,f

     THE WORLD BANK                                 Kenya Country Office
                                                    Delta Center, Menengai Road, Upper Hill       Tel: (254-20) 293 6000
      IBRD • IDA   I WORLD BANK GROUP               P.O. Box 30577- 00100                         Fax: (254-20) 293 6380 / 381
                                                    Nairobi




                                                                                              November 14, 2024



     Hon. CPA John Mbadi Ng'ongo
     Cabinet Secretary
     The National Treasury and Economic Planning
     Treasury Building
     Nairobi, Kenya


     Dear Hon. CPA Ng'ongo,

              Republic of Kenya: Credit No. 6348-KE and Grant Number TF0A9527
                          Kenya Social and Economic Inclusion Project
                                     Letter of Amendment

             We refer to the Financing Agreement ("Financing Agreement") between the Republic
     of Kenya ("Recipient") and the International Development Association ("Association"), and
     the Grant Agreement ("Grant Agreement") between the Recipient and the Association, acting
     as administrator of Kenya Social and Economic Inclusion Project Multi-Donor Trust Fund
     (collectively, "Agreements"), both dated January 31, 2019, for the Kenya Social and Economic
     Inclusion Project ("Project"). We also refer to your letter dated October 25, 2024, requesting
     the Association to restructure the Project, received by the Association on October 29, 2024.

             The Association is pleased to inform you that it concurs with your requests and has
     agreed to:

            (i)        cancel from the Credit, as of October 29, 2024, an amount of€ 40,200,000 and
                       consequently amend the withdrawal table under Section III.A of Schedule 2 to
                       the Financing Agreement, as set forth in Annex I to this letter.

            (ii)       amend Schedule 4 of the Financing Agreement as set forth in Annex II to this
                       letter.

            (iii)      amend the withdrawal table set forth under Section IV.A.2 of Schedule 2 to the
                       Grant Agreement, as set forth in Annex III to this letter.

            (iv)       amend Schedule 3 of the Grant Agreement as set forth in Annex IV to this letter.

            The capitalized terms used in this letter and not defined herein have the meaning
     ascribed to them in the Agreements.

            All other provisions of the Agreements, except as herein specifically amended, shall
     remain in full force and effect.
Hon. CPA Ng'ongo                              -2-                       November 14, 2024



        Please confirm your agreement, on behalf of the Recipient, to the amendments
mentioned above by countersigning and dating the two original copies of this amendment letter
and returning one countersigned and dated original to the Association. Upon receipt by the
Association of the countersigned and dated original copy, this amendment letter shall become
effective as of the date of the countersignature.



                                         Sincerely,



                                      Anne Bakilana
                              Acting Head of Office, Kenya
                            Eastern and Southern Africa Region




AGREED:

REPUBLIC OF KENYA




Name:     ~D~M~\

Title:   [;Jt-(b,rk? SER-f<E?M-2--'/

Date:    o~bJGn?--Y
Hon. CPA Ng'ongo                                 -3-                      November 14, 2024



 Annex I


             Category                Amount of the       Percentage of Expenditures to be
                                    Credit Allocated                Financed
                                  (expressed in Euro)          (inclusive of Taxes)
   (1) Goods, non-consulting         21,700,000         100%
       services, consulting
       services, Training, and
       Incremental Operating
       Costs for Parts 1 and 2
       of the Project
   (2) Eligible Expenditure          98,350,000         100% of each DLI Amount set out in
       Programs under Parts 1                           Schedule 4 (or such lesser percentage
       and 2 of the Project                             as represents the total Eligible
                                                        Expenditures incurred by the
                                                        Recipient under the Eligible
                                                        Expenditure Program as of the date of
                                                        withdrawal).
   (3) Eligible Expenditure          53,650,000         100% of each DLI Amount set out in
       Programs under Part 3                            Schedule 4 (or such lesser percentage
       of the Project                                   as represents the total Eligible
                                                        Expenditures incurred by the
                                                        Recipient under the Eligible
                                                        Expenditure Program as of the date of
                                                        withdrawal).
   (4) Goods, non-consulting         2,000,000                         100%
       services, consulting
       services, Training, and
       Incremental Operating
       Costs for Part 3 of the
       Project (except
       Emergency Cash
       Transfers)
  (5) Emergency Cash                     0                             100%
      Transfers under Part 3 of
      the Project
  Subtotal                          175,700,000
  Cancelled as of October 29,        40,200,000
  2024
  Original Credit Amount            215,900,000
                                                           -4-


                                                                                                   Annex II


                                                 SCHEDULE4
                                      Disbursement Linked Indicators Matrix

                   Year 1            Year2             Year3           Year4       Year 5        Year 6(FY24/25)
                 (FY19/20)         (FY20/21)         (FY21/22)       (FY22/23)   (FY23/24)

                                                   1a (iii) - Roll
               1a (i) - Design     la (ii)- Roll   out of                                    la (iv) - Roll out of
               and                out of           enhanced SR                               enhanced SR covers at
               implementatio      enhanced SR      covers at                                 least 75% of targeted
               n                  covers at        least 75% of                              households in 39 non-
               arrangements       least 75% of     targeted                                  HSNP Counties (EUR
               for                targeted         households in                             16,400,000)
               enhancements       households in    16 non-
               in SR finalized    2 non-HSNP
                                                   HSNP
               (EURS,200,00       Counties
                                                   Counties
               0)                 (EUR
                                  4,300,000)       (EUR
                                                   12,900,000)
               lb (i)- Re-        lb (ii)-
               registration       Registration
               exercise in the    of households
               four original      in the four
               HSNP               expansion
DLI 1:         Counties           HSNP
Scope,         completed,         Counties
coverage,      and                complete
               beneficiary list   (EUR
and
               updated            4,300,000)
functionalit
               accordingly
y of Single    (EUR
Registry       3,500,000)
enhanced                                                                                     l(c)(i) Complete
                                                                                             upgrade of HSNP data
                                                                                             center and Management
                                                                                             Information System
                                                                                             (MIS), and develop a
                                                                                             mobile application for
                                                                                             HSNP MIS
                                                                                             (EURO)
                                                                                             l(c)(ii) Complete HSNP
                                                                                             transition plan, replacing
                                                                                             all contracted Program
                                                                                             Management Unit staff
                                                                                             with the Recipient's
                                                                                             civil servants
                                                                                             (EUR 0)
                                                         -5-


                  Year 1          Year2             Year3           Year4        Years         Year 6(FY24/25)
                (FY19/20)       (FY20/21)         (FY21/22)       (FY22/23)    (FY23/24)
DLI 2: New    2a - 60% of                                                     2b- 100%
Inoa Jamii    beneficiaries                                                   of
Payment       receiving                                                       beneficiari
Mechanism     payments                                                        es
for three     through the                                                     receiving
NSNP cash     new payment                                                     payments
transfer      mechanism                                                       through the
programs      (EUR                                                            new
are rolled    7,800,000)                                                      payment
out                                                                           mechanism
                                                                              (EUR
                                                                              4,300,000)

              3a - G&CM                                                       3b -
DLI3:         mechanism is                                                    Enhanced
Integrated    functional at                                                   G&CM
G&CM          all levels for                                                  mechanism
              all four NSNP                                                   functional
mechanism
              programs in                                                     in all
is
              47 Counties                                                     KSEIP
strengthene                                                                   Counties as
              (EUR
d and         8,650,000)                                                      per revised
rolled out                                                                    design and
at                                                                            implement
decentraliz                                                                   ation
ed level                                                                      arrangeme
                                                                              nts (EUR
                                                                              8,650,000)

              4a (i) - 1,700   4a (ii) - 8,300   4a (iii) -                   4a (iv)       4a(v)23,500 households
              households       households        13,800                       19,400        receiving nutrition-
              receiving        rece1vmg          households                   households    sensitive cash transfer
              nutrition-       nutrition-        receiving                    receiving     (EUR 2,900,000)
              sensitive cash   sensitive cash    nutrition-                   nutrition-
              transfer (EUR    transfer          sensitive cash               sensitive
              1,200,000)       (EUR              transfer                     cash
                               4,600,000)        (EUR3,800,0                  transfer
DLI 4:                                           00)                          (EUR
Increased                                                                     3,900,000)
access to                                                                                   4(a)(vi) 30,000
social                                                                                      households receiving
                                                                                            nutrition-sensitive cash
inclusion
                                                                                            transfer (EUR 0)
interventio
              4b (i) - Tools   4b (ii) - 40%
ns
              designed and     ofNSNP
              fonnal           beneficiaries
              agreement        enrolled in
              between          the NHIF
              SDSP, MoH        with
              and NHIF in      enrollment
              place to         information
              operationalize   available in
              systematic       the SR (EUR
              enrollment of    4,300,000)
                                                       -6-


               NSNP
               beneficiaries
               into the NHIF
               (EUR
               3,400,000)



                   Year 1          Year2             Year3          Year4         Years     Year 6(FY24/2S)
                 (FY19/20)       (FY20/21)         (FY21/22)     (FY22/23)      (FY23/24)
                                                 5a (i) -       5a (ii) -
                                                 10,000 new     22,000 new
                                                 HSNP           HSNP
                                                 households     households
                                                 enrolled and   enrolled
OLIS:
                                                 paid for       and paid for
Increased
                                                 through the    through the
coverage                                         Government's   Governmen
and                                              budget in 2    t's budget in
government                                       expansion      4 expansion
financing of                                     Counties       Counties
HSNP                                             (EUR           (EUR
                                                 12,000,000)    13,000,000)
               56 - 100% of
               existing HSNP
               households in
               the original
               four Counties
               financed by
               the
               Government
               by July 2019
               (EUR
               13,000,000)



                    Year 1          Year2           Year3          Year4          YearS     Year 6(FY24/2S)
                  (FY19/20)       (FY20/21)       (FY21/22)      (FY22/23)      (FY23/24)
               6a (i) -         6a (iv)                         6a (v)
               Financing plan   Emergency                       Emergency
               forHSNP          payments                        payments
DLI6:          scalability,     made in                         made in
HSNP           FY19/20          FY20/21 for                     FY21/22
scalability    adopted and      100% of the                     for 100% of
               financed         total number                    the total
and
               (EUR             of households                   number of
financing
               865,000)         triggered in 4                  households
arrangeme                                                       triggered in
                                Counties
nts                             where HSNP                      6 Counties
enhanced                        is functional                   where
                                and financing                   HSNP is
                                plan for                        functional
                                FY21/22                         and
                                updated                         financing
                                (EUR                            plan for
                                1,700,000)                      FY22/23
                 -7-


6a (ii)                updated
Emergency              (EUR
payments               7,800,000)
made in
FY18/19 for
100% of the
total number
of households
triggered in 4
Counties
where HSNP
is functional
(EUR
3,500,000)

6a (iii)
Emergency
payments
made in
FYI 9/20 for
100% of the
total number
of households
triggered in 4
Counties
where HSNP
is functional
and financing
plan for
FY20/21
updated (EUR
1,700,000)
6b (i) - HSNP
scalability
strategy
reviewed,
updated, and
adopted (EUR
865 ,000)
                                              -8-


                                                                                     Annex III

                Category                       Amount of the      Percentage of Expenditures
                                               Grant Allocated           to be Financed
                                             (expressed in USD)       (inclusive of Taxes)

( 1) Goods, non-consulting services, and         12,000,000       100%
     consulting services, Training, and
     Incremental Operating Costs under
     Part 2(b) of the Project

(2) Eligible Expenditure Programs under                           I 00% of each DLI Amount
    Part 1 of the Project                                         set out in Schedule 3 ( or such
                                                    1,000,000     lesser percentage as
                                                                  represents the total Eligible
                                                                  Expenditures incurred by the
                                                                  Recipient under the Eligible
                                                                  Expenditure Program as of
                                                                  the date of withdrawal).

(3) Eligible Expenditure Programs under                            I 00% of each DLI Amount
    Paii 3 of the Project                                         set out in Schedule 3 ( or such
                                                47,499,750        lesser percentage as
                                                                  represents the total Eligible
                                                                  Expenditures incurred by the
                                                                  Recipient under the Eligible
                                                                  Expenditure Program as of
                                                                  the date of withdrawal).

(4) Goods, non-consulting services,                               100%
    consulting services, Training, and
    Incremental Operating Costs for Part 3       3,500,250
    of the Project

SUBTOTAL                                        64,000,000

Cancelled as of June 20, 2023                    6,348,810

Original Grant Amount                           70,348,810
                                                        -9-


                                                                                         Annex IV

                                               SCHEDULE3

                                   Disbursement Linked Indicators Matrix

                                                                                       Year        Year 6
                                                                                         5       (FY24/25)
                                                                Year3        Year4     (FY2
                Year 1 (FY19/20)    Year 2 (FY20/21)          (FY21/22)    (FY22/23)   3/24)

                1b (i) - Re-
                registration
                exercise in the
                four original       lb (ii)-
                HSNP Counties       Registration of
                completed, and      households in the
                beneficiary list    four expansion
                updated             HSNP Counties
                accordingly         complete
                (US$500,000)        (US$500,000)
                                                                                               lc(i)
                                                                                               Complete
                                                                                               upgrade of
                                                                                               HSNP data
                                                                                               center and
DLI 1:                                                                                         Management
Scope,                                                                                         Information
coverage,                                                                                      System
and                                                                                            (MIS), and
functionality                                                                                  develop a
of Single                                                                                      mobile
Registry                                                                                       application
enhanced                                                                                       forHSNP
                                                                                               MIS
                                                                                               (US$2,000,000)
                                                                                               lc(ii)
                                                                                               Complete
                                                                                               HSNP
                                                                                               transition
                                                                                               plan,
                                                                                               replacing all
                                                                                               contracted
                                                                                               Program
                                                                                               Management
                                                                                               Unit staff
                                                                                               with
                                                                                               Recipient's
                                                                                               civil servants
                                                                                               (US$900, 000)
                                                     -10-


                                                                             4a(vi) 30,000
DLI4                                                                         households
Increased                                                                    receiving
access to                                                                    nutrition-
social                                                                       sensitive cash
inclusion                                                                    transfer
interventions                                                                (US$2,000,000)

                Sb - 100% of
                existing HSNP
DLIS:
                households in the
Increased
                original four
coverage and
                Counties financed
government
                by the
financing of
                Government by
HSNP
                July2019
                (US$9,600,000)

                6a (ii) Emergency
                payments made in
                FY18/19 for 100%
                of the total
                number of
                households                                6a (v)
                triggered in 4       6a (iv) Emergency    Emergency
                Counties where       payments made in     payments made
                HSNP is              FY20/2 l for 100%    in FY2 l /22 for
DLI6:           functional           of the total         100% of the
HSNP            (US$6,900,000)       number of            total number of
scalability                          households           households
and                                  triggered in 4       triggered in 6
financing       6a (iii) Emergency   Counties where       Counties where
arrangement     payments made in     HSNP is              HSNP is
s enhanced      FY19/20 for 100%     functional and       functional and
                of the total         financing plan for   financing plan
                number of            FY2 l /22 updated    for FY22/23
                households           (US$ l l ,000,000)   updated
                triggered in 4                            (US$2,300,000)
                Counties where
                HSNP is
                functional and
                financing plan for
                FY20/2 l updated
                (US$ l l ,500,000)