft Environmental and Social Management Framework (ESMF), which includes the Resettlement
Policy Framework (RPF), has been prepared to align with these design principles and complement the
GoK’s Environmental Assessment process. The ESMF and RPF were submitted to the World Bank on 1st
December 2010 and are publicly available on the MoH website (www.housing.go.ke).
Appropriate safeguards for the management of the environment and the protection of the communities
affected by the KISIP projects are of critical importance to the Programme objectives. The KISIP
procedures therefore include important steps that must be taken by the implementing municipalities
before each settlement project can be approved for commencement. It is anticipated that these, which
complement the current Government procedures will be institutionalised into the planning and project
management procedures of the municipality for future use. All statutory GoK clearances will be
obtained prior to invitation of bids.
MoH and MoL will ensure that the procedures set out in the ESMF and RPF are central to the processes
of the KISIP, specifically those relating to infrastructure investment and planning, so that they are
institutionalised in municipalities. Specifically, at national level, the KISIP Team is responsible to:
44
•
•
•
•
•
•
•
•
Provide assistance to municipalities in the preparation of Environmental Management Plans
(EMPs) and Resettlement Action Plans (RAPs)
Review and approve EMPs and RAPs for investments prior to acceptance of investments under
KISIP
Undertake annual environment and social audits
Carry out environment and social screening during the feasibility stage and develop EMP and
RAP as needed prior to invitation of bids for corresponding works for investments;
Constitute resettlement advisory committee and establish grievance redress committee if
needed
Facilitate the payment of compensation and resettlement assistance prior to award of contracts
Ensure appropriate disclosure for EMPs and RAPs as and when investments are ready
Carry out environment and social impact assessments and evaluations as necessary, during midterm and end of investments, and assist the municipalities to implement any remedial measures
required as an outcome of these assessments/evaluations.
Environmental and Social Management Framework (ESMF)
The ESMF identifies and addresses environmental and social issues in project design and
implementation. The ESMF will be applied as follows:
•
•
•
•
•
Screening all investments to determine the nature and magnitude of issues and, where
necessary, the scope of subproject-specific Environment Impacts Assessments (EIA) and the
Social Impact Assessments (SIA), per GOK regulations and the applicability of the World Bank’s
environment and social safeguard policies;
Development of Environment Management Plans (EMPs) and guidelines to manage identified
impacts along with budgetary provisions;
Application of procedures for compliance with GoK laws, regulations, and World Bank’s
safeguard policies;
Identification of appropriate institutional arrangements for the implementation and monitoring
of EMPs; and
Capacity building needs.
Resettlement Policy Framework (RPF)
In order to mitigate the likely impacts associated with land acquisition and displacement, a Resettlement
Policy Framework (RPF) has been prepared outlining the process to be followed for carrying out the
baseline census surveys, consultations, and Resettlement Action Plan (RAP) preparation and
implementation procedures, including the grievance redress mechanisms and monitoring and
evaluation. The nature of compensation and assistance to be provided for different types of impacts is
also spelled out in this RPF. The RPF also outlines the contents of RAP and lists the monitoring indicators
45
for which baseline information will be included in the RAP, which will become the basis for measuring
the impact and for deciding on compensation and assistance to be provided to affected people.
Once a settlement project is identified, the first step is to screen a subproject for adverse social impacts
such as private land acquisition, displacement, loss of community assessment, etc. Based on the nature
and magnitude impacts, the subproject will classified as S-1, S-2 and S-3 and accordingly prepare the
appropriate mitigation to address the adverse impacts associated with the preparation and
implementation of subprojects.
All settlements projects affecting more than 40 households loosing livelihoods or shelter will be
categorised as S1. In case projects with less than 40 households losing livelihoods or shelter, the project
will be categories as S2. In case there are no impacts or impacts, are minor not involving either physical
displacement or loss of income less than 20%, those projects will be categorised as S3. In case of S3
projects, the assistance in addition to compensation is not envisaged. In case of S-1 projects, a full RAP
will be prepared and in case of S-2 and S-3 (where impacts are minor) abbreviated RAPs will be
prepared. These plans will be reviewed and cleared by the World Bank prior to acceptance of the
projects.
6.4.5 Stakeholder consultations and M&E
In accordance with the applicable GoK and World Bank policies, public consultations at local level (in
areas where specific investments will be made) will be carried out for all proposed investments. The
consultation process for the Programme includes a range of formal and informal on-site discussions,
interviews, focus group discussions and meetings and targeted stakeholders such as local residents;
roadside and embankment side communities; local bodies and municipalities; local private sector
representatives; local NGOs; and selected Government line departments. All consultations will be
documented and outcome/inputs from consultations will be incorporated in the investment designs as
relevant.
All draft EMPs and RAPs will be disclosed in places accessible to the local communities and inputs from
stakeholders will be sought through the above stated stakeholder consultations.
For effective implementation, the relevant ESMF provisions will be appropriately integrated and crossreferenced in the project design documents, contract conditions and Bills of Quantities (as required).
The over-all supervision and monitoring will be carried out as outlined in EMPs/RAPs. Monitoring
reports will be prepared by the Environment/Social Development Officers at the municipality once every
quarter covering all investments. A comprehensive monitoring and evaluation report will be prepared by
the KISIP Team at MoH at mid-term and end-term.
46
7. MoH and MoL Commitments
In order for the KISIP to succeed, MoH and MoL are expected to be committed to its approach and its
activities, and this Section sets out the key commitments required from MoH and MoL.
7.1 Support to the KISIP Team staffing
The MoH and MoL will ensure that all possible support is given to allocation of adequate human
resources to the Programme, including:
•
•
Endeavouring to keep in place the KISIP Team (especially the KISIP Coordinator and the
Component Heads) throughout the period and expanding the Team as required in order to meet
the needs of KISIP. Where significant changes within the KISIP Team are required, the
replacement must be notified in advance to the Development Partners.
Ensuring clear allocation of responsibilities to officers to implement the KISIP and ensuring that
they have adequate time to carry out those responsibilities. At least the KISIP Coordinator, the
Component Heads, the Finance Head and the Procurement Head should be on full time (see
Annex 9 for list of the KISIP Team and the time allocation for each staff).
7.2 Budgetary Support
MoH will work with MoF to ensure that the GoK agreed contribution to the Programme Budget is
provided for in the annual budget and released to the Designated Account according to the agreed
schedule.
7.3 Procurement of TA
The early procurement of the necessary Technical Assistance and consultancies is critical to the success
of the Programme and MoH must ensure that as a matter of urgency that the following consultancies
are procured (for full list of procurement, see Annex 10):
•
•
•
•
Procurement expert
Financial management expert
Consultant/s for feasibility studies for phase I investments in infrastructure
Consultant/s for enumeration, surveying, mapping etc for phase I initiatives for enhanced
security of tenure
47
•
•
Central Technical Assistance Team, CTAT (including experts on finance, institutional
strengthening, M&E, community and gender)
Consultant/s for policy related work
7.4 Participation and accountability
MoH will ensure that all KISIP activities, including those relating to the development of Community
Development Plans and other planning exercises in informal settlements, as well as the identification
and implementation of infrastructure projects and land tenure processes, are carried out in a
participatory manner, involving the local communities in formulation of plans and projects as well as
their implementation and monitoring.
To this end MoH will assist the MoLG to ensure that enhanced downward accountability mechanisms
are operating properly in municipalities including grievance procedures, citizen satisfaction surveys, and
stakeholder forums.
Participation and accountability will be enhanced by the preparation and implementation of civic and
citizen education programmes. This will be further enhanced through improved information flows,
making use of traditional means such as the vernacular radio stations and barazas, as well as web sites
and other digital media.
7.5 Integration with other reform activities
MoH will ensure that the implementation of KISIP activities is integrated with those being deployed
through the land reforms as envisaged in the Constitution and the National Land Policy, as well as with
the Local Government Reform, the Public Sector Transformation and other Government initiatives.
48
8. Programme Implementation Plan
Sound implementation planning is a key element to ensuring the successful delivery of KISIP. The
Programme Implementation Plan (PIP, see overleaf) which covers all five years of the programme is a
management tool that will assist KISIP to manage and monitor implementation effectively. KISIP’s
Implementation Plan is intended to be scalable and flexible and is an overview of the key activities under
each Component and the supporting/cross-cutting area. Each Component has its own detailed work
plan, which has been fed into the joint Programme Implementation Plan.
Annual Work Plan
The MoH will develop its own annual work plans according to the normal Government procedures in
preparing such plans and in assessing progress with implementation. The PIP will also be reviewed
annually to ensure that it is on course.
49
Phase I
ACTIVITIES
2010
Q3 Q4
Q1
YEAR 1
2011
Q2 Q3 Q4
Q1
Phase II
YEAR 2
2012
Q2 Q3 Q4
JOINT ACTIVITIES
Appraisal mission
Negotiations GoK - WB
WB Board decision - start of KISIP
WB bi-annual missions (joint w KMP)
Mid-term review
Closing date
COMPONENT 1 - INSTITUTIONAL
STRENGTHENING
Capacity building plan for MoH and LAs
Study tours and exchange visits
Training of MoH, MoL and LA staff
Review & devt of policies, frameworks etc.
Develop GIS data base on slums
Maintain data base on slums
COMPONENT 2 - TENURE SECURITY
Selection of phase I pipeline
Tender process for phase I
Implementation phase I
Methodology for slum inventory
Base maps for the 15 Las
Registry Index Maps in the 15 Las
Selection of phase II pipeline
Tender process for phase II
Implementation phase II
Selection of phase III pipeline
Tender process for phase III
Implementation phase III
50
Q1
YEAR 3
2013
Q2 Q3 Q4
Q1
Phase III
YEAR 4
2014
Q2 Q3 Q4 Q1
YEAR 5
2015
Q2 Q3 Q4
Q1
2016
Q2
Phase I
ACTIVITIES
2010
Q3 Q4
Q1
YEAR 1
2011
Q2 Q3 Q4
Q1
Phase II
YEAR 2
2012
Q2 Q3 Q4
COMPONENT 3 - INFRASTRUCTURE
Selection of phase I pipeline
Tender process for phase I
Study on per capita cost
Implementation phase I
Selection of phase II pipeline
Tender process for phase II
Implementation phase II
Selection of phase III pipeline
Tender process for phase III
Implementation phase III
COMPONENT 4 - PLANNING FOR GROWTH
Situation Analysis in the 15 municipalities
Studies on future growth
Review systems, standards etc.
Draft planning by-laws, building code etc.
Plans for redevelopment of council housing
Identify land for additional housing
Prepare housing development plans
CROSS-CUTTING ISSUES
Baseline survey
Community sensitisation and engagement
ESMF
Local EMP and RAP
Monitoring and evaluation
Financial management
Procurement and use of CTAP
51
Q1
YEAR 3
2013
Q2 Q3 Q4
Q1
Phase III
YEAR 4
2014
Q2 Q3 Q4 Q1
YEAR 5
2015
Q2 Q3 Q4
Q1
2016
Q2