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Public Disclosure Authorized Public Disclosure Authorized KENYA Agricultural Productivity Program KAPP I AND II Public Disclosure Authorized Report No. 133838 JANUARY 18, 2019 Public Disclosure Authorized © 2018 International Bank for Reconstruction This work is a product of the staff of The World RIGHTS AND PERMISSIONS and Development / The World Bank Bank with external contributions. The findings, The material in this work is subject to copyright. 1818 H Street NW interpretations, and conclusions expressed in Because The World Bank encourages Washington DC 20433 this work do not necessarily reflect the views of dissemination of its knowledge, this work may be Telephone: 202-473-1000 The World Bank, its Board of Executive reproduced, in whole or in part, for Internet: www.worldbank.org Directors, or the governments they represent. noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: The World Bank does not guarantee the World Bank. 2018. Kenya—Agricultural accuracy of the data included in this work. The Any queries on rights and licenses, including Productivity Program (KAPP I AND II). boundaries, colors, denominations, and other subsidiary rights, should be addressed to Independent Evaluation Group, Project information shown on any map in this work do World Bank Publications, The World Bank Performance Assessment Report 133838. not imply any judgment on the part of The Group, 1818 H Street NW, Washington, DC Washington, DC: World Bank. World Bank concerning the legal status of any 20433, USA; fax: 202-522-2625; e-mail: territory or the endorsement or acceptance of [email protected]. such boundaries. KS Report No.: 133838 PROJECT PERFORMANCE ASSESSMENT REPORT REPUBLIC OF KENYA KENYA AGRICULTURAL PRODUCTIVITY PROJECT (C3929; CH098) KENYA AGRICULTURAL PRODUCTIVITY AND AGRIBUSINESS PROJECT (IDA-45920; TF-96460) January 18, 2019 Independent Evaluation Group Financial, Private Sector, and Sustainable Development Currency Equivalents (annual averages, $1 in K Sh) Currency Unit = Kenyan shilling 2004 $1.00 79.2 K Sh 2005 $1.00 75.3 K Sh 2006 $1.00 71.9 K Sh 2007 $1.00 67.2 K Sh 2008 $1.00 69.8 K Sh 2009 $1.00 77.2 K Sh 2010 $1.00 79.5 K Sh 2011 $1.00 88.7 K Sh 2012 $1.00 84.7 K Sh 2013 $1.00 86.4 K Sh 2014 $1.00 88.1 K Sh 2015 $1.00 89.7 K Sh 2016 $1.00 101.5 K Sh 2017 $1.00 103.4 K Sh 2018 $1.00 101.1 K Sh Abbreviations AIRC Agricultural Information Resource Centre APL Adaptable Program Loan ASDS Agriculture Sector Development Strategy BCR benefit-cost ratio CIG common interest group DSU District Service Unit ESMF Environmental and Social Management Framework FIRR financial internal rate of return ICC Inter-Ministerial Coordination Committee ICR Implementation Completion and Results Report ICRR Implementation Completion and Results Review Report ICT information and communications technology IDA International Development Association IEG Independent Evaluation Group KALRO Kenya Agriculture and Livestock Research Organization KAPAP Kenya Agricultural Productivity and Agribusiness Project KAPP Kenya Agricultural Productivity Program KAPSLM Kenya Agricultural Productivity and Sustainable Land Management KARI Kenya Agriculture Research Institute ii KENAFF Kenya National Farmers Federation M&E monitoring and evaluation MIS management information system NARS National Agricultural Research System NASEP National Agricultural Sector Extension Policy NGO non-government organization NPV net present value PPAR Project Performance Assessment Report RSU Regional Service Unit SRA Strategy for Revitalizing Agriculture All dollar amounts are U.S. dollars unless otherwise indicated. Fiscal Year Government: 1 July – 30 June Director-General, Independent Evaluation Ms. Alison Evans Director, Financial, Private Sector, and Sustainable Development Mr. José Carbajo Martinez Manager, Sustainable Development Ms. Midori Makino Task Manager: Lead Evaluation Officer Mr. Bekele A. Shiferaw iii Contents Preface .................................................................................................................................................................. x Summary ............................................................................................................................................................. xi 1. Background and Context .................................................................................................................... 1 Country Background ................................................................................................................................... 1 Project Context .............................................................................................................................................. 2 Kenya Agricultural Productivity Program (KAPP) ............................................................................ 4 Beneficiaries and Targeting ....................................................................................................................... 5 Financing ......................................................................................................................................................... 6 Program Implementation Arrangements ............................................................................................. 7 3. KAPP I: Kenya Agricultural Productivity Project ......................................................................... 8 Relevance of the Objectives and Design .............................................................................................. 8 Objectives ..................................................................................................................................................................... 8 Relevance of Objectives ........................................................................................................................................... 9 Project Design ............................................................................................................................................................. 9 Relevance of Design ................................................................................................................................................ 10 Implementation ............................................................................................................................................ 11 Project Management ............................................................................................................................................... 11 Implementation Experience .................................................................................................................................. 12 Safeguards Compliance ......................................................................................................................................... 12 Financial Management and Procurement ....................................................................................................... 12 Achievement of the Objective ................................................................................................................ 13 Efficiency ........................................................................................................................................................ 19 Ratings .......................................................................................................................................................... 20 Outcome .................................................................................................................................................................... 20 Risk to Development Outcome ........................................................................................................................... 21 Bank Performance .................................................................................................................................................... 21 Borrower Performance .......................................................................................................................................... 22 Monitoring and Evaluation .................................................................................................................................. 23 4. KAPP II: Kenya Agricultural Productivity and Agribusiness Project (KAPAP) ................. 24 v Relevance of the Objectives and Design ........................................................................................... 24 Objectives .................................................................................................................................................................. 24 Relevance of Objectives ........................................................................................................................................ 24 Project Design .......................................................................................................................................................... 25 Relevance of Design ............................................................................................................................................... 26 Implementation .......................................................................................................................................... 27 Project Management ............................................................................................................................................