ACTION FICHE FOR KENYA

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1 ACTION FICHE FOR KENYA 1. IDENTIFICATION Title/Number Enhance availability of livestock products following the food crisis. Total cost Total Cost: 4,000,000 Aid method / Method of implementation EC Contribution: 4,000,000 Joint co-financing with FAO. Project approach joint management DAC-code Sector Food Security 2. RATIONALE 2.1. Sector context In recent years, Kenya has made significant progress in terms of aggregate economic growth (annual growth rate of 6,4% in 2006 and estimate of 7,0% in 2007 and estimate 3,5-4,5% in 2008). Tourism and agricultural export have contributed significantly to this. This economic progress however should not eclipse the food insecure position of the country. Kenya is ranked as the 29 nd most vulnerable country in the world in terms of food insecurity. About 56% of the 33 million Kenyans live with less than 1$ per day. This situation is aggravated by the post election troubles (early 2008). Following this crisis, 350,000 people were internally displaced (IDPs), most of them being farmers. Moreover, the poorly distributed rainfall during the long rains of 2008 and the persistent drought in the northern parts of the country have impacted negatively on the agricultural production. The livestock sector in Kenya currently contributes to 12% of the GDP, 40% to the agricultural GDP, and 50 % of agricultural labour force 12. During the first half of 2008, the cost of animal feeds which account for almost 60% of the smallholder cost of producing milk has more than doubled due to high cost of raw materials between December 2007 and May 2008 reflecting a combination of the impact of post election violence and increasing prices of cereals which are the key ingredients in the feed formulation. This has meant that a large numbers of small-scale dairy producers have scaled down their supplementary feeding thus reducing milk production and their incomes. This has reduced the income of all the players across the dairy value chains that rely on milk surplus from small-scale dairy farmers. The loss of assets from livestock diseases can drive the already food insecure populations over the edge, thus increasing their needs in the form of emergency assistance. In order to 12 Source: Ministry of Livestock Development, 2008)

2 counteract this, livestock interventions will prevent the expansion of the food insecure population and ensure that the livestock producers are able to subsist on incomes derived from their livestock. This will affect directly the poorest part of the population in pastoral areas by reducing their purchasing power and therefore affect their access to the food. This is turn can lead to hunger and malnutrition, and possibly provoke social unrest. The Kenyan Government has taken a number of actions to contain the raising domestic food prices affecting the livestock sector. The Office of the President and the Ministry of Livestock is for the moment implementing a "Livestock Safety Net Programme" in the arid and semiarid land dealing with strategic feed reserves, water, marketing and disease control support and the "Harnessing of water resources for crop and livestock production". In this context, the proposed project aims at increasing the supply of livestock products by assisting small-scale dairy producers and pastoral populations Lessons learnt FAO has directed internal funds to carry out the project coded TCP/KEN/3201, titled "input supply to vulnerable populations under the Initiative on Soaring Food Prices (ISDP)" a project mainly focused on input supplies. For the livestock component, the inputs procured were Peste des Petits Ruminants (PPR or goat plague) vaccines to combat the ongoing threat of this disease on the small ruminant population, often the main livelihood of the poorest communities. Other inputs that were supplied are other veterinary drugs and drought tolerant grass seeds. Under the ECHO funded Regional Drought Decision (RDD), in which FAO plays an active role, it became apparent that the unavailability of grass seeds was the major constraints for communities growing fodder in the Arid and Semi Arid Lands (ASAL). Although the input supply under the FAO project was successful, it was realized that the activities needed upscaling and that a longer term approach would be needed, including training courses on seed production within the area. Theses needs are incorporated under the activities proposed in this project. Under the Food Facility, another project implemented by the World Bank is foreseen in Kenya. It will enhance the smallholder farmer's access to farm inputs in the high potential cereal zones of Kenya. The present project is complementing the previous one as it supports the livestock both in the high potential cereal zones (small scale milk producers) and in the Arid and Semi Arid Regions of the country (pastoral production systems). The project will use the lessons learned in livestock production under the Regional Drought Decision but will also venture into areas that are not tackled by the Regional Drought Decision such as marketing of live animals and livestock products. FAO has a long experience in the Farmer Field School approach and there is a wide adoption of the approach within Kenya, including in some of the Governmental extension approach. Under the Regional Drought Decision, FAO and implementing partners are adapting the approach being adapted to the pastoralist' regions, to develop Pastoral Field School (PFS). Initial finding are very encouraging and the approach will be used for the training under the livestock feed component

3 The Kenya Food Security Meeting (KFSM) undertakes assessments twice a year prior to the onset of rainy seasons. Recommendations of the previous assessment have been incorporated in this document. There is currently an assessment ongoing and these findings will be used to fine-tune the activities proposed in this action Complementary actions Concerning livestock, the European Commission through its Humanitarian Office (DG ECHO) is supporting the Regional Drought Decision for a total of 30 million for the Horn of Africa Region. This decision is coordinated by FAO Kenya and technical backstopping is given under the Kenyan component, especially for livestock and water sector. In Food Security as a whole, the European Commission plans to spend 32 million for the period to support Community-Based Projects (part of the 10 th EDF funds). Those projects aim, amongst others, to increase food and nutritional security. The Commission will also support the Kenyan Government to implement their Agricultural Sector Development Strategy (ASDS) 13 for a total of 66 million. In addition, the European Commission is supporting the Drought Management Initiative (DMI) to enhance the drought management capacities from Kenyan Government and to facilitate the critical step from relief to preparedness (Total of 17,7 million from 9 th EDF/B envelope). It has field projects in Turkana and Pokot area and these projects are incorporated within the coordination role of FAO Kenya. The EC and FAO are cooperating under a pipeline project for 1.5 million Euros which is targeting the livestock sector following the post-election crisis. Under this project, FAO will carry out animal heath interventions and rehabilitate partly the livestock sector and the dairy sector in particular. The activities under the current proposed project will build on the results achieved by this rehabilitation project. Under the Food Facility funding, World Bank is proposing a 20 million Euros project to target crop production. The proposed action will work closely with this project, in particular on the development of alternative feed crops. The European Commission through DG ECHO is also implementing relief actions in favour of vulnerable populations. In addition, ECHO is currently co-financing the Global Partnership for the Integrated Food Security Phase Classification which will map the food security throughout the country. In addition, WFP supports the most insecure families through food distributions and nutrition programs; IFAD is supporting a number of projects to protect the most vulnerable farmers. They include Community Service development, Natural resource management, dairy and horticultural produce marketing (Total value: 65 million), the World Bank support agricultural access to input through farmer empowerment programs in twenty districts (Total value 7,5 million), IDA-financed Agricultural Productivity and Agribusiness project promote the creation of seed stock ( 60 million) and finally, the FAO is assisting the vulnerable farming households affected by the soaring food prices, by organizing input distribution (seeds, fertilizers, animal health supplies). 13 Formerly Strategy for Revitalising Agriculture (SRA) - 3 -

4 2.4. Donor coordination Efforts have been made at the level of the Government of Kenya but progress remains slow as the sector is faced with notable fragmentation of responsibilities between various ministries and numerous donor intervention. This project will be implemented in coordination with various stakeholders in the Food Security field. It will contribute to the Government's efforts to increase access to agricultural inputs as mentioned in the Strategy for Revitalising Agriculture (SRA). The Kenyan Food Security Steering Group, composed of all stakeholders is the official technical "Think Tank" on national drought management and food security issues. It also plays a crucial role in coordination of donors to ensure systematic implementation of drought and food security strategies. The EU strategy is aligned to the national strategy complementing rather than duplication mitigation efforts. The Agriculture Donor Group and ASCU (Agriculture Sector Coordination Unit), in which FAO plays an active role, is coordinating agricultural interventions at Nairobi level. 3. DESCRIPTION 3.1. Objectives The overall objective of the project is to contribute to the mitigation of the effects of Soaring Food Prices on the food security of the most vulnerable population in Kenya, by supporting existing programmes aimed at increasing food production. In perusing this goal, the project will, in particular, try to increase the local supply of livestock products in 2009 and 2010 by rapid inputs supply and strengthening the productive capacities to allow Kenya to resume the growth trend it has experienced in recent years. The activities will take place in two focus production system: small scale dairy production systems in higher potential areas in western Kenya and in selected pastoral production system in the ASAL region in northern Kenya. The specific objective is to restore livestock production capacity among the most vulnerable population in Kenya and improve market access of livestock products, in order to mitigate the effects of the soaring food price and draught. The project will, on one hand, improve supply of products from the small-scale dairy production systems in high potential areas; on the other hand, it will also improve supply of livestock and livestock products from pastoral production systems in selected areas in the ASAL (arid and semi arid lands) Region Expected results and main activities This action will have different strategies to tackle the effects of the current food crisis: a rapid response intervention through input supply, activities that are targeted toward improvement of productive capacities of the livestock sector and the enhancement of private sector involvement in input supply and marketing. The action will be implemented through FAO in partnership with the Kenyan Government and implementing partners and will include the activities described below. There are two key - 4 -

5 results under this livestock component, which are mentioned below including the activities related to these results. Result 1: Improved availability of livestock and livestock products from pastoral production systems. Activities under Result 1: i) Provision of drought tolerant grass seeds (e.g. Sudan grass) for fodder production sites e.g. in Madera, Turkana and Garissa districts. 4,600 targeted households will receive 145 tonnes of highly quality and drought resistant fodder seed, with an estimated coverage of 650 hectares. ii) Promoting farmer involvement in the management of seed bulking and multiplication through the expansion of the Pastoral Field School (PFS) approach to enhance the quantity and quality of locally produced fodder with the use of the fodder seed inputs, including the promotion of private sector involvement to address the constraints that inhibit productivity and access to input markets for fodder production. 40 new Pastoral Field Schools will be set up and 20 existing PFS will be further developed. iii) Improve efficiency of livestock marketing information systems with the assistance of ICT (Information and Communication Technology) to improve communication e.g. for the permits and market price monitoring. iv) Improvement of selected livestock marketing infrastructure, including holding grounds and water points and including the linking to the activities already carried out under the ECHO RDD. At least 2 holding grounds will be rehabilitated including water points. Result 2: Improved availability of dairy products for small-scale milk producers in higher potential areas. Activities under Result 2: i) Critical vaccinations and treatments will be carried out for small-scale dairy producers in areas affected by the Food Crisis. Main vaccinations and treatments will depend on a detailed participatory epidemiological assessment at the start of the project but could cover FMD (Food and Mouth disease) and CBPP (Contagious Bovine Pleuro Pneumonia), and treatments for Mastitis and other milking-related diseases. The animal heath component will be in line with Government strategies and disease control and costs of vaccinations and treatment. At the end of the project, it is expected that the livestock mortality and morbidity rates will decrease by 20% in the targeted area. ii) Promotion of alternative feed ingredients like sorghum, cassava and millets in the small scale dairy sector. This component will be carried out through cooperation with the crop production component of the EC response to food crisis led by the World Bank. The action will provide training on feed formulation and use of alternative feed crops to beneficiaries of the World Bank crop production project. By the end of the project, is it expected that alternative feed crops will increase by 20% in target area

6 iii) Dairy marketing improvement including dairy information systems in line with existing mechanisms, including the promotion of private sector involvement to address the constraints that inhibit productivity and access to input markets for dairy production; iv) Improvement of dairy hygiene for higher quality products and access of more demanding markets; The project will be implemented by FAO who has a dedicated livestock team based in Kenya. FAO in Kenya has established implementation linkages with the Ministry of Agriculture, the Ministry of Livestock Development, the Ministry of Water and Irrigation, private sector players and a number of NGOs with competence, capacity and experience to implement the different project components. FAO will manage the funds and supervise the project activities. The implementation will be contracted out by FAO to competent NGOs with strong operational presence at the district levels and the government ministries (Ministry of Agriculture, Ministry of Water and Ministry of Livestock Development) at the district levels. Technical backstopping will be provided by the Animal Production and Health Division (AGA) in FAO headquarters in Rome, through the Sub-regional office in Addis Ababa (for animal production issues) and through the Emergency Centre for Trans-boundary Animal Diseases (ECTAD) in Nairobi for animal heath issues Risks and assumptions A supportive political environment will be essential to achieve the established objectives. Given that most of the target areas were affected by the post-election violence, a successful reconciliation process will highly influence project's performance. The assumption is made, that the increase of productivity will allow smallholder farmers in target ASAL areas to spare some income and thus to be able to purchase the required input the following year. In case of drought or diseases, there is a risk for those farmers to not achieve their objective. To mitigate this, drought tolerance seeds will be promoted and technical advices provided through the Pastoral Field Schools. It is assumed that all stakeholders will be committed to the proposed project activities; the activities do follow the direction the Ministry of Livestock Development has shown in their planning. FAO will also, through the Agriculture and Livestock Sector Working Group under the Kenya Food Security Meeting, carry out a detailed planning of the activities together with the stakeholders Crosscutting Issues A special attention will be given to gender issues during the full intervention, since many livestock producers in target areas are women and are involved with the collection and processing of livestock products. The support to increase production is aiming at developing sustainable systems by giving priority to environmental friendly agricultural inputs (locally adapted and drought tolerant seed). Veterinary drugs will be supplied following training and full involvement of veterinary experts. Environment issues will be kept in mind during the project preparation and an environmental impact study may be done if necessary

7 Good governance will be mainstreamed throughout all component of the project. The beneficiaries' selection and the input distribution will respect the principles of good governance and will be done in full transparency, based on objectives and clearly established selection criteria. District level technical line ministries and beneficiaries will be fully involved in targeting the project activities through a consultative process Stakeholders Direct beneficiaries in this intervention will be pastoralists in the ASAL region (4 600 households) and small-scale dairy producers in the higher potential areas (reduction of livestock mortality will decrease by 20%). The rest of the Kenyan population are indirect beneficiaries as the food production increase will allow them to have a better access to the local products. FAO Kenya will use their existing link with Government institutions and NGOs to come to a common understanding for the implementation of the activities, mainly through the KFSM coordination structure. 4. IMPLEMENTATION ISSUES 4.1. Method of implementation The project will be jointly managed through the signature of a contribution agreement with FAO Procurement and grant award procedures. The contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by FAO Budget and calendar EC maximum contributions: 4,000,000. Budget Items (Preliminary Indicative Budget) Euros 11. Human Resources (salaries and per diem) 925, Travel (international and local) 49, Equipment and supplies (furniture, IT equipment for livestock marketing, seeds, vaccines, diagnostic kits, sampling equipment, veterinary drugs ) 638, Office costs 146, Services (evaluation, trainings, workshops, visibility, technical support services, subcontracting to implementing partners ) 1,926, Subtotal Direct Cost 3,684,

8 17. Contingency reserve (1.5% direct cost subtotal) 55, Total Direct Cost 3,739, Indirect Costs: administrative overheads (7%) 261,000 Total 4,000,000 The activities will start in 2009 and last 24 months Performance monitoring The performance of the project will be closely monitored by the FAO. The EC delegation in the country will also ensure adequate monitoring on the basis of key indicators established in the Logical Framework, progress reports and participation to relevant meetings/committees. External Results Oriented Monitoring missions by European Commission may be carried out Evaluation and audit The project will undergo a final evaluation, to be carried out by the European Commission. Audits will be carried out by FAO according to its Financial Regulations, Rules and Directives. In addition, expenditure verifications may be carried out by the European Commission Communication and visibility In accordance with the visibility provisions under the EC-UN Financial and Administrative Framework Agreement (FAFA) and with the EC-UN Joint Action Plan on Visibility signed in September 2006, the EC and the implementing organisations will work together to ensure appropriate visibility actions for the programme as a whole, as well as for specific interventions and activities under the programme. Standards regarding visibility will be derived from the "EU visibility guidelines for external actions"