The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) National Safety Net Program for Results (P131305) AFRICA | Kenya | Social Protection & Labor Global Practice | Requesting Unit: AFCE2 | Responsible Unit: GSP01 IBRD/IDA | Program-for-Results | FY 2014 | Team Leader(s): Emma S. Mistiaen, Iftikhar Malik Seq No: 9 | ARCHIVED on 29-Jun-2018 | ISR33236 | Created by: Dorothy Morrow Akikoli on 18-Jun-2018 | Modified by: Nadia Selim on 27-Jun-2018 Program Development Objectives Program Development Objective (from Program Appraisal Document) To support the Republic of Kenya's efforts to establish an effective national safety net program for poor and vulnerable. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The Government is making steady progress on the implementation of the National Safety Net Program for Results and disbursements against the targets are on track. The Government has demonstrated strong leadership on critical issues for the program, such as greater fiduciary oversight on the program through a comprehensive action plan and stronger citizen engagement through the development of a Beneficiary Outreach Strategy. A new account based payment solution is being rolled out, which would give beneficiaries choice in the service provider, making the payment transfer mechanism more convenient and accessible and providing them access to bank accounts supporting opportunities for greater savings. Plans have also been developed for expansion of coverage of beneficiaries. Three additional Disbursement Linked Results have been achieved since the previous status review. These include: (i) a modified expansion plan for the National Safety Net Program adopted; (ii) a Beneficiary Outreach Strategy adopted; and (iii) 41 percent of agreed critical Financial Management actions implemented. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P131305 IDA-52870 Effective USD 250.00 250.00 0.00 175.51 60.99 74% P131305 IDA-59810 Effective USD 50.00 50.00 0.00 20.28 31.72 39% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 6/29/2018 Page 1 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) Program Action Plan Revise OMs to respond to findings of the addendum to the Technical, and Integrated Fiduciary Assessments and the Action Description original ESSA Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Yearly Completed Comments Improve delivery of payments to beneficiaries: (i) reach agreement with Treasury on timeliness and flow of funds, (ii) Action Description regularly monitoring transfer steps against schedule, (iii) strengthening internal controls, (iv) developing long term PSP strategy Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Discussions with National Treasury are ongoing to find a systemic solution to the issues of delays in beneficiary cash Comments transfers. Action Description Implement IFAR recommendations with respect to procurement Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS In Progress Comments Development and implementation of a time-bound FM action plan to comprehensively strengthen the fiduciary controls Action Description in the NSNP Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Yearly In Progress Comments 41 percent of agreed critical FM actions have been implemented. Finalize the EFC framework and action plan to prevent, detect, and deter EFC and ensure alignment with the FM Action Description action plan Responsibility Recurrent Frequency Due Date DLI# Status Client No 31-Dec-2018 In Progress The EFC actions have been integrated within the revised OM as well as in the Consolidated Action Plan, which Comments includes agreed critical FM actions. 6/29/2018 Page 2 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) Action Description Finalization of a harmonized targeting tool and update of the PMT, as and when new KIHBS data become available Responsibility Recurrent Frequency Due Date DLI# Status Client No 31-Aug-2018 In Progress HTM has been finalized, but needs updating with the new KIHBS data. Ministry to request the KIHBS data and World Comments Bank to bring on board TA for revision of the HTM. Ensure financial allocations to the NSNP according to the program MTEF are included in the sectoral MTEF and Action Description annual budgets Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Yearly In Progress Preliminary indications are that the budget for NSNP next FY will be insufficient to achieve the FY19 workplan and Comments achievement of a number of DLIs. Plans are underway to clearly communicate any shortfall to NT. Action Description Ensure collaboration with the NRB to enable issuance of ID cards to eligible beneficiaries who do not have ID cards Responsibility Recurrent Frequency Due Date DLI# Status Client Yes CONTINUOUS Delayed Discussions with NRB have not yet started. Ministry committed themselves to commence these discussions in early Comments next FY. Ensure adequate implementation capacity nationwide and more specifically in the NEDI counties by (i) developing an Action Description implementation plan and (ii) implementation of the same Responsibility Recurrent Frequency Due Date DLI# Status Client No 31-Oct-2018 Not Yet Due Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Substantial Substantial 6/29/2018 Page 3 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- High Substantial Environment and Social -- Moderate Moderate Stakeholders -- Low Low Other -- Substantial Substantial Overall -- Substantial Substantial RiskComments Comments Political and Governance risk has been rated moderate across the Kenya portfolio, given the conclusion of the recent elections and the new Government being in place. Fiduciary risk rating has been changed from high to substantial since agreed critical FM actions have been implemented and Government is making further progress in outstanding implementation. A new payment solution is also being rolled out which will provide stronger fiduciary controls. "Other risk" remains the Lack of ID cards in NEDI counties. This challenge is particularly large in the NEDI counties and this poses a risk to the Program since a national ID card is required to enable payments to be made to beneficiaries or caregivers of the NSNP. Overall risk rating remains substantial. Results PDO Indicators by Objectives / Outcomes To support the Republic of Kenya's efforts to establish effective NSNP for poor and vulnerable HHs ►Net change in beneficiary household monthly per adult equivalent consumption expenditure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 150.00 Date 26-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►Number of NSNP beneficiaries, by sex (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,650,000.00 4,040,000.00 4,040,000.00 4,280,000.00 Date 28-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►System for recertification of NSNP beneficiaries is in place (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of the Value No No In progress rollout of the 6/29/2018 Page 4 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) recertification plan in at least 20 subcounties Date 28-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►% of all payments are made on time to Payment Service Providers for transfer to Program Beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- 4.40 90.00 Date 05-Apr-2017 -- 15-Jun-2018 31-Dec-2019 ►Beneficiaries of social safety net programs (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 1,650,000.00 -- 4,040,000.00 4,280,000.00 Date 26-Jun-2013 -- 15-Jun-2018 31-Dec-2019 Beneficiaries of social safety net programs - Female (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 825,000.00 -- 2,020,000.00 2,140,000.00 Date 26-Jun-2013 -- 15-Jun-2018 31-Dec-2019 Intermediate Results Indicators by Results Areas Expanding cash transfer programs to promote more comprehensive and equitable coverage ►Number of households paid for by the Government (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 114,384.00 742,000.00 716,836.00 792,000.00 Date 26-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 Strengthening program systems to ensure good governance ►% of beneficiaries who know correct program transfer amount for the program in which they are enrolled (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 56.30 -- 56.30 70.00 Date 05-Apr-2017 06-Oct-2017 15-Jun-2018 31-Dec-2019 6/29/2018 Page 5 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) ►% of beneficiaries for whom payments are made electronically using Two-Factor Authentication (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 90.00 100.00 90.00 Date 28-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►Grievance and Case Management mechanisms for the Cash Transfer Programs are functional (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Beneficiary Outreach BoS development & Value Not in place -- Strategy implemented adopted in at least 20 counties Date 28-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►% of Program Beneficiaries who can name two means of making complaint (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.80 -- 8.80 40.00 Date 26-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►Single Registry is operational and progam MISs use the Standards for Internal Payroll Controls (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y Y Y Y Date 26-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 Haromonizing cash transfer programs to increase the coherence of the safety net sector ►% of NSNP funding financed by the Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 41.00 91.00 93.00 96.00 Date 26-Jun-2013 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►Number of households per year paid through the NSNP out of NDEF (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NDEF not yet No targets as this Value n/a -- operational indicator will only be 6/29/2018 Page 6 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) measured when the early warning system triggers a response Date 26-Jun-2013 14-Jul-2017 15-Jun-2018 31-Dec-2019 ►NSNP beneficiaries' access to complementary social and productive services is promoted (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target agreements signed with at least two partners providing Value n/a -- In progress relevant complementary services to NSNP beneficiary households Date 05-Apr-2017 06-Oct-2017 15-Jun-2018 31-Dec-2019 ►Fiduciary systems for NSNP has been strengthened (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 41.00 100.00 Date 05-Apr-2017 06-Oct-2017 15-Jun-2018 31-Dec-2019 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Additional households are enrolled in the NSNP (Intermediate Outcome, 135,000,000.00, 85%) Baseline Actual (Previous) Actual (Current) December 2019 Value 0.00 765,000.00 716,836.00 345000.00 Date -- 29-Sep-2017 15-Jun-2018 -- The Government exceeded the target for this DLI. However, variations are noted in the payroll from month to Comments month as beneficiaries are exited from the program. ►DLI 2 System for recertification of NSNP beneficiaries is in place (Outcome, 15,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2019 Value N N N Y Date -- 29-Sep-2017 15-Jun-2018 -- Comments The recertification plan is in process of being developed and is estimated to be adopted by December 2018 6/29/2018 Page 7 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) ►DLI 3 Single Registry is fully operational with program MISs using agreed standards for internal payroll controls (Intermediate Outcome, 25,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) December 2019 Value Y Y Y Y Date -- 29-Sep-2017 15-Jun-2018 -- Comments Achieved ►DLI 4 Percent of NSNP payments made electroincally using two-factor authentication (Intermediate Outcome, 15,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) December 2019 Value 40.00 60.00 100.00 90.00 Date -- 31-Jul-2015 15-Jun-2018 -- Comments Achieved ►DLI 5 Percent of all payments are made on time to Payment Service Providers for transfer of Program Beneficiaries (Outcome, 15,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) December 2019 Value 12.00 96.00 4.40 -- Date -- 29-Sep-2017 30-Apr-2018 -- Despite achieving this DLI, timeliness of payments lately have been a challenge as the program is rolling out a new payment solution and registering about half a million new beneficiaries, requiring new accounts to be Comments established and new payment cards to be issued, which has caused delays in payments. It is expected that once this process is completed and the new systems are in place, timeliness of payments will improve. ►DLI 6 Grievance and Case Management mechanisms for the Cash Transfer Programs are functional (Intermediate Outcome, 35,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2019 Beneficiary awareness of Value Not in place -- In Progress transfer amount and G&CM system Date -- 29-Sep-2017 15-Jun-2018 -- The G&CM system is functional nationally, and efforts to develop a decentralized G&CM MIS module are in progress, after which it will be rolled out nationally. The Beneficiary Outreach Strategy has been developed Comments and plans are underway for its implementation. Impacts of these, particularly the BoS in terms of improved engagement by and awareness of beneficiaries will be measured in the PIBS III. 6/29/2018 Page 8 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) ►DLI 7 System for scaling up the NSNP has been adopted (Intermediate Outcome, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2019 Value N N N Y Date -- 29-Sep-2017 15-Jun-2018 -- The NDEF regulations have been passed by the Cabinet Secretaries and is with the Parliament for final Comments approval. ►DLI 8 Government has adopted the consolidation strategy (Intermediate Outcome, 15,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) December 2019 Value N Y Y Y Date -- 29-Sep-2017 15-Jun-2018 -- Comments Achieved ►DLI 9 HSNP is financed (Intermediate Outcome, 5,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) December 2019 Value N Y Y Y Date -- 29-Sep-2017 15-Jun-2018 -- Comments Achieved ►DLI 10 NSNP beneficiaries' access to complementary social and productive services is promoted (Intermediate Outcome, 3,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2019 Value Not in place -- In progress -- Date -- 29-Sep-2017 15-Jun-2018 -- Comments Complementary Services module in the SR is near finalization. ►DLI 11 Fiduciary systems for NSNP have been strengthened (Intermediate Outcome, 9,000,000.00, 41%) 6/29/2018 Page 9 of 10 The World Bank Implementation Status & Results Report National Safety Net Program for Results (P131305) Baseline Actual (Previous) Actual (Current) December 2019 Value 0.00 0.00 41.00 100.00 Date -- 29-Sep-2017 15-Jun-2018 -- Comments On track, with 41 percent of FM actions implemented. 6/29/2018 Page 10 of 10