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Resource Flows and the Humanitarian Contribution

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PAPER BRIEFING Kenya Red cRoss Resource flows and the humanitarian contribution AUTHORS: DATE: VERSION: Jane Keylock & Kerry Smith May 2011 1 WORKSTREAMS: Delivery Domestic response contents executive summaRy Executive summary 1 Arguably the world’s largest humanitarian Furthermore, there may be some double- organisation, the International Red Cross counting when funds move between Introduction 2 and Red Crescent Movement has a complex branches and headquarters, as well as Background to the Kenya Red Cross 2 resource mobilisation architecture, in the recording of costs recovered from which not only includes the International projects. However, being able to calculate Kenya humanitarian profile and study areas 3 Federation of Red Cross and Red Crescent the exact income is an aim of the society’s Societies (IFRC), the International 2011–2015 strategy. Study sites 3 Committee of the Red Cross (ICRC) and In 2010, the largest share of income national societies but also non-Movement Resource flows 4 generation to the headquarters came donors such as governments, individuals from administration costs recovered Source of income 5 and companies. Furthermore, national from projects (37.9%), while in 2009 societies operate a range of initiatives to Income generation 6 property provided the largest source of generate income domestically. Private sector 11 income (31.0%). As the KRCS receives This study explores this architecture from free land from the government and from Gifts in kind 12 the perspective of a recipient national the community at the branch level, it is Within the Red Cross society. The Kenya Red Cross Society (KRCS) in a good position to pursue property and Red Crescent Movement 13 provides an excellent example, as not only ventures. While many organisations can does it receive funding from Participating be given community-owned land, the Expenditure 15 National Societies (PNSs – donor national Kenyan Government does not provide any Humanitarian system 16 societies), the IFRC and the ICRC, but it other organisation with free land (with Key relationships 17 has also embarked on quite ambitious the exception of the Scouts movement). enterprises to increase its domestically Flexible funding from within the Movement Auxiliary role 17 raised income. Its two main ventures are a also helps the KRCS to develop its income Volunteers 18 private ambulance service (E Plus), which is generation activities. For example, private now Kenya’s largest ambulance service, and income to PNSs can be used to refurbish Community 18 a chain of hotels (Red Court). property that can be rented. Conclusion 19 Total income for the KRCS in 2010 was The KRCS is keen to reduce its dependence Acknowledgements 20 US$19.6 million, compared with US$28.2 on external funding so that it can undertake million in 2009. In both years, the largest activities not usually funded by donors, such source of income was from PNSs – 30.8% in as conducting needs assessments, rapidly 2009 and 28.5% in 2010 – while the second responding to disasters when donor funds largest source was from income generation are not yet forthcoming and responding to activities conducted at headquarters level, smaller-scale emergencies. However, high- which contributed 26.6% in 2009 and 28.0% profile income-generating schemes come in 2010. Although there is some income with an additional challenge, as there may and expenditure detail in its annual report, be a perception that the KRCS is an elite the KRCS admits that it does not know the society, which could result in a reluctance exact income for the whole society. This to contribute resources, be they financial, is mainly because domestically raised material or human. income at regional and branch levels remains uncounted by the headquarters. 1 intRoduction The International Red Cross and Red Crescent Movement is arguably the world’s largest humanitarian organisation, and with 186 national societies, covering almost every country, it has an unrivalled global presence. Such an extensive Movement, made up of the International Federation of Red Cross and Red Crescent Societies (IFRC), the International Committee of the Red Cross (ICRC) and national societies, comes with a complex resource architecture. By examining the resource flows from a country perspective, the Global Humanitarian Assistance (GHA) programme wanted to understand the functionality of the Movement’s fundraising mechanisms and how the different funding flows shape the overall humanitarian response. This case study, carried out in February 2011, set out to map the sources and volumes of funding to the Kenya Red Cross Society (KRCS) as well as the scope of the various resource flows. The wider contribution of the KRCS to the country’s overall humanitarian response was also explored, considering the auxiliary role the society plays to the Government, the extent of its autonomy, its role within the humanitarian system and its relationship with key stakeholders. The methodology included the compilation and analysis of financial data and key documents, as well as conducting interviews and focus group discussions with a range of stakeholders in Nairobi and in Garissa and Machakos, two districts where the KRCS has been implementing humanitarian assistance. BacKgRound to the Kenya Red Cross The Kenya Red Cross Society Act of 1965 Humanitarian response is managed legally transformed the Kenyan branch through a Disaster Management Unit, In January 2011 the KRCS launched a of the British Red Cross into the Kenya which has three elements – disaster drought appeal for KES 1,980,392,736 Red Cross Society. This Act officially preparedness/disaster risk reduction (US$23,257,000) to assist 1,860,000 recognised the society as an auxiliary to the (DRR), disaster response and tracing beneficiaries for six months in six of Government of Kenya in the humanitarian services. The activities of this unit are the country’s eight regions.2 Planned field, in accordance with the 1949 Geneva guided by the KRCS strategy. The society’s activities include food distribution, Conventions. The KRCS constitution also 2011–2015 strategy has recently been targeted supplementary feeding, states that, alongside this auxiliary role, launched and focuses on three thematic de-stocking livestock, providing the society maintains an autonomy which areas: operational excellence, investing transport to markets, water trucking, allows it to act in accordance with the in people and building a strong national rehabilitation of boreholes, nutrition Fundamental Principles of the Movement society. While the Government’s national education and hygiene promotion. at all times. With its headquarters in disaster policy has not yet been finalised, Nairobi, the current structure of the KRCS the KRCS has its own disaster policy which is organised across eight regions and 63 runs alongside each five-year strategy branches, covering the entire country.1 (although the disaster policy for 2011–2015 Approximately 500 staff and 40,000 has yet to be developed). volunteers work for the KRCS. As outlined in the 2011–2015 strategy, the The focus of the governance structure is KRCS is hoping to move away from food aid upon policy development. There are boards and towards community resilience. To date, at the national level (the National Executive it has implemented two small projects Committee) and at regional and branch classified as DRR: one on fire prevention levels, which are elected by members. for informal settlements and the other on The Council sits at the highest level of road safety. A Vulnerability and Capacity the KRCS and is headed by the Governor. Assessment (VCA) is currently being This body consists of members of the conducted in the North Eastern region National Executive Committee and four with a view to starting a DRR project in representatives from the eight regions. A drought-prone communities. There are substantial amount of campaigning takes also elements of DRR in its Food for Assets place during the election period, with programme (also known as Food for Work), elections being held every three years, and as the work undertaken by the community there is strong competition for places on the is aimed at building structures that boards at all levels. reduce vulnerability. 1 The eight regions of the KRCS do not exactly match the eight administrative provincial boundaries of the country; there is a 70% overlap. 2 The appeal covers Garissa district but not Machakos district. 2 Kenya humanitaRian pRofile and study aReas As described in the Kenya Emergency (UNOCHA) estimated that 350,000 people Humanitarian Response Plan 2011, the were displaced after the post-election figuRe 1: the five disasteRs which affected the most people Between 1900 and 2011 humanitarian strategy in Kenya is informed violence and, while many have returned by a combination of underlying humanitarian home, some have not, though the number issues, which include the impact of climate is unknown. total change on food security and livelihoods, disasteR date affected Floods and associated epidemics seasonally endemic diseases and high levels of affect various parts of Kenya, especially drought December 1999 23,000,000 malnutrition, inter-communal resource- along the flood plains in the Lake Victoria based conflicts, urban vulnerability, the epidemic January 1994 6,500,000 basin and the Tana River. Figure 1 shows the socio-economic dynamics of refugee camps five disasters which affected the most people drought July 2008 3,800,000 influenced by the situation in
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