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ExecutiveSummary Kenya 1. Country background and Sidaoperations in KenyaAfter abuoyant period following independencefrom colonial rule in 1963, the Kenyaneconomy entered aphaseof stagnation from the mid-1970s.Over the 1990s,population increaseexceeded growthinGDP.Recovery in the mid-1990s,prompted by ac ombination of economic reforms and good harvests for the country's most valuable cashcrops,has not been sustained.Corruption and mismanagement haveadversely impacted upon investment.The government's unwillingness toi mplement economic reforms has undermined relations withdonors,especially the Bretton Woods institutions.Kenyais one of the least egalitariancountries in the world in terms of income distribution and access tokey resources.The poorest 20 per cent of the population ownonly 3 per cent of the nationalincome.Approximately 50 per cent of the population liveonless thanadollar aday.Statistics suggest the situation is worsening,especially in ruralareas.Inequalities are alsoapparent in the human rights field, where the failings of the judiciary, the policeand other stateinstitutions area significant feature.Poverty reduction and human rights are thereforecritical targets of Sidaactivities in Kenya. 2.Dialogueand government ownershipCorruption,maladministration and the disregardofh uman rights present significant barriers toKenyanownership.Failureof the government tointroduce reformin the 1990s led toa sharpdecline in donor contributions.However Swedishd evelopment assistance remained relatively constant over this period,although therehas been adramaticincreaseindisbursements made directly to specifica ctivities rather than through the finance ministry (MoF).This is intended to target aid moreefficiently,and is consistent withdecentralisation policies that enhanceparticipation,but it also constrains the role of the centralinstitutions of the Kenyangovernment in the management of expenditure.This indicates that nationalownership in Kenyac ontinues tobe viewed by Sidaa s problematical.Lacko f transparency in the administration of funds has been a recurrent issuei n the dialoguebetween Kenyaand its donors.xv and Sida thanbetween the government and any other donor.However,it is not clear that Sidahas used this position as effectively as it might have done.Acommon view put to us during our visit in March/April 2002 was that Sidais 'too hesitant'and 'too quiet'.This may bea result of continued ambiguity around the meaning of ownership. Major lessons from the evaluation of Ta nzaniaOwnership issues in Tanzaniaa reaffected by the institutionalcontext of eachn ationaland international s takeholder.This cani nvolve r ules governing selection of consultants; it caninvolveasymmetries in capacity; or it caninvolve the kind of constituencies to whichdifferent members of a partnership or donor-recipient relationship is accountable.Effective institutionalanalysis canhelp Sida toidentify the constraints on ownership and the possibility of removing suchconstraints.Wealsoo bserved in Tanzaniahow ownership has evolved during often quitelengthy processes of adaptation and experiment.This process has tended tofeatureconflict, and struggles over degrees and types of ownership.WhereSidahas alongestablished track-recordinagiven activity it is often in a strong position to sustain ownership ideals through suchconflict.Kenyacomponent of the study.Webegin withano verview of the Kenyanmacro-economiccontext in relation to the donor community,including Sida.The aim hereis toestablishkey trends and issues that relate to ownership,a nd top osition Sida within the donor group.The next,a nd most substantial section of our preliminary report on Kenya, provides our findings for eachof the six projects and programs under consideration in our study -the debt management project (from 1985-1995), health sector support, the NationalAgricultureand LivestockExtension Program, the NationalCivicE ducation Program, the support for the KenyaF ederation of Women Lawyers,a nd the Lake VictoriaI nitiative.The concluding section highlights four key questions regarding Sida's approach toownership in Kenya.Theseconcluding points areelaborated in greater detail in our accompanying synthesis report on generali ssues relating toownership.Part II adopts a similar structurei n the investigation of ownership in Uganda.The projects selected herecompliment thosefor Kenya, witha similar balancebetween sectors and coverage of project as well as programaid,and withattention being given tolarge-scale as well as smaller scale Sidaactivities.Here the key studies areof the UgandaParticipatory Poverty Assessment project; the HealthSector program, the Water,Environment and Sanitation programs; the FinancialSystems Development Program; support for coffeem arketing,a nd twop rojects in the field of human rights and democracy.Aconcluding section reviews ownership in Uganda under similar heads to thoseconsidered for Kenya.Tanzaniais the focus of Part III.Ananalysis of budget support forms a key element here,a longside study of the SWApi n the education sector, the FEMINAH ealthInformation Program,a nd t he Civil Service Reformprogram.The long-running HESAWA project is alsoexamined, as is support for the private sector.Part III of the report concludes witha discussion of criticali ssues affecting ownership in Sida's development assistance toTanzania, including institutionalconstraints,conditionality, the impact of the project cycle,questions of multiple ownership, the conflicts generated by ownership claims,and Sida's internalattitudes toward the ownership agenda.Ownership should beaddressed in co-operation and co-ordination with other donors (i.e.built-in tomultilateral support) Sida's development assistancei s necessarily,a nd in the present internationalp olicy climatei ncreasingly interrelated to the activities of other donors.Typically,more thano ne donor may bei nvolved in the same project or program.This is especially true with the shift from project aid toprogramaid that is currently apparent in Sidapolicy.For very practical reasons, the collectiveactivity of the 'donor-group' in Kenyahas been of unusualimportancein the past few years,and in Uganda-whereSida's assistanceis relatively recent in origin -Swedishaid has typically operated in conjunction witho ther donors.InTanzania, by contrast,S ida's longterme ngagement has strengthened bilaterall inks.The issueo f ownership, therefore,must alsobeaddressed through co-operation and co-ordination among donors,a nd it needs tobeasked whether donor partners shareSida's understanding of the ownership agendaand how it should best beimplemented.This question is already highly significant for Sida, and is unlikely todiminishinimportanceover the foreseeable future.G a p (% o f GDP) 198 0 4 .00.6 1 2 .8 7 .4 10.4 2 9.3 1 8 .9198 1 6 .09.3 1 2 .5 9.1 9.4 2 7 .8 1 8 .4 198 2 3 .9 1 6 .8 22.1 11.0 10.8 2 1.8 11.1 198 3 2 .5 6 .5 1 4 .6 1 3 .4 10.5 2 1.0 10.5 198 4 0.9 1 2 .99.0 1 4 .5 9.1 2 0.7 11.6 198 5 5 .1 10.2 8 .7 1 6 .4 1 5 .1 25. 6 10.5 198 6 5 .5 2 7 .6 8 .5 1 6 . 2 9.8 2 1.8 11.9 198 7 4 .9 1 2 .4 8 .7 1 6 .5 8 .0 2 4 .3 1 6 . 2 1988 5 .1 8 . 2 1 2 .3 1 7 .8 11.1 25.0 1 3 .9198 9 5 .1 2 0.8 1 3 .5 2 0.7 8 .9 2 4 .7 1 5 .8 1990 4 .2 1 5 .5 1 5 .7 2 3 .09.0 2 4 .3 1 5 .3 1991 2 .1 2 0.9 19.6 2 7 .7 9.3 2 1.0 11.7 1992 0.5 33.6 2 7 .4 3 2 . 2 11.6 1 6 .9 5 . 2 1993 0.2 2 5 .7 4 6 .0 5 8 .0 1 4 .1 1 7 .6 3 .5 1994 3 .03 0.4 2 8 .8 5 6 .1 1 5 .5 19.3 3 .8 1995 4 .8 1 8 .3 1.6 5 1.4 1 2 .8 2 1.8 9.0 1996 4 .6 2 3 .8 9.0 5 7 .1 1 5 .6 2 0.3 4 .7 1997 2 .4 1 6 .5 11.2 5 8 .8 10.4 1 8 .5 8 .1 1998 1.8 2 .4 6 .6 6 0.4 8 .5 1 7 .3 8 .8 1999 1.4 3 .93 .5 7 0.3 11.0 1 6 .1 5 .1 2 000 -0.3 0.8 6 . 2 7 6 . 2 10.3 1 4 .5 4 .2 198 0s * 4 .0 1 2 .910.9 1 4 .3 10.3 2 4 .2 1 3 .91990s * 2 .4 1 6 .9 1 4 .1 5 1.9 11.7 1 8 .97 .2 198 0 -2 000 * 3 .3 1 6 .4 1 4 .2 3 4 .011.0 2 1.4 10.4 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 TotlaMultilateral TotalBilateral TotalSida 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0
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