Hunger Safety Net Programme 2

Presented by:

Carrie Ndoka- Communications

HSNP PILU- NDMA

Objectives

• To create a common understanding of HSNP

• To demonstrate the benefits (impact), innovations and opportunities provided by HSNP

Content

• What is HSNP?

• What is the rationale behind HSNP?

• What is the mandate for its implementation?

• What is the context of HSNP?

• What are the objectives of HSNP?

• How is it managed- the governance structure?

• How is its operations from National to sub-locational level?

• What are the successes and challenges?

• What are the verified impacts of HSNP?

• What innovations & opportunities has HSNP created in cash transfers sector?

Defining HSNP:

Rationale & mandate

What is HSNP?

• An unconditional social protection programme that delivers regular and predictable cash transfers to targeted poorest and vulnerable households (100,000HHs approx. 720,000 ppl) in the four Counties of Turkana, Mandera, Marsabit and Wajir. Current value is Kshs. 4,900 every 2 months.

• A GoK led programme, under Ministry of Devolution and Planning, managed by National Drought Management Authority (NDMA). Funded by Kenyan, UK (UKaid) and Australian Department for Foreign Affairs and Trade (DFAT) Governments.

• One of the 5 cash transfers under National Safety Nets Programmes.

• In addition, in times of emergency, HSNP plans to scale up and provide short term cash transfers to additional households (302,000HHs approx. 2.7million ppl) based on the targeting criteria and available resources.

• Delivered in two Phases. Phase 1, the pilot (2008-2012) costed Kshs. 5.5billion funded by DFID & DFAT and Phase 2 (2013- 2017) costing Kshs. 15.8billion.

• A poverty based cash transfer programme.

• The idea is to deliver long-term guaranteed unconditional cash transfers as opposed to food aid to chronically food insecure households.

• This will improve welfare, resilience and socio-economic impacts via greater retention of assets and increased poverty reduction for HSNP HHs (chronic and acute)

• HSNP was arrived at through a bilateral agreement between the Government of Kenya and the UK Government in September 2007. The grant from DFID is worth £ 80 million over 10 years (2007 –2017). In February 2012, the Australian Government, entered into partnership with DFID to support in the scaling up of Phase 2 by providing AUS 22million (approximately KES 2billion).

• GoK committed Kshs. 4.68 billion for HSNP (2013- 2017).

What is the rationale behind HSNP?

Those that:

• Cannot afford to meet basic expenses (regular nutritious food, adequate housing, and sanitation, etc) let alone invest in human capital development;

• Lack assets to earn sufficient income even in good years;

• Vulnerable to sinking into further depth of poverty in times of extreme shocks e.g. drought, livestock disease; floods etc; Harmful coping strategies e.g. selling of assets, pulling children from school to earn for family, heavy borrowing;

• Elderly, households without adult labour, long term illness, severely disabled;

• Lack capacity to participate in productive programs e.g. income generating activities.

Who are the extreme poor?

What is the mandate for HSNP implementation?

• There is broad consensus among policy makers that social protection is a powerful way to fight poverty and promote inclusive growth;

• This international consensus is articulated in the African Union’s Social Policy Framework (SPF), which was endorsed by all African heads of state in 2009. The SPF includes social security measures, furthering income security and also the pursuit of an integrated policy approach that has a strong developmental focus, such as job creation;

• Evaluations of these programmes have shown that social protection directly reduces chronic poverty and vulnerability (Kenya Social Protection Sector Review- June 2012, HSNP Impact Evaluation 2009-2012 Report).

Mandate continued…

• The National Social Protection policy passed in 2012– and the National Safety Net programme – is aligned to realising the right of all Kenyans to social security, as set out in Article 43 of the National Constitution Bill of Rights;

• The Social Pillar of Vision 2030 gives SP focus and direction. SP is one of the five flagship programmes under Vision 2030.

“Under the Hunger and Safety Net Programme covering Mandera, Marsabit, Wajir and Turkana, my Government has allocated 15.8 billion shillings under

a 5-year programme, distributed to 100,000 households. We have also expanded the social protection plan to cover more than one million elderly

and severely disabled people this financial year.”

H.E. President Uhuru Kenyatta’s speech during Mashujaa Day, 20th October 2014.

How is HSNP defined under Social Protection?

Social Protection

EmploymentPolicies

(Retirementbenefits )

Social Insurance(NHIF, NSSF)

Contributory

Social Assistance

Non Contributory

(HSNP, OVC, UFS,

PWSD, OP)

• Yes

Unconditional Cash Transfers (CTs) are more numerous in Sub-Saharan Africa e.g.

• Kenya (OVC, Older Persons, Persons with Severe Disabilities)

• Ethiopia (Productive Safety Net Programme)

• Uganda (Pilots: Senior Citizens Grants and the Vulnerable

Family Grants)

• South Africa (Child Grant, Pension)

Are there programmes similar to HSNP in

other Countries?

The Context: Geographic & Social-economic

What is the context of HSNP?

• ASALs: 84% of land mass; 36% Kenya’s population.

• Chronic poverty (extreme poverty head count rate- Turkana 94%, Marsabit 94%, Mandera 88% & Wajir 84%- KIHBS 2005/6, drought prone and historically marginalized(poor infrastructure, high illiteracy)

• Low scores against national development indicators. (access to health, education, water etc)

• Integrated and dynamic challenges- insecurity, clan/ ethnic clashes, resource conflicts etc

Where is HSNP positioned under NSPN?

National Social Protection Council (supported by Social Protection Secretariat)

Ministry of Labour, Social Security and Services

Department of Children's Services

Orphans & Vulnerable Children CT

Department of Gender and Social Development

Urban Food Subsidy CT

Older Persons CT

Persons with Severe

Disability CT

Ministry of Planning and Devolution

National Drought Management

Authority (NDMA)

Hunger Safety Net Programme CT

HSNP Implementation: Objectives, stakeholders, governance &

coordination

Objectives of HSNP

1. Reduce extreme hunger and vulnerability of the poorest

households through the regular payment of an

unconditional cash transfer;

2. Ensure effective, financially secure and well-targeted use

of safety net and cash transfer programmes to support

some of the most vulnerable and poor in Kenya;

3. Implement a scaled up, integrated, effective

government-led and financed safety net programme.

Who are HSNP’s stakeholders?

• Benefitting Households

• Wider CommunitiesBeneficiaries

• Ministry of Devolution and Planning

• NDMA (Semi-autonomous government authority)

• NSNP (National Social Protection Secretariat)

• Ministry of Labour and Social Services

• Treasury

• County Governments

GoK

• Financial Sector Deepening & Equity Bank

• HelpAge International with local partner

Implementing Partners

Donors• Department for International Department (UKaid)• Department of Foreign Affairs and Trade (Australian)

HSNP Governance Structure

Team Leader

Operations Manager

Finance Manager

MIS Specialist Monitoring Specialist

Office Manager

Project Administrator

Programme Implementation & Learning Unit

CEO

Director Technical Services

Manager Drought Response

NDMA

County Drought Coordinator (x4)

Drought Response

Officer (x4)

Programme Officers (x14)

HSNP Programme Manager (x 4)

Reporting

Programme Coordinator

Communications Specialist

Communication

HSNP Coordination- National & CountyNATIONAL LEVEL

• National Steering Committees meetings- meets quarterly, comprises of

NDMA(CEO as the chair), DFID, DFAT, NSNP, World Bank, Directors of

implementing partners.

• Technical Management Meetings- meets monthly,(PILU staff,

implementing partners, DFID & DFAT)

• Technical Coordination Meetings- meets weekly, (PILU staff,

implementing partners)

COUNTY LEVEL

• County Steering Committee meetings: meetings quarterly, (CDC-NDMA

as chair) comprises of NDMA, HSNP County staff, Equity Bank, HelpAge

(SPR Partners, other programme in humanitarian/ cash transfers.

• County Technical Working Group meetings: weekly meeting, (NDMA,

HSNP County staff, Equity Bank, HelpAge (SPR Partners)

What is the role of NDMA in HSNP?

• To provide oversight of implementation of HSNP;

• Ensuring GoK financing to HSNP (in line with NSNP and Ending Drought

Emergencies (EDE) MTP);

• Develop Scalable safety net responses during emergencies (HSNP and

National Drought Contingency Fund)

Project Cycle: Registration, targeting, payments, rights

and M&E

HSNP implementation of activities is guided by

Operations Manual- staff have been trained on the

processes and procedures.

Registration & targeting• Registration of 374,000 households in the four counties and took place during

October 2012/ June 2013; done by INGOs contracted by DFID;

• Targeting of the regular 100,000 households ended in October 2013. The process involved FOUR main steps:

1. Communities were asked to rank themselves into different wealth groups (known as CBT wealth ranking);

2. All households were registered on HSNP database and information used to develop a PMT score ( weightings given to factors affecting wealth- HH Assets, income);

3. Finally the GoK’s (Commission for Revenue Allocation) CRA formula was modified ( 25% Equity , 45% population & 30% poverty) to develop quotas for each of the four HSNP Counties.

4. Combined CBT +PMT Score was used to allocate HHs across the Counties.

No targeting method is perfect. HSNP developed measures of addressing inclusion errors.

In total, Turkana- 39,918; Mandera- 22,231; Wajir- 19,201 & Marsabit-18, 650HHS.

A sample questions applied

Categories Indicator analysed

1. Geographic Rural or urban location

2. Household demographic/health status

Age, gender and years of education of household head

Disabilities, chronic illness and recent health status

Dependency ratio

3. Education/ labour characteristics

Girls / boys in school

Children working

Employment / occupation of main provider

4. Housing quality and equipment

Type of housing –floor, roof, wall materials

Type of toilet

Source of water

Source of lighting and cooking fuel

5. Consumer durables Household goods owned e.g. fridge, bicycle, bed, mattress, radio,

mosquito net etc.

6. Ownership of livestock and agricultural land

Land area owned /cultivated

Livestock owned

Fishing equipment owned

How is HSNP payment done?

FSD was commissioned by DFID to contract a PSP. Equity Bank was awarded the contract for delivering payment for Phase 1 & 2.

Phase 1:

• Use of biometric Smartcard. Payment was through a Point of Sale (POS) device at HSNP Payment agents located within the communities.

• 69,000 beneficiaries received cash.

Phase 2:

• Fully fledged Bank Accounts. Equity Bank staff open accounts and instantly issue ATM MasterCards to beneficiaries at the sub-location level. Accounts are activated within 2 weeks.

• Must to have a valid National ID, KYC, If a beneficiary does not have, they are issued with a temporary HSNP Household Registration Receipts to open inactive accounts.

• Cash can be accessed using the ATM cards at any Equity Bank Agent, over the Counter of any Equity Bank or at the ATM.

Bank A/C opening & payment

Phase 1• Started at Kshs. 2,150 every 2 months and ended at Kshs. 3,500 in

2012.

Phase 2• Started at Kshs. 4,600 and is currently at Kshs. 4,900.• By end of 2017, projected to increase to Kshs. 5,400.HSNP CT is Approximately 75% of the value of the WFP food aid ration.

• Bank A/C Opening began in January 2014. So far 102,216 accountshave been opened in the four Counties. Target timeline of completion is January 2015.

• Payment of Cycles 8: Bank A/Cs of 67,794 beneficiaries have been paid 8 cycles (plus appropriate arrears) totalling over Kshs. 2.742billion by 5th December 2014.

How are complaints handled?1. HelpAge International is contracted to Implement the Social Protection Rights

Component of HSNP

• HSNP Complaints (Individual or group), Wider Rights (including support to obtain

National Identification Cards, corruption, discrimination, abuse)

• Mobilization & Communication to communities to engage with programme activities

e.g. registration, bank account opening etc;

2. HSNP has a robust Case Management System where logged cases can be followed

using the MIS which is decentralized for use by the HSNP County teams.

3. HSNP has developed a Service Charter and a Programme Charter for Roles and

Responsibilities- SPR uses these tools to raise awareness of their rights 4.

4. Beyond 2017- plans of linking HSNP Rights to Kenya Human Rights Commission…

HelpAge does this through contracted local partners in the 4 Counties:

• Mandera: (RACIDA) and (HAWENKA);Marsabit: PISP; Turkana: HelpAge International’s

Lodwar Office; Wajir: DPA.

At the grassroots- the programme uses Rights Committees, volunteers and Chiefs to

reach out to the Communities.

What does HSNP Case management entail?

Complaints

1.Payment related

2.Target related

3.Missed registration

4.Bank Accounts & ATM cards related

5.Payment agent related

6.Quality of service

Updates

7. Change of recipient

8. Change/ correction of address

9. Addition/ correction of National ID number

10. Correction of spelling of name

• The HSNP is an MIS-supported cash transfer. MIS acts as ‘operational backbone’- therefore the main users are operations staff, rather than IT staff.

One can easily with a click of a button:

1. Generate registry- list of registered HHs;

2. Generate Payrolls and reconciliation;

3. Generate reports on payments cycles, case management

In addition, HSNP dashboard- an automated real life reporting system has been developed. One can access progress and monitory reports in form of charts, tables, maps and graphs.

Access link is on HSNP website.

How is HSNP data managed?

Monitoring:

•Regular monitoring by NDMA staff, implementing partners, donors and external stakeholders.

•HSNP works closely with NSNP in achieving set Disbursement Link indicators (DLIs) under the Programme 4 Results (P4R), $300M). NSNP must demonstrate achievement of these indicators to unlock funding. Indicators include:

1.Adoption of expansion plan + budget by GoK (2013- 2017).

2.Develop a strategy for consolidating (harmonising) all CT programmes.

3.Establishment of baseline of % of beneficiaries who conform to targeting criteria of the programme they’re enrolled in.

4.Developing a functioning complaints & grievance mechanism (service charter, MIS C&G module, Hotline)

5.Develop a Single Registry MIS for all CTS- to improve fiduciary control & monitoring

Evaluation: will be contracted externally.

How is HSNP Monitored & Evaluated

What are the plans for scaling up?

One of HSNP core objective is to act as a vehicle for temporary/ emergency response.

• Rapidly scale up to deliver assistance to additional vulnerable HHs during crisis (drought, flood);

• Mass registration and Bank A/C opening is being carried out to create a mechanism in which other development & humanitarian orgs. and Govt bodies can channel assistance;

• HSNP Emergency Scale-up mechanism will enable much more cost-effective distribution lower admin & transaction costs, better monitoring & overall more money to beneficiaries;

• Draft for Scaling up has been developed;

HSNP Scalability Strategy is currently being developed.(funding, selection criteria, entitlement value, frequency, duration etc)

Successes Challenges1. Programme scaled up from pilot Phase 69,000hhs to 100,000hhs. Govt. has committed funding for Phase 2

Poverty level is extreme in the 4 Counties- high demand, high expectations, limited resources

2. Delivering cash through bank accounts and ATM MasterCards to regular 100,000hhs & further 302,000 during scale up.

Bank A/C opening is resource demanding and time consuming. Current insecurity in Mandera & Wajir is affecting operations. 25% of BFs have Card issues

3. Developed a robust MIS System that is successfulbacking up HSNP operations- National to Sub-county level

Staff have different level of IT competence. Demands for regular training is required.

4. Case management system is in place and functioning well.

There are cases that take time to resolve since policy decisions have to be made e.g. National IDs

5. Registered 371,800HHs across the 4 Counties Demands for heavy funding, pastoralism & insecurity caused some HHs to miss out

6. Poverty based programme- targets the poorest & vulnerable

Some County leaders demand for equity based because of clanism

7. NDMA agreed to facilitate NRB to carry our a mass registration of National ID- enable HSNP HHs access assistance

Current bouts of insecurity is hindering progress of the exercise in Mandera

8. Bank A/Cs of 67,794 beneficiaries have been paid 8 cycles (plus appropriate arrears) totalling over Kshs. 2.742 billion by 5th December 2014

Mass Bank A/C is affected by insecurity, pastoralism, current rains- cannot easily access communities.

Impact Evaluation

• It was carried out by Oxford Policy Management (OPM) between 2009-2012;• Sample of 5,000HHs randomly selected at baseline- interview on an annual

basis, • 48 evaluation sub-locations (24 treatment & 24 control) across the 4 Counties • First cash transfer- March 2009, 1st baseline data collected- 2010, 1st follow up

2011, 2nd follow up 2012• Baseline, 12 months (1st follow-up) and 24 months (2nd follow up). Findings:

Proportion of beneficiary households reporting spending the transfer on

(%):First transfer

Most recent transfer at

Follow-Up 1

Most recent transfer at

Follow-up 2

Food 88 88 85

Debt Repayment 40 40 45

Clothing 23 25 31

Health 21 22 17

Education 18 21 24

Livestock 11 12 7

Increased poverty reduction for HSNP HHs, compared to control group:

•HSNP HHs are 10% less likely to fall into the poorest decile nationally.

•Control HHs are 7% poorer on average than HSNP HHs.

•The severity of poverty for control HHs is also more pronounced, to the tune of 7%.

Primary impact:

1.Poverty/consumption- 71% of all households preferring cash support, 28% preferring food plus cash, and just 1% claiming to prefer food only.

2.Food security- 87% reported to have more and/or larger meals.

3.Asset retention- clear evidence that HSNP HHs were more likely to retain and/ or buy goats and sheep.

Secondary impacts: Noticeable increase in health & education expenditure; Livelihoods opportunities; increased saving, borrowing, credit; reduced vulnerability to shocks; empowerment of women; improved well-being of children and old persons.

Unintended impact: Dependency- not conclusive. Phase 1 had time limit of 4years, BFs were aware. 13% HHs used CTs to improve livelihoods e.g. move from charcoal burning to setting up table business to sell products

Summary impact evaluation analysis:

Innovations (a few examples) Opportunities 1. Developed a robust MIS System that back stops all the operations of the programme

NSPS using HSNP MIS to develop a single registry for all the 5 CTs, data can be used for various research with the findings informing policy.

2. Continually developing solutions that make delivery of cash more effective and efficient e.g. IPRS links for National ID verification, Biometric verification ATM cards, Softwares for scanning National IDs using mobile to enable activation of Bank Account at the sub-locations.

Other CTs to learn and emulate best practice on delivery of CTs using bank accounts & ATM cards; providing banking services in challenging and marginalised areas.

3. Developed a robust MIS System that is successfulbacking up HSNP operations- National to Sub-county level

NSPS, Govt. bodies, County govts. . development & humanitarian bodies can access HSNP current data for designing and implementing similar progs in the 4 counties. County govt. interested learning/ partnering to allocate funds and increase nos.

4. Developed a functioning MIS based case management system that is decentralised.

Govt and other organizations can study and learn on how best to deliver quality services to the citizens.

5. Developed and shared link to HSNP Dashboard-an automated reporting system.

Useful tool in monitoring the performance of the programme. Depending on the level of access, there is valuable current and useful information.

6. Developed and piloted a household registration software

Programmes can learn on how best to carry out mass registration exercises and collect the data required for use by the programme.

QUESTIONS?