REPUBLIC OF KENYA KENYA JOBS AND ECONOMIC TRANSFORMATION (KJET) PROJECT (P179381) [Appraisal version/Negotiations version] ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) October 2023 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Kenya (the Recipient) is planning to implement the Kenya Jobs and Economic Transformation Project (KJET) with the involvement of the Ministry of Co-operatives and Micro, Small and Medium Enterprises (MCMSME), Micro and Small Enterprise Authority (MSEA), Kenya Investment Authority (KenInvest) and the Ministry of Investments, Trade, and Industry (MITI,) as set out in the Financing Agreement. The Micro and Small Enterprise Authority (MSEA) under the newly created Ministry of Cooperatives, and Micro, Small, and Medium Enterprises (MCMSME). State Department of Investment Promotion (SDIP) under MITI. The International Development Association hereinafter the (Association) has agreed to provide financing for the Project, as set out in the referred agreement. 2. The Recipient shall ensure that the Activities are carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Association. The ESCP is a part of the Financing Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the Financing Agreement. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring, and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the World Bank. 4. As agreed by the Association and the Recipient, this ESCP will be revised from time to time if necessary, during implementation of the Activities, to reflect adaptive management of changes and unforeseen circumstances related to the Activities or in response to assessment of performance of activities. In such circumstances, the Recipient through Ministry of Co-operatives and Micro, Small and Medium Enterprises MCMSME) and the Ministry of Investments, Trade, and Industry (MITI,) as set out in the Financing Agreement. The Micro and Small Enterprise Authority (MSEA) under the newly created Ministry of Cooperatives, and Micro, Small, and Medium Enterprises (MCMSME). State Department of Investment Promotion (SDIP) under MITI. and the Association agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and Ministry of Co-operatives and Micro, Small and Medium Enterprises (MCMSME) and the Ministry of Investments, Trade, and Industry (MITI,) as set out in the Financing Agreement. The Micro and Small Enterprise Authority (MSEA) under the newly created Ministry of Cooperatives, and Micro, Small, and Medium Enterprises (MCMSME). State Department of Investment Promotion (SDIP) under MITI. The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING: 1. Prepare and submit to the Association regular monitoring reports on the 1. Submit quarterly and annual MCMSME environmental, social, health, and safety (ESHS) performance of the reports to the Association MITI Project, including but not limited to the implementation of the ESCP, throughout Project MSEA stakeholder engagement activities, and log and status of any complaints implementation, commencing KDC received. after the Effective Date. KenInvest 2. Submit each report to the Association no later than fourteen (14) days after the end of each reporting period. B INCIDENTS AND ACCIDENTS: 1. Promptly notify the Association of any incident or accident related to the 1. Notify the Association not later MCMSME Project which has, or is likely to have, a significant adverse effect on the than 48 hours after learning of the MITI environment, the affected communities, the public or workers, incident or accident. MSME Authority including, inter alia, cases of sexual exploitation and abuse (SEA), KDC sexual harassment (SH), and accidents that result in death, serious or 2. Provide subsequent reports to the KenInvest multiple injuries, forced or child labour. Provide sufficient detail Association within a timeframe regarding the scope, severity, and possible causes of the incident or acceptable to the Association. accident, indicating immediate measures taken or that are planned to be taken to address it. 2. Subsequently, at the Association’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. C CONTRACTORS’ MONTHLY REPORTS 1. Contractors and supervising firms to provide monthly monitoring 1. Submit the monthly reports to the MCMSME reports on ESHS performance in accordance with the metrics specified Association upon request. MITI in the respective bidding documents and contracts and submit such reports to the Association upon request. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY D NOTIFICATIONS RELATING TO DAAB COMPLIANCE REVIEW OF CONTRACTOR COMPLIANCE WITH SEA/SH PREVENTION AND RESPONSE OBLIGATIONS MCMSME MITI Notify the World Bank of any referral submitted to the Dispute Avoidance No later than 7 days after the issuance and Adjudication Board (DAAB) to initiate a process of compliance review or receipt, as applicable, of the in relation to a contractor’s obligations to prevent and respond to sexual relevant document (i.e., referral to the exploitation and abuse (SEA), and/or sexual harassment (SH) specified in DAAB, issuance of DAAB decision, the respective works contract with such contractor; and, in the event of any Notice of Dissatisfaction, notice of such referral, notify the World Bank of: (i) the DAAB’s decision on such commencement of emergency/full referral; (ii) the contractor’s Notice of Dissatisfaction, if any, with such arbitration, emergency/full DAAB decision; (iii) any notification received on the commencement of an arbitration order, as applicable). emergency arbitration proceeding or full arbitration proceeding in relation to the DAAB’s decision; and (iv) the resulting emergency arbitration order and/or full arbitration order, if any. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Ensure that 1 environmental, health MCMSME and safety specialist, 1 social MITI Establish and maintain Project Implementing Units (PIUs) with qualified, development specialist and 1 MSEA experienced, full-time staff and resources to support the management of communication specialist are hired or KDC ESHS risks and impacts of the Project including 1 Environmental Health and deployed prior to the Effective Date. KenInvest Safety Specialist, 1 Social develpment specialist, and 1 communication Thereafter, all are maintained specialist each with more than ten (10) years of experience in carrying out throughout Project implementation. environmental and social assessments 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS 1. Prepare, consult upon, adopt and MCMSME 1. Prepare, consult upon, adopt, publicly disclose and thereafter implement publicly disclose the ESMF prior MITI the Environmental and Social Management Framework (ESMF) for the to Effective Date and thereafter MSEA Project, consistent with the relevant ESSs. implement the ESMF throughout KDC 2. Screen each sub-project and carry out corresponding environmental and Project implementation. KenInvest social impact assessment for the identified sub-projects as per the requirements of the ESMF during project implementation, incorporate 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY the Environment Social Impact Assessment (ESIA)/ESMP 2. Prior to disbursement of funds for recommendations in the bidding and contract documents during subprojects and throughout implementation and duly comply with any applicable requirements in Project implementation, with the the ESMF during project implementation such as carrying out adoption of ESIAs and ESMPs to environmental and social risks assessments, preparing, consulting upon, be completed before the start of adopting, publicly disclosing and implementing the respective the corresponding sub-project ESIAs/ESMPs before commencing works in a manner acceptable to the activities. Association. 3. Carry out annual environmental and social implementation audits for the 3. Not later than December 15 in sub-projects. These shall be reviewed and cleared by the Association. each year of the project implementation. 1.3 MANAGEMENT OF CONTRACTORS Prior to the preparation of MCMSME Incorporate the relevant aspects of the ESCP, including, inter alia, the procurement documents for MITI relevant E&S instruments, the Labor Management Procedures, and the code subprojects. MSEA of conduct, into the ESHS specifications of the procurement documents and Supervise contractors throughout KDC contracts with contractors and supervising firms. Thereafter, ensure that the Project implementation KenInvest contractors and supervising firms comply and cause subcontractors to comply with the ESHS specifications of their respective contracts. 1.4 TECHNICAL ASSISTANCE Ensure that the consultancies, ESIA studies, capacity building, training, and Throughout Project implementation MCMSME any other technical assistance activities under the Project are carried out in while agencies are carrying out MITI accordance with terms of reference acceptable to the Association, which are Technical Assistance. MSEA consistent with the ESSs. Thereafter ensure that the outputs of such activities KDC comply with the terms of reference. KenInvest 1.5 EXCLUSION LIST Throughout Project implementation MCMSME The following subprojects are excluded from KJET financing: MITI 1. Sub-projects categorized as High risk (per WB ESF and ESSs MSEA definition); KDC 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 2. Any technical assistance (TA) activities that are classified as Type KenInvest 1 as per WB Operations Environmental and Social Review Committee (OESRC) Advisory Note; 3. Activities that may cause long term, permanent and/or irreversible impacts (e.g., loss of major natural habitats including habitats of wildlife and fisheries); 4. Activities that may cause any significant loss of biodiversity; 5. Activities that have a high probability of causing serious adverse effects to human health and/or the environment; 6. Activities that may have significant adverse social impacts and/ or may give rise to significant social conflict; 7. Activities that may involve significant land acquisition, forced eviction and involuntary physical displacement; 8. Activities that would disproportionately affect the historically underserved and vulnerable groups; 9. Activities that may cause damage to cultural heritage; 10. Activities that contravene Kenya’s obligations under its international agreements; 11. Activities that may involve generating large volume of e-waste causing significant irreversible adverse impacts to human health and natural resources; and 12. Activities that limit access for women and PWDs to project benefits (e.g., public offices with no ramps to, inaccessible websites, etc.). ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Prepare, consult upon, adopt and MCMSME Prepare, consult upon, adopt, publicly disclose and thereafter implement the publicly disclose the LMP prior to MITI Labor Management Procedures (LMP) for the Project, including, inter alia, disbursement of funds and thereafter MSEA provisions on working conditions, management of workers' relationships, implement the LMP throughout KDC occupational health and safety (including personal protective equipment, and Project implementation. KenInvest emergency preparedness and response), code of conduct (including relating to SEA and SH), forced labor, child labor, grievance arrangements for 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS MCMSME Establish prior to Effective Date and MITI Establish, publicize and operate a project labour grievance mechanism, publicize and operate and throughout MSEA including assignment of focal points, as described in the LMP and consistent project implementation. KDC with ESS2. KenInvest ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MCMSME MANAGEMENT MITI Prior to commencement of Incorporate resource efficiency and pollution prevention and management subprojects and thereafter implement measures in each subproject ESIA/or ESMP to be prepared under action 1.2 the ESIAs throughout the project above. implementation. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY MCMSME Incorporate measures to manage traffic and road safety risks as required in Prior to commencement of MITI the ESIA/or ESMP to be prepared under action 1.2 above. subprojects and thereafter implement MSEA the ESIAs throughout the project KDC implementation. KenInvest 4.2 COMMUNITY HEALTH AND SAFETY MCMSME Assess and manage specific risks and impacts to the community arising from Prior to commencement of MITI Project activities, including, inter alia, behavior of Project workers, risks of subprojects and thereafter implement MSEA labor influx, response to emergency situations, and mitigation measures in the ESIAs throughout the project KDC the ESIA/or ESMPs to be prepared in accordance with the ESMF. implementation. KenInvest 4.3 SEA AND SH RISKS MCMSME 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Adopt the SEA/SH Action Plan MITI Adopt and implement a SEA/SH Action Plan as part of the ESMP, to assess before subproject commencement MSEA and manage the risks of SEA and SH. and thereafter implement the KDC SEA/SH Action Plan throughout KenInvest corresponding subproject implementation. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Adoption of ESIAs and ESMPs to be MCMSME Relevant aspects of this standard shall be considered, as needed, under action completed before the start of the MITI 1.2 above. The Recipient shall screen sub-projects, prepare, consult on, corresponding sub-project activities. KDC adopt, publicly disclose, environmental and social impact assessments KenInvest (ESIAs)/or environmental and social management plans (ESMPs) with The ESIA/ESMP to be implemented relevant mitigation measures for sub-projects infrastructure that are likely to throughout corresponding subproject have impacts on biodiversity and thereafter implement such ESIAs and implementation period. ESMPs. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 Incorporate findings of the Social Assessment under World Bank financed Prior to Project Appraisal. MCMSME project Supporting Access to Finance and Enterprise Recovery (P175017 MITI SAFER) into the KJET’s Environmental and Social Management Framework. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Same timeframe as that for adoption MCMSME of ESIAs/ESMPs. MITI Adopt and implement a Cultural Heritage Management Plan (CHMP) as MSEA part of the ESMP, in accordance with the guidelines of the ESIA prepared KDC for the Subproject, and consistent with ESS8. KenInvest 8.2 CHANCE FINDS Relevant aspects of this standard shall be considered, as needed, in the Prior to commencement of MCMSME ESMF as outlined under action 1.2 above. subprojects and thereafter implement MITI 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY the ESIAs throughout the project MSEA implementation. KDC KenInvest ESS 9: FINANCIAL INTERMEDIARIES 9.1 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM (ESMS) Kenya Development 1. The Kenya Development Corporation (KDC) shall update, maintain and 1. Prior to disbursement of funds by Corporation (KDC) implement the existing DRIVE Project ESMS consistent with ESS9 and KDC for subprojects and in a manner acceptable to the Association. The ESMS will have an maintained throughout Project exclusion list that precludes the inclusion of activities that involve the Implementation. conversion of natural habitats /or ecologically sensitive areas. 2. Prior to disbursement of GIF 2. As applicable, ensure that Micro Small and Medium Enterprises funds to investees. (MSMEs) prepare sub-project-specific environmental and social management plans (ESMPs) or Summary Project Reports (SPRs) in accordance with the relevant national laws, the approved ESMS, and in a manner acceptable to the Association. 9.2 EXCLUSION LIST Throughout Project implementation KDC Screen all proposed FI subprojects against the exclusion list set out in the ESMF. 9.3 FI ORGANIZATIONAL CAPACITY KDC KDC should recruit and maintain one (1) environmental specialist with Prior to disbursement of funds to OHS experience, and one (1) social safeguards specialist with experience KDC for the Green Innovation Fund in sexual exploitation and abuse, and sexual harassment matters. (GIF) and maintained throughout Project Implementation. 9.4 SENIOR MANAGEMENT REPRESENTATIVE KDC 9|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY In accordance with ESS9, KDC shall designate a senior management Prior to disbursement of funds by representative to have overall accountability for the environmental and KDC for subprojects and maintained social performance of the subprojects. throughout Project Implementation. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Prepare, adopt and publicly disclose MCMSME Prepare, adopt and publicly disclose a Stakeholder Engagement Plan (SEP) prior to appraisal and thereafter MITI consistent with ESS10, and thereafter implement the SEP, all in a manner implement the SEP throughout MSEA acceptable to the Association. project implementation KDC KenInvest 10.2 STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE MCMSME At project Appraisal and throughout MITI Implement the SEP consistent with ESS10, including the use of different, Project implementation culturally appropriate communication approaches to ensure communication with the most vulnerable groups, IP/SSAHUTLC, including illiterate, and people with disabilities. 10.3 PROJECT GRIEVANCE MECHANISM 1. Establish, publicize, maintain, and operate the grievance mechanism, to 1. Establish the grievance MCMSME receive and facilitate the resolution of concerns and grievances in mechanism prior to Effective MITI relation to the Project, promptly and effectively, in a transparent manner Date, and thereafter publicize, MSEA that is culturally appropriate and readily accessible to all Project-affected maintain and operate the KDC parties, at no cost and without retribution, including concerns and mechanism throughout Project KenInvest grievances filed anonymously, in a manner consistent with ESS10. implementation. 2. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. 10 | P a g e ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Kenya Jobs Economic Transformation Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY CAPACITY SUPPORT CS1 Training may be required for KDC, MCMSME, MSEA, and MITI PIU staff Prior to disbursement of funds for on: subprojects and during project MCMSME • Environmental and Social Management Framework (ESMF) implementation MITI including Labor Management Procedures (LMP) consisting of Code MSEA of Conduct for project workers and Specific GRM KDC • Environmental and Social Management Plans (ESMPs) KenInvest • GBV Action Plan • Stakeholder Engagement Plan (SEP) • Project-wide GRM 11 | P a g e