Kenya - National Treasury Capacity Strengthening Project - IPR April 2023

IMPLEMENTATION PROGRESS AND RESULTS REPORT IPR A. Report summary and proposed actions Report Data Project name: NATIONAL TREASURY CAPACITY STRENGTHENING PROJECT Project code: P-KE-K00-011 Country Kenya Sector: Multi -Sector Environmental categorization 3-Low ES risks and Report type: Date of report: 12.05.2023 Mission: FIELD MISSION ASR 0001 From: 26.04.2023 To: 26.04.2023 Prepared by Task Manager: Angelique UMUBYEYI Alternate Task Manager : Division Manager : GEBRE -SELASSIE Kalayu ECGF2 Project Data PROJECT FINANCING in UAC Financing sourceinstrument Foreign currency Local currency Total M.I.C.F TechAssistMIC 200,000.00 0.00 200,000.00 BENEFICIARY TechAssistMIC 36,000.00 0.00 36,000.00 T O T A L 236,000.00 0.00 236,000.00 PROCESSING MILESTONES bank approved financing only Loan Number Date approved Date signed Date of entry into force Date effective for first disbursement Disbursement deadline 5500155013902 18.12.2020 12.02.2021 12.02.2021 12.02.2021 31.03.2024 LOAN AMOUNT in UAC Loan Number Net loan Approved UAC Signed UAC Cancelled UAC Net Loan UAC 5500155013902 200,000.00 200,000.00 200,000.00 0.00 200,000.00 T O T A L 200,000.00 200,000.00 0.00 200,000.00 DISBURSMENT STATUS at supervision date in UAC Loan Number Disbursed to date Disbursed to date UAC Disbursed to date Undisbursed to date in UAC Undisbursed to date 5500155013902 64,267.31 64,267.31 32.13 135,732.69 67.87 T O T A L 64,267.31 32.13 135,732.69 67.87 Executing and Implementation agencies Borrower MINISTRY OF FINANCE Guarantor GOVERNEMENT OF KENYA Executing Agency MINISTRY OF FINANCE Performance status Progress towards development objective Rating on Development Objective DO Performance rating Summary of key findings Current Previous The DO is on a good track to be achieved by end of the project. The implementation has been delayed but it is expected to pick up in 2023 satisfactory satisfactory Implementation progress Rating on Implementation Progress IP Performance ra ting Summary of key findings Current Previous The rating on implementation progress is satisfactory as project activities are progressing on a steady pace. However, project's imp lementation progress currently impacted by the unforeseen challenges impos ed by the COVID 19 pandemic. The project Implementation Unit PIU has been established and is in charge of the day -to-day project implementation. Both project workplan and procurement plan were prepared and approved. The upgrading and reengineering of th e e-ProMIS has been suspended because a new integrated system known as the Public Investment Ma nagement Information System PIMIS is being developed. The recruitment of the high level Advisors on debt management delayed, and the NT proposed to replace th e activity by TAs to support digitalization of the PDMO and the development of the PDMO frameworks. It is also noted that an Arrears Clearance Framework as an output is not one of the activities in the work -plan and therefore not budgeted for, it will be implemented with the savings if available. The commencement of procurement of consultants delayed due to late approval of the Annual Procurement Plan by the National Treasury. satisfactory satisfactory Overall project performance classification Overall Project Performance PP, PPP or NPPP Performance rating Summary of key findings Current Previous The project is classified a NPPP, as both The DO and IP are rated satisfactory. Generally, the pro ject implementation is on track and going forward, the implementation of activities is expected to accelerate in 2023. Non Potentialy Problematic Project Non Potentialy Problematic Project Issues, risks and actions for management consideration Issues affecting project implementation Key issues Corrective actions Responsible Deadline Status NA NA NA 31.12.2023NA Completed Main risks and mitigation Risks Mitigation measures applied or proposed Responsible Deadline Under close watch as disbursement is due for closure in less than 15 months, yet Under close watch as disbursement is due for closure in less than 15 months, yet the project is 22.4 disbursed. A number of actions are agreed to improve the disbursement rate. The Purchase of IT equipment is already underway and expected to conclude by end of June 2023. This will enhance absorption rate of the project funds. The bulk of undisbursed funds are earmarked for consultancy services which are currently at an ad vance stage of procurement. These activities will raise the disbursement rate further to around 80. The bulk of the uncommitted funds relates to services and operational cost. The training activities and bench marking visits are expected to conclude bef ore the end of this year 2023 Project Coordinator GoK AfDB 31.12.2023 B. Results reporting and assessment Progress towards development objective project purpose State the project development objective usually the project purpose as set out in the Results -based Logframe and assess progress To strengthen the capacity of the National Treasury for improved economic policy management and enhanced transparency, accountability, efficiency and effectiveness in public debt and project management. Outcome reporting Outcome indicators as per RLF Baseline value Most recent value End target Progress toward endtarget Assesment Debt management function strengthened Debt PolicyCPIA score scr 4.000 4.000 4.200 0.00 Likely to be achieved with correctives actions Na Improved monitoring and tracking of projects Loansgrants disbursement and repayments reports Delayed reporting due to limited capacity 2020 DELAYED REPORTING DUE TO LIMITED CAPACITY 2020 Regular quarterly reports generated in a timely manner 2022 NA Likely to be achieved with correctives actions likely to be achieved. The country is preparing regular disbursement status reports on loans and grants as a tool for tracking the i mple mentation of donor funded projects Outcome rating Rating on project outcomes Performance rating Summary of key findings Current Previous NA 3 3 Output reporting Output indicators Most recent value Annual target End target Progress towards annual target Progress towards end of project target Assessment e-ProMIS NATIONAL TREASURY IS REASSESSING WHETHER TO CONTINUE WITH THE UPGRADE NA e-ProMIS re -engineered and upgraded for enhanced functionality 2022 NA NA On track likely not to be achieved. Activity is no longer a priority since the National Treasury is setting up new integrated system known as Public Investment Management Information System PIMIS which is set to replace e -ProMIS. A TA to support Digitization of PDMO is being processed to replace this activity Quarterly technicalpolicy briefs produced Technicalpolicy briefs on macroeconomic policy DEVELOP TERMS OF REFERENCE TORS FOR ENGAGEMENT OF A TECHNICAL ASSISTANT TA T NA Focused quarterly technicalpolicy briefs on macroeconomic policy prepared and published 2022 NA NA On track Quarterly Economic and Budgetary Review prepared and published afte r the end of each quarter. Debt statistics published and arrears clearance framework developed Debt statistics MONTHLY DEBT BULLETIN PUBLISHED TWO 2 MONTHS AFTER END OF EACH MONTH. SO FAR, NA Monthly debt statistics published on time in line with new disclosure framework 2022 NA NA On track NA Arrears clearance framework NO FRAMEWORK IN PLACE NA Arrears clearance framework developed NA NA Not on track Delay in publishing monthly bulletins has reduced from a lag of six 6 months to two 2 months in subsequent period after the end of each month. Staff trained in economic policy and debt manag ement Number of staff who benefit from training nbr 11.000 12.00 12.000 91.67 91.67 On track Target not likely to be achieved. This is due to inadequate budget to train twenty 20 staff. So far Two 2 Staff have been trained 100 women [WOMEN] -Number of staff who benefit from training nbr 2.000 12.00 3.600 16.67 55.56 On track Target not likely to be achieved. This is due to inadequate budget to tr ain twenty 20 staff. So far Two 2 Staff have been trained 100 women Number of staff who benefit from benchmarking study tours nbr 0.000 6.00 6.000 0.00 0.00 On track Target not likely to be achieved. This is due to inadequate budget to train twenty 20 staff. So far Two 2 Staff have been trained 100 women [WOMEN] -Number of staff who benefit from benchmarking study tours nbr 1.800 1.80 1.800 100.00 100.0 0 On track Target not likely to be achieved. This is due to inadequate budget to train twenty 20 staff. So far Two 2 Staff have been trained 100 women Staff trained in project planning and management Number of staff nbr 5.000 20.00 20.000 25.00 25.00 On track likely to be achieved. Training activity is already projected in the Training Plan. [WOMEN] -Number of staff nbr 3.000 6.00 6.000 50.00 50.00 On track likely to be achie ved. Training activity is already projected in the Training Plan. Output rating Rating on project outputs Performance rating Summary of key findings Current Previous The project is rated as satisfactory as it is expected that end of project, the majority of outputs will be achieved. With exception of two outputs namely, 1. Reengineering and upgrading of e -ProMIS and 2. Development of Arrears clearance framework. These were replaced by TA to develop PDMO frameworks and TA to support PDMO digitization which contribute to the project development objective 3 3 Development objective DO rating Progress towards development objective Rating on Development Objective DO Performance rating Summary of key findings Current Previous The DO is on a good track to be achieved by end of the project. The implementation has been delayed but it is expected to pick up in 2023 satisfactory satisfactory Additional andor unanticipated outcomesoutputs optional Indicator Baseline End target Most recent value 12.05.2023 -10:50:12 -PRD 

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