Political Economy in Kenya

1
Political Economy in Kenya

• By
• Sahr Kpundeh

2
Politics in Kenya

• New Coalition Government took office in December
  2002
• Addressing corruption was a big campaign promise
• Strong opposition that organized to defeat an
  incumbent party that has been in power for over
  20 years.
• Dominant President (Daniel arap Moi) who
  controlled almost everything, including
  suppressing opposition, civil society and the
  media.
• Lots of goodwill from Development Partners to
  support new Coalition Government

3
Challenges

• Difficult entry points for reform due to
  entrenched corruption, executive dominance, and a
  culture of lack of accountability and
  transparency, including weak rule of law and
  inefficient service delivery mechanisms.
• Weak civil society due to poaching by new
  Government.
• Managing the unrealistic expectations from
  citizens
• Over-promising by new Government (jobs,
  anti-corruption actions, code of conduct, etc).
• major focus on getting the rascals out of
  government
• Unpredictable responses to support from
  Development Partners
• Role of politics---coalition government does not
  translate into coalition of reformers (some were
  old players from previous government and had a
  clear agenda)

4
Reform Agenda for new Government

• The new Governments strategy to improve public
  sector effectiveness was outlined in its Poverty
  Reduction Strategy Paper (PRSP), titled the
  Investment Program for the Economic Recovery
  Strategy for Wealth and Employment Creation.
• The Strategy centers on three inter-linked
  pillars (a) strengthening economic growth (b)
  enhancing equity and reducing poverty and (c)
  improving governance.

5
How We Responded

• A number of Analytical and empirical work was
  done that influenced our response especially in
  the area of designing our on-going public sector
  reform support program.
• Wage Bill Study
• Understanding Politics and potential entry
  points for reform (Joel Barkan before elections)
• Transparency International Annual Surveys on
  corruption
• Report on IFMIS
• Public Expenditure Reviews
• Leadership and Ethics pilotsResults-based
  management
• CFAAs, and CPARs
• Studies conducted on APNAC, especially the local
  chapter in Kenya
• Other local studies especially the Name and
  Shame Report
• Lessons learned from on-going PSM-TAP project
  institutional arrangements, composition of
  Steering Committee, forensic audits

6
How we used Knowledge of Political Economy

• Decision to re-engage with Government with new
  CAS aligned to support the Governments program
• Links with ERSSCcapacity building support for
  meeting prior actions and subsequent benchmarks
  (Capacity Building Fund)
• IRCB design---focus on delivering
  resultssupportive for transformative leadership,
  change management and public sector values and
  ethics as critical elements to be addressed as
  part of capacity building for public sector
  reforms to succeed.
• No support to Civil Service Reform due to
  unwillingness of new government to take tough
  action
• Push for greater harmonization and alignment of
  operational policies, procedures, and practices
  between development agencies with the
  Governments medium-term planning, budgeting, and
  disbursement procedures can help enhance the
  effectiveness of support to the Government.
• Strong leadership is required from the Cabinet
  which demonstrates political will, as well as
  Permanent Secretaries and Accounting officers,
  who have the primary responsibility of
  spearheading public Sector Reforms (no more Dream
  Team).
• A long-term strategic approach to technical
  assistance, which is not donor driven, is needed
  to achieve results. No quick fix approach to
  reform.

7
Lessons Learned

• Important to understand and appreciate the
  political economy dynamics in a country to help
  you have a sense of what is holding back reforms
  in a country and the potential entry points.
• Importance of collective action---involving
  other stakeholders in playing a role in a reform
  agenda
• Important role of the Media in pushing for
  change and helping to enhance transparency and
  accountability
• The one man show approach does not work in the
  new dispensation of politics and openness in
  Kenya. Reforms are bigger than one individual.
• Demonstrated ability of wounded leadership to
  take some tough action when necessary helps to
  keep momentum for reform moving forward. The
  Presidents response to the referendum was
  unique in a way by gracefully accepting defeat
  and taking steps to keep his Government together.
• Need to go beyond populist actions and make
  tough decisions for the good of the
  countryGoldenberg revisiting, judiciary review,
  pay raise deals struck with key service delivery
  sectors, etc., has put the Government in a
  difficult situation regarding the affordability
  of the wage bill.