• Reference: P-KE-AAA-002
• Approval date: 29/04/2009
• Start date: 29/10/2009
• Appraisal Date: 09/02/2009
• Status: OngoingOnGo
• Implementing Agency: MIN OF LOCAL GOVERNMENT - PHYSICAL PLANNING
• Location: Molo & Uasin Gishu Districts

Project components

1.On-Farm Infrastructure - UA 15.639 million: - Reconstruct 19,000 low-cost houses for returning farm families with priority given to female headed households during beneficiary selection - Provide 19,000 returning farm families with basic agricultural inputs through NAAIAP's voucher system using accredited private stockists - Distribute 1,900 tons of fertiliser and 190 tons of maize seeds to returning farm families - 7,755 hectares of land planted with maize seeds during the 2010 long rains - 34,200 tons of maize produced

2.Project Coordination - UA 1.034 million: - Planning, management coordination of implementation of project activities - Provide capacity building support to 2 District Peace Committees - Monitoring and Evaluation of project activities

The specific objective is to restore agricultural production and livelihoods for 19,000 farm families displaced by the PEV in the districts of Molo and Uashin Gishu in the Rift Valley Province.

The agricultural sector has been impacted negatively by the PEV. About 92% of displaced farmers come from the Rift Valley ((77%), Western and Nyanza Provinces which are considered the breadbasket of the country. The loss of livelihood assets and farm buildings limits the ability of the displaced farm families to return to their former activities with serious consequences on national food production contributing to the current food shortage in the country. In the North Rift and Western provinces the overall area under crops declined by 19% and 16% for maize and beans respectively in 2008. The low applications of farm inputs, especially fertilizers, are expected to further reduce the expected yields per unit area by about 22%. The GoK has identified revitalization of the agriculture sector, especially in the Rift Valley, Nyanza and Western Provinces, as a key area for action to ameliorate the effects of PEV on the economy and to restart agricultural production. Substantial support of the donor community is necessary to avert any food insecurity in the country The Bank's intervention will complement the efforts of government and other development partners to restore the livelihoods of PEV-affected communities in Kenya. The Bank as the partner of choice for Kenya can leverage its experience gained in post conflict countries such as Eritrea where a recently completed programme facilitated the return and re-integration of IDPs displaced as a result of the border war with Ethiopia to their original villages, restored their agricultural livelihoods, provided water supply and education infrastructure. Similarly, the Bank has experience in other post conflict countries like Angola, the Republic of Congo, Burundi, Liberia and DRC where it provides parallel financing for the national component of the multi-country demobilisation and re-integration programme. The project is also in line with the Bank's effort aimed at addressing the current food crisis in Africa in the medium term, through the enhancement of agricultural production and productivity by investing in rural infrastructure. The Bank's comparative advantage and added value derives from its cumulative experience and positive achievements from implementing projects in its large agricultural portfolio in Kenya.

Project Benefits

1 The project will enable the target PEV affected IDPs to re-establish their livelihoods and re-engage in their farming activities as their financial and economic assets damaged during the conflict are restored. The project will directly benefit about 19,000 households in the two districts, and it is estimated that more than 100,000 people including youths will indirectly benefit from short-term employment opportunities involved in shelter construction activities as well as those employed in the agricultural inputs industry.

2The project will improve livelihoods and food security of the farmers as improved seeds and fertilizer provided by the project will significantly boost maize yields to 2 MT per acre. According preliminary economic analysis undertaken by the Ministry of Agriculture (NAAIAP), the input starter packs would generate a benefit cost ratio of 5.4.

3The project will provide toilets as part of the on-farm shelter greatly improving hygiene and sanitation contributing to reduction in mortality and morbidity levels caused by water-borne diseases as well as the related health-care costs. The major benefits will accrue from the Projects contribution to the development of sustainable horticultural practices, improved food security and improved nutrition and health, and sustainable conservation and environmental management practices. In specifics, the project will encourage demand driven horticulture and rural development for sustainable poverty reduction.

MEND Alex Fred - OSAN1

Finance source	Amount
ADF	UAC 15,000,000
Government	UAC 1,673,000
Total	UAC 16,673,000