KENYA NATIONAL SOCIAL PROTECTION POLICY

1 June 2011 MINISTRY OF GENDER, CHILDREN, AND SOCIAL DEVELOPMENTKENYA NATIONAL SOCIAL PROTECTION POLICYKENYA NATIONAL SOCIAL PROTECTION POLICYJUNE 2011 LIST OF ABBREVIATIONS AND ACRONYMS .. iFOREWORD .. iiiEXECUTIVE SUMMARY .. vCHAPTER 1: INTRODUCTION .. Background .. The Constitution and SOCIAL PROTECTION .. International Agreements .. Operational Definition of SOCIAL PROTECTION in KENYA .. Approaches to SOCIAL PROTECTION .. SOCIAL PROTECTION in the Context of NATIONAL Development .. 3 CHAPTER 2: OBJECTIVES, GUIDING PRINCIPLES, AND ASSUMPTIONS .. Objectives .. 5 Guiding Principles .. Assumptions .. 7 CHAPTER 3: THE SOCIO-ECONOMIC ENVIRONMENT .. Poverty in The Macroeconomic Situation .. 9 CHAPTER 4: THE CURRENT CONTEXT OF SOCIAL PROTECTION .. SOCIAL Assistance .. SOCIAL Security .. Health Insurance .. Overall Assessment of SOCIAL PROTECTION .

2 13 CHAPTER 5: POLICY MEASURES .. SOCIAL Assistance .. SOCIAL Security .. Health Insurance .. 20 CHAPTER 6: COORDINATION AND INTEGRATION IN THE .. 22 IMPLEMENTATION OF SOCIAL Rationale for Coordination and Integration .. Levels and Substance of Coordination and Integration .. 22 Within SOCIAL Assistance .. 22 Between SOCIAL Security and Health Insurance .. 23 Between SOCIAL Assistance, SOCIAL Security, and Health Insurance .. Prioritization and Sequencing of POLICY Measures .. 23 Short and Medium-term Measures .. 23 Longer-term Measures .. 24 CHAPTER 7: INSTITUTIONAL FRAMEWORK .. The NATIONAL SOCIAL PROTECTION Council .. The NATIONAL SOCIAL PROTECTION Secretariat .. County and Sub-county SOCIAL PROTECTION Committees .. Regulation and Adjudication .. 28 CONTENTSCHAPTER 8: FINANCING .. Sources of Funds for SOCIAL 29 Government Funding .. 29 Non-state Actors Funding.

3 The Management of Funds .. Graduation and Exit .. 31 CHAPTER 9: MONITORING AND EVALUATION, MANAGEMENT .. 32 INFORMATION SYSTEMS, AND COMMUNICATION Monitoring and Evaluation .. Management Information System .. 33 Information Flow .. 33 The Collection and Management of Data .. Communication and Influencing Strategy .. POLICY 35 ANNEXESA nnex I: Definition of Terms .. 36 Annex II: Summary of Key SOCIAL Assistance Programmes in KENYA .. 39 Annex III: Key NATIONAL Development Indicators .. 40 AIDS - Acquired Immune Deficiency Syndrome ASAL - Arid and Semi-arid LandsAU - African UnionCBO - Community-based OrganizationCDF - Constituency Development FundCEDAW - Convention on the Elimination of All Forms of Discrimination Against WomenCRB - Central Registry of BeneficiariesCSO - Civil Society OrganizationCSR - Corporate SOCIAL ResponsibilityCT - Cash TransferDFID - department for International Development (UK Government)EAC - East African CommunityERS - Economic Recovery StrategyESC - Economic SOCIAL Cultural (Rights)

4 FBO - Faith-based OrganizationGDP - Gross Domestic ProductHIV - Human Immunodeficiency VirusHMO - Health Management OrganizationHSNP - Hunger Safety Net ProgramID - Identification CardILO - International Labour OrganizationIPRS - Integrated Population Registration SystemJICA - Japan International Cooperation AgencyKIHBS - Kenyan Integrated Household and Budget SurveyKIPPRA - KENYA Institute of Public POLICY Research and AnalysisKKV - Kazi kwa VijanaKRA - KENYA Revenue AuthorityKRBF - KENYA Roads Board FundLATF - Local Authority Transfer FundM&E - Monitoring and EvaluationMoA - Ministry of AgricultureMDGs - Millennium Development GoalsMIS - Management Information SystemMTP - Medium-term Expenditure PlanNHIF - NATIONAL Hospital Insurance FundNSA - Non-state ActorsNSC - NATIONAL Steering CommitteeNSPC - NATIONAL SOCIAL PROTECTION CouncilNSPF - NATIONAL SOCIAL PROTECTION FundNSPP - NATIONAL SOCIAL PROTECTION PolicyLIST OF ABBREVIATIONS AND ACRONYMSiNSSF - NATIONAL SOCIAL Security FundOPM - Office of the Prime MinisterOVC - Orphans and Vulnerable Children PRSP - Poverty Strategy Reduction PaperPWD - Persons with DisabilitiesSAGA - Semi-autonomous AgencySWAP - Sector-wide ApproachUN - United NationsUNICEF - United Nations Children s FundWB - World BankWFP - World Food ProgrammeWHO - World Health OrganizationWSSD - World Summit on SOCIAL iiPoverty, disease, and ignorance were identified at the time of independence in 1963 as the critical challenges facing the new nation of KENYA .

5 While an appreciable degree of success has been achieved in the area of education, progress in reducing poverty and providing healthcare has been more modest. Forty-eight years after independence, poverty and vulnerability remain major challenges, with almost one in every two Kenyans trapped in a long-term, chronic and intergenerational cycle of poverty. Health risks that require a household to pay for medical treatment are of special concern to poor households. The cost of each illness, injury, or accident can range from very small, for example, covering the cost of simple medication, to astronomical, such as, for major surgeries. There are also illnesses associated with mass covariant risks, such as epidemics or natural disasters. These health risks tend to be difficult, if not impossible, to predict and affect many people at the same time.

6 The households limited ability to predict when and how often they will be affected and how much these illnesses are likely to cost them generates more uncertainty than many other a SOCIAL security perspective, the challenges include but are not necessarily limited to providing retirement pensions, sickness benefits, maternity PROTECTION , employment injury and disease PROTECTION (workers compensation), survivors benefits, disability coverage, family benefits, and unemployment PROTECTION . This POLICY developed to address these challenges is an important contribution of the efforts by the Government to reduce poverty and the vulner ability of the population to economic, SOCIAL , and natural shocks and stresses. It will play an important role in increasing access to SOCIAL welfare services not only for those with no predictable income but also for those in employment and the self-employed who need a financial cushion against future risks such as loss of employment, injury at work, loss of assets, or sickness.

7 It builds on KENYA s commitment to poverty reduction as articulated in various POLICY documents, development plans, and budgetary allocations, including KENYA Vision POLICY will also help individuals and households to reach a better balance between care-giving and productive work responsibilities. This is critical for the achievement of NATIONAL and international human welfare thresholds such as the guarantees provided by the Constitution, the United Nations Millennium Development Goals (MDGs), and international agreements including the Universal Declaration of Human Rights (1948), which identify SOCIAL PROTECTION as a fundamental human right for all citizens. This is also in line with the East African Community and African Union commitments to SOCIAL POLICY POLICY recognizes and builds on existing SOCIAL PROTECTION initiatives such as education bursaries, school feeding programmes, fee waivers in public health facilities, Orphans and Vulnerable Children s (OVC) programme, older persons cash transfer and youth enterprise fund, among others.

8 Broadly, the measures outlined in this POLICY aim to ensure that all people have the requisite financial cushion to enable them to maintain a decent living standard including access to healthcare during and after their active productive ages, income security provided through household and child benefits that facilitate access to nutrition, education, and healthcare, income security through SOCIAL assistance for older persons, people with disabilities, and those in active age groups who are unable to earn sufficient incomes in the labour market. FOREWORDiiiSocial PROTECTION interventions are provided by many different stakeholders including Government ministries and agencies, the private sector, communities, households, and other non-state actors. In the past, these different actors have often operated in isolation from each other, which has thus diminished their potential impact.

9 Through this POLICY , the Government of KENYA is reviewing existing SOCIAL PROTECTION strategies, programmes, and activities with a view to promoting synergy and minimizing duplication and of the schemes targeted for review and reform include but are not limited to: the NATIONAL SOCIAL Security Fund (NSSF), the Civil Service Pension scheme, various retirement benefit schemes provided under the Retirement Benefits Authority (RBA) Act, the NATIONAL Hospital Insurance Fund (NHIF), and cash transfer programmes. The Government is also cognizant of the fact that informal community support and extended families provide a significant form of SOCIAL PROTECTION to our POLICY reflects on the most appropriate principles and arrangements for funding SOCIAL PROTECTION in KENYA with reference to questions such as the appropriate level of funding, required funding sources, the way to make savings in the system by harmonizing the provision of SOCIAL PROTECTION , and how these savings can be reallocated to other areas of SOCIAL PROTECTION in need of POLICY was developed during a process that involved widespread consultations and the participation of stakeholders, thereby engendering ownership by the people of KENYA .

10 I wish to thank all those who gave their input either individually or through their organisations and institutions. Special thanks go to our development partners, particularly the department for International Development (DFID), UNICEF, and the World Bank for their technical and financial support during the entire wish to commend the Permanent Secretary Ministry of Gender, Children and SOCIAL Development, Dr. James W. Nyikal, CBS, the Technical Working Group members under Professor Collette Suda, Secretary for Gender and SOCIAL Development, who provided leadership for this process. Two teams of consultants helped to develop this POLICY . I wish to thank the first team comprising Dr. Michael Samson, Dr. Mary Amuyunzu-Nyamongo, and Mr. Peter Kariuki. The second team of Mr. Oduor Ong wen, Dr. Amuyunzu-Nyamongo, and Professor Marius Olivier helped to complete the process, and I thank them but not least, I would like to thank the Interim SOCIAL PROTECTION Secretariat in my Ministry, under the leadership of Ms.