Poverty Eradication Report

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10 Years of Fight Against Poverty (1999 - 2009)
A Report of
The Poverty Eradication Commission
Republic of Kenya
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Poverty Eradication Commission (PEC), November, 2009
Edited and Designed by: Noel Creative Media Ltd
A Report of the
Poverty Eradication Commission
Table of Contents
Secretarys Statement..............................................................................................................iii About This Report.....................................................................................................................iv Introduction.................................................................................................................................2 The Situation of Poverty in Kenya........................................................................................3 Government efforts to reduce poverty..............................................................................5 About the Poverty Eradication Commission....................................................................8 How PEC Operates (Organisational Structure)................................................................9 Key Milestones of the Poverty Eradication Commission........................................... 13 How PEC has performed . .................................................................................................... 14 External Evaluation of PEC................................................................................................... 19 Re-Engineering PEC................................................................................................................ 27 Poverty Reduction and Vision 2030.................................................................................. 29 Interim Activity Plan for Revamping PEC as proposed by the Task Force........... 39
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Secretarys Statement
ith nearly half of the Kenyan population still below the poverty threshold, the war against poverty is still far from being won. Given Kenyas geographic diversity, more strategies need to be developed and institutions charged with this task strengthened and empowered to work. As we review PECs performance in the first decade of its existence, it is evident that a number of challenges and bottlenecks prevented the Commission from achieving its mandates. These challenges need to be addressed if the country is to make progress in addressing poverty. On behalf of the Commission, I would like to thank the Government for making frantic efforts to revitalise the Commission through the external evaluation exercise and in establishing a task force to advise on ways to revamp the Commission. The Commission is looking forward to seeing the Government implement the recommendations of the Task-Force so that the Commission is back on its feet to effectively play its role as the leading institution in coordinating the fight against poverty in Kenya.
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About This Report
his report provides information about the Poverty Eradication Commission (PEC) and how it has grown since inception in 1999. It also constitutes part of a Call to Action to all of PECs stakeholders in the fights against poverty. It was produced following an external evaluation of PEC and the subsequent formation of a Task Force that the evaluation recommended to explore ways of re-engineering the Commission after 10 years of existence. It contains six main sections namely: The Situation of poverty in Kenya; Government Efforts to reduce poverty; About the Poverty Eradication Commission (PEC); How PEC Operates; Key Milestones of PEC since inception; External Evaluation of PEC; Re-Engineering PEC; Poverty Reduction and Vision 2030 and; Interim Activities for Revamping PEC as proposed by the Task Force. It is a quick reference guide for anyone interested in learning about this important institution and the rationale for its establishment. Importantly, it demonstrates the Governments determination to ensure that PEC gets the capacity to achieve its mandate in line with Kenyas long term development blueprint: Vision 2030. The report has mainly been informed by a number of documents including a report by the National Poverty Eradication Plan (NPEP), Kenya Institute of Public Policy Research and Analysis (KIPPRA, March 2003), a PEC publication titled The People Can Do It (2006), The Draft PEC Strategic Plan (2005 2008), Vision 2030, the Millennium Development Goals, the PEC External Evaluation Report (2008) and the Report by the Task Force for Re-Engineering PEC (2009). Others were documents produced by PEC over the years namely: First Year Review Report of PECs Operations (April 1999- July, 2000); Experiences of PEC in Supporting Specially Targeted Community-Based Poverty Initiatives (2001 - 2002) and; Working With Poor Communities: A Focus on Revolving Loan Fund (July 2003).
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Calling poverty stakeholders to action
his report is part of a larger information package aimed at reaching out to PEC stakeholders and to call them to action to support the work of the Commission. A Popular Version of this report along with a range of other collateral information, education and communication (IEC) materials will be produced as a way of supporting PECs outreach and marketing. Key stakeholders of PEC are the following: Sector ministries: PEC plans to engage with other sector ministries in order for it to effectively coordinate national anti-poverty work. Development partners: Since the task of eradicating poverty is enormous, PEC will reach out to development partners for additional resources and for sharing information to ensure a more focused fight against poverty. The corporate sector: the corporate sector controls vast resources. Many companies desire to be good corporate citizens but often fail to find credible partners to enable them meet their corporate social responsibility aspirations. PEC plans to reach out to them as a partner in this context. The media: PEC desires to have its work supported by the public. It therefore plans to work more closely with the media in publicizing its work. Civil society: a wide range of civil society actors are involved in poverty work in different parts of Kenya. PEC plans to reach out to them in order to explore ways of harnessing their strengths and minimizing duplication of effort. Poverty coordination bodies in other countries: PEC will strive to identify and form alliances and networks with poverty coordination bodies in other countries as a way of sharing its own learning while learning and applying best practices.
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PECs stand at the Nairobi ASK show in 2008
PEC
A Report of the Poverty Eradication Commission
The Poverty Eradication Commission
Introduction
he poverty Eradication Commission (PEC) was established as a Presidential Commission through Gazette Notice No. 2295 of 30th April, 1999 with a wide range of mandates sumarised as follows:
1. To promote policies and pilot strategies for eradicating poverty in Kenya. 2. To coordinate poverty eradication activities undertaken by various actors, both governmental and non-governmental throughout Kenya. 3. Identify and demonstrate poverty eradication initiatives on a pilot basis. 4. To mobilize and manage resources for direct poverty reduction activities with a strong focus on the poorest section of the population. 5. To monitor and evaluate poverty eradication programmes nationally. Following the 2002 General Elections the Commission remained inactive. In 2003, the National Rainbow Coalition (NARC) Government moved the Commission to the then Ministry of Planning and National Development from the Office of the President and appointed new membership through Gazette Notice No. 9496 of 3rd December, 2004. The formation of PEC can be traced to the UN World Social Summit (WSSD) which was held in Copenhagen, Denmark in 1995. One of the resolutions passed by member states was the need to reduce absolute poverty by half by 2015. Member states were to prepare poverty -specific plans to attain this goal. Kenya produced its plan - National Poverty Eradication Plan (NPEP) in 1999 and the Commission was appointed to spearhead its implementation with the above mandates.
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The Situation of Poverty in Kenya
he number of poor Kenyans increased substantially over the ten-year period 1999-2009. Poverty profiling in Kenya can be traced back to 1992, where the number of poor people in Kenya was estimated at 11.3 million (44.8% of the total population). It rose to 13.4 million (52.3%) in 1997 and further to 17 million in 2000 (56% of the population) before declining slightly to 46% in 2005/2006. This however still translated to nearly 17 million Kenyans living in poverty and taking into account the post election violence of 2008 and the drought that hit the country thereafter, poverty levels have remained stubbornly high to date. Studies show that most poor people in Kenya live in rural areas. In 2001, of the 17.2 million poor Kenyans, 14 million (82%) were in rural areas and 3 million (18%) in urban slums. There is a direct linkage between poverty and hunger. Looking at the different regions in Kenya, those with high levels of poverty also have large numbers of the population suffering hunger. In Mandera for example and in many other arid and semi-arid lands (ASAL) where poverty levels were as high as 89.1% in 2005, many more people faced hunger compared to a district like Kiambu where the level of poverty was 21.6%. Evidence of poverty in the heavily affected districts includes: difficulty in getting to health care centres; food shortages; high levels of unemployment and underemployment; lack of access to education and; lack of access to land. The section of the population hardest hit by poverty comprises women, unemployed youth, orphans and people with disabilities.
Causes of poverty
High poverty levels are caused by a number of factors which include: poor physical infrastructure, particularly roads, resulting in poor access to markets; low returns from agriculture; lack of industries and hence lack of employment; lack of access to capital and high interest rates levied by commercial banks and other financial institutions and; high cost of inputs resulting in poor application of fertilizer, other farm inputs as well as use of poor quality seeds. In some areas of the country such as West Pokot, Tana River, Wajir and Garissa, insecurity contributes significantly towards rising levels of poverty.
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Evidence of poverty in the heavily affected districts includes: difficulty in getting to health care centres; food shortages; high levels of unemployment and underemployment; lack of access to education and lack of access to land. The section of the population hardest hit by poverty comprises women, unemployed youth, orphans and people with disabilities.
Other indirect causes of poverty are: the HIV/AIDS pandemic and other diseases such as malaria and tuberculosis and; gender inequality due to some cultural and traditional values that prevent women especially from achieving their full potential. For example, many cultures do not allow women to own assets such as land or even livestock. This constrains their ability to access credit from financial institutions. The destruction of the natural environment is another important contributor to high levels of poverty. Environmental degradation through practices such as cultivation and over-cultivation along river banks and extensive use of wood fuel including charcoal burning, which lead to deforestation and loss of fertile topsoil throught erosion.
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Government efforts to reduce poverty
uccessive governments have been trying to tackle poverty since independence. These efforts began through Sessional Paper No. 10 of 1965 in which the government identified poverty as one of the three enemies of development, the other two being ignorance and disease. In its subsequent plans and blueprints, the government has realized that only through sustained economic growth can national wealth be created to provide the means to eliminate poverty. The first approach that the Government took was in the form of long term measures to increase savings, raise the level of national wealth (Gross Domestic Product), increase levels of economic growth and control population growth. It also put in place short term measures such as rural public works. Whereas a high rate of economic growth was achieved during the first ten years following independence, these levels were not sustained particularly during the mid- and late-1980s. Poverty levels reached their peak in 2000 when 56% of Kenyans lived on less than 1US$ per day.
On-going Antipoverty Programmes

The rest of this section profiles the key actors in the fight against poverty in Kenya. Though the analysis focuses on what are considered to be the main actors, it is recognized that the actual number of players is much more and the contribution of each remains equally important. The section starts by highlighting the key organisations implementing poverty focussed programmes, and ends up analysing the existing coordination mechanisms.
Core Poverty Programmes (CPP)

The Concept of core poverty was first introduced in the MTEF budget cycle in 2000/1 FY. The CPP are meant to impact positively on the lives of the poor. These include programs that would directly create employment, provide access to basic social needs such as education and health among others and promote equity and equality. These programmes are given high priority by the government and are cushioned against budget cuts to ensure that the goals are achieved as planned.
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Other recent new areas of focus with core poverty expenditures include programmes on: social protection, the disabled, the Orphans and Vulnerable Children (OVCs), the unemployed youth, the elderly, the chronically poor households, income generating activities, and public works programmes.
The District Focus for Rural Development Strategy

Presently, development programmes at the district level are coordinated within the District Focus for Rural Development Framework. The DFRD strategy is based on the principle of a complementary relationship between ministries with their sector approach to development and the districts with their integrated approach to addressing local needs. Under the Strategy, districts were made the centre of development, with greater autonomy in setting their priorities in line with the bottom-up planning principles. This was a major shift from previous top-down strategy where ministries did the budgeting and planning for the district.
The Constituencies Development Fund (CDF)

The CDF was established under the CDF Act 2003 and CDF (Amendment) Act, 2007 as a development initiative to address social poverty in the country. The projects that are fundable under the CDF must be community-based in order to ensure that the prospective benefits are available to a wide spread cross section of the inhabitants of a particular area. Since its establishment the Fund has received Kshs 43.252 billion from the government. Currently, the Fund accounts for 3% of the government Development Vote. The Fund is expected to accelerate the achievement of the Millennium Development Goals (MDGs) thus improving the standards of living especially for the poor.
Local Authority Transfer Fund (LATF)

The Local Authority Transfer Fund was established in 1999 through the LATF Act No. 8 of 1998, with the objective of improving service delivery, improving financial management, and reducing the outstanding debt of local authorities. The Fund comprises 5% of the national income tax collection in any fiscal year, and currently makes up approximately 24% of local authority revenues. At least 7% of the total Fund is shared equally among the countrys 175 local authorities while 60% of the Fund is disbursed according to the relative population size of the local authorities, with the balance being shared out based on the relative urban population densities.
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Youth Enterprise Development Fund

The government launched the Youth Enterprise Fund on February 1, 2007 with the purpose of reducing unemployment among the youth, who account for 61% of unemployed in the country, by addressing the socio-economic challenges they face. It envisages that more youth enterprises will create economic opportunities for unemployed youth. The government has so far released Kshs 1.75 billion to the fund with a further commitment of Kshs 500million in the financial year 2008/09. As at 30th June, 2008, a total of Kshs 1.3 billion had been disbursed to 45,215 youth enterprises in the country.
Women Enterprise Development Fund

The Women Enterprise Fund was conceived in December 2006 as a government strategy to address poverty through socio-economic empowerment of Women. In the 2007/08 annual budget, the government set aside Ksh.1 billion towards the Fund. The broad objective of the Fund is to facilitate enterprise development initiatives among women through the disbursement of loans via a revolving credit Fund. The Fund is dispersed through Micro Finance Intermediaries and Constituency Women Enterprise Schemes targeting viable women group enterprises.
Community Development Trust Fund (CDTF)

CDTF is a joint venture between Government of Kenya (GoK) and European Union (EU). It was initiated in 1996, with a view to establishing an integrated approach to poverty alleviation.
Njaa Marufuku Kenya (NMK)

Njaa Marufuku Kenya (Kiswahili for Eliminate Hunger in Kenya) is a programme formulated and implemented by Agriculture sector ministries in collaboration with ministries of Education, Health and development partners to fast track the fulfilment of MDG-1 (reducing the number of poor and hungry by half by 2015). The goal is to contribute to reduction of poverty, hunger and food insecurity among poor and vulnerable groups in Kenya by 2015. Its interventions are geared towards increased productivity, generation of rural incomes, health and nutrition improvement and conservation of natural resource base. Other devolved funds earmarked for fighting poverty include Constituency Roads Maintenance Levy Fund (RMLF), Constituency Bursary Fund (CBF) and Constituency AIDS Fund among a number of others.
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About The Poverty Eradication Commission
PEC
VISION
The Vision of the PEC is To be an effective leader in the eradication of all forms of poverty.
MISSION STATEMENT
The Mission of the PEC is To empower Kenyans in the eradication of poverty through formulation of policies, advocacy, resource mobilization and stakeholders coordination. PEC shall carry out comprehensive, integrated research, documentation, dissemination and piloting of anti-poverty initiatives on best practices.
CORE VALUES
The core values of PEC are grounded on the belief that people and communities are active participants in their own development and liberation from poverty. In this respect the organization embraces and upholds the following values: Professional Integrity: All PEC staff shall uphold the highest standards of professional competence and integrity Passion for Results: PEC will relentlessly pursue the attainment of set targets at all levels in a timely manner Participatory Approach: Direct participation by the poor in decision making and recognition of indigenous knowledge as a prerequisite to combating poverty. PEC will involve all relevant stakeholders in the implementation of its activities and programs Commitment toTeamwork: PEC is dedicated to team work, collaboration and networking in achieving desired results Commitment to welfare of the Poor: PEC will strive to create incentives, motivate and support the poor to create wealth for themselves and share scarce resources Innovation and Visionary: PEC is committed to support innovation, produce products and market them for the benefit of the poor Transparency and Accountability: PEC will conduct its business in a transparent, honest and accountable manner Ethical: PEC shall promote the highest ethical standards. Dignity: PEC advocates respects for one another regardless of age, gender, faith, education or race, personal integrity and mutual interest in all spheres of life.
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How PEC Operates
(Organisational Structure)
urrently the PEC operates as a unit of the Ministry of Planning National Development and Vision 2030 (MoPND & Vision 2030).
Mandate of PEC under the Gazette Notice N0. 2295 of April 1999
Coordinate, monitor and oversee poverty eradication by various organizations in Kenya Define enabling policy options requirements for implementation of poverty eradication in Kenya Develop strategic sectoral policies and assist key sector ministries to define and develop sector-based programmes for poverty eradication in Kenya Coordinate national media campaigns against poverty Undertake resource mobilization and management of funds for financing direct poverty reduction actions especially in rural and peri-urban areas Oversee the establishment of explicit poverty reduction priorities at the district level Initiate poverty forums at all administrative levels to monitor NPEP implementation and promote poverty reduction coordination Undertake demonstration of poverty reduction operations in various districts and set standards on poverty reduction information dissemination within government agencies. This includes advising the government on the implementation of NPEP Selection of priority geographical sector targets for poverty reduction
PEC Commissioners
The Minister for PND & Vision 2030 appoints PEC Commissioners whose role is to articulate policy issues on poverty eradication, advise the Government on the functioning of poverty policies as well as provide projects management guidance and promotion activities to District Poverty Eradication Committees (DPECs) and community beneficiaries. Other functions include resource mobilization and advocacy on poverty reduction initiatives nationwide.
The Secretariat
The Secretariat is headed by the Executive Secretary, who is charged with overall administration and management of day-to-day activities of the Commission including coordination and liaison with PECs supporting institutions at district level. The Executive Secretary reports to the Permanent Secretary.
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PEC staff pose for a photograph with the Minister for Planning Hon. Wycliff Oparanya, PS Dr. Edward Sambili, PEC Chairman John Koech and Economic Planning Secretary, Stephen Wainaina in January, 2009.
District level supporting institutions

There are two major supporting institutions at the district level namely: District Poverty Eradication Committees (DPECs) and Financial Intermediaries.
District Poverty Eradication Committees (DPECs)

The DPEC is the most crucial PEC focal point at the district level which is being piloted by the Commisison to spearhead the fight against poverty at the grassroots level. In most cases DPECs have been made up of the following: DDO Chairman of the working committee DSDO Secretary to the DPEC Community representative (1) Representative of farmers and the business community* (1) Representative of widows and orphans (1) Representative of Financial Intermediary (1)
*It is notable that this composition is not rigid and can vary depending on the district. For example, a military officer is a DPEC member in West Pokot due to frequent cattle raids by Uganda militiamen. In Nairobi, the District Trade Officer seats in the DPEC in place of the District Agricultural Officer because there is no significant agricultural activities undertaken in Nairobi.
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Representative of CBO/NGOs (1) Representative of the Provincial Administration (1) PEC has often recommended a community representative to be the Chairperson of DPEC to ensure sustainability. The responsibilities of DPECs are as follows: Management of PEC programmes in the district. Mobilisation and capacity building of community groups. Sensitisation of community groups on the need for internal resource mobilization. Monitoring PEC-inspired projects and programmes such as the Rapid Results Initiatives for poverty eradication. Assessment and evaluation of impact of PEC-supported projects and programmes on the socio-economic welfare of individual households and communities. Documentation of performance and impact of PEC supported projects and programmes for wider dissemination and discussion with all relevant stakeholders. Articulate poverty issues at the district level.
DDO Bondo Mr. Alex Muthioyi and other members of Bondo District Poverty Eradication Committee receiving an RLF cheque from the former PEC Chairman, Dr. Gilbert Oluoch.
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According to the guidelines of PEC, the following criteria are applied in selection of DPEC members: The interests of special groups such as widows, people with disabilities or youth Local administrative units Geographical scope (urban/rural) Gender Representation needs of NGOs or CBOs Recent guidelines on DPEC membership have brought in representatives of the devolved funds. This is expected to make DPEC active particularly in coordinating poverty programmes in a district.
Current PEC Organisational Structure

MoPND and Vision 2030
PEC Commissioners
PEC Secretariat
District Poverty Eradication Committees
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Key Milestones of the Poverty Eradication Commission

Year 1999 Milestone The Government launches the National Poverty Eradication Plan (NPEP) and establishes Poverty Eradication Commission (PEC) through Gazette Notice No. 2295 of 30th 30th April 1999 to oversee the implementation of the Plan (NPEP). PEC starts piloting area-based approach to financing development programmes where social projects were initially targeted. Through PECs initiative, the Government gazettes the Anti-Poverty Trust Fund (APTF) through Legal Notice No. 103 of 15th June 2001. PEC starts piloting a Revolving Loan Fund (RLF) as an initiative to provide soft credit to the unbankable poor. PEC holds its first strategic review and planning workshop to re-examine its Terms of Reference Reorganization of government after the December 2002 general elections takes PEC to MPND from OOP. The Secretariat, Poverty Eradication Unit (PEU) is turned into M&E department in the MPND. The Ministry of Planning and National Development through Kenya Institute of Public Policy Research and Analysis (KIPPRA) undertakes an exercise to harmonise activities of PEC and Poverty Reduction Strategy Paper (PRSP)/Medium Term Expenditure Framework (MTEF Secretariat) and placement of PEC within the Government. KIPPRA recommends that PEC be placed within either the then Office of the Vice President Ministry of National Reconstruction or the then Ministry of Planning. The successful piloting of the area-based approach and advocacy for devolved funding leads to Parliament passing a parliamentary act creating the Constituency Development Fund (CDF). New PEC Commission membership is appointed through Gazzette Notice No 9496 of 3rd December 2004. PEC holds a retreat to develop a startegic plan for 2005 - 2008 PEC starts piloting growing of Grain Amaranth growing as a strategy to alleviate income poverty for small holder farmers. PEC prepares a Status Report on the pilot RLF titled The People Can Do It. The report establishes that the pilot phase of the RLF disbursed Kshs. 106 million to 1,186 community groups in all the eight provinces and achieved a repayment rate of 96.7%. PEC starts piloting district table banking services in Thika and Bondo districts as a strategy for boosting loanable funds to community groups for income generation. The Government commissions an external consultant to evaluate PECs performance New membership to the Commission appointed with Lt. Gen. John Koech taking over the Chairmanship from long-serving Dr. Gilbert Oluoch. The report of the external evaluation of PEC is completed and recommends upsacling of RLF strategy since the recently established government programmes to address income poverty (Youth and Women funds) were not targeting the poor. The Government, through the Permanent Secretary, MPND & Vision 2030 constitutes a Task Force to re-engineer the PEC following recommendations of the external evaluation report PEC Re-engineering Task Force submits its report to the MPND & Vision 2030 recommending drastic changes including making PEC Semi-Autonomous Government Agency (SAGA). Government makes first move on the recommendation of the Re-engineering Task Force to impove PECs budget. Development budget increased from Kshs. 10 million to Kshs. 100 million. June 2000 2001 2002 August 2002 2003
March 2003
2003 November 2004 2005 September 2005 2006
2007 March 2007 August 2008
October 2008 April 2009 June 2009
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How PEC has performed

Members of Gakaki community group in Muranga lay a water pipe in one of the projects initially supported by PEC in 2001
PEC Programmes
ince its inception in 1999, the Commission has been identifying, demonstrating and piloting poverty eradication initiatives aimed at fighting poverty. Among the initiatives include:
Area Based Approach

One of the policy reforms that the PEC advocated for in its search for more appropriate strategies for poverty eradication is the area based approach. The approach entails wide participation in the identification, design and implementation of development projects and programmes by the people of a particular area. It also involves devolved funding and creating or identifying appropriate grassroots institutions to manage the funds. The Commission piloted the area based strategy using a number of social projects, mainly in health, education and water. The area based approach to poverty eradication was accepted and adopted by the Government through the creation of the Constituency Development Fund
Revolving Loan Fund

The poor require credit to finance their income generating activities. However, they are neither able to access credit from formal banks nor from most microfinance institutions due to long distances, high charges and interest rates and conditionalities which they cannot meet. PEC has therefore been piloting a government supported Revolving Loan Fund (RLF) to cater for the poor. The pilot programme is funded by the Kenya Government through grants given to PEC and then loaned to poor people through the District Poverty Eradication Committees (DPECs), Financial Intermediaries and community groups By 2006, a total of Kshs. 105,927,238 had been released for loaning to individuals in well organized groups. The pilot has been successful in most areas and the strategy
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Customers queue for services at Narok Jua Kali SACCO. Narok Jua Kali benefitted from PEC support and has grown to start banking facilities. In the background is a hire purchase shop owned by the same group.
accepted by the Government. Modalities are being worked on to find a permanent home for it and to up-scale it.
Financial intermediaries
Financial Intermediaries (FIs) are mainly drawn from established local financial institutions, Faith-Based Organisations and Savings and Credit Co-operative Societies (SACCOs). Their primary duty is to receive and disburse PEC funds to the beneficiary groups and to manage loan recovery on behalf of DPECs as well as to facilitate savings by individual groups. Ideally, the FIs operate joint accounts with individual community groups and the DPECs. The FI is also charged with the responsibility of carrying out training of basic book keeping within groups. Their role includes provision of technical, administrative and capacity building support to ensure that the RLF is managed within acceptable professional standards and that the benefits to communities and groups are maximized.
Community groups and individual beneficiaries

Community groups are the primary managers as well as beneficiaries of PECs RLF. They are therefore the core targets of PECs interventions since majority of the poor live in rural areas and urban slums. Empowering community groups both socially and economically is therefore likely to uplift individual households towards a better standard of living and therefore constitutes a major step towards addressing national income poverty and employment creation.
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District Table Banking Services (DTBS)

District Table Banking is an innovative approach for boosting funds for business for low income earners. The practice is flourishing in countries like Malaysia where poverty has been reduced through such approaches to about 3%. Other than those with no capital to start income generating activities, and which are being taken care of by the RLF approach described above, the Commission is piloting this strategy as an alternative to boost funds available for borrowing to the poor who are already in business. Table banking is a micro-finance approach which provides both savings and credit services to low income earners. On a given date in a month members place their savings and loan repayment on the table and immediately borrow all the monies. Savings include monthly contributions for welfare purposes, membership fees and any acrued fines among others. Initial capital comes from the members. However, the Government provides further funding to boost the capital and pay for social mobilization and administration services in the early stages. The Governments funding is a loan to the DTBS payable within 3 years.
A group of RLF beneficiaries applying the table banking concept, a strategy being piloted by PEC to boost groups savings.
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The DTBS is currently being piloted in Thika and Bondo districts. The piloting will be expanded to 17 other districts before being scaled up nationally.
Smallholder Commercial Farming Since 80% of Kenyans living below the poverty line are smallholder farmers, the Commission sought strategies that would enable these smallholder farmers to increase their incomes. It settled on a strategy which entails identifying early maturing high value crops with ready and reliable market which smallholder farmers can grow individually and sell collectively so as to obtain commercially viable quantities.
The Commission considered several crops to use in trial and piloting and settled on Grain Amaranth. This is a non-grass cereal which was gazetted in Kenya through Legal Notice No. 281 of 19th July, 1991. It is early maturing (45-75 days), drought, pests and disease resistant. It has high nutritional and medicinal values and produces highly valued cooking, industrial and pharmaceutical oil. It has a huge domestic and external market. With its little funds, the Commission has managed to extend the pilot to 25 districts in the country targeting few farmers.
Grain Amaranth farmers selling their produce in Bondo District.
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A field of fully grown grain amaranth, shortly before harvesting (Shift picture to section on How PEC had Perfomed)
Since agriculture is by far the largest source of gainful employment in Kenya and will continue to be so, this strategy is proving to be a powerful poverty reduction mechanism.
Anti-poverty Trust Fund

To address its key objective of mobilization and management of funds for direct poverty reduction activities, PEC advocated for the creation of the Anti Poverty Trust Fund (APTF) and managed to have it established through Legal Notice No. 103 of 15th June, 2001. However, the APTF is yet to be operationalized. The founders were Government of Kenya, Kenya National Chamber of Commerce and Industry, German Development Agency (GTZ), Northern Aid, Supreme Council of Kenya Muslims, Rotary Club (Kenya), National Council of Non-Governmental Organizations and Action Aid (Kenya)
The Commission considered several crops to use in trial and piloting the strategy and settled on Grain Amaranth crop. This is a non-grass cereal which was gazetted in Kenya through Legal Notice No. 281 of 19th July, 1991.
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External Evaluation of PEC
eradication interventions. The overall objective of the evaluation was to undertake a comprehensive review and assessment of the performance of PEC and to determine whether PEC had fulfilled its mandates and core functions as per the expectations of the Government. At the same time, the evaluation aimed to assess any gaps, constrains and challenges that might have inhibited the Commission from attaining its mandate during its seven years of operation.
n 2007, the Government commissioned a team of external consultants to undertake an external evaluation of PEC. The evaluation focused on the achievements and lessons learned by PEC in piloting of national poverty
(a) Objectives of the Evaluation were to:

Assess the extent to which the Commission had fulfilled its mandate and identify any bottlenecks it might have been facing. Assess performance of PEC pilot Revolving Loan Fund (RLF) and other Commission ventures to determine their viability, sustainability and reliability. Propose how the Governments role in enhancing access to affordable credit to the poor in rural areas and urban slums could be more consistent with a free market economy through public-private partnerships. Recommend measures that would effectively fight income poverty particularly in rural areas. In view of recent developments that focus on poverty issues within the context of the MDGs and within the framework of the then Government economic blueprint - the Economic Recovery Strategy for Wealth and Employment Creation (ERS), evaluate the capacity of PEC to coordinate and guide other Government devolved funds such as CDF, Local
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Authority Transfer Fund (LATF), Constituency Bursary Fund, HIV/AIDS Grants to Community-Based Organisations (CBOs) and funds for small scale agriculture such as Njaa Marufuku and others, to fight poverty. Make recommendations on the way forward for a revamped PEC to be addressed by the Government and to ensure sustainable implementation of the Commissions work.
(b) Key findings and recommendations of the evaluation

i. Coordination In Kenya, poverty eradication is addressed through various stakeholders sector ministries especially those charged with implementing the Social Pillar in regard to equity and poverty reduction in Vision 2030, development partners, NGOs, CBOs and FBOs among others. However, apart from the MPND & Vision 2030 that coordinates general development activities, there is no single institution that has been empowered to coordinate various poverty stakeholders on poverty eradication. Recommendation Given the lack of coordination of the many national poverty efforts observed during the evaluation, a revamped PEC is the appropriate avenue for coordination and monitoring the performance of poverty eradication activities across sectors and stakeholders.
ii. Mandate of PEC

The evaluation found that PEC had fallen short of its broad mandate, except for that of piloting pro-poor strategies particularly the social projects and the Revolving Loan Fund (RLF). Recommendation Considering the mandate and the enormous task of the Commission in spearheading national poverty eradication initiatives, the Government should appoint a permanent commission to address poverty. The revamped commission should translate PECs mandate and priorities into strategic plans for implementation and coordination in line with the Governments social pillar as stated in the NPEP, MDGs and Vision 2030. iii. Autonomy of PEC The Commission underwent a lull after the 2002 general elections until 2004 when it was reactivated through Gazette Notice 9496 of 3rd December 2004 and moved to the MoPND. New Commissioners were subsequently appointed. The evaluation found that the effect of the two-year period of uncertainty resulted in disruption of the PECs functions that included monitoring and follow up of the pilot RLF. As a result, some defaults in repayments occurred.
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Recommendation A re-constituted PEC should be a Semi Autonomous Government Agency (SAGA) devoid of Government day-to-day supervision and should operate through its own strategic plans with adequate staff at the Secretariat to implement its programmes and activities. The mandate, roles and responsibilities of DPECs should be equally defined and entrenched into PECs mandate and structure. Currently, DPECs link with PEC is through administrative rather than legal arrangements. iv. Policy support The Commission derives its policy support from the provisions of Gazette Notice No. 2295 of 30th April 1999. It remains a unit of the MoPND & Vision 2030. As a result, its active participation in various key poverty related policies and resource allocation processes has been minimal. For example, linkages with the ongoing Strategy for Revitalization of Agriculture, Njaa Marufuku and other poverty eradication activities in other ministries are non-existent. Recommendation The Government should take firm policy positions towards empowering the PEC to be part of national poverty eradication decisions and even to coordinate the efforts in line with its mandate. There should be a major policy and structure shift to re-engineer the role and composition of the Commission from the current organizational structure to a fullfledged semi-autonomous institution with sufficient mandate to plan and mobilize resources independently. v. Institutional and organisational structure Apart from the Commissioners, who are directly appointed by the Minister, staff members at the Secretariat are drawn from the MoPND & Vision 2030. In essence, PEC operates as a department of the Ministry. Yet under the Gazette notice establishing it, the Government intended to create an independent, robust poverty eradication commission with a responsive institutional structure reflecting key thematic areas of poverty projects planning, management, coordination, monitoring and evaluation. The evaluation found that the current staffing at PEC is not guided by job descriptions reflecting the programmes it undertakes. As a result, the Commission has not been able to establish strategic partnerships for resource mobilization and linkages with other implementers of poverty eradication programmes including the private sector, civil society and development partners.
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Recommendations In addition to re-structuring the PEC in a manner described above, there is need to operate district-based secretariats managed by PEC staff to facilitate community-based projects management including record keeping, monitoring and timely reporting of progress to PEC headquarters in Nairobi. The district-based secretariats would facilitate the linkage of the PECs activities with other sectors and stakeholders at district level.
Proposed PEC Organisational Structure as per the external evaluation

GoK/MoPND and Vision 2030 Ministerial Steering Committee Commissioners
PEC Secretariat
Monitoring and Evaluation Department
Resource Mobilisation Department
Programme Mangement Department
Planning and Policy Implementation
District Poverty Eradication Committee - Management of PEC Funds in the District - Coordination and Capacity Building - M&E of PEC Inspired Projects and Programmes
Beneficiaries/Community Groups CBOs Local Youth Organisations Womens Organisations Windows and Orphans PLWHAS
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A Report of the
A participant gives her views during a stakeholders forum to discuss PECs external evaluation report at Safari Park hotel in Nairobi.
vi. Commissioners The evaluation established that the appointment of the current 17 Commissioners was based more on geographical representation as opposed to skills which should not be the case in light of PECs need to take a multi-sectoral approach to its work. The evaluation could not establish the justification for appointment of such a large Commission. At the same time the Commissioners tenure, roles and responsibilities have not been articulated into measurable strategies and actionable plans. Recommendation The evaluation recommended the reduction of Commissioners from 17 to 10. Also, its membership should comprise of the following: Individuals drawn from all the provinces with selection based on skills in management, leadership and knowledge of community development Representatives of the private sector Gender representation Representative of Faith-Based Organisations Three ex officio members from relevant ministries particularly permanent secretaries of MPND & Vision 2030, Finance and State for Special Programmes A technical advisor who is also an expert of poverty and/or institutional management vii. Resource support It was established that PEC operates with a very limited budget drawn mainly from the Governments annual funding through MTEF budget allocation process. The Commission has not attracted external donor funding for its activities. This is in contrast with poverty initiatives in other sectors. For example the Arid Lands Resource Management Programme (ALRMP) has an estimated US$60 million programmes budget support from external partners. Its parent ministry, the Ministry of Agriculture (MoA) has a huge external multi-dollar programme support resource envelope under its Agriculture Programme Facility (APSF) from various development
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partners for implementation of the Strategy to Revitalize Agriculture (ARS) and Njaa Marufuku. Additionally the MoA enjoys considerable external support towards the implementation of MDGs among other initiatives. The Government itself has established several lines of credit for funding poverty reduction initiatives through various groups such as CDF, the Womens Development Fund; Youth Development Fund, LATF and the Community Development Trust Fund (CDTF). Recommendation After the re-organisation of PEC, the Government should increase financial resources to the Commission either by direct budgetary allocation on the basis of a certain percentage of revenue collected or facilitate access to funds from other sources. The evaluators recommended that the government should allocate 1% of its annual revenue to the Commission. Pilot revolving loan scheme Although the RLF is PECs most successful intervention, allocations for it are far too low. According to the evaluation, there is need to increase not only the fund itself but allocation for project management and training by at least 50%. From a total of Kshs. 105,927,238 allocated by the Government for the RLF by 2006, Kshs. 41.3 million or 39% had been repaid to the DPECs for further allocation, while Kshs. 61.2 million was still circulating within various groups reflecting 57.7%. The amount defaulted amounted to only Kshs. 3.5 million.
Lt. Gen. John Koech, PEC Chairman, hands over a cheque to a beneficiary of the Revolving Loan Fund.
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A Report of the
As a result of the RLF, the following was noted: The RLF has created gainful self employment, income and food security to individual borrowers, hence made some positive impact to the beneficiaries.
The RLF has been successful in improving the welfare of poor people. It was found that PEC directly benefitted 25,000 poor households country wide. Recommendations Since they are not defined, the PEC should set clear criteria for selecting beneficiaries of the RLF. The PEC RLF strategy should be strengthened through provision of adequate funds to increase the number of beneficiaries and to help PEC address management weaknesses identified above. The allocation to RLF should be increased and be pegged to a percentage of annual revenue collected by the Government. The evaluation recommended that at least 1% of Government annual revenue be allocated to the RLF.
Options for strengthening the RLF

The evaluation explored two options for strengthening the RLF namely: to make the AntiPoverty Trust Fund (APTF) operational or creation of District Community Banks (DCBs). Anti Poverty Trust Fund The APTF was established through legal Notice No. 103 of 15th June 2001. However, it has not been made operational. It has two main objectives, firstly to provide grants for social projects and to provide soft credit to communities groups set up by the poor. The creation of CDF in 2003 addressed APTFs first objective of funding social projects. However the second objective of facilitating access to affordable credit by the poor (income poverty) has not been adequately addressed. As noted elsewhere, RLF has not been provided with adequate financial resources nor has PEC itself been given requisite autonomy to enable it to independently mobilize resources from development partners. Since the RLF has demonstrated a clear impact towards alleviating income poverty at community level during the pilot phase, there is a strong case for it to be scaled up to increase its access and national coverage. An easy way of scaling up the RLF is to make the APTF operational, a decision that should be easy given that the APTF has an already existing policy and legal backing through a Gazette Notice (Kenya Gazette Supplement No. 48 Legal Notice No. 103 of 15th June 2001).
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Although not directly under the PEC, the APTF will be independently managed by professionals. It should however hold special links with the Commission such as through having PEC provide it with initial policy and operational guidelines. The Fund will also delegate important functions to the DPECs such as dissemination of information, sensitization of local communities and capacity building. The Chairman and Secretary of PEC should serve on the Board of Trustees of APTF. The APTF will enable poor people through community groups to access funds to facilitate income generation through provision of credit. It will also provide an entry point to poor communities to benefit from economies of scale provided by other government devolved funds. Recommendations The evaluation made the following key recommendations regarding the APTF: The government should allocate 1% of its annual revenue to enable PEC to scale up the RLF. The RLF should be channeled through the Fund and managed under laid down rules and regulations of the RLF. APTF grants should be made flexible in order to be accessible by the poor.
District Community Banks The evaluation found that PEC had been exploring the concept of District Community Banks (DCB) as another option to channel the RLF to the poor. The idea emerged after realization that the poor have little access to banking services or even those of SACCOs owing to the requirement for collateral or existing savings. Given the challenges facing the RLF detailed elsewhere, the idea of establishing DCBs was explored during the evaluation and found to be another feasible option towards graduating the RLF to a more focused financial institution for promoting access to affordable credit by the poor. Additionally, the DCB would provide an alternative avenue for the government to effectively harmonise other poverty-related devolved funds.
26
A Report of the
Re-Engineering PEC
ollowing the recommendation of the external evaluation in August 2008, the Permanent Secretary MoPND & Vision 2030 constituted a Task Force to Re-engineer PEC. The Task Force was established on 3rd September 2008. It
was composed of technical officers from the Attorney Generals Chambers (State Law Office), the Ministry of Finance, Ministry of Gender, Children and Social Development, Permanent Public Service Remuneration Review Board, UNDP, Action Aid (Kenya), Kenya Private Sector Alliance (KEPSA), Africa Centre for Engineering Social Solutions and Rural Planning Directorate of the MoPND & Vision 2030. The Task Force had the following Terms of Reference: Redefine/revise the mandate of the Commission, including its roles and responsibilities Redefine how PEC should work in line with Vision 2030 and its Medium Term Plan, its legal status, tenure and composition. Advise the Government on mechanisms for harmonization and coordination of national poverty eradication initiatives with the aim of attaining synergy and efficiency in utilization of scarce resources and identify capacity needs to enable the Commission to implement these initiatives. Define the roles of District Poverty Eradication Committees and assess their capacities to coordinate multi-sector poverty alleviation activities at the district level. Advise the government on resource mobilisation for PEC activities, including the need to scale up the pilot revolving fund through either operationalisation of the Anti Poverty Trust Fund (APTF) or supporting the establishment of District Community Bank. The Task Force implemented its terms of reference through various methods including literature review of various documents, presentations by representatives
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27
Members of the Commission and Stakeholders.
of selected devolved funds, NGOs and relevant directorates of the ministries of planning and finance; focus group consultations in nine sample districts; public submission and; views from PEC commissioners. The objectives of this process were: To obtain the views of various stakeholders on the key issues of the Terms of Reference. To enable the Task Force top synthesise the information with a view to making appropriate re-engineering propositions that effectively position PEC to lead the fight against poverty.
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A Report of the
Poverty Reduction and Vision 2030

Strategic Issues and opportunities for
PEC identified by the Task Force

Vision 2030 and Poverty Reduction
the Social Pillar). In this regard, PEC will play a leading advisory role in implementation of activities and processes that culminate in formulation and review of poverty related policies. Vision 2030 envisages Kenya becoming a middle income country providing a high quality of life for all citizens by the year 2030. Its long term objectives are: High broad based economic growth at the rate of at least 10% by 2012 and sustaining that level to 2030. Enhanced equity to reduce disparities between the rich and the poor and distribution of public resources between individuals, regions and along gender lines. The Vision acknowledges entitlement of all Kenyans to political, civil and human rights as well as access by all to education, health, water and other basic needs. Wealth creation opportunities for the poor, including investment in Arid and Semi-Arid Lands and among communities with high incidence of poverty and unemployment among youth, women and all vulnerable groups. Investments will include increasing community empowerment through devolved funds for both social and income generation programmes. According to the Task Force, the aspirations of Vision 2030 are in harmony with those of PEC since the poverty elements articulated in the Vision fall within the
he mandates of PEC in poverty reduction initiatives place it in a strategic position to implement Vision 2030s equity and poverty reduction objectives (within
A Report of the
29
domains of PECs roles and responsibilities. PEC therefore has the opportunity to position itself to take the lead towards achievement of Vision 2030 by continuing to spearhead poverty initiatives particularly reduction of income poverty; coordination of various key players in the fight against poverty and; studying, documenting and piloting best practices. Additionally, PEC should lead in advocacy, publicity and resource mobilization for poverty programmes nationally.
Poverty Eradication Policies

The Task Force noted that PEC is best placed to play a leading advisory role in the formulation and review of poverty related policies to address Vision 2030 goals. In this regard, it recommended that PEC should: Continually scan the poverty environment to identify indicators of core poverty and its causes Initiate desired interventions and processes by devising a range of alternative solutions for fighting poverty Carry out research on most viable solutions to addressing poverty and document best practices and experiences from successful initiatives locally and internationally Pilot in sampled districts through method-and-result demonstrations Develop policy guidelines, campaign for replication of successful best practices and assist relevant line ministries and other development agencies to promote the adopted practices Monitor poverty indicators and advise Government on measures for sustainable fight against poverty Document emerging challenges from piloting and demonstrating good practices and formulate policies for sustainable operations and seek ownership from relevant stakeholders. The Task Force took the view that drawing from the policy perspectives formulated PEC will play a key advisory role on poverty issues, from Vision 2030, MTPs formulation to Sector working Groups (SWGs) in preparation of annual MTEF budgets.
Coordination and harmonisation of poverty activities

To overcome the identified weaknesses, such as parallel poverty programmes, duplication and overlaps in poverty initiatives, the Task Force concurred with PEC evaluations recommendations that PEC should play the role of coordination, which will entail organizing poverty forums at various levels to bring together all key poverty players. These forums will enhance synergy and efficiency in planning, resource mobilization and utilization to achieve timely eradication of poverty among target groups and regions.
30
A Report of the
The Task Force recommended that the coordination process from the district, constituency and grassroots levels be undertaken through the following committees: District Poverty Eradication Committees (DPECs) Constituency Poverty Eradication Committees (CPECs) Joint Community Groups Committees (JCGCs) Membership to all the committees should be inclusive to ensure participation by all poverty players.
Role of PEC in Addressing Income Poverty

Current poverty initiatives in Kenya do not adequately address income poverty for the poor. The Task Force noted that whereas PECs RLF has been successful pro-poor strategy for improving the poverty status of beneficiaries, the amount available was too low. The Task Force recommended the replication of successful RLF-supported initiatives in the newly created districts countrywide for the following reasons: The RLF has been acknowledged as a successful pro-poor programme. The fund has appropriate grassroots structures in place hence the ability to target the poor. It is a good model of delivery of resources to the poor and therefore can be an effective mechanism for enabling Kenya to achieve MDG No. 1: fighting extreme hunger and poverty. RLF can be used to finance other income generating activities not supported by other poverty programmes such as sericulture (rearing of silk worms/silk production); grain amaranth and other small scale commercial farming activities. RLF has in place clear operational guidelines for lending and recovery of funds.
Proposed approaches to up-scaling the RLF

The Task Force recommended either of two approaches to up-scale the RLF namely: Making the Anti Poverty Trust Fund (APTF) operational or establishing of Revolving Loan Trust Fund (RLTF). It is notable that unlike the evaluation which recommended the setting up of District Community Banks, the Task Force instead recommended the setting up of a RLTF.
The APTF
As noted elsewhere, the APTF was established through Gazette Notice No. 103 of 15th June 2001 with the objectives of providing grants for social programmes and providing
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31
soft credit to community groups. At inception a number of organizations pledged to support the fund among them: the African Development Bank, the World Bank, UNDP, GTZ and DFID. The GoK allocated seed money to get the fund off the ground. According to the Task Force, APTF did not become operational for the following reasons: Political transition from one regime to another following the 2002 general elections which led to PEC going in limbo Delay in gazettement of APTF in 2001 long after its proposal for establishment in 1999 Emergence of other anti-poverty financing initiatives such as core poverty programmes and devolved funds such as CDF which focus more on social projects Lack of capacity by PEC to undertake fund raising activities. The Task Force noted that since the objective of providing grants for social projects has been addressed through establishment of devolved funds such as CDF and LATF, the APTF can be made operational and be mandated to focus on mobilization of resources for addressing income poverty. The recommendation was based on the following reasons: The gazettement of APTF is still in force and only requires activation APTF has an operational manual that can be updated to suit the prevailing circumstances The Fund is still relevant in addressing the primary objective of resource mobilization and fund management for direct poverty reduction activities The Fund can host the PEC pilot RLF to provide soft credit to the poor It has a pro-poor approach as compared to other initiatives financing income generating activities such as micro-finance institutions and even SACCOs It can be utilized for sensitisation and capacity building for community/ beneficiary groups as well as FIs.
Revolving Loan Trust Fund (RLTF)

As noted above, the Task Force unlike the evaluation, recommended the creation of a Revolving Loan Trust Fund to host PECs RLF and mobilize resources for addressing income poverty. In this regard, the Task Force noted that the Trust Fund would
32
A Report of the
Mrs Hannah Waithira, a green grocer and a beneficiary of the RLF of PEC, selling her produce at the Narok open air market.
allow for the attainment of RLF earlier stated intention to focus on the extreme poverty bracket of the grassroots poor.
Financing for the up-scaling of the RLF

The Task Force proposed the following as the ideal sources of RLF funds: Annual allocation through the MTEF budget process to cater for PECs recurrent expenditure as well as provide funds for RLF Sourcing for funds from development partners and other poverty stakeholders, in collaboration with the parent ministry The funds will be channeled through the proposed trust funds namely either a revived APTF or the RLTF. The Task Force strongly recommended that PEC should play a dominant role in the management and disbursement of the funds under whichever trust fund that will end up managing the RLF.
Resource Mobilisation Options for PEC

The Task Force noted that the current low budgetary allocation to PEC greatly compromises its ability to fulfill its mandates. The Task Force recommended that for PEC to meet its basic obligations, an estimated Kshs. 450 million would be required annually (see interim activities at the end of this report). An additional Kshs.500 million should be provided as seed capital for the RLF. According to the Task Force,
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33
such additional funds should come from annual allocation through the MTEP budget process, development partners and other poverty stakeholders in collaboration with the parent ministry.
Documentation
The Task Force noted that despite one of PECs mandate being the documentation and sharing of the outcomes of the various poverty initiatives/activities and poverty characteristics of the various parts of the country, the activity does not take place as it should. The Task Force recommended that PEC should undertake the following in order to fulfill its documentation mandate: Identify and list ongoing poverty players and initiatives Map out geographical spread of the poor in collaboration with Kenya National Bureau of Statistics (KNBS) In collaboration with the Monitoring and Evaluation Department of the MoPND & Vision 2030, develop/review indicators to reflect poverty targets
Document best practices on poverty reduction by other organizations Borrow and adapt best practices from other countries for possible piloting and replication Document the impact of poverty programmes implemented by the government, NGOs and other stakeholders.
Mr. Macharia (PEC officer in a cap) and Mr. G.S. Ouma (Consultant) conducting a market survey to establish demand and supply of grain amaranth and its products in Rachuonyo District.
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Advocacy and Publicity

As another of PECs mandates, the Task Force recommended that the Commission should undertake and coordinate national and international media campaigns, advocacy and publicity against poverty through: Establishment of appropriate forums for information sharing Mainstreaming of poverty issues in various programmes and forums Influencing policy formulation and review
Proposed mandates of the Commission

The Task Force revised the initial 14-item mandate of PEC to six. Eight of them were interpreted as means of achieving the mandates. It recommended that a revived PEC be charged with the following mandates: Mandate 1: Advise the government on policies and strategies for poverty eradication in line with the national strategic direction as outlined in Vision 2030. To achieve this, the Commission will review the long term National Poverty Eradication Plan (NPEP 1999-2015) Mandate 2: Coordinate, harmonise, monitor and oversee poverty eradication programmes by key players through initiation of poverty forums at various administrative levels. Coordinate national and international media campaigns, advocacy and publicity against poverty. Resource mobilization and management of funds for financing direct poverty reduction initiatives and selection of priority geographical and sector targets.
Mandate 3: Mandate 4:
Mandate 5: Conduct research on best local and international practices of poverty eradication, undertake documentation, pilot sample districts and disseminate results to other stakeholders. Mandate 6: Document impact of poverty programmes implemented by the government, NGOs and other stakeholders. The Task Force recommended the following as the roles and responsibilities of the Commission. To: a. Define the global objectives and measures of poverty eradication b. Develop poverty eradication strategies c. Pilot innovative strategies for poverty eradication and disseminate results
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35
d. Be the lead agency in advocacy for the mainstreaming of poverty concerns in national development e. Conduct research on key poverty issues and to develop the appropriate policies for poverty eradication f. Convene stakeholders forums g. Mobilize resources for poverty reduction h. Develop mechanisms for disbursement of funds towards identified anti-poverty initiatives
Institutional/organisational structure
The Task Force observed that the continued operation of the Commission as a government unit under a ministry impairs its ability to fulfill its mandate. It was therefore recommended that that PEC be given the status of a Semi-Autonomous Government Agency (SAGA). The proposed SAGA status will not only allow its smooth operation but will also provide the following advantages: Ability to plan and budget independently Capacity to maintain independent bank accounts for ease of operation
Ability mobilize resources outside the normal government budgetary allocations The means to achieve the status of a permanent commission The capacity to recruit appropriate staff answerable to the Commission The autonomy to develop and implement its own strategic plan The Task Force further recommended that as an immediate measure, the PEC Unit should be revamped as modalities for the establishment of a SAGA are put in place. In strengthening the PEC Unit, consideration should be made to establishment of a special account as well as creation of additional technical positions at regional PEC secretariat levels. The Task Force proposed modified institutional structure to reflect PEC as a special unit and as a SAGA (see structures on pages 39 and 41).
Composition of the Commission

The Task Force recommended that the composition of the Commission should include the private sector, civil society, regional representatives and Government representatives. At district level, DPEC will be the coordinating agency for PEC activities but it should be reconstituted to include membership of all devolved funds and key NGOs operating in the respective districts.
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A Report of the
PEC Organisation Structurefor Revamped Special Unit
MoPND and Vision 2030
Poverty Eradication Commission (PEC)
Secretariat PEC
Programme, PRO, Accountant, Human Resource
RCPP
DDO/CDO
DPECs
RLFC
CDCC
CPEC
Community Groups
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37
PEC Organisation Structure as a SAGA

MoPND and Vision 2030 Ministerial Steering Committee Commissions
Board/Commissioners
Secretariat Programme, Finance, Public Relations and Resource Mobilisation Managers
6 RMP
DDO
DPECs
RLFC
CDCC
CPEC
Community Groups
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A Report of the
Programme Description Targets 24 DPECs annually Number of DPECs in operation Secretariat DPEC, Stakeholders June 2010 PEC Commissioners/ DDOs 30,000 Outputs Responsibility Collaborators Timeframe
Activities
Estimated Cost (KShs. 000)
Select the districts Reports on reconstituted, constituted, sensitized and facilitated DPECs
Prepare sensitization materials
Sensitise the DPECs
Reconstitute DPECs which are not operating
Sensitize and facilitate District Poverty Eradication Committees (DPECs) to promote poverty activities at the grassroot level
Constitute DPECs in the new districts
Facilitate the DPECs for monitoring and conducting of regular meetings 5 constituencies Income levels enhanced Nature of livelihoods improved Number and type of projects replicated Secretariat No and type of projects piloted Commissioners/
Promote smallholder commercial farming
Replication of Grain Amaranth growing
Pilot, demonstrate and replicate good practices on antipoverty projects MWI;
Pilot three Amaranth Value addition projects
DPEC, NGOs; Habitat; UNEP; UNDP; MOCD&M;
June 2010
100,000
Pilot establishment of outlets for subsidized commodities
Pilot one best practice human settlement and land use pattern
PEC Activities in the Interim
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2 Newsletters per year Bi-annual newsletter 2 per quarter radio/TV programs Proposals for resource mobilization Spotlights on poverty issues and other national agenda on practices, policies; funding; Interactive website Secretariat
Pilot one best practice water harvesting and irrigated horticulture
Pilot best practice Income generating activities around selected wetlands, water springs, river banks, hills and other fragile zones
Pilot three best practice income generation projects from urban waste PEC Commissioners/ Continuous DPEC, Media & other Stakeholders 20,000
Production of Newsletter on poverty issues
Carry out advocacy on the fight against poverty
National level talk shows
District level Poverty forums
Annual national forum on poverty
(JULY 2009 JUNE 2010)
Regional and National trade fairs/shows
39
40
Targets Participate in Nairobi ASK show Coordinate the marking of World Anti-Poverty Day in the month of October every year Environment Day International Woman Day Disability Day Youth forums World Aids Day Specific sectors etc Reports on inaugurated districts/ constituencies districts/constituencies adopting the strategy Secretariat groups practicing table banking PEC Commissioners/ DPEC, Stakeholders Secretariat/ Commissioners Poverty Stakeholders/ Procurement dept Sept 2009 15,000 Outputs Responsibility Collaborators Timeframe 2 constituencies per quarter starting July 2009 Continuous 30,000 Strategic plan framework Commission inputs in the framework Stakeholder comments incorporated Strategic plan approved for circulation Strategic plan printed Newspaper supplement(s) about the launch/Radio and/or TV slots Strategic plan report PEC Commissioners/ Secretariat Dec. 2009 MDG Unit, NGOs, MoSPND & V2030 5,000
Programme Description
Activities
Participate in local and international poverty forums
Participate in Nairobi ASK show
Coordinate the marking of World AntiPoverty Day in the month of October every year
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Environment Day
International Womens Day
Disability Day
Youth forums
World Aids Day
Specific sectors etc
Pilot and roll-out District Table Banking Services strategy
Monitor progress in three on-going pilot districts of Thika, Siaya and Bondo.
document best practices for replication
identify facilitators
mobilize the district
Selection of groups and training of group members
Workshop for group representatives, election of board of directors, and hold workshop to sensitize the BOD
organize for loan capital
Roll-out table baking services to other districts
Preparation of three year Strategic Plan
Hire of Consultant
Prepare concept note on strategic plan
Hold three day participatory workshop to internalize the draft
Refine draft strategic Plan
Print draft copies of Strategic Plan for stakeholders
Conduct stakeholders workshop
Publicize the launch in print and electronic media
Launch of the Strategic Plan
Programme Description Targets Reports on the assessment DPEC, Devolved funds Committees & 0ther Stakeholders Output framework developed and operating Secretariat Other stakeholders Non-traditional poverty Indicators priority hot-spots selected for interventions - possible sector specific projects identified Project locales identified Community Action Plans Deserving beneficiaries targeted Commissioners Secretariat KNBS; DPECs/ CPECs; MPs; Councillors; Local Administrators; Core Poverty Line ministries; NGOs Commissioners Secretariat Continuous KNBS; MED DPECs/ CPECs; MPs; Councillors; Local Administrators; Core Poverty Line ministries; NGOs Potential project locales identified. 25,000 Continuous 10,000 PEC Commissioners/ June 2010 200,000 One standard relevant to constituency identified Secretariat 30,000 PEC Commissioners/ MED September 2009 Outputs Responsibility Collaborators Timeframe
Activities
carry out literature review of indicators on improvement on income poverty
prepare survey instruments
Develop and pilot quick non traditional indicators for situation analysis of income poverty
conduct pilot survey
2 constituencies per quarter financial year starting July 2009
convene stakeholders forum for feedback
Conduct advocacy forums for up scaling RLF
Preparation of Standardized Training manual
Institutionalize on a pilot basis Revolving Loan Fund (RLF) at constituency level for purpose of up-scaling the fund to fight income poverty 2 hot spots per region per quarter starting July, 2009
Reconstitution, sensitization of DPECs/ CPECs
15 constituencies per every FY starting 2009/2010 FY
Relevant GoK bodies, DPEC, Financial Intermediaries
Identify poverty hotspots
Identification of priority geographical and sectoral targets for poverty reduction
Convene national forum for sharing report with stakeholders/partners
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Visits conducted to relevant sites All best practices documented Forums for potential partners in promoting selected best practices held
Convene Constituency specific forum for leaders/sector ministries and development Partners
10
Studies on best practice outlets for subsidized products and services.
Conduct studies on Best practice Antipoverty projects on current poverty thematic areas/ Concerns
Studies on best practice income generation from urban waste
Best practice floods and run off water harvesting for irrigated agriculture
Best practice Income generating activities around wetlands, water springs, river banks, hills and other fragile zores.
Best practice human settlements and land use patterns
Best practice value addition technologies for various commodities produced by the poor
41
42
Targets Poverty programmes and projects documented Challenges and opportunities documented Secretariat Policy options derived and documented Policy briefs Poverty programmes and projects documented Impact of poverty programs/ programs assessed and documented MPs; Councillors; Local Administrators; Core Poverty Line ministries; NGOs Continuous 5,000 Challenges and opportunities documented - policy options derived and documented Policy briefs on on-going poverty programs good practice antipoverty activities Promoted progress and constraints derived and documented emerging policy related concerns shared Resources mobilized. Advocacy for pro-poor budgets good and bad practice activities spotlighted Advocacy for pro-poor policies proposals for full Commission attention considered and presented Policy related proposals and projects approved Follow up with sectoral ministries for fast-tracking anti-poverty policy changes 500,000 Commissioners Secretariat KNBS; DPECs/ CPECs; Continuous 20,000 December 2009 10,000 15 constituencies per quarter starting July 2009 PEC Commissioners/ DPEC, Beneficiary Groups Outputs Responsibility Collaborators Timeframe Estimated Cost (KShs. 000)
Programme Description
Activities
11
Conduct desk and field studies
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Establish an inventory of poverty strategies, programs and projects at constituency level and document best practices
Convene information sharing forums of key players in poverty at District, constituency etc
Consolidating reports on best practices and challenges
12
Documentation of poverty Initiatives in sampled districts/ constituencies
Conduct desk and field studies
Convene information sharing forums of key players in poverty at District, constituency and community level
Consolidating reports on best practices and challenges
13
Commissioners Activities
Continuous lobbying for adoption and implementation of the Task Force report
Participation in Area -specific commission activities
Facilitate area specific DPECs/CPECs forums
Engage local leaders/devolved funds committees /core poverty players / media
Participation in Sector Working Groups
Participation in National /International Antipoverty forums
Ad hoc committee meetings
Full Commission meetings
Totals

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10 Years of Fight Against Poverty (1999 - 2009)

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The District Focus for Rural Development Strategy

The Constituencies Development Fund (CDF)

Local Authority Transfer Fund (LATF)

Poverty Eradication Commission

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Youth Enterprise Development Fund

Women Enterprise Development Fund

Community Development Trust Fund (CDTF)

Njaa Marufuku Kenya (NMK)

Poverty Eradication Commission

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About The Poverty Eradication Commission

Poverty Eradication Commission

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How PEC Operates

Poverty Eradication Commission

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District level supporting institutions

District Poverty Eradication Committees (DPECs)

Poverty Eradication Commission

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Poverty Eradication Commission

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Current PEC Organisational Structure

District Poverty Eradication Committees

Poverty Eradication Commission

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Key Milestones of the Poverty Eradication Commission

2003 November 2004 2005 September 2005 2006

2007 March 2007 August 2008