Japan’s ODA to Kenya

2009/2/1
Last Updated: 1st of February 2009
 

1. Significance of Japan ’s Economic Cooperation to Kenya

Kenya occupies a geographically important position in East Africa and plays leading political and economic roles. Kenya also contributes to stabilization of peace and security in the region. The relationship with Japan has been favorable, thus maintaining and developing a stable relationship has great significance.

  Kenya has a high potential of development in Sub-Saharan Africa such as geographical conditions and relatively high education standards and makes efforts towards democratization and economic reform. Assisting Kenya ’s effort through Japan ’s ODA will be very meaningful in terms of priority subjects of the ODA charter, such as “poverty reduction” and “sustainable development”.

 

2. Basic Principles

Kenya laid down “Economic Recovery Strategy (ERS) for Wealth and Employment” in June, 2003. Afterwards, it was updated to “Investment Program for the ERS”, so called “IP-ERS” to be supported by the World Bank and IMF as Kenyan PRSP.

IP-ERS focuses on “Recovery and acceleration of economic development”, “Equity and poverty reduction” and “Improvement of governance”. Japan , as one of the major donors in Kenya , has been assisting Kenya ’s effort through implementation of  IP-ERS  with the following principles.
  1. Respecting Kenya ’s ownership and intention as much as possible and avoiding donor’s supply-driven aid.
  2. Giving greater importance in assisting Kenya ’s self-help efforts and limiting charity-type aid which tends to foster dependency.
  3. Considering Japan ’s comparative advantage and utilizing Japan ’s own experience and expertise.
  4. If appropriate, adopting regional approach with a spill over effect towards surrounding countries.
  5. Taking notes for Kenya ’s governance, considering cost-effectiveness of aid, and working towards improving quality and effectiveness of aid towards Kenya .
Note: The government of Kenya is now working on “VISION2030” and a follow-up of IP-ERS which covers January 2008 to December 2012.

 

3. General Outline

Considering the basic principles above, Japan implement assistance towards Kenya with the following five priority areas based on “ Japan ’s Country Assistance Program for the Republic of Kenya ” designed in August 2000.

(1) Human Resources Development
(a) Primary and Secondary Education (b) Higher and Technical Education  
(2) Agriculture and Rural Development  
(3) Economic Infrastructure
  (4) Health and medical services
  (5) Environmental conservation  

4. Past performance

Unit: Billion yen
 
Financial Year
Loan
Grant
Technical Cooperation
Total of Grant and TC
Total
2001
-
4.8
3.1
7.9
7.9
2002
-
1.0
2.7
3.8
3.8
2003
10.6
1.4
2.8
4.2
14.8
2004
-
2.0
3.2
5.2
5.2
2005
-
2.6
3.0
5.9
5.9
2006
5.6
3.7
2.9
6.6
12.2

(Loan and Grant are E/N based, TC is JICA expenditure based)
 
 
Reference : DAC countries ODA towards Kenya (N et base, Unit: Million USD )
 
Year
1
2
3
4
5
Japan's Amount
Total
2001
UK
55.1
JAPAN
46.7
US
43.4
GERMANY
32.5
NETHERLANDS
23.1
46.7
270.5
2002
US
102.4
UK
54.4
GERMANY
27.1
FRANCE
17.6
JAPAN
17.4
17.4
288.1
2003
US
11.2
UK
79.4
GERMANY
35.4
SWEDEN
25.6
FRANCE
20.5
-6.6
320.3
2004
US
140.9
JAPAN
70.9
UK
45.8
GERMANY
41.7
FRANCE
32.2
70.9
470.7
2005
US
137.8
UK
86.3
JAPAN
60.9
GERMANY
49.6
FRANCE
42.1
60.9
376.7
2006
US
282.4
UK
107.8
JAPAN
106.2
SWEDEN
51.9
GERMANY
45.4
106.2
761.2
 

5. Process of Project Formation

  1. For grant scheme and technical cooperation, new project proposals formations start in March. After a number of consultations between Japan and Kenya government, annual policy dialogue of economic cooperation between the two governments is held in August. After the consultation, the proposals are submitted to headquarters of the ministry of foreign affairs in Tokyo .
  2.  For Loan scheme, proposals from Kenyan government are accepted throughout the year, but the adoption is decided in consideration of the state of implementation of ongoing projects, debt repayment capacity and efforts towards anti-corruption.
 

6. Coordination with other partners

To make economic cooperation to Kenya more effective and efficient, Japan sees aid coordination with other partners is important, thus actively participates in the following coordination framework in Kenya .
  (1) Kenya Coordination Group (KCG)
This is the dialogue sphere between Kenya government and donors. KCG is chaired by the Finance Minister and is held as the need arises.
 
(2) Donor Coordination Group (DCG)
Major donors participate in DCG meetings regularly chaired by the World Bank to exchange opinions and information regarding Kenya ’s politics, economy and development issues.
 
(3) Harmonisation, Alignment and Coordination (HAC)
17 partners who have signed the Paris Declaration have regular HAC meetings to carry on harmonisation agendas in Kenya . In September 2007, the government and the partners launched “Kenya Joint Assistance Strategy (KJAS)”. 

 

7. Ongoing Economic Cooperation Projects  ( As of February, 2009)

(1) Human Resources Development
(2) Agriculture and Rural Development
(3) Economic Infrastructure
(4) Health and Medical Services
(5) Environment Conservation  

■ Japan Overseas Cooperation Volunteers (JOCV) and Senior Volunteers (SV)

JOCV: 48 volunteers  
SV  :  1 volunteer
 

■ Grassroots / Human Security Grant Aid

Performance of FY2007: 9 projects adopted amounting to about 0.76 million USD
 

■ Others

Food Aid (via WFP), Non-Project Grant Aid