$ Report No: RES00417 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Kenya Social and Economic Inclusion Project APPROVED ON 27-Nov-2018 TO Republic of Kenya Social Protection Eastern and Southern Africa Regional Vice President: Victoria Kwakwa Regional Director: Daniel Dulitzky Country Director: Qimiao Fan Practice Manager: Suleiman Namara Task Team Leader(s): Shubha Chakravarty, Iftikhar Malik The World Bank Kenya Social and Economic Inclusion Project (P164654) ABBREVIATIONS AND ACRONYMS DLI Disbursement-linked indicator DLR Disbursement-linked result ESR Enhanced Single Registry FCDO Foreign, Commonwealth, and Development Office FSIGG Fiscal Sustainability and Green Growth Project HSNP Hunger Safety Net Program IDA International Development Association KSEIP Kenya Social and Economic Inclusion Program MDTF Multi-Donor Trust Fund NDMA National Drought Management Authority NHIF National Hospital Insurance Fund NICHE Nutrition Improvement through Cash and Health Education PBC Performance-Based Condition SDSP State Department for Social Protection and Senior Citizens Affairs TF Trust Fund UHC Universal Health Coverage The World Bank Kenya Social and Economic Inclusion Project (P164654) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P164654 Kenya Social and Economic Inclusion Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Kenya Approval Date Current Closing Date 27-Nov-2018 31-Dec-2024 Original EA Category Partial Assessment (B) (PAD Approval Package-27 Nov 2018) Organizations Borrower Responsible Agency Ministry of Labour and Social Protection, National Drought Republic of Kenya Management Authority @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective To strengthen delivery systems for enhanced access to social and economic inclusion services and shock-responsive safety nets for poor and vulnerable households. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 i The World Bank Kenya Social and Economic Inclusion Project (P164654) IDA 250.00 145.08 89.36 58.03 Grants 64.00 59.07 4.93 92.30 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Kenya Social and Economic Inclusion Project (P164654) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................4 III. PROPOSED CHANGES ................................................................................................................................................5 IV. DETAILED CHANGE(S) ...............................................................................................................................................6 The World Bank Kenya Social and Economic Inclusion Project (P164654) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring paper seeks the approval of the Country Director to restructure the Kenya Social and Economic Inclusion Project (KSEIP, P164654). A Level 2 restructuring is proposed to: (a) cancel one Disbursement-Linked Result (DLR) that is no longer achievable; (b) cancel excess International Development Association (IDA) resources in the total amount of EUR 40.2 million; (c) reallocate funds from standard Investment Project Financing (IPF) categories to new Disbursement-Linked Indicators (DLI) to ensure effective utilization of remaining resources from the KSEIP co-financing Grant (TF0A9527); (d) to increase the end target of one Project Development Objective (PDO) level indicator; and (e) increase the ceiling for one of the Project’s designated accounts (DA). The restructuring has been requested by the Government of Kenya (GoK) through a letter from the National Treasury, dated October 25, 2024 and received on October 29, 2024. A. Project Status 2. The Government of Kenya (GoK) remains committed and has built momentum towards achieving KSEIP results. The project was approved on November 27, 2018 with the IDA credit of EUR 215.9 million (Credit 6348-KE, US$250 million equivalent), and a Grant (US$70.35 million) extended by the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO) through a Trust Fund. The project was restructured in December 2023 to, inter alia, extend the closing date by one year and reduce the donor grant to US$64 million. Its Development Objective (DO) is to strengthen delivery systems for enhanced access to social and economic inclusion services and shock-responsive safety nets for poor and vulnerable households. KSEIP is led by the State Department for Social Protection and Senior Citizen’s Affairs (SDSP) within the Ministry of Labor and Social Protection (MLSP) and co-implemented by the National Drought Management Authority (NDMA). There are no outstanding audits or Interim Financial Reports for the IDA credit and the Grant financing. Fiduciary and safeguards performance has been satisfactory. 3. The project comprises three components that are structured around six DLIs, with 27 intermediate DLRs. Under component 1, the project supports enhancement of the existing social protection delivery systems (DLI 1, 2 & 3). The project has established a national Enhanced Single Registry (ESR) with socioeconomic information on nearly 50 percent of the population to enable objective identification of poverty-targeted programs. The project has also established a payment choice model for cash transfer beneficiaries. Under component 2, it supports enabling provisions to increase the poor and vulnerable families’ access to social and economic inclusion services (DLI 4). Two “cash-plus” programs have been tested in five counties each, to improve child nutrition and sustainable “graduation” from poverty. Finally, under component 3, the project finances expanding coverage and strengthening shock responsiveness of Kenya’s flagship Hunger Safety Net Program (HSNP). 4. To date, the project has achieved 23 out of 27 DLRs, as listed in Table 1. Three out of the four remaining DLRs are on track to be achieved before December 2024. However, the project experienced significant implementation delays throughout its lifespan. Due to a series of prolonged shocks including the Covid pandemic and a prolonged drought. From 2020 to 2023, KSEIP faced inadequate and infrequent funding to the project’s Eligible Expenditures Programs , comprised of four national cash transfer programs,1 as well as other activities. Without adequate and predictable budgetary and disbursement arrangements, attainment of DLIs was significantly delayed. The GoK undertook important reforms on adequate financing, predictable disbursements, and improved timeliness of cash transfers under the auspices of the Fiscal Sustainability and Inclusive Green Growth Development Policy Operation (FSIGG DPO - P180339). Since the implementation of these reforms in August 2023, the cash transfers have been fully financed and paid on time. However, 1EEP for the project includes cash transfers made under the National Safety Net Program (NSNP) for the Cash Transfer for Orphans and Vulnerable Children (CT-OVC), Persons with Severe Disability Cash Transfer (PWSD-CT); Older Persons Cash Transfer (OPCT) (excluding 70+) and the Hunger Safety Net Programme (HSNP). Page 1 The World Bank Kenya Social and Economic Inclusion Project (P164654) due to the sluggish pace of implementation in previous years, the project has been unable to absorb a significant portion of the IDA funds allocated to the standard IPF components of the project. B. Restructuring Rationale 5. A restructuring is required for four reasons. First, to cancel one DLR that has become unachievable due to policy changes in the health sector. Second, to cancel excess IDA resources representing cost savings in the standard IPF components of the project. Third, to create additional DLRs that both advance the development objective of KSEIP and allow effective absorption of remaining grant resources. And fourth, to increase the DA ceiling for SDSP to ensure efficient access to IPF funds to complete all remaining activities in the remaining project period. Table 1. Status of DLRs No. DLR description Amount Amount Status (IDA, (Grant, Euro m) US$ m) DLI 1: Scope, coverage, and functionality of Single Registry enhanced 1a (i) - Design and implementation arrangements for 1 5.2 Achieved. enhancements in SR finalized 1a (ii) - Roll out of enhanced SR covers at least 75% of targeted 2 4.3 Achieved. households in 2 non-HSNP counties 1a (iii) - Roll out of enhanced SR covers at least 75% of Achieved but not 3 12.9 targeted households in 16 non-HSNP counties yet disbursed. Pending (27 non- 1a (iv) - Roll out of enhanced SR covers at least 75% of 4 16.4 HSNP counties targeted households in 39 non-HSNP counties completed) 1b (i) - Re-registration exercise in the four original HSNP 5 3.5 0.5 Achieved. counties completed and beneficiary list updated accordingly Partially 1b (ii) - Registration of households in the four expansion HSNP 6 4.3 0.5 achieved and counties complete disbursed. DLI 2: New Inua Jamii Payment Mechanism for three NSNP cash transfer programs is rolled out 2a - 60% of beneficiaries receiving payments through the new Achieved. 7 7.8 payment mechanism Achieved, but 2b - 100% of beneficiaries receiving payments through the 8 4.3 not yet new payment mechanism disbursed. DLI 3: Integrated G&CM mechanism is strengthened and rolled out at decentralized level 3a - G&CM mechanism is functional at all levels for four NSNP 9 8.65 Achieved. programs in 47 counties 3b - Enhanced G&CM mechanism functional in all KSEIP Pending (rollout 10 counties as per revised design and implementation 8.65 underway and arrangements near completion) DLI 4: Increased access to social inclusion interventions 4a (i) - 1,700 households receiving nutrition-sensitive cash Achieved. 11 1.2 transfer Page 2 The World Bank Kenya Social and Economic Inclusion Project (P164654) 4a (ii) - 8,300 households receiving nutrition-sensitive cash Achieved. 12 4.6 transfer 4a (iii) - 13,800 households receiving nutrition-sensitive cash Achieved. 13 3.8 transfer 4a (iv) 19,400 households receiving nutrition-sensitive cash Achieved but not 14 3.9 transfer yet disbursed. 4a (v) 23,500 households receiving nutrition-sensitive cash Achieved but not 15 2.9 transfer yet disbursed. 4b (i) - Tools designed and formal agreement between the Achieved. 16 SDSP, MoH and NHIF in place to operationalize systematic 3.4 enrolment of NSNP beneficiaries into the NHIF 4b (ii) - 40% of NSNP beneficiaries enrolled in the NHIF with Achieved. 17 4.3 enrolment information available in the SR 4b (iii) - 75% of NSNP beneficiaries enrolled in the NHIF with No longer 18 5.2 enrolment information available in the SR achievable. DLI 5: Increased coverage and GoK financing of HSNP 5a (i) - 10,000 new HSNP households enrolled and paid for 12 19 Achieved. through the GoK's budget in 2 expansion counties 5a (ii) - 22,000 new HSNP households enrolled and paid for 13 20 Achieved. through the GoK's budget in 4 expansion counties 5b - 100% of existing HSNP households in the original four 13 9.6 21 Achieved. counties financed by the GoK by July 2019 DLI 6: HSNP scalability and financing arrangements enhanced 6a (i) - Financing plan for HSNP scalability for FY19/20 adopted 22 0.865 Achieved. and financed 6a (ii) Emergency payments made in FY18/19 for 100% of the 23 total number of households triggered in 4 counties where 3.5 6.9 Achieved. HSNP is functional 6a (iii) Emergency payments made in FY19/20 for 100% of the 24 total number of households triggered in 4 counties where 1.7 11.5 Achieved. HSNP is functional and financing plan for FY20/21 updated 6a (iv) Emergency payments made in FY20/21 for 100% of the 25 total number of households triggered in 4 counties where 1.7 11 Achieved. HSNP is functional and financing plan for FY21/22 updated 6a (v) Emergency payments made in FY21/22 for 67% of the 26 total number of households triggered in 6 counties where 6.9 1.5 Achieved. HSNP is functional and financing plan for FY22/23 updated 6b (i) - HSNP scalability strategy reviewed, updated, and 27 0.865 Achieved. adopted Total Financing 157 44.5 6. Notwithstanding the challenges experienced by the project, the PDO remains relevant and achievable with the proposed adjustments in duration and financing. All but one of the project’s DLRs are on track to be achieved and do not require any IPF financing. All but one of the project’s results framework targets will have sufficient financing to be completed even after the partial cancellation of IDA credit. In consultation with project implementation agencies and the Page 3 The World Bank Kenya Social and Economic Inclusion Project (P164654) co-financing partner (FCDO), the proposed changes presented below would allow the project to mitigate the short-terms risks stemming from the country`s fiscal situation and absorb the remaining TF co-financing productively. II. DESCRIPTION OF PROPOSED CHANGES A. Linkage to Health Coverage (DLR 4b(iii)) 7. DLR 4b aims to establish a mechanism for systematic enrollment of all National Safety Net Program (NSNP) beneficiaries in the National Hospital Insurance Fund (NHIF). It has three intermediate targets, of which the first two have already been met. However, the GoK abolished the NHIF in early 2024 and established a new entity called the Social Health Authority (SHA) to govern a new Universal Health Coverage (UHC) initiative. Before it was abolished, the project had achieved 53 percent enrolment of NSNP beneficiaries in NHIF. As the NHIF can no longer accept new enrolments, the project can no longer achieve the 75 percent target for DLR 4b(iii), which has an allocation of IDA 5.2 million Euro. The new entity has only begun registering individuals into the new program and it will take time to establish a new referral mechanism for NSNP beneficiaries. Hence, DLR 4b(iii) and its associated IDA allocation will be canceled. B. Cancellation of IDA Resources 8. The restructuring will cancel EUR 40.2 million from the IDA credit as cost savings from the project, as these resources will not be utilized before the revised closing date. This includes cost savings from the standard IPF allocations of all three components. In addition, it includes EUR 8.8 million that were allocated for HSNP emergency cash transfers which have not been triggered and are not expected to be triggered before the project closes.2 For this reason, the resources allocated to the emergency transfers will be reduced to zero. This change and the cancellation will not affect achievement of the DO, remaining DLRs, or results indicators as these are on track to be achieved even without these resources. C. Reallocation of Remaining IDA and Grant Resources 9. The restructuring will also shift IDA funds between components as follows: (a) EUR 9 million to be shifted from IPF to DLR under Component 3 to allow for documentation of an advance to the GoK in June 2023 for DLRs 5 and 6, which have since been achieved, (b) reallocation of EUR 1.75 million from Component 1 DLR to Component 3 DLR to account for the documentation of DLR 1b(ii) to Component 3 in November 2022. These reallocations across components will allow for streamlined accounting at project closure. Table 2. Cancellation and Reallocation of IDA Resources Description Amount (EUR millions) IPF from Components 1 and 2 25.8 DLR from Component 2 6.95 IPF from Component 3 18.2 DLR from Component 3 -10.75 Total Cancellation 40.2 10. Approximately US$4.9 million remains in the grant that cofinances KSEIP. To ensure these funds are utilized toward activities that advance the PDO of KSEIP, the Bank, FCDO, and GoK have agreed on three new DLRs that can be 2HSNP offers regular, ongoing cash transfers and emergency, time-bound cash transfers to households affected by severe drought. The severity of drought is determined by a vegetation cover index (VCI) based on externally monitored satellite data. Page 4 The World Bank Kenya Social and Economic Inclusion Project (P164654) realistically achieved in the project’s revised lifespan. They are listed in Table 3. The first two DLRs will enhance the sustainability of the HSNP by investing in upgrades of its digital capabilities and by transitioning all project management unit (PMU) positions from externally- financed consultants to GoK staff. The use of DLRs will provide incentives to GoK to hasten the completion of these long-pending activities before project closure. The verification protocol for the new DLRs 1c(i) and 1c(ii) will involve documentary evidence that the digital systems have been rolled out and/or are in use and that GoK officers have been appointed to all HSNP PMU positions. The third DLR will further expand the NICHE program from the original end target of 23,500 to 30,000 households. This scale-up will not only benefit an additional 7,500 households directly, but also lay the ground for the much larger expansion of NICHE that is envisioned under KSEIP2. The GoK can gain valuable hands-on experience in streamlined registration and service delivery processes that have been planned for KSEIP2. The verification of the new DLR 4a(vi) will follow the same procedure as the existing DLRs 4a(i) through 4a(v). Table 3. Proposed New DLRs Proposed Result Amount allocation from new DLR grant cofinancing 1c(i) Complete upgrade of HSNP data center and Management Information US$2 million System (MIS), and develop a mobile application for HSNP MIS 1c(ii) Completion of HSNP transition plan, replacing all contracted Program US$0.9 million Management Unit with Recipient’s civil servants 4a(vi) 30,000 households receiving nutrition-sensitive cash transfer US$2 million TOTAL US$4.9 million D. Designated Account 11. The SDSP will need to complete critical activities, including transfers to beneficiaries, in the remaining project period. The project has also, at times, faced delays in access to IPF funds even after they have been disbursed by the World Bank. To ensure efficient access to IPF resources to finance these remaining activities before project closure, the ceiling of SDSP’s DA will be increased from Euro 3 million to Euro 5 million. E. Results 12. One of the project’s PDO-level indicators is: “Number of households receiving nutrition-sensitive cash transfer”. This indicator had an original end target of 23,500 households. This restructuring will increase this end target to 30,000 to align with the new DLR introduced in Section D. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Cancellations Yes Disbursements Estimates Yes Reallocations Yes Page 5 The World Bank Kenya Social and Economic Inclusion Project (P164654) Development Objective No Loan Closing Date Extension No Safeguard Policies Triggered No Financial Management No ISDS No Procurement No MFD/PCE No Institutional Arrangement No Risks No Implementation Schedule No Legal Covenants No Conditions No Implementation Modalities No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Cancellations Reason Value Loan/Credit/ Current Cancellation New for Status Currency Date of Trust Fund Amount Amount Amount Cancellati Cancellation on Disbursi LOAN IDA-63480- 215,900,000. 40,200,000.0 175,700,000.0 ng&Rep EUR 29-Oct-2024 RESTRUCT 001 00 0 0 aying URING, Page 6 The World Bank Kenya Social and Economic Inclusion Project (P164654) COST SAVINGS TF-A9527- Disbursi 64,000,000.0 USD 0.00 64,000,000.00 001 ng 0 Reallocations IDA-63480-001 Cancellations (if any): New Allocation: Currency: EUR 40,200,000.00 175,700,000.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 Gds,NCS,CS,TRN,OC 47,500,000.00 16,604,754.30 21,700,000.00 100.00 0.00 prt 1&2; 2 Eligible Exp Program 105,300,000.0 60,150,000.00 98,350,000.00 100.00 0.00 prt 1&2; 0 3 Eligible Exp Program 42,900,000.00 42,480,040.47 53,650,000.00 100.00 0.00 prt 3; 4 Gds,NCS,CS,TRN,OC 11,400,000.00 1,137,861.51 2,000,000.00 100.00 0.00 prt 3 (except Emergency Cash Transfers); 5 Emergency Cash 8,800,000.00 0.00 0.00 100.00 0.00 Transfers under Part 3 of the Project; Total 215,900,000.0 175,700,000.0 0 0 TF-A9527-001 Cancellations (if any): New Allocation: Currency: USD 0.00 64,000,000.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 Gds,NCS,CS,TRN,OC 12,000,000.00 9,740,931.16 12,000,000.00 100.00 0.00 prt 2b; 2 Eligible Exp Program 1,000,000.00 500,000.00 1,000,000.00 100.00 0.00 prt 1; 3 Eligible Exp Program 43,493,810.00 40,750,000.00 47,499,750.00 100.00 0.00 prt 3; 4 Gds,NCS,CS,TRN,IncO 7,506,190.00 3,500,243.47 3,500,250.00 100.00 0.00 C prt 3; Total 64,000,000.00 64,000,000.00 Page 7 The World Bank Kenya Social and Economic Inclusion Project (P164654) DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Implementation Start Date Operation Closing Date 27-Nov-2018 31-Dec-2024 Projected Date for Full Disbursement 13-Feb-2024 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 27 Nov 2018) FY2019 11,700,000.00 0.00 0.00 FY2020 55,900,000.00 50,649,118.15 50,649,118.15 FY2021 39,850,000.00 22,492,282.88 22,492,282.88 FY2022 75,850,000.00 15,827,847.68 15,827,847.68 FY2023 54,150,000.00 53,368,835.98 53,368,835.98 FY2024 12,550,000.00 70,991,915.31 50,736,135.01 Page 8 The World Bank Kenya Social and Economic Inclusion Project (P164654) RESULTS COUNTRY: Kenya Kenya Social and Economic Inclusion Project Note to Task Team: The following sections are system generated and can only be edited online in the Portal. Delete this note when finalizing the document. @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Strengthening social protection delivery systems Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year An SR, linked to the Dec/2018 Roll-out completed 23-Sep-2024 Roll-out completed 23-Sep-2024 Roll out completed Dec/2024 MIS of four cash in 27 non-HSNP in 27 non-HSNP in 39 non HSNP transfer programs, is counties, pending counties, pending counties Number of counties where the roll functional with links third-party third-party out of enhanced Single Registry to the IPRS validation of data validation of data covers at least 75 percent of targeted quality quality households (Text) PBC Comments on achieving targets Household data collection and data processing exercise has been completed in 35 out of 47 counties, which includes eight HSNP counties. The independent data quality assessment (QA) is completed for phase 1 and 2 counties and QA of phase 3 counties is underway. Increasing Access to Social and Economic Inclusion Interventions Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Number of households receiving 600.00 Dec/2018 31,777 23-Sep-2024 31,777 23-Sep-2024 30,000.00 Dec/2024 nutrition-sensitive cash transfer Comments on achieving targets Over 30 thousand households were in receipt of NICHE top-ups and nutrition counselling as of September 2024. (Number) PBC 0.00 Dec/2018 10.00 23-Sep-2024 10.00 23-Sep-2024 9.00 Dec/2024 Page 9 The World Bank Kenya Social and Economic Inclusion Project (P164654) Number of sub-counties where Comments on achieving targets As of September 2024, 7740 participants are receiving services under Cohort 2 of EIP. Previously, 7290 economic inclusion model is initiated participants completed Cohort 1 of EIP. Both cohorts are implemented in the same 10 sub-counties. (Number) Improving the shock-responsiveness of the Safety Net System Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Number of new regular HSNP 0.00 Dec/2019 28,999 23-Sep-2024 28,999 23-Sep-2024 32,000.00 Dec/2024 households enrolled and paid for Comments on achieving targets NDMA is currently paying monthly transfers to 28,999 Group 1 households in the expansion counties. through the GoK’s budget in expansion counties (Number) PBC Intermediate Results Indicators by Components Component 1 - Strengthening Social Protection Delivery Systems Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year IRI 1: Percentage of beneficiaries 0.00 Dec/2018 100 23-Sep-2024 100 23-Sep-2024 100.00 Dec/2024 receiving payments through the new Comments on achieving targets DSA has made progress linking its system with the ESR MIS to use the registry data for replacement of the Inua Jamii Payment Mechanism for Consolidated Cash Transfer Program`s (CCTP) beneficiaries. This long-pending replacement has allowed DSA to the Consolidated Cash Transfer reach 100 percent coverage through the new payment mechanism. Program (Percentage) PBC G&CM system for all Dec/2018 The enhanced 23-Sep-2024 The enhanced 23-Sep-2024 Enhanced G&CM Dec/2024 four NSNP programs G&CM is currently G&CM is currently functional in all piloted in 20 sub- being rolled out. being rolled out. KSEIP counties IRI 2: Integrated G&CM mechanism is counties strengthened and rolled out at decentralized level (Text) PBC Comments on achieving targets The nationwide rollout of the decentralized GCM system was completed years ago. Since then, DSA has developed and implemented a GCM enhancement framework, roadmap, and eGCM operational guidelines and reporting tool. In 2024, they also completed enhancements in the GCM module of CCTP MIS. The complete system including new MIS module is currently being rolled out as of September 2024. Page 10 The World Bank Kenya Social and Economic Inclusion Project (P164654) BOS for the CCTP Dec/2019 Roll-out pending 23-Sep-2024 Roll-out pending 23-Sep-2024 Enhanced BOS rolled Dec/2024 rolled-out in 20 sub- out in all 47 counties IRI 3: Beneficiary Outreach Strategy counties for NSNP and KSEIP rolled out (Text) Comments on achieving targets The eBOS has been validated. Its rollout has been delayed by competing priorities, including KSEIP DLRs. The roll out is now planned to start from October 2024 through a cascaded mode of training. DSA is developing county specific roll-out plans . 0.00 Dec/2018 437,028 23-Sep-2024 437,028 23-Sep-2024 341,500.00 Dec/2023 Comments on achieving targets This indicator counts individual beneficiaries, both direct and indirect, of KSEIP-supported interventions: HSNP Beneficiaries of social safety net beneficiaries in expansion counties as well as NICHE and economic inclusion beneficiaries. 31,777 households programs (Number) were enrolled in the NICHE program in ten sub-counties. Another 15030 have benefitted from the Economic Inclusion pilot. HSNP disbursements in expansion counties stands at 28999. The indicator`s value is an estimate made using the methodology described below. Beneficiaries of social safety 0.00 Dec/2019 218,514 218,514 170,750.00 Dec/2023 net programs - Female (Number) Component 2 - Increasing Access to Social and Economic Inclusion Interventions Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 30 percent of NSNP Dec/2018 53% 23-Sep-2024 53% 23-Sep-2024 75 percent of NSNP Dec/2024 households enrolled beneficiaries in the NHIF but no enrolled in the NHIF IRI 5: Establishment and systematic referral implementation of referral system in place mechanism for the NHIF (Text) Comments on achieving targets Prior to KSEIP, 223 thousand or 27 percent of NSNP beneficiary households were enrolled in the government- subsidized health insurance managed by NHIF. By early 2024, that figure had increased to 53 percent under the KSEIP project. Since then, NHIF has been closed so no further progress has been made. IRI 6: Number of households 600.00 Dec/2018 31,777 23-Sep-2024 31,777 23-Sep-2024 23,500.00 Dec/2024 receiving package of nutrition- Comments on achieving targets Currently more than 30 thousand households are enrolled in NICHE and received their top-ups and nutrition sensitive social protection services counselling as of September 2024. (Number) Component 3 - Improving the Shock Responsiveness of Safety Net System Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Page 11 The World Bank Kenya Social and Economic Inclusion Project (P164654) Result Month/Year Result Date Result Date Result Month/Year IRI 7: Percentage of payments that 35.00 Dec/2018 100.00 23-Sep-2024 100.00 23-Sep-2024 75.00 Dec/2024 are made on time to Payment Service Comments on achieving targets Since August 2023, all payments have occurred within the month that they are due. Providers for transfer to regular HSNP beneficiaries (Percentage) IRI 8: Percentage of regular HSNP 64.00 Dec/2018 100.00 23-Sep-2024 100.00 23-Sep-2024 100.00 Dec/2024 cash transfers financed by the GoK in Comments on achieving targets No change since previous ISR. the original four HSNP counties (Percentage) HSNP re-registration Dec/2018 Fully completed in 23-Sep-2024 Fully completed in 23-Sep-2024 HSNP registry Dec/2024 in four original original and original and updated and linked counties has expansion counties. expansion counties. with enhanced SR IRI 9: HSNP registration exercise in commenced according to design original and expansion counties and operating completed (Text) procedures Comments on achieving targets No change since previous ISR. HSNP scalability Dec/2018 Updated HSNP 23-Sep-2024 Updated HSNP 23-Sep-2024 Updated HSNP Dec/2024 strategy in place scalability strategy scalability strategy scalability strategy implementation has implementation has implemented begun, but no scale- begun, but no scale- IRI 10: HSNP scalability strategy up payments have up payments have updated (Text) yet been triggered yet been triggered in FY24/25. in FY24/25. Comments on achieving targets The scalability financing strategy, implemented from July 2024 for the financial year 24/25, has been updated. However, with the region experiencing above-average rainfall, no scale-up payments have been triggered so far in FY24/25. Performance-based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline End Target Result Date Result Date Page 12 The World Bank Kenya Social and Economic Inclusion Project (P164654) 1 Number of counties An SR, linked to the where the roll out of MIS of four cash Roll-out completed enhanced Single Registry Value transfer programs, is Roll-out completed in in 27 non-HSNP covers at least 75 percent functional with links 27 non-HSNP counties, counties, pending of targeted households to the IPRS 23-Sep-2024 pending third-party 23-Sep-2024 third-party (Text) validation of data validation of data Allocated quality Total 0.00 quality 0.00 Allocation:37,396,000.00 Amount 2 IRI 1: Percentage of Value 0.00 beneficiaries receiving payments through the new Inua Jamii Payment Mechanism for the Consolidated Cash Allocated 100 23-Sep-2024 100 23-Sep-2024 0.00 0.00 Transfer Program Amount (Percentage) Total Allocation:14,000,000.00 3 IRI 2: Integrated G&CM G&CM system for all mechanism is four NSNP programs Value strengthened and rolled piloted in 20 sub- The enhanced out at decentralized level counties The enhanced G&CM G&CM roll out is 23-Sep-2024 23-Sep-2024 (Text) roll out is underway. underway. Total Allocated 0.00 0.00 Allocation:20,000,000.00 Amount Revise 4 Number of Value 600.00 households receiving nutrition-sensitive cash Allocated 31,777 23-Sep-2024 31,777 23-Sep-2024 transfer (Number) 0.00 3,400,000.00 Total Amount Allocation:34,000,000.00 Value 0.00 28,999 23-Sep-2024 28,999 23-Sep-2024 Page 13 The World Bank Kenya Social and Economic Inclusion Project (P164654) 5 Number of new regular HSNP households enrolled and paid for through the GoK’s budget in Allocated expansion counties 0.00 0.00 Amount (Number) Total Allocation:58,300,000.00 6 Number of new regular Value 0.00 HSNP households enrolled and paid for through the GoK’s budget in expansion counties Allocated 28,999 23-Sep-2024 28,999 23-Sep-2024 0.00 0.00 (Number) Amount Total Allocation:49,444,400.00 Note to Task Team: End of system generated content, document is editable from here. Delete this note when finalizing the document. Page 14