Lessons Learned from Fast Start Climate Change Program .../media/Kenya/NRM report/Final FSCCP...

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Royal Danish Embassy (Kenya) Lessons Learned from Fast Start Climate Change Program (FSCCP) in Kenya, (2011-2014) November 26, 2014

Transcript of Lessons Learned from Fast Start Climate Change Program .../media/Kenya/NRM report/Final FSCCP...

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Royal Danish Embassy (Kenya)

Lessons Learned from

Fast Start Climate Change Program

(FSCCP) in Kenya, (2011-2014)

November 26, 2014

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List of Contents

List of Contents................................................................................................................................................................................. i

Abbreviations ..................................................................................................................................................................................iii

Executive Summary ....................................................................................................................................................................... v

1. Introduction ............................................................................................................................................................................ 1

1.1 The Danida Fast Start Climate Change Programme (FSSCCP) ................................................................. 1

1.2 About the FSCCP Lessons Learned report ....................................................................................................... 1

2. The intervention logic of the FSCCP .............................................................................................................................. 2

2.1 Steps in developing the intervention logic ....................................................................................................... 2

2.2 The intervention logic of FSCCP ........................................................................................................................... 3

2.3 Linkage with the Danida country program in Kenya ................................................................................... 4

2.4 Kenya climate change policy and regulation context .................................................................................. 5

2.5 Danida FSCCP components ..................................................................................................................................... 6

3. Renewable Energy and Adaptation to Climate Technologies (REACT) window of AECF ...................... 7

3.1 REACT Intervention logic ........................................................................................................................................ 7

3.2 REACT design approach and implementation modality............................................................................. 7

3.3 REACT Main results ................................................................................................................................................... 8

3.4 REACT Funding status .............................................................................................................................................. 9

3.5 REACT findings and main lessons learned ....................................................................................................... 9

3.6 REACT Case ................................................................................................................................................................ 10

3.7 Summary of REACT status and progress ....................................................................................................... 12

4. Centre for Energy Efficiency and Conservation (CEEC) at Kenyan Association of Manufacturers

(KAM) ............................................................................................................................................................................................... 15

4.1 CEEC/KAM Intervention logic ............................................................................................................................ 15

4.2 CEEC/KAM Design approach and implementation modality ................................................................ 15

4.3 CEEC/KAM main results ....................................................................................................................................... 16

4.4 CEEC/KAM overall assessment of progress ................................................................................................. 17

4.5 CEEC/KAM funding status ................................................................................................................................... 17

4.6 CEEC/KAM findings and main lessons learned ........................................................................................... 17

4.7 CEEC/KAM testimonials ...................................................................................................................................... 18

4.8 Summary of CEEC/KAM status and progress .............................................................................................. 19

5. Community driven projects to reduce climate change risks with the Community Environment

Facility (CEF) at CDTF ............................................................................................................................................................... 23

5.1 CEF intervention logic............................................................................................................................................ 23

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5.2 CEF design approach and implementation modality ................................................................................ 23

5.3 CEF main results ...................................................................................................................................................... 23

5.4 CEF overall assessment of progress ................................................................................................................. 24

5.5 CEF funding status ................................................................................................................................................... 24

5.6 CEF findings and main lessons learned .......................................................................................................... 24

5.7 CEF Case Studies ...................................................................................................................................................... 25

5.8 Summary of CEF/CDTF status and progress ................................................................................................ 29

6. Resilience to climate change in pastoral communities in the arid lands of Northern Kenya ............ 32

6.1 NRT intervention logic .......................................................................................................................................... 32

6.2 NRT design approach and implementation modality ............................................................................... 32

6.3 NRT main results ..................................................................................................................................................... 33

6.4 NRT overall assessment of progress ................................................................................................................ 33

6.5 NRT funding status.................................................................................................................................................. 33

6.6 NRT findings and main lessons learned ......................................................................................................... 34

6.7 NRT Case ..................................................................................................................................................................... 35

6.8 Summary of NRT status and progress ............................................................................................................. 37

7. Monitoring and assessment of FSCCP progress .................................................................................................... 43

8. FSCCP financial status ...................................................................................................................................................... 45

9. Main Findings and Lessons Learned.......................................................................................................................... 46

9.1 FSCCP Main findings ............................................................................................................................................... 46

9.2 FSCCP Lessons Learned ........................................................................................................................................ 48

Annex 1: Financial Status ......................................................................................................................................................... 50

Annex 2: Links and flows between logical framework, monitoring and evaluation and lessons learned

............................................................................................................................................................................................................. 51

Annex 3: Kenya Climate Change Policy and Regulation Overview ......................................................................... 52

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Abbreviations

ABD : Agricultural Business Development

AECF : African Enterprise Challenge Fund

Afd : Agence Française de Développement

AGRA : Alliance for a Green Revolution in Africa

AMG : Aid Management Guidelines

ASAL : Arid and Semi-Arid Lands

BMO : Business Membership Organizations

BOT : Board of Trustees (of CEF/CDTF)

BSPS II : Business Sector Programme Support (2nd phase)

CCCU : Climate Change Coordination Unit

CDM : Clean Development Mechanism

CDTF : Community Development Trust Fund

CEEC : Centre for Energy Efficiency and Conservation (KAM)

CEF : Community Environment Facility

CIC : Climate Innovation Center

CIDP : County Integrated Development Plans

COP : Conference of the Parties

Danida : Danish International Development Assistance

DCED : Donor Committee for Enterprise Development

DfID : Department for International Development

DKK : Danish Kroner

EC : European Commission

EE : Energy Efficiency

EU : European Union

FSCCP : Fast Start Climate Change Program (of Danida in Kenya)

GHG : Green-House Gases

GoK : Government of Kenya

GRV : Green Growth Department (of Danida)

IGA : Investment Grade Audits

KAM : Kenya Association of Manufacturers

KCCAP : Kenya Climate Change Action Plan

KCCWG : Kenya Climate Change Working Group

KSH : Kenya Shillings

LFA : Logical Framework Analysis

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M&E : Monitoring and Evaluation

MFA : Ministry of Foreign Affairs (of Denmark)

MoEP : Ministry of Energy and Petroleum

MoU : Memorandum of Understanding

MTAP : Medium Term Arid Lands Program

NCCRS : National Climate Change Response Strategy

NEMA : National Environmental Management Authority

NRMP : Natural Resource Management Programme

NRT : Northern Rangeland Trust

ODA : Official Development Assistance

PELIS : Plantation Establishment and Livelihood Improvement Scheme

PS : Permanent Secretary

PSC : Programme Steering Committee

RDE : Royal Danish Embassy

RE : Renewable Energy

RE&EE : Renewable Energy and Energy Efficiency

REACT : Renewable Energy and Adaptation to Climate Technologies (of AECF)

SME : Small and Medium Enterprises

USD : United States Dollars

Exchange rate: 1,000 DKK ~ 15,6300 KSH

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Executive Summary

The Danida Fast Start Climate Change Programme in Kenya is one of Denmark’s funding of additional

climate support to developing countries that was committed after the COP15 in 2009. Kenya has

received DKK 110 million (2010: DKK 10 million, 2011: DKK 50 million, 2012: DKK 50 million) in fast

start climate change funding. The Kenya FSCCP makes up about 10% of the Danida committed and

delivered global funding of DKK 1,200 million for fast start climate change. The Fast Start Climate

Change Programme (FSCCP) is additional to the existing and planned Danish ODA to Kenya.

The FSCCP has been developed to stimulate the interest of the business sector in Kenya to take

advantage of emerging business opportunities related to clean technology and efficient resource use.

The FSCCP also addresses the specific vulnerability that is particularly faced in the arid and semi-arid

lands with further extreme and unpredictable weather events in a context where climate variability is

already a determining factor for livelihoods.

The aim of FSCCP was to ensure an added value and mainstreaming of climate change, to enhance the

overall impact of the Danida support, to reduce additional administrative burdens taking into

consideration the available staff resources at the Embassy, and to prepare for further inclusion of

climate change measures in the next phases of the development programme. While there is a separate

FSCCP document in the short term the climate change fund would be further integrated in the

development programs after 2015, e.g. as part of the Green Growth agenda.

The Danida FSCCP in Kenya aimed at catalyzing private sector innovation and business development

in addition to improve community resilience to reduce the risk and impacts of climate change (climate

change adaptation) and development of energy efficiency and renewable energy options contributing

to a low carbon development path (climate change mitigation).

Component 1: REACT /AECF- Private sector investment and innovation in low cost, clean energy and

adaptation to climate change technologies bringing innovative climate change products and services to

rural people in Kenya (only 2011 FSCCP).

Component 2: CEEC / KAM - Increased efficiency in energy and resource use in the manufacturing

sector in Kenya.

Component 3: CEF/CDTF – Community-driven initiatives reduce threats and conflicts related to

natural resource use and climate change risk.

Component 4: NRT – Resilience to climate change in pastoral communities in the arid lands of

Northern Kenya (only 2012 FSCCP).

The FSCCP is aligned with the Government of Kenya policies and strategies including the National

Climate Change Response Strategy and the resultant Kenya Climate Change Action Plan, which is under

implementation through Vision 2030 Medium Term Plans (MTP II 2013-2017).

The Components all delivered satisfactory results: 1) REACT in the first and second call for proposals

in 2011 and 2012 selected and funded 17 projects in Kenya. The progress and results according to the

targets in the FSCCP log-frame is included below, 2) CEEC/KAM carried out more than 200 additional

energy audits were carried out – 118 general energy audits and 87 investment grade audits – with

FSCCP support, 3) CEF funded an additional 24 projects with FSCCP support in addition to the 40 CEF

projects supported by the Danida NRM programme and 43 by EC and a tool to assess for climate

change mainstreaming of all CEF projects was developed, and 4) NRT has developed grazing plans in

14 conservancies reaching 12,000 households with 40,000 livestock on 1,9 million ha.

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Expected outputs were mostly delivered as expected. The emphasis was on core activities while

additional added value activities were delayed or omitted (e.g. DCE M&E for REACT, comprehensive

audits for KAM/CEEC, implementation of mainstreaming for CEF, and land-use plans for NRT).

The overall effect on mitigation of and adaptation to climate change as direct impacts of FSCCP is

limited in the short term. There are potential longer term larger impacts, but it remains an assumption

unless there is continuous follow up. The reason is that it has been a relative short-term intervention

addressing a long term challenge.

There was more progress in developing mitigation projects mainly on renewable energy and energy

savings. These included measures of indirect adaptation. But the inclusion of direct adaptation

activities was more difficult partly because it is difficult to define and communicate what specific

adaptation projects are, i.e. how they differ for development oriented projects for example on water

resource management.

The reduction in GHG missions as a result of FSCCP is limited so far. While funding is for climate

change there is no policy objective that the FSCCP had reduction emission as the main target. The

benefits of reducing emission are globally shared and not kept in Kenya only. Although additional

funding from fast start is to support developing countries this also includes enhancing resilience to

climate change risks where the gains are kept in Kenya.

There is overall a weak M&E capacity to address outcomes and impacts. The M&E of activities and

outputs is partly satisfactory with room for improvements. There is a good level of tracking of

activities but little linkage to the derived effects. The improved M&E is not only for the sake of

reporting to the donor, but also to develop and track internal knowledge to extract best practices,

bench-marks and progress.

Although it was originally anticipated by Danida that the FSCCP would be implemented in a rather

short time horizon it was already decided in the design phase that at least 1 or 2 additional years for

implementation was required. Progress in implementation has been good but there is still the

requirement for no-cost extensions.

The design succeeded in achieving activities and outputs over a short period because support was

provided to established entities that were operational and able to quickly enter into an agreement or

just make use of an existing agreement.

The close linkage to the country programme has limited the administrative burden of the programme.

The additional work load due to the FSCCP for the RDE has been kept a minimum and integrated as

feasible with other processes, e.g. the annual programme review.

The FSCCP has in several ways made initial progress for the development of the Green Growth and

Employment intervention in the forthcoming Danida country programme for Kenya. Increased

attention to Green Growth topics (in particular to renewable energy and other energy efficiency and

energy access issues) have emerged as part of FSCCP.

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1. Introduction

1.1 The Danida Fast Start Climate Change Programme (FSSCCP)

The fast start climate change is additional funding pledged at the COP15 in 2009 in Copenhagen by

developed countries for climate change finance in developed countries. The non-binding agreement

reached at COP15 included provisions for further ‘accelerated’ financing for mitigation and adaptation

to climate change. The statement in the final document, the ‘Copenhagen Accord’, 1 emphasizes the

urgent need of additional funding: “scaled up, new and additional, predictable and adequate funding as

well as improved access shall be provided to developing countries, in accordance with the relevant

provisions of the Convention, to enable and support enhanced action on mitigation, including substantial

finance to reduce emissions from deforestation and forest degradation (REDD+), adaptation, technology

development and transfer, and capacity building”.

The pledged funding was USD 30.0 billion from 2010 to 2012. The fast start was a beginning to reach

the longer term goal of USD 100 million annually from 2020. Denmark established The Climate

Envelope in 2008 before the Copenhagen Accord. The commitments from the Climate Envelope from

2010 to 2012 were equal to the Danish fast start climate change finance. The Climate Envelope has

continued after the Fast Start period with an annual grant of DKK 500 million. Both adaptation and

mitigation had implicitly and explicitly been part of the Official Development Assistance (ODA)

sometimes referred to as climate change assistance but more often also just included like it was, e.g.

water resource management for adaptation and clean energy for mitigation. The specific tagging of

climate change funding has made it possible to track the direct funding for climate change finance.

One of the countries targeted with the additional fast start climate change funding was Kenya. Kenya

has received DKK 110 million (2010: DKK 10 million, 2011: DKK 50 million, 2012: DKK 50 million) in

fast start climate change funding. The Kenya FSCCP has been about 10% of the Danida committed and

delivered global funding of DKK 1,200 million for fast start climate change. The Fast Start Climate

Change Programme (FSCCP) is additional to the existing and planned Danish ODA to Kenya. The

content and design of the Kenyan FSCCP is further detailed in the next sections.

1.2 About the FSCCP Lessons Learned report 2

The purpose of this report is to prepare an end-of-programme status of the results of the FSCCP and

extract the main lessons learned. This will be used as a completion report of the FSCCP support to

Kenya. The report includes the Fast Start support of DKK 100 million in 2011 and 2012 and

implemented until the expected completion end of year 2014. The report does not include the initial

2010 Fast Start support (DKK 10 million) that has been reported separately.

The FSCCP lessons learned report will also be used as an input for the independent evaluation of the

Danish climate change funding to developing countries. Kenya is one of the case countries selected for

the evaluation. Furthermore, there are lessons of relevance for the forthcoming Danida country

programme for Kenya where one of the thematic areas is Green Growth and Employment. The FSCCP

lessons are also used for designing the forthcoming funding from the Climate Envelope for Kenya in

2015.

1 http://tinyurl.com/y9suq9b

2 The report is prepared by external consultants to Danida Michael Linddal and Stephen Mutimba in September and October

2014.

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2. The intervention logic of the FSCCP3

2.1 Steps in developing the intervention logic

The purpose of this section is to outline the intervention logic for the FSCCP (the 2011 and 2012

grants) and how it was determined. A more detailed discussion of the intervention logic for each of the

components is included in the following chapters.

Preceding the FSCCP in Kenya were a few other developments that already had included climate

change issues in the Danida country programme. In 2007 a climate change screening4 of the Danida

portfolio was carried out. The purpose was to assess the climate risks of the Danida portfolio and to

‘climate proof’ the development programme. In the design of the Natural Resource Management

Programme (NRMP) during 2009 support to climate change was included mainly to develop national

level strategies and capacity development. The Business Sector Programme Support (BSPSII) designed

during 2009 also included climate change related interventions mainly related to mitigation.5 There

have already been some good lessons bringing the NRMP and BSPSII closer, for example in the joint

Agricultural Business Development (ABD) component, and the FSCCP provided further opportunities.

The fast start climate finance from Danida to Kenya has come in three tranches. The first grant of 10.0

million DKK came in late 2010 was used to support smaller projects that already were identified by

RDE, e.g. proposals that had already been submitted from different partners to RDE for potential

funding. After a screening five projects were selected. There was no certainty whether the 2010 FSCCP

would be followed by an additional funding or be a one-time grant, so the funding was made to smaller

stand-alone projects. Although the supported projects were relative small a fund manager was

appointed to oversee the implementation and provide monitoring because the RDE did not have the

additional capacity. This was an initial lesson of FSCCP that the administration of FSCCP was to be

done within the existing capacity at the RDE.

In late 2010 it was decided by Danida to allocate 75.0 million DKK (later reduced to 50 million DKK

during the design phase) in 2011 for the FSCCP in Kenya as part of the Danida Fast Start commitment.

It was a considerable larger amount than for the 2010 FSCCP and the same project based approach

was thus not immediately feasible. None of the 2010 FSCCP projects were completed when the 2011

FSCCP was designed and they were neither ready for, nor relevant for scaling up. It would furthermore

take additional time to develop an expanded portfolio of smaller projects.

The 2011 FSCCP was also a one-year grant that had to be designed and all funding committed during

2011. The design and approval was completed in May 2011 and funding was released thereafter until

end of the year. It was agreed during the design to allow the actual implementation to continue until

2013 after an initial front loading of funds during 2011. It was at the time of the design of the 2011

FSCCP likely but not certain that there would be a similar grant for a 2012 FSCCP. It was requested by

Danida Copenhagen (GRV) not to contemplate an additional grant in 2012 in the design of the 2011

FSCCP.

It had been decided by RDE and agreed by GRV to focus the 2011 FSCCP on the private sector and civil

society with support to both adaptation and mitigation. Through other programs in Kenya including

3 ‘Intervention logic’ is here partly synonymous with the more recently and now widely used ‘theory of change’. The

structured intervention logic for the FSCCP is outlined in the logical framework.

4 Danida carried out climate change screenings of the portfolio in all partner countries as part of the implementation of the

Climate Change and Development Action Programme (2005).

5 It has been noted that in Kenya that Danida business development programme (BSPSII) was striving to become greener

while the environment programme (NRMP) was trying to engage more with private sector. This become even more evident

with the 2011 FSCPP thus making it an early case of a Danida support to elements of a green growth programme. In the

forthcoming Danida country programme for Kenya (2015-2020) the two programmes are in principle merged into a Green

Growth and Employment programme based on the past experiences including the FSCCP.

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the Natural Resource Management Programme (NRMP) assistance to climate change initiatives in the

public sector was already provided with Danida funding. The 2011 FSCCP was developed in

consultation and in full transparency with GoK, i.e. the Climate Change Secretariat of the then Ministry

of Environment and Minerals Resources (MEMR) and the Climate Change Coordination Unit (CCCU) of

the Office of the Prime Minister (OPM) as well as the PS of the Ministry of Planning. Consultations were

also held with the MEMR and OPM for the preparation of the 2012 FSCCP.

The scoping and design of the 2011 FSCCP began early 2011 with the development of the intervention

logic. It included mapping of ongoing and planned climate change support in Kenya by Danida and

other development partners. The purpose was to identify any potential gaps and scope for

interventions but also to ensure harmonization with other development partners also providing

climate change support to Kenya. It emerged from the mapping that there were a number of ongoing

activities and rather few opportunities if any ready for a larger stand-alone funding from Danida with

the 2011 FSCCP.

The next step was the development of a list of potential interventions. There were ten options

identified that were each scrutinized according to a number of criteria. The primary criterion was

relevance for the climate change objectives. Since there was no strategy or overall intervention logic

for the Danida FSCCP the scope was rather broad for both mitigation and in particular for adaptation.

Both the NRMP and BSPSII were designed few years earlier and these programmes already included

relevant climate change elements but without detailing how much of the budget was for climate

change. A lesson from the NRMP was that it had not been possible within the scope of that programme

to develop an intervention with emphasis on renewable energy although it had been part of the

intended focus in the NRMP concept note.

The next criterion included the feasibility for immediately launch and ability to develop results within

a short time frame. A challenge when it is considered that addressing climate change would be a long

term endeavor. This meant that working with already operational structures would be a priority in

order to deliver immediate results. The option to develop a Danida specific climate change funding

facility continuing the approach of the 2010 FSCCP was dropped for the very same reason. Moreover, it

was not relevant to develop an implementation structure like a grant mechanism for a grant that might

be used just once.

Harmonization also became the guidance in the intervention logic. By coincidence it was possible to

work closely with Dfid and the team preparing the UK fast start climate change support to Kenya

(STaRCK). That resulted in a coordinated effort in the support to civil society, e.g. by agreeing not to

have overlapping efforts (i.e. Danida supported CEF and Dfid supported a Sida established fund with

PACT, now ACT). In another case the support (i.e. with REACT) was coordinated and the two design

teams shared meeting schedules and had joint meetings with the partner (i.e. AECF).

A strategic choice made by RDE was to direct the 2011 FSCCP towards activities within or at least

potentially within the Danida country programme in Kenya. This made it possible to build on existing

relationships and agreements. It further helped moving faster from design to implementation although

there was a risk to exceed to implementation capacity of the partners. Secondly, as a result of the

FSCCP funding it would be possible further to mainstream climate change in the Danida country

programme in Kenya, i.e. having similar objectives whether funding was from the regular ODA or from

the climate envelope. Finally, but not least it was an administratively preferred option since no

additional staff time would be available for RDE to manage the FSCCP. Unlike for 2010 FSCCP no

external manager would be engaged for the 2011 and 2012 FSCCP.

2.2 The intervention logic of FSCCP

The FSCCP has been developed to stimulate the interest of the business sector in Kenya to take

advantage of emerging business opportunities related to clean technology and efficient resource use.

The FSCCP also addresses the specific vulnerability that is particular faced in the arid and semi-arid

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lands with further extreme and unpredictable weather events in a context where climate variability is

already a determining factor for livelihoods. Finally the FSCCP takes direct opportunity of the

forthcoming devolution of the public sector to the counties as a result of the new Kenya constitution

and the expected also further growth and ‘decentralization’ of the private sector in the counties.

Danida and other development partners have provided substantial grant support to the Government

of Kenya towards responding to climate change. The Danida FSCCP in Kenya aimed at catalyzing

private sector innovation and business development in addition to improve community resilience to

reduce the risk and impacts of climate change (climate change adaptation) and development of energy

efficiency and renewable energy options contributing to a low carbon development path (climate

change mitigation).

The FSCCP was designed to reach community level development options involving innovations and

resource management that can be scaled up. In addition the FSCCP target was also the more high-end

business models that would have systemic market impacts and addressing climate change through

private sector development. The development objective to support this purpose under the FSCCP is:

‘Communities and the private sector in Kenya use technology innovation to reduce vulnerability to

climate change and contribute to a low carbon development path’.

The 2012 FSCCP was combined with the 2011 FSCCP grant. With a short term implementation period

up to the end 2014 and emphasis on innovation projects, investments in energy efficiency and

community support the full impacts and change is expected to be in progress but not immediately

detectable. The immediate objectives for the components are:

Component 1: REACT /AECF - Private sector investment and innovation in low cost, clean energy and

adaptation to climate change technologies bringing innovative climate change products and services to

rural people in Kenya (only 2011 FSCCP).

Component 2: CEEC / KAM - Increased efficiency in energy and resource use in the manufacturing

sector in Kenya.

Component 3: CEF/CDTF – Community-driven initiatives reduce threats and conflicts related to

natural resource use and climate change risk.

Component 4: NRT – Resilience to climate change in pastoral communities in the arid lands of

Northern Kenya (only 2012 FSCCP).

The FSCCP is aligned with the Government of Kenya policies and strategies including the National

Climate Change Response Strategy and the resultant Kenya Climate Change Action Plan.

2.3 Linkage with the Danida country program in

Kenya

The FSCCP is aligned with the existing Danida

country programme to ensure mainstreaming of

climate change, immediate opportunities to achieve

results, and to ensure efficiency in the

administration of the FSCCP. The FSCCP is integrated

with the existing and planned development

cooperation between the two countries and made

use of existing implementation modalities of the

Business Sector Program Support (BSPS II) and the

Natural Resource Management Program (NRMP).

The more detailed results of the FSCCP are outlined

in the next sections in the components. The linkage

Figure 1: Overview of the FSCCP and linkage with

Danida programmes

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between the FSCCP and the country programme is outlined in the figure.

The FSCCP is additional to the existing and planned Danida official development assistance to Kenya.

The aim is to ensure an added value and mainstreaming of climate change, to enhance the overall

impact of the Danida support, to reduce additional administrative burdens taking into consideration

the available staff resources at the Embassy, and to prepare for further inclusion of climate change

measures in the next phases of the development programme. While there is a separate FSCCP

document in the short term the climate change fund could be further integrated in the development

programs after 2015, e.g. as part of the Green Growth agenda.

2.4 Kenya climate change policy and regulation context

All economic sectors and private households in Kenya are facing the risks of climate change. The

climate change risks and the avoidance of those are costs burden on development that can be avoided.

Access to water, energy and resources are potential risks. Kenya also has the opportunity to explore a

low carbon growth and otherwise ensure that the contribution to climate change and exposure to the

risk are minimized. The FSCCP is supporting actions that reduce climate change risks and vulnerability

for communities and also makes the Kenyan economy less vulnerable to climate change risks. The new

Climate Change Bill includes an overview of the climate risks for Kenya.

The FSCCP is aligned to the National Climate Change Response Strategy (NCCRS), the follow up Kenya

Climate Change Action Plan (KCCAP), and the Climate Change Policy (in progress of promulgation).

Annex 3 includes an overview of the relevant climate change policy and regulations in Kenya. There

are few specific private sector targets or priorities, but the private sector is recognized by Vision 2030

and other government and related documents as a critical partner for low carbon development and for

economic growth to increase resilience to climate change risks. Danida through NRMP supported a

private sector sensitization project by the former OPM Climate Change Unit. The aim of the project was

to come up with a private sector climate change network or climate change business council, which

will articulate climate risks, challenges and opportunities inherent in climate change

The regulatory framework and incentives are essential for innovation and investments for addressing

climate change. It is not well implemented. The regulation, policy and institutions relevant for

addressing climate change are well developed in Kenya (not least with support from development

partners including Danida NRMP).

The FSSCP partners and activities are guided by the national policy and regulatory framework on

climate change. There is a wide range of possible actions and it is not possible to track specific

interventions to the climate change framework. One example is the mandatory requirements for

energy audits in the manufacturing sectors that have created a demand. According to the Climate

Change Secretariat the best contribution is to report on activities and results in order to build up the

knowledge base in Kenya on climate change adaptation and mitigation. The information can be

forwarded to [email protected]

The private sector and civil society have had a role in forming and implementing public sector

initiatives for addressing climate change risks. For example, KAM held the co-chair for the recent

development of the Climate Change Policy. In most case the influence from practical implementations

on public sector regulation by stakeholders is indirect and not formalized.

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2.5 Danida FSCCP components

Components Rationale Inputs and Targets Expected Scope and Impacts Implementation 2011 2012

1. Renewable Energy

and Adaptation

Climate Technologies

(REACT-Kenya)

High-end private sector

market development in

Kenya for renewable energy

and adaptation to climate

technologies. Within BSPS II

innovation component. Both

mitigation (renewable

energy) and adaptation in

REACT.

2011: 20.0 million DKK for:

15.0 mio DKK for 5-7 additional

projects in Kenya identified in 2nd

competition in 2012. 5.0 million

DKK for M&E (in 2012). Up to 50%

co-financing by REACT-Kenya.

Management fee (20%) for service

delivery by AECF (16%) and AGRA

(4%).

Contribute to the overall REACT

targets. On average five additional

projects will reach 25,000

households, 7,500 rural SMEs in

poor rural areas will have access to

low cost, clean energy and 50,000

smallholder farmers will have

access to climate resilient products

and services.

Only 2011 FSCCP.

Included in the BSPS II

MoU between AGRA/AECF

and RDE.

BSPS II provides 50

million DKK to REACT.

The FSCCP increased the

Danida grant to REACT by

40%.

2. Energy and

comprehensive

resource audits and

other Energy

Efficiency (EE)

measures

implemented by

CEEC/KAM

Developing and expanding

the capacity of KAM to meet

the demand for energy

audits and investment grade

audits in the manufacturing

sector. Develop business

cases, information and

support for improved

energy efficiency. Piloting

comprehensive resource

audits.

2011: 15.0 million DKK and

2012: 15.0 million DKK for:

Support to scale-up of existing

capacity of energy audits

(Information on EE and

communication strategy) and

comprehensive resource audits.

Pilot testing. Contribution to AFD

revolving fund for pre-feasibility

and feasibility studies in 2011.

Additional 50 Energy Audits and 25

Investment Grade Audits annually

until 2014. 10 comprehensive

resource audits annually.

Resulting in investments in energy

efficiency and resource

conservation. Focus on SMEs.

Piloting comprehensive resource

audits, e.g. water use and waste,

and EE of buildings.

MoU between KAM and

RDE in June 2011. MoU

Addendum added for

2012 FSCCP.

Inclusion of KAM as a new

implementation partner in

addition to BSPS II

partners is justified by the

additional FSCCP grants.

� �

3. Community

projects implemented

by CEF/CDTF

Community based

adaptation to climate

change and contribution to

reduced emissions.

Development of community

based approaches that can

be scaled-up. Both

adaptation and mitigation.

2011: 15.0 million DKK and

2012: 25.0 million DKK for:

Support to additional 14 projects in

2011/12 (10 was the target) plus at

least 15 additional in a new call in

2012. Mainstreaming of climate

change in CEF projects.

Increase in total EC and Danida CEF

budget by about 10 % sufficient for

at least 29 additional CEF projects.

The additional support will reach

up to 10,000 end-users. Inclusion of

private sector as service providers

and in a potential scaling up of

community owned nature based

enterprises.

Addendum to the NRM

program component 3.1.

In the NRM programme

Danida provides 85.0

million DKK to CDTF of

which 68.5 million DKK is

for project grants.

� �

4. Adaptation to

climate change in dry

land pastoral

communities in

northern Kenya.

Implemented by NRT.

Building rangeland health

and resilient livelihoods in

Northern Kenya. Planned

grazing based on a holistic

management approach

expanded from current pilot

sites to additional

conservancies.

2012: 7.5 million DKK for:

Support to implementation and

capacity development of planned

grazing and improved rangeland

management. Development of

improved rangeland health,

livelihoods, and vegetation and soil

carbon storage.

Planned grazing in communities in

at least 11 conservancies.

Monitoring of rangeland health

including soil carbon. Covering at

least 15,000 ha with at least 5,000

cattle and reaching at least 3,000

pastoralist households.

A component document

developed in October

2012 and agreement

entered.

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3. Renewable Energy and Adaptation to Climate Technologies (REACT)

window of AECF

The Africa Enterprise Challenge Fund (AECF) holds more than USD 200 million (2014) and operates

through several windows. One window is Renewable Energy and Adaptation to Climate Technologies

(REACT).6 REACT had calls for proposals in 2011 and 2012 and the third call was recent (Deadline was

on October 23, 2014).

3.1 REACT Intervention logic

The REACT component of FSCCP aimed at further catalysing the private sector investment and

innovation in low cost, clean energy7 and climate change technologies by bringing innovative climate

change products and services to rural people in Kenya, Tanzania and Uganda. The REACT addresses

both the supply side of provision of energy services (mitigation) but also access to finance and

reduction of climate change risks (adaptation).

The key features of the REACT/AECF is that it differs from the traditional venture capital fund

approach of ‘picking winners’ but rather seeks to ‘start races’ by, for example, supporting more than

one project within a given business opportunity and market segment. As a result it is not expected that

all projects will succeed and those succeeding will require additional time to mature into commercial

businesses.

The 2011 FSCCP was designed in close collaboration with DfID. DfID is a key partner for REACT. In the

design of FSCCP the meetings with AECP included both the Danida FSCCP and DfID climate programme

(STARCK) design teams.

3.2 REACT design approach and implementation modality

Support to AECF / REACT was already developed as a component of the BSPSII in 2009. The BSPSII

budget for REACT was DKK 50.0 million. The FSCCP grant was initially DKK 15.0 million in 2011 for

projects with the possibility of an additional DKK 5.0 million allocated in 2012 for M&E including

DCED8 compliance. The FSCCP was expected to result in the support to an additional five projects in

Kenya. The expected short term results are included in the log frame and progress is assessed below.

The FSCCP grant of DKK 15.0 million was added to existing Danida BSPSII grant existing to use the

same implementation modality as BSPSII. It included a 20% management fee (16% for the AECF fund

manager and 4% for AGRA). The FSCCP has been supervised by RDE as part of the BSPSII, and for

example included as part of the Danida reviews of BSPSII.

The FSCCP log-frame was based on the REACT log-frame. During the impementation it was realised

that the REACT log-frame required a revision to address both the demand from potential projects and

also other learnings, e.g. on the communication of business cases. It might have been an oversight that

the FSCCP (and possibly the BSPSII) log frames were not revised accordingly as several outputs

changes and some results indicators become obsolete. The fund manager noted that it had been

attempted to convene the donors and agree on the log frame revisions. It has not happened. Some of

the changed outputs were also those expected to justify the fee for the fund manager, e.g. on

6 For additional information on AECF and REACT: http://www.aecfafrica.org/windows/react-window

7 ‘Clean energy’ is defined as renewable energy, meaning technologies using renewable sources such as solar,

wind, biomass, biogas, geothermal, micro-and small-hydro, including energy efficiency measures that improve

the proportion of useful heat or power derived from renewable sources.

8 DCED: http://www.enterprise-development.org/page/measuring-and-reporting-results

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dissemination of results. According to the fund manger the division of work and expected deliveries by

REACT and AGRA is not clear.

Although REACT is regional for East Africa, the Danida funding was in theory ring-fenced for Kenya.

The Danida funding of DKK 70.0 million was 86% of the funding used for Kenya while the remaining

share was covered by DfiD. The FSCCP pro rata share of the Kenya window of REACT is around a

quarter (86% *DKK 15 million/DKK 65 million = 23%). This will be used in assessing the attribution of

results to FSCCP in Kenya.

3.3 REACT Main results

REACT in the first and second call for proposals in 2011 and 2012 selected and funded 17 projects in

Kenya. The progress and results according to the targets in the FSCCP log-frame is included below.

There has been a satisfactiry result on a number of projects and also projects dealing with renewable

energy technologies. Almost all projects (15) included renewable energy technologies with some

autonomous or indirect adaptation while other (2) emphasized other technologies (planned or direct

adaptation). Some (5) projects in addition also included elements of financial services.

The 2013 REACT portfolio report includes assessment of development impacts. These are mainly

presented as the aggregated regional impacts and not disaggregated at country level. Results based on

data provided by the fund manager are summarized in the table below.

Table: Overview of results and impacts of REACT in Kenya

REACT KENYA (2013 status) REACT Total Danida Danida FSCCP

100% ~85% ~25%

Investments

No. of projects funded 17 ~ 14 ~ 4

Funding committed (USD million) 10.7 9.2 2.6

Matching grants (leverage) (USD million) 19.9 17.0 5.0

Development Impact

Number of rural people benefitting from products

and services that help them adapt to climate change 3,520 ~ 3,000 ~ 900

Number of rural people served by low cost clean

energy products and services provided by REACT

projects (people / households)

237,390 /

48,000

205,000 /

40,000

60,000 /

12,000

Number of private sector jobs directly created in

REACT companies 261 225 65

Number of REACT companies and rural businesses

providing low cost, clean energy products and

services through REACT projects 750 650 200

Environmental Impact

Installed off-grid clean electricity capacity (MW

equivalent) 0.177 0.15 0.045

Part of the matching grants is from other donor support. For example, in one project (Cummings)

supporting gasification of the invasive Prosopis in Baringo the community involvement is a FSCCP

Community Development Trust Fund / Community Environment Facility (CDTF / CEF) project. In this

example the CDTF/CEF grant is included as a matching grant for REACT.

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The estimated impact of REACT is in the short run from the aggregated results of the projects

supported. This is overall rather modest compared to the investment, e.g. the resulting reduction in

emissions is so far insignificant. The real impact of REACT in Kenya will be the potential from a few of

the supported projects for a longer term scaling up on commercial terms (in the best case like an M-

PESA equivalent for renewable energy technologies). The main approach of REACT is the systematic

change to a specific market or sub-sector. One such emerging topic is the pay-as-you-go for energy

services where the financial services and technologies are integrated (see case).

3.4 REACT Funding status

The committed grant to the 17 projects in Kenya is USD 10.7 mio. USD (~ DKK 62 million) of which

USD 5.76 million USD (53%) was disbursed by June 2014. An estimated DKK 15.5 million is added for

the fund management fee. The FSCCP share of the budget for projects is DKK 15.0 million. This amount

has been disbursed by RDE. An estimated 53% (DKK 8.0 million) has been recorded as REACT

expenditures while the remaining is committed as grants to projects.

The DKK 5.0 million for M&E development and DCED compliance decided in May 2012 has not yet

been claimed by REACT. This amount has not been disbursed by RDE.

3.5 REACT findings and main lessons learned

Investing in innovation to address climate change is long term endeavor and it would not be necessary

be expected to have immediate and substantial results to be recorded after a few years. The real

impacts of REACT will take time to mature, which also places additional demands on the outcome and

impact monitoring system of REACT.

The DCED monitoring standard could have been more integrated at the onset of each project support.

It is planned only to have a full DCED certification of those projects that are likely to mature into

sustainable business models. Moreover, it is only recently that the DCED standard for challenge funds

was developed.9

A fund with repeated calls like REACT offers opportunities for adjusting calls based on lessons learned.

For example, the challenge of identifying direct adaptation projects has resulted in an adjusted focus

on addressing risks. Similarly it has revealed that there are emerging sub-sectors within renewable

technologies such as integrated payment systems. REACT has used lessons to adjust the log-frame.

Unfortunately the log-frame adjustment was not revised for FSCCP as well and has thus lead to a

rather weak monitoring framework for FSCCP with fewer measurable results. There is also

uncertainty of the exact division of work between AECF and AGRA on the REACT knowledge

management that has resulted in a delay in some outputs.

The linkage to an existing programme (BSPSII) has reduced transaction costs for RDE and increased

the scope of impact from the Danida grants. However, ideally a more efficient approach would be to

fund the same intervention through one single rather than several funding channels. At the initial calls

there was also a case of FSCCP funding unintentionally crowding out the BSPSII because of the

perceived urgency of using the fast start grants.

9 DCED for challenge funds: http://www.enterprise-development.org/page/download?id=2272

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3.6 REACT Case

PAYGO - Solar distribution through pay as you go business models in East Africa.

The Pay as you go-technology (PAYGO) is an emerging concept in solar energy companies in the

AECF REACT portfolio. Six REACT grantees (Mkopa, Mobisol, Offgrid Electrics, Fenix, BBOXX and

Suntransfer) have implemented this technology in their products (two of these are in Kenya).

The technology has been around for a long time, for example in the telecom industry; however,

utilizing it for applications such as energy distribution is a new and innovative approach. In the

ambience of the solar energy sector, the technology allows the end-user of the PAYGO to pay for

the system when used, through scratch cards or GSM technology. The threshold for access to clean

modern energy for the rural poor is lowered and a lower risk for the distributing companies is also

ensured.

During 2013, the six companies provided access to clean modern energy for 52,000 households in

Kenya, Tanzania and Uganda, equalling roughly 260,000 people. The products that are being fitted

with this technology are solar home systems. These consist of a small solar panel, which is

connected to a unit with a battery and control panel. To this unit, a number of lights are connected

and often there is a possibility to charge cell phones and connecting appliances.

The PAYGO business models are built around the concept of payments through mobile money and

an automatic switch off when customers do not pay for the product. Some of the companies have

chosen to manage this switch-off through built in timers while other turn off the systems remotely

via communicating with integrated SIM cards.

The cost for accessing daily electricity is less than the equivalent price for kerosene and provides

better lighting as well as access to appliances such as cell phone charging and radio. The set up and

the affordability enable the customer to access energy when they need it and can afford it, similar

to a top up in the telecom industry.

The benefits of these solar projects can be found in not only decreased expenditure on kerosene,

candles and batteries but also in improved health, improved lighting for homework, in decreased

emissions of CO2 equivalents from kerosene and reduced risk of accidental fires. On top of the

technology, the repayment period which varies from 12-24 months creates a continuous

relationship between the customer and the provider. The reputation of the solar PV sector has

previously been tarnished by cheap products and the REACT grantees are therefore investing in

after-sales service and customer care to ensure full customer satisfaction.

The main motivation for developing the PAYGO-technology has been risk management. The

technology has enabled the grantees to sell products on credit while lowering the risks associated

with defaults when providing products on credit. In a case of a default, the grantee can simply

repossess the system and reinstall it somewhere else. Through agreements with the mobile money

service providers, the mobile payments also allow for an integration of payment systems with the

companies’ management information systems (MIS). This allows for a fully digitalized process,

which facilitates the information management process and reduces risk further.

The funding provided to the grantees by AECF has had both direct and indirect consequences. First

off, the main usages of the funds have been product development, either with the actual product or

with the company’s MIS. One company used also the funds for scaling up the distribution network.

The REACT grantees claim to have had an easier time to attract the capital necessary for the

subsequent scale up after receiving the initial approval by the funding from AECF.

The potential of the PAYGO-technology is thus not limited to solar, or even to energy provision.

The technology can be integrated in anything electric and can facilitate to increase the affordability

of other products as well. Furthermore, an emerging trend is the third party providers, who will

develop a PAYGO platform for a company, customized to the needs and context of the country of

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operations.

The REACT PAYGO companies report that the possibility to remotely monitor the systems for

usage patterns, energy consumption, payment patterns significantly reduces costs of operations

and service costs. Furthermore, the possibility of maintaining a constant communication with their

customers further facilitates cost reduction. This is vital as the companies have to keep up

payment rates and keep the number of defaults as low as possible.

Overall, this emerging business model has a great potential to change the lives of poor people in

rural East Africa. The technology is well developed, tested and together with a powerful

information management system, the main parts of the PAYGO model are in place. Now the

companies are showing how to handle the operational and financial part of running businesses

where customers pay in small instalments and where the full cost recovery is within 12-24

months.

Solar home system and solar powered barber shop using PAYGO

Case and pictures by AECF

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3.7 Summary of REACT status and progress

Logical Framework Verifiable indicator and target Status of progress Comments on Progress

Component 1: REACT

Immediate Objective:

REACT will catalyse

private sector investment

and innovation in low cost,

clean energy and

adaptation climate change

technologies through

bringing innovative

climate change products

and services to rural

people in Kenya.

By 201310, USD 6 million

investment in low cost clean

energy and climate change

adaptation technologies catalysed

by the programme.

Businesses supplying clean

energy and adaptation services

report a significant improvement

in the environment to invest

(30% of businesses surveyed)

17 projects funded in Kenya in the 1st (2011)

and 2nd (2012) call for proposals. The

assumption in the REACT Log-Frame was

that 20 projects would be implemented in

Kenya.

The FSCCP share is ~ 4 projects (the target

was 5 projects). USD 19.89 million was

catalysed as investments by project

developers. The FSCCP share is ~ USD 5

million.

The target is satisfactory achieved on

leveraged investments and number of

projects supported by FSCCP.

It took USD 2.5 million (DKK 15.0 million) in

grants to leverage USD 5.0 million in

matching grants. 1 USD could leverage 2

USD.

AGRA is surveying the business community.

It has not been done for 2014.

10 The REACT targets are based on the milestones as set out in the REACT Log-Frame at the time of design. The REACT log frame was revised but the FSCCP log frame and

targets were not updated. The additional targets are for projects supported by the additional fast start climate change programme based on an estimated five projects. The pro

rata share of the REACT Kenya portfolio is 25% equal to the FSCCP share of allocated support in Kenya.

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Logical Framework Verifiable indicator and target Status of progress Comments on Progress

Output 1.1:

Clean energy products and

services providing lower

cost and more reliable

energy supply to rural

businesses and households

in off-grid areas

By 2013, 25,000 rural households

served by low cost, clean energy

products and services provided

by REACT projects.

By 2013, 3,750 rural businesses

served by lower cost, clean

energy products and services

provided by REACT projects

It is estimated that about 48,182 households

are served by REACT in Kenya. The FSCCP

share is about 12,000 households. Each

household gained about USD 20 as a result

of REACT, i.e. a net gain of around USD 1.0

million.

Number or business served is not monitored

(difficult to monitor downstream in the

value chain). The number of suppliers etc

(upstream in the value chain) is estimated at

750. The FSCCP share is about 200.

The scale of outreach is partly satisfactory,

i.e. about 50% of target for households.

With a grant of USD 2.5 million (DKK 15

million) the households gained an additional

USD 1.0 million. The full potential of the

investments when further scaled up is not

reached.

The generated capacity of energy production

is 0.177 MW as a result of the REACT

projects in Kenya. This is so far

insigninficant. The full portential has not

been reached. The energy produced and CO2

replaced has not been assessed in detail but

it is limited so far (a rought estimate is that

ist can be up to around 2,000 tCO2e p.a.).

Output 1.2:

Small-holder farmers

benefit from products and

services that help them to

adapt to climate change.

By 2013, 15,000 small holder

farmers benefiting from private

sector innovation in supply of

seed and other inputs and

investment in developing

markets for climate resilient

agriculture.

By 2013, 10,000 smallholder

farmers benefiting from

investment by large

agribusinesses in afforestation,

water capture and storage, and

irrigation.

By 2013, 25,000 smallholder

farmers with improved access to

knowledge of climate change

adaptation.

The indicators are not specifically assessed.

The initial assumption that adaptation

would concern mainly adaptation in

agriculture did not hold.

Increased access to energy has been assessed

to 3,520 persons or about 700 households.

The FSCCP share is about 175 households.

REACT has not succeeded in getting and

selecting direct adaptation projects.

It has been difficult to communicate what an

adaptation project might be. It was also

realised that it should not only be related to

agriculture (i.e. weather and water) projects.

In Kenya there are two adaptation projects

(crop insurance and solar powered

irrigation pump). Other projects have

elements of indirect adaptation, i.e. by

providing access to energy or otherwise

reduce risks to climate change exposure.

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Logical Framework Verifiable indicator and target Status of progress Comments on Progress

Output 1.3:

Financial service providers

facilitate greater

investment in lower cost,

clean energy and climate

change technologies and

help the rural poor access

them.

By 2013, USD 1.25 Million

increased lending by commercial

banks and existing micro finance

institutions to households and

SMEs that wish to invest in

renewable energy products and

adaptation technologies.

By 2013, 7,500 small holder

farmers with protected incomes

through climate related

insurance services.

One project (ECOSMART) has contributed to

lending of USD 311,791. The FSCCP share

would be around USD 80,000.

REAC has been partly satisfactory in

identifying and funding projects resulting in

financial services for renewable energy and

adaptation technologies.

There has been innovation with projects

integrating pay-as-you-go energy services,

e.g. solar home systems.

Output 1.4:

Communication helps to

spread successful business

models and advocacy helps

to improve policies

increasing the incentive to

invest and innovate.

By 2013, 25,000 poor people

benefiting from initiatives that

replicate business models and

technologies supported by REACT

through effective communication.

By 2013, at least one policy

process influenced by evidence

provided by REACT.

By 2013, 50% of REACT projects

are commercially viable.

Not assessed and removed from the revised

REACT log-frame.

No progress recorded as these activities are

no longer included in the REACT log-frame.

According to the ACEF fund manager this is

an output where the responsibility between

AGRA and AECF is not clear.

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4. Centre for Energy Efficiency and Conservation (CEEC) at Kenyan

Association of Manufacturers (KAM)

Kenyan Association of Manufacturers (KAM) is a Business Member Organization (BMO) of private

sector manufacturing companies in Kenya with 800 members. KAM provides subsidized services to

members and non-members including services to save energy and reduce costs. The Centre for Energy

Efficiency and Conservation (CEEC) was established by KAM in 2006. 11 It provides services to both

members and non-members of KAM for identifying potential reduction in energy consumption and

costs. This is mainly done through energy audits including general energy audits and investment grade

audits. The Ministry of Energy & Petroleum (MoEP), formerly Ministry of Energy, has a public-private

partnership with KAM to deliver energy services including to non-KAM members. MoEP provides an

annual grant of KES 30 million (~ DKK 2.0 million). The FSCCP provided an opportunity to expand the

level of energy services provided by CEEC.

4.1 CEEC/KAM Intervention logic

The support to CEEC would significantly expand the number of energy audits and increase

investments in energy efficiency in the manufacturing sector in Kenya. This would address a demand

side measure to reduce energy consumption and contribute to lower emissions compared to the

business-as-usual. CEEC would develop the demand for energy audits through promotion campaigns.

The education of energy auditors would ensure the capacity to meet the demand for energy audits.

The expanded energy audit scheme at CEEC would complement the Agence Française de Développement

(AfD) supported regional Renewable Energy and Energy Efficiency (RE&EE) programme based in

KAM, i.e. by supporting a pipeline of potential investments.

CEEC would develop capacity for comprehensive resource audits to include other productions factors

in addition to energy, e.g. water and raw materials, and waste. The aim would be for manufacturers to

reduce costs through resource efficiency expanding on the lessons from the energy audits. CEEC would

promote new technology including alternative energy production and consumption, e.g. biogas and

solar PV. This would for example be through exchange visits to pilot projects and demonstrations sites.

4.2 CEEC/KAM Design approach and implementation modality

KAM is a stakeholder in BSPSII and with participation in some of the components (eg. With EPS/ABD).

KAM was considered as a component in BSPSII but the collaboration did not materialise because only

three componenst could be supported in BSPSII. The FSCCP provided an opportunity to forge closer

links with BSPSII by supporting CEEC/KAM, and it was thought to be beneficial for BSPSII to be

engaged with the KAM as a memberbased association of private companies.

The support to CEEC was based on the FSCCP 2011 and FSCCP 2012 documents, and an MoU between

KAM and RDE. There was no separate component document and there was no detailled strategic or

work plan for CEEC available for the design of FSCCP. The targets and indicators were agreed as part of

the design of the 2011 FSCCP and revisited in the 2012 FSCCP.

The implementation of the component was done by CEEC. The implementation of the energy audits

was a scaling up of the audits already funded by Ministry of Energy (MoE). Between 2007 and 2013

there were 171 general enery audits and 45 investment grade audits with a subdisy from the MOE

support.

11 For additional information on CEEC and KAM: http://www.kam.co.ke/index.php/kam-services/energy-services

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The FSCCP followed the same approach as the audits supported with the MoE grants where 75% of the

costs for the general energy audits were covered as a subsidy and 100% of the more detailed

investment grade audits.

During the design good dialogue was established with AFD. AFD at the same time as the FSCCP

estalished a regional credit line for renewable energy and energy efficiency in KAM.12 The credit line

was € 30 million for Kenya. The credit line has provided an opportunity to finance relevant investment

while the FSCCP could contribute to develop a pipeline of potential investment grade projects. The link

was enforced by adding DKK 1.0 million into a revolving fund under the AFD programme. DKK 1.0

million is sufficient for one feasibility study with a repayment every six months, i.e. support to two

feasibility studies annually. The revolving fund would support feasibility studies and only those

funded are required to refund the support.

4.3 CEEC/KAM main results

More than 200 additional energy audits were carried out – 118 general energy audits and 87

investment grade audits – with FSCCP support. In addition to the increased access to fund energy

audits and expertise available it has also been a driving factor that since 2012 it has been mandatory

for larger energy users to have an energy audit carried out. All manufacturers using more than

180,000 kWh annually are required to carry out an energy audit by a licensed auditor and repeat this

every three years. The companies audited are required to implement at least 50% of the

recommendations.

Based on experience it is the assessment by CEEC that companies usually can save 15-30% in the

energy bill. The pay-back period for the proposed adjustments and investments is usually short

around 1-2 years. But the uptake of the proposed investments is rather modest, i.e. the proposed

investments/changes are not followed. The assessment after six month is that between 5% for the

larger investments, 15% of the medium investment and 30% of the smaller investments proposed are

actually carried out.

The table below summarizes all FSCCP supported energy audits from the 2011 to 2014 what the

annual potential savings are, what the required investment is, the simple pay-back period, and

estimated energy savings (i.e. replaced capacity). Actual investments based on the assessment of

uptake could be as low as 20% six months after the audit.

Overview of CEEC energy audits in FSCCP

Potential savings

p.a.

(mio KES)

Investment

required

(mio KES)

Simple Payback

Period (SPP)

(Yrs)

Energy

savings

(Mw eq.)

General audits (118) 631 1,535 2.4 4.9

IGA (87) 3,267 2,939 0.9 22.8

Sum (205) 3,898 4,474 1,1 27.7

There was limited progress with the comprehensive resource audits bringing in other production

factors than energy as well as the potential economic value of waste reduction or commercialization.

There was good progress on awareness of alternative energy production, e.g. mini-hydropower and

biogas. There are further technological, market and regulatory constraints to be addressed. A first step

has been to share information through exchange visits to pilot sites. The exchange visits were well

12 http://www.kam.co.ke/index.php/kam-services/energy-services/regional-techical-assistance-programme

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attended. No progress was made on piloting new technologies, and CEEC/KAM has concluded it is not

its role to initiate or fund piloting of new technology.

Biannual progress reports were forwarded to RDE. The progress reports provided some evidence of

activities but lacked details on progress on results and financial status.

4.4 CEEC/KAM overall assessment of progress

The overall progress on energy audits is satisfactory. The documentation of outcomes and impacts is

limited so far, but it is expected to be included in the forthcoming impact analysis (not yet made

available). The impact analysis includes the energy audits carried out from 2009 to 2012, i.e. including

about half (105 energy audits) supported by FSCCP in 2011 and 2012.

Progress on other activities has been limited. This includes the additional activities beyond the energy

audits such as piloting new energy technologies and developing comprehensive resource audits. KAM

has resolved that the role of CEEC is not to be engaged in piloting technologies or support such

activities. There was no progress in the M&E system. CEEC lacks a functional result based M&E system

that can track activities and managed relevant data. Without an M&E system the assessment of results

and progress is difficult.

The main constraint on the comprehensive resource audits has been the challenge of finding a

qualified consultant. This has recently been resolved and CEEC/KAM has contracted the Indian

Chamber of Commerce. It is expected some comprehensive resource audits will be prepared before the

end of 2014.

4.5 CEEC/KAM funding status

The total grant to CEEC / KAM was DKK 30.0 million. To date DKK 22.5 million has been disbursed

from Danida to KAM, and the expected expenditure by KAM will also be around DKK 22.5 million by

end of 2014. CEEC/KAM has requested a no-cost extension until mid-2015.

4.6 CEEC/KAM findings and main lessons learned

The energy and other resource related services of CEEC have the potential of becoming an important

element of a green growth agenda for the Kenyan manufacturing industry. While there has been a

good beginning and increase in the demand for energy audits the potential for energy and resource

use efficiency might be far from fully explored. With the FSCCP and MoE supported audits around 25%

of the KAM members had an energy audit carried out.

A key lesson is that the full potential of the energy audit mainly are achieved only if the companies

establishes relevant management structures. For example, by nominating energy managers and

establishing an energy task force or similar to monitor energy consumption and follow up on energy

savings measures is essential.

The management of data and M&E needs improvements. In addition to providing better reporting to

development partners this information will also be of internal value to CEEC for promotions, bench

marking and identification of good practices. One constraint is the companies are reluctant to share

process data. An approach may have to be developed to obtain and use data confidentially and without

the ability to track back to individually firms.

The FSCCP has facilitated CEEC to better understand its role as a broker between available

technologies and good practices and the demand of their members and non-members to reduce costs

through efficient resource use and also become more resilient towards potential climate related risks

for their production.

The FSCCP has also provided CEEC / KAM with additional experiences that are used to influence new

policies and regulation in particular in the energy sector but also in climate change. As noted earlier

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KAM was a co-chair the development of a climate policy. KAM has also played a significant role in

developing energy regulations and new standards for solar PV and biogas. Regulation that requires

energy audits was an effective driver for the demand for the energy audit services.

4.7 CEEC/KAM testimonials

CEEC testimonials from 2013 promotion campaign

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4.8 Summary of CEEC/KAM status and progress

Logical Framework Verifiable indicator and target Status of progress Assessment of progress

Component 2: Energy Efficiency, KAM

Immediate Objective: The efficiency in

energy and resource use in the

manufacturing sector in Kenya increased.

Implementation by companies of

recommendations of energy and resource

audits. 50% of recommended short term

measures implemented by the end of 2014.

The estimate made by CEEC of

the uptake is:

30% of low cost measures are

implemented.

15% of medium cost measures

are implemented.

5% long term cost measures

are implemented.

There is a follow up done with

each firm six months after the

audit. Data is available but not

compiled. Also data on barriers

to implementation is available

but not compiled. The reason

for a relative low uptake needs

to be explored.

More precise information is

expected in the Impact

Assessment on the uptake.

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Logical Framework Verifiable indicator and target Status of progress Assessment of progress

Output 2.1:

A substantial increased number of

comprehensive energy audits and

investment grade audits.

50 additional general energy audits and 25

investment grade audits carried out per

calender year (2012, 2013, 2014)

General energy audits: 118.

2011 (10), 2012 (61), 2013

(32), and 2014 (15)

Investment grade audits: 87

2011 (5), 2012 (29), 2013 (38),

and 2014 (15).

These are the additional

Danida funded. With MoE

support between 2007-2013,

171 general audits and

investment grade audits were

carried out.

Satisfactory outcome but

slightly below target for

general energy audits and

higher for investment grade

audits:

Total of 205 energy audits (118

general energy audits and 87

investment grade audits).

Lately the general energy audit

were in some cases merged

into the investment grade

audits.

Output 2.2:

Effective promotion towards both KAM and

non-KAM members of the benefit of

introducing EE measures.

One promotional campaign with national

coverage conducted annually, especially

targeting SMEs.

Three regional (Nairobi, Mombassa and

Western Kenya) promotional campaigns

carried out per year (2011, 2012, 2013,

2014).

Annual promotional campaigns

were carried out.

2011: 59 inequiries

2012: 78 inquiries

Satisfactory progress. No sub-

regional campaign carried out.

The national campaign targets

locations where industries are

concentrated.

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Logical Framework Verifiable indicator and target Status of progress Assessment of progress

Output 2.3:

Demonstration/ piloting to other

companies of the benefit of EE investments.

2011: 5 exchange visits carried out

annually in 2012 and 2013.

Cost sharing of 10 annual pilot projects to

test new technology and approaches.

2012: Year 2014 added.

Exchange visits: 15 exchange

visits carried out in 2012, 2013

and 2014. Emphasis on

renewable energy, e.g. biogas

and mini-hydro, than energy

efficiency.

No cost sharing of pilot

projects.

Exchange visits satisfactory.

Good interest from relevant

companies seeking, for

example inspiration renewable

energy solutions.

Limited progress with pilot

projects. Investments in pilot

activies did not take off. The

available budget considered

too small. Moreover it was

considered to be beyond the

scope of KAM to implement

pilot projects or provide due

diligence of such.

Output 2.4:

Facility for providing non-financial

assistance to companies for

implementation of recommendations of

energy audits established.

On an annual basis 10 companies use this

matching grant facility.

2012: Year 2014 added (but not additional

funding)

None

Output 2.5:

Comprehensive resource audits piloted

with a number of companies.

2011: 10 companies undergo a

comprehensive resource audit per calender

year.

2012: 10 more comprehensive audits

added for 2014.

Comprehensive resource

audits: None

No progress. No

comprehensive audits carried

out. The reason according to

KAM was that no qualified

consultant could be indentified

in Kenya. KAM has now

contracted Indian Chamber of

Commerce as a consultant. The

plan is to develop some

resource audits by end 2014

and the remaining up to 10 in

2015.

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Logical Framework Verifiable indicator and target Status of progress Assessment of progress

Output 2.6:

CEEC capacity increased to carry out audits. 2011: KAM employs sufficient additional

professional staff to manage the energy

efficiency scheme.

2012: Additional 30 auditors certified.

Staffing of CEEC: about 6

permanent staff of CEEC.

Number of auditors certified.

85 Certified Energy Managers

(CEM) and Certified

Measurement and Verification

Professional (CMVP):

2012: 32 (CEM) + 10 (CMVP)

2013: 15 (CEM) + 5 (CMVP)

2014: 23

The number of staff at CEEC is

assessed to be satisfactory.

Number of trained certified

auditors is satisfactory.

The number of qualified (short

listed) companies for energy

audits has increased from 5-6

to 13.

Output 2.7:

M&E framework and impact assessments. Results based M&E system developed and

implemented.

Impact assessment by year 2014.

No work done on the M&E

system.

An impact assessment is

ongoing covering audits from

2009 to 2012.

No progress on M&E

framework. There is an

opportunity to utitilise data

from energy audits and follow

up for assessing good

practices, barriers to up-take,

and energy savings potential.

Impact assessment – expected

draft report mid-October 2014.

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5. Community driven projects to reduce climate change risks with the

Community Environment Facility (CEF) at CDTF

The Community Development Trust Fund (CDTF) is a joint initiative of the Government of Kenya

(GoK), Danida and the European Union (EU). The objective to contribute to poverty alleviation by

offering support, in form of grants, to community-based projects which address social, economic and

environment priorities. The Community Environment Facility (CEF) is a CDTF component. The

objective of the CEF is to support community projects aimed at poverty reduction through improved

livelihood systems and the conservation of community natural resources and initiatives for enhanced

environmental management.13

5.1 CEF intervention logic

The purpose of the support was to develop community based support on renewable energy and other

climate change mitigation, to support community projects addressing adaptation to climate change

risks and to mainstream climate change in the CEF portfolio. In addition to funding concrete

community based projects the support should also enhance the overall capacity, skills and networking

of CDTF/CEF to address climate change adaptation and mitigation.

The interventions of FSCCP are in line with the National Climate Change Response Strategy (NCCRS).

The FSCCP should result in addition 25 CEF projects related to climate change mitigation and

adaptation.

5.2 CEF design approach and implementation modality

The FSCCP was provided as grant support to CEF / CDTF in addition to the existing grant provided

through NRMP. The same modalities would be used and the only difference would be the additional

funding and the emphasis on addressing climate change issues. In addition the provision was made for

two additional technical staff at the CEF PMU.

A log-frame for the FSCCP was developed that showed the expected results in addition to the NRMP

from the FSCCP. The status of FSCCP progress is included below.

An additional call only on the 2012 FSCCP grant was done. For this purpose an online application

system was developed and tested. The previous management of calls had been paper based and

processing of applications was substantial.14 The lesson from the electronic call was that the initial

part of the application process was more efficient. The final stages of the application process could

have involved the CEF PMU technical staff to a larger degree.

5.3 CEF main results

An additional 24 projects were supported by FSCCP in addition to the 40 CEF projects supported by the

Danida NRM programme and 43 by EC. Examples of FSCCP supported CEF projects are included in the

below.

In addition CEF/CDTF developed a tool to assess for climate change mainstreaming of all CEF projects.

But the actual implementation of identified opportunities is delayed. This was in phase II where

projects were only contracted in June 2014.

13 Additional information about CDTF: www.cdtfkenya.org

14 There were 492 applications of which 65 were shortlisted, 20 proposals went into full proposal development and of these

10 were funded, i.e. 2% of the total number of applications.

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CEF/CDTF has also managed to develop a new and stronger emphasis on renewable energy as a result

of FSCCP. This is further strengthened by a number of partner agreements and networking. But

funding for actively supported awareness development and partnerships is not yet utilized.

CEF/CDTF in general and in particular as a result of FSCCP has been able to contribute to national

policies with the perspective from the communities. It includes the climate change action plan and

climate change policy. It also includes issues related to renewable energy such as technology standards

for solar and biogas. But it is in particular in relation to the counties CEF/CDTF now plays a role. All

CEF projects are included in the County Integrated Development Plans (CIDP). Selected CEF projects at

county level are also used as demonstration projects to champion enterprise development and value

chains.

5.4 CEF overall assessment of progress

Overall progress is satisfactory. There has been a delay until June 2014 in the contracting of the ten 2nd

phase FSCCP projects. The delay was due to the recruitment of consultants for the on-line assessment

of proposals. The activities for additional mainstreaming of climate change were also delayed. The

delay was due to external factors such as the change in Government in 2013.

Support was provided by the NRMP to develop the M&E system for CEF/CDTF. This is about to be

implemented and it includes a new information management system. This is much needed for

CEF/CDTF to be able to track projects and finances but also be able to collect evidence of impacts and

good practices.

5.5 CEF funding status

The FSCCP grant to CEF/CDTF is DKK 40 million. According to CEF/CDTF the total expenditure to date

is KES 319 million (DKK 20.9 million) or about 50% of the FSCCP grant. Expenditures for support staff

and field verifications were KES 41 million (DKK 2.7 million). The total amount allocated to projects is

KES 523 million (DKK 34.3 million) of which KES 278 million (DKK 18.2 million) (53%) is disbursed to

projects and KES 245 million (DKK 16.0) is outstanding commitments. The outstanding balance not

committed to projects is estimated to be DKK 3.1 million.

CEF has been granted an extension period in NRMP to June 2016. There is also an extension of FSCCP

but that could be shorter until June 2015.

5.6 CEF findings and main lessons learned

CEF/CDTF has made good progress on the renewable energy portfolio addressing and gaining

experiences with all complex issues of implementation, i.e. appropriate technology, access to finance,

market regulation and incentives, and local capacity development. This could be key focus areas for

CEF in the next phase.

According to CEF/CDTF the FSCCP has provided an eye opener on the potential for scaling up lessons

and contribute to local level green growth. CEF/CDTF has also through FSCCP developed skills and

capacity in particular on renewable energy and access to energy as well as using renewable energy

locally for enterprise development. CEF/CDTF has in particular made progress through relevant

partnerships with other private and public institutions like KAM, CIC and MESPT. The networking has

added value to the CEF projects.

There is a technology gap and need for further development and adjustment of appropriate renewable

energy technology addressing various localized needs. There are also constraints in the financing

where renewable energy investments are not acceptable by financial institutions. In addition the

current feed-in tariffs requirements are not favorable for developing an attractive market for

independent power producers.

Lessons were learned and fundamental change in application procedures were facilitated with the

testing of the on-line call for proposals. CEF is moving forward to embrace the system developed under

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FSCCP for future calls. The process of developing an M&E system in NRMP has also brought to light

CEF’s needs for managing project knowledge and present results.

5.7 CEF Case Studies

Renewable Energy for Forest Conservation and Enhanced Livelihoods by Kenya National

Federation of Agriculture Producers (KENFAP based in Kiambu County)

The main goal of the project was to sustainably improve the livelihoods of the community while

conserving the environment. It had three components: Renewable energy, which aimed at promoting

adoption of biogas as a clean and sustainable energy source; Good Agricultural Practices and Climate

Smart Agriculture, which aimed at promoting sustainable and profitable agriculture that conserves

the natural resources under which the agricultural systems exist and which enhances resilience and

mitigation to climate change; and Reforestation, which aimed at providing a sustainable source of

wood and wood products, thus preventing future deforestation.

So far, the project has had the following outcomes;

• 18 youth have been trained on biogas installation and maintenance. This has provided a source of

employment for the youth.

• 200 biogas plants have been installed and operational only a few facing minor challenges.

• 200 farmers trained on bio-slurry management and use and 50 farmers already using the slurry

for farming.

• Over 450,000 tree seedlings planted both on farm and in the forest.

• 20 agricultural groups trained on various agricultural practices.

• 7 farmer groups facilitated to access clean and certified seeds.

Impact of the project so far include:

• Improvement of the general hygiene of the kitchens and reduction in risks associated with indoor

pollution. The beneficiaries have reported reduced incidences of eye irritation and respiratory

complication.

• Use of wood fuel has reduced by over 60%. This has not only saved the costs associated with

wood fuel, but also reduced forest degradation, eased the workload on the women and the

children and also reduced the GHGs emitted from burning of the wood fuel.

• There has been a notable increase in agricultural productivity associated with use of bio-slurry. In

some cases, the change has included fast maturity of the vegetables and increased volumes per

unit of land. The cost of procuring fertilizer has also reduced. All this has translated into higher

incomes for the farmers.

• Farmers have withdrawn their animals from the forest and adopted zero grazing so as to sustain

the biogas. This has not only reduced forest destruction by the animals, but also led to increase in

the milk yield as the animals are no longer wasting energy walking long distances to and from the

forest.

• The farmer groups are more cohesive now and are adopting various technologies in their farming.

Their income is improving as the new technologies adopted are bringing higher returns compared

to what they were used to. Adoption of high value crops and clean seeds has improved

productivity and marketability of their products. Some groups are already organizing themselves

for group marketing, while others have adopted table banking and other saving schemes.

• The soils in the farms are improving. Excess use of fertilizers and chemicals is on the decline.

• Over 400 acres of land is under forest now. Farmers already have woodlots which will satisfy

their future demand for wood products. Over 300 acres of degraded forest land has been

rehabilitated.

• Communities are able to benefit from the forest as they are allowed to farm the forest as they

plant and tender for the trees under the Plantation Establishment and Livelihood Improvement

Scheme (PELIS) programme. This has contributed immensely to food security and increased

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income at household level.

• Groups are now able to produce and sell tree seedlings as an income generating activity. So far,

over 200,000 tree seedlings have been sold from the group nurseries, which is equivalent to over

2.5 million shillings in earning for the groups.

Challenges

Despite these impacts, the use of bio-slurry has still not been adopted fully by the community. In

essence, the benefits of the biogas are proportionately stated as 20% from use of the gas and 80%

from the use of the slurry. The concept of proper slurry management is still lacking, meaning 80% of

the biogas benefits is being lost. In addressing this challenge, the project seeks to promote

economically viable zero grazing systems that rely on full cycle utilization of resources from the

animal production, to biogas use for both energy and farming practices. The project will train and

support the farmers to come up with a breed improvement programme, support local production of

animal feeds and promote proper use of bio-slurry, as a by-product of animal production systems, for

both fodder and food crop production.

With farmers now turning to zero grazing in order to install the biogas, the productivity of the

animals is far below expected capacity. There is a low quality animal breeds in the area and without a

proper breeding system that can improve the quality of the animals. It even becomes difficult to break

even on the cost of production, considering the high cost of production associated with zero grazing

and the low production returned by the animals. It therefore becomes counter-productive saving

wood fuel costs and using the savings to sustain the livestock, if it cannot economically sustain

themselves.

Case prepared by CEF PMU

Photos by CEF PMU

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Harnessing solar energy - Kisauni solar power installation

Kisauni Youth Polytechnic in Mombasa is a public institution that has benefited from CDTF renewable

energy interventions. Through CDTF, the Polytechnic is currently running a state-of-the-art solar PV

system. This off-grid system comprises of 10KW solar system with battery storage of up to 76.8KWh,

converted from DC to AC, thus enabling the Polytechnic to run their operations without changing their

equipment.

The shift to solar electricity has enabled the institution to cut down on electricity cost by 99%. For

future battery replacement, the management has established a savings kitty that will enable them

procure new batteries after three years when the batteries are due for replacement.

The polytechnic has also benefited with borehole drilling which draws water through solar powered

pump. In addition, since the water is salty; the project has installed water purification equipment that

is running on solar power. The water purification is done through reverse osmosis to serve the

polytechnic community and for market. The institution has also benefitted with tanks for roof water

harvesting and environmental conservation through working with environmental groups and schools

to conserve the environment.

Case prepared by CEF PMU

Kisauni Youth Polytechnic solar installation in progress earlier 2014

Photo by CEF PMU

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Public-private partnership for water supply - Ondiri Swamp and Associated Water Systems

Livelihood and Conservation Project

Communities were assisted to develop an institutional framework and negotiate with relevant

stakeholders for a private-public-community partnership for the two water schemes. These are the

Karinde Water Project (a water scheme with two surface in-take weirs within the Thogoto Forest,

gravity pipes to a 25m3 sump and pump house, rising mains to a 225m3 storage tank and a gravity

distribution system to cover the Karinde Village and its environs) and the Kabuthi Water Project (a

borehole at the County Council’s public cemetery, with a 100 m3 storage tank and a 50 m3 distribution

tank and a pipe system to supply the Kiawamagira village, with pipes to be extended to the Dagoretti

Market bio-latrine and water kiosk).

The private partner, the Kikuyu Water Company (KIWACO) has expressed an interest in engaging with

the Karinde and Kabuthi water schemes. Of particular interest is the surface water intake scheme in

Thogoto forest, which presents opportunities for bulk water production. Surface water intakes are

much cheaper to operate than boreholes and their sustainability can be enhanced by the conservation

and rehabilitation of the catchment forests.

Section 57(2) of the Water Act requires WASREB to issue licenses based on technical and commercial

capability for water extractions. The objective of this requirement is to ensure that water service

providers are able to meet routine operation and maintenance costs and ensure sustainability in the

long term. Community based projects have challenges meeting the requirements. To qualify for a

water extraction license, a substantive business plan with a 3 year cash flow projection, using

approved tariffs must be submitted. The application should include the amount of investment injected

into the operation to enable the water scheme sustain its operations during the initial phases. The

community would be required to pay a fee of KES 75,000 if the envisaged production is up to 2,500

m3 per day and would be required to meet the performance threshold laid out by the

regulator.

The option available to the community structure is to negotiate partnership with a private water

company, which can demonstrate ability to meet the requirement of the regulator, and provide the

technical and business skills to enable the efficient and sustainable delivery of water services to the

villages of Karinde and Kiawamagira. The PPP Act 2013, provides different models for contracting

with public sector agencies. Options include lease or concession arrangements or management

contracts for a minimum period of 7 years. In this case a lease agreement was negotiated between

Kenya Forest Service (KFS) and Kiambu County and the community corporate entity, which in turn

contract KIWACO to manage the assets on its behalf for an agreed term. Incentives are negotiated to

community members in exchange for managing the forest under the Payment for Ecosystem Services

(PES).

Case and photos by CEF/CDTF

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5.8 Summary of CEF/CDTF status and progress

Logical Framework Verifiable indicator and target Status of progress Comments on progress

Component 3: Community

projects by CEF/CDTF

Immediate Objective:

Community-driven initiatives

reduce threats and conflicts

related to natural resource use

and climate change risks.

2011 FSCCP: Additional 100 community

groups representing about 3,000

beneficiaries (10 additional projects each

with 10 groups having an average of 30

members).

2012 FSCCP: Additional 150 community

groups representing about 4,500

beneficiaries (at least 15 additional

projects each with 10 groups having an

average of 30 members).

24 projects supported by FSSCP in

addition to other 83 CEF projects.

At least an additional 25,000

persons are direct and indirect

beneficiares.

14 projects supported under FSCCP

2011. This was 4 more than

planned.

Additional 10 projects supported

on FSCC under phase II. This was 5

less than planned due to insufiicient

number of proposals being

completed for funding.

The 14 FSCCP 2011 are at final stage

of implementation. Phase II projects

are in their early stages of

implementation. The phase II

projects were launched between

June and August 2014.

Output 3.1:

Promote energy saving

technologies that enhance

sustainable utilization of natural

resources

2011 FSCCP: Minimum 5 additional

community projects on innovative

community approaches to develop

renewable energy and energy savings

(minimum 10 in total for all CEF).

2012 FSCCP: Minimum 8 additional

community projects on innovative

community approaches to develop

renewable energy and energy savings.

Around 13 projects promoting

energy saving and renewable

energy:

• Three community based Mini

Hydroelectricity generation

projects are under

construction.

• Three community institution

supported solar electrification.

• Three community projects

supported with biogas

production

• One community project

supported in production of

• Implementation of two

MiniHydros has commenced,

but facing implementation

challenges. Implementation of

the third MiniHydro has slowed

down due to low budgetary

allocation but being addressed.

• All the three solar installations

are complete and functional.

• Development of the biogas

units is at advanced stage of

development and will be

commissioned by the end of the

year.

• Collaboration forged between

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Logical Framework Verifiable indicator and target Status of progress Comments on progress

biomass gasifiers stoves

• Four projects implementing

energy saving technologies

including institutional cook

stoves, household energy

saving stoves,

the project and KIRDI (a

research institution) for

training artisans and licensing

of gasifier stove production

Output 3.2:

Support community initiatives

that will enhance adaptation to

and reduction of the climate

change effects on local

livelihoods

2011 FSCCP: Minimum 5 additional

projects on innovative community

approaches to adaptation and reduction of

climate change risks (minimum 10 in total

for all CEF).

2012 FSCCP: Minimum 7 additional

community projects on innovative

community approaches to develop

adaptation to climate change and increase

resilience.

Around 11 projects enhancing

adaptation to climate change and

building the communities resilience

to the impact of climate change:

• 9 projects promote access to

sustainable portable water

through construction of sand

dams, earth dams and other

water access structures. Use of

solar energy to pump water

promoted in all 4 projects.

• 1 project developed under

FSCCP in Turkana with strong

commercial intentions that will

create revenue reserves as

resilience measures against the

impact of climate for the

community.

• 1 project developed under

FSCCP in Mandera with

potential to strengthen

community networks for

adaptation to climate change

Implementation of FSCPP phase I at

an advanced stage and FSCCP phase

II just commenced.

All 11 projects promote

rehabilitation of degraded

ecosystems through afforestation,

agroforestry, riverine rehabilitation.

PELIS programme embraced by 4

projects and early impact is food

security and broadened income at

household level.

Early impacts include availability of

water during dry spells & drought

Water for irrigation available thus

resilience to impact of climate

change enhanced

Focus on building resilience to

drought through enhanced food

security, access to water.

Partnership with private sector to

engage in commercial agriculture

To build resilience to climate

change through promotion of best

practice for rangeland management

and provision of sustainable water.

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Logical Framework Verifiable indicator and target Status of progress Comments on progress

Output 3.3:

Screening, monitoring and

communication of good practice

and scaling up

2011 FSCCP: Climate change adaptation

and mitigation options are screened for all

CEF projects and options for actions

identified.

All the CEF projects were screened

for climate change adaption and

mitigation and measures taken to

mainstream some during

implementation.

Initial but limited progress. No

expenditure yet. Monitoring and

communication of good practices is

ongoing and informing best

practices in adaptation and

mitigation.

Output 3.4:

Mainstreaming and innovation

of climate change adaptation

and mitigation technology

options in the CEF project

portfolio.

2012 FSCCP: Minimum 30 current and past

CEF projects identify value added

adaptation or mitigation options for

further innovation and investments.

One past (CEF1) and 20 current

(CEF2 and FSCCP) projects are

identified for upscalling. A concept

is developed to facilitate upscalling.

Initial progress. No expenditure yet.

Concept for upscalling projects

developed and presented to the

CDTF Board of Trustees (BoT) for

approval.

Output 3.5:

Awareness and promotion

activities to develop a future

project pipeline on adaptation

technologies and renewable

energy at local level

Climate change adaptation and mitigation

options are screened for all CEF projects

and options for actions identified.

Three partnerships established

between the beneficiaries and the

private sector.

At least seven networks established

between local NGOs and

beneficiaries.

A concept for engaging private

sector and NGOs developed and

under BoT review.

Initial progress. No expenditure yet.

CDTF has developed a concept for

engaging private sector and NGOs

which is under both Danida and BoT

review.

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6. Resilience to climate change in pastoral communities in the arid lands

of Northern Kenya

The Northern Rangelands Trust (NRT) is a member-based umbrella organization for Community

Conservancies (community-led conservation initiatives) established in 2004 and located in the arid

and semi-arid lands of Northern Kenya. NRT’s mission is to develop community conservancies that

transform lives, secure peace and conserve natural resources across the rangelands of northern Kenya.

These arid areas are in the front-line of climate change risks and impacts, with increasingly frequent

and severe droughts that are likely to bring hardship and conflict over resources to communities.

NRT has 27 member conservancies covering a population of over 200,000 people over an area of

about 31,400 km2 within 9 counties (Baringo, Garissa, Isiolo, Laikipia, Lamu, Marsabit, Meru, Tana

River, and Samburu). Additional conservancies in Northern Kenya have requested to join NRT as

members. The Northern Rangelands Company Ltd (NRCL) is the registered not-for-profit company

implementing the mandate of NRT, providing the services of facilitation, training, fund-raising and

mentoring for the member conservancies.

6.1 NRT intervention logic

The intervention logic was to support the vision of NRT to build resilient communities that are better

able to cope with an uncertain future of droughts, economic shocks and political change, by

strengthening governance and social development, diversifying economies, improving management of

water, rangelands and wildlife, and building peace and security. The aim is to address mainly the

enhanced resilience among pastoralist in Northern Kenya to cope with more severe and prolonged

drought events through rangeland management.

NRT had carried out pilot activities on rangeland management and the scope was to scale-up these

experiences with rangeland management into a larger scale and eventually covering all member

conservancies. The scaling up of the planned grazing, as envisioned in the NRT strategic plan (2012-

2017) in Goal 4 on Productive Rangelands, is the target of the Danida FSCCP support.

The objective of the Danida support to NRT is: “Resilience to climate change in pastoral communities

in the arid lands of Northern Kenya is enhanced”. The objective is in line with the broader target of the

Goal 4 on Productive Rangelands in the NRT Strategic Plan: “In the next 5 years, all NRT conservancies

will improve the condition of rangelands and other natural resources through development and

implementation of land use plans and practices that ensure the sustainable management of natural

resources”.

As an immediate result of the FSCCP support until end 2014 improved grazing should be established in

11 conservancies covering 400,000 ha.

6.2 NRT design approach and implementation modality

The FSCCP is designed as support to implement the Goal 4 of the Strategic Plan. After the main

principles of the support was agreed in the FSCCP 2012 programme document a brief component

document was prepared in October 2012 together with an Memorandum of Understanding (MoU)

between NRT and RDE.

The support was provided to NRT as core support but with the understanding that at least an amount

equal to the FSCCP grant would be used for the rangeland management including achieving the agreed

milestones and expected targets.

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NRT already had an established management structure with technical and administrative staff

including conservancy grazing coordinators. Additional grazing coordinators at conservancy level

were required. NRT was not required to provide a detailed project activity plan to Danida but was

instead committed to produce certain agreed results within the Strategic Plan, such as the planned

grazing in 11 conservancies, and progress reporting on agreed milestones and results.

6.3 NRT main results

Towards the expected end of the Danida FSCCP support by December 2014 the NRT Strategic Plan is

only about half-way and most impacts are expected to emerge later. The mid-term results are

intermediate outcomes. The main results were expected to be grazing plans and by-laws in 11

conservancies and the completion of land use plans (LUP). The achieved main results are:

Target December 2014 Status September 2014

Households reached with 3,000 HH 12,000 HH

Grazing plans developed 11 conservancies 14 conservancies

Area in planned grazing (the potential area

is 1.2 million ha)

400,000 ha 1.9 million ha

Grazing committees established 11 14

Awareness on rangeland management in … 11 conservancies 18 conservancies

No of cattle in controlled grazing 15,000 (30%) > 40,000 (90%)

Rehabilitation of degraded land (potential is

500,000 ha)

5,000 ha 2,719 ha

Land use plans 11 plans 2 pilot plans developed,

but 4 expected end of year

2014.

The NRT ensured that staffing was in placed and the M&E tools were developed.

6.4 NRT overall assessment of progress

The overall assessment of progress is very good. Most of the expected results were reached except for

land-use plans and rehabilitation. The delay of the land-use plans was partly due to the need to ensure

a good coordination and collaboration with the counties’ planning.

A key factor for the overall good progress was an increase in the demand for planned grazing. This

stemmed partly from the increase in evidence for established sites and also the promotion of the

concept by the Counties, i.e. in particular the counties of Samburu, Marsabit and Isiolo.

6.5 NRT funding status

The grant to NRT was DKK 7.5 million (KES 110 million). The actual expenditure to date (September

2014) is ~ KES 85 million (~ 75%) and the expected expenditure end of 2014 is ~KES 25.0 million (~

25%). NRT has requested RDE for a no-cost extension up to June 2015.

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6.6 NRT findings and main lessons learned

The main findings and lessons by NRT in the implementation of the Danida FSCCP are:

• The stabilization resulting from planned grazing. The planned grazing in the rangeland

management results in increased resilience to changes including climate variability. It also

contributes to reducing and solving conflicts over access to resources.

• The importance of the institutional functions of the conservancies. The conservancies

represent local voices and ensure good linking to other institutions including other

conservancies and county government.

• A proven concept of holistic rangeland management. The effects of planned grazing have been

implemented and shown immediate results even in rehabilitation of degraded land. There are

also spin-offs from increasing grazing opportunities closer to home and bunched herding, e.g.

school attendance, involvement of women and emerging local income opportunities, e.g. from

collection of grass seeds.

• Engagement of youth and outsiders. A key lesson that the stakeholders do not only include

village elders but also the youth (e.g. the herders) and outsiders (e.g. potential visiting

livestock herders searching from grazing options).

• Progress and growth in interest in planned grazing is beyond expectation. The buy-in has been

far better than expected due to good demonstration cases and spreading of word, support by

county governments and NRT awareness to conservancies. The results are also achieved due to

good ownership.

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6.7 NRT Case

Rangeland Management in West Gate Community Conservancy

West Gate is a Community Conservancy owned and operated by local Samburu pastoralists along

the banks of the Ewaso Nyiro river of northern Kenya. It was formed to address the increasing

challenges of effective natural resource management in the face of declining effectiveness of local

institutions, fragmentation and land use change, and climate change. Declining rangeland

productivity and risks from droughts are among the key challenges facing West Gate and other

pastoral conservancies in the ASAL region. The general expansion of invasive woody vegetation,

the loss of grass cover, declines in palatable grasses, increased soil erosion, and the expansion of

invasive species have all combined to reduce the productivity of local rangelands with negative

impacts on livestock production, disruptive drought induced movement, declining livelihoods,

insecurity and conflict, and increasing vulnerability to climate change.

Since 2006 West Gate has purposefully built a broad community driven approach to improving

rangeland health based on effective local institutions, respect for local knowledge, the imperative

of local ownership, and the sustainability of local implementation. The West Gate Community

Conservancy sent four community leaders to Zimbabwe for intensive exposure to Holistic

Management with support from Grevy’s Zebra Trust. That inspired community to take ownership

over the management of their natural resources.

The new approach to rangeland management recognizes rangeland health as the foundation of

local livelihoods, peace, conservation, and resilience to climate change. Following the collapse of

livestock herds in 2009 from widespread drought, West Gate has gradually begun the task of not

only rebuilding their herds, but rebuilding the health of the range land on which they depend.

In 2010 West Gate began scaling up their rangeland management activities to include reseeding

and grass seed harvesting, clearing of invasive species, and bunched grazing. From an initial focus

in the core and buffer areas, these activities gradually expanded to include the development of wet

and dry season grazing plans across the entire conservancy as well as the development in 2011 of

a grass bank for concentrating the clearing and reseeding efforts.

Reseeding and the subsequent harvesting and sale of grass seeds has supported an expansion of

the area under increased grass cover within the conservancy, and it has also generated

employment and income through the sale of seeds to neighboring communities. From an initial 13

bags of 90 kg/bag of seed harvested in 2010, production quickly increased to 72 bags in 2012 and

327 bags in 2013.

Bunched grazing to promote rangeland rehabilitation through animal impacts has shown similar

growth since its inception in 2010 with a total of 220 cattle. In 2012 the community contributed

558 cattle to the bunched grazing, and in 2013 the herd consisted of 881 animals. Importantly, in

2012 West Gate experimented with the first herd of bunched small stock in the region with a total

of 6,186 sheep and goat.

While the rangeland management activities in West Gate have already begun to make significant

strides in restoring rangeland productivity locally, more importantly, it has catalyzed support for

effective rangeland management across the community and into neighboring communities. West

Gate has been instrumental as a learning site, increasing awareness and renewing pride in local

resources, and providing the foundation for a larger coordinated multi-conservancy rangeland

management programme across NRT.

In addition to direct benefits to rangeland health, the programme also supports social cohesion,

and provides broad social benefits through reduced conflict associated with improved forage

resources, coordinated management and dialogue. The programme promotes inclusivity through

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active engagement with under-represented groups such as women and youth, promoting

employment, alternative incomes through increased livestock sales associated with the NRT

livestock to markets programme.

The successes at West Gate emphasize the importance of rangeland health as the cornerstone of

livelihoods, peace, and conservation and an essential component of climate resilience not just here

but across the pastoral areas of northern Kenya.

Implementing grassland management at West Gate, Samburu County

Case and photos by NRT

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6.8 Summary of NRT status and progress

Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Immediate Objective:

Resilience to climate change

impacts in pastoral communities in

the arid lands of Northern Kenya

enhanced. 15

• At least 3,000 pastoralist households have been

reached and are benefitting from improved

rangeland management by December 2014.

• Improved resilience of cattle to climatechange

events.

• Reduced level of incidences of conflict over

access to grazing compared to records of past

years.

• Overall 12,000 households

across 12 conservancies have

benefitted from improved

access to forage, increased

peace, employment, access to

bursaries and health care,

and direct income.

• Drought induced livestock

movement out of the NRT

area was lower than expected

this year despite the failure of

the long rains

• Livestock mortality in 2014

was lower than expected

despite the failure of the long

rains.

• Initial reports of conflict in

2014 are lower than in

previous years, With only

one major conflict reported in

Kom in September 2014.

• Increasingly,

neighbouring

conservancies, and

communities outside of

the conservancy

netword are benefiting

through increased

access to forage,

reduced conflict and

greater mobility.

• While 5 people were

killed in the Kom

conflict (in 2014), it

might have been much

worse without the

intensive efforts by the

NRT and conservancy

grazing coordinators to

reduce tension and

promote peacefull

resolution of forage

based conflicts.

15 NRT Strategic Plan Goal 4 is: “In the next 5 years, all NRT conservancies will improve the condition of rangelands and other natural resources through

development and implementation of land use plans and practices that ensure the sustainable management of natural resource”

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Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Output 1:

Capacity for rangeland

management developed • NRT grazing coordinator and grazing assistant

in place by January 2013.

• 11 grazing zone coordinators nominated by

December 2013. (+19 by December 2017)

• Awareness on RM completed in 11

conservancies by December 2013. (+19 by

December 2014)

• 11 Conservancy grazing committee, with sub-

zones are established by December 2014. (8

established by December 2013; +19 by

December 2017)

• NRT grazing coordinator

recruited and assistant

grazing coordinator was

recruited in 2013.

• 9 conservancies grazing

coordinators recruited in

2013. An additional 7

conservancy grazing

coordinators to be

recruited by the end of

2014.

• 12 Grazing coordinators

trained on holistic

management, vegetation

monitoring, low stress

livestock handling,

holistic decision making

and holistic planned

grazing.

• The core 11

conservancies of the

current rangelands

programme underwent

awareness training as

well as an additional 4

conservancies for a total

of 18.

• Grazing committees and

conservancy

management trained to

provide support to the

grazing coordinators

• Additional NRT

assistant grazing

coordinator to be

recruited in October

2014.

• Conservancy grazing

coordinators have been

recruited for the

following

conservancies: 2013 -

Mpus Kutuk, Lekurruki,

Il Ngwesi, Naibunga,

Meibae, West Gate,

Kalama, Sera, Melako,

2014 -Biliko Bulesa,

Ishaqbin and Namunyak

(x3), Nakuprat-Gotu,

Nasuulu)

• NRT is also reaching out

to the Counties and

boards of County

conservancies to

promote awareness of

rangeland management

issues

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Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Output 1 (cont):

• The grazing coordination units in NRT and the

11 conservancies are fully equipped and

operational. (+19 by December 2017)

• 14 grazing committees

established and trained with

Danida support.

• NRT grazing coordinators

provided with field

equipments (tents, bedrolls,

cameras) laptops, vehicle.

• 12 conservancies grazing

coordinators provided with

tents, cameras and a motor

cycle.

Including, West Gate,

Kalama, Nasuulu, Meibae,

Mpus Kutuk, Sera, Melako,

Biliko Bulesa, Nakuprat-

Gotu, Ishaqbin, Il Ngwesi,

Lekurruki, Naibunga and

Namunyak.

Output 2

Conservancy grazing plans

developed • Land use plans developed in 11 conservancies

by December 2014. (In 8 by December 2013

and in +19 by December 2017).

• Grazing plans developed in 11 conservancies by

December 2014 covering 400,000 ha. (In 8 by

December 2013 and in +19 by December 2017).

• Grazing by-laws established and approved for

11 conservancies by December 2014.

• Review of by-laws and preparation of regional

and harmonized grazing by-laws (Initiated by

December 2014 and completed by December

2017).

• Land use plans for 4

conservancies to be

completed by December

2014.

• Grazing plans have been

developed in 14

conservancies covering an

area of 1,913,722 ha.

• Grazing by-laws developed,

reviewed and approved by 19

conservancies.

• The conservancy grazing by-

laws have been harmonized

across the region, and they

are currently being reviewed

by a legal person prior to

presentation for debate in the

County Assemblies to

promote regional

harmonization.

• NRT has expanded the

conservancy land use

plans to include all

aspects of land use

planning within the

conservancy. These

plans are designed to

provide the central link

with other development

partners and the spatial

planning units of County

governments.

• Initial conservancy

grazing plans focused

on the core and buffer

areas. Now

conservancies are

planning grazing across

the entire conservancy.

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Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Output 3:

Grazing plans for 11 conservancies

implemented • At 400,000 ha is under planned and a smaller

area under active grazing management with

improved vegetation cover and dry season

‘grass banks’ by December 2014.

• At least 15,000 cattle heads (30 %) are included

in the conservancy planned grazing herds by

December 2014.

• Unplanned settlements reduced.

• Reduction of degraded lands by at least 5,000

ha (reduction of bare ground exposures,

reduction of erosion gullies, and removal of

invasive species) by December 2014.

• 1,913,722 ha of land under

planned grazing in 14

conservancies.

• 54,941 ha under active

grazing management. This

includes the conservancies’

core, buffer and rehabilitated

areas.

• > 40,000 cattle (90%)

involved in planned grazing.

• There is increased awareness

of the challenges of

unplanned settlements across

the conservancies.

• Detailed mapping of

settlements and key natural

resources is ongoing and

should be complete by end

2014

• Total area rehabilitated:

Kalama = 1,500 ha, West Gate

= 850 ha., Meibae=369 ha.

Progress was more in terms

of area and heads of

livestock than expected in

the design. This was due to a

much higher rate of uptake

of the concepts by the

conservancies partly

because the demand grew

with the evidence from

existig sites.

As a result the area of

rehabilitation is lagging

behind mainly because of

limited resources to

supervise this work with

more emphasis on the

grazing plans. The

rehabilitation of degraded

land is a more demanding

effort both in terms of

planning, work force and

costs.

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Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Output 4:

Monitoring and evaluation

developed • Tools developed for M&E:

- COMMS: Wildlife, vegetation, socio-

economics (Developed by December 2013;

baselines developed end 2014)

- Remote sensing of land cover: ICRAF

(baseline) and plan for follow up with 3-4

permant sample plots (By December 2013)

- Climate: Established past records of

meteorological data (By December 2014)

and established protocol for weather data

collection records and potential Early

Warning Systems.

- Carbon: carbon reponse to grazing

managing (200 plots) (Separate support by

TNC and Syracuse Univ.)

• Wildlife CoMMS is currently

active in 19 conservancies

and continues to expand

(rangers from the 3 new

Marsabit conservancies were

trained in September 2014).

• Social CoMMS – In

collaboration with TNC on

track for completion and

deployment by the end of

2014. Initially 4

conservancies will be

targeted – Nakuprat-Gotu, Il

Ngwesi, Kalama, and Melako.

• Vegetation CoMMS –

Currently active in 8

conservancies, database

almost complete with all

historical data entered.

• ICRAF study of carbon

baseline, degradation, and

land cover completed in

March 2014 with additional

analyses and expanded

coverage currently

underway.

• The Vegetation CoMMS

system will be expanded

by the grazing

coordinators in each

conservancy.

• NRT is currently

developing an

integrated reporting

structure and impact

tracking system to

promote near real-time

analysis and

visualization, for

increased access to

information.

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Logical Framework Verifiable indicators and targets Status of progress Comments on Progress

Output 4 (cont)

• Data recorded in NRT M&E system (i.e. COMMS

and others) and with regular analysis of

changes and trends.

• Historical climate records

have not been finalized,

working with parterns such

as GiZ to collect current

weather data, exploring

remote sensing tools, and

parternships with UNEP and

others (including Soils for the

Future) to develop local early

warning systems.

• Northern Kenya Carbon

Project well underway –

carbon assessments

complete, biodiversity.

• Conservation leverage tables

are actively used to track

impact for annual review,

donor feedback, board

reports and the State of

Conservancies Report (under

development).

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0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

FSCCP 1. REACT/AECF 2. CEEC/KAM 3. CEF/CDTF 4. NRT

7. Monitoring and assessment of FSCCP progress

In order to assess progress against expected results end of 2014 an index score has been developed.

The score is from 5 (fully implemented) to 1 (limited implementation) and zero in the situation that no

activity was carried out.

The score was assessed for each of the outputs that were with measurable activities and weighted with

the budget allocations for these. The quality of the assessment of the results was depending on the

quality and mere existence of an M&E system. Each of the scores were discussed with the components

an agreed in principle.

Components Score

(weighted)

Comments M&E system

1. REACT/

AECF

3,1 Good progress with number of

projects. Mainly mitigation projects.

Overall limited emission reduction to

date. A challenge identifying direct

adaptation projects. No progress on

DCED M&E.

Progress on activity and output

monitoring with a SIDA seconded

expert. But no progress on

developing DCED standard M&E

system. Uncertainty on division of

work on M&E between AECF and

AGRA, e.g. on promotion.

2. CEEC/KAM 3,7 Main activity on energy audits and

training of auditors. Limited

progress on M&E system,

comprehensive audits,

communication of good practices

and piloting.

No M&E system to capture outcomes,

impacts and internal learning.

Ongoing impact assessment of the

audits carried out 2009-2012.

3. CEF/CDTF 4,1 Progress on number of projects.

Delay in signing of 2nd round

contracts. Limited progress on

implementation of mainstreaming

activities.

Support to development of M&E

system for CEF/CDTF in the NRMP.

In the process of being implemented

and not yet functional.

4. NRT 4,5 Progress on capacity development

and development of grazing plans.

Implementation of grazing plans in

progress. Some development on

land-use plans.

Systems on community level M&E

developed and in progress of

implementation. Further

development on methods of data

collection and analysis.

FSCCP 3,8 Overall satisfactory progress.

The component partners have all developed good

progress within tight time schedules. The reason

for good progress is that they were selected as

FSCCP component partner based on the ability to

deliver almost immediately based on what was

already in place and operational, linkage with

other Danida programmes, and opportunity to use

existing or quickly enter into new implementation

MoUs.

Figure 2: Index for FSCCP progress

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The components have been assessed against the OECD evaluation criteria.

REACT / AECF CEEC / KAM CEF / CDTF NRT

Relevance Relevant for

addressing supply

side in climate

change mitigation.

Limited linkage to

national climate

change strategies

and policies.

Relevant to national

regulation on energy

audits. Energy

efficiency in the

manufacturing

sector relevant for

mitigation.

Addressing

adaptation and

mitigation at

community level.

Relevant for national

climate change

response strategy.

Targeting adaption

in a climate change

vulnerable context

(the ASAL).

Relevance also to

support devolution

at county level.

Efficiency Relative high

transaction costs

(20%) for project

management only.

Limited emission

reduction so far and

uncertainty about

future reductions.

Not cost-efficient if

the aim is emission

reductions only.

Cost per energy

audit is same as the

audits subsidized by

MoE. About 2/3 of

the grant is used for

subsidies.

The support may not

be efficient if the

subsidy rate is too

high as it may distort

demand for non-

subsidized audits.

Developing of on-

line call added to an

efficient procedure.

Improved M&E may

reduce costs of site

visits. There is not a

good overview of the

CEF/CDTF

transaction costs.

The opportunity in

CEF with FSCCP also

to collaborate with

private sector adds

to efficiency.

Targeted operations

with locally based

coordinators.

Did have some

issues with 2013

audit and finance

management, but

this is now resolved.

Potential carbon

sequestration in the

rangelands.

Effectiveness Results are in

progress.

No progress on M&E

support.

Core function with

energy audits and

training in progress.

Other additional

activities like

comprehensive

audits delayed.

Main project support

on track but delayed.

M&E system needs

to be operational to

capture results.

Good progress with

establishing main

functions with

grazing plans and

grazing committees.

Impacts Potential longer

term impact with the

pay-as-you-go model

for financing of

energy supply.

Energy savings from

investments

recommended by

the audits.

CEEC/KAM is not at

present able to

assess the impact on

avoided emissions.

Impacts mostly on

communities

livelihoods including

access to energy and

reduced

vulnerability to

climate change risks.

None of these are

monitored. Sharing

of good practices

Already some

evidence in conflict

reduction. The real

test of impacts will

be for the next

extended drought

(that could be in

2014).

Sustainability Subject to ability for

some of the projects

to become

commercial. Already

evidence that REACT

support increases

access to additional

commercial finance.

Only commercially

viable investments

are made by the

companies.

Energy audits should

in the future be

potentially self-

financed.

CEF/CDTF is only

sustainable with

donor funding. The

sustainability of

each project is

uncertain. The

linkage to private

sector may ensure

financial

sustainability.

Partly included as

the communities are

able to be able to

respond to droughts,

e.g. with assets and

grass banks. Income

for cattle buy ups.

Potential rangeland

carbon

sequestration and

trade.

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8. FSCCP financial status

The disbursement from RDE is DKK 66.8 million out of DKK 100.0 million. Remaining planned budget

disbursement for 2014 is DKK 10.9 million. In addition DKK 16.1 million is allocated to ongoing

projects. Available budget for 2015 is around DKK 10.0 million including the DKK 5.0 million allocated

for REACT for M&E.

It was the expectation when the FSCCP 2011 and 2012 by GRV were launched that the disbursement

and preferably also expenditure would be within the same year. This was already in the design

deemed as not feasible. The period for disbursement was in the design pushed to mid-2014 and for

final expenditures for implementation until end 2014. Even this has been too optimistic since about

20% is estimated to be remaining, i.e. additional about six months were required for implementation.

This is similar or even better than most other development partners in Kenya.

Components Budget Disbursed Expenditure

/committed

Balance Comments

1.

REACT/AECF

20.0 15.0 15.0 5.0 Disbursed grant used and allocated

for projects and management fee.

Grant for M&E (DKK 5.0 million)

allocated in 2012 is outstanding. No

extension expected.

2. CEEC/KAM 30.0 22.7 22.5 7.5 Estimated expenditure by end 2014.

A six months no-cost extension has

been requested.

3. CEF/CDTF 40.0 23.1 36.9 3.1 No-cost extension approved until

mid-2016 for NRMP. FSCCP could be

until mid-2015. Contract for 10

projects signed mid-2014 and

committed grant is DKK 16.1 million.

4. NRT 7.5 5.8 6.1 1.4 Estimated expenditure and balance.

An extension until June 2015 (6

months) requires an additional

budget of about 1.5 million DKK.

RDE 2.5 0.0 0.5 2.0 Estimated expenditure.

FSCCP 100.0 ~81.0 ~19.0

CEEC/KAM and CEF/CDTF are potential partners in the

forthcoming Danida country programme for Kenya and a co-cost

extension is granted to avoid interruptions in the implementation.

NRT is a likely partner in an additional grant from the Danida

climate envelope for Kenya in 2015. A no-cost extension shall

ensure an uninterrupted support from Danida. CEEC/KAM could

also be funded under the climate envelope instead of the country

programme.

It is not likely there will be additional support to REACT/AECF. The

allocated grant of DKK 5.0 million for M&E made in 2012 but not yet

requested could be reallocated for extensions of any of the other

components if funding is short.

Figure 3: FSCCP Budget

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9. Main Findings and Lessons Learned

This section includes the main findings from the interviews with the FSCCP partners and RDE, and

assessment of the FSCCP progress and status.

9.1 FSCCP Main findings

1. The overall effect on mitigation of and adaptation to climate change as direct impacts of FSCCP

is limited in the short term. There are potential longer term larger impacts, but it remains an

assumption unless there is continuous follow up. The reason is that it has been a relative short-

term intervention addressing a long term challenge.

2. Expected outputs were mostly delivered as expected. The emphasis was on core activities

while additional added value activities were delayed or omitted (e.g. DCE M&E for REACT,

comprehensive audits for CEEC, implementation of mainstreaming for CEF, and land-use plans

for NRT).

3. There was more progress in developing mitigation projects mainly on renewable energy and

energy savings. These included measures of indirect adaptation. But the inclusion of direct

adaptation activities was more difficult partly because it was not possible to communicate and

determine what adaptation specific projects are.

4. The reduction in GHG missions as a result of FSCCP is limited so far. While funding is for

climate change there is no policy objective that the FSCCP had reduction emission as the main

target. The benefits of reducing emission are globally shared and not kept in Kenya only.

Although additional funding from fast start is to support developing countries this also

includes enhancing resilience to climate change risks where the gains are kept in Kenya.

5. There is overall a weak M&E capacity to address outcomes and impacts. The M&E of activities

and outputs is partly satisfactory with room for improvements. There is a good level of

tracking of activities but little linkage to the derived effects. The improved M&E is not only for

the sake of reporting to the donor, but also to develop and track internal knowledge to extract

best practices, bench-marks and progress.

6. Although it was originally anticipated by Danida that the FSCCP would be implemented in a

rather short time horizon it was already decided in the design phase that at least 1 or 2

additional years for implementation was required. Progress in implementation has been good

but there is still the requirement for no-cost extensions.

7. The design succeeded in achieving activities and outputs over a short period because support

was provided to established entities that were operational and able to quickly enter into an

agreement or make use of an existing.

8. The close linkage to the country programme has limited the administrative burden of the

programme. The additional work load due to the FSCCP for the RDE has been minimal and

integrated with other processes, e.g. the annual programme review.

9. The FSCCP has in several ways made initial progress for the development of the Green Growth

and Employment intervention in the forthcoming Danida country programme for Kenya.

Increased attention to Green Growth topics (in particular to renewable energy and other

energy efficiency and energy access issues) have emerged as part of FSCCP in particular with

CEF/CDTF. CEF/CDTF is now better positioned to join the forthcoming Danida country

programme for Kenya than it would have been 2-3 years ago.

In the table next page some of the key findings are summarized in a retrospective SWOT analysis.

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FSCCP Lessons Learned – a retrospective SWOT

Strenghts Weaknesses

− Building on existing programmes reduced transaction costs

− Danida’s flexible and programmatic support with focus on results

delivered and minimized transaction costs

− Emphasis on innovation (e.g. REACT) and willingness to support

of testing new concepts (e.g. holistic rangeland management).

− A short implementation period with limited scope for achieving

outcomes and change relevant to address and long term challenge.

− A separate grant that is parallel to the development programmes

is sub-optimal and mainly only gain is the ability to account for

the additional climate change finance.

− Addressing direct climate change adaptation is a challenge and

difficult to communicate as being separate from development. A

more efficient approach would be more emphasis on

mainstreaming of climate change in all development programmes.

− Weak monitoring and little scope for assessing reduced emissions

Opportunities (some lost) Threats

− Relevant results that contribute to the green growth and

employment agenda.

− Testing new implementation modalities, e.g. electronic call in

CEF/CDTF and public-private partnerships

− Emerging demand for renewable energy services and improved

knowledge of implementation constraints.

− Scope for scaling up of tested approaches, e.g. business models in

REACT, investment in follow up to energy audits in CEEC,

replication of experiences of CEF projects, and expansion of

planned grazing in NRT.

− Relevant innovation and learning is not documented and

disseminated, e.g. due to lack of longer term funding.

− GoK rules and regulations do not provide the relevant incentives

for innovative approaches to addressing climate change.

− A short implementation period reduces capacity for additional

value-adding activities that can add value to main activities

(grants to projects, energy audits, grazing plans).

− The fast-start climate change finance did not include a specific target on reducing CO2 emissions or just on mitigation. More

recently that has changed and could be used to assess the FSCCP

against targets not used during the design.

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9.2 FSCCP Lessons Learned

In short lessons learned are forward looking and about repeating good lessons and cease with the bad

lessons. In practice it is not as simple. Lessons learned for many are an assessment of what went well

or simply was unexpected. Some of the lessons as reported by the partners are included in the

previous section for each of the components and partly above under mains findings. In this section the

main lessons are included based on the lessons learned framework in Annex 2. This framework

combines the ToC and log-frame with the M&E system to explain how different lessons learned

contribute to a pool of good development practice. The lessons learned are structured at three levels:

- From inputs/activities to outputs

- From outputs to outcomes

- From outcomes to impacts / sustainability

An attempt to use these levels has been made, however, the separation should not be viewed as very

rigid.

From inputs/activities to outputs

- When immediate results are required and additional resources for management are few the

best option is to align additional climate funding with ongoing development programmes. The

optimal solution would probably be to mainstream climate change further in development

programmes although the risk here is not to be able to account for how much was used for

climate change.

- Providing support to private sector and civil society organizations is also an effective approach

that contributes to the development of policies and strategies on climate change and related

issues such as energy and water. Through gaining more experiences with implementation and

participating as stakeholders these experiences are also brought into developing policies and

regulation and adding values to those.

From outputs to outcomes

- It is feasible to develop specific climate change mitigation projects which will also have

development (indirect adaptation) benefits, e.g. with renewable energy and energy access. It is

a larger challenge to develop direct adaption projects. It may be more efficient to mainstream

adaptation in development programs or to ensure a large development focus in adaptation

projects.

- In general there is a relative weak M&E system to capture outcomes and potential impacts.

M&E is mainly on output and activity level if operational and there by misses the opportunity

to better capture internal knowledge and lessons to support good practices. It is Danida that in

many cases has attempted to push the development of M&E but with limited progress. Weak

M&E does not imply there are no outcomes but there are certainly missed opportunities

learning from these.

From outcomes to impacts

- Addressing climate change is a long term challenge requiring a long term endeavor. Though

the intention of the fast start finance was to send a signal of commitment the rush to achieve

short term results was futile. The FSCCP has initiated steps that may in the longer run lead to

impacts for both climate change mitigation and adaptation.

- Although developing countries are at risks and need investments it is not always immediately

obvious what the best investments are. One approach is to initially support and invest in

projects that will be relevant even in the current context without climate change risks (no

regrets) and then adjust as more knowledge is gained about the direction of and vulnerability

to climate change risks.

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- In developing countries lack of development also results in greater vulnerability of climate

change and therefore investment in good development practices is also good adaptation.

Investing in development is therefore also an investment in reducing the adaptation deficit in

poorer regional of developing countries.

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Annex 1: Financial Status

*) Progress is here the score (between 1 and 5) introduced in chapter 7 above.

Financial Balance (DKK) FSCCP 2011 FSCCP 2012 SUM FSCCP

grant

Disbursed

from RDE

Expenditure Committed

expenditure

Balance

(End 2014)

Progress *) Comments

FSCCP 50,0 50,0 100,0 66,8 63,0 17,8 19,2 3,8

1. REACT/AECF 20,0 20,0 15,0 15,0 0,0 5,0 3,1 Change in REACT log frame was not revised for FSCCP

1. Fund for competitions 12,5 12,5 12,5 12,5 0,0 4 Limited progress with adaptation projects

2. Strenthening M&E (in 2012) 5,0 5,0 0,0 0,0 5,0 1 Not initiated. Some progress with SIDA secondment

Management fee (20%) 2,5 2,5 2,5 2,5 0,0

2. CEEC/KAM 15,0 15,0 30,0 22,7 22,5 7,5 3,7 Good progress with energgy audits. Limited additional

activities

1. Matching grants audits 7,0 5,0 12,0 14,5 -2,5 5 More than 200 audits supported

2. Promotion campaigns 1,0 1,0 2,0 1,0 1,0 5 National campaigns. Not regionally targeted.

3. Piloting cleaner technology resource

audits of industries

3,5 2,0 5,5 0 5,5 2 Exchange visits. Limited budget for pilot not KAM

function.

4. Support to implement

recommendations from energy audits

0,0 0,0 0,0 0 0,0 0 No progres (no budget)

5. Comprehensive resource audits 2,5 2,5 0 2,5 1 Limited progress. Consultant identified.

6. Training of certified auditors 1,0 2,0 3,0 2,5 0,5 5 Expected number of auditors trained

7. M&E and impacts assessment 2,0 2,0 2,0 2 Impact study ongoing. No M&E activities.

Afd revolving fund 1,0 1,0 1,0 0,0 1 Used for feasibility study. One every six months.

KAM management, audits 1,5 0,5 2,0 3,5 -1,5

3. CEF/CDTF 15 25 40,0 23,1 20,9 16,1 3,1 4,1

1. Grants for projects 12,5 16,4 28,9 18,2 16,1 -5,3 5

- additional staff 1,0 1,0 2,1 -1,1

- developing online call 1,0 1,0 0 1,0 Completed (paid by RDE, from NRMP?)

- Field verification, full proposal,

launch, BoT due diligence

0,6 -0,6

2. Mainstreaming and innovation 2,5 5,1 7,6 0 7,6 1

3. Support to NGO and Private

Enterprise

1,5 1,5 0 1,5 2 Informal networking, but no formalised direct support

4. Northern Rangeland Trust 7,5 7,5 5,8 4,4 1,7 1,4 4,5

1. Rangeland management capacity

development and awareness

0,5 0,5 4 Establishing grazing committees. Nominating grazig

coordinators.

2. Development of conservancy grazing

plans for 11 conservancies

5,0 5,0 5 More than 11 grazing plans developed.

3. Implementation of grazing plans for

11 conservancies

1,5 1,5 3 Implementation in progress. Land use plans not initiated.

NRT Management 0,5 0,5

Reviews, etc. (RDE) 2,5 2,5 0,25 0,25 2,3

1 KES / 1 DKK 15,3

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Annex 2: Links and flows between logical framework, monitoring and evaluation and lessons learned

Source: Outline developed by Michael Linddal (2008)

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Annex 3: Kenya Climate Change Policy and Regulation Overview

Kenya has several laws and regulations that shed light on climate change related issues. However, it is

recent Climate Change Bill that is singularly directed to the legal and institutional framework for

climate change mitigation and adaption efforts. Below are some of the national instruments that

support climate change:

Draft Climate Change Policy (2014)

Climate change has been identified as a global challenge requiring international attention and action.

In Kenya various actions have been taken to address the issue of climate change. Kenya ratified the

United Nations Framework Convention on Climate Change in 1994 and the Kyoto Protocol in 2005.

The new Climate Change Policy 2014 has garnered significant political goodwill and has already

passed the first parliament reading.

The 2014 Climate Change Bill is currently waiting on the second parliament sitting is set to provide a

legal and institutional framework for climate change mitigation and adaption efforts. The Bill will

establish a climate change fund to facilitate climate change mitigation and adaptation efforts. The

passing of this bill will complement the NCCAP as the action provides for a clear institutional

framework to ensure effective implementation of the recommended actions.

The bill will also establish a Climate Change Council which shall be an independent and autonomous

body and shall draw members from key government sectors, civil society organizations, private sector

and representative from communities. The council shall be attached to the Office of the Deputy

President (Chair of the Council) and shall be the sole policy-making body of the government tasked to

coordinate, monitor and evaluate the programs and action plans of the government

National Climate Change Action Plan (NCCAP) 2013-2017 (2013).

Kenya launched its National Climate Change Action Plan in March 2013 this takes forward the

implementation of the NCCRS. The plan addresses the options for a low-carbon climate resilient

development pathway as Kenya adapts to climate impacts and mitigates growing emissions. The plan

also addresses the enabling aspects of finance, policy and legislation, knowledge management,

capacity development, technology requirements and monitoring and reporting.

The Action Plan is seen as the first step of action in achieving a low carbon climate resilient socio-

economic pathway for the country. and it is expected that the NCCAP will be revised and updated

every five years. The total estimated investment costs required to adapt to climate change impacts and

to implement the low carbon development options presented in this plan is in the range of one trillion

Kenyan Shillings or USD12.76 billion.

National Climate Change Response Strategy (NCCRS) (2010)

The NCCRS was developed after broad national consultation. It includes an analysis of and priorities

on climate change issues such as evidence and impacts, adaptation and mitigation interventions,

communication, education and awareness, vulnerability assessments, research, technology

development and transfer, policy, legislation and institutional framework. The NCCRS has become a

cornerstone for the coordination and prioritization of actions to address climate change.

The Constitution (2010)

Is the supreme legislative instrument in Kenya provides the right of every person to a clean and

healthy environment in Chapter 4, Article 42. The Article confirms the sustainable use of natural

resources .Further on, Article 69 under Chapter Five outlines obligations with regards to the respect of

the environment, which include elimination of processes and activities that are likely to endanger the

environment.

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In line with the constitution as indicated in chapter 11 is devolution of the government, an outline of

the county government’s powers, functions and responsibilities are discussed. The objectives of

devolution include the promotion of social and economic development, as well as the provision of

proximate, easily accessible services throughout Kenya. Currently County Governments are in the

process or have developed County Integrated Development Plans (CIDP) in which some have

streamlined climate change related issues in them. Counties such as Machakos, Makueni have taken a

step forward and have indicated ways climate change mitigation and adaptation mechanisms will be

put in place. Once the proposed Climate Change Council is formed they will also advise the county

governments on measures necessary for climate change mitigation and adapting to the effects of

unavoidable climate change

Kenya Vision 2030 (2007)

Vision 2030 sets out the long term goals for making Kenya a middle income country. The Vision 2030

refers to climate change as a national concern, especially in the arid and semi-arid lands and other

high-risk disaster zones, and proposes that climate change be integrated in national planning. In 2010

the Government developed the National Climate Change Response Strategy to propose a cross-

governmental strategy to respond to climate change challenges and in 2013 launched the National

Climate Change Action Plan. In order to achieve these goals the Government has established the

medium term goals to be achieved every five years (2013-2017). In regards to climate change the

documents emphasizes the challenges that will occur as a result of climate change and the various

mitigation and adaptation strategies to be set. These include

Environmental Management and Coordination Act (EMCA) (1999, amendment 2013)

The legal framework for environmental concerns in Kenya is the Environmental Management and

Coordination Act (EMCA) of 1999 amended in 2013 (not yet promulgated). The EMCA had limited

content relating explicitly to either adaptation to or mitigation of climate change, as such Section

57.2(b) of EMCA makes provision for fiscal incentives as “tax rebates to industries and other

establishments that invest in plants, equipment and machinery for pollution control, recycling of waste,

water harvesting and conservation, prevention of floods, and for using other energy sources as substitutes

for hydrocarbons”. The limitation can be explained by the fact that EMCA was enacted more than a

decade ago before the emergence of climate change issues. With the recent Amendments, the Principal

Act was amended by adding a new section 56(A) to read, “The Authority shall in consultation with

relevant lead agencies, issue guidelines and prescribe measures on climate change”, this addressing a

way to mitigate and adapt to Climate Change.

The National Environment Policy (NEP) (2013)

Kenya acknowledges the importance of the environment as it an integral part for its growth and

development. Until now the country has not had a comprehensive environmental policy of which most

environmental imperatives are captured in various development plans. The NEP is not yet

promulgated.

The NEP recognizes that many of the natural disasters in Kenya are climate related, e.g. floods,

drought, occasional landslides, increased disease episodes. It also notes that economic impact of these

disasters cut across the key sectors of the economy. The policy also highlights that Kenya aims have

climate-resilient, low carbon development and is a national priority as it will support Kenya to absorb

disturbances and build capacity to adapt to additional stress and change.

The NEP clearly indicates the Government role in combating Climate Change this includes, e.g. to

develop and implement a comprehensive National Climate Change Policy, strengthen and enhance

early warning and response systems for climate and disaster risk reduction, and put in place a climate

financing mechanism that will help the country take advantage of new and emerging climate change

funds and also include innovative ways to fund climate change actions domestically through

committing a percentage of the GDP.