PROGRAMME MANAGEMENT GUIDELINESnafis.go.ke/wp-content/uploads/2017/12/Programme-Management-Guidelines.pdfPROGRAMME MANAGEMENT GUIDELINES MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES

No. 9

REPUBLIC OF KENYA

AGRICULTURAL SECTOR DEVELOPMENT SUPPORT PROGRAMME (ASDSP)

PROGRAMME MANAGEMENT GUIDELINES

MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES

NAIROBI, JANUARY 2013

R&E Strategy and Guidelines for VCD2

© 2013, Government of Kenya

Agricultural Sector Development Support Programme (ASDSP)Ministry of Agriculture, Livestock and FisheriesHill Plaza, 6th Floor, P.O. Box 30028-00100 NairobiTel/Fax: +254-20-2714867Email: [email protected]

Overall ASDSP Programme Management Guideline-Version 2, January 2013

AGRICULTURAL SECTOR DEVELOPMENT SUPPORT PROGRAMME

(ASDSP)

PROGRAMME MANAGEMENT GUIDELINES

ASDSP REPORT NO. 9

REPUBLIC OF KENYA

Overall ASDSP Programme Management Guideline-Version 2, January 2013ii

FOREWORDASDSP is a sector-wide programme that supports interventions at the national level as well as in all the 47 counties to be established under the current Constitutional order. In order to facilitate the establishment of an enabling policy, institutional and financial environment, the Programme supports sector-wide coordination, policy development and harmonization and alignment of development partners’ support. The Programme is implemented with support provided by the Government of Kenya (GoK) and the Government of Sweden.

The overall goal of ASDSP is to “transform Kenya’s agricultural sector into an innovative, commercially oriented, competitive and modern industry that will contribute to poverty reduction, improved food security and equity in rural and urban Kenya”.

The ASDSP goal is aligned to ASDS and the CAADP Compact Kenya, the two core strategies outlining the GoK’s commitment to the agricultural sector. It is anticipated that through its activities, the Programme will contribute to the realization of Kenya’s wider development goals as expressed in the Millennium Development Goals, Vision 2030 and the Constitution of Kenya, 2010.

ASDSP is the core agricultural sector programme mechanism supporting the two main strategic thrusts of the ASDS, i.e. increasing productivity, commercialization and competitiveness of agricultural commodities and enterprises; and developing and managing key factors of production. The focus of the programme is to facilitate demand driven, stakeholder-led and coordinated efforts by relevant public and non-public sector actors – especially private sector agents - to strengthen critical value chains of local and national importance. This is done with a view to make the prioritized value chains commercially viable; ensure that they are environmentally resilient and accessible to poor and vulnerable farming constituencies; and that they contribute towards improved food security.

This guideline has been developed to provide an overview of the ASDSP structure and its “way of doing business”. The guideline is for use by the various stakeholders that are involved in the implementation of the programme. It is my hope that this guideline will facilitate smooth implementation of the ASDSP.

Phoebe Odhiambo (Mrs)National Programme CoordinatorAGRICULTURAL SECTOR DEVELOPMENT SUPPORT PROGRAM

Overall ASDSP Programme Management Guideline-Version 2, January 2013iii

ACKNOWLEDGEMENT

...........................

Finally, I also acknowledge the editorial team comprising Josephine Kamau from State Department of Livestock, Benson Nyariaro from State Department of Agriculture, Josephine Mogere from Agricultural Information Resource Centre and Rosemary Magambo M & E ASDSP for editing & proofreading and Jane Njeru from Agricultural Information Resource Centre for design and layout.

Finally, special gratitude goes to the National Programme Coordinator Phoebe Adhiambo and the Program Advisor Mikael Segeross for the facilitation, guidance and support from the initiation to publication of the booklet.

Kennedy OlwasiInstitutional and Capacity Development SpecialistAGRICULTURAL SECTOR DEVELOPMENT SUPPORT PROGRAM

iv Overall ASDSP Programme Management Guideline-Version 2, January 2013

Table of Contents

Project Management Guidelines ..........................................................i

FOREWORD ......................................................................................... ii

Acknowledgements.............................................................................iii

Abbreviations and Acronyms ......................................................... viii

1.0 INTRODUCTION .............................................................................1

1.1 Focus of this guideline .......................................................................................... 1

1.2 ASDSP objectives ................................................................................................ 1

1.3 ASDSP organizational structure and institutional context ..................................... 1

2.0 PROGRAMME FOCUS AND INTERVENTION STRATEGY .........4

2.1 ASDSP intervention areas .................................................................................. 4

2.2 ASDSP programmatic principles and intervention strategies .............................. 6

3.0 PROGRAMME GOVERNANCE, MANAGEMENT AND IMPLEMENTATION ............................................................................10

3.1 Considerations for division of roles and responsibilities between ASDSP and key partners ..................................................................................................................... 10

3.2 Overall ASDSP governance ................................................................................ 10

3.2.1 ASDSP Steering Committee .........................................................................10

3.2.2 ASDS/ASDSP County Steering Committees ................................................11

3.3 ASDSP coordination and management bodies ...............................................12

3.3.1 The ASDSP National Programme Secretariat ..............................................12

3.3.2 County Coordination Units ...........................................................................13

3.4 ASDSP supported value chain stakeholder fora .................................................15

vOverall ASDSP Programme Management Guideline-Version 2, January 2013 Overall ASDSP Programme Management Guideline-Version 2, January 2013

3.4.1 Value Chain Groups (VCG) ......................................................................... 15

3.4.2 Common Interest Groups (CIG) .................................................................. 16

3.4.3 Value Chain Platforms (VCP) ...................................................................... 16

3.4.4 Value Chain Fora (VCF) ............................................................................... 17

3.4.5 Cross-county Value Chain Platforms ............................................................ 18

3.5 ASDS Coordination Institutions ...................................................................... 18

3.5.1 Inter-Ministerial Coordinating Committee (ICC) .......................................... 18

3.5.2 Technical Committee (TC) ........................................................................... 18

3.5.3 Agricultural Sector Coordination Unit (ASCU) ............................................. 19

3.5.4Thematic Working Groups (TWG) ................................................................. 19

4.0 STRATEGY FOR INTEGRATING PROGRAMMES AND ENGAGING OPERATIONAL PARTNERS ..............................................................20

4.1 Overall considerations ........................................................................................ 20

4.2 Integrating core sector programmes .................................................................. 21

Governance level: ..................................................................................................... 22

Management level: .................................................................................................... 22

Technical level: .......................................................................................................... 22

Operational/implementation level: ............................................................................. 23

4.3 Operational partnerships .................................................................................... 23

5.0 COMPONENT LEVEL ACTIVITY IMPLEMENTATION .................28

5.1 Component 1: Sector-wide coordination ........................................................... 28

5.1.1 Improvement of sector coordination and joint programming ....................... 28

vi Overall ASDSP Programme Management Guideline-Version 2, January 2013

5.1.2 Strengthening of institutional and organizational capacity of key actors .... 28

5.1.3 Establishment of linkages between key sector stakeholders ..................... 29

5.1.4 Establishment of sector-wide information system ....................................... 29

5.1.5 Preparation and roll-out of sector-wide policies, strategies and regulations 29

5.2 Component 2: Strengthening environmental resilience and social inclusion of VCs .......................30

5.2.1 Awareness Creation of environmental sustainability, NRM and climate change ...................................................................................................................30

5.2.2 Strengthen the environmental resilience of the prioritized value chains ......30

5.2.2 Gender gaps in application of NRM information and technologies ..............31

5.2.3 Economic and social inclusion of women, youth and vulnerable groups .....31

5.3 Component 3: Value chain development ............................................................ 31

5.3.1 Upgrade value chains for employment, food security and income generation... ............................................................................................................ 33

5.3.3 Improving access to financial services and crop and livestock insurance .... 36

5.3.4 Strengthening value chain organizations ...................................................... 36

5.3.5 Identify new products for analysis, promotion and piloting ........................... 38

6.0 PROGRAMME WORK PLANNING, BUDGETING AND REPORTING ........................................................................................39

6.1Work plan and budget ........................................................................................... 39

6.1.1Annual work plan and budget ......................................................................... 39

6.1.2 Quarterly Expenditure and Activity Projections ............................................. 41

6.2 Progress reporting ............................................................................................. 41

viiOverall ASDSP Programme Management Guideline-Version 2, January 2013 Overall ASDSP Programme Management Guideline-Version 2, January 2013

7.0 MONITORING AND EVALUATION .............................................43

7.1 The purpose of M&E in ASDSP .........................................................................43

7.2 ASDSP monitoring ............................................................................................44

7.3 ASDSP evaluation ..............................................................................................44

8.0 FINANCIAL MANAGEMENT .......................................................46

8.1 ASDSP funding framework ................................................................................. 46

8.2 ASDSP budgeting and finance management framework .................................... 46

8.3 Integrity ............................................................................................................... 46

8.4 Specific activity finance management provisions ............................................... 46

8.4.1 General standards for activity finance management ..................................... 46

8.4.2 Transfer of funds for program and activity implementation ........................... 47

8.4.3 Financial reporting ......................................................................................... 48

8.4.4Financial audit ................................................................................................. 49

8.5 Procurement of goods and services ................................................................. 49

9.0 ASDSP ADMINISTRATION, LOGISTICS AND STAFF MANAGEMENT ...................................................................................52

10.0 References .................................................................................53

viii Overall ASDSP Programme Management Guideline-Version 2, January 2013

Abbreviations and AcronymsASCU Agriculture Sector Coordinating UnitASDS Agriculture Sector Development StrategyASDSP Agriculture Sector Development Support ProgrammeAVC Agribusiness value chainsAWP/B Annual Work plan and budgetCAADP Comprehensive African Agriculture Development

ProgrammeCBO Community Based OrganizationCCU County Coordinating UnitCIG Common Interest GroupCM ASDS Coordination MechanismCoC Code of ConductCSC ASDSP County Steering CommitteeCSO Civil Society OrganizationDP Development PartnerGoK Government of KenyaICC Inter Ministerial; coordinating CommitteeIFR Internal Financial ReportKENAO Kenya National Audit OfficeM&E Monitoring and EvaluationMOA Ministry of AgricultureMoF Ministry of FinanceMoU Memorandum of UnderstandingNAFIS National Farmers Information Service NC National CouncilNGO Non Governmental OrganizationNPS National Programme SecretariatNRM National Resource ManagementPMG Programme Management GuidelinePPDA Public Procurement and Disposal ActPSO Private Sector OrganizationQAEP Quarterly Activity and Expenditure ProjectionSC Steering CommitteeSIDA Swedish International Development AgencySOE Statement of Expenditure

ixOverall ASDSP Programme Management Guideline-Version 2, January 2013 Overall ASDSP Programme Management Guideline-Version 2, January 2013

TA Technical AssistantTC Technical CommitteeTWG Thematic Working GroupUSAID United States Agency for International DevelopmentVC Value ChainVCD Value Chain DevelopmentVCF Value Chain ForumVCG Value Chain GroupVCP Value Chain PlatformVCS Value Chain SpecialistVCO Value Chain Officer

1Overall ASDSP Programme Management Guideline-Version 2, January 2013 Overall ASDSP Programme Management Guideline-Version 2, January 2013

1.0 INTRODUCTION

1.1 Focus of this guideline

The operational guidelines for ASDSP implementation include a two-tier set of guidelines. The first tier, is the overall ASDSP Programme Management Guideline (PMG),that provides a brief overview of the ASDSP structure and its overall “way of doing business”.

The second tier of ASDSP guidelines includes a set of specific management, operational and technical manuals that provide detailed guidelines to stakeholders on programme management and coordination, partnering mechanisms, activity implementation, finance and procurement, M&E and reporting, staff management etc. The PMG and these specific manuals are complementary.

1.2 ASDSP objectives

The overall goal of ASDSP is to “transform Kenya’s agricultural sector into an innovative, commercially oriented, competitive and modern industry that will contribute to poverty reduction, improved food security and equity in rural and urban Kenya”.

The ASDSP goal is aligned to ASDS and the CAADP Compact Kenya, the two core strategies outlining the government’s commitments to the agricultural sector. It is anticipated that through its activities, the Programme will contribute to the realization of Kenya’s wider development goals as expressed in the Millennium Development Goals (MDG), Vision 2030, and the Constitution of Kenya, 2010.

The development objective of the programme is: “Increased and equitable incomes, employment and food security of the target groups as a result of improved production and productivity in the rural smallholder farm and off-farm sector”.

ASDSP supports the two main strategic thrusts of the ASDS, i.e.

1. Increasing productivity, commercialization and competitiveness of agricultural commodities and enterprises, and

2. Developing and managing key factors of production.

1.3 ASDSP organizational structure and institutional context

The ASDSP is implemented in the context of the coordination mechanisms for the implementation of the Agricultural Sector Development Strategy. ASDSP is a sector-wide programme and it is anticipated that multiple development partners will contribute towards its implementation. The Programme is currently implemented with support provided by the Government of Kenya and the Government of Sweden. The fiduciary

2 Overall ASDSP Programme Management Guideline-Version 2, January 2013

responsibility for the implementation of the ASDSP rests with the Ministry of Agriculture, Livestock and Fisheries (MoALF). A consultant company, NIRAS Natura, has been contracted to provide technical assistance inputs to the Programme. All key decisions affecting the Programme are made by the ASDSP Programme Steering Committee and the Interministerial Coordinating Committee (ICC).

The responsibility for day-to-day management of the ASDSP rests with the National Programme Secretariat (NPS) headed by the Programme Coordinator who is supported by a team of technical specialists and administrative staff. The NPS is supported by NIRAS Policy Advisor and short-term Technical Assistants. A Sector Coordination Advisor is assigned to the Agricultural Sector Coordination Unit (ASCU) which acts as the secretariat for ASDS-CM.

County level operations are steered by the ASDS County Steering Committees (CSC) and supported by the County Coordination Units (CCU) which are headed by the County Coordinators (CC). The CSCs and CCUs simultaneously act as the devolved coordination bodies for the implementation of the ASDS and as the county level coordination bodies for the implementation of the ASDSP.

ASDSP has an open framework structure that allow for co-financing by interested development partners and integration of existing programmes within the sector.


Figure 1: ASDSP Institutional Context

ASCU: Agriculture Sector Coordinating Unit ICC: Inter-ministerial Coordinating Committee

ASDSP: Agricultural Sector Development Support Programme

NPS: National Programme Secretariat

CCU: County Coordinating Unit SC: Steering CommitteeCIG: Common Interest Group TA: Technical AssistanceCM: Coordination Mechanism TC: Technical CommitteeCSC: County Steering Committee TWG: Thematic Working GroupDP: Development Partners


2.0 PROGRAMME FOCUS AND INTERVENTION STRATEGY

2.1 ASDSP intervention areas

The core programmatic focus of the ASDSP is promotion of commercially viable value chain development. However, effective sector coordination is a critical pre-requisite for successful value chain development and mainstreaming, therefore, the Programme also seeks to establish an enabling macro-level institutional environment through provision of support towards improved sector coordination. ASDSP targets to improve environmental and social sustainability of the value chains by supporting interventions that enhance environmental resilience and social inclusiveness. These will be implemented in three components as follows:

i) Component 1: Sector-wide coordination The Component supports a transparent and inclusive institutional framework for realizing the ASDS through support to sector coordination and harmonisation, and creation of an enabling institutional environment for the implementation of ASDSP. The major outcome areas of this Component include the following:

• Strengthening of the agricultural sector-wide approach adopted by government and development partners through support to improved sector coordination and joint programming

• Strengthening of institutional and organizational capacity of key sector actors

• Establishment of strong linkages between key sector stakeholders (programmes, researchers, educational institutions, extensionists and VC actors, especially the private sector agents)

• Establishment of a sector-wide information system appropriate for devolved government and VC development

• Development and roll-out of sector-wide policies, strategies and regulations supporting environmentally sustainable and socially inclusive VC development

ii) Component 2: Strengthening environmental and social resilience for VCD

This Component supports interventions aimed at ensuring that the efforts to strengthening priority value chains are are environmentally sound and resilient to climate fluctuations; and that women, youth and vulnerable groups participating effectively in and benefit from the improved value chains. This component therefore aims at:

1. Raising awareness and knowledge on the importance of environmental sustainability, NRM and the causes and effects of climate change;


2. Improving access to and use of appropriate NRM and climate change technologies and services, particularly for women, youth and vulnerable groups, and;

3. Improving access by women and vulnerable VC stakeholders to basic economic and social security services.

The major outcome areas of this component include the following:

• Strengthening of information systems and flows to raise the awareness, knowledge and appreciation of sound NRM and the causes and risks of climate change among VC stakeholders in general and vulnerable groups in particular.

• Enhancing equitable access and capacity to respond to weather information and climate fluctuations.

• Strengthening equitable access to and use of NRM/CC adaptation advisory services and appropriate technologies.

• Enhancing equitable engagement in local NRM/CC planning and access to NRM/adaptation activity funding.

• Supporting establishment of an enabling regulatory/policy environment for equitable NRM and climate adaptation linked to VC development

• Strengthening equitable access to and benefits arising from crop and livestock insurance

• Facilitating and improve access by women and vulnerable groups to social insurance and other social protection services

• Enhancing equitable community action capability through support to establishment and functioning of community groups and links to local civil society agents

• Facilitate establishment of an enabling regulatory and policy environment for gender and vulnerability responsive provision of crop and livestock insurance, social protection and engagement of community institutions in local development

iii) Component 3: Value Chain Development This Component supports viable, equitable and long term commercialization of the agricultural sector for income generation, food and nutrition securityand sustainable livelihoods, particularly for women, youth and vulnerable groups. The major outcome areas of this component include the following:

• Analysis and upgrading of value chains that can generate employment, ensure food security and increase incomes for diverse actors


• Increasing equitable market access by improving rural infrastructure and other trade-related interventions in collaboration with the private sector

• Improving equitable access to financial services

• Strengthening local value chain organizations to facilitate collective and equitable agreement on and pursuit of VC development activities

• Identifying and up-scaling promising, innovative and inclusive new value chains

2.2 ASDSP programmatic principles and intervention strategies

The following principles and intervention strategies inform the governance, management and implementation of the ASDSP:

• Governmentexecution: The Government of Kenya, represented by the ASDS Inter-ministerial Coordination Committee (ICC), is responsible for the execution of the ASDSP while the Government of Sweden – and other development partners provide funding and acts as partners to the GoK’s efforts to implement the ASDS. The executing responsibility of the GoK includes overall management of the programme and provision of staff and funding for efficient programme implementation.

• Sector-wideandpartnership-based: ASDSP conforms to the sector-wide approach adopted by the GoK and its development partners for the agricultural sector. Ownership and engagement of key sector stakeholders, such as sector ministries, existing programmes, research and extension agents, private sector and civil society actors is, key for fulfillment of the Programme’s goal, purpose and objectives.

What Constitutes a “Sector-Wide Approach” (SWAP)?

SWAPs are established to ensure:• Greater consensus on goals• Alignment of resources with national

objectives• More emphasis on results• More efficient mechanisms for utilization

of human and financial resources, moving attention from projects to programmes and sector

• Improved aid effectiveness, by linking policies, public expenditure allocations and poverty reduction goals

• Better partnerships between DPs and governments, by increasing government role, ownership and leadership

Components of an effective SWAP:A clear nationally-owned sector policy and

strategy (the ASDS)A medium term expenditure framework that

reflects the sector strategy (the MTIP)Systematic arrangements for programming

resources that support the sector (the ASDSP)A performance monitoring system than

measures progress and strengthens accountability(the sector M&E system)

An effective government coordination framework which includes development partners (e.g. the ASDS coordination mechanism, including ICC, TC, ASCU, TWGs, ASDSP)


What Constitutes a “Sector-Wide Approach” (SWAP)?SWAPs are established to ensure:• Greater consensus on goals• Alignment of resources with national objectives• More emphasis on results• More efficient mechanisms for utilization of human and financial resources, moving

attention from projects to programmes and sector• Improved aid effectiveness, by linking policies, public expenditure allocations and

poverty reduction goals• Better partnerships between DPs and governments, by increasing government role,

ownership and leadership

Components of an effective SWAP:A clear nationally-owned sector policy and strategy (the ASDS)A medium term expenditure framework that reflects the sector strategy (the MTIP)Systematic arrangements for programming resources that support the sector (the

ASDSP)A performance monitoring system than measures progress and strengthens

accountability(the sector M&E system)An effective government coordination framework which includes development

partners (e.g. the ASDS coordination mechanism, including ICC, TC, ASCU, TWGs, ASDSP)

What Constitutes a “Sector-Wide Approach” (SWAP)?SWAPs are established to ensure: Greater consensus on goals Alignment of resources with national objectives More emphasis on results More efficient mechanisms for utilization of human and financial resources, moving

attention from projects to programmes and sector Improved aid effectiveness, by linking policies, public expenditure allocations and

poverty reduction goals Better partnerships between DPs and governments, by increasing government role,

ownership and leadership

Components of an effective SWAP:A clear nationally-owned sector policy and strategy (the ASDS)A medium term expenditure framework that reflects the sector strategy (the MTIP)Systematic arrangements for programming resources that support the sector (the

ASDSP)A performance monitoring system than measures progress and strengthens

accountability(the sector M&E system)An effective government coordination framework which includes development

partners (e.g. the ASDS coordination mechanism, including ICC, TC, ASCU, TWGs, ASDSP)

A primary function of the ASDSP at the national and local levels is thus to convene and network existing actors to facilitate coordinated and collective action in support of value chain development, and related policy development. The ASDSP thus provides a programmatic and institutional framework for integration of the efforts of core sector programmes to support the implementation of the ASDS.

While the Programme has the capacity to provide technical, institutional and financial support towards a wide range of activities, it relies on harmonized action and operational partnerships with existing sector agents for provision of support to the Programme’s primary VC stakeholders. This “collective action” approach further implies that the ASDSP will only engage in direct implementation as a “last resort”, i.e. to the extent that the primary VC stakeholders, existing programmes and other support agents are not able to address identified VC gaps and related issues.ASDSP log frame, work planning and budgeting procedures need to be flexible and adaptive so as to ensure that the Programme accommodate action priorities pursued by collaborating ministries, programmes and other sector support actors.

• Aligned, harmonized and inclusive Programme governance,managementandfunding: ASDSP supports the implementation of the ASDS and operates in the context of the ASDS coordination mechanism. The Programme’s governance, steering and management bodies comprise representatives of (or staff sourced from) key sector stakeholder constituencies. , The PSC will be integrated with the anticipated ASDS Steering Committee once this has been instituted by the GoK. The ASDSP’s core programmatic instruments, such as the Programme


Document, logical framework, work planning etc. will be subjected to regular review and discussion with interested sector stakeholders.

Any interested development partner is encouraged to provide programmatic and financial contributions thereby strengthening the Programme’s sector-wide foundation. ASDSP also aims to actively enhance inter-programme alignment and harmonization between agricultural development partners and the GoK, and to establish a base for a gradual move towards the adoption of joint sector-wide programming and funding mechanisms in the agricultural sector.

• Demand-driven, stakeholder-led and market-driven needsidentificationand“VCgap-filling”: The primary role and responsibility of the ASDSP is to convene and network existing actors within the sector so as to ensure that these stakeholders define key value chain gaps and priorities, decide on how to coordinate and implement agreed follow-up action, and propose which support may be required from different sources, such as local or national GoK agencies, research institutions or development programmes, including the ASDSP. The Programme’s primary instruments for “bringing stakeholders together” are the County VC Platforms (VCP, comprising members focusing on county-wide VC issues) and the VC Groups (VCGs – vertically or horizontally entities focusing on individual VCs or VC clusters) that the VCPs or other VC specific stakeholders may decide to establish.

Successful VC development is “market-driven and stakeholder-led”. What does this mean?

In the mid-‘90s, the Kenyan milk marketing system was collapsing. Milk marketing in Bomet fell from over 60,000 liters per day to under 5,000 because farmers had no reliable way to get their milk to market.Siongiroi Dairy Farmers Cooperative, with the support of the local LDO and two national NGOs, set up a milk collection and chilling center to collect, test, chill, bulk and market their members’ milk.Within 3 months they were collecting 5,000 liters per day. Today they collect over 30,000 liters per day and deliver on contract to the largest dairies in Kenya.

At the operational level, private sector agents, government agencies, civil society actors and community representatives are considered the primary drivers of value chain selection; gap identification, and; planning, oversight and implementation of interventions aimed at addressing these gaps. Consequently, as a core operational principle, ASDSP and other support agents should only provide “VC gap-filling” support to the extent that identified VC gaps cannot be solved by the primary VC stakeholders themselves.

The Programme’s decentralized governance and implementation structure supports this stakeholder-led intervention approach as well as the national devolution process in the context of the new Constitution.

Successful VC development is “market-driven and stakeholder-led”. What does this mean?

In the mid-‘90s, the Kenyan milk marketing system was collapsing. Milk marketing in Bomet fell from over 60,000 liters per day to under 5,000 because farmers had no reliable way to get their milk to market.

Siongiroi Dairy Farmers Cooperative, with the support of the local LDO and two national NGOs, set up a milk collection and chilling center to collect, test, chill, bulk and market their members’ milk.

Within 3 months they were collecting 5,000 liters per day. Today they collect over 30,000 liters per day and deliver on contract to the largest dairies in Kenya.


• Gender, equity, diversity and socio-economic inclusion: In recognition of the aspirations of the bill of rights of the Constitution of Kenya, 2010, Vision 2030 and the UN declaration on human rights, the ASDSP promotes gender, economic and socio-economic equality and rights in all aspects of its work, and actively supports equal opportunities for participation of vulnerable and marginalized groups in the identification, implementation and review of Programme supported activities. The Programme in this context requires that all staff and partners apply principles of equity, diversity and inclusion to ensure that needs and interests of vulnerable groups, youth, women and men are equally reflected in the identification, planning, implementation and review of Programme activities.

• Transparency and accountability: Transparency is a key pre-requisite for accountability and countering corruption. ASDSP pursues transparency by providing clear equitable and comprehensible information about its interventions and finances, by engaging stakeholders and partners at all levels in decision-making and implementation, and by being open to monitoring and scrutiny by stakeholders and their elected representatives.


3.0 PROGRAMME GOVERNANCE, MANAGEMENT AND IMPLEMENTATION

3.1 Considerations for division of roles and responsibilities between ASDSP and key partners

In order to ensure achievement of ASDSP’s goals and objectives the Programme’s sector-wide intervention strategies should be reflected in the division of functions and responsibilities between the ASDSP and sector stakeholders.

A brief description of the division of management and implementation functions between the many actors comprising the ASDSP “universe” is provided in the sub-sections below. This description is structured as follows:

• Overall ASDSP governance (section 3.2)

• Core ASDSP coordination and management bodies (section 3.3)

• ASDSP supported value chain stakeholder bodies (section 3.4)

• ASDS coordination mechanism entities (section 3.5)

• ASDSP collaborating partners (section 3.6)

3.2 Overall ASDSP governance

As mentioned in section 1.3, the ASDSP is fully integrated into the ASDS coordination mechanism. The existing institutional entities forming part of ASDS coordination mechanism therefore play important roles in relation to the overall governance, management and implementation of the ASDSP.

The Programme-specific governance bodies comprise the ASDSP Steering Committee at the national level and the County Steering Committees at the county level:

3.2.1 ASDSP Steering Committee

The ASDSP SC comprises representatives of sector ministries and the private sector and meets at least four times a year. The SC provides overall policy guidance and oversight of the implementation of the Programme which includes:

• Approval of Programme implementation frameworks, regular progress and financial reports;

• Follow up to monitoring and evaluation activities


• Guidance on the use of programme resources.

• Liaison between the Programme and the ICC and as a channel for linking ASDSP and GoK line ministries.

It is anticipated that the functions of the ASDSP SC will be transferred to the ASDS Steering Committee when this wider sector programme steering entity is established.

3.2.2 ASDS/ASDSP County Steering Committees

At the county level, ASDS and ASDSP governance is spearheaded by the County Steering Committees (CSCs). The CSCs are performing governing and coordinating functions similar to the functions of the ICC and the ASDSP SC at the national level. The CSCs comprise county sector directors, para-statal chiefs, private sector representatives and training and research institutions. The membership of the CSCs will be revisited once the County Governments become operational to ensure the CSCs are fully aligned with the new County structure.

The functions of the CSCs include:

• Provide guidance on national policies;

• Provide direction on efforts to integrate sector programmes in the context of the ASDSP framework as envisaged in the sector-wide approach,

• Act as liaison between the ASDSP and local and national sector stakeholders. In terms of internal Programme governance and oversight, the CSCs consider overall Programme approaches and monitor progress within the counties;

• Review and approve annual work plans and budgets, progress and financial reports;

• Coordinate and follow up on monitoring and evaluation activities, and; provide guidance on the use of program resources.

The membership of the CSCs will be widened to strengthen the representation of private sector, civil society and other VC stakeholder agents to enhance adoption of demand-driven, stakeholder-led and partnership-based intervention strategies.


3.3 ASDSP coordination and management bodies

3.3.1 The ASDSP National Programme Secretariat

The NPS is responsible for the overall management of the ASDSP and coordination and collaboration with sector stakeholders at all levels. The NPS is headed by the Programme Coordinator(PC) who reports to the National Programme Steering Committee (NPSC). The PC is responsible for the day-to-day coordination of the ASDSP and NPS and acts as secretary for the NPSC.

The NPS comprise of a team of the following technical specialists

a. Value Chain Specialist (Component In-Charge for Component 3),

b. Institutional and Capacity Building Specialist (Component In-Charge for Component 1),

c. Partnership Specialist,

d. Natural Resource Management Specialist (Component In-Charge for Component 2),

e. Research and Extension Specialist, and

f. M&E Specialist.

The NPS Specialists facilitate and coordinate the collaboration between the ASDSP and sector stakeholders involved; internal programme management, quality assurance and technical advice.

The NPS performs the following core functions:

• Coordination,liaisonandnetworking: The NPS acts as a coordinating secretariat for the technical implementation of the ASDS. It performs convening and coordinating functions at the operational level similar to those performed by ASCU at the overall policy and sector coordination level. The NPS is therefore the key driver of the effort to integrate the operations of sector line ministries, existing programmes, research and extension agencies and other sector stakeholders in the context of the ASDSP framework. A primary role of the NPS staff is therefore to liaise and network with relevant operational sector stakeholders so as to solicit their contributions towards the implementation of the ASDS in a coordinated and efficient manner. The NPS furthermore facilitates consultative linkages between national level sector institutions and the CSCs/CCUs and local level stakeholders.

• Programmemanagement: The NPS is responsible for the development of


ASDSP work plan and budget, financial management, implementation, reporting and M&E frameworks; overall programme management and monitoring; preparation of regular progress and financial reports, and; provide oversight to CCU

• Implementationsupportandqualityassurance: The NPS Specialists and Technical Advisors provide direct advisory and implementation support to the CCUs and other actors engaged in the implementation of ASDSP. In addition to direct field support from NPS Specialists, the NPS will also establish mechanisms for ongoing rotational technical, networking and process support to the CCUs and county level stakeholders and facilitate inter-county and county-national linkages. This recurrent coaching support will gradually be phased out as the CCUs and local stakeholders get accustomed to the programme’s sector-wide implementation approaches.

• TechnicalsupporttoandcoordinationofnationalVCDinitiatives: The NPS has a critical technical and coordinating role as driver of VCD initiatives that involve the regional, national and international levels. This includes a critical “bridging” role aimed at facilitating interaction and exchange between VC development stakeholders at various levels to ensure that decisions made by local level VC stakeholders are informed by national level priorities and know-how, and vice-versa. It is anticipated that the NPS gradually will evolve into a sector-wide programme secretariat responsible for the coordination and management of multiple sector programmes.

3.3.2 County Coordination Units

The CCUs function as the devolved county level sector coordination bodies in the context of the ASDS coordination mechanism and thus acts as devolved “ASCUs” and county-level operational agents of the ASDSP. The CCUs report to ASCU with regard to their wider sector coordination responsibilities and to the NPS with regard to their ASDSP operational responsibilities. This dual function will contribute positively to ensuring that the CCUs have the convening power needed to solicit the engagement of existing programmes, GoK and para-statal agencies in ASDSP promoted initiatives.

The CCU is led by the Interim County Coordinator and comprises, in addition to administrative support staff, the following four technical officers: a) Value Chain/ Private Sector Collaboration Officer, b) Institutional and Capacity Development Officer, c) Natural Resource Management Officer, and d) Monitoring and Evaluation Officer.

The core CCU functions pertaining to ASDSP operations may be summarized as follows:

• Networking,liaisonandcoordination: The CCUs plays a coordinating and convening role of local GoK agencies, existing programmes, NGOs and national level VCD support agents. This is to ensure that technical and financial support


towards local capacity building and VC development activities prioritized by local VC stakeholder fora is provided in a harmonized and coordinated manner and based on the principle of comparative advantage (i.e. support should be provided by the support agent who is best positioned and resourced to do so).

Technical and financial support provided directly from ASDSP will be complementary, i.e. only provided to the extent that the involved stakeholders cannot resolve identified VC bottlenecks by themselves, or if other VCD support agents do not provide the required support. Any direct ASDSP support should be defined and delivered collaboratively, i.e. in cooperation with other support agents and stakeholders. This coordinating and supporting role of the CCUs will include support to ensuring that support from state agencies sought by local VC stakeholder bodies are included in county and/or decentralized National Government planning or reflected in county or GoK regulations, as needed. This recognizes the independence of the county governments in setting the development agenda, and the consultative spirit between the County and National Governments in policy guidance and resource allocation, as required in the new constitution.

• Operationalpartnering: The CCUs are responsible for entering operational partnering agreements with VC stakeholders who take on efforts to address specific VC gaps and/or VCD support agents for provision of technical and financial support towards these stakeholder-led efforts. Such support agents may include local GoK agencies, para-statal entities, existing programmes, private sector or farmers organizations, larger scale NGOs, etc., These agreements may take the form of partnership-based collaboration agreements or service delivery contracts (section 4). The agreements may govern technical cooperation either with or without financial contributions from the ASDSP or other parties to the agreements.

• ASDSPmanagementandcoordination:The CCUs report to the ASDSP Coordinator in administrative and overall ASDSP programme related matters and to the CSC on county related programme matters. The CCUs act as the secretariat for the CSCs and are responsible for county-level application of ASDSP programme planning, finance management, procurement, implementation supervision, reporting and M&E frameworks. The CCUs also provide management oversight of operational partnership agreements that involves technical and/or financial support from the ASDSP.

• EstablishmentandongoingsupporttolocalVCstakeholderbodies: The CCUs will take a lead role in the initial identification of local VC stakeholders and establishment and induction of local VC stakeholder fora. The CCUs will apply an inclusive and consultative approach in this regard so as to ensure that there is broad consensus among relevant stakeholders with respect to the mandate, incorporation, operational procedures and membership of these county level VC stakeholder fora. This will entail consultations with all relevant VC stakeholder


constituencies and VCD support agents. The CCUs will provide facilitation support to the efforts of the local VC stakeholder fora to identify prioritized value chains, identify service bottlenecks within these value chains and to define, plan and implement corresponding VCD action by the VC stakeholder fora or clusters of individual members. This support should be demand-driven, i.e. the exact scope and nature of this support will be determined on the basis of priorities expressed by the specific VC stakeholder bodies. It should also be stakeholder-led, i.e. emphasis should be put on ensuring that local VC gaps are addressed primarily through cooperation between VC stakeholders and the VCF with support from local GoK agencies, existing programmes, national agencies and the ASDSP on as-needed basis only.

3.4 ASDSP supported value chain stakeholder fora

ASDSP supported VC stakeholder bodies constitute the core implementing drivers of VC development in the context of the Programme. The Programme will support the following categories of local VC stakeholder bodies:

3.4.1 Value Chain Groups (VCG)

The essential characteristic of a VCG is that its members have a common interest in the production and marketing of a particular commodity, e.g. input providers, producers, traders, processing entities, consumers, etc. A VCG is, by definition, a group engaged in activities ranging from production to marketing of a particular commodity, i.e. engaged in commercial transactions either upstream or downstream in a value chain.

VCGs may be brought together by encouraging existing and new CIGs (discussed further in sub-section 3.4.2) to join production and marketing VCGs in order to build their collective capacity to participate effectively in the value chain. This will reduce marketing costs, attract market players through bulking of products, and improve their bargaining power.

A VCG can be an informal group, a locally or nationally registered group, a cooperative or a Limited Liability Company. In many cases, the formation of such entities may be more effective if they comprise members across several counties or if county level VCGs are linked up in multi-county VCG associations or federations.

Existing VCGs will be supported wherever possible, in collaboration with any existing programmes that may support these groups. Where such VCGs do not exist, formation of new groups will be facilitated by the CCUs through VC Forum meetings or similar stakeholder meetings with VC constituencies who may have an interest in forming VCGs. The VC Working Groups, the ASDSP Specialists’ Networks and the NPS will assist this process in cases where the VCGs will comprise members from several counties.

The core functions of the VCGs include the following:


• Representation of VCG member interests: Building on the collective strength of their members, the VCGs may engage in bargaining on members’ behalf with other segments in the value chains and actors affecting the interests of their members. This include advocacy with local GoK agencies to ensure that members’ interests are reflected in local planning and service delivery.

• Linkingofmemberstootheractorsinthevaluechainandsupportproviders:This include; linking producers with processors, exporters or large marketing outlets within or outside the county; linking members to their peers in other counties, and; linking members to service and support providers such as extension services, training providers, development programmes, CSO agents, etc.

• Knowledgetransferandmembercapacitybuilding: The VCGs play an important role as a platform for assessment of technical and other capacities of CIGs and individual members. VCGs also act as channels of capacity building support from VCD support programmes, including from the ASDSP.

3.4.2 Common Interest Groups (CIG)

ASDSP will continue supporting Common Interest Groups (CIGs) because these are the foundation organizations for producer-focused VCGs. The ASDSP will enter operational partnerships with stakeholders specialized in formation of and support to CIGs. CIG support is particularly important as a means to linking marginalized and vulnerable groups in value chains.

3.4.3 Value Chain Platforms (VCP)

The defining characteristic of a VCP is that all participants have a common interest in activities that support a particular value chain. A VCP is VC specific, bringing together stakeholders engaged in a single value chain either at the county or national level. Thus a value chain platform would comprise representatives of producers, processors, traders, wholesalers, retailers, researchers, microfinance, NGOs, etc. A VCP may include stakeholders involved in the production of related commodities, e.g. stakeholders engaged in milk production and forage crop production may both be members of a VCP as they have important common interests.

The establishment and functioning of VCPs will be supported by CCUs and/or other VC support agents at the county level. VCPs may cover more than one county, or become national in scope, depending on the needs and objectives of the stakeholders who form the platform.

Since VCPs constitute stakeholder body for the value chain in its entirety, they are well positioned as a platforms for negotiating and promoting efficiencies that require broader


agreement and cooperation along the value chain (e.g. quality standards); and for addressing disputes between the various value chain constituencies. While at times this can be problematic because the interests of various actors may compete or conflict, it will ultimately contribute towards enhancing efficiencies (e.g. with respect to input supply, transport for market access, storage facilities, etc.) and consequently generate benefits to the various VC constituencies across the value chain. The core functions of the VCPs include:

• VC gap identification, goal setting and dispute mediation: The VCPs will play a pivotal role in the identification of efficiency gaps along the VC and definition of common goals and strategies for VC development. This may be achieved through conduct of facilitated VCP workshops and more focused consultations between stakeholders affected by specific VC gaps. If managed well, these processes will contribute to mediation of disputes and identification of common interests between the various VC stakeholders represented in the VCF. Collaborative VC gap analysis and goal setting may also contribute to ensuring that VCs are environmentally resilient and socially inclusive.

• PrioritizationandimplementationofactivitiesaddressingVCgaps: Whenever possible, actions to address VC efficiency gaps should be prioritized, implemented and financed as a collaborative effort between the directly affected VC stakeholders. If this is not possible, the VCPs should identify which support agents (e.g. local state agencies, para-statals, existing programmes, NGOs, the ASDSP) are best positioned to provide the necessary support, and then approach these agents to agree on provision of the support.

• Platformforknowledgetransferandprovisionofembeddedservices: VCPs will play a crucial role in facilitating the transfer of knowledge between stakeholders in the VC and consequently for effective knowledge upgrading along the chain. Furthermore, if managed sensibly and in transparent manner, VCPs may provide a platform for lead firms to supply embedded services to VC actors to ensure consistent quality and quantity of end products. Such services may include credit working capital, farm inputs, etc.

3.4.4 Value Chain Fora (VCF)

VCFs are defined as stakeholder meetings where many different value chains are represented by a wide spectrum of value chain stakeholders and VCD support agents. At the county level, an initial task will be to prioritize the value chains for ASDSP support. A limited number of VCs will be prioritized, therefore, representatives of all VCs active in the county should be included in this process to anhance inclusiveness and transparency.

Regional or national VCFs may also be convened to address general issues related to value chains and agricultural sector growth in the context of the ASDSP. National VCF


will bring together representatives of all value chains and affiliated stakeholders at the national level on an annual basis. The forums will bring together government officials and national and international players to discuss of sector wide issues of importance for VCD e.g policy, economic and social issues, environment, research and extension, among others.

3.4.5 Cross-county Value Chain Platforms

Sustainable value chain development will require vertical interaction between county level stakeholders and value chain actors at the regional and national level. Similarly, establishment of horizontal linkages between county level value chain stakeholders may be desirable. The NPS in collaboration with CCUs and interested national, regional and county level stakeholders will support the formation of cross-county VCPs to address such trans-boundary VCD issues. These working groups will establish contacts between county level VC stakeholders and VC stakeholders and expert service providers at the national level. Working group meetings will be held at least quarterly, and will serve as a broader stakeholder forum for discussion of VC issues and development strategies.

3.5 ASDS Coordination Institutions

The ASDS coordination mechanism bodies play a variety of functions in relation to the governance, management and implementation of the ASDSP. They include the following:

3.5.1 Inter-Ministerial Coordinating Committee (ICC)

The ICC comprises of agriculture sector permanent secretaries and other co-opted members and is the overall steering body of the ASDS coordination mechanism. The ICC sets the overall parameters for the implementation of ASDSP by defining the overall sector policy, institutional and resource environment in which the Programme operates.

3.5.2 Technical Committee (TC)

The TC is an important forum for discussing ASDSP progress and experiences with key sector stakeholders and set out technical directions and recommendations for the Programme. The TC is also facilitate coordination between the ASDSP and other key actors and programmes. TC members include heads of departments, development partners, umbrella farmer organizations, private sector representatives and other co-opted members.


3.5.3 Agricultural Sector Coordination Unit (ASCU)

ASCU is the secretariat of the ICC, TC and other core ASDS bodies. Its role include; initiating, coordinating and supporting efforts to promote a sector-wide approach to the management of the agricultural sector in the context of the ASDS.

The functional relationship between ASCU and the ASDSP can be characterized as a symbiotic relationship. ASCU on the one side plays the role of establishing a conducive enabling environment for ASDSP operations (ASCU advices on sector-wide policy, initiates studies for policy formulation, facilitate coordination between sector ministries, supports the functioning of ASDS coordination mechanism bodies, promotes alignment and harmonization of inputs from development partners towards the sector, etc), and on the other hand is supported in doing so by the Programme (as the ASDSP provides technical and financial support to ASCU to perform various sector coordination functions).

At the county level, the dual role of CCUs as the devolved sector coordination entities under the ASDS coordination mechanism and as local level ASDSP coordination entities will help the Programme to overcome stakeholder resistance.

3.5.4Thematic Working Groups (TWG)

The TWGs offer advisory services on research and extension, agribusiness and finance, natural resource management, food and nutrition security, gender and cross-cutting issues as well as legal, regulatory and institutional reform and similar issues of sector-wide importance. The TWGs therefore play an important role for exchange of technical and operational experience between ASDSP actors at all levels and TWG member institutions.


4.0 STRATEGY FOR INTEGRATING PROGRAMMES AND ENGAGING OPERATIONAL PARTNERS

4.1 Overall considerations

ASDSP is a nation-wide and sector-wide programme. The sector is characterized by the presence of diverse programmes supported by the GoK and development partners. Effective association with existing programmes under the overall ASDSP framework and entry into operational partnerships with programmes and other VC support agents at the implementation level is a critical pre-requisite for the Programme’s success.

ASDSPis“sector-wide”andsupportsVCD.Whyisprogrammeintegrationandpartnershipsimportantinthiscontext?

There are ten agricultural sector ministries in Kenya. Agriculture sector affects virtually every aspect of the wider economy e.g. land, environment, trade and transportation,fFinancial services, , value-added processing ,research and development, public health among others.

This extensive integration of agriculture into every aspect of the wider economy is reflected in agricultural value chains. ASDSP will work to integrate the efforts of all relevant sector ministries, programmes and private sector agents and civil society to support agricultural sector growth.

Acknowledging the above “multi-programme reality”, ASDSP will apply an incremental and peer-based approach to integration of programmes and entry of operational partnerships. As current sector programmes are phased-out, it is hoped that development partners will increasingly provide direct funding support to the ASDSP under a joint funding arrangement, rather than initiating new independent programmes. This would gradually enhance the ASDSP’s status as the core ASDS sector-wide programme.

ASDSP’s integrated and partnership-based intervention strategy has important implications for the Programme’s operational approaches. ASDSP will operate collaboratively and this will have the following operational implications, among others:

• ASDSP programme tools, including the programme document, the logical framework and the five-year strategic plan, will be subjected to review by key sector stakeholders so as to ensure wide buy-in of the Programme;

• Implementation of outputs defined in the ASDSP logical framework should always be pursued collaboratively. This implies that ASDSP interventions will always be defined in consultation with other relevant actors, and that ASDSP will base its interventions on existing initiatives and/or implementation frameworks. In this context the ASDSP will apply the principle of comparative advantage, i.e. any intervention should be led by the development actor who is in the best position to do so, with other relevant development agents providing support in accordance

ASDSP is “sector-wide” and supports VCD. Why is programme integration and partnerships important in this context?

There are ten agricultural sector ministries in Kenya. Agriculture sector affects virtually every aspect of the wider economy e.g. land, environment, trade and transportation,fFinancial services, , value-added processing ,research and development, public health among others.

This extensive integration of agriculture into every aspect of the wider economy is reflected in agricultural value chains. ASDSP will work to integrate the efforts of all relevant sector ministries, programmes and private sector agents and civil society to support agricultural sector growth.


with agreed division of work. Consequently, the ASDSP will only engage in “direct implementation” to the extent that other relevant development agents agree that the Programme is in the best position to do so, or if no other development actors are present or interested in pursuing the concerned intervention.

• The collaborative and partnership-based implementation approach means that the depth and focus of ASDSP VCD support to a particular county will be determined by the socio-economic and VC specific characteristics of the county and the extent to which other VCD support agents are present in the county. For instance, the focus and volume of ASDSP support, and the general programming approach taken by the ASDSP, will be different in a county where a major VCD support programme is already working, compared to a county with limited VCD support provided by minor VCD support agents.

• The ASDSP will apply a consultative and flexible approach to work planning and budgeting. This is to ensure that that the definition and implementation of individual interventions are pursued in a collaborative and partnership-based manner, based on agreed division of work and financial inputs between the ASDSP and other development agents at the national and county levels.

4.2 Integrating core sector programmes

As mentioned in section 4.1, the agricultural sector is characterized by the presence of a vast number of programmes. Since the programmes are bound by existing agreements and procedures, ASDSP will apply an incremental approach to integration of sector programmes. This will enable the ASDSP and each interested programme to determine the focus, depth and scope of their integration based on an analysis of what is realistic and desirable, basic agreements and procedures.

The effort to pursue programme integration will primarily be focused on programmes with a specific programmatic focus on the two main strategic thrusts of the strategy, i.e. increased commercialization and competitiveness of agriculture and sound management of key factors of production. ASDSP will prioritize integration with programmes whose focus matches its three main programmatic areas of i.e. VCD, environmental resilience and social inclusion linked to VCD, and sector-wide coordination support.

The following principles will govern ASDSP’s programme integration effort:

• Commitment to maximizing combined programme results and impact through efficient, effective and relevant coordinated action; coordination must be result-oriented, demand-driven and aimed at creating concrete synergies

• Mutual respect for peers’ effort and level of ”integration readiness”

• Readiness to divide programme roles, responsibilities, focus areas and geo-


• Establishment of common consultant pool/database

• Conduct of joint technical consultancies

Operational/implementation level:

• Commitment to cooperate with the newly established ASCU/ASDSP County Coordination Units as a key county level operational institution

The ASDSP, interested sector programmes and involved GoK implementing agencies and development partners will formalize agreed programme integration through entry of inter-programme Memoranda of Understanding (MoU) or similar formal agreements. Such MoUs may either be entered between the ASDSP and individual interested programmes or an “open” MoU could be formulated that would allow multiple programmes to join as they find it in their interest to do so.

4.3 Operational partnerships

The following strategic directions will be applied for ASDSP’s partnering effort:

• ASDSP will enter into a variety of partnership arrangements with different types of partner organizations active in VCD, to ensure environmental resilience and social inclusion in VCD, and sector-wide coordination.

• For each partnership, ASDSP will apply partnering tools which are tailor-made to enhance efficient operations of the partnership, and which support the mandates of participating partners

ASDSPwillbe“Partnership-based.”Whatdoesthismean?There are various development partners involved in VC development activities. For

example, there are multi-lateral donor projects, bi-lateral donor projects, and private donor projects in the dairy sector. If CCUs identify dairy as a priority VC in their county, it would be

inefficient for ASDSP to design and implement a dairy value chain.

Instead, ASDSP will call upon the expertise of the existing programs to assist local stakeholders with value chain analysis, identification of gaps and bottlenecks, strategizing, and development of a stakeholder-led Action Plan to address the needs of the local dairy

value chain.

• ASDSP will act as a broker to foster coordination and networking between different categories of partners, so as to create synergies and enhance the quality and outreach of VC and other relevant services.

ASDSP will be “Partnership-based.” What does this mean?

There are various development partners involved in VC development activities. For

example, there are multi-lateral donor projects, bi-lateral donor projects, and private

donor projects in the dairy sector. If CCUs identify dairy as a priority VC in their county,

it would be inefficient for ASDSP to design and implement a dairy value chain.

Instead, ASDSP will call upon the expertise of the existing programs to assist local stakeholders with value chain analysis, identification of gaps and bottlenecks,

strategizing, and development of a stakeholder-led Action Plan to address the

needs of the local dairy value chain.

graphical coverage based on an analysis of respective comparative strengths and weaknesses and existing commitments on the part of participating programmes

• Transparency and openness

• Readiness to allocate resources to cover the actual costs (time, human resources, finances) required to pursue efficient programme integration

To be effective and sustainable, the integration effort must be driven by the self-interest of programmes to maximize efficiencies in outreach of the delivery of programme outputs, effects and impacts.

The following functional areas of integration and coordination will be considered by the ASDSP and interested programmes:

Governance level:

• Establishment of joint or harmonized steering structures (e.g. PSC)

Management level:

• Harmonization/integration of programme logframes

• Harmonization of work planning procedures and joint preparation of programme/annual work plans

• Harmonization of programme reporting/joint reporting

• Harmonization of cost norms

• Conduct of joint programme reviews

• Agreement on division of work with respect to technical intervention areas and geographical coverage

Technical level:

• Exchange of technical documents and experience

• Harmonization of existing technical tools, methodologies and implementation approaches/joint development of new methodologies and tools (e.g. joint preparation of a national VCD guideline)


• Establishment of common consultant pool/database

• Conduct of joint technical consultancies

Operational/implementation level:

• Commitment to cooperate with the newly established ASCU/ASDSP County Coordination Units as a key county level operational institution

The ASDSP, interested sector programmes and involved GoK implementing agencies and development partners will formalize agreed programme integration through entry of inter-programme Memoranda of Understanding (MoU) or similar formal agreements. Such MoUs may either be entered between the ASDSP and individual interested programmes or an “open” MoU could be formulated that would allow multiple programmes to join as they find it in their interest to do so.

4.3 Operational partnerships

The following strategic directions will be applied for ASDSP’s partnering effort:

• ASDSP will enter into a variety of partnership arrangements with different types of partner organizations active in VCD, to ensure environmental resilience and social inclusion in VCD, and sector-wide coordination.

• For each partnership, ASDSP will apply partnering tools which are tailor-made to enhance efficient operations of the partnership, and which support the mandates of participating partners

ASDSPwillbe“Partnership-based.”Whatdoesthismean?There are various development partners involved in VC development activities. For

example, there are multi-lateral donor projects, bi-lateral donor projects, and private donor projects in the dairy sector. If CCUs identify dairy as a priority VC in their county, it would be

inefficient for ASDSP to design and implement a dairy value chain.

Instead, ASDSP will call upon the expertise of the existing programs to assist local stakeholders with value chain analysis, identification of gaps and bottlenecks, strategizing, and development of a stakeholder-led Action Plan to address the needs of the local dairy

value chain.

• ASDSP will act as a broker to foster coordination and networking between different categories of partners, so as to create synergies and enhance the quality and outreach of VC and other relevant services.

ASDSP will be “Partnership-based.” What does this mean?

There are various development partners involved in VC development activities. For

example, there are multi-lateral donor projects, bi-lateral donor projects, and private

donor projects in the dairy sector. If CCUs identify dairy as a priority VC in their county,

it would be inefficient for ASDSP to design and implement a dairy value chain.

Instead, ASDSP will call upon the expertise of the existing programs to assist local stakeholders with value chain analysis, identification of gaps and bottlenecks,

strategizing, and development of a stakeholder-led Action Plan to address the

needs of the local dairy value chain.


The following guiding principles apply for ASDSP partnerships:

• Be need-based, flexible and open-ended, with areas of cooperation determined on the basis of mutual interest and respect for the mandate and comparative advantage of each party.

• Adhere to principles of sustainability, good governance and social and economic equity, including gender.

• Support networking, consultation, coordination and transparency to enhance efficiencies and avoid duplication.

• Support efficiency and effectiveness of value chain research, extension, regulation and service delivery based on respective comparative advantages.


Relevant categories of potential ASDSP partners include the following: Partner category Primary role in value chain service provision

Sector ministries agencies and programs

• Facilitate sound sector governance, regulation, planning and monitoring

Sector programmes supported by GoK and international development partners

• Support institutional innovation and provide capacity building support

• Enhance technical innovation • Provide extension and other production, value-adding

and social servicesPrivate production input providers • Sell inputs and services demanded by local farmers for

production and value-adding purposes. • Provide extension advise

Traders and private marketing companies

• Marketing• Training and extension

Post harvest service providers • Storage and processing• Training and extension

CBOs and cooperatives • Deliver development or production/commercial services to community-based organizations or members

• Represent the interest of members or constituenciesMedium to large scale NGOs • Strengthen capacity of local change agents and

service providers (institutional and community-based) through partnership-based program investments

• Deliver development services• Represent the interest of constituencies

International NGOs • Strengthen capacity of local change agents and service providers (institutional and community-based) through partnership-based program investments

• Support application of best international development practices

National and international research and training institutes

• Link research knowledge to extension and service provision

• Disseminate research and other knowledge to practitioners and service providers through technical and other training

Networks of local / national / international actors

• Act as platforms/instruments for technical exchange, promotion of best practices and innovations, coordination, advocacy, etc.


The following are the primary ASDSP partnering approaches and modalities:Partnering approach Delivery modality and illustrative examples

Programmatic and/or financial collaboration to implement agreed interventions

• MoU with individual or multiple partners• Example 1: Agreement with existing large scale VCD

programme about division of work between the programme and ASDSP. ASDSP will work through VC stakeholder bodies established by the other programme, or division of work with regard to which VCs will be supported by ASDSP and the programme, respectively

• Example 2: Agreement with other key sector programmes and a national hosting agency to jointly establish and maintain an inventory of NRM programmes

Programmatic and financial support from ASDSP towards partner programs in support of agreed interventions

• MoU with individual or multiple partners • Provided directly by ASDSP or through intermediary

organizations• Example 1: Agreement between ASDSP and a large NGO

with an existing agricultural CIG programme for financial support from ASDSP to expand establishment of CIGs for new commodities

Collaboration aimed at establishing partner organizations to act as an intermediary organization

• MoU with individual partners • Example: Agreement between ASDSP and local NGOs

with existing agricultural CIG programmes to establish better linkages between CIGs supported by the NGO and VC stakeholder bodies supported by ASDSP. This could include provision of technical support from ASDSP to enable the NGOs perform this intermediary role.

Build partner’s organizational, technical and/or program management capacity (e.g. farmer organization)

• MoU with individual partners • With multiple partners provided by ASDSP or through

intermediary organizations • Example: Agreement on technical support from ASDSP to

local producer association to strengthen its capacity to provide advisory services to its members


Support to networks for technical cooperation, information exchange, advocacy, etc.

• With multiple partners and agencies who participate in networks

• With individual partners acting as network managers• Example: ASDSP technical or financial support to

strengthen the performance of existing networks or support to establishment of new networks

Advocacy for creation of an enabling legal and political context

• In collaboration with individual partners or groups of partners • Example: Agreement between ASDSP and research

institutions to provide technical analysis to inform the preparation of new agriculture related strategy

Joint studies and research • In collaboration with individual partners or groups of partners • Example: Agreement between KARI and an international

NGO to research issues related to access by vulnerable groups to meteorological forecasts and related agricultural extension advise

These partnering approaches/instruments are mutually supportive and complementary, and may be applied in different combinations.Specific partnering approaches, tools and mechanisms will be provided in the ASDSP Partnering Guideline. This will include templates for MoUs for different types of partnerships with different types of partners and specific technical partnering tools (e.g. how-to-do guidelines for advocacy collaboration, network support, etc.).


5.0 COMPONENT LEVEL ACTIVITY IMPLEMENTATION

5.1 Component 1: Sector-wide coordination

Component 1 supports an inclusive institutional framework for realizing the ASDS through support to wider sector coordination and harmonisation, creation of an enabling institutional environment for the implementation of ASDSP. The specific implementation processes and division of work pertaining to Component 1 sub-components are detailed in the following sub-sections.

5.1.1 Improvement of sector coordination and joint programming

This sub-component aims to analyze and strengthen functioning of ASDS coordination mechanism and strengthen the application of effective sector-wide approaches; establish and operationalize ASDSP national coordinating structures, and; establish and operationalize ASCU/ASDSP county level coordinating structures.

ASCU will take the lead in the efforts to analyze and strengthen functioning of ASDS coordination mechanism and strengthen the application of effective sector-wide approaches, with support provided by the Sector Coordination Advisor (SCA). ASDSP also provides financial support to targeted sector coordination initiatives as well as technical assistance as agreed with ASCU.

As regards establishment and operationalization of ASDSP national and county level coordinating structures, ASCU was responsible for initial action to establish the NPS, the ASDSP Steering Committee, the CSCs and the CCUs during the ASDSP inception period. During the ASDSP implementation phase the NPS is responsible for further consolidation and operationalization of these bodies, with support from ASCU as needed.

5.1.2 Strengthening of institutional and organizational capacity of key actors

The main focus for this sub-component is to develop institutional and organizational capacity to pursue effective sector-wide coordination and to implement the ASDSP. The NPS will work with ASCU to identify and address capacity building needs pertaining to wider sector coordination, and ensure appropriate coordination and alignment with other sector-wide capacity building initiatives. The NPS will take the lead in capacity building of ASDSP managing and implementing bodies at the national and local levels.


5.1.3 Establishment of linkages between key sector stakeholders

The purpose of this sub-component is to strengthen and develop platforms for coordination between key sector programmes and other stakeholders operating at the sector level; and to improve agricultural production and food security by creating networks and platforms for sharing information among research, extension and value chain actors.

ASCU will take the lead in the implementation of activities aimed at enhancing coordination between key sector-level programmes and other stakeholders. The NPS will actively support this effort by entering into inter-programme coordination agreements and engaging the TWGs in ASDSP activities.

ASDSP will foster the creation of networks and platforms for sharing of research/extension information among value chain actors. This is aimed at ensuring that appropriate and relevant technologies for production, processing, enhanced food security, and market access are available to, and used by, the target groups. This will ensure that research duplication is reduced thus saving valuable resources. The NPS will take the lead in implementation of these activities with ASCU providing support to ensure that this effort adhere to the national research and extension strategies.

5.1.4 Establishment of sector-wide information system

This sub-component will enhance sector information and communication systems through support to establishment of sector-wide M&E and information/communication systems and development of the ASDSP M&E system (linked to wider sector M&E/MIS systems). ASCU will take the lead in the implementation of wider sector M&E/MIS initiatives with technical and financial support provided from the ASDSP while the NPS will take the lead in the development of the ASDSP M&E system.

5.1.5 Preparation and roll-out of sector-wide policies, strategies and regulations

This sub-component aims to support the establishment of an enabling policy environment for environmentally sustainable and socially inclusive value chain development and to sensitize national stakeholders in this regard.

The ASDSP will provide technical and financial support towards identification and roll-out of policies, strategies and regulations of relevance to ASDSP intervention areas. The process of facilitating the promulgation of the policies will be the primary responsibility of ASCU. Efforts to sensitize national stakeholders to environmentally sustainable and socially inclusive VCD will be pursued jointly by ASCU and the NPS.


5.2 Component 2: Strengthening environmental resilience and social inclusion of VCs

This Component supports efforts to strengthen priority value chains that will be identified in Component 3. This component aims to ensure that the value chains are environmentally sound and resilient to climate fluctuations, and that women, youth and economically and socially vulnerable groups have access to and participate effectively in and benefit from the improved value chains.

5.2.1 Awareness Creation of environmental sustainability, NRM and climate change

ASDSP will strive to assess the level of awareness of the value chain actors on natural resources management and climate change issues. This assessment will be done in a participatory manner with special emphasis on the inclusion of the most vulnerable members of the society. This assessment will include mapping of all actors in the area of climate change and natural resources management at the county and national levels. This will allow the Programme to benefit from experiences of other players, guard against duplication of effort and at the same time forge partnerships and networks for the benefit of the value chain actors.

Further, the constraints to weather information access and use will be identified and action plans to counter these constraints will be developed.

ASDSP together with the stakeholders will also develop user friendly guidelines to address environmental sustainability and climate change adaptation. The recommendations and actions provided for assisting the value chain actors in resource use and adaptation to the effects of climate change will be applied uniformly.

5.2.2 Strengthen the environmental resilience of the prioritized value chains

“The development of capabilities to resist and rebound from shocks generated by natural hazards should be a core aspect of how poverty is alleviated (Ian Christoplos, 2012 insert page number and title of book)”. In order to strengthen the capacity of the value chain actors to continue with their livelihoods even after environmental hazards, the following will be done:

• Enhance access to weather information by all value chain actors, particularly the vulnerable. The weather information will be sourced and transmitted through the National Farmers Information Service (NAFIS) for wider coverage.

• Community based channels will also be supported to improve transmission of the weather information.


• The local knowledge on weather patterns and copping strategies will be documented and disseminated through appropriate channels including local vernacular stations.

The participation of vulnerable groups will be given special attention in this context.

5.2.2 Gender gaps in application of NRM information and technologies

For effective participation and benefit of all the value chain actors their capacity will be developed. Emphasis will be placed on group approaches so that as many beneficiaries as possible are reached. Resource users will be encouraged to form groups or associations where none exist and the capacity of the existing groups will be improved.

Smaller CIGs targeting the vulnerable will be developed to a level where they can effectively take part in the identified value chains. Participatory consultative fora will be used to get the views of the resource users groups and they will be trained on group dynamics. Income generating alternative livelihoods will be supported. The value chain actors will be linked to research institutions in a participatory manner.

5.2.3 Economic and social inclusion of women, youth and vulnerable groups

Regulations and policies governing climate change adaptation, insurance, social protection and their linkage to value chain development will be assessed. Production service providers will be identified and linked to the value chains. It is also envisaged that the value chains players will demand insurance services once they are sensitized.

Participatory livelihood analysis tools will be used to identify the vulnerable groups. The groups will be linked to social protection services in order to uplift their living standards to a level where they can meaningfully participate in value chain activities. This will be achieved through the establishment of functioning community groups. All these will be done through community consultative fora so that the views of the majority of the prospective beneficiaries are brought on board.

5.3 Component 3: Value chain development

This component will play a key role in supporting the commercialization and market orientation of smallholder production through the following sub components:

• Analysis and upgrading of value chains, including increasing equitable market access

• Improving equitable access to financial services

• Strengthening of value chain organizations


• Identification of innovative value chains for promotion

While undertaking these activities, principles of non-discrimination and equality will be maintained by ensuring that constraints that hinder participation by people based on gender, age and vulnerability are addressed.

At the national level, the NPS Value Chain Specialist (VCS) is responsible for sector level stakeholder coordination and partnering pertaining to the component; programme oversight and management of component activities at the national level, and; technical support, backstopping, and training to CCU staff for implementation of VC programme activities at the county level.

The Value Chain Specialist will coordinate the following:

• Development of component-specific operational manuals and training programs for CCU staff,

• Development of the VC data management system.

• Development of training and awareness programs for Value Chain Groups (VCGs) on business organization, governance, and management, and on uses of financial services

• Facilitate access to credit to VCGs through innovative credit facility models such as the credit guarantee scheme and other inclusive agricultural financial services

• Provide support to ASCU for the development of innovative products and services such as crop and livestock insurance

• Support the development of a database of ideas for new VCs and analysis and promotion of programmes to support them.

• Promotion of the national agribusiness strategy

• Coordination of efforts to integrate county level programs and facilitate networking and consensus building across counties

A training program to support the CCUs will be developed to correspond with the sequence of events required to launch the VC development component, e.g., stakeholder identification and mapping, stakeholder analysis, VC selection criteria, facilitating stakeholder forum meetings, constituting stakeholder VC platforms, etc.

Each CCU comprises a Value Chain Officer (VCO) who will focus on the following;

• Identification of VC stakeholders and coordinate stakeholder analysis in the county.

• Support stakeholder-led prioritization of VCs


• Coordinate VC mapping and analysis for prioritized VCs.

• Support the development of VC stakeholder platforms

• Facilitate linkages and communication among VC actors in priority VCs

• Identify training and capacity building needs and arrange for TA from secondary sources

In the long run VCOs will become Business Advisors to VCGs, and provide interrelated services between specialized Business Development Services (BDS) providers and value chain actors.

The CCUs are designed to support stakeholder initiatives in collaboration with existing VC development programmes managed by stakeholders. CCUs will encourage established VC programmes to take a leadership role in the VCPs when they have demonstrated capabilities in a specific value chain or set of VC development skills. Whenever possible, the relationship between ASDSP and other VC development programmes will be formalized through Memoranda of Understanding (MOU) that will spell out partnerships arrangements.

The extent to which the ASDSP or other VCD programmes will take lead in pursuing interventions will depend on the composition of the “VCD support community” in each county and the comparative advantage of each VCD Programme. Consequently, in counties where one of several major VCD programmes are already present; the direct operational role of the ASDSP may be limited, and the VC stakeholder bodies for the prioritization of and provision of support to value chains.

In counties with a broad representation of smaller VCD programmes, ASDSP may take a more dominant convening leadership role and coordinate VCD support in partnerships with VCD support agents. In counties with little or scattered VCD support, the ASDSP is likely to take a more predominant direct operational role.

5.3.1 Upgrade value chains for employment, food security and income generation

The NPS will provide guidelines to enable the CCU teams to identify and assess stakeholders in their respective counties. County VC Forums (VCF) will be broad-based to include all important VCs and stakeholders. The CCUs in collaboration with other locally represented VCD support programmes will lead a criteria-based evaluation by stakeholders at a VCF to prioritize 3 VCs for initial programme focus. The number of prioritized VCs may be increased over time if resources and stakeholder engagement permit. The CCU will ensure that the programme’s core values of income generation, job creation, food security, and equity are maintained.


Based on prioritized values chains, the CCUs will then support the formation of VC Platforms comprised of relevant stakeholders in one of the prioritized VCs to undertake mapping and preliminary analysis of that VC.

Supported by the ASDSP, other VCD programmes and the CCUs, the VCPs will take a lead role in VC mapping. The VCPs will also spearhead VC analysis, identification of issues, gaps and bottlenecks, and development of strategies and Action Plans to promote their VC. VC analysis will mainstream equity, gender, NRM, and other cross-cutting issues to ensure that VC action plans will consider these core goals of the ASDSP.

What is VC Mapping?VC mapping is a graphic representation of all the actors and their interrelationships in a VC. It is an effective tool for introduction of value chain concepts, since it is easily grasped and

highly intuitive. Mapping helps to identify all the stakeholders in a value chain, and can also be used to clarify relative influence and economic power of various players along the chain.

VC Action Plans must be stakeholder-led, since implementation of strategies to improve the functioning of priority VCs rests primarily with stakeholders. The CCUs, ASDSP and other programmes will act as facilitators to VCPs to ensure focused discussions and conclusions, and assist stakeholders in strategizing and drawing up Action Plans. However, the implementation of Action Plans will rest primarily with the stakeholders with occasional and very specific support from ASDSP and its implementing partners.

As a facilitating programme with a strong emphasis on inclusiveness and collaboration, ASDSP will seek to identify all VCD programmes during CCU start-up and the VC and stakeholder mapping exercises.

The CCU will coordinate baseline surveys for prioritized value chains in order to provide useful bench marks (quantitative and qualitative) that will help to assess the programme’s outcomes. The NPS will provide technical support to the CCUs for the development and implementation of data collection tools.

The NPS will commission a study to determine user requirements for a VC data management system. Based on the study findings, a VC specific site (micro site) operating within the larger ASDSP website will provide information on value chains supported by the programme. Based on user requirements, the NPS will develop a data collection tool for the CCU that will provide initial information and periodic updates for the website. It is envisaged that the database could include user-relevant information from farmer and other stakeholders. The database will be aligned with similar existing databases, as needed.

What is VC Mapping?

VC mapping is a graphic representation of all the actors and their interrelationships in a VC. It is an effective tool for introduction of value chain concepts, since it is easily grasped and highly intuitive. Mapping helps to identify

all the stakeholders in a value chain, and can also be used to clarify relative influence and economic power of various players along the

chain.

.


Stakeholder-led Action Plans

As a facilitator of stakeholder-led solutions to VC bottlenecks, ASDSP and its programme partners will develop an extensive network of agricultural resource contacts. E.g poultry producers may identify the need for day-old chicks with improved genetics to increase weight gain and egg production. ASDSP can connect them to the Poultry Unit at KARI Naivasha. The health of their birds will be a critical factor in productivity and income. ASDSP can partner with animal health service providers to provide technical advice on vaccination and facilitate purchase of vaccines. Ultimately, the stakeholders must do the necessary planning and buy chicks, purchase vaccines, treat their birds, and buy quality poultry feed. Horizontal linkages forged with ASDSP support among poultry producers will make these purchases more economical.

5.3.2 Increase market access by improving infrastructure and other trade conditions

VC analysis undertaken by VCPs will provide the basis for the identification of institutional, financial, legal and physical barriers that hinder equitable access to markets, with particular attention to issues confronting women, youth, and vulnerable groups. These will be collated into Action Plans presented at the quarterly VC Forum meetings. In addition to direct stakeholder engagement, Action Plan interventions may be achieved through ASDSP funding, in partnership with various local or national development organizations, or through Public Private Partnerships (PPPs).

Based on priorities established by VCFs and VCPs, NPS and CCU in collaboration with other VCD support programmes will undertake studies and deliver training programmes to sensitize VC actors to quality issues, standards and grades, and health and public safety concerns relating to VC products and processes.

CCU VC intervention strategies will include training in post-harvest handling and storage in priority VCs to; reduce post-harvest losses; ensure commodity quality; and create investment opportunities in post-harvest handling and storage facilities, warehouse receipt credit programs, transport, marketing, value-added processing and export.

The CCU will work to incorporate stakeholder identified infrastructure needs into the county development planning agenda and to secure funding for such investments through PPPs, with support from NPS.


5.3.3 Improving access to financial services and crop and livestock insurance

A variety of financial services institutions are operational across Kenya providing services in rural areas to those who are not served by the conventional banking system. The VC development component will adopt a variety of strategies to facilitate access to financial services for all those engaged in VC activities, paying particular attention to women, youth, and vulnerable groups. Whenever possible, existing institutions will be assisted to open new branches in underserved areas to improve financial services access.

The ASDSP will leverage credit guarantee funds to support rural financial institutions that provide services to priority VCs, and to support PPPs. Financial institutions which implement lending policies based on gender equity and inclusiveness, and that have a track record of lending to women, youth, and vulnerable groups will be preferred for ASDSP assistance to access the SIDA/USAID Credit Guarantee Facility.

The NPS in collaboration with other sector-level VCD support actors will commission a nation-wide study to identify all financial institutions engaged in providing services to agricultural value chains. The study will also identify the successes and gaps of the various products and offer recommendations for development of credit facilities. A profile of each institution will be developed, providing indications of the products and services they offer. The profile will be distributed to every county, so that CCUs, stakeholders, and county administration can determine which institutions are most likely to benefit the VCs in that county.

NPS with support from the CCUs and other VCD support agents will develop an inventory of existing crop and livestock insurance programs, evaluate and analyze their suitability for priority VCs. Gender and equity aspects of their policies will also be analysed. NPS or other credit or VCD programmes will provide TA as necessary to further develop a viable sustainable framework for crop and livestock insurance that is inclusive of disadvantaged groups. An industry working group will identify best practices, analyze and promulgate them.

CCUs will organize workshops for VC actors, not excluding those who do not participate in priority VCs, on savings and borrowing, crop and livestock insurance and other financial products.

5.3.4 Strengthening value chain organizations

Access to VCs for the smallholder farmer is best accomplished through groups and associations. Individually, small farmers have little purchasing power and less bargaining power. In order for VCGs to operate more effectively in a value chain, they must operate like a business, ideally a legally registered entity. Farmer groups have a limited ability to operate value chain businesses, but they can learn, and can hire professional


management if their operations reach a sufficient scale to cover the expense. Achieving a business culture for VCGs is critical for successful integration of smallholders into commercial agriculture value chains on a sustainable basis.

ASDSP in collaboration with other VCD programmes will undertake training needs assessment for VC groups and mapping of training services that are available. On this basis the Programme and its partners will ensure that comprehensive training opportunities are made available for value chain groups. The CCUs will monitor farmer business organization performance and adjust training programs accordingly.

The CCUs will also support the development of business oriented VCGs through training and mentoring programmes on good governance, business management skills, advocacy and lobbying. The expertise of collaborating agencies like NGOs and donor projects will be integrated into these training and mentoring programmes. By imparting these skills to value chain groups, they will be better able to identify and articulate their needs to stakeholder platforms.

In order to perform these functions, the VCO will receive periodic training and support to develop their BDS (Business Development Services) skills.

Horizontal and vertical linkages within chains will be promoted, by encouraging the formation of inclusive stakeholder platforms which will allow information flows and transparency along the priority value chain systems. These linkages among all actors along the prioritized VCs will be strengthened by inclusiveness of stakeholder platforms and focus discussion groups organized by NPS and CCUs. In order to ensure sustainability, the platforms will be managed by the value chain actors, and will be encouraged to meet regularly.

By organizing into larger integrated producer groups, producers with a common product will be able to market more efficiently and negotiate with buyers and traders more effectively; consolidate procurement of inputs and services to reduce costs both to supplier and producer. ASDSP will collaborate with existing donor and NGO programs with relevant expertise to support strengthening of horizontal linkages.

Strengthening and streamlining of vertical linkages by facilitating discussion and mutual understanding among players along a value chain will improve efficiency and reduce costs along the chain. Producer groups can deliver on contract to larger buyers to stabilize prices and encourage investment in productive assets at the farm level. More reliable supply and higher quality produce can encourage investment in value-addition along the chain. Vertical linkages, too, will be supported by partnering with existing programs with experience in providing workable solutions whenever possible.

VCPs organized by the ASDSP and partners across county lines will support business-like farmer organizations along the same VC to join or create regional or national associations for the purpose of advocacy. NPS in collaboration with relevant partners will mobilize TA


to assist farmer associations to develop fact-based advocacy programmes in support of policy changes for their VC.

The sustainability of value chain groups is founded upon good governance, so CCUs will support local organizations with training and mentoring for responsible participation at all levels. CCUs will be trained by NPS and in partnership with collaborating organizations.

It will not be possible for CCUs to engage directly with all the VCGs in their county. Successful VCGs can serve as models for less successful groups. For CIGs without resources, in poor health, poorly organized and lacking in governance structures the CCU can facilitate linkages with other support organizations operating in the county who are better able to address their needs. CCU will make choices within the context of ASDSP’s focus on vulnerable and marginalized groups, in order to select those groups who can participate effectively in stakeholder platforms.

The NPS in collaboration with other sector-level VCD programmes will also support a nationwide study to determine generic challenges affecting the functioning of value chain organizations. The basis of this study will be information collected by CCU staff. The VCOs will need TA to organize and analyze this data, and also conduct field research designed to validate conclusions that emerge. Based on the results, interventions will be designed to address the challenges faced by VCGs at different stages of their development.

5.3.5 Identify new products for analysis, promotion and piloting

In order to strengthen VCs and promote the increased commercialization and diversification of the agricultural sector, the programme will continuously engage in identification and evaluation of new business ideas that can lead to significant improvements in existing VCs, or the creation of new VCs.

Collaborating organizations in government, the donor community, and the private sector will be encouraged to partner with ASDSP in order to share the risk of promotion, piloting, and development of new agricultural value chains.

New business ideas will go through a due diligence process, including pre-feasibility and feasibility study, assessment of bankability, identification of qualified investors and promoters, and development of bankable business plans. These services may be sourced from ministry or private sector experts or collaborating organizations as appropriate.

The SIDA/USAID Credit Guarantee fund will provide one potential source of financing on favorable terms for new business ventures, and thereby encourage private sector investment. PPPs may also be an appropriate strategy for pilot project development, particularly when the county has resources available locally to contribute to investment costs and share risk.


6.0 PROGRAMME WORK PLANNING, BUDGETING AND REPORTING

6.1Work plan and budget

ASDSP work plan is structured in line with the hierarchy of outcome areas and outputs contained in the log frame.

The ASDSP Strategic Five-Year Plan which covers the life-span of the programme is updated in conjunction with the mid-term review of the Programme. For ease of implementation, Annual Work Plans and Budgets (AWP/B) and Quarterly Activity and Expenditure Projections (QAEP) are produced.

6.1.1Annual work plan and budget

Annual work plans for ASDSP are prepared at two levels and follow the Government’s annual budgeting cycle. In the first level, the counties working in liaison with relevant sub-counties, implementing agencies and stakeholders prepare their work plans and submit to the NPS. The NPS then consolidates the county and national AWPs.

For the financial years 2012/13 and 2013/14, the NPS will take the lead in the preparation of AWPs as these have to be prepared before the full institutionalization of the programme at the county level.

The processes of work planning at both levels involve a series of consultations, meetings and reviews with multiple actors engaged at the institutional levels. This ensures that the targets set out are relevant, achievable and draws ownership from all actors.

Based on the logical framework, various activity sets intended to meet the outputs of the programme sub-components and components are budgeted for as part of the work planning process. Additional budgets for overall Programme management costs (e.g. personnel, communication, capital equipment and maintenance costs) are also presented.

In order to ensure the work planning and budgeting flexibility required to adhere to the principles of demand-driven, stakeholder-led and collaborative activity definition, funding and implementation, work planning will focus on the output level and not define detailed activities required to reach the established outputs. The detailed definition of interventions will be done at the implementation planning stage in consultation with VC stakeholders and other programme stakeholders, with quality control being provided by the CCUs and NPS. Activities that do not lend themselves towards stakeholder-led and partnership-based implementation, such as internal management related activities, are exempted from this general rule and may be planned and budgeted for in more detail.


The overall ASDSP budgeting approach may be summarized as follows:

• Initialindicativebudgetallocationtocountiesandtowardscross-county/nationalinterventions: The NPS will initially define overall allocations for county level programme interventions, for cross-county and national-level interventions, and for programme administration and staffing. The indicative county “intervention budget” allocations will be established based on a formula which will take into consideration socio-economic and production related characteristics of each county as well as the presence of other programmes supporting VCD in each county. County level work planning and budgeting pertaining to ASDSP sponsored VCD support interventions will then be initiated by the CCUs in collaboration with stakeholders and other VCD programmes. CSC/CCU administrative budgets will be allocated over and above these intervention allocations.

• Indicative“out-put”levelworkplanningandbudgeting will be done by the NPS and the CCUs within their respective intervention budget allocations using standard cost norms and lump sums. This will be done in broad consultation with stakeholders and potential partners.

• Detailed“output“descriptions/budgets will be established by the NPS/CCUs in consultation with stakeholders and implementing partners as and when the involved parties agree to initiate the detailed planning of outputs and main interventions during the year. These detailed “output” descriptions/budgets should reflect division of work and cost sharing between stakeholders, partners and the ASDSP subject to approval by CCUs/NPS for quality control and accountability purposes.

• The AWP and budgets will be adjusted on a quarterly basis to reflect differences between indicative and detailed output budgets and changed programming priorities that may arise during the year.

The key steps in the annual work planning and budgeting process are as follows:

• Define the overall ASDSP objectives and outputs for the year (NPS in collaboration with other key sector stakeholders, by 15 Sep)

• Establish work planning/budget guidelines and indicative allocations for county, national and administrative budgets (NPS, by 15 Sep)

• In consultation with relevant stakeholders at national and county levels, define generic ASDSP support activities aimed at supporting stakeholder VC intervention priorities in accordance with the set objectives. This will be done in collaboration with other support agents to ensure that support is provided by the agent who is has a comparative advantage. (15 Oct).


• Specify the responsible units or persons to undertake the agreed ASDSP sponsored support activities (15 Oct).

• Meetings between NPS and CCUs (on cluster basis) to discuss work plan and budget priorities and agree on key directions of the indicative AWP/Bs (1-15 Nov).

• Feedback to stakeholders on outcome of NPS/CCU work planning and budget meetings and finalization of work plans/budgets (15-25 Nov).

• Present the resulting indicative county level work plans and framework budgets for authorization by the ASDSP County Steering Committees (1 Dec).

• Submit County AWP/Bs to NPS (5 Dec).

• Consolidation of county and NPS budgets into full ASDSP AWP/B (15 Dec).

• Submit budget to Treasury (15 Jan).

• Finalization of AWP/B (15 Feb).

• Present national AWP/B for review by TC and authorization by the ASDSP Steering Committee (15 Mar).

• Conduct internal AWP/B reviews on a quarterly, half-yearly and annual basis (15 Jan, 15 May, 15 Sep, 10 Dec).

6.1.2 Quarterly Expenditure and Activity Projections

The Ministry’s’ Internal Financial Reports (IFR) requires that activities are projected on a quarterly basis together with accompanying budget lines to guide fund replenishment and account for previously disbursed funds. To harmonize bi-annual pre-financing for ASDSP between the Development Partner(s) and GoK, the IFRs will be generated quarterly to reflect the financial reports and statements for the quarter. Additionally, semi-annual IFRs will be generated to enable activity projections based on bi-annual reviews and to guide fund replenishment for the subsequent half year.

6.2 Progress reporting

The Programme’s periodic reporting is intended to monitor implementation progress, analyzing internal and external factors affecting progress in relation to the aspirations of the program, and suggesting corrective action as needed.

CCU progress reporting reflects the CCUs’ dual role as devolved ASDS coordination entities and ASDSP operational bodies, i.e. CCU progress reports will cover both aspects of the CCUs’ work in separate sections. The preparation of such combined progress will


reduce CCU reporting workload and to facilitate strong alignment between local ASDSP operations and wider sector coordination efforts. The progress reports will consequently be referred to as “ASDS County Progress Reports”.

ASDS progress reporting is initiated at the county level where the County Coordinators prepare quarterly, semi-annual and annual reports on broader ASDS coordination efforts and ASDSP interventions across all components as outlined in the work plans for review by stakeholders and approval by the CSCs. Implementing partners at the national level, including ASCU and collaborating programmes, prepares similar reports on a semi-annual and annual basis. These reports are compiled by the NPS and ASCU into semi-annual and annual programme level reports. These are reviewed by the Technical Committee before submission to the ASDSP Steering Committee and the ICC for approval.

The schedule and deadlines for the completion of progress reports is summarized in the table below:

REPORTS R E S P O N S I B L E UNIT

WHEN

1 Quarterly activity and financial report

CCU Not later than 10th of the subsequent month after the quarter

2 Semi-annual activity and financial report

CCU County level reports submitted to NPS and ASCU no later than 15th of February every financial year

3 “ NPS/ASCU Submitted to ASDSP SC and ICC not later than end of February every financial year

4 Annual activity and financial report

CCU County level reports submitted to NPS and ASCU no later than 15th September

5 “ NPS/ASCU Submitted to ASDSP SC and ICC not later than end of September

The progress reports include separate sections on:

• introduction

• General county level sector coordination efforts (to be reviewed by ASCU

• ASDSP specific operational progress reporting (overall programme and component level activity progress, to be reviewed by NPS),

• Assessment of performance and factors influencing progress,

• Recommendations for corrective action as needed and definition of priorities for the subsequent reporting period (to be reviewed jointly by ASCU and NPS).


7.0 MONITORING AND EVALUATION

7.1 The purpose of M&E in ASDSP

The goal of the ASDSP M&E Framework is to guide coordinated and efficient data collection, analysis, use and provision of information that will provide indications of ASDSP impact, outcomes and outputs during the implementation to allow the programme management and partners to make decisions that will enhance the impact of the programme. The ASDSP M&E regime is documented in the “ASDSP M&E Framework” document.

The ASDSP M&E Framework is separate from but linked with the sector M&E framework currently being established by ASCU.

The ASDSP result performance will be measured at three levels:

• Impactassessment- measures the impacts of programme interventions on the target population in relation to the programme goal and purpose

• Outcomeassessment- measures the institutional and/or behavioral effects of programme interventions on the target population and institutions. It monitors the outcomes of the programme.

• Outputassessment- measures the performance of implementing units and partners (assessing inputs, process and outputs) in delivering ASDSP supported interventions

The ASDSP monitoring framework measures achievements at the activity and output levels while the evaluation framework measures achievements at the effect and impact level. The ASDSP M&E framework will be kept flexible to ensure that it is able to accommodate interventions implemented by collaborating programmes. Efforts will also be made to align the ASDSP M&E framework with the M&E frameworks of sector programmes which express an interest in integrating their interventions under the ASDSP “umbrella”.

An electronic ASDSP M&E data management system will be established to store, process and deliver monitoring and evaluation information to relevant stakeholders in an accessible and useful manner to the users. This system will be linked to the sector M&E system currently under development by ASCU and other existing or future sector level Management Information Systems (MIS).

In addition to internal ASDSP monitoring and external evaluation exercises, the Programme will establish systems for regular stakeholder monitoring and evaluation of the relevance, efficiency and effectiveness of programme interventions and partnering arrangements.


7.2 ASDSP monitoring

ASDSP monitoring will be done periodically at national (NPS) and decentralized levels (CCU) applying the ASDSP implementation monitoring framework. The process will involve:

• Establishing from the ASDSP logframe and work plans a minimum set of indicators and data on performance, beneficiary and impact assessments to be reported at all levels

• Establishing monitoring data collection and reporting formats and tools

• Data collection on a quarterly basis by CCUs at the county level and the NPS and designated operational partners (e.g. ASCU) at the national level. This will provide the basis for inclusion of monitoring information into the quarterly, semi-annual and annual progress reports

• Submission of reports by the CCUs to the NPS for consolidation in to national progress reports for submission to the ASDSP SC.

7.3 ASDSP evaluation

The ASDSP evaluation framework comprises the following elements:

• Baseline: The Programme will implement three interlinked baseline surveys which in their focus and approach will reflect the three ASDSP programme components:

• Component One survey will rely on analysis of secondary data to provide baseline information on the sector level policy environment and institutional setting.

• Component Two survey will i) analyse secondary data to establish a baseline of the status of NRM, climate change and social security policies and strategies, and ii) include a ‘standard’ household survey to establish a baseline on household level access to and application of NRM, climate change adaptation and social protection technologies and services.

• Component Three survey will collect household-level data to establish baseline information on household engagement in and benefits from existing value chains. Complementary annual value-chain-based panel surveys will be employed to be able to attribute the effects of ASDSP interventions.

The analysis will be disaggregated as needed to use the baselines to assess the effects and impacts of the Programme across gender and other social and economic diversity lines. Service providers will be contracted to conduct the baseline surveys.

• Mid-termReview: The mid-term review will be conducted in 2014 to assess


Programme progress against the logframe and assess the relevance, effectiveness and efficiency of programme approaches, strategies and organizational set-up and partnership arrangements. The review will also make recommendations for the remaining part of the programme period. This review will be conducted by external consultants.

• Impact evaluation:A final external evaluation will be conducted 6 months before the end of the programme to analyze Programme impacts and to recommend on programme follow-on action.

• Specialstudiesandcasestudies:The studies will involve undertaking more targeted and in-depth analyses of specific programme issues to explain observed trends and policy/institutional and other changes in the Programme’s operational environment.

• GoK-development partner reviews meetings: On an overall level the performance of the ASDSP is monitored and discussed in regular review meetings with participation of international development partner(s) engaged with the programme and the GoK.


8.0 FINANCIAL MANAGEMENT

8.1 ASDSP funding framework

The ASDSP applies an open funding structure to allow the GoK and interested development partners (DPs) to co-finance the programme. While during the formative phase ASDSP implementation will be financed by the Government of Kenya (GOK) and SIDA, future co-funding mechanisms may include channeling support from DPs to the ASDSP through ASCU to be managed through government accounting system; direct funding through the Kenyan Treasury (i.e. government contribution which is managed through GOK accounting system); targeted contributions by DPs (i.e. not channeled through GOK system but accounted through ASDSP and ASCU), or; a sector basket funding arrangement whereby funding from both GOK and DPs is accounted in the GOK system in the context of a unified budget, work planning and reporting framework

8.2 ASDSP budgeting and finance management framework

The 5 year ASDSP budget and annual budget preparation and reporting process follow the work planning and budgeting process detailed in section 6.1.1.

8.3 Integrity

In accordance with Kenyan Law and the Code of Conduct for agricultural and rural sector support, persons engaged in the management and implementations of ASDSP activities are prohibited from applying any form of corrupt practices. Any such practice will result in legal action to stop, investigate and prosecute in accordance with applicable law as well as immediate termination of the concerned activity by GoK and Development Partners. Integrity Statements will form part of all partnering agreements and procurement contracts involving ASDSP funding.

8.4 Specific activity finance management provisions

8.4.1 General standards for activity finance management

ASDSP and collaborating GoK agencies and non-state partners will follow standard GoK accounting principles for the financial management of ASDSP activities, and retain all receipts, bank statements and other supporting documents. The Programme will apply GoK cost norms for its operations unless otherwise explicitly agreed by competent authorities.


ASDSP programme and activity finance management will follow the provisions included in the ASDSP Activity Finance Management Instruction which is issued as a separate document.

8.4.2 Transfer of funds for program and activity implementation

The Permanent Secretary Ministry of Agriculture, designated as the accounting officer, will have fiduciary responsibility on behalf of agriculture sector Ministries for all ASDSP funds. This implies that ASDSP estimates will be forwarded as part of the Ministry’s development estimates to the Ministry of Finance (MoF) for onward submission and approval by the parliament. The MoF will communicate such approvals to the MOA. The GoK funds to the ASDSP will be channeled twice annually from MoF to an MoA account opened for the ASDSP following bi-annual financial requisitions by the ASDSP which details the requisition for the next half year and the expenditure returns for the previous two quarters.

SIDA funds will be provided and deposited in a special Paymaster General’s account opened for ASDSP in the Central Bank of Kenya after receipt by SIDA of grant requests from MoF accompanied by progress and financial reports documenting the use of previous disbursements.

Operational ASDSP accounts will be opened by the NPS, CCUs (47 accounts) and ASCU to draw funds from ASDSP MOA account. The Accounting officer, Ministry of Agriculture, issues Authority to Incur Expenditures (AIEs) to the NPS and CCUs bi-annually based on Annual Work Plan and Budgets. These AIEs shall then be distributed not later than August and February through the NPS who will ensure quality control for accuracy and timeliness of the disbursements.

Funds will be channeled towards agreed programme activities either under direct management by the coordinating ASDSP units (i.e. CCUs or the NPS), through service contracts with competitively identified service providers or under cooperation agreements with partner agencies. Other implementing partners will enter into contractual agreements on condition that funds channeled under such partner collaboration agreements will be paid from the respective units’ accounts and must comply with agreed financial regulations.

The NPS and CCU Coordinators, jointly with the NPS and CCU accountants and auditors, have the responsibility of accounting for the funds allocated to their stations.


The ASDSP financial flows are summarized in Figure 2.

Figure 2: Flow of funds in ASDSP programme

8.4.3 Financial reporting

The Ministry of Agriculture’s accounting system generate unaudited ASDSP Interim Financial Reports (IFRs). Consequently, these reports are used as a basis for the disbursement of funds from GoK.


The process involves NPS using quarterly activity and financial reports as well as monthly Statements of Expenditure from the implementing agents, such as CCUs and others to prepare bi-annual activity and financial reports and annual financial statements. These reports and statements are used for applying for funds replenishment from GoK as well as justifying expenditure for pre-financed grant funds from SIDA.

The overall obligation of overseeing the statutory audit of programme’s financial statements rests with the ASDSP SC. This is to enhance eligibility and efficiency of fund utilization.

8.4.4Financial audit

Funds in the programme will be spent on the various activities as contained in the annual work plans and budgets. Auditing of programme implementation costs will be used to minimize the level of questioned costs and thereby enhance efficiency in activity finance management. This is done through a system of internal, external and rolling audits.

The Internal Auditors undertake continuous audits and reports directly to the Audit Committee within ASDSP where they identify non conformities and suggest corrective actions. The audit findings are then disclosed in publicly accessible reports to facilitate timely and effective monitoring and accountability at the community, county and national levels.

The Kenya National Audit Office (KENAO) serves as external auditors and may subcontract such services in the event of capacity or other constraints.

In support of the other audit arrangements, a system of rolling audit will be applied continuously throughout the programme implementation period. These audits will be undertaken under contract with KENAO. This rolling audit is aimed at verifying reporting of expenditure against activities carried out. The report of these findings is presented to the ASDSP SC.

8.5 Procurement of goods and services

Procurement under the ASDSP will be carried out in line with the GoK Public Procurement and Disposal General Manual of 2009 and the GoK Procurement Regulation which are documents that draw authority from Kenya Public Procurement and Disposal Act (PPDA), 2005. This manual sets out procurement policies and rules during operations and cover goods, works and consultancy services as agreed upon by various parties. Procurement guidelines of SIDA (including the Specific Agreement for the implementation of the ASDSP) and other development partners will act as reference materials where applicable.


As outlined in the manual, the key principles that govern procurement are:

• Strict compliance to the legal and regulatory framework

• Achievement of economy and efficiency in the delivery of service

• Promotion of value for money through effective competition and careful Procurement planning

• Balancing between the levels of control necessary to mitigate against risk of administrative burden and delay;

• Separation of authority between procurement initiation, vendor selection, commitment, and receipt inspection and acceptance of procurement object.

• Promotion of sound Public Finance Management through the appropriate recognition and management of the linkages of procurement to other areas of Public Finance Management such as budget preparation, budget execution, finance, accounts and audit.

• Ensuring fairness and equity, and avoiding discrimination in the invitation, evaluation and award of procurement contracts.

• Observance of ethics in all aspects of procurement and ensuring procurement practice is devoid of actual or perceived corruption;

• Promotion of transparency and accountability in the whole Procurement and Disposal Process

• Promotion of health and safety standards, as well as environmental protection;

• Strict adherence to the use of appropriate documentation for all the steps of the complete procurement and disposal cycles, and maintaining a comprehensive record of procurement transactions

In the procurement process, ASDSP will assign responsibility as follows:

• The NPS, CCUs and ASCU will be responsible for procurement services in their various levels of coordination.

• The short and long term technical assistance and consultancy will be procured centrally by the NPS based on the PPDA.

• Procurement of services, works and goods for programme management and implementation for value chain development will as a general rule be done by the implementing agents under supervision by the CCUs.


• In case of ASDSP sponsored procurement by partner agencies in the context of partnership agreements governed by signed collaboration MoU/MoAs or similar contractual arrangements, the procurement system of the concerned partner agency may be applied if this adheres to the general standards of the ASDSP procurement system

• All procurement units, including partners undertaking procurement as stipulated above, will prepare periodic reports on procurement as guided by templates in the detailed ASDSP Administration Manual. The CCUs will compile the reports from its own unit and that of the implementing units and submit to the NPS for program level compilation.


9.0 ASDSP ADMINISTRATION, LOGISTICS AND STAFF MANAGEMENT

Regulations defining the administrative and logistics procedures for ASDSP office management, regular procurement of office supplies and utilities, filing and archiving, IT management, vehicle management etc. will be laid out in the ASDSP Programme Administration Manual. ASDSP administrative and logistic procedures will follow standard GoK rules and regulations unless otherwise agreed by competent programme parties.

Procedures pertaining to ASDSP staff management, including recruitment and contracting procedures, salary and benefits, leave, contract and performance management, contract termination and similar staff management issues, will be governed by the ASDSP Staff Management Guideline.


10.0 References

Ian Christoplos, 2012 (title of book)”

Strategy & Guidelines for Environmental Resilience VCD 80

Agricultural Sector Development Support Programme (ASDSP)Ministry of Agriculture, Livestock and FisheriesHill Plaza, 6th Floor, P.O. Box 30028-00100 NairobiTel/Fax: +254-20-2714867, Email: [email protected]

Documents

PROGRAMME MANAGEMENT GUIDELINESnafis.go.ke/wp-content/uploads/2017/12/Programme-Management-Guidelines.pdfPROGRAMME MANAGEMENT GUIDELINES MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERIES