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CURRENCY EQUMVALENTSExchange Rate: USS 1.000 - KSHs. 22.500

US$ 0.044 - KSHs. 1.000SDR 1.000 - US$ 1.433SDR 0.695 - US$ 1.000KL 1.000 = KSHs. 20.000

t As of November 12, 1990.

WEIGHTS AND MEASURESMetric British/US

1 ha - .47 acres1 km - 0.62 miles1 sq. km = 0.39 sq. miles1 kg - 2.2 pounds1 metric ton = 2,205 pounds

ABBREVIATIONS AND ACRONYMS

AIC - Agricultural Information CenterASAL - Arid and Semi Arid LandsASAO I - First Agricultural Sector Adjustment OperationASAO II - Second Agricultural Sector Adjustment OperationBAT - British American Tobacco Company LimitedCIF - Cost, Insurance, FreightEAI - East African IndustriesFAO - Food & Agriculture Organization of the United

NationsFD - Forest DepartmentFESD - Forestry Extension Services DepartmentFSC - Farmer Service CenterFTC - Farmer Training CenterGDP - Gross Domestic ProductICB - International Competitive BiddingIFAD - International Fund for Agricultural DevelopmentKARI - Kenya Agricultural Research InstituteKBL - Kenya Breweries LimitedKEFRI - Kenya Forestry Research InstituteKTDA - Kenya Tea Development AuthorityLCB - Local Competitive BiddingM&E - Monitoring and EvaluationMENR - Ministry of Environment and Natural ResourcesMOA - Ministry of AgricultureMOF - Ministry of FinanceMOLD - Ministry of Livestock DevelopmentMRDASAW - Ministry of Reclamation and Development of Arid

and Semi-Arid Areas and WastelandsMRST - Ministry of Research, Science, and TechnologyNKARP - National Agricultural Research ProjectNEP I - First National Extension ProjectNEP II - Second National Extension Pro,ectRRC - Regional Research CenterSDR - Special Drawing RightsSOE - Statement of ExpenditureSubAIE - Sub-Authorization to Incur ExpendituresT&V - Training & Visit

MUNA FOR OFFICIAL USE ONLY

SECOND NATIONAL AGRICULTURAL IXTENSION PROJECTSTAFF APPRAISAL REPORT

Table of Contents

CREDIT AND PROJECT SUMMARY . . . . . . .. . . . . . . . .i-i

I. PROJECT BACKGROUND AND THE ECONOMY .................

A. Project Background . . . . . . . . . . 1. B. The Economy . . . . . . . ...... . . . . ........

II. THE AGRICULTURAL SECTOR . . . . . . ...................... ... 3

A. Main Features .... . . . . . . . . . . . ..... . 3B. Factors Constraining Smallholder Agriculture . . .. . . . . . 4C. Agricultural Institutions .... . . . . . . . . . . . ...... 5D. Agricultural Extension .... . . . . . . . . ..... . 7E. Agricultural Technology .... . . . . . . . . . . . . ...... 9F. Government Strategy .. . . . . . . . .. . . . . . . . . . . . 11G. The Bank's Strategy . . . . . .. . . . . . . . . . . . . . . . 12H. The First National Extension Project . . . . . . . . . . . . . 14I. Donor Activity in Extension .orA.ct.it.i E .t..ens.o.n.... 17

!II. THE PROJECT........................... . 18

A. Project Rationale, Objectives and Main Features ... . . . . . 18B. Detailed Features . . . . . . . . . . . . . . . .. . . . . . . 20

IV. PROJECT IMPLEMENTATION.... ..... . . . . . .. . . . . . . . 25

A. Project Management . . . . . .............. . ..... . 25B. Institutional Strengthening .... . . . . . .. . . . . . . . 26C. Cooperation between MOA and MOLD . . . .. . . . . . . . . . . 27D. Cooperation between Research and Extension . . . .. . . . . . 27E. Monitoring and Evaluation . . . . . .. . . . . . . .. . . 28F. Implementation of New Project Components ... . . ..... . 28G. Donor Coordination . . . . . . .............. . ..... . 29

This report is based on the findings of an Appraisal Mission which visitedKenya in June-July 1990. The mission consisted of G. Mohadjer (MissionLeader), Z. Matmor, C. Jones, J. Kampen, P. Walker, J. Ndegwa and V. Bindlish.The following also made contributions to the report: E. Quisumbing, D. Casleyand R. Khanna (Bank); R. Manders and D. Kidd (consultants). K. Baxevanis andE.W. Mwai provided assistance in document processing. V. Venkatesan was theProject's Lead Advisor.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

V. COST ESTIMATES AND FINANCING . . . . . . . .. . . . . . . . . .. . 29

A. Cost Estimates .. .. .... . . . . . . . ...... . . . 29B. Financing .... . . . . . . . . . * .. . . . ...... . . 30C. Procurement. .. . . . . . . . 31D. Disbursement .... . . . . . . . . . . ........ . . . 33

E. Special Account .... . . . . . . . . . . ...... . . . . 34F. Accounts and Audit .... . . . . . . . . . ...... . . . 34

VI. BENEFITS AND RISKS . . . . . . . . . . . . . . . . . . . . . . . . . 35

A. Benefits .... . . . . . . . . . . . . . . . . . . . . . . . 35B. Risks ... r.men.h.F. . . . . . . . 36C. Impact on Government Cash Flows. 36D. Sustainability .... . . . . . . . . . . . . . . . . . . . . 36

E. Environmental Effects .... . . . . . . . . . . . . . . . . . 37

F. Impact on Women . . . . . . . . . . . . . . . . . . . . . . . 37

VII. AGREEMENTS AND RECOMMENDATION ... . . . . . . . . . . . . . . . . 38

Annexes

1. Project Costs and Disbursements . . . . . . . . . . . . . . . . . . 41

2. Financial Analysis .493. Government Cash Flows . . . . . . . . . . . . . . . . . . . . . . . 50

4. Economic Analysis .515. Organization of the Ministry of Agriculture . . . . . . . . . . . . 52

6. Technology .. . 567. Memoranda of Understanding .658. Extension Training . . . . . . . . . . . . . . . . . . . . . . . . 70

9. Monitoring and Evaluation .7510. Farmer Service Centers .7711. Farmer Training Centers .7912. Mass Media and Communications . . . . . . . . . . . . . . . . . . . 84

13. National Agricultural Research Project . . . . . . . . . . . . . . 86

14. IFAD Projects 89

15. Project Supervision Plan .91

16. Technical Assistance .9517. Documents in the Project Files . . . . . . . . . . . . . . . . . . 96

MAP IBRD 21659

KENYASECOND NATIWRAL AGRICULTURAL EXTENSION PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: Government of Kenya

Beneficiaries: Ministry of Agriculture (MOA) and Ministry of LivestockDevelopment (MOLD)

Amount: SDR 17.4 million (US$24.9 million equivalent)

Terms: Standard, with 40 years maturity

Cofinancing: International Fund for Agricultural Development (IFAD)(US$6.0 million equivalent)

Proiect Obiectives: The objective of the proposed project is to increase therate of adoption and stimulate the development of technical packages that willenable smallholder farmers to increase their productivity and incomes. Tothis end the project would consolidate and fortify managerial gains made underthe first phase project; increase direct contact with farmers; improve therelevance of extension information and technologies; upgrade the skills ofstaff and farmers; and introduce innovations into the extension system on apilot basis.

Project Description: The project would include investments to strengthen themajor components of an extension service. On organization and management,funds would be provided for: (i) investments and operational support necessaryto strengthen the extension service, expand it to six new areas, and developtwo prototypes in arid and semi-arid areas; (ii) transportation to increasestaff mobility and enable them to work with groups; (iii) divisional offices;(iv) office, field and training equipment; (v) a computerized monitoringsystem on a pilot basis; (vi) technical assistance in procurement, accounting,auditing; and (vii) impact assessment, organizational, and staff deploymentstudies. On extension methodology, the project would fund: (i) improved useof mass media and better communications; (ii) rehabilitation and furnishing ofFarmer Training Centers; and (iii) establishment of two Farmer Service Centerson a pilot basis. On training, the project would support: (i) a review of thecurricula and operations of agricultural educational institutions; (ii) degreetraining; (iii) courses to retrain staff in crop and livestock production andupgrade staff skills; (iv) regular training sessions; and (v) orientationcourses for staff in the newly added districts. On research, funds would beprovided for transportation and equipment for research staff to participate intraining sessions, demonstrations and on-farm trials.

Benefits: The Projjct focuses on creating a strong and dynamic agriculturalextension system which effectively delivers technical messages tailored to theneeds of smallholder farmers, especially women, and aimed at increasing yieldlevels for both staple food crops and export crops. It would thereby raiserural incomes and employment, and contribute to the national objectives ofself-sufficiency in staple foods and increased export earnings from theagricultural sector. The Project addresses the needs of Kenya's largepopulation of women farmers by increasing contact with women's groups,integrating home economics staff and messages into the extension frontline,using mass media to reach women directly, and encouraging the development ofappropriate technology. Through the dissemination of new technologies onfertilizer and plant protection, the Project would contribute to thedevelopment of farming practices which protect agro-ecological systems.

- ii -

Risks: The risk of a breakdown in cooperation between MOA and MOLD would be

reduced through the establishment of a Steering Committee and Working Group,

and binding annual work plans agreed with IDA. The risk of failing to

translate research findings into appropriate technology would be reduced by

institutionalizing research-extension linkages. Serious constraints to

supervision and operations caused by lack of mobility would be addressed

through the provision of appropriate trar,sportation equipment. Expenditure

imbalances would be adjusted through adherence to norms and proceduresestablished for their review. Progress under the Project would be monitoredthrough improved monitoring and evaluation of extension services, impact

assessment studies, and a midterm review.

Estimated Project Costs: a/Local Foreign Total------------USS million-------

Organization and Management ofExtension Services

MOA Extension - Headquarters 0.5 1.3 1.8MOA Extension - Field Offices 9.0 6.1 15.1

HOLD Extension Services 2.6 1.8 4.4Monitoring and Evaluation 0.1 0.2 0.3

Extension MethodologyMass Media and Communications 1.3 1.5 2.8Farmer Training Centers 4.0 2.6 6.6Farmer Service Centers 0.5 0.3 0.8

Staff Training 4.5 0.4 4.9

Research Extension Linkages 0.6 0.1 0.7

Total Baseline Costs 23.1 14.3 37.4

Physical Contingencies 1.3 0.7 2.0Price Contingencies 5.5 3.0 8.5

Total Project Cost 29.9 18.0 47.9

a/ Inclusive of duties and taxes of US$9.3 M

Financing Plan:Local Foreign Taxes Total----------------US$ million-------------

IDA 10.4 14.5 ---- 24.9

IFAD 2.5 3.5 ---- 6.0

Government of Kenya 7.7 ---- 9.3 17.0

Total 20.6 18.0 9.3 47.9

Estimated IDA Disbursements:IDA Fiscal Year 91 92 93 94 95 96 97 98

--------------- USS million -----------------Annual 0.3 1.2 2.5 3.5 7.2 5.3 3.7 1.2

Cumulative 0.3 1.5 4.0 7.5 14.7 20.0 23.7 24.9

Economic Rate of Return: Not applicable for extension projects.

Map: IBRD 21659

ENrYA

SECOND NATIONAL AGRICULTURAL EXTRNSION PROJECT

STAFF APPRAISAL REPORT

I. PROJECT BACKGROUND AND THE ECONOMY

A. Proiect Background

1.01 The Project, for which an IDA credit of SDR 17.4m (US$24.9mequivalent) is proposed, forms the second phase of the World Bank's assistanceto the Government of Kenya for agricultural extension services. It supportsthe Government's plans to improve agricultural productivity by improvingagricultural services. The Project was identified as part of the ongoing workon the First National Extension Project (NEP I; Cr. 1387-KE). A projectproposal was prepared and submitted by the Government to IDA and theInternational Fund for Agricultural Development (IFAD) in January 1990. ThisStaff Appraisal Report is based on the findings of an Appraisal Mission whichvisited Kenya in June-July 1990.

B. The Econom

1.02 The first decade of independence (1963-73) was one of remarkableeconomic and social transformation, with growth averaging 6.5 percentannually. Rapid agricultural and industrial growth combined with growinginvisible receipts from exports to neighboring countries and tourism, enabledKenya to embark on an ambitious public investment program without recourse toinflationary funding or commercial borrowing. Consequently, Kenya was able tostrengthen considerably its human and physical infrastructure.

1.03 However, the first oil shock brought to the forefront Kenya'sstructural constraints. Consequently, growth slowed to 4.5 percent during1973-80. In addition, population growth continued to rise, reaching 3.8percent by the end of the 1970s. Economic growth decelerated further to 2.4percent during 1980-85, with the Government attempting to stabilize theeconomy in the face of political uncertainty in 1982 and the severe drought of1984-85. The need for stabilization arose from the erosion of the fiscal baseafter the coffee boom of the late 1970s and the subsequent fall in the termsof trade, and the second oil shock of 1979. In 1982 the Governmentimplemented a major devaluation and adopted a flexible exchange rate policy.By the mid-1980s, the Government succeeded in stabilizing the economy.

1.04 The economic stability achieved during the mid-1980s wasseverely eroded in 1985-87 due to continued weaknesses in public finance andcomplacency induced by a mini coffee boom in 1986. Public expendituresincreased to almost one-third of GDP by FY86 and the budget deficit peaked at7.6 percent of GDP in FY87. Money supply grew rapidly in 1986 leading to aresurgence of inflation. During the past three years, the Government hasimplemented a series of sector reform programs which have contributedsignificantly to a marked economic recovery. During 1986-88, GDP and privatefixed investment have averaged real growth of 5.1 percent and 7.3 percentrespectively. As a result, there has been a small but steady increase in per

- 2 -

capita incomes. Nevertheless, although the Government has reduced the currentaccount and budget deficits and its reliance on domestic bank financing,aggregate demand pressures and money supply growth rates remain high. Also,the economy remains vulnerable on the external front due to adverse movementsin the terms of trade and the lack of growth in non-traditional exports.

1.05 During the period 1985-89, agricultural value added grew by 4.2percent per year. The share of agriculture in GDP has been about 29 percent.The forestry sub-sector has recorded an average annual growth rate of about 11percent between 1985-89 and its share in GDP has remained at about 1 percentfor the period. Real value added in manufacturing has had a strong annualaverage growth rate of 5 percent over the same period while its share in GDPhas been about 13 percent. The transport, storage and communications sectorhas continued to make a significant contribution of 6 percent to GDP between1985-89 and its annual average growth rate in real terms has been about 4percent. Kenya's financial sector has expanded significantly in the periodunder review: the number of commercial banks and non-bank financialinstitutions has increased from about 70 in 1985 to 90 in 1989. Employment inthis sector has increased by 19 percent. This sector has accounted for about7.5 of GDP between 1985-89 and average annual growth rates of 6.2 percent.Value added in building and construction activity has increased considerablyby about 4.2 percent annually and its share in GDP remains at about 3 percentover the period. The tourism industry performed remarkably well: relative to1988, international arrivals in 1989 rose by 5 percent, hotel bed-nightoccupancy increased by 3.5 percent and the number of visitors to nationalparks and game reserves increased by 12.9 percent.

1.06 Kenya's economic strategy for the immediate future follows thecourse the Government established with its 1986 Sessional Paper No. 1 entitled"Economic Management for Renewed Growth". The major objectives of thisstrategy are to accelerate economic growth and provide employment for arapidly increasing labor force. In the 1990-92 period, the Government isseeking to reduce the budget deficit, limit public borrowing from the bankingsystem, rationalize public expenditures, reduce price controls, strengthenmonetary policy and contain inflation, manage the exchange rate flexibly andpromote exports, limit nonconcessional external borrowing, and improve theperformance of state corporations. Real GDP growth in 1989 is estimated at 5percent and the budget deficit, which in FY89 reached 4.6 percent of GDP isexpected to fall to 4.2 percent in FY90, 3.8 percent in FY91, and 3.4 percentin FY92. The 1989 current account deficit decreased to 4.4 percent of GDP(including official transfers) from 5.3 percent in 1988, despite substantiallylower coffee prices and higher oil prices. The Government is aiming for GDPgrowth of about 5 percent per annum in real terms, including expected growthof 5.9 percent per annum for manufacturing and 4.5 percent per annum foragriculture. Exports will be influenced strongly by what happens to thecoffee and tea trade, and are expected to grow at an average of 5 percent perannum in volume terms during the 1990-92 period.

II. THE AGRICULTURAL SECTOR

A. Main Features

The Resource Base

2.01 Kenya covers an area of about 583,000 km2, of which 8,000 km2 isopen water and 575,000 km2 is land of varying quality. It is a country oftremendous contrasts in its ecological zones, varying from the tropicalcoastal lowlands strip to Afro-Alpine conditions in the high mountain areas ofthe center, high rain forest in the southwest, savanna grasslands in the eastand south, and near desert in the north. The agriculturally importanthighland area is split on a north-south axis by the Great Rift Valley. Kenyais endowed with a fair amount of water resources but from the point of view ofquantity and spatial distribution, these water resources are limited.Rainfall, soils and altitude are the most Important factors affecting theagricultural potential of various areas. Despite Kenya's large land area,only about 9 percent can be described as high-quality arable land, possessingadequate and reliable rainfall and good soils, another 9 percent is of mediumagricultural potential, and 9 percent can be classified as arable, but subjectto periodic drought and crop failure. Most of the rest of the land is suitedonly to livestock, and even for this use, potential is very low, as up to 60percent of the total land area is semi-desert.

Agricultural Production

2.02 Agriculture dominates Kenya's economy. It employs 70 percent ofthe nation's workforce, provides most of the nation's food, serves as the mainsource of raw materials for the predominantly resource-based industrialsector, and accounts for 66 percent of export earnings and roughly 30 percentof GDP.

2.03 Growth in agricultural production has come primarily from areaexpansion for crops such as coffee, maize and beans, yield increases for teaand wheat, and switching from low value crops to higher value export cropssuch as coffee, tea, and horticulture. In both volume and value, productionmore than doubled between 1955 and 1977. After a few years of slow andnegative growth in the late 1970s due in part to the drought, the sectorresumed its previous growth rate. Agricultural production has grown at arespectable rate of 4 percent per year during the last decade.

2.04 Smallholder agriculture is now the dominant mode of productionin Kenya. Population growth is keeping pace with growth in agriculturalproduction, at roughly 4 percent per year. The rural population has declinedas a percentage of the total from 85 percent in 1979 to 82 percent in 1985;however the number of people living in rural areas has increased by 27 percentduring those six years. As the amount of high potential land per capita hasdecreased, family plots have been subdivided; 80 percent of farmers now haveplots of less than two hectares. Two million, seven hundred thousandsmallholdings of less than 12.5 ha account for 75 percent of total value ofagricultural output, including livestock, 47 percent of marketed output, and

over 85 percent of total agricultural employment. Some of the landless, as aresult of this population pressure, have migrated to previously uncultivatedlower potential arid and semi-arid lands (ASAL), where there are higher risksof environmental damage from deforestation, overgrazing, and cultivation ofmarginal soils.

B. Factors Conetraining Smallholder Agriculture

2.05 Rapid and sustainable agricultural growth in Kenya will onlycome about with the full participation of smallholder farmers. These farmers,however, face many constraints such as labor shortages, lack of access tocapital and oths- inputs, poor infrastructure and transportation in ruralareas. The Gov rnment, with the assistance of IDA, is addressing these keyconstraints through policy reforms and specific projects (paras. 2.33 - 2.40,2.52).

2.06 Labor. Smallholders face labor shortages due to labor migrationout of rural areas, weak rural labor markets, and the synchronization offarming activities. Smallholders have not fully adjusted to the decrease inlabor availability. Current farming systems were developed at a time ofgreater labor availability, and use labor intensive techniques. Farmhouseholds, especially those headed by women, do not have access to the newlabor saving techniques and methods of increasing labor productivity that havebeen developed. In some cases the lack of adequate labor acts as adisincentive for crop diversification, greater input use, and more intensivecultivation of the land. Despite the availability of better techniques forincreasing yields per hectare, this information has not been adequatelytranslated into increased output on smallholder farms.

2.07 Capital. Kenyan farmers face severe liquidity problems. TheGovernment has attempted to provide credit to the agricultural sector throughcredit quotas, interest rate regulations, and the support of specializedagricultural credit institutions such as the Agricultural Finance Corporation.These efforts have failed to provide credit for the majority of smallholders.The formal institutions serve large farmers by mainly providing deposit takingservices. Other sources of seasonal and investment financing are limited, andfew farmers can provide the necessary collateral. Informal finance in ruralKenya is an important source of funds, but financial relationships areconfined mainly to family members.

2.08 Controlled producer prices and delays in payment of between twoto fifteen months for coffee, tea, maize, milk, cotton and sugar havedrastically reduced liquidity, and distorted producer incentives.Agricultural activities relying heavily on purchased inputs, such as cotton,coffee, sugar and dairy production, suffer decreased productivity as a resultof the inability of farmers to purchase and apply these inputs on a timelybasis.

2.09 Fertilizer. Three-quarters of Kenya's smallholder farmers uselittle or no fertilizers; their yield levels are consequently half of thoseobtained by larger farmers. Variations in fertilizer use are related to croppayout rates, labor availability, and high fertilizer costs associated with

inefficient marketing. Other factors limiting use of fertilizers are farmers'knowledge and production level; the largely subsistence nature of food cropproduction and the risk associated with new techniques; the historical lack ofaccess of women farmers to extension advice, cash, credit and their restrictedlabor availability; fertilizer package sizes; the search costs in looking forfertilizer and transport costs to the farm; and the nutrient content of thefertilizer. Supply disruptions in the 19809 due to Government regulation offertilizer imports, poor management of commoditv aid fertilizers, shifts infertilizer policy, and delays in announcing fertilizer prices seem to have hada serious effect on fertilizer availability at the national and local level.

2.10 Livestock Supplies. Much of Kenya's livestock is grass-fed,even in the high potential crop areas. As population growth exerts morepressure on limited land suDplies, farmers are increasingly turning toproduction of fodder crops, stall-feeding and purchased feeds. A majorconstraint facing smallholders has been the variability in availability ofanimal feeds, due mainly to a reliance on by-products from the milling,brewing, oil-extraction, and sugar industries as major sources of rawmaterials. Availability is also affected by the control of animal feedprices. There have been occasions when prices have been held below the costof production, making it uneconomical to manufacture feed.

2.11 Infrastructure and Transportation. The physical infrastructurenecessary to move agricultural inputs and produce between farms and markets isinadequate. The deterioration of surface, drainage and camber in rural roadsis adding substantially to rural transportation costs. The situation isespecially bad for tea and milk, perishable commodities whose value fallsrapidly with delays in reaching processing facilities. The development oftransport services is also lagging. While minor roads make up about 47percent of the network, only four percent of the kilometers travelled each dayby motorized vehicles is on minor roads. These apparent shortages ofintermediate transport, and ineffective market consolidation raisetransportation costs and cause significant bottlenecks in marketing.

C. Agricultural Institutions

2.12 The agricultural institutional environment is extremely complexin Kenya. There are nine ministries, 40 agricultural boards or agencies, andfive national farmers' cooperatives involved with agricultural operations inKenya. This proliferation of ministries and agencies allows for greateremphasis on specific topics but it can lead to problems. Ministries oftenhave overlapping mandates; the Ministry of Environment and Natural Resources(MENR) is responsible for smallholder agroforestry, while the Ministry ofEnergy is responsible for smallholder fuelwood production. Ministries alsohave different managerial and organizational strengths and weaknesses, makingsome of them incapable of responding as full partners to requests forcooperation from other Ministries. Different ministries have received varyingamounts of donor attention and support. Ministries also separate andrecombine; the Ministry of Agriculture (MOA) and the Ministry of LivestockDevelopment (MOLD) joined to form the Ministry of Agriculture and LivestockDevelopment, and then separated again, in a space of five years.

2.13 Agriculture. MOA has the primary responsibility foragricultural development and farmer services. Extension services to thefarming community are provided mainly through the Agricultural Extension andServices Divis'on. Field extension operations are directed at the provinciallevel by Provincial Directors of Agriculture and are organized and coordinatedon a district basis uiuder District Agricultural Officers. Each district isdivided into about five divisions headed by a Divisional Extension Officer whodirectly supervises the frontline extension staff. Annex 5 describes theorganizational structure of MOA.

2.14 Livestock. Responsibility for livestock development lies withMOLD. MOLD has two departments: the Department of Livestock Production andthe Departnent of Veterinary Services. The operational divisions under theDepartment of Livestock Production currently include: Animal Production, RangeManagement, and Livestock Marketing. It is expected that new divisions willbe created for Extension Services, Dairy and Beef Management, Bee Keeping andProject Management. The Livestock Development Division is committed to theintroduction of improvements in breeding, feeding and management of livestock.Farmers receive extension information on animal production techniques throughMOLD's own livestock extension staff. MOLD's extension system is relativelyweak in the high potential areas as compared to MOA's extension system, butis the only provider of extension services in the ASAL areas. Extensionservices for herd health is being addressed through the Animal Health ServicesProject (Cr. 1758-KE).

2.15 Forestry. The main institution in the forestry sub-sector isthe Forest Department (FD) of MENR. Its chief functions are the managementand protection of Kenya's gazetted forests; the establishment and managementof industrial and fuelwood plantations; promotion of on-farm afforestation;and initiatives toward the development of forestry policy. With a total workforce of about 16,000 people, FD operates some 160 forest stations reportingto 40 District Forest Offices which in turn report to eight Provincial ForestOffices. Although the FD's mandate in forestry development is broad, itsprograms have been concentrated on industrial forestry, to which more than 80percent of its budget has been devoted. This is only now being ch_nnged, withexternal assistance, toward greater emphasis on FD's involvement in the ruralafforestation efforts on private land, notably smallholder farm land, andconservation of the natural forests. The Forestry Extension Services Division(FESD) of the FD is being strengthened under IDA's proposed Forestry IVproject to provide technical advice to smallholder farmers, schools andwomen's groups in agro forestry. The extension work of FESD would becomplementary to that of MOA.

2.16 Research Organizations. The Kenya Agricultural ResearchInstitute (KARI) has responsibility for all crop, livestock, and disciplinaryresearch funded under the GOK budget or through external funding obtained byKARI. KARI's research programs and its organization and management structureare being assisted by the National Agricultural Research Project (NARP; Cr.1849-KE; Annex 13). The Kenya Forestry Research Institute (KEFRI) isresponsible for forestry research. Both KARI and KEFRI are semi-autonomousparastatals under the Ministry of Research, Science and Technology (MRST).Agricultural research is also carried out by Nairobi University, coffee, tea,and sugar commodity research foundations and private companies. KARI closely

cooperates with these agencies through reciprocal participation in researchcenter committees and cooperation at the level of the Regional ResearchCenters (RRC). The reorganization of KARI under NARP, and its transfer fromMOA to MRST, has had a disruptive ef£ect on its work in adaptive research.Mandates and administrative responsibilities within KARI are currently beingclarified. MOA has had procedural difficulties in providing funds to enableRRC researchers to participate in regular extensior. workshops. KARI is in theprocess of resolving these difficulties, and with the assistance of thisProject, would strengthen its linkages with extension.

2.17 Parastatals and Cooperatives. While providing marketinginfrastructure, inputs, credit, and in some cases technical advice,parastatals and cooperatives have often been extremely inefficient. They arecharacterized by political interference, poor management, weak planning andaccounting practices, and poorly supervised operations. Accounting for 45percent of overall budgetary allocation, parastatals have been unprofitable,and represent a serious drain on the Government's budget and managerialcapacity. The inadequate functioning of these parastatals and cooperativesadversely effects the structure of incentives in the private sector. Reformmeasures are being proposed under the proposed second Agricultural SectorAdjustment Operation (ASAO II) for the National Cereals and Produce Board andKenya Cooperative Creameries. The recently started Coffee II project (Cr.2062-KE) addresses some of the problems of the Coffee Board and coffeecooperatives, especially with respect to speeding up payments to growers.

2.18 Educational Institutions. Responsibility for agriculturaleducation is shared by the Ministries of Education, Technical Training andApplied Technology, Reclamation and Develcpment of Arid and Semi-Arid Areasand Wastelands (MRDASAW), Cooperative Development, MOA, MOLD, MENR and MRST;a wide range of non-governmental organizations; agro-industrial organizations;and farmers' associations. Agricultural education forms part of the primar;and secondary school curricula and youth are encouraged to join the 4K andYouth Clubs. At the professional level, four universities, Egerton, Kenyatta,Moi and Nairobi, provide MSc, BSc and Diploma degrees in agriculturalsubjects. Nairobi University also provides PhD degrees. Roughly 700 suchdegrees are awarded each year. Certificate level degrees can be obtained atagricultural institutes such as Bakura, Embu and Kilifi; another 600 studentsget certificates each year. This emphasis on agricultural education has had apositive impact on the extension services, as the educational level of theextension and research staff has been upgraded.

D. Agricultural Extension

2.19 Agricultural extension is one of the key services provided tosmallholder farmers in Kenya. Both general T&V extension and commodity basedextension systems successfully coexist. These approaches are not mutuallyexclusive, but rather complementary, especially now that the general extensionservice is operating under a whole farm approach and can advise farmers on anappropriate mix of cash and food crops to maximize income. The commoditybased extension services are operated by private and quasi-governmentorganizations. The extension activities in the contract farming arrangementare tailored to achieve specific production targets. These extension services

are operated by the buyers of these commodities, intermediate producers, whoseultimate objective is commercial profit. The commodity-based extensionservices focus on tobacco, tea, barley, and oil crops.

2.20 Tobacco. Tobacco production is undertaken by the BritishAmerican Tobacco Company Limited (BAT). All the tobacco used for cigarettemanufacture is grown by smallholder farmers under a contract farming systemwith BAT. There are about 10,000 smallholder farmers, each growing an averageof 1.5 hectares of tobacco, who have contracts with BAT for production oftobacco in Meru, Eastern, Central, Busia, Bungoma, Migori and Kuria. BAToperates an extension system to advise farmers on production of tobacco andthe initial stage of processing. Since the curing process requires fuelwood,the company supports tree seedlings from their own nurseries for theproduction of trees for fuelwood. BAT is the sole buyer of all tobaccoproduced, and the company has a team of trained buying agents. The tobacco isweighed and graded, and the farmer is paid on the spot, after the deductionshave been made for various inputs provided on loan.

2.21 Tea. The Kenya Tea Development Authority (KTDA) was establishedas a statutory authority in 1964, charged with coordinating the production andprocessing of tea by smallholders. KTDA operates an extension service in 12tea growing districts catering for the needs of 150,000 tea growers. Itsservices include provision of planting material from KTDA nurseries, credit,extension, leaf collection services, green leaf manufacturing assistance, andthe marketing of made tea. Thus, KTDA has developed into a fully autonomouscommercial venture bringing many of the advantages of large scale teaproduction to smallholders. All of KTDA's 900 extension staff, except thoseat headquarters, are employees of MOA who have been seconded to KTDA. Theyfunction like regular KTDA staff and are responsible to the head of KTDA'sAgricultural Department. This proposed Project includes provisions for costrecovery from KTDA to MOA.

2.22 Barley. Kenya Breweries Limited (KBL) operates an extensionservice for the promotion of malting barley. The main producing areas arealong the Mau escarpment in Nakuru and Narok districts, and in parts of UasinGishu and Meru districts. Production of smallholder barley takes place on a

relatively large scale - the minimum plot acceptable to the company is eighthectares. Like BAT, KBL provides extensive field advisory services, creditfacilities for land preparation, purchase of fertilizer, herbicides,pesticides, harvesting, and transportation of t}e produce to receiving areas.KBL is also involved in research work on agronomic practices, new herbicides,disease control and other related barley production activities.

2.23 Oil Crops. In 1981, East African Industries (EAI) launched theoil crop development scheme, which is owned partly by the InternationalFinance Corporation, to operate a smallholder contract farming system for theproduction of sunflower. Through the scheme EAI provides inputs and extensionservices to farmers. Sunflower is grown by smallholders in Nyanza, Western,Central and Eastern Provinces, and by large scale contract farmers in RiftValley. The extension service is currently weak, in that there are fewfrontline staff working with farmers.

2.24 As can be seen, these commodity based extension services focuson a few crops in certain areas, with farmers who are willing to devote aspecific amount of land to production of the commodity. There remains astrong need therefore for a general extension service targeting the vastmajority of Kenya's smallholder farmers, whose primary production is for homeconsumption and who are either outside the contract system, or who contractfor certain crops but also grow other crops for sale in the market. NEP I,and this proposed Project, are designed to provide geaeral extension servicesto Kenya's smallholder farmers.

2.25 Training and Visit Extension (T&V). Both NEP I and this Projectuse the T&V system of extension service management. Under the T&V system, thefrontline extension staff visit selected contact farmers, groups or school 4Kclubs, according to a fixed two week schedule, to discuss and demonstrateproduction technologies. Farmers not on the visit schedule are encouraged toattend such demonstrations. The subject matter specialists at the divisionaland district levels train the frontline extension staff once every two weeks.The focus at these bi-weekly training sessions is on productionrecommendations relevant in the field during the following two weeks. Thesesessions are expected to have considerable practical orientation and skilltraining. The subject matter specialists attend monthly workshops attendedand assisted by the research scientists, to discuss technical recommendationsrelevant for the following month.

E. Agricultural Te hnology

2.26 Although there have been some significant advances in technologyto improve land and labor productivit, in Kenya, more adaptive research isnecessary to make the technologies suitable for use by smallholders. Therehas been significant recent progress in the development of improved seeds andplanting materials, agronomic practices, harvesting and processing techniques,agricultural equipment, and soil conservation technology that is relevant toKenya's agriculture. There have also been some achievements in generatingimproved technology for livestock production, agricultural equipment, resourceconservation and environmental protection (Annex 6). The substantially higheryield potentials of improved planting materials and better crop and livestockmanagement practices are not being achieved by the majority of smallholders,due to insufficient tailoring of research results, and shortfalls in thedissemination of technology. This proposed Project would improve theapplicability of research to smallholder needs and the dissemination oftechnology through better research-extension linkages.

2.27 Food Crops. In maize, recent (or soon expected) releases withconsiderably greater yield potential are Hybrid H626 for the high potentialzone, Hybrid C78 for medium potential areas, Pwani Hybrid 1 for the humidcoastal strip and Makueni Composite for the low potential zone with erraticshort duration raine. Although less researched, new technology in terms ofseeds and production practices for beans has the potential of significantlyincreasing farmers' incomes through intercropping with maize. Research onwheat has recently produced three new varieties of superior diseaseresistance: Cbiriku, Pasa and Mirembe. Presently recommended wheat husbandrypractices are suitable only for large-scale mechanized farms; this is a

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serious constraint to adoption by smallholders which remains to be addressedby research on suitable equipment for land preparation and sowing. Insorghum, three promising varieties (IS8527, IS8193 and E1291) are on the vo'rgeof release. KARI's reinforced research program on sorghum breeding andagronomic practices is expected to result in the early generation oftechnology for significantly increased productivity of sorghum as a food crop.New sugarcane varieties at various stages of bulking before general releaseare EAK69-40, 69-41, 70-76, 71-402 and 71-619. Given the importance ofvegetable oils, the past research effort on oilseed crops seems inadequate;improved sunflower varieties earmarked for general cultivation in the nearfuture are Kensun 22 and 33 and Super 400. In research on rootcrops (Irishpotatoes, sweet potatoes and cassava), KARI is closely cooperating withseveral International Agricultural Research Centers in the context of aRegional Root and Tuber Crops Research Network. The production anddissemination of certified seed materials remains a serious constraint toincreased production for these crops. Currently ongoing research is expected,within the next three years, to result in several varieties of much improvedperformance, and in the development of practical innovations in storage,processing and utilization.

2.28 Horticultural and Cash Crops. Fruits and vegetables (apples,avocados, grapes, mangoes, oranges, passion fruits, macadamia nuts, as well ascabbages, carrots, chillies, green beans, potatoes, onions and tomatoes),offer great opportunities for increased employment, income and foreignexchange earnings. The recent reorganization of the establishment andoperation of seedling nurseries by the Horticultural Crops DevelopmentAuthority is expected to reinforce extension's capacity to facilitate farmers'access to good quality planting materials. KARI's decision to intensifyresearch on improved management practices is also envisaged to impactproduction on the short term. In relation to cotton production, only onepromising variety (KSA 81M) is being readied for release; however, recent workon biological control of the African boll worm is yielding promising resultswith significant potential impact on costs of production and productivity.For another important cash crop, pyrethrum, two varieties of superiorproduction potential (K218 and K235) have been recently released. Work onclones, which can produce much higher flower yields, has resulted in severalthat are in the final stages of multiplication before release: Ma/71/423,Ma7i/1013, L72/26, L75/477, L75/487 and Ma 75/4 are suitable for highaltitudes (above 2000m) and KS/70/64, KS/75/6, KS75/336 and M074/223 arespec'iically adapted to altitudes of 1700-2000m The rapid multiplication ofplanting materials using tissue culture is envisaged to greatly accelerate therelease of recommended clones.

2.29 Livestock Production. During the past two decades, limitedresources were allocated to research on animal production and health.Whatever work was done, often remained confined to the research stationswithout a strong effort in on-farm adaptation to the conditions ofsmallholders. It is therefore not surprising that the reservoir of improvedtechnology is much smaller for livestock production than for crops. There ishowever, significant scope to improve farmer adoption of currentrecommendations for stall-feeding milk production systems which is aninnovation of substantial impact. In the smallholder Zebu herds and inpastoral areas, recommendations for better animal management, nutrition, and

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improved health and extension services, are envisaged to have a substantialimpact on beef production. For goats and sheep, several improved breeds havebeen developed for the different zones (e.g. Galla, BoerEast African and EastAfrican goats for meat; Toggenburghs and Anglo-Nubian crosses with Galla andEast African for milk; Dorper and Red Masai sheep for mutton and Rommey Marsh,Hampshire Down, Corriedale and a cross between the first two, for wool. Inorder to improve the productivity of poultry, four exotic breeds and severalcrosses are recommended: White Leghorn, Rhode Island Red, New Hampshire andAustralorp. Available extension messages for small scale poultry farmers focuson health, housing and feeding.

2.30 Equipment. Several low cost farm implements and equipment havebeen designed specifically for the improvement of the efficiency andproductivity of smallholders. Further adaptation to specific conditions isrequired through on-farm research. Some examples are: hand push punchplanters, hand-operated maize shellers, multipurpose oxen-drawn toolbars,ploughs for heavy soils in high rainfall areas and for semi-arid areas, chaffcutters, grain driers, and maize cribs for storage. If constraints withregard to credit access, repair and maintenance capabilities can be overcome,there is scope for significantly increased adoption.

2.31 Resource Conservation and Environmental Protection. Soilerosion and runoff are serious problems affecting long-term productivity andsustainability in many areas. Past extension recommendations have emphasizedgood farm management and structural measures such as soil fertilitymaintenance, use of crop residues, contour ploughing and crop rotation, anddifferent types of terraces. The effectiveness of narrow grass strips toimprove soil and water management as a complement to terraces is beingreexamined, and could provide the basis for a major extension thrust inresource conservation.

2.32 The use of chemicals for plant protection in Kenya has becomewidespread but research on integrated pest management in Kenya has beenneglected. KARI in cooperation with International Center of Insect Physiologyand Ecology has recently initiated two specific research programs that areenvisaged to provide results to be disseminated by extension within the nextfew years; (i) the development of integrated pest management technology forfoodcrops with initial emphasis on maize, sorghum and coconut; and (ii) thetesting of integrated tsetse pest management to replace costly dippingprograms for livestock.

F. Government Strategy

2.33 Rapid and sustainable growth in the agricultural sector isessential and will be achieved primarily through smallholder farmerb.Agriculture is targeted to grow at 4.5 percent annually. The Governx"cnt isputting special emphasis on coffee, tea, maize, wheat, milk, meat andhorticultural crops, in order to provide food security, increased ruralincomes, and higher export revenues. Areas devoted to the production ofmaize, beans and livestock feeds will be cultivated more intensively, andmarginally reduced in favor of high value, high employment crops. Coffee

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areas will be expanded, whereas growth in tea production will be achievedthrough yield increases. Coffee, tea, and horticultural crops will continueto be three out of the top four foreign exchange earners. Increased foodproduction, expanded grain storage facilities, management of reserves, anddevelopment of drought resistant crops will be the major initiatives on thesupply side in support of food security.

2.34 Given the constraint in agricultural land and on-farm laboravailability in rural areas, the Government is emphasizing measures thatincrease agricultural productivity. To correct producer incentives, domesticprices of agricultural products will be allowed to reflect border prices,marketing boards and cooperatives will be restructured and will be required tomake timely payments to farmers, and markets will be liberalized. To relievethe supply constraint, agricultural inputs, such as improved seed varieties,fertilizer, pest and disease control chemicals, animal feed, animal vaccines,artificial insemination, and farm machinery, will be provided to farmers in atimely and affordable way by both public and private sector suppliers. Toimprove farmers' liquidity and access to capital, the Government willencourage private sector participation in agricultural lending, and willrestructure its development finance institutions. Agricultural services willalso be improved. Agricultural education will be strengthened to create acadre of knowledgeable and educated farmers. Agricultural extension serviceswill be expanded. Agricultural research will be reoriented to emphasize theproblems faced by farmers and develop technologies and labor saving devicesappropriate to on-farm use. Other areas of special emphasis include smallscale irrigation and drainage, and the development and reclamation of ASALs.

G. The Bank's Strategy

The Bank's Country Assistance Strategy

2.35 The objectives of the Bank's assistance strategy for Kenya areto support, simultaneously, the Government's short term efforts to restore andmaintain macroeconomic stability, its medium term program to accele..ate growthin key sectors, and its longer term efforts to ensure the sustainability andequity of this growth. The country strategy therefore includes short termactions to reduce inflation and shrink the budget deficit, as a proportion ofGDP, by limiting growth of public expenditures, and expanding the revenuebase. It also contains medium term measures to tackle constraints to growth,including re-orienting incentives to encourage private sector activity,increasing efficiency of public expenditures to attain greater productivitywithout crowding out the private sector, encouraging private sector exportdevelopment, restoring badly neglected infrastructure, and improving theperformance of the financial sector. To enhance sustainability and equity,the Bank plans to support further initiatives to slow down population growth,strengthen social services especially in education and health, raise nutritionlevels, address gender issues, monitor welfare, improve environmentalmanagement, and increase employment opportunities.

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Role of the Project in the Agricultural Lending Program

2.36 In the past ten years, the Bank has committed US$259m to supportprojects in the agricultural sector, of which US$47m has been on IBRD terms,and US$212m on IDA terms. Since FY83, all commitments have been IDA Credits.In support of the Government's objectives and strategy a subsectoral shifttook place during the early to mid-1980s away from area development projects,and toward improved agricultural services, promotion of exports, and sectoradjustment operations.

2.37 The Bank's sector assistance program is designed to support theGovernment's main agricultural sector objectives of rapid growth, exportearnings, and employment creation. To do this, the sequence followed so farhas been: policies, vital services, and export investments. The firstAgriculture Sector Adjustment Operation (ASAO I) supported the first phase ofthe Government's policy reform program. ASAO I was complemented by an ongoingAgricultural Sector Management Project, which is providing technicalassistance, training and improved technology for policy making in the mainsector ministries, and in grain marketing. Other investment projects over thelast five years have been grouped around ASAO I. NARP and NEP I havedeveloped and transmitted technologies to reduce the labor constraint insmallholder farms and improve productivity. The Animal Health Servicesproject supports the provision of vital service and inputs to the livestocksector. The Coffee II project supports smallholder coffee production forexport.

2.38 In the past two years, the Bank has been preparing for the nextphase, which, with ongoing projects, will be grouped around ASAO II. Thelatter will deepen policy reforms started under the first operation byfocusing on increasing the efficiency of maize marketing, liberalizingfertilizer imports, distribution and pricing, and improving the composition ofpublic expenditures in agriculture. ASAO II will also begin new initiatives,especially in poverty reduction and environmental actions, which will bereflected in the investment portfolio. To prepare the way for the next phase,the Bank recently completed sector studies on agricultural growth prospects,food security, and rural financial markets, and provided support to initiate aseries of pilot measures under the Rural Services Design Project (Cr. 1974-KE), which started in FY89.

2.39 After launching ASAO II to assist the Government in reformingcentral policy issues in the sector, the Bank plans to support a series ofprojects addressing infrastructure, environment and poverty concerns. Theseprojects will endeavor to alleviate constraints to agricultural growth, anddeepen the equity and sustainability of the sector's development. The Bankwill continue its commitment to the improvement of agricultural servicesthrough NARP, the Animal Health Project, this proposed Project, and a proposedfuture dairying project. The provision of these services to smallholderfarmers will enable them to take advantage of the improved policy environmentcreated with the assistance of ASAO II. Liquidity and credit constraints areto be addressed through policy changes supported by the Bank's FinancialSector Adjustment Operation (Cr. 2049-KE). Infrastructure constraints are tobe addressed through an agricultural marketing and agro-industries developmentprojects. Environmental concerns would be addressed through a new forestry

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project, an ASAL development program, and a wildlife project, and povertyconcerns through nutrition initiatives and rural public works, especiallyroads.

2.40 This proposed Project is closely linked with the Bank's ongoingoperations in research, animal health services, the ASAL pilots under theRural Services Design Project (Cr. 1974-KE) and the proposed Forestry IVproject. NARP supports the research complex's vital inputs into agriculturalextension services. With the assistance of NARP the various agriculturalresearch institutes of MOA and MOLD have been reorganized into a single KenyaAgricultural Research Institute (KARI). Under the direction of KARI, thenational and regional agricultural research institutes will focus on researchthat generates technology for use by smallholder farmers and will work moreclosely with MOA and MOLD staff to translate research results into techniquesand practices suitable for smallholder use. The objective of the AnimalHealth Project, cofinanced with IFAD, is to develop a viable and sustainableinstitutional framework for the effective delivery of animal health services.The proposed Project would complement the activities being undertaken torationalize the deployment of frontline staff, particularly in the ASAL areas.The Baringo subproject of the Rural Services Design Project tests and developsthe provision of rural services, including extension, in ASAL areas. Thisproposed Project would draw on the experience gained in the Baringo subprojectin designing the ASAL prototypes. The proposed Forestry IV project wouldprovide support for the development of technical expertise in agroforestryextension. To ensure the full cooperation of the forestry and agricultureextension services, a memorandum of understanding detailing the framework andextent of cooperation would be signed between MENR and MOA as part of theproposed Forestry Development project.

H. The First National Extension Project

Background

2.41 By the early 1980s it was clear to the Government that thegeneral agricultural extension system in place since before Independence wasineffective. It was poorly organized and supervised, linkages with researchwere weak, and staff lacked motivation and initiative. In February 1982, theGovernment sought the assistance of the Bank in launching an agriculturalextension pilot project organized by the MOA in the districts of Kericho andNandi. The pilot was based on the T&V system of extension management. Earlysuccess with the pilot prompted the Government to promote a national T&Vagricultural extension project in the second half of 1982.

2.42 NEP I was conceived as the first phase of a multiphased effortto introduce the T&V approach throughout the crop extension service. InSeptember 1982 a preparatory document was submitted to the Bank for approval.The project was appraised in February 1983, approved in June and becameeffective in December. The closing date was originally envisaged for December1987, but has been extended three times and is currently December 1990. Theproject is funded through an IDA credit of SDR 13.9 H and a loan from IFAD ofSDR 5.6 M. The project provides funds for: (i) incremental staff; (ii)vehicles and equipment; (iii) incremental operating costs and allowances; (iv)

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staff training; (v) technical assistance; (vi) monitoring and evaluation; and(vii) support to adaptive research. The project area covers 30 of Kenya's 41districts, accounting for nearly 90 percent of the arable land in the country,and contains over 95 percent of the population.

Experience with NEP I

2.43 During the pre-NEP I period the existing extension service hadnot realized its considerable potential despite relatively adequate staffnumbers and the well-defined line of command. The reasons for this were thatstaff, especially junior, were less well trained than they should have been,they visited few farmers, and most visits were to progressive farmers whorepresented only 10 percent of all smallholders. Work programs were in effectnon existent and day to day work was not focussed and field oriented.Mobility of staff to the field was extremely constrained by the lack of road-worthy vehicles and the absence of an adequate number of bicycles forfrontline staff.

2.44 NEP I introduced the T&V system of extension management thatensured: regular visits by extension staff to farmers; organized reportingrelationships and supervision at all levels of management; regular biweeklyand monthly in-service training workshops for extension staff; a vehicle forthe transfer of relevant and appropriate area specific technology fromresearch to farmers; and stronger overall linkages with research. NEP I hassucceeded in establishing an organized and manageable extension servicecapable of undertaking the transfer of improved technology to farmers and thetransfer of problems from the field to the research establishment. Staff nowoperate according to a regular schedule, making it easier to supervise andorganize the work, and farmers can readily anticipate visits from frontlineextension workers. NEP I has succeeded in creating a farmer-extension agentrelationship that is more conducive to extension work.

2.45 The first phase project has also improved the training providedto extension staff. Thirty orientation courses were organized for staff inparticipating districts prior to their incorporation into the T&V extensionsystem. Frontline staff have been supported in their work by bi-weeklytraining sessions organized as an integral part of the extension service.Roughly 90 percent of these training sessions have taken place as scheduled,despite occasional problems due to inadequate operational budgets. Monthlytraining sessions for subject matter specialists have also been well attendedand the competence of SMSs has been significantly augmented. MOA has achievedconsiderable success in the upgrading of extension staff: 800 staff havereceived further degree training, 97 of whom have obtained MSc degrees. Over300 specialized short courses in such subjects as home economics, horticultureand coffee husbandry have been offered to subject matter specialists.

2.46 Two surveys using crop cutting techniques were conducted duringNEP I. The first of these surveys was conducted at the end of the short rainsof 1983 in the districts of Meru and Murang'a. Farms in which both extensionrecommended methods and traditional husbandry practices were followed wereincluded. Crop cutting was carried out, and yields comparisons were made.Average yield increases recorded by the survey were 28 percent for maize, 80

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percent for beans and 84 percent for potatoes. Similar surveys were completedin the districts of Meru, Murang'a and Taita Taveta during late 1984 andresults were also encouraging, with yield gains being observed at all surveysites. Almost half of these gair,s were significant at the 95 percent level.These surveys indicate the positive impact of the first phase project.

Improvements Necessary in NEP II

2.47 Inter-Ministerial Cooperation. Despite the success of the firstphase project, several problems were encountered which the proposed Projectaims to correct. The most problematic issue was the separation of theagriculture-related ministries and the creation of separate extensionservices. NEP I was originally designed to develop an extension system tocover crop production. In 1984 when the Ministries of Agriculture andLivestock were merged, the project was expanded to include livestock subjects.In late 1986 the two ministries were separated once again. MOLD hasestablished its own extension system for livestock, using extension agents whohad worked on livestock issues when the ministries were combined. MENR has,meanwhile, expanded and strengthened its agroforestry extension system. Theresult is that there are three parallel extension systems operating at thefrontline. This proposed Project will seek to reduce unnecessary duplicationsin operations. MOA and MOLD have signed a memorandum of understandingdetailing their cooperative agreements (paras 3.06, 4.09), and MOA and MENRwill be signing a memorandum of understanding under the proposed Forestry IVproject.

2.48 Research - Extension Linkages. The linkages between theresearch complex and the extension services have deteriorated. Asreorganization of research became a major activity in the mid-80s,participation of research staff in monthly workshops dropped off, andcoordinating bodies functioned on a sporadic basis. The implications forresearch are that it has not pursued, to the extent possible, the developmentof technologies suitable for smallholder use in different agro-ecologicalzones. The implications for extension are that the service has not kept upwith the research complex's move towards a farming system approach. Thisproposed Project will provide support to reestablish the linkages betweenextension and research (paras. 3.24, 4.10 - 4.13).

2.49 Organization. There have been some organizational problems atMOA. There has been an undesirable segmentation of staff at the MOA extensionfrontline, as each technical division has sought to increase the number offrontline staff working directly with the division. Staff have been pulledaway from regular extension work and assigned to river bank protection,catchment area development, home economics, fertilizer use field trials, youthprograms, horticulture, and tree nurseries. This depletion of regulare'wtension staff at the frontline has resulted in increased and unnecessaryhiring of staff into the service. The resultant overstaffing poses a severefinancial and managerial problem. The proposed Project would includeorganizational changes to improve the staffing situation at MOA (paras. 3.07,4.08 - 4.09), in line with the changes necessary as a result of the new MOA -MOLD cooperative arrangements.

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2.50 Monitoring and Evaluation (M&E). M&E was seriously neglected inNEP I. Early reports included some negative results, which led to a lack ofinterest in M&E by senior management. Since those early years, very littlework has been done in evaluating the extension system. In addition, impactdata on the effects of the system were not collected, making it difficult tojustify adjustments. The proposed Project includes plans for upgrading thesize of the M&E unit and the skill level of its staff, making management awareof the importance of M&E results by providing access to M&E data, and carryingout specific impact assessment studies (paras 3.10-3.12, 4.14).

2.51 Finances. NEP I has had severe financial and budgetaryproblems. The delayed preparation of procurement documents, and thesubsequent reduction of unspent funds in the development budget, gave rise tosubstantial backlogs in the planned delivery of project vehicles andequipment. As a result, the project has been extended three times. By theend of the project period the balance between salary and non-salary recurrentexpenditures had shifted in favor of salary expenditures, severely curtailingfunds available for operating expenditures. MOA accounts have not beenaccepted for verification by the Auditor General since 1983. Agreements havebeen reached to stop similar situations from arising under the proposedProject (paras. 4.06, 5.11, 5.15 - 5.16).

2.52 Mobility. Access by extension staff to farmers is one of thekey elements in an effective extension system. Despite the provision ofvehicles and bicycles in the first phase project, mobility of extension staffwas a serious problem. As a result, frontline extension agents did not haveeasy access to farmers, and district and divisional staff were not able tocarry out adequate supervision. Even though Kenya has a widely dispersednetwork of private sector maintenance facilities, the lack of spare partsseriously affected the availability of roadworthy transportation equipment.This proposed Project addresses the problem of staff mobility by providingtransportation equipment, spare parts, and funds for operations andmaintenance (paras. 3.13, 5.06) and by correcting the imbalances betweensalary and non-salary operating expenditures (para 4.08).

I. Donor Activity in Extension

2.53 Several other donors are actively involved in projects withsignificant extension components or projects that support the extensionactivities of both MOA and MOLD. These activities supplement the activitiesof IDA, in areas where the donors have a comparative advantage or specialinterest. IFAD, which would cofinance this Project, is actively involved withseveral rural development projects, each of which have important extensioncomponents. The European Economic Community is involved at the district levelin livestock development projects. The British Overseas Development Agencyhas supported the Agricultural Information Center for a number of years, andwill continue to do so through various programs. GTZ, the German technicalassistance corporation, has been working with MOA for a number of years on afarm management project to improve the information available on smallholderfarms. FINNIDA, the Finish Development Agency, is planning to help theGovernment with agricultural curricula for use at the Farmer Training Centers(FTCs), and with the rehabilitation of six of the existing 29 FTCs. With the

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help of CIMHYT, KARI and Egerton University are undertaking a Crop ManagementResearch Training Project to train 700 students in crop production andresearch actlvities. Also at Egerton, the United Nations DevelopmentProgramme d the Food and Agriculture Organization (FAO) are sponsoring afour year program to train 400 extension staff in PAO's farming systemsapproach. On a bilateral basis, the Government of the Netherlands is involvedwith livestock and dairying, and the Government of Switzerland supportsagroforestry extension. These extensive donor activities are not wellcoordinated; one of the goals of this Project is to increase the Government'scapacity to work with donors in a coordinated, coherent manner (para 4.20).

III. THE PROJECT

A. Proiect Rationale, Objectives and Main Features

Project Rationale

3.01 The current extension system in Kenya is well managed, and hashad a positive impact on agricultural production as indicated by the projectevaluation results and the preliminary findings of the Africa-wide study ofextension systems. It fills the gap in extension left by the privatecommodity based extension systems. Support to the second phase ofagricultural extension activity in Kenya is necessary to strengthen themanagement, expand the reach, and introduce innovations in the system. Thisproposed Project is an important element in IDA's country assistance strategypromoting the growth and equitable distribution of incomes. The timing of theproposed Project is especially important. It follows the proposed ASAO II andwould therefore assist smallholders in taking advantage of policy reformsintroduced under the proposed credit. It also synchronizes with theimplementation of NARP, which seeks to generate technologies that contributeto increased smallholder productivity, the Animal Health Services projectwhich improves livestock services, and the proposed Forestry IV project, whichstrengthens agroforestry extension. This proposed Project expeditestranslation of research results into technical packages that farmers can adoptreadily and reinforces the emphasis of other projects on smallholderagriculture. It is timed to start shortly after the first phase project ends.

Project Objectives

3.02 The objective of the proposed project is to increase the rate ofadoption and stimulate the development of technical packages that will enablesmallholder farmers to increase their productivity and incomes. To fulfillthis objective, the proposed project would: (a) consolidate and fortifymanagerial gains made under the first phase project by (i) operating an inter-ministerial frontline extension service; (ii) rationalizing the deployment offrontline staff; (iii) strengthening supervision, monitoring and evaluation;(iv) providing logistical support; and (v) undertaking a number of impactassessment studies to measure the effectiveness of extension services;(b) increase direct contact with farmers through (i) expansion into six newadministrative areas, and natural resource conservation prototypes in two ASAL

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areas; (ii) greater staff mobility; (iii) improved and extensive use of massmedia; (iv) emphasis on working with groups and farmers cooperatives; and(v) quarterly workshops for women's group representatives; (c) improve therelevance of technologies and information for farmers by (i) establishing afarming systems approach; (ii) working with research to disseminate andfurther develop technologies suited to local resource availability and agro-ecological conditions; and (iii) addressing issues of direct interest towomen; (d) upgrade agricultural skills of staff and farmers by (i) holdingregular training sessions for staff; (ii) providing short residential coursesat FTCs; (iii) improving the curricula at agricultural educationalinstitutions; and (iv) providing funds for short term and degree training inagricultural subjects, both domestically and internationally; and (e)introduce innovations into the extension system on a pilot basis that willmake it more efficient and cost effective, such as (i) cost recovery forcommodity based extension; (ii) systematic information flow betweenresearchers, subject matter specialists, extension agents and farmers; and(iii) establishment of Farmer Service Centers (FSCs) on a pilot basis thatprovide a variety of agricultural services under one roof.

Summary Description

3.03 The proposed Project would include investments over a seven yearperiod to strengthen the major components of an extension service: extensionmanagement; extension methodology; training; and research. Specifically, inorganization and management of extension services the proposed Project wouldfund: (i) investments and operational support required to strengthen theexisting extension service and expand it to six new administrative areas;(ii) investments required to develop two prototype projects in ASAL areas;(iii) transportation equipment to increase staff mobility and access tofarmers' groups, and improve supervision; (iv) buildings for use as officesand training venues; (v) office, field and training equipment to improve staffefficiency; (vi) a computerized monitoring system on a pilot basis; and (vii)technical assistance and consultant studies. In the area of extensionmethodology the proposed Project would fund: (i) the production of radio andTV programs, community media and publicity campaigns; (ii) a question andanswer system on a pilot basis; (iii) the rehabilitation of FTCs; and (iv) thedevelopment of two FSCs on a pilot basis. In the area of staff training, theproposed Project would support (i) a comprehensive review of the curricula andoperations of agricultural educational institutions; (ii) short courses toretrain staff in crop and livestock production; (iii) short courses, as wellas degree training, to upgrade staff skills; (iv) regular bi-weekly andmonthly training sessions; and (v) orientation courses for staff in the newadministrative areas. To strengthen collaboration with research, the proposedProject would supplement NARP by providing funding for transportation andequipment necessary for research staff to participate in training sessions,demonstrations, and on-farm trials.

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B. Detailed Features

Organization and Management of Extension Services

3.04 Expanded Coverage. The 30 districts covered in NEP I includenearly 90 percent of the country's arable land. The decision tc concentrateon the high crop potential districts was taken so as to first cover areaswhere the greatest gains could be made. Now that the system is established,there is justification for expanding to areas not covered under the firstproject. The proposed Project will be national in scope. Six newadministrative areas will be added: Kajiado, Marsabit, Nairobi, Mombasa,Sambura and Tana River. In addition, four districts are being divided:Kisii, Kakamega, South Nyanza, and Machakos. A minimum of 40 districts, outof a total of 45, will be covered by the Project.

3.05 The Project includes the development of two prototype projectsin ASAL areas to test the provision of extension services to nomadic people.The prototypes would be located in Turkana and Wajir districts and wouldinvolve training pastoralists to serve as extension agents, who would travelin mobile teams to watering holes in the ASAL areas. The work wouldconcentrate on water conservation and development, and livestock productionand health. These teams would be supported by subject matter specialists.Since these areas are agro-ecologically and culturally different from the highcrop potential areas covered by the project, it is advisable to proceedslowly. Agreement on the above was reached during negotiations.

3.06 Cooperation between MOA and MOLD. The oper_tion of separateextension systems by MOA and MOLD poses a severe financial and managerialdrain on the Government. In addition, there is a felt need to reach thelargest number of farmers with an integrated set of messages, enabling them tomake the tough choices necessary in running smallholder farms. The researchcomplex recognizes this by taking a farming systems approach to agriculturalresearch. In response to this situation, MOA and MOLD have reached acooperative agreement to operate an inter-ministerial extension frontline:(i) MOA will provide in-service training for MOLD staff on crop productionactivities and MOLD will provide in-service training for MOA staff onlivestock production activities (para 3.21); (ii) regular training on specificextension messages will be organized jointly (para 3.22); (iii) bothMinistries will utilize FTCs for staff training and other activities (para3.16); and (iv) staff will be redeployed such that (a) only one person fromeither MOA or MOLD at the divisional level will be in charge of the extensionservices; and (b) only one staff from either MOLD or MOA will be located ateach location and sub-location to cover both crops and livestock (paras 3.07,4.04).

3.07 Staff Deployment. The cooperative agreement between MOA andMOLD eliminates the current duplication of livestock and crop extension staffat the sublocational, locational and divisional levels, and increases theknowledge base farmers can access. Similarly, to support the newarrangements, the current crop extension system at MOA has to be rationalized,

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so that specialists, such as in home economics, will be redeployed to work asgeneralists at the frontline. Topics needing special attention would behandled by a two or three person unit at divisional level which would providesupport to the generalist frontline staff. In home economics, for examp..,the units would serve women's groups in the division by providing gendersensitive messages such as family planning and child rearing. The units wouldbe given the transportation and resources necessary to cover the larger area.At the same time, all frontline extension agents would work with women farmersand groups on crop and livestock production issues, and on non-gendersensitive home economics messages. These adjustments in staffing within MOAwould take place in the context of the redeployment of staff under the new MOA- MOLD arrangements (paras. 3.06, 4.09).

3.08 Working with Groups. Kenya has a long and rich tradition offarmers coming together in farmers' groups. Women's groups, whether formed tofarm common land, to gain easier access to credit, or to do handicrafts, areespecially strong and active. Farmers' marketing cooperatives are alsostrong. In recognition of these facts, and due to the limited success of thecontact farmer approach in generating an adequate response from the community,all frontline extension agents are now instructed to meet groups, rather thanindividual farmers, at each contact point. A typical extension agent, who nowworks directly with 48 farmers, can easily double the number of personsreached by adding farm groups to the bi-weekly route. Farmers' cooperativescould be encouraged to share in the transportation or training costs of anextension agent, with the eventual goal of hiring their own extension agent.In addition, frequent demonstrations and field days to which all farmers in agiven area are invited, are encouraged.

3.09 To improve the access of women to agricultural information,quarterly workshops would be held at locational level to which designatedrepresentatives of women's groups would be invited to meet with extensionagents, subject matter specialists, and other divisiona'. and district staff.These workshops could introduce new technologies, cover topics such asimproved practices for crops and livestock, and provide an opportunity for thewomen leaders to ask questions. The women leaders would then be able totransmit this information to their groups and obtain feedback.

3.10 Monitoring. Agreement was reached at negotiations that MOA andMOLD would assign the necessary number of people within their centralmonitoring and evaluation units to focus exclusively on monitoring extensionservices. These units would add to the already existing structure atheadquarters and district level, and would improve the quality of monitoringof extension services (Annex 9).

3.11 The availability of information at headquarters on a timelybasis on the implications of certain policy decisions, and the performance onkey management indicators would enable decision makers to react quickly todevelopments in the field. An information planning exercise would beundertaken to determine the availability of information needed for effectivemanagement. Agreement was reached at negotiations that by September 30, 1992,a system would be implemented on a pilot basis in four divisions within twolarger districts to collect, monitor and analyze critical information on the

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effectiveness and efficiency of the extension systems, with the help ofcomputerized software and hardware (Annex 9).

3.12 Impact Assessment Studies. Agreement was reached atnegotiations that a series of studies would be undertaken by January 31, 1994to measure the impact and effectiveness of the extension system. Thesediagnostic and prescriptive studies would focus on: (i) appropriateness ofmessages; (ii) availability of technologies; (iii) knowledge and training ofstaff; (iv) workload distribution; (v) effectiveness of contact betweenextension agents and farmers; (vi) cost effectiveness; (vii) cost recovery;and (viii) sustainability. These studies would be used in conjunction withthe evaluation of T&V systems in Africa to make qualitative changes to theextension system at the time of the Project mid-term review (para 4.03).

3.13 Project Sub-Components. To support the extension services ofMOA and MOLD, funding is provided under the Project sub-components for: (a)MOA Extension-Headquarters; (b) MOA Extension-Field; (c) MOLD Extension; and(d) Monitoring and Evaluation. Investment expenditures will be undertakenfor: (i) four wheel drive vehicles, minibuses, motorcycles, scooters andbicycles to replace old equipment, increase staff mobility and access tofarmers groups, and improve supervision; (ii) office, field and trainingequipment to upgrade the efficiency of staff; and (iii) refurbishing ofheadquarters space, and the building of divisional offices. Operating fundsare being provided for the operation and maintenance of transportationequipment office, field and training equipment, and buildings, travelallowances for extension staff and on-farm demonstrations (Annex 1). Toassist the Government, funds are being provided for consultant studies andtechnical assistance in: (i) procurement, accounting and auditing; (ii) impactassessment studies; and (iii) organizational, staff deployment and trainingstudies of MOA and MOLD (Annex 16).

Extension Methodology

3.14 Mass Media and Communications. In order to supplement the workof the frontline extension &gent, the various forms of mass media - radio,television, video, community theater, print media, and advertising - will beused to deliver information on agricultural topics. Programs will be targetedto reach specific audiences, such as women and youth. The intention is toreach every farmer in Kenya with agricultural messages (Annex 12). At presentthe Agricultural Information Center (AIC) of MOA is involved with theproduction of daily and weekly radio programs, the submission of articles tolocal newspapers, the production of pamphlets and booklets for use by farmersand technical handbooks for use by extension staff (Annex 5). AIC also workswith ODA on initiatives to improve extension agent-farmer communications (para2.53). AIC will continue to produce its regular programs and will coordinatethe production of new programs. Funds are provided under the Project toreplace some of the existing equipment at AIC with improved technologies.Funds have also been allocated for the hiring of consultants to assist in thepreparation of new weekly radio programs and spots, quarterly TV programs(which will be reproduced on video for use in training), community media,print media, and publicity campaigns. There is a strong and vibrant privatesector capable of producing these programs, therefore funds have beenearmarked for consultant contracts with these local firms.

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3.15 The introduction of new technologies often raises unexpectedproblems during application at the farm level. To adjust the technologies andpractices, it is important to record and respond to these problems in asystematic way. One proven method in extension is a question and answersystem, where frontline staff record the concerns of farmers, discuss thesewith the subject matter specialists, and alert researchers to the problemsarising in the field. When the solutions have been worked out, the answer tothe original farmer question is recorded. These questions and issues are thengrouped by topic and published as a manual for use by extension agents andfarmers. To test the relevance of this system for Kenya, funding is beingprovided for a consultant to assist AIC in designing a pilot and testing it inthe districts around one RRC.

3.16 Farmer Training Centers. In the first phase project, the use ofFTCs for farmer training, an important element in Kenyan extension, decreasedin favor of strengthening the quality of extension services provided toindividual farmers. There is now a general recognition that FTCs have acomplementary role to play in extension and farmer training, arLd cansupplement the work of the extension agents. FTCs also serve as regularvenues for bi-weekly extension staff training sessions and monthly workshops.In this Project, FTCs would be used to provide one week courses for farmers onsubjects such as animal traction, livestock production, use of rew implements,introduction of new export crops, agroforestry practices and fruit treemanagement. FTCs would operate self-supporting farms to demonstrate thelatest farming methods and technologies. Ministries other than MOA and MOLDwould also have access to the FTCs. Agreement was reached at negotiationsthat IDA would fund the rehabilitation and furnishing of three FTCs on a pilotbasis. If the managerial and financial arrangements and training are foundacceptable at the midterm review, then the remaining FTCs would berehabilitated (Annex 11).

3.17 Farmer Service Centers. In certain areas of the country farmersdo not have access to the inputs needed to implement new and existingtechnologies. The Project would support the development on a pilot basis oftwo FSCs in Kerio Valley and Marsabit, where the Government would beresponsible for providing the structural facilities and extension andveterinary services, and private sector input distributors would beresponsible for providing inputs, implements, supplies and credit. Thefacilities would include demonstration farms, where farmers would be able toobserve the interaction of different inputs. These FSCs would providepotential rural entrepreneurs with the opportunity to gain information aboutnew technologies, and would provide a forum for technological interchange.Funding would be provided for the construction, furnishing and operation ofthese FSCs (Annex 10).

Staff Training

3.18 Maintaining and improving the skill level of extension staff isnecessary for the effective dissemination of new technologies to smallholderfarmers. This Project would focus on both pre-service and in-service training(Annex 8).

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3.19 Education. The cooperative agreement between MOA and MOLD callsfor a re-evaluation of the curricula at agricultural colleges and animalhealth institutes. Staff graduating from these institutions have to beequally proficient in crop and livestock subjects, small stock management,agroforestry, household management and food preparation. A consultant studywould be funded under the Project to review the curricula and operation ofagricultural educational institutions, and to prepare both short term and longterm solutions to strengthen these institutions, upgrade the teaching, anddevise curricula and degree programs preparing students for the tasks expectedof them in the extension service. The study would be finalized in time forthe Project mid-term review.

3.20 Study Leave. In recognition of the importance of capacitybuilding, funding is being provided under the Project for overseas anddomestic degree training at the Masters and PhD level, and for studies ofshort duration. Topics could include crop agronomy, horticulture, cropprotection, agriculture mechanization, farm management, and extension systemmanagement. This funding is limited, since the experience of NEP I indicatesthat widespread skill upgrading is more beneficial to the quality of servicesprovided than specialized overseas training for a few staff members.

3.21 Retraining. As part of their cooperative agreement, MOA andMOLD have agreed that frontline staff will cover both crop and livestockproduction subjects. To enable the staff to fulfill this responsibility,retraining courses of short duration will be offered for all staff requiringsuch training. Agreed sites for these courses are the FTCs and theagricultural educational institutions. To accommodate the urgent need forthese training courses, the number of full time slots at the agriculturaleducational institutions will be decreased. Funding is provided under theProject for retraining during the first three project years.

3.22 Regular Training. Regular training sessions for frontline staffwill continue to be the most important vehicle for staff training. MOA andMOLD have agreed to coordinate their regular training sessions on a bi-weeklyor monthly basis. At the district level, two-day monthly workshops will beheld with subject matter specialists who will prepare the extension andtraining agenda for the next month. KARI would agree with MOA and MOLD thatsenior scientists from the RRC would attend these monthly workshops. Fundinghas been provided for the regular workshops and for the costs associated withthe participation of research staff.

3.23 Orientation. There are six new administrative areas joining theProject. In line with NEP I, a short orientation course will be held in eachnew area to familiarize the staff with Kenya's T&V system of extensionmanagement. Funding is being provided in the first year of the project forthese orientation courses.

Research - Extension Linkages

3.24 The development of viable technologies by the agriculturalresearch complex is the lifeblood of the extension system. Greater effortneeds to be made to ensure the effective transfer of technologies from the

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research complex to the extension services staff and to farmers. At the sametime, effort needs to be made to ensure that research scientists receivefeedback from farmers and extension agents on the effectiveness andapplicability of research results, so that relevant technologies, such aslabor saving devices for women farmers, could be developed. To strengthenresearch-extension linkages the agriculture based ministries and KARI wouldagree that scientists from National and Regional Research Centers would beinvolved with specific extension-related activities such as workshops, on-farmtrials, and professional groups. Funds would be provided by the Project inthe MOA and MOLD budgets to reimburse KARI for the transportation andequipment required to provide extension support. MOF has agreed to providesub-Authorizations to Incur Expenditures (Sub-AIEs) for this purpose in theMOA and MOLD budgets. This allocation will be extra-budgetary in the firsttwo years, and absorbed in the MOA and MOLD budgets thereafter. MOA, MOLD andKARI have signed Memoranda of Understanding detailing the responsibilities ofeach ministry in bringing about effective research-extension coordination(Anne- 7).

IV. PROJECT IMPLEMENTATION

A. Project Management

4.01 Steering Committees. Agreement was reached during negotiationsthat an inter-ministerial Steering Committee comprising representatives fromMOA, MOLD, and KARI would be established and would have ultimateresponsibility for the project. Representatives from MENR, MRDASAW, MRST,MOF and IDA would also be invited to attend the annual meetings of theSteering Committee. 7n- Steering Committee would be chaired alternately bythe Permanent Secretaries of MOA and MOLD. It was agreed that Projectimplementation would be under the direction of a Working Group reporting tothe Steering Committee and comprised of representatives from MOA, MOLD, andKARI. It was also agreed that MOA and MOLD through the Working Group wouldprovide reports twice a year on Project implementation to IDA.

4.02 Work Programs. Work programs would be prepared on an annualbasis, and should be focussed on ways in which the departments in MOA and MOLDand other ministries and agencies, would support extension services. Thesework programs would focus on the scheduling of workshops, demonstrations,training sessions, training at FTCs, staff deployment and hiring (includingthe proportion of women), and cost containment measures. The work programswould include an assessment of progress made on key monitoring indicators, andwould reflect changes in the delivery of extension services to improveperformance. An important component of the work programs would be a review ofthe previous year's budget, and a delineation of budgetary requirements forthe coming years. These work programs would be prepared and implemented bythe Working Group. Agreement was reached at negotiations that the annual workprograms would be submitted to IDA by January 31 each year, and would bediscussed and agreed prior to finalization. The submission of an annual workprogram acceptable to IDA for the first year of the project would be acondition of credit effectiveness.

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4.03 Midterm Review. Agreement was reached during negotiations thatthe Goverrment and IDA would jointly conduct a midterm review by June 30,1994, of the progress that has been made under the project. The midtermreview would assess: (a) the success of the ASAL prototypes, and thefeasibility of extending coverage to other ASAL areas; (b) management of theextension system; (c) linkages with other ministries; (d) linkages withresearch; (e) effectiveness of technology dissemination; (f) cost recovery andcost reduction; (g) donor coordination; (h) the success of the mass mediacomponent and communications pilots; (i) the success of the monitoring systemand the use of monitoring information to improve the delivery of extensionservices; (j) cooperation between MOA and MOLD; (k) the success of therehabilitation and management of the FTCs; (1) success of the pilot FSCs, (m)integration of home economics staff into the extension frontline; and (n)implementation of recommendations from the study on agricultural educationalinstitutions. Using the results of this review, the results of the impactstudies (para 3.12), and the MOA and MOLD reorganization studies (para 4.07)undertaken as part of this Project and elsewhere, the Project design would bereviewed and any corrective actions taken.

4.04 Supervision. Managers at MOA and MOLD will be responsible forsupervising the activities of their staff at the Provincial and Districtlevel. At the divisional level, only one officer from either MOA or MOLDwould be responsible for supervising the staff at locational and sublocationallevel. Supervision would include the regularity of farm visits and trainingactivities, the adequacy of interaction with the farmer, subject matterspecialists and research staff, and collaboration with staff from otherministries. Reporting and monitoring requirements would be prepared at thebeginning of the Project period (para 4.14).

4.05 Recovery of Costs. MOA currently seconds approximately 900extension staff free of charge to KTDA. Agreement was reached at negotiationsthat cost recovery measures would be implemented such that one-third of totalcosts would be recovered in FY 1992/1993, two-thirds in FY 1993/1994, and fullcost recovery would be achieved in FY 1994/1995. MOA coffee engineers alsoprovide free services to coffee factories. Agreement was reached atnegotiations that MOA would start collecting fees from coffee factories forthe services of these coffee engineers.

B. Institutional Strengthening

4.06 The Director of Agriculture and his staff need support in ke)positions in order to coordinate and manage the Project. Three positions infield supervision, training, and administration (procurement) were staffedprior to negotiations.

4.07 With the changes taking place in staffing patterns and extensionmethodologies, it is timely to study the organization of MOA and MOLD.Agreement was reached at. negotiations that a study would be undertaken, to becompleted by January 31, 1994, to recommend ways in which MOA and MOLD can bestreamlined to implement improved extension technologies and deliver cost-effective extension services. The results of this study will be used as partof the midterm review (para 4.03).

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4.08 In order to correct the expenditure imbalances under NEP I, agreementwas reached at negotiations that the Government would implement an action planon achieving appropriate staff levels at MOA and MOLD and on raising the ratioof non-salary to salary operating expenditures. These expenditure norms havebeen developed as part of the work undertaken in the proposed ASAO II, andwill apply to the entire Project period.

C. Cooperation between MOA and MOLD

4.09 The cooperative agreement between MOA and MOLD calls for closecollaboration in the provision of extension services. To operationalize thetraining, deployment and management of extension staff, consultants will behired to assist the Government in preparing two studies. The first study tobe completed by January 31, 1994, will focus on staff deployment, and willdiscuss the deployment of staff within the MOA organization, including thereallocation of specialist staff such as in home economics to the generalistfrontline (para 3.07) and between MOA and MOLD. Agreement was reached duringnegotiations that while the study is in progress, new hiring at MOA and MOLDwould be consistent with staffing norms acceptable to IDA. Within thisframework, the hiring of women would be encouraged. The second study willfocus on the retraining necessary to enable staff to effectively cover thebroader range of subjects. At the same time, the cooperative agreement willbe implemented in two districts on a pilot basis, and satisfactory andtangible cooperation, acceptable to IDA, will be a condition of crediteffectiveness. Agreement was reached at negotiations that the cooperativeagreement would be implemented throughout the Project area at a rate of aboutten districts per year to be completed by the time of the midterm review.During the Project period, the Working Group would be responsible for allareas of cooperation between the ministries and would closely monitorimplementation (para 4.01).

D. Cooperation between Research and Extension

4.10 The proposed Project would build on the NARP structure which isnow being established and use multi-disciplinary regular workshops at both thedistrict and RRC level to facilitate two-way research-extension interaction.Research scientists, extension agents and farmers would attend these workshopsand training sessions according to a pre-determined annual schedule. Linkageswould be kept as simple as possible to ensure that research scientists andextension subject matter specialists are involved jointly and directly infield work on adaptive research and technology dissemination.

4.11 Under NARP, the farmirg systems approach has been adopted.Research scientists from RRCs and extension staff in the RRC mandate areaswill collaborate in Farming Systems Teams and work closely with farmers toguide on-station and on-farm research in a farming systems perspective, inorder to identify priority constraints and to study socio-economic and otherfactors which influence farmers' decisions.

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4.12 To strengthen development of the capability of specialist staffworking on a particular subject in the districts around each RRC, theProfessional Groups that were started under NEP I and consisted of districtlevel and provincial subject matter specialists, would be reactivated. Groupmembership would include research scientists from KARI and the RRCs, and,where appropriate, the agricultural universities and colleges. Seminars andtraining tours would be organized by the Professional Groups to keep extensionstaff up to date in their specialty.

4.13 At both MOA and MOLD, a research-extension coordinator would,jointly with KARI's Assistant Director RRCs, have overall responsibility forseeing that the farming systems approach is followed with the help of theFarming Systems Teams, that the Professional Groups are functioning properly,and that research staff are participating in extension workshops.

E. Monitoring and Evaluation

4.14 Drawing on the results of the information planning exercise(para 3.11), the Director of Agriculture and the Director of LivestockProduction would prepare detailed proposals indicating the project managementand project impact parameters to be monitored, especially in the areas ofaccess by women to extension services. The proposals would indicate how M&Ereports would be used and how the results would be translated into improvingthe impact of the extension system on agricultural practices in Kenya. Thesedetailed proposals would be reviewed each year as part of the annual workprogram. Bi-annual evaluations of the effectiveness of extension would bedone in cooperation with the Central Bureau of Statistics and private firms.

F. Implementation of New Project Components

4.15 ASAL Prototypes. MRDASAW has agreed that the ASAL prototypesshould be under the direction of MOLD. Details of the prototypes will bedesigned by MOLD in conjunction with the donor sponsored ASAL working group inKenya, which is headed by IDA. These prototypes are expected to be ready forimplementation within the fIrst year of the project.

4.16 Mass Media. Detailed plans for the implementation of thiscomponent would be developed by a consultant prior to Project start-up.Agreement was reached at negotiations that a qualified individual, acceptableto IDA, would be hired to manage this component and work closely with the AIC.It is expected that most of the new program development work would beundertaken by private firms and individuals who have been trained at theUniversities and at AIC.

4.17 Farmer Training Centers. The Government would prepare aframework for the management and financing of FTCs within the overallextension system. Prior to the rehabilitation of any FTCs, surveys of eachFTC would be carried out by private consultant architects and quantitysurveyors. Consultants would assess the rehabilitation work required, thecurrent status of furniture, machinery and equipment, required improvements todemonstration farms, and the costs of bringing the facilities up to agreed

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standards. A site survey and business plan including financial arrangements,managerial arrangements, staffing, and training programs, would be preparedand submitted to IDA for approval. The Project would fund the rehabilitationof three FTCs in the first three years of the Project. The progress made onrehabilitation, as well as the financial and managerial arrangements of eachFTC would be reviewed at midterm. The curricula and usage of the FTCs wouldalso be reviewed by IDA and other donors (para 2.53) at midterm. If theexperience with FTCs was found to be favorable, rehabilitation of other FTCswould proceed based on approved business plans and site surveys. Agreementwas reached during negotiations on the adequate provision of financial andmanpower support to the rehabilitated FTCs.

4.18 Farmer Service Centers. Market studies will be undertaken foreach pilot FSC site to determine the service and input requirements of thegeographical area. Once the studies have been completed, MOA and MOLD wouldissue requests for proposals .hat would include site designs, managementschemes, and costs. Each FSC would be individually designed to accommodatethe specific and unique needs of each area. Agreement was reached atnegotiations that the ministries would provide adequate financial and manpowersupport at these pilot FSCs.

4.19 Education. The study on agricultural educational institutionswould be under the supervision of the Working Group. The study would bedesigned with the full cooperation of the Ministry of Education, andimplementation of study recommendations would be discussed as part of themidterm review.

G. Donor Coordination

4.20 There was insufficient coordination of donor activities inextension under NEP I. Different divisions, eager for more resources, haveaccepted donor funds, along with donors' special interests. There are severaldonors involved with crop, livestock, and agroforestry projects that haveextension components (para 2.53). The ministries have started to recognizethe importance of donor coordination, and agreement was reached atnegotiations that MOA and MOLD would jointly host semi-annual meetings ofdonors involved with extension services and representatives from differentagricultural ministries to review implementation experience, and ensurecomplementarity of activities.

V. COST ESTIMATES AND FINANCING

A. Cost Estimates

5.01 The total cost of the project, including taxes and duties of KSH208m (US$9.3m equivalent) or 19 percent of total costs, is estimated atKSH1,077m (US$47.9m equivalent). Of this total, KSH404m (US$l8.Omequivalent), or 38 percent, are foreign exchange costs, and KSH673m (US$29.9mequivalent), or 62 percent, are local costs including taxes. All estimates

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are based on November 1990 prices and reflect recent quotations and estimates.Physical contingencies amounting to KSH46m (US$2.Om equivalent) or 5 percentof base costs have been included. Price contingencies amounting to KSH19Om(US$8.5m equivalent), or 23 percent of total costs have been estimatedaccording to the following rates of inflation per calendar year consistentwith latest Bank projections: 7.5 percent in 1991 and 5.5 percent from 1992onward for local costs; and 4.9 percent from 1991 onward for foreign costs. Asuimmary cost table is given below. Detailed cost tables are included in Annex1.

PROJECT COST SUMMARY

Local Foreign Total Local Foreign Total--------KSH H -------- ---------US$ M-

Organization and Management ofExtension ServicesMOA Extension - Headquarters 10.1 28.3 38.4 0.5 1.3 1.8MOA Extension - Field Offices 202.7 136.1 338.8 9.0 6.1 15.1MOLD Extension Services 58.7 40.7 99.4 2.6 1.8 4.4Monitoring and Evaluation 2.1 5.6 7.7 0.1 0.2 0.3

Extension MethodologyMass Media and Communications 28.9 33.8 62.7 1.3 1.5 2.8Farmer Training Centers 89.4 59.6 149.0 4.0 2.6 6.6Farmer Service Centers 11.2 6.6 17.8 0.5 0.3 0.8

Staff Training 102.2 8.8 111.0 4.5 0.4 4.9

Research-Extension Linkages 14.4 1.6 16.0 0.6 0.1 0.7

Total Baseline Costs 519.7 321.1 840.8 23.1 14.3 37.4Physical Contingencies 29.1 16.8 45.9 1.3 0.7 2.0Price Contingencies 123.9 66.3 190.2 5.5 3.0 8.5

Total Project Cost 672.7 404.2 1076.9 29.9 18.0 47.9

a/ Inclusive of duties and taxes of US$9.3 M

B. Financing

5.02 The proposed IDA Credit of US$24.9m would finance about 52 percentof the total project costs, net of taxes and duties. An additional US$6.Om ofexternal financing would be made available by IFAD under parallel financingthrough three IFAD projects (Annex 14). With the exception of technicalassistance, where IDA is financing the total amount, other costs are dividedbetween IDA and IFAD geographically; the Project districts not alreadyfinanced under IFAD's projects will be financed by IDA, and IDA would provideincremental resources to the districts covered by IFAD projects, as needed.IDA will finance about 80 percent of foreign expenditures and 51 percent of

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local expenditures. IFAD will finance about 20 percent of foreignexpenditures, and 12 percent of local expenditures. The Government willfinance 20 percent of total costs, net of taxes and duties, amounting to 37

percent of local expenditures. To ensure the availability of local funds, thebudgetary requirements indicated in the first year's annual work program (para4.02) would be reflected in the Forward Budget as a condition ofeffectiveness. Separate budget heads would be opened for IFAD and IDA in theGovernment's Development Estimates. The budgeting, disbursements, accounting,auditing, and claims for reimbursement under each head would be doneseparately. Agreement was reached at negotiations that the supervision of

NEP II would be done nationally. A Project supervision plan detailing the

timing and nature of supervision missions, procurement and disbursements, is

attached (Annex 15).

C. Procurement

5.03 Procurement arrangements for items financed by IDA are summarizedbelow:

Procurement Table "(US$ M)

ICB LCB OTHER NA 2/ TOTAL

CAT I (i) Vehicles 8.2 3.5 11.7(6.5) (6.5)

CAT I (ii) Furniture 0.3 0.2 0.5(0.1) (0.1)

Equipment 1.1 1.0 0.3 2.4(0.6) (0.1) (0.7)

Instructional 0.6 0.2 0.6 1.4Materials (0.3) (0.1) (0.4)

CAT II Civil Works 2.8 0.3 0.4 3.5(1.7) (1.7)

CAT III Incremental 18.6 18.6Operating Costs (7.0) (7.0)

CAT IV Training 0.9 6.0 6.9(0.9) (4.7) (5.6)

CAT V Tech Assistance 2.9 2.9(2.9) (2.9)

TOTAL 9.9 4.3 4.1 29.6 47.9(7.4) (2.0) (3.8) (11.7) (24.9)

1' Numbers in parenthesis are the respective amounts to be financed by IDAv/ Amounts included under Not Applicable (NA) column includes costs for

duties and taxes, local training, demonstrations and staff travel.

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5.04 The procurement of all Bank funded goods and services under theproject and review of procurement documents would be done in accordance withBank Guidelines (issued May 1985). In order to increase capacity andcapability in procurement, technical assistance would be provided (para 3.13).A procurement specialist in the Director of Agriculture's office and acounterpart at MOLD would have overall responsibility for all procurementmatters related to the project, including preparation of bidding documents,evaluating bids and finalizing contracts.

5.05 A Country Procurement Assessment Review including a Review ofProcedures for Government Procurement has been carried out for Kenya.Procedures for International Competitive Bidding (ICB) would follow BankGuidelines. Procedures for Local Competitive Bidding (LCB) shall be reviewedby IDA and include public bid opening, clear evaluation criteria, and localadvertising; award shall be made to the lowest evaluated responsive bidder.Procurement for project elements financed by IFAD would follow theirprocurement procedures. Where ICB procedures are used, qualified domesticmanufacturers would be allowed a margin of preference of 7.5 percent for civilworks and 15 percent for goods, or the existing rate of import duties,whichever is lower, over the CIF price of competing foreign suppliers. ForLCB, Government procedures were found to be acceptable, except for theprocurement of vehicles and hiring of consultants where preference is given tolocal firms.

5.06 Vehicles and Equipment. Funding is provided under the project inorder to increase staff mobility and replace old equipment as operationalsupport to MOA and MOLD. Vehicles and Equipment would be procured under ICBin accordance with Bank Guidelines. Items would be grouped in packages, tothe extent possible, in order to attract major dealers and suppliers.Contracts for less than US$50,000 up to an accumulated total of US$300,000,may be procured through LCB in accordance with procedures acceptable to IDA.Contracts for these items would be grouped in suitably sized packages for

better supplier response.

5.07 Civil Works. The Civil Works category consists of theconstruction of accommodation, offices, FTCs and FSCs at district and locationlevels. Many contracts for civil works, aggregating to US$1.7 H, financed byIDA would not be suitable for ICB because the value of each contract is small,the works are widely dispersed and construction protracted over the seven yearproject period. These works would be procured through LCB, under proceduressatisfactory to IDA, and where foreign firms are eligible to bid. The initialLCB document would be reviewed by IDA. To the extent practicable, contractswould be grouped in suitably sized packages to improve contractor response and

provide more competition.

5.08 Technical Assistance, Training and Fellowships. TechnicalAssistance to assist MOA in project implementation, preparation of studies andthe preparation of plans for the mass media component would be funded underthe project. Agreement was reached at negotiations that all IDA-financedconsultants would be selected through short listing and competitive proceduresin accordance with the Guidelines for the Use of Consultants by World BankBorrowers and the World Bank as Executing Agency (August 1981). Consultantqualifications, experience, conditions of employment and terms of reference

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would also be satisfactory to IDA. Financing would also be provided under theproject for improved staff training, focusing on both pre-service and in-service training and the provision of fellowships. Programs for training andfellowships, financed by IDA, would be reviewed annually by IDA.

5.09 The balance of project cocts would consist of incrementaloperating expenditures for vehicles, equipment and buildings, staff travel andfield demonstrations which would not involve procurement and would followGovernment procedures.

5.10 Review of Procurement. Bidding packages estimated to cost overUS$100,000 for civil works, goods and equipment procured under ICB would besubject to the Bank's prior review of procurement documentation. Contractsbelow these limits would be subject to selective post-award review. Thusabout 75 percent of the total contract value of Bank procurement would besubject to review. It is expected that 56 percent of goods financed by IDAwould be procured through ICB, 15 percent through LCB and 29 percent by othermethods.

5.11 Recording of Procurement Information. On appointment, theprocurement specialist in the Director of Agriculture's office and thecounterpart at MOLD would prepare their proposals for collecting and recordingdata on project procurement. This would include: the periodicity and contentof field reports and consultant performance evaluations; the preparation bythe Government of quarterly revised cost estimates and timing for allcontracts and other project expenditures; the preparation of CompletionReports within a specified period from the loan closing date; and at the timeof supervision missions, a detailed statement of all procurement undertakento-date together with a forward forecast of anticipated procurement to beundertaken in the coming year with estimated costs.

D. Disbursement

5.12 Disbursements. IDA disbursements for expenditures net of taxesand duties, will be on the following basis:

Cat I(i) Vehicles lOOZ of foreign expenditures (CIF)and lOOZ of local expenditures (ex-factory)

Cat I(ii) Furniture, Equipment and 10OZ of foreign expenditures (CIF)Instructional Materials and 10O of local expenditures (ex-

factory)Cat II Civil Works 1001 of foreign expenditure

and 50Z of local expenditureCat III Incremental Operating Costs 40Z of total expenditures for the

first four years and 202 of totalexpenditures thereafter

Cat IV Training 10O2 of foreign expenditure and75Z of local expenditures

Cat V Technical Assistance 10OZ of total expenditure

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5.13 Disbursement categories have been designed so that each categorycorresponds to a group of accounts in the Government ledger, in order thatstatements of expenditure (SOEs) may be supported by copies of the relevantledger accounts as well as supporting documentation. Disbursements for localtraining costs and incremental operating costs, which would include theoperation and maintenance of buildings, vehicles and equipment, staff travel,and field demonstrations, will be made against SOEs, which will be preparedmonthly. SOEs will be certified by the Director of Agriculture and theDirector of Livestock Development and supporting documentation retained andmade available for review by IDA during the course of project supervisionmissions. Disbursements against all other items would be fully documentedexcept for items costing less than US$20,000 where certified SOEs will beused. It is anticipated that the credit would be fully disbursed over aneight year period; an indicative schedule of disbursements is shown in Annex1. NEP I disbursements spanned an eight year period rather than the fiveyears originally anticipated. This was largely due to procurement problems inthe early years of the project (para 2.51), which are being resolved underthis Project (para 5.11). It is anticipated that this Project would thereforefollow the standard disbursement profile for agricultural operations in Kenya.

E. Special Account

5.14 In order to facilitate implementation of the Project, it isimportant that funds are readily available. Upon credit effectiveness, aforeign exchange Special Account with an initial deposit of US$1.5mequivalent, representing about three months expenditure, funded by IDA wouldbe established with a commercial bank through the Central Bank of Kenya, onterms and conditions satisfactory to IDA. Replenishment of this SpecialAccount would be requested in line with Bank guidelines. This Special Accountwould operate under procedures acceptable to IDA.

F. Accounts and Audit

5.15 Audited accounts for NEP I are severely delayed. As a conditionof credit effectiveness, complete and certified audited project accountscovering the period up to June 30, 1990 for NEP I, prepared by independentauditors, acceptable to IDA, would be submitted to IDA. Complete andcertified audited project accounts covering the period from July 1, 1990 toDecember 31, 1990 would be submitted to IDA by March 31, 1992.

5.16 The responsibility for auditing MOA's accounts, as in the case ofall Government entities, lies with the Auditor General. At the end of eachfiscal year the Auditor General would determine his office's ability to carryout the audit on time and decide whether to appoint independent auditors,satisfactory to IDA, to audit the project accounts, the Special Account at thecommercial bank and the SOEs. Accounts would be maintained in accordance withsound and generally accepted accounting principles and practices acceptable toIDA. Records would be kept permitting identification of all receipts andpayments under the project. Financial statements, including a sources anduses of funds statement, would be prepared at the close of each fiscal year.

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A certified copy of the accounts, together with the auditors report, would besubmitted to IDA within nine months of the close of each fiscal year,including a separate opinion on the Special Account and on the records andaccounts used to support disbursements against SOEs.

VI. BENEFITS AND RISKS

A. Benefits

6.01 The proposed project focusses on creating a strong and dynamicagricultural extension system which effectively delivers technical messagesparticularly tailored to farmers' needs and aimed at increasing yield levelsfor both staple food and export crops. The Project would thereby raise ruralincomes and employment and contribute towards the national objectives of self-sufficiency in staple foods and increased export earnings from theagricultural sector.

6.02 Economic analysis is generally not undertaken for extensionprojects, given the difficulties of ascribing benefits to the adoption of newpractices. Using data from Murang'a district the potential impact on farmergross margins of two extension messages for maize for which field and researchdata are available (higher plant population and early planting), wascalculated. Given this partial analysis and making conservative assumptionsabout the number of farmers reached and their adoption rates, the results showthat the increase in farmers' marketed output of maize could account for asmuch as 1 percent of agricultural GDP each year (Annex 2).

6.03 An attempt was made to quantify the impact of the economicbenefits attributable to the adoption of these extension messages. Field andresearch data indicate that by adopting extension messages aimed at increasingmaize population, small farmers (defined as farmers with between 0.4 and 0.7ha of maize, using minimal fertilizer or chemical inputs) can achieve yieldincreases of 26 percent, and medium farmers (defined as having 0.5 to 1.4 haof maize, and using fertilizer and chemical inputs) can achieve yieldincreases of 27 percent. It is assumed that of a new group of farmersreceiving these higher plant population messages, five percent will adopt thepractices in the first year, 15 percent in the second year, 35 percent in thethird year, 60 percent in the fourth year, and 65 percent in the fifth year.The data indicate that for another extension message, early planting of maize,the results are more dramatic; small farmers can increase yields by 50 percentfrom current levels while medium farmers can increase yields by 35 percent.It is assumed that of a new group of farmers receiving these early plantingmessages a total of 5 percent will adopt in the first year, 15 percent in thesecond year, 35 percent in the third year, 60 percent in the fourth year and70 percent in the fifth year. Several conservative assumptions have beenmade: (a) it is estimated that given the changes in staff deployment takingplace as a result of the Project, each extension agent could meet two groupsof 20 farmers, as opposed to one group of 15 farmers, in addition to theirregular contact farmer visits; (b) all project costs, except those directlyattributable to pilot projects, are assumed to support the benefits derivable

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from yield increases in maize; and (c) it is assumed that benefits from theproject will only derive from the adoption of these two extension messages onmaize. Given these assumptions, the Project could have an economic rate ofreturn of 15 to 28 percent (Annex 4).

B. Risks

6.04 The risk of a breakdown in cooperation between MOA and MOLD wouldbe reduced through the establishment of a Steering Committee and WorkingGroup, and binding annual work plans agreed with IDA. The risk of failing totranslate research findings into appropriate technology would be reduced byinstitutionalizing research-extension linkages. MOA, MOLD and KARI havesigned Memoranda of Understanding detailing their responsibilities. Seriousconstraints to supervision and operations caused by lack of mobility would beaddressed through the provision of appropriate transportation equipment.Expenditure imbalances would be adjusted through adherence to norms, andprocedures established for their review. Progress under the Project would bemonitored through improved monitoring and evaluation of extension services, abetter impact assessment system, and a midterm review.

C. Impact on Government Cash Flows

6.05 The Government cash flows for the Project indicate that theGovernment will have a net inflow of cash in the first seven years of theProject, turning slightly negative in year eight as a result of debt servicepayments. The cash flows remain negative thereafter, reaching a maximum ofUS$4.4m in year 21, as a result of debt service and incremental operatingexpenditures and replacement investments necessary to sustain the impact ofthe Project. The foreign exchange cash flows are positive in the first eightyears, turning negative in year nine, up to a maximum of US$3.0m in year 21.These cash flows are based on the conservative assumption that the Projectdoes not generate any revenues for the Government. These cash outflows arewell within the financial capacity of the Government; the maximum cash outflowof US$4.4m represents eight percent of MOA's total expenditures in FY1990/1991 and the maximum foreign exchange outflow represents five percent ofMOA's FY 1990/1991 expenditures (Annex 3).

D. Sustainability

6.06 There are two aspects to sustainability, institutional andfinancial. The T&V system of extension management, as implemented under thefirst phase project, is sustainable; although there are clear shortfalls insupervision and monitoring of the system, the management of extension at thefield level is strong and sustainable. This second phase project introducesinnovations in extension management and methodology. The Project includesprovisions for training, technical assistance and supervision to ensure thatat the end of the seven year project period there will be adequate managerialcapacity to sustain these innovations.

- 37 -

6.07 The extension system in Kenya is fully developed as a result ofthe first phase project. This Project finances the replacement of capitalgoods and extends the system to more administrative areas so as to completeits geographic coverage. The extension system currently accounts for 39percent of the total operating expenditures of MOA, 11 percent of the totalinvestment expenditures of MOA, and 32 percent of total HOA expenditures.Incremental operating expenditures on extension as a result of the Projectwould account for one percent of the total operating expenditures of MOA.FTCs currently account for 2.4 percent of total operating expenditures of MOA,2.6 percent of total investment expenditures and 2.4 percent of total MOAexpenditures. Incremental operating expenditures of fully operational FTCswould account for 1.6 percent of MOA's total operating expenditures. Theserecurrent costs can be supported by the Government, especially since stepswould be taken under the Project to improve the efficiency of the extensionservice, and the FTCs would generate income from operations in the form oftraining fees and sales of farm produce.

E. Environmental Effects

6.08 Under NEP I, effective work was undertaken to disseminatetechnology to protect the environment and to assist farmers in soil and waterconservation. In the proposed Project this excellent work will be continued.The decision to base technical packages mainly on the results of farmingsystems research will ensure that recommended measures to increase productiontake due account of the need for long-term resource conservation, andmaintenance of the productive potential of the natural resource base. In thedevelopment of new technologies in the areas of plant nutrition and pest anddisease control, KARI plans a major thrust in the use of organic wastematerials and integrated pest management. The Project would, through thedissemination of new technologies on fertilizer and plant protection,contribute to the development of farming practices which protect agro-ecological systems.

F. Impact on Women

6.09 The national agricultural extension system, assisted by NEP I, isone of the leading sources of agricultural advice for women and addresses manyof the constraints they face. In general, women are very receptive toextension advice. Contact with women's groups is proving to be particularlyeffective in transmitting agricultural technical recommendations, and effortsto recruit and use women's groups for regular contact by frontline extensionstaff and to hold quarterly workshops for women's group representatives arebeing promoted under the proposed Project (para 3.09). Even though few newstaff will be hired into the service, the hiring of women as frontline agentsis encouraged (para 4.09). In addition, women would be provided with betteraccess to relevant agricultural information through (a) fully integrating homeeconomics staff, and messages, into the frontline (para 3.07); (b) use of massmedia to reach women directly (para 3.14); (c) including more gender-specifictopics in agricultural training curricula (para 3.19); and (d) development ofappropriate technology, including labor saving devices and food processingtechniques (para 3.24).

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VII. Agreements and Recommendation

he following agreements were reached during negotiations:

(1) the prototype projects to be implemented in Turkanaand Wajir would involve the training of pastoraliststo serve as extension agents and would focus on waterconservation and development, livestock production andhealth (para 3.05);

(ii) MOA and MOLD would assign enough people to theircentral monitoring units to specifically focus onmonitoring extension services (para 3.10);

(iii) the Government would set up a system by September 30,1992 involving two pilot districts to use computerizedsoftware and hardware to collect, monitor and analyzecritical information (para 3.11);

(iv) impact assessment studies would be completed prior tothe midterm review according to terms of referenceacceptable to IDA (para 3.12);

(v) the Government would prepare a framework for themanagement and financing of FTCs and would selectthree FTCs to be rehabilitated during the first threeyears of the project (paras 3.16, 4.17);

(vi) that MOA and MOLD will provide sub-AIEs to KARI (para3.24);

(vii) the Government would establish an inter-ministerialSteering Committee which would be responsible foroverall project implementation (para 4.01);

riii) the Government would establish a Working Groupreporting to the Steering Committee to oversee theimplementation of the project (para 4.01)

(is) MOA and MOLD through the Working Group would providereports twice a year on Project Implementation (para4.01);

(s) the Working Group shall prepare detailed annual workprograms and shall furnish them to IDA for approval byJanuary 31 of each year (para 4.02);

(xi) a midterm review of the Project shall be conducted onor before June 30. 1994 (para 4.03);

- 39 -

(xii) HOA shall implement cost recovery measures forextension staff seconded to KTDA in a phased mannerstarting in 1992/1993 and achieving full cost recoveryby 1994/1995 (para 4.05);

.iii) HOA shall charge fees for the services rendered by HOAcoffee engineers to coffee factories (para 4.05);

(xiv) a study of the organization of HOA and HOLD shallbe completed by January 31, 1994 (para 4.07);

(xv) the Government would implement an action plan, untilproject completion, on achieving appropriate stafflevel in HOA and HOLD and raising the ratio of non-salary to salary operating expenditures (para 4.08);

(Zvi) the cooperative arrangement between HOA and HOLD wouldbe implemented at a rate of about 10 districts peryear, and would be completed by the time of themidterm review (para 4.09);

Kvii) by January 31, 1994, a staff deployment study would beundertaken covering the MOA-HOLD extension system;while the study is being completed, new hiring at HOAand HOLD would be consistent with staffing normsacceptable to IDA (para 4.09);

viii) a qualified individual, acceptable to IDA, would behired to manage the mass media component (para 4.16);

(xix) adequate provision of financial and manpower supportto rehabilitated FTCs and pilot FSCs (paras 4.17 and4.18);

(4x) MOA and HOLD shall jointly hold semi-annual meetingswith donors; (para 4.20);

(xxi) that the Project would be supervised nationally (para5.02).

ixii) that consultants would be hired according to IDAprocedures, with terms of reference approved by IDA(para 5.08);

ciii) the Government shall before March 31, 1992 providecertified audited accounts for the period July 1 toDecember 31, 1990 for NEP I (para 5.15);

mditions of Credit Effectiveness would be:

L) that an annual work program has been prepared forfiscal year 1991/1992 and approved by IDA (para 4.02);

- 40 -

(ii) implementation of the cooperative agreement betweenHOA and MOLD, acceptable to IDA, on a pilot basis intwo districts (para 4.09);

(iii) that the Forward Budget contains adequate budgetaryrequirements for the Project '>k.ra 5.02); and

(iv) the submission to IDA of audited accounts for NEP Icovering the period up to June 30, 1990 (para 5.15).

Recommendation

7.03 With the above agreements and conditions, the project would besuitable for a credit of SDR 17.4m, (US$24.9m equivalent) to the Government ofKenya on standard IDA terms, with 40 years maturity.

KENYASECOND NATIONAL AGRICULIURAL EXTENSION PROJECT

PROJECT COST SUMMARY

(SHIlLINGS '000) 1US$ '0001 % Total--- ^-------------------------- - ------------------------ I Foreign Baselocal Foreign Total Local foreign Total Exchange Costs

A. ORGANIZATION AND MANAGEMENT OF EXITESION SERVICES

1. MOA EXIENSION SERVICES - HEADQUARIERS 10.057.6 28.335.0 38. 392 7 447.0 1.259 3 1.706.3 74 52. MOA EXTENSION SERVICES - FIELD OFfICES 202.718.4 136,061.3 338.779.7 9.009.7 6.047.2 15.056.9 40 403. MOLD EXTENSION SERVICES 58. 733. 1 40, 660. 7 99,393.8 2,610.4 1. 807. 1 4,417.5 41 124. MONITORING AND EVAtUATION 2,072.6 5629.5 7,702.1 92.1 250.2 342.3 73 1

Sib-Total ORGANIZATION AND MANAGEMENT Of EXTENSION SERVICES 273.581.7 210,686.5 484.268.2 12. 159.2 9,363.8 21.523.0 44 588. EXTENSION METHODOLOGY

1. MASS MEDIA AND COMMUNICATIONS 28, 875.0 33, 794.0 62. 669. 1 1. 283. 3 1, 502. 0 2. 785. 3 54 72. FARMER TRAINING CENTERS 89.453.8 59.565. 1 149.018.9 3.975.7 2.647.3 6.623. 1 40 183. FARMER SERVICE CENTERS 11.215.6 6,605.8 17.821.4 498.5 293.6 792.1 37 2

Sit-Total EXTENSION MIEIHODOLOGY 129.544.4 99.964.9 229;509.3 5.757.5 4.442.9 10,200.4 44 27C. STAFF IRAINING 102.216.0 8,754.0 110.970.0 4.542.9 389. 1 4.932 0 8 13D. RESEARCH EXIfNSION lINKAGfS 14,455.0 1,592.5 16.047.5 642.4 70.8 713.2 10 2

Total BASEtlINE COSIS 519,797.1 320,997.9 840,795.0 23,102.1 14,266.6 37,368.7 38 100Physical Contingencies 29, 094.9 16.826.1 45,921.0 1.293.1 747.8 2,040.9 37 5Price Contingencies 123. 942. 6 66. 295. 7 190.238.3 5. 508. 6 2. 946 5 8,455. 0 35 23 _Fotal PROJECT COSTS 672,834.6 404, 119.8 1,076,954.3 29,903.8 17,960.9 47,864.6 38 128

Notaemer 20. 1990 14:04

If'a

NI

-4

KENYASECOND NATIONAL AGRICUITURAL EXTENSION PROJECT

SUMMARY ACCOUNTS COSI SUMMARY

ISHILLINGS '0001 (USS '0001 Z total------------------------------- -------------------------- % Foreign Base

Local foreign Total Local foreign lotal Exchange Costs

I INVESIHENF COSTS.. . .. . .....

A. CIVIt WORKS 47.419.6 11.854 9 59.274.5 2, 107.5 526.9 2.634.4 20 7B. VEHICLES 74.068.1 137.555.1 211,623.2 3,291.9 6. 113.6 9,405.5 65 25C. EQUIPMENT

OFFICE EQUIPMENT 4,104.0 4,104.0 8,208 0 182 4 182.4 364.8 SO 1FIEID EQUIPMENT 13.619 8 1,513. 3 15. 133.1 605.3 67.3 672.6 10 2TRAINING EQUIPMtENT 4.327.2 1, 081.8 5.409 0 192. 3 48. 1 240.4 20 1FARM EQUIPMENT 9. 660.0 17,940.0 27, 600.0 429. 3 797. 3 1.226. 7 65 3AUDIO - VISUAt 11.038.4 11,038.4 22,076.7 490.6 490.6 981.2 SO 3. ......... ......... .... ... ..... ...... ...... . -- - -- -- - -- - - - -- - -Si-Total EQUIPMENT 42.749 3 35. 677.5 78.426.8 1,900.0 1.585.7 3.485.6 45 90. TRAINING 113,713.5 8,754.0 122,467.5 5,053.9 389. 1 5,443.0 7 I5E. TECHNICAL ASSISTANCE 11,452.S 41. 175.0 52,627.5 509.0 1.830.0 2.339.0 78 6

.. . .. . . . .. .. . . . . ... . . . ..... .. . . . ...... . - -Total INVESIMENT COSIS 289.403.0 235.016.4 524,419.4 12,862.4 10,445.2 23.307.5 45 62

II. RECURRENT COSIS

A. OPERAIIONS AND MAINTENANCE

VEHICLES 137.761.0 74.179.0 211,940.0 6.122.7 3.296.8 9,419.6 35 25EQUIPMENT 8,238.9 8,238.9 16,477.9 366 2 366.2 732.3 50 2CIVIL WORKS 8,278.2 2.069.5 10. 347. 7 367.9 92.0 459.9 20 1- - I.. -- -- - - - - - -- . .... .. --- -- -- - .... . ..

Sub-Total OPERATIONS AND MAINIENANCE 154.278.1 84,487.5 238.765.6 6.856.8 3.755.0 10,611.8 35 28S. STAFF TRAVEL 70. 140.0 70. 140.0 3.117 3 - 3,117.3 - 8C. DEMONSTRATION 5,976.0 1.494 0 7,470.0 265.6 66.4 332.0 20 1-- - - - - .. . . . .. . .. . -- -- - - - - - - - .. .. . . -- - -

Total RECURRENT COSIS 230.394.1 85.981.5 316,375.6 10,239.7 3.821.4 14,061.1 27 38Total BASEtlINE COSTS 519.797.1 320.997.9 840,795.0 23.,02.1 14.266.6 37,368 7 38 100Physical Contingencies 29.094.9 16,826.1 45,921.0 1.293.1 747.8 2,040.9 37 5Price Contingencies 123,942.6 66,295.7 190,238.3 5,508.6 2,946.5 8,455.0 35 23

Total PROJECI COSTS 672.834.6 404.119 8 1.076,954 3 29,903.8 17,960.9 47.864.6 38 128

Noveuber 20. 1990 14:04

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KENYASECOND NATIONAL AGRICUITIURAL EXTENSION PROJECT

Project Components by Year

lotals Including ContingenciesISHILLINGS '0001

1991 1992 1993 1994 1995 1996 1997 Total

A. ORGANIZATION AND MANAGEMENT OF EXTENSION SERVICES

1. MOA EXIENSION SERVICES - HEADQUARIERS 6,3b5.5 11.064 2 8,894.1 6.972.9 2.751.3 7.306 8 3,608.2 46,952.92. MOA EXTENSION SERVICES - fIEtD OFFICES 44,975.6 47.476.2 56.251.5 63.348.9 71.91 5 76,394 9 73,431.8 433,870 43. MOtD EXTENSION SERVICES 13.740 I 10. 172 9 11.778.1 28,861.7 20,467.9 22.786 6 19,814.8 127,622.24 MONITORING AND EVAEUATION 5,295 3 158 4 166 6 2.180 1 357 4 376 0 395 5 8.929.3

... .. .. .... .. .. ... ... .. ... I.... .. . .. ... - - .. -- - -- -- -- ----------

Sib-Total ORGANIZAIION AND MANAGEMENT OF EXIENSION SERVICtS 70.366 5 68.871 6 77.090 3 101,363.6 95.568. 1 106,864.3 97.250.4 617,374.7

8. EXtENSION METHODOtOGY

I MASS MEDIA AND COMMUNICATIONS 18.908.8 10.543.6 11.320 4 12, 149.5 7.492.5 7. 78.9 8.285.4 76.579. 12. FARMFR IRAINING CINTERS 10,522.8 18. 180.3 21.613 6 25.357 3 35,878 3 41.b15 6 47.856.6 201.024 43. fARMER SERVICE CENTERS - 11,509.9 3,265.7 1,590.8 1.673 8 1.761 1 1.853.1 21,654.4

Sub-lotal EXTENSION METHODOLOGY 29,431.6 40.233 8 36.199.6 39.097.6 45.044 6 51.255 6 57,995.0 299.257 9

C. STAff TRAINING 70.820.3 25,619.2 19,749.7 17.242. 1 17.916 6 18.891.7 19,515.5 139,755.2

0. RESEARCH EXIENSION tlINKAGES 2,494.2 2.629 3 2.771.7 2.921.8 3,080.0 3.246 9 3,422.8 20.566 5 4>

lotal PROJECT COSTS 123 112.6 137.353 9 135, 811.3 160,625.1 161,609.3 180,258 5 178, 183.6 .1,076,954.3

November 20. 1990 14 04

I.W .

lotals Including Contingencies1US$ 0004

1991 1992 1993 1994 1995 1996 1997 total

282.5 491.7 395.3 309.9 122.3 324. 7 160.4 2,086.81.998. 9 2. 110. 1 2.500.1 2. 815.5 3. 199.6 3.395.3 3,263.6 19. 283. 1

610.7 452.1 523.5 1.282.7 909.7 1.012.7 880.7 5.672.1235.3 7.0 7.4 96.9 15.9 16.7 17.6 396.9

3,127.4 3,061.0 3,426.2 4.505.0 4.247.5 4.749.5 4,322.2 27.438.9

840.4 468.6 503. 1 540.0 333.0 350.2 368.2 3.403.5467. 7 808.0 960.6 1. 127.0 1,594.6 1.849.6 2. 127.0 8,934.4

- 511.6 145.1 70.7 74.4 78.3 82.4 962.4-- -- - - -- - -- - . . . ....... .. ... .. . .... . ... . .

1.308. 1 1. 788.2 2.608 9 1. 737. 7 2.002. 0 2.278.0 2.577.6 13.300.4925.3 1. 138.b 877.8 7fil, 3 79G 3 839.6 867.4 6.211.3110.9 126.9 123.2 129.9 130.9 144.3 152. 1 914.1

-- . .- ..... .. . - - - - ..... . ....... .. .. ... .

5.471.7 6. 104.6 6.036. 1 7, 138.9 7. 182.6 8.011.5 7,919.3 47,864.6

0

Ih

0

C:0

I,.

SCCONIO NIAFIOtIA AGOICU LIuRAt EXTENSION PROJECTSwumary Acca..nts by Year

totals Including Contuingoncios Totals Intcludintg Cont sgm.ctosISHIIL3IIGS 10001 (US$ '0001

1991 199? 1993 19194 3999 19916 1997 Iota1

1993 2992 1993 1994 2999 1996 1997 Total

i. lNVEStMNt3 casts

A. CIVIL WORKS 9.933 7 14.97? 3 11.524 5 9.280.4 12.299 10.441 8 11:002 2 79.415 7 441.5 665 7 512 2 412.5 544 7 464 1 489.0 3.529.68 VEhICLES 36.4aS.6 37.562 4 35.071 9 48.412 3 37.92t .~ 42.239 4 25.469 4 263.166 9 2.621261.669.4 1,558.8 2. :927 3.685 6 2.8?7 321.132 011.696 3C. 19411P63?

OIFIC EQUIP11EN3 1.770 8 1:233.9 1,295.6 2.032,4 2,506.9 2,f41.2 1.198 2 10. 280.8 78 7 94.8 97 6 90.3 67 3 so 7 53 3 4529SFiELD EQUIPRNCt 2. 843. 3 3. 493 4 1. 990. : 3.9530, 6 2, 262. 2 2.384 4 2,9313. 2 19.017 0 126 4 399 3 68 4 356.9 t0'o,S 06. 0 3ll. 7 845.229*13136 EQUIPMIENT 1.741 6 823.9 829 8 1, 613. 4 907.9 934.9 963 3 6, 600. 8 77 4 36.2 36.? 71 7 2. 6 23.8 29.0 293.4FARM EQUIPMIENT 2.606 0 4.108 7 4.316 7 4,5391.5 6.362. 1 6.687 5 7.029,9 35.65? 1 229.8 382.6 293.9 202 6 282 8 297 2 312 4 1.584 5AUDIO - VISUAL 10. 336. 0 4, 661.89 4.694 9 9.3139.?7 121. 3 327. 3 133 9 25.414 3 499.4 207 2 217 6 228 4 5 4 5.7I S.9 3,329.5Sub-lotaI EQJIP3IEN2 19.297.9 14. 312.7 13. 329.0 16.855.6 :0. 762 2 10. 875. 1 32. 437.?7 96. 864.? 8 57. 7 636.2 9 92 2 749 2 478.3 463.3 506. 3 4.309.20 IRAINI3G 22. 608.3 27.5905.6 22. 739 6 19.342.7 20.1332.6 23,228.6 22. 980.8 :94.936.4 1. 004.8 3.222 9 966 2 899 6 894 7 943.5 976.9 6. 868.3E. tEHICIlI* AF.SISIAII( 23, 007. 8 20.282 3 10. 798.0 7,5.9IIS 7.477 6 7.8958.?2 8.258 2 64. 797.2 978 1 457 0 479.9 316.2 332 3 349. 3 367.0 2, 879. 9

Total INVESTMENTY COStS :02.332 8 :04.639 0 92.4S9 2 101.009. 3 88.553 2 92.643 3 78. 348 4 698,780.9 4,903.7 4,6064.109 3 4489 2 3.935 7 4.1:7.9 3.473 3 29.279.2

II. RECUJRRENT COSTS

At. OPERATIONS AND NAINTENIAWCE

VEHllICS 9.377. 2 38. 202. 8 26,668.3 40.904.1 2 92393.5 63. 290.8 72. 786 6 282.1243.3 416 8 809.0 2. 189 3 2.8$00.? 22.262. 4 2.8Sit. t 3.239. 0 12.9539, 7EOIJIPIENT 938.9 1.998.2 2,324.0 3.192,9 3.854 3 4.554 6 9.317 4 22. 778 9 41 7 73 0 303 3 141 9 373.3 202 4 236.3 968.0CIVIL WORKS 360. 6 890. 6 1. 349. 7 .859,4 2.924.? 3. 236. 9 3,807.9 13. 925 4 16. 0 39. 6 60 0 82.9 312 2 139.4 269.2 638. 9S.4,-total OPERATIONS AND IIAIN2EN£3CE 2,76. 20,693.6 30,341.9 459,591.9 97, 732. 5 70.942 3 81.911 9 317.847 6 474 9 9:9.6 1.348 9 2,024.5 2.565 9 3,293.0 3,640.5 14. 126 6B. SIAfF tRAYEL 10. 907 6 fI:.507. 9 22. 140. 5 22,808.2 23.512 6 24, 295.8 29.039 9 90.1:72 1 484 8 911 4 539.6 569 3 bOO 6 633 6 668. 4 4.007 7 C. OEN3STRAtJOll :99.8 539 8 869.7 1, 260. 2 '2, 8321.0 2, 437.4 3.083 8 10.1293 6 8. 7 22 9 38.7T 56. 0 60.9 :07.4 :37.21 452. 3 I

tota3

RECURRENT COSTS 21. 779.?7 32. 735 0 43.352 I 59. 639 9 73,096.3 87.639 9 200.035 2 438. 273 4 968.0 1.454 0 3.926 8 2.649 8 3.246 9 3.894,0 4.446 0 38,989.9Ttoal PROJECT COSTS 123.3112.63137.353 9 135.8:1 3 160.62S I 161.60903 380,258.5 :78.1838 1.076.994 3 9. 47:76.3104 6 6. 036.217,133897.182 68.0:397 .9g39347.884 6

Novemer 20. 2990 24.04

p.

KENYASECOND NATIONAL AGRICULTURAL EXTENSION PROJECT

Financing Plan by Project ComponentsCUSS ' 0001

INTERNAT IONALINTERNATIONAL FUND FORDEVELOPMENT AGRICULTURALASSOCIATION DEVEtOPtENF Government Total

------------- ------------- ------------- -------------- Local tExcl. Duties 8mount 1 Amount I Amount 2 Amount 2 for. Exch. Taxesl Taxes

A. ORGANIZATION AND MANAGEMENT OF EXTENSION SERVICES

1. MbA EXIENSION SERVICES - HEADQUARFERS I. 553.2 74.4 148.0 7. 1 385.6 18.5 2.086.8 4.4 1.528. 2 290.6 268.02. NOA EXTENSION SERVICES -F IELD OFFICES 8.239. 4 42. 7 2.416. 4 12.5 8.627. 4 44.7 19. 283.1I 40.3 7.642.5 6.632. 7 5.00?. 93. MOL EXTENSION SERVICES 2,414. 5 42.6 766.2 13.5 2. 491.4 43.9 5.672. 1 11.9 2.274. 9 1.777. 3 1.620 04. MONITORING AND EVALUATION 272.0 68.5 31.2 7.9 93.7 23.6 396.9 0.8 283.2 39.7 74.0

Sib-Total ORGANIZATION AND MANAGEMENT OF EXTENSION SERVICES 12,479.0 45.5 3,361.8 12.3 11,598.0 42.3 27.438.9 57.3 11,728.7 8.740.3 6.969.99. EXTENSION METHODOLOGY

I. MASS MEDIA AND COMMUNICATIONS 2.324. 6 68.3 310.0 9.1 768.9 22.6 3.403.5 7.1 1.828.8 l.084.9 489.82. FARMER TRAINING CENTERS 3.942. 5 44. 1 1. 540.0 17.2 3.451.9 38.6 8,934.4 18. 7 3.472. 2 3.992. 2 1.470. 03. FARMER SERVICE CENTERS 417.8 43.4 139.8 14.5 404.8 42.1I 962.4 2.0 353.1I 358.5 250.7 0

Sub-Total EXIENSION MEIHODOLOGY 6.684.9 50.3 1.989.8 15.0 4.625.7 34.8 13,300.4 27.8 5.654.2 5.435.6 2.210. 6 C. STAFF TRAINING 5.066.9 81.6 572.2 9.2 572.2 9.2 6211.3 13.0 489.0 5.722.4 -D. RESEARCH EXTENSION I INKAGES 630. 6 69.0 109.7 12.0 173.8 19.0 914.1I 1.9 89.0 747.9 77. 1

total Disbursement 24.861.4 51.9 6,033.5 12.6 16. 969.8 35.5 47.864.6 100.0 17. 960.9 20. 646.1 9.257.6

November 20. 1990 14:04

Io-4h

IEIIYASECOND NATITONAL AGRICULTURAL EXTENSION PROJECT

financing Plan by Sumary Accounts1USS '0001

INTERNAIIONALINTERNATIONAL fUND FORDEVEtOPHENI AGRICULTURALASSoCIArIoN DEVELOPHENI Government Total

------ w------ ---- ^--------- .....-------- -------------- Local IExcl. Duties 3Amount t Amount Z Amount I Amount I for. Exch. Taxes) laxes

I. INVESIIENI COSTS

A. CIVIL I4ORltS 1.710. 1 48.4 671.4 19.0 1. 148. 1 32.5 3.529.6 7.4 694.7 2.411. 3 423.68. VEHICLES 6. 452. 6 55. 2 1. 138. 7 9.7 4. 105.0 35. 1 11. 696. 3 24.4 7. 591. 3 596. 1 3,508. 9C. EQIIIPNENT

OFfICE EQUIPMENI 146.6 32.4 78.9 17.4 227.0 50.2 452.5 0.9 225.5 46.0 181.0fiflD EGUIPNENI 54.0 6.4 29. 1 3.4 762. 1 90.2 845.2 1.8 83.1 424.0 338.1IRAINING EQUIPMENT 37.7 12.9 20.3 6.9 235.4 80.2 293.4 0.6 58.0 118.0 117.3fARM EQUIPMENT 663.7 41.9 357.4 22. 6 563.4 35. 6 1. 584. 5 3.3 1.021. 2 563.4 -AUOIO * VISUAL 366.4 32.4 197.3 17.5 565.8 50. I 1 129.5 2.4 563 7 114.0 451.8

. .. .. .. .. .. - - -... - -- -. -. - - .. - - .. - - - -------- ---- -- ------------

Sub-total tQUIIqtLNl 1.,268.4 29.5 683.0 15.9 2.353. 654.7 4.305.1 9.0 1,951.5 1,265.4 1,088.2 1D. TRAINING 5. 592. 4 81.4 637.9 9. 3 637.9 9.3 6, 868.3 14.3 489.0 6. 379.3 -E. TECIINICAL ASSISTANCE 2.879.9 100.0 - - - - 2,879.9 6.0 2,218.2 661.7 --- - - - - - - - - - . . . . - - -- - --- - - - - - - - - -- - -- - -- - - - - - - - - -

Iotal INVESTMENT COSTS 17. 903. 4 61. 1 3. 131.0 10.7 8. 244.7 28.2 29,279.2 61.2 12.944.7 1.,313.8 5.020.7

11. RECURRENT COSTS

A. OPERATIONS AND MAINTENANCE

VEHICLES 5. 115.9 40.8 2. 144.4 17. 1 5,279.3 42. 1 12.539.7 26.2 4,329.2 4.448.6 3,761.9EQUIPMENT 458.9 47.4 193.8 20.0 315.3 32.6 968.0 2.0 477.6 490.4 -CIVIL IORlS 211.2 34.1 87.6 14.2 320.0 51.7 618.9 1.3 121.2 423.5 74.3

Sub-Total OPERATIONS AND MAINTENANCE 5,786.0 41.0 2.425.8 17.2 5.914.7 41.9 14, 126.6 29.5 4,928.0 5.362.4 3.836.2B. STAff IRAVEL 1.017.9 25.4 412.8 10.3 2.576.9 64.3 4,007.7 8.4 - 3,606.9 400.8C. DENONSTRATION 154.0 34. 1 63.9 14.2 233.4 51.7 451.3 0.9 88.2 363.1 -

lotal RECURRENI COSTS 6.957.9 37.4 2,902.5 15.6 8.725.1 46.9 18,585.5 38.8 5,016.2 9.332.3 4,236.9Total Disbursement 24,861.4 51.9 6,033.5 12.6 16.969.8 35.5 47,864.6 100.0 17,960.9 20,646. 1 9,257.6

November 20, 1990 14: 04

00(Di

-48 ANNEX IPage 7 of 7

KENYA

Second National Agricultural Extension Proiect

Estimated Schedule of Disbursements

------------------------------------------------------------ __----------

IDA Cumulative Country ProfileFiscal Year Disbursements Disbursements for Agriculture

-------------US$ million-------- (Z of Total)…---------.----_------------------------..---------.---------------__---

19912nd Semester 0.25 0.25 3

19921st Semester 0.50 0.75 62nd Semester 0.75 1.50 11

1993lst Semester 1.25 2.75 162nd Semester 1.25 4.00 21

1994lst Semester 1.25 5.25 302nd Semester 2.25 7.50 40

19951st Semester 2.50 10.00 512nd Semester 4.70 14.70 59

19961st Semester 2.80 17.50 702nd Semester 2.50 20.00 80

19971st Semester 2.20 22.20 892nd Semester 1.50 23.70 95

19981st Semester 1.20 24.90 100

Project Completion Date: September 30, 1997Project Closing Date: March 31, 1998

- 49 -

1ItA A* 2

~~~~~... .. -------$SC" #EAYZOM4L 57361W4 mmi

No Iherease in Nuhcr eo ftmre Incrceso in Ntiber of farmer.LUN Mod i me l4sh 1e Ma uU Huoh

_ .......................................... ------ ------ _,,,-.,_,,,-----. _____

Cwrrent Extension Sc viceo

Nimber of Farserc Reached 192.000 270.000 410.000 27n.00 410.000 495.000AvereUg Cros Morgin 972 972 972 972 972 972

_____.___.__._....... ........ __. . .,__....... ------ ----- ---------

Cumulative Croem Iirgin (1) 1e8 268 S 268 890 481Cumilativw Craeg 4rsin (SW, 6.3 11.7 17.7 11.7 17.7 21.4Percent of Agricultueel 00P 0.49 0.6911 1.051 0.691 1.055 1.26W

loosct of ErtAn-ion service,

1. H;gnr Plant Pwulation

Number of Farsers Reached 192.000 no.000 410.000 270.000 410.000 405.000

Average Cross argin 1.116 1.116 1.116 1,116 1.116 1.116

Cumulative Oro4 PMargin (PI) 214 301 457 301 457 552Cuulative troso Margin (SE9 9.5 13.4 20.8 18.4 20.8 24.5Percent of Agricultural OF 0.563 0.7 " 1.203 0. 791 1.200 1.45

2. Early Planting

Nuehbr of Farms Reached 192.000 270.000 410.0O 270.000 410.000 495.000Ave-nge Oeros (rgin IS51 1,551 1561. 1.551 1.551 1.551

Cumulative OCt.o Margin (N) 295 419 636 419 68 768

Cumulative Cro" lrogi.i (O) 18.2 1s.6 28.3 16.6 28.8 34.1Percart of Agricultural 0DP 0.781 1.103 1.671 1.103 1.673 2.028

Background matarials are in the Project Films.

- 50 -

KMA

$19COM NATIl>W EXEMN lMtO2

00T6 CAM FUb

._______._ .............. ___ ....____.._.____________,__________.__.________________________________.__________________________________

1 2 3 4 S 10 15 20 25 30 85 40

114LOWS

Loan receipts 0.98 2.47 8.09 S.67 S."7 0.00 0.00 0.00 0.00 0.00 0.00 0.00Out.., and tuex 0.26 0.74 0.98 1.76 1.7N 0.00 0.00 0.00 0.00 0.00 0.0t 0.00

OUTFLOWSProject expenditure. 1.16 8.09 8.66 7.33 7.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00Debt aervice - MA

Service charge 0.01 0.02 0.04 0.07 0.11 0.19 0.17 0.15 0.11 0.07 0.04 0.00Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.80 0.80 1.00 1.00 1.00 1.00

Debt service - IFADService charge 0.00 0.01 0.01 0.02 0.04 0.06 0.06 0.04 0.08 0.02 0.01 (0.00)Principal o.0o 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 0.20 0.20 0.20

Replcement 0.00 0.00 0.00 0.00 0.00 8.00 8.00 8.00 8.00 8.00 8.00 3.00

O.f8ENT SWP.S1 0.04 0.10 0.10 0.20 0.18 (3.25) (8.92) (8.09) (4.34) (4.29) (4.24) (4.20)CJA.ATIVE SRLLX 0.04 0.14 0.24 0.4 0.59 (5.95) (25.66) (48.00) (66.86) (66.41) (109.72) (180.80)

FONREI EXOUANE fLUM

1 2 3 4 5 10 1S 20 25 30 35 40

SFOW

Loan receipt. 0.93 2.47 8.09 8.67 8.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Project Foreign Coete 0.51 1.86 1.70 8.2J 8.2S 0.00 0.00 0.00 0.00 0.00 0.00 0.00Debt Service - DA

Service charge 0.01 0.02 0.04 0.07 0.11 0.19 0.17 0.18 0.11 0.07 0.04 0.00Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.80 0.50 1.00 1.00 1.00 1.00

Debt aervice - IFADService charge 0.00 0.01 0.01 0.02 0.04 0.06 0.05 0.04 0.08 0.02 0.01 (0.00)Principal 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 0.20 0.20 0.20

Replacement 0.00 0.00 0.00 0.00 0.00 1.60 1.60 1.60 1.d60 1.O 1.60 1.60

CURFT 9SMPLUS 0.41 1.06 1.84 2.S4 2.49 (1.08) (2.62) (2.49) (2.94) (2.69) (2.04) (2.60)CUA1ATIVE SULS 0.41 1.49 2.68 5.87 7.S6 10.77 (I.66) (14.86) (29.14) (43.69) (86.00) (72.00)

Figures are in U#S millione.Bchkround _terials are in tho preject files.

- 51 -

6MM 4

S1CO NATIONAL . MT964 PROJET

EWONOIC AILYSIS

Without Project Scenario: o Incrrs.e In Nuber of Farmere

Veer I Yoer 2 Year 3 YVer 4 Ye.. 5 Year 6 Yeor 7 YVee 8 Yes, 9 Yesar 10

Number of Fererer Reached by Eatenoion Staff 270.000 270.000 270.000 270,000 270.000 270,000 270.000 270.000 270.000 270.000Number of Farmere Fol loing Extension Iossago, 270.000 270.000 270,000 270.000 270.000 270,000 270.000 270.000 270.000 270.000A.ermg* Cror Margin Per Formr 163 163 16 9 163 16 16 163 13 163 163Total Croe Mergin (( 14IN) 44 44 44 44 44 44 44 44 44 44Total Cross Marin (USO 14) 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7

With Project Scenerio: Increase in Number of Former. Adoption of Higher Plant Poegletion

Year I Year 2 Year 3 Year 4 Yese 5 Year 6 Yo.r 7 V*er 6 Year 9 Yoer 10

Nasker of Farmere Reached by Ertnion Staff 270.000 310.500 357,075 410.636 410.636 410.636 410.636 410,636 410.636 410.636Number of Faraere Following Erten-ion Nssage 13.500 42.525 102.904 15u.63e 224.135 24e.5U1 264.235 264.235 264.235 264,235Anerage Crore Margin Per ForeI 1.065 1,06S 1.065 1.065 1.065 1.065 1.061 1.065 1.065 1.065Total Orcee Margin (KOH N) 14 45 110 196 239 2"6 261 261 261 261Total Crame -aegin (ISO N) 0.6 1.7 4.2 7.6 9.2 10.2 10.9 10.0 10.9 10.9Incremental Croae Margin (ISO 14) (1.1) 0.0 2.5 5.9 7.5 6.5 9.2 9.2 9.2 9.2ProjctCostStream (22.6) (1.1) 0.0 2.5 5.9 7.5 6.5 9.2 0.2 9.2 9.2DIR s1U

With Project Scenario: Inreaeeo in Nmber of Farmers. Adoption of Early Planting

Year 1 Year 2 Year 3 Year 4 Yeer 5 Year 6 Year 7 Year 6 Year 9 Year 10

Number of Farmere Reached by Extension Staff 270.000 310.800 357.075 410.636 410,636 410.636 410.635 410.636 410.636 410.636Nmeeer of Fareere Following Extension Neesagee 1S.500 42.52 102.904 165.639 237.635 264.041 202.069 267.445 287.446 267.445Aeroge Oro"e Margin Por Foreer 1.715 1.715 1.715 1.715 1.715 1.715 1.716 1.715 1.715 1.715Total Croes Margin (1P1 4) 23 73 176 319 407 453 484 493 493 493Total Cross Margin (USO 1) 0.9 2.8 6.6 12.3 15.7 17.5 16.7 19.0 19.0 19.0Infcr.ntal Cross Margin (USD 14) (0.6) 1.1 5.1 10.6 14.0 15.8 17.0 17.3 17.3 17.3Project Cost Stre- (22.6) (0.8) 1.1 5.1 10.6 14.0 15.6 17.0 17.3 17.3 17.3IRR 26

Ilekground material. are in the pro;ect file.

- 52 -

ANNEX 5Page 1 of 3

KENYA

SECOND NATIONAL EXTENSION PROJECT

The Organization of the Ministry of A,riculture

1. MOA is administered by a Permanent Secretary with a staff of careeradministrators. The Department of Agriculture, consisting of personnel fromthe Agricultural Scheme of Service, is headed by a Director of Agriculture(DA), who directs seven divisions at MOA headquarters. Each division ismanaged by a division chief with the rank of Deputy Director of Agriculture(DDA). The departmental arrangement is summarized in the attached chart.

2. The DA also directs field staff, who form the bulk of the service.These are organized as teams at the provincial, district and divisionallevels. Below this level, location officers supervise teams of frontlineextension workers who work in sub-locations. MOA is involved in eightProvinces, 42 (soon to be 45) Districts, 252 Divisions, 1,048 Locations, and3,600 Sub-Locations. As can be seen from the table below in addition to theDA, seven DDAs, eight Assistant DAs at headquarters, and staff at provincialoffices and training institutes, the vast majority of MOA's roughly 8,400technical personnel work within the districts.

MOA Staff Deployment

Headquarters Staff 155Provincial Staff 342District Staff 7,743Training Institutes 153

8,393

Agricultural Extension and Services Division (AESD)

3. AESD is directed by the Deputy DDA - AESD. It consists of fivebranches: Extension Management; Agricultural Information; Farmer Training;Home Economics; and Rural Youth. There are a total of 70 AESD staff at MOAHeadquarters, including the Agricultural Information Center (AIC). In thefield, the Provincial Extension Coordinators (PECs) and District ExtensionCoordinators (DECs) are directly under the authority of the DDA - AESD. Thefrontline extension staff and their immediate supervisors, are deployed andrecruited by AESD, but day to day supervision is the responsibility of theDAO.

4. The Extension Management Branch is the key branch concerned with theheadquarters' management of extension. The Management Section, which iscurrently managed directly by the Branch Head, is at the center of alladministrative and financial activities, and has a range of essentialmanagerial functions. It is charged with: staff deployment and monitoring;

- 53 -

ANNEX 5Page 2 of 3

work programming, planning and procurement; maintenance of staffing, inventoryand financial records related to extension; and allocation of transport andequipment in the field.

5. The Supervision Section is responsible for guiding extension field staffin the efficient running of the extension program. In particular, it isresponsible for the smooth functioning of the monitoring and reporting system,with special emphasis on information relating to regular farm visiting and in-service training.

6. The Extension Communication Training Section works closely with theAgricultural Information Center (AIC) to: (i) monitor the effectiveness of theteaching methodologies at the sessions for frontline staff and the subjectmatter specialists; (ii) enhance the activities of Professional Groups; (iii)promote the use of effective communications techniques for frontline staffworking with groups; (iv) study the process of two-way communications betweenfarmers and frontline staff with a view to introducing improved approaches;and (v) introduce modern techniques of mass communications in connection withagricultural shows, field days and demonstrations.

7. The Agricultural Information Branch consists of AIC and theDocumentation and Library Services. AIC has four sections: (i) publicationand printing; (ii) audio-visual; (iii) radio; and (iv) training. The Centerhas a professional and technical staff of 36. It has a fully-equippedbroadcasting studio and produces one radio program five days each week,another twice weekly and a third weekly. The AIC also has a photography unitfor still photographs and slides for tape and slide presentations. Its PressUnit produces the MOA newsletter 'Kilimo News' and supplies articles to localnewspapers on agricultural topics. The Technical Information section writespamphlets and booklets for farmers, as well as updating the technical handbookused by frontline staff.

8. The Farmer Training Branch of AESD consists of a section involved withthe administration of Farmer Training Centers (FTCs) and a Training ProgramSection. It is currently staffed by only one officer who is in charge of anational network of 27 FTCs with a total residential bed capacity of 1,600.FTCs are currently managed by the DAO of the district in which they arelocated. They are headed by a Principal who administers the training programwith the support of a team of inst:;uctors. These specialize in teachingvarious subjects such as crop production, animal production, farm management,and home economics. Currently there is no official establishment of staff atFTCs; staff are drawn from the general pool of extension workers in adistrict. With no official status and inadequate financial support for theirtraining activities, FTCs have not been able to retain qualified and motivatedteaching staff.

9. The Home Economics Branch is a key element in MOA's initiative to give amuch greater emphasis to the role of women in agricultural development. TheBranch currently consists of six officers at headquarters. In the field, HomeEconomics Officers form part of every team at the provincial, district and

- 54 -

ANNEX 5Page 3 of 3

divisional level. The Branch has four sections: (i) food utilization; (ii)home managements (iii) population education; and (iv) home economics training.

10. The Youth Program Branch of AESD is responsible for the promotion of 4-KClubs in Kenya's primary schools. There are approximately 400 Young FarmersClubs and 4,260 4-K Clubs that are assisted by the Branch. The activities ofthe Branch have been centered around agricultural production, particularlyhorticultural production and the raising of small livestock such as rabbits,sheep and goats, poultry and bees. In addition, nutrition and populationeducation is given, together with training on aspects of environmental issues.

Attachment

ORGANIZATION AND REPORTING RELATIONSHIPS VITHIN THE MINISTRY OF AGRICULTURE

PermanentSecretary

Director DExtension DO Crop.sD Trainingo Fre DD Agricuiturmi D Monitoring DO Researchof Agriculture Services Devolopment A Development Manageont Engineering A Evaluation Ext. Liaison

Provincial P Extenoion P Crops P Traning n P Farm ngt p Agricultural P Monitoring aDirector Coordintor Dev. Officers Dv. Officer Ottier Engineer Evaluation

of Agriculture Office t Of r

District D Exteneion D Crops D Training A D Farm Mngt D Agricultural D Monitoring AAgric. Officer Coordinator Dev. Officers DOv. Officer Officer Engineer Evaluation

I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Officer

Divisional Agric|Extension Office;r

. .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.

Locational Agric.Extension Officer

Frontiin ExtensionWorker

rt

ft

- 56 -

Annex 6Page 1 of 9

KENYA

SECOND NATIONAL EXTENSION PROJECT

TECHNOLOGY

Introduction

1. For extension to be effective, there must be a range of availablenew technology that is technically and economically viable for adoptionby smallholder farmers in the diverse agroclimatic and socio-economicconditions encountered in Kenya. In this summary, an attempt has beenmade to review:

(i) improved technology, available and in part adopted byfarmers during NEP I;

(ii) currently available technologies that can be immediatelytransmitted by extension; and

(iii) 'pipeline* technology currently being researched with viableresults envisaged on the short-term (say within 5 years).

Haize

2. The main agroecological zones and rainfall regimes are:

Ci) the high potential zone with unimodal rainfall pattern(1000 to 2200mm) between 1600 and 2300m above sealevel (a.s.l);

(ii) the medium potential zone with bimodal rainfallpattern (700 to 1800 mm) and lying between 1000 and2700 m.a.s.l.;

(iii) the low potential zone with scanty short-durationrainfall; and

(iv) the coastal strip, a humid belt with patches of salinesoils.

3. The four maize breeding programs relevant to these zones arecentered at Kitale, Embu, Katumani and Mtwapa, respectively. Breedingwork at the four centers has produced maize varieties (hybrids andcomposites) with much higher yields than local traditional selections.During NEP I (1982-1990) the following improved varieties andtechnologies were available for adoption by farmers in the respectiveagroclimatic regions and rainfall regimes.

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Annex 6Page 2 of 9

Zone 1. Hybrids H622, H632, H611D, H613D, H6514D and H625. The firsttwo are suitable for altitudes of 1000-1700m; they have a yieldpotential of 80 bags per hectare, while H614D which is suitable for thesame areas as H611D and H613D, has a higher potential yield of 84 bags.H625 released in 1981 has given yet higher yields of 85 bags per hectareat research stations. These hybrids give the highest yields when grownunder improved management practices, combined with fertilizerapplication.

Zone 2. Medium maturing hybrids H511 and H512.

Zone 3. Katumani Composite B has been the only improved maize variety.

Zone 4. Coast Composite B with a yield potential of 30 bags per hectarehas been grown at the Coast for over twenty years.

Adoption rates for the hybrids and composites have generally been goodunder NEP 1. For example, in the Trans Nzola district and theneighboring districts of Kakamega and Bungoma, adoption rates have beenestimated at 100X for the main crop grown during the long rains.

4. More recently released materials now ready for farmer adoption inthe different zones are given below.

Zone 1. Hybrid H626, a late maturing double cross hybrid, has a yieldpotential of 94 bags per hectare.

Zone 2. Hybrid C78 is in the bulking stage and soon to be released. Ithas a better yield potential than Katumani Composite B, is suitable forthe hilly areas of Machakos which have higher rainfall than thesurrounding areas, and is shorter in maturity than H 511.

Zone 3 and 4. One improved composite for each of the two zones isavailable. Dryland Composite (also known as Makueni Composite) has thesame yield potential as Katumani Composite B, but has the advantage thatit does well in marginal areas where previously only sorghum could begrown. Pvani Hybrid I, suitable for the Coastal strip, has a yieldpotential of 40 bags per hectare.

5. Research work in progress would focus on breeding for shortermaize plants with stronger stalks and deep roots. Breeding for diseaseresistance is receiving increased attention as is resistance to insectpests. The national maize breeders have started a collaborative IPMprograme with ICIPE to incorporate plant resistance to insect pestsinto recommended hybrids and composites, with particular emphasis tomaize stalk borers. In Zones 2, 3 and 4, screening of collections fromCIMMYT for tolerance to drought and physiological adaptation toconditions in the marginal areas and of the coastal soils continues. InZone 3, selection work in Makueni and Katumani Composites will becontinued to get higher yielding materials that can be grown in thedrier marginal areas.

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Annex 6Page 3 of 9

Beans

6. Screening for high yields among landraces and pure lines hasproduced GLP2 (Rose Coco) and GLP24 (Canadian Wonder). These varietieswere released in the early 809 and are now in use by many farmers.Recommended practices differ considerably between beans grown as solecrops or as inter-crops with maize (the farmers' common practice).Under the latter condition, recommendations for fertilizer applicationand weed control are similar to maize. Recently concluded on-farmtrials show that intercropping results in increased farm income,particularly in the medium potential zone.

Wheat

7. With a long history of wheat research, there are currently 16recommended bread varieties with potential yields varying between 23 and36 bags per hectare. Husbandry practices that facilitate high yieldsare: fine seedbed; early planting; a seedrate of about 110 kg/hacertified wheat seed; compound fertilizer to supply 20-40 kg N and 40-70 kg P2 0 5 with lime application (1-3 tonnes/ha) on acid soils; andherbicides for weed control. Three new varieties are in the bulkingstage and ready for release; these are Chiriku, Pasa and Mirembe.

8. Few small-scale farmers are involved in wheat growing because therecommended technologies are suitable mostly for large scale mechanizedfarms. Appropriate farm equipment and tools for land preparation, weedcontrol and harvesting operations for smallholders have not beendeveloped - consequently many small farmers have resorted to growingmaize in the former wheat areas, despite the fact that the price ofwheat is more attractive. As a result of non-adoption of improvedmanagement practices, small farmers' yields still remain low, less than1000 kg or 10 bags per hectare, when the average yields obtained onresearch stations are in excess of 25 bags per ha. Research ontechnology for smallholders is being strengthened under NARP.

9. Many years research on wheat rusts has yielded fairly resistantvarieties, hence breeding for rust resistance will be given lowerpriority. Because of continued use of acidifying fertilizers and thepractice of monoculture, wheat soils have become acidic (low pH)

resulting in declining yields. Particularly for smallholders, liming isnot an effective way of ameliorating the situation, so breeding fortolerance to soil acidity is now a high priority. As for droughttolerance, continued expansion of wheat growing into marginal areas e.g.Hasai and Samburu, requires varieties that do well under low and erraticrainfall. A new disease, Barley Yellow Dwarf Virus (BYDV) has brokenout recently in wheat areas. Its control is an important researchobjective.

Sorghum

10. The Kakamega (Alupe) Research Center has recommended the followingvarieties for cultivation in Western Kenya, Serena, Seredo, E522HY,

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Annex 6Page 4 of 9

Dobbs Bora. These varieties, under good management, yield 5.0 to 6.5tonnes of grain per ha. as against the yields of the local selections,Livoywa, Estuti, and Ikhuba yield between 2.5 and 3.5 tonnes per ha. AtKatumani, the following new seeds were developeds Serena KAT 369,2Rx17, and Makueni Improved. These have yield potentials of 2.0 to 3.0tonnes per ha. Recommendations for husbandry practices stress: earlyland preparation and planting; plant populations of about 100,000plants/ha in Western Kenya and 40,000 to 80,000 in drier areas;fertilizer application and weed control. Adoption rates for improvedsorghum production technology have been disappointing partly due to afailure to match seed characteristics to farmers' preference.

11. Three new and promising sorghum varieties, IS8527, IS8193 andE1291 are currently undergoing national performance trials. These willbe released within the next two years. An aggressive breeding programmefor the improvement of sorghum has been developed by KARI with theassistance of the USAID. It is expected that the technologies generatedwill result in viable recommendations which, when adopted willsubstantially improve the productivity of sorghum as a food Lrop.

§.arcane

12. During Phase I of the National Extension Project, the followingvarieties were available for adoption by small-scale farmers and thenucleus estates of the sugar companies: MC0376; C0776; C01148 andC0331. These varieties were moderate yielders of 100 - 120 tonnes perhectare. A later selection C0995 has a better yield but becomes pithywhen harvested late. Improved recommended practices include those onseed rates (7 tonnes/ha hot water treated) setts, an average fertilizerapplication of 100 kg of N per ha applied as Urea or DAP, three to fourweedings and harvesting at about 20 months. Adoption rates ofsmallhjlders (and yields) lag considerably behind those of nucleusestates.

13. The period between 1970 and now has witnessed concerted efforts indeveloping improved varieties of sugarcane. Today the followingvarieties are at various stages of bulking before release for generalcommercial planting: EAK 69-40, EAK 69-41, EAK 70-76, EAK 71-402 andEAK 71-619. These varieties have reasonable cane quality and yield aswell as the standard C0421. Further breeding work ha led to thedevelopment of additional high yielding varieties e.g. KEN 82-242 andKEN 82-837. These outyield C0421 by about 5-10Z but show highsusceptibility to smut. The planned work in sugarcane researchtherefore focusses on developing sugarcane varieties with improvedresistance to smut.

Oilseed Crops

14. Despite the fact that Kenya imports large quantities of vege..oleoil and has a favorable climate for production of oilseed crops,research on these crops has not received high priority. Sunflower isperhaps the only crop for which some research has been done and the

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Annex 6Page 5 of 9

following varieties have been recommended for general growing: Fedha,HOO1, H0008, H894 and H898.

15. Improved varieties earmarked for release for general cultivationin the near future are: KENSUM 22, KENSUH 33 and SUPER 400. Otheroilseed crops that have received some attention in the form ofevaluation of introduced varieties include: rapeseed, simsim,soyabean, groundnuts and castor. Selections of these crops are grown byfarmers using traditional practices as research has not yet generatedimproved agronomic practices. A limiting factor is the absence ofcertified seed, hence farmers use poor seed resulting in low yields.Lack of assured market is also a major constraint to increased oil seedcrop production.

Root and Tuber Crops

16. Of the major root and tubers crops grown in Kenya, potato (Solanumtuberosum) received most research attention during the last two decades.The National Potato Research Centre, Tigoni, was established in the1970s. Although cassava diseases have been investigated intermittently,particularly during the days of the East African Community, cassava andsweet potatoes, the two well-known subsistence crops, were seriouslyfocussed on by research, only since the publication of the National FoodPolicy in 1981. Cassava selection studies have resulted in a fewcassava cultivars being recommended for growing in the various cassavagrowing areas, i.e. Kibandameni, Garimushi and Kasimbiji for the Coast;Serere, 12200 and Tamizi for Western Province; and Mucericeri and KMEIfor the marginal areas of Eastern Province.

17. In the case of sweet potatoes, small-scale farmers growtraditional or local selections, for instance in Western Kenya, Toiloand Musinya are popular varieties. Diseases are perhaps the mainconstraints to increased production of potatoes. Unlike the main cerealcrops (maize and wheat) where research is supported by an active andhighly organized seed industry, potatoes do not as yet benefit from suchorganized support.

18. Ten cassava and five sweet potato selections are undergoingperformance trials and those that perform well might be available forgeneral growing within the next three years. Timely availability ofseeding material of the right quality has been a major constraint to thefarmers' adoption of improved technology in potato. This is partly dueto shortage of good storages. This problem is now being addressed.Improved potato storage techniques developed by the International Centerfor Potato Research and demonstrated in Kenya to be economic, can now bepassed on to farmers. In the immediate future, increased production ofthese three crops will also be facilitated by further innovations instorage, processing and utilization. In addition, marketingarrangements will receive attention.

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Annex 6Page 6 of 9

Horticultural CroRs

19. The limited resources that have been allocated to horticulturalresearch, have been used to undertake germplasm introduction and testingfor adaptation to local conditions. Through this process, a largenumber of fruit and vegetable varieties suitable for growing in thevarious agroecological zones have been identified and the improvedagronomic practices needed to obtain high yields determined.

Cotton

20. During the last forty years, cotton research has not been accordedhigh priority. During the period 1982-1990, the following improvedvarieties of cotton were available for general planting: BPA 75 isrecommended for Western Kenya, particularly for Busia, Bungoma and Siayadistricts; UKA 591240, for the Coastal strip, East of the Rift Valleyand South Nyanza; and UPA (IL62) for the Taita/Taveta areas. Thesevarieties were selected on the basis of cotton yield, quality of fibre,pest and disease resistance or tolerance. UKA 59/240 and UPA (IL62)have been grown by farmers for a long time while BPA 75 was releasedonly in 1980 as a replacement of BPA 68. Only one promising variety,KSA 81M is currently ready for release for general cultivation.

21. Work in progress lays emphasis on: (i) intercropping studies (ii)fertilizer application and (iii) weed and insect pest control. Work onbiological control of the African bollworm, Helicoverpa armipera isyielding encouraging results. The intercropping studies are addressingone of the major constraints to improved cotton production i.e. lateplanting. Late planting which is practiced by most small scale farmersresults in yield loss of 50Z or more. It is practiced because farmersgive preference to food crops. If an improved intercropping system forcotton and cereals were evolved, it would help substantially increaseyields of cotton. Regional Research Centers, which are being developedunder HARP, would address such issues and with a strengthened extensionsystem, it would be possible to make farmers adopt intercropping ofcotton with foodcrops.

Pyrethrum

22. The main objective of pyrethrum research is the development ofvarieties and clones with high flower yields and pyrethrin content andgood agronomic traits over a wide range of agroclimatic environments.Farmers have a choice of growing either varieties or clones. Clones aremore uniform and earlier in their flowering than the varieties.Varietal and clonal planting materials are supplied by the PhrethrunBoard of Kenya, a body responsible for processing and marketingpyrethrum products. For over 18 years, only one variety (P4) was beinggrown by the farmers; recently, however, two additional varieties, K218and K235, have been released for general cultivation.

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ANNEX 6Page 7 of 9

Pastures, Grasses and Legumes

23. The National Agricultural Research Centre at Kitale plays the leadrole in pasture research and development. The major pasture agro-ecological zones based on rainfall regimes and altitude are shown in thetable below.

Pasture Species Adapted for Various Agro-Econological Zones

ZONE ALTITUDE ANNUAL PASTURE SPECIES RECOMMENDEDRAINFALL GRASSES LEGUMES/FODDER/TREES

1. Hot and Wet 0-15CM 1000-1270mm 1. Likoni Guinea Grass 1. Siratro (M. atropurpureus)Coastal Strip 2. Glyeine wightiI*.g. Utwapa 8. Leuceena loucocephala

4. Prosopis Jul iflore

2. Dry Coastal 150-900ki 635-1OOOM 1. Makuani Guinoa Grace 1. Glycine wightttInterland 2. C-nchrus ciIlaris 2. Stylo (Stylosanthesee.g. Taveta guyansensis)

3. Leucasna loucocephala

a. Dry Medium 900-19sM 6836-1000C 1. Makuant Guinea Gross 1. Stylosanthso. guyanonsisAltitudo 2. Rhode* gross 2. Glycine wightile.g. Katumani 3. Coloured Guinea a. Leucasnn loutocephola

4. Prosopsis julilflora

4. Wet MedIum 900-196CM 1000-2640mm 1. Rhodes Graoss (Elaba) 1. Deasodium uneinatumAltittude 2. Nandi Setnria (Nashwa) 2. Deamodium tntortume.g. Eabu 3. Brachiaria ruziziensis 3. Leuceena loucocephala

4. Stylosanthose guyanonsis

5. Dry High 1980-2460M 636-10000o 1. Boma Rhodos Grass 1. Kenya White CloverAltitude 2. Pokot Rhodes Grass 2. Louisiana White Clovore. g. Elodret

6. Wet High 1980-24SOM 1000-2640m 1. Kikuyu Grass 1. Louisiana White CloverAltitude 2. Nandi Starna Grass 2. Kenya White Clover*.g. Morima 3. Rhodes Gross

7. Wet Sub-Alpine 2460-O6o0 1000-2540am 1. Kikuyu Grass 1. Louisiana White Clover*.g. Molo 2. Rye Grass 2. Subterranean Clover

S. Cockefoot

24. Many cultivated fodders have been introduced and tested in thevarious zones. These include Napier grass varieties, hybrid sorghum,sweet potatoes, turnips, oats, lucerne, maize, columbus grass, etc.Napier grass, however, is the most commonly used fodder for both smalland large scale farmers. Several varieties and cultivars have wideadaptation and grow in most of the high rainfall areas. The yieldpotential is variable depending on environmental conditions but rangesfrom 11-40 tons DM/ha. Recommended husbandry practices for a number ofthese fodder are being extended to farmers.

25. Improved pastures and fodders have been increasingly adopted bysmall scale farmers. Trends in seed sales have increased as well as

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Annex 6Page 8 of 9

area planted to fodders and general use of processed feeds. Furtherresearch york on the identification and evaluation of promising localand introduced pasture plants and fodders for higher dry matterproductivity, quality, and drought tolerance for zones 1 - 4 is inprogress.

Dairy Production

26. The dairy sector is currently dominated by the small scale farmerscontr'buting 752 of total output. The major technologies which haveenhanced expansion can be attributed to the following factors: (i)improved breeds; (ii) adequate feeding for both maintenance andproduction functions; regular calving interval; (iii)) control ofexternal parasites; and (iv) hygienic milk production with a milkingshade.

27. Zero grazing technology has increasingly gained in adoption andabout 100,000 units are now in place. Recent surveys show that theadoption rate recomAended by the National Dairy Development Project(NDDP) packages was 602 (in Kericho District). Silage and hay makingare widely done by the large scale commercial farmers using modernequipment but are as yet to be adopted by small scale farmers. Cleanmilk production is widely practiced. New research on cheaper gruel forpre-weaned calfs to reduce mortality and improve growth rates is inprogress. Cheaper silage and hay making techniques are beinginvestigated. Tick resistance to acaricides is also an important areaof research.

Beef Production

28. Research and development coupled with adaptation of importedtechnology for beef production has resulted in the development andrecommendation of animal management systems for increased production,including use of A.I.; dipping to control tick borne diseases;planting of nutritive pastures and fodders; oversowing natural grasseswith legume pastures; provision of water facilities, improvement ofhealth services and the raising of Sahiwal and Boran smallholder Zebuherds.

29. Most commercial ranches have adopted use of improved breeds andmanagement. However, 752 of the rangelands practice traditionalpastoral range livestock systems on overrazed natural pastures. Themajor research focus is on better utilization of rangelands andincreased productivity from natural pastures with mineralsupplementation for improved nut iP4"n. Efforts to eradicate tsetse flyand to increase available grazir. coupled with trypanocidaltreatment and use of various traps ".e continuing. The male sterileinsect technique, aerial and ground spraying, and bush clearing coupledwith human settlement are approaches also being tested in collaborativeresearch efforts by KETRI and MOLD.

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Annex 6Page 9 of 9

Sheep and Goats

30. For goats the following breeds are availablet

Meat: Galla goats and Boer East African.

Milk: Toenburghs and Anglo Nubian and crosses with Galla and EastAfrican have proved productive in the high potential areas.

31. Recommended sheep breeds (for meat) are: Dorper and Red Masai.Wool sheep are found in the cooler highlands; four breeds, RomneyMarsh. Hampshire Down, Corriedale and Romney Marsh Hampshire Down havebeen recommended. Demand for improved brees far outnumbers theavailability of good animals. About 1500 - 2000 breeding bucks are nowmade available to farmers annually. Future planned research by theSmall Ruminant Cooperative Support Project at Naivasha and Maseno isdirected at developing a dual purpose milk goat from Toggenburg X Galla.

Poultry

32. Three production systems are available according to ability andchoice of the farmer: *Free range', 'slatted housing', and 'deeplitter'. Pure breeds consist of White Leghorn, White Sussex, RhodeIsland Red and Black Australorp. Collaborative research by KARI atNaivasha supported by the National Poultry Development Project focussesits attention on the following aspects:

(i) Cheaper non-conventional feed rations;

(ii) Efficient feeding equipment;

(iii) Appropriate and cheaper poultry housing systems; and

(iv) Evaluation of quality and performance of variouscommercially marketed poultry feeds for broiler andegg production.

Beekeeping and Honey Production

33. The recommended cultural practices for beekeeping management varyseasonally but include: (i) colony establishment period 2 months beforebloom; (ii) preparation period 1 month before bloom; (iii) at thebeginning of bloom period the hive is expanded and poor swarms united;(iv) during bloom period the hive is opened and expanded; and (v) afterbloom, the honey is harvested and diseases and pests checked. The KenyaTop Bar hive (KTBH) is 15 - 20 times more efficient than the traditionalhive. Honey yield per hive is 30 - 40 kg/year and 3.5 kg beewax.Traditional hives have corresponding yields of 2 kg and 1/2 kg of honeyand wax respectively. An intensive effort is being made by theextension staff to transmit the KTBH technology to farmers; this wouldbe continued under NEP II.

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ANNEX 7Page 1 of 4

KENYA

SECOND NATIONAL EXTENSION PROJECT

MEMORANDUM OF UNDERSTANDING

ON EXTENSION BETWEEN KARI, MINISTRY OF AGRICULTURE AND MINISTRY OF LIVESTOCKDEVELOPMENT.

Close cooperation between the staff of the Line Ministries in charge ofextension and KARI, which carries responsibility for agricultural research, isessential to ensure:

(i) The development of technology appropriately tailored to diverseagroclimatic and socio-economic conditions of farmers in Kenya;and

(ii) The regular training of extension staff in relevant subjects andthe effective dissemination of information on improved practicesfor agricultural and livestock production to farmers.

In order to facilitate the required collaboration, GOK has recentlyestablished a National Forum to coordinate, guide and supervise cooperativeactivities and also to ensure the timely submission of requests for therequired funding. The Forum consists of representatives of the LineMinistries, KARI, the Agricultural Universities and other concernedInstitutions. It has in addition, been agreed between the Line Ministries andKARI that during the project period of NEP II, they are committed to ensuringthe implementation of the actions outlined for each Agency below:

The Ministry of Agriculture has accepted responsibility to:

(1) Provide for coordination and oversight of research/extension interactionand the contribution of extension to research through DDAResearch/Extension, and provide adequate resources in terms manpower andfacilities to execute this task.

(2) Ensure participation of agricultural extension SMS in the regularmeetings of RRCACs (see KARI below) as agreed between the Director ofeach RRC and the concerned District DAOs of the RC mandate area.

(3) Make all required arrangements for the regular extension workshops,including timely requests for inputs by specific research staff.

(4) Ensure the participation of District (and Provincial) SMS and of othersenior staff in the diagnostic surveys by the District Farming SystemsTeams (DFSTS).

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ANNEX 7Page 2 of 4

(5) Strengthen Professional Groups of SMSs and experts in main subjectmatter areas important to agricultural extension and make arrangementsfor necessary consultative meetings involving staff from KARI, theAgricultural Universities and other organizations.

(6) Give funds through an authority to incur expenditure (A.I.E) to KARI toenable KARI to undertake extension training, and other specifiedactivities such as on-farm trials, demonstrations etc. agreed on betweenthe two parties.

(7) Facilitate the publication end dissemination of extension messages(bulletins, farmers handouts, posters, radio-broadcasts etc) through theAgricultural Information Center (AIC).

KARI has accepted responsibility to:

(1) Provide for the coordination and oversight of research/extensioninteraction and contribution of research to extension through theAssistant Director, Regional Research Centers, and provision of adequateresources in terms of manpower and facilities to execute this.

(2) Ensure attendance of research scientists (with specializations asrequested by the DAO) to assist in training in specific subject matterareas and to promote feedback at the regular district level extensionworkshops in the mandate areas of each RRC.

(3) KARI researchers to participate in the DFSTs charged with the joint(between researchers, extensionists and farmers) diagnosis of existingpriority production constraints as a basis for research priority settingat each RRC.

(4) Assign to each RRC a specific task with regard to building a network ofon-farm trials/demonstrations and for the joint (between researchers andextensionists) operation, monitoring and evaluation of results.

(5) Each RRC to organize a pre-seasonal meeting (at least once a year) ofthe Regional Research Center Advisory Committee involvingrepresentatives of research, extension, farmers and other concernedlocal organizations to review and examine the relevance and impact ofresearch and extension programs and to make recormendations forimprovement.

(6) NRCs, and RRCs to organize special technical courses for extension SMSsin specific subjects such as horticulture, livestock, integrated pestmanagement, etc. under the coordination of AD/RRC.

(7) Make arrangements for an annual estimate of the costs of KARI activitiesin support of extension (training and on-farm trials) for submission tothe Line Ministries in time for the annual budget cycle to enableissuance of the necessary funds by the Ministries.

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ANNEX 7Page 3 of 4

MEMORANDUM OF UNDERSTANDING

ON EXTENSION BETWEEN MINISTRY OF LIVESTOCK DEVELOPMENT AND KARI

Close cooperation between the staff of the Line Ministries in charge ofextension and KARI, which carries responsibility for agricultural research, isessential to ensure:

(i) The development of technology appropriately tailoredto diverse agroclimatic and socio-economic conditionsof farmers in Kenya; and

(ii) The regular training of extension staff in relevantsubjects and the effective dissemination ofinformation on improved practices for agricultural andlivestock production to farmers.

In order to facilitate the required collaboration, GOK will establish aNational Forum to coordinate, guide and supervise cooperative activities andalso to ensure the timely submission of requests for funding. The Forum willconsist of representatives of the Line Ministries, KARI, the AgriculturalUniversities and other concerned Institutions. It has in addition, beenagreed between the Line Ministries and KARI that (during the project period ofNEP II), they will be committed to ensuring the implementation of the actionsoutlined for each Agency below in respect of NEP II and farming systemApproach to Research & Extension Project.

KARI has accepted responsibility to:

Cl) Provide for the coordination and oversight of research/extensioninteraction and contribution of research to extension through theRegional Research Centers, and provision of adequate resources in termsof manpower and facilities to execute this.

(2) Ensure attendance of research scientists (with specializations asrequested by the NEP II) to assist in training in specific subjectmatter areas and to promote feedback at the regular district levelextension workshops in the mandate areas of each RRC.

(3) KARI researchers to participate in the diagnostic surveys (whichincludes members from MOLD, MOA) charged with the joint (betweenresearchers, extensionists and farmers) diagnosis of existing priorityproduction constraints as a basis for research priority setting at eachRRC.

(4) Assign to each RRC a specific task with regard to building a network ofon-farm trials/demonstrations, and for the joint (between researchersand extensionists) operation, monitoring and evaluation of results.

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ANNEX 7Page 4 of 4

(5) Each ARC to organize a meeting (at least once a year) of the RegionalResearch Center Advisory Committees involving representatives ofresearch, extension, farmers and other concerned local organizations toreview and examine the relevance and impact of research and extensionprograms and to make recommendations for improvement.

(6) NRCs, and RRCs to participate in special technical courses for extensionSMSs in specific subjects such as horticulture, livestock, integratedpest management, etc. within mandate area, such courses to be conductedby institutions of higher learning. The courses will be organized bythe line Ministries.

(7) Make arrangements for an annual estimate of the cost of KARI activitiesin support of extension (training and on-farm trials) for submission tothe MOF in time for the annual budget cycle to enable issuance of thenecessary funds by the Treasury.

The Ministry of Livestock Development has accepted responsibility to:

(1) Provide for coordination and oversight of research/extension interactionand contribution of extension to research through the Deputy/Director/Livestock Extension and research liaison, and provide adequate resourcesin terms of manpower and facilities to execute this task.

(2) Ensure participation of livestock SMS in the regular meetings of theRRCACs (see above) as agreed between the Director of each RRC and theconcerned District Livestock Production Officer of the PRC mandate area.

(3) Making all required arrangements for the regular extension workshopsincluding timely requests for Inputs by specific research staff andother Agencies.

(4) Ensure the participation of District (and Provincial) SMSs and of othersenior staff in the diagnostic surveys by the Research and ExtensionStaff.

(5) Strengthen the professional groups of SMSs in areas important toextension for livestock production and make arrangements for regularconsultative meetings involving staff from KARI, theAgricultural/Veterinary/Colleges and Universities and other similarorganizations.

(6) Give funds through an authority to incur expenditure (A.I.E) to KARI toenable KARI to undertake extension training, and other specifiedactivities such as on-farm trials, demonstrations etc. agreed on betweenthe two parties.

(7) Facilitate the publication and dissemination of extension messages(bulletins, farmers handouts, posters, radio broadcasts, etc), throughthe Agricultural Information Center (AIC) and any other printing agency.

- 69 - ANNEX 7KENYA Attachment

SECOND NATIONAL EXTENSION PROJECT

IWINAPP RlSEaaoF mTESIo LIAISON STRUCTUE

Tasks/Goa ls Interaction/ Composition/ other Inputs LoadActivity Particleonte from ResDoneIbblity

Deciding major thrusts National Forum Directors Directors MOAProposing/allocating on Re_erch/ KARI, MOA, MOLD and MOLDrerources Extension MENR, MRDASAW, -----------Rexolving policy/ Linkage and KARI DD Nationalimplementation Issues ICo_modity/

-- Crops/LIvestock -- Livestock II Comitte I

DA (lOA) DOP (MOLD) -----------Chair (rotate)AD. RRC Secretary

Organize/budget KARi ODA/Agr. Ext.coordinate/ MOA / MOLD DDL/Livestock Ext.supervise agency Headquarters ODA - REC MOA, MOLDparticipation ETC. AD-PRE KARI

Prov. Dir. AgrApprove RRC Proams RRC Director RRC ----------------(on-station/on-farm) Advisory Senior RRC Scientists Professional DirectorReview results Coemittees croup. RRCResolve bottlenecks --- District AOs Distriet FarmingLaunch FST Systems Teasdiagnostic teams Farmer/Input ----------------

Sales/CreditMarketing Reps

Schedule workshops District/RRC RRC ExtensionDecide focus/content Research/ Liaison OfficerOrganize participation Extension District ExtensionEnsure *nnouncsmsnt Liaison Teams CoordinatorsPublish proceedings (MOA A MOLD)Schedule FSTs

ConstraintIdentification/ Joint FSTo Researchers Directoranalysis/ Extensionists RRCresolution. FarmersRecommendations

Review extensionfeedback DAO, DLO Represntatives DAODecide main Rgular District SHS Input., Credit DLOrecommendations Workshop Divisional SMS MarketingPlanning farm trials RRC (and NRC) arore?s (part-time)Planning d-monstratioss ScientistsOrganising field daysEvaluation farmtrials

field extensionExtension Monthly Staff MOA, MOLD District Extensiontraining Training SUS MOA Coordinators

SMS MOLD MOA, MOLD

Technologyadaptation/ Farm Reserchers Farmers Director RRCveritication Trials Extensioniste DAO

DLO

Technology adoption Demonstrations Extensionists Farmer DAFar_mr training OLO

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ANNEX 8Page 1 of 5

KENYA

SECOND NATIONAL EXTENSION PROJECT

EXTENSION TRAINING

Introduction

1. During NEP I, many different types of training were supported. Thesebroadly fell into the categories of *basic" or "general, training beforeemployment in the extension service, "regular" extension training (such asmonthly workshops) and win-service' training on special topics. The trainingafter induction in the service included orientation courses for all staff,monthly workshops for Subject Matter Specialists (SMS) and researchers,fortnightly training sessions for frontline extension workers, communicationmethodology courses for junior and middle level staff, specialized andrefresher courses, study tours and post-graduate courses. NEP I alsointroduced the idea of "Professional Groups" in which specialists in mainsubject matter areas interacted and were provided with training. Under NEPII, the training program in support of extension would be continued andreinforced.

Pre-employment Training of Extension Staff

2. For supply of extension staff, MOA and MOLD rely on: graduates from theUniversities of Nairobi, Egerton, and Moi; diplomates from Egerton College andthe Jomo Kenyatta Colleges of Agriculture and Technology; and Certificateholders from Embu, Bukura, Coast Institutes of Agriculture and the variousAHITIs (for animal health). The policy of the government in the past was toemploy all graduates from all training institutions. By end 1989 that policywas changed. Currently the Extension Services Division of MOA engages about60? of the graduates. The rest are absorbed elsewhere in the agriculturalsector. Many of the newly recruited technical officers (TOs) are now beingdeployed to locational levels where they supervise, guide and give technicalsupport to a team of 5-6 frontline extension workers. It is understood thatthe ultimate aim is to have TOs posted at frontline level which is consistentwith the need to have more competent frontline extension workers as farmerscontinue to require more sophisticated technology. Thus, significant trainingto upgrade TAS to the TO level will be required.

Monthly Workshops and Fortnightly Training Sessions

3. Under NEP I, there was regular monthly and fortnightly training. About90? of the training has taken place although there were occasional disruptionsdue to inadequate operational budgets. The monthly workshops have proved tobe the most effective linkage with research. NEP 1I will continue to providefor monthly workshops to be held involving researchers and SMSs in eachdistrict to discuss technical recommendations relevant to field operations by

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ANNEX 8Page 2 of 5

farmers in the following month. The workshops have provided a forum forresearchers and SMS. to discuss farmers' problems in the field, farmerreaction to new research recommendations and the need for research inproblematic subjects. During the latter years of NEP I, the participation ofresearchers in these workshops decreased. Intensive efforts are now beingmade to correct this situation and put the interaction between research andextension on a sound footing.

4. Fortnightly training sessions (FTS) will continue to be held at thedivisional level for all frontline extension workers. This has been and willcontinue to be the forum for SMSs to discuss field recommendations for thenext fortnight with frontline workers and to listen and respond to feedbackfrom farmers. During the dry season, the frequency of FTSs could be changedto a monthly session although lull periods in crop and/or livestock productionprovide an ideal opportunity for special training to be conducted e.g. oncommunication and other extension methoo3logy subjects as well as on soilconservation. Much more effort is required on the practical aspects oftraining and less on theory. More time and planning will be needed tofacilitate this change.

In-service Training

5. There are four main types of in-service training planned under NEP II:

(a) Orientation Training. Every year new staff will be givenorientation training on the role and functioning of the extensionservice. As new staff join the service, induction and orientationworkshops are conducted for them at district or provincial levelaccording to their number. In the past, research officers were notgiven adequate orientation on the working of the extension serviceand the part they are expected to play in strengthening of thelinkages between the two institutions. Recent formal interactionbetween research (KARI) and extension (MOA and MOLD) have starteda process of collaboration in all aspects of research-extensionlinkages. A series of joint workshops have been planned with thepurpose of orienting both extension and research staff in eachothers' programs and to clarify the mutual expectations of staffinvolvement and their specific roles. These workshops are plannedas an annual activity aimed at new and veteran medium to seniorgrade officers.

(b) URgrading Training. To upgrade professional competence ofextension staff in various disciplines, grants from various donoragencies have been utilized to train staff. Although most of thetraining in the past has been done with non-project funds, thetrained staff have largely benefitted the extension service.

(c) Short Specialized Technical Courses. The SMSs are not yetspecialists in the real sense of the word. They cover a widerange of subjects relating to farmers' production needs. In thepast they have been able to answer most of the farmers productionproblems adequately. With improved extension services and better

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ANNEX 8Page 3 of 5

extension linkages with research, demand for more specializedtechnology is evolving. In order to keep pace with this demandfor specialized technology, MOA attempts to train SMSs in shortspecialized courses locally and overseas. Such courses cover homeeconomics, soil conservation, horticulture, coffee husbandry andgeneral principles of management. Specialized courses may lastfrom two weeks to three months. A considerable number of staffwould be expected to participate in such courses under NEP II.

(d) Communication Training. NEP II aims to further strengthen theextension service through improved communication skills trainingfor extension workers. This applies to communications betweenresearch and extension staff, extension staff among themselves,and between extension staff and farmers. This training wouldinclude the skills of conducting discussions, lectures,demonstrations to groups and individuals. The need for moreeffort to be made in the mastering of such skills was clearlyidentified during NEP I. Better performance in this field wouldenable extension staff to effectively transfer both theoreticaland practical know-how to individuals or to groups.

6. The training of extension workers in communication skills is regarded byMOA as a major role for the Agricultural Information Center (AIC) which runscourses every year for groups of 20 participants. With support from ODA, theAIC has recently completed a video supported training package on the subjectof communication and teaching methodology. MOA has completed the preparationof an extension methodology manual in which the subject of communicationfeatures prominently. This manual was prepared within the framework of theUSAID supported crop post-harvest management program which works with theextension service. A large number of extension staff requires this kind oftraining and a concerted effort is needed. The resources of AIC, Egerton andother universities will be used to train trainers, within the extensionservice, who in turn would conduct extension methodclogy courses at districtand divisional level. These same trainers would be instrumental in trainingresearch staff who also require communication skills in their efforts totransfer technology.

7. To cater for the rising need to provide extension staff and farmers withmore specialized technical training, NEP II will include the appointment of anofficer at senior management level so that a more concerted effort can be madetot

(a) Identify all the specialized training needs of extension staff;

(b) Critically assess the local facilities for providing suchspecialized training and to determine the required resources forestablishing such facilities where they do not exist;

(c) Work out comprehensive annual programs for providing specializedtraining to all staff

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ANNEX 8Page 4 of 5

NEP II has made provision for covering the cost of such training and for theimprovement of training facilities and equipment.

Professional Groups

8. Professional specialization groups were established in 1986 with thepurpose of grouping together SMSs in one specific commodity or group ofcommodities and conducting activities that would upgrade staff in theirspecific area of specialization and discipline and enhance the agriculturalenterprises they were responsible for. Relevant research staff joined thesegroups thereby forming one more link with extension. Groups were establishedin most of the provinces and included those for crops, home economics, soilconservation and animal production. Some of the groups split up intosub-groups for various activities such as for the review of technicalrecommendations. Many activities and responsibilities were envisaged for theprofessional groups. They included:

(a) review of extension recommendations to farmers;

(b) planning and implementation of on-farm trials and observationplots;

(c) preparation of hand-outs containing recommendations for the use offrontline staff and farmers (to be printed by AIC of by districtoffice facility);

(d) provision of feedback to research on farmer reaction to newlyrecommended farm practices or field events of specific interest;

(e) preparation of guidelines for the district annual extensionprogram;

(f) definition of training needs for upgrading of frontline staff: and

(g) acting as facilitators at district monthly workshops.

During NEP I the above tasks were partially accomplished through; visits torelevant research stations; joint visits to farmers fields to examine on-farmtrials, observation plots, and other subjects of interest. Implementation ofthe professional group activities was initially very good but owing toconstraints in transport and allowances, the frequencies of meetings decreasedthroughout 1987. Researchers cooperated well but there was no commitment ontheir part and they did not regard themselves as partners in the operation.Several SMS were found to lack leadership qualities and the requiredinitiative to effectively guide the groups.

9. The professional groups will continue to be the focus of importanttraining activities as well as representing another essential link with theresearch establishment. In line with the operation of KARI's regionalresearch centers (RRCs), the professional groups under NEP II will bereorganized on the basis of the mandate area of each RRC (around 4-5

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ANNEX SPage 5 of 5

districts). This vill enable the formation of smaller and more manageablegroups that would have good contacts with the research center that addressesthe problems of the area and from which researchers will join the groups intheir vork.

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ANNEX 9Page 1 of 2

KENYA

SECOND NATIONAL EXTENSION PROJECT

MONITORING AND EVALUATION

Organization

1. For a monitoring system to be effective, monitoring data must be

demanded by all levels of management. Unless this demand is forthcoming M&Ewill continue to be supply-led and ineffective. Under the Project, managementat all levels will be made aware, through appropriate orientation courses, of

the necessity of timely and accurate monitoring data to ensure efficientmanagerial practices. The information needs at different management levelsmust be identified, and systems designed for their transmittal (paras 4-6).Evaluation results of the overall system should be used by researchers toredirect work programs, by policy analysts to do projections and plan supportservices, and by extension management to modify extension methodologies.

2. The central M&E Units will be augmented, to permit a greater focus onextension. To achieve national coverage, the present rigid tying ofinvestigator staff to a specific district must be changed. A system of

provincial M&E teams supervised by a unit of three officers in theHeadquarters M&E Units, will be developed. For a provincial based M&E team to

service district and provincial managements effectively, a strong commitmentis required on the part of the managerial cadre. The importance of a regularflow of objective data must be recognized and there must be a willingness by

senior management to hold line managers accountable for maint&ining adequaterecords of such monitoring indicators.

3. A greater effort will be made to generate information within the course

of normal extension work. Frontline staff will be obliged to completelogbooks or, alternatively, farmers will be provided with visitors' books thatwill be completed by staff on each visit, together with any advice given. Theadoption of a farm-household systems approach to extension will facilitate the

gathering of primary data on the impact of new technology, since it willstress an experimental interaction at the farm level, rather than didacticapproach of transferring fixed messages. The whole system of on-farm trials,starting at the level of experiments on T&V plots between frontline staff and

farmers and going to the level of controlled trials by staff of RRCs in

cooperation with district Subject Matter Specialists, would be subject to

physical and financial analysis.

4. Information Planning Exercise. An information planning exercise wouldbe undertaken to identify the information systems which are needed to supportthe objectives of the extension service, and provide top management with the

data necessary to support decision making. The information planning exercise

would outline how to arrive at the optimal information system using availablefinancial and organizational resources. The exercise would also show how the

extension service can benefit from developments in information technology.

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ANNEX 9Page 2 of 2

5. A considerable amount of information about the extension service isnecessary in order to design an effective information strategy. Specifically,the following aspects are important: the objectives and critical successfactors; readily available data; the functions of the extension service;informational support currently provided to extension; the information needsof extension; and the effectiveness of current information systems in meetinginformation needs. Knowledge about these aspects of the extension system willpermit the selection of areas of the extension service which should bea.nalyzed in greater detail, leading towards the development of new informationsystems.

6. The actual information planning would take roughly 15 weeks. Anadditional two weeks are planned for training three staff members from HOA.The training would be done by two external experts. During the period of theactual planning activity one expert will be supervising the process. Everythree weeks there would be an evaluation to assess the progress. The trainingof three members of staff is important for: (a) fast access to other membersof the organization; and (b) training them during the first planning sessionto do follow-up studies. Follow-up studies are necessary every two or threeyears or after a major change in the organization. Because all informationgathered during the first information planning will be stored in a computersystem it will be easy to adjust all diagrams and tables to represent a newsituation. A follow-up study will normally take no more than 3 to 4 weeks.

Pilot Project

7. To implement the technological recommendations that come out of theinformation planning exercise and to strengthen monitoring of the extensionsystem, a computer based system would be set up on a pilot basis in fourdivisions of two districts with AIC serving as the coordination center.The purpose of the pilot project will be to train staff in the extensionservice in the use of computers for data communications. This training willhelp staff use computers in their work. Training will be provided inwordprocessing, database and spreadsheet use, and data-communications.Training in wordprocessing and database management can be done by the KenyaInstitute for Administration (KIA). Staff at AIC or KIA can be trained indata communications and in the use and maintenance of communications software.After this training either AIC or KIA will be able to train other staff inusing communication software.

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ANNEX 10Page 1 of 2

KENYA

SECOND NATIONAL EXTENsION PROJECT

Farmer Service Centers

1. The project proposes the inclusion of two Farmer Service Centers (FSCs)which will be established in different geographical locations. These centerswill provide access by farmers to service points dealing with farm machinery,implements, inputs, veterinary services, agricultural information and credit.The centers will also be established with extension and demonstrationfacilities, an office for a local health assistant and space provision for ageneral store.

2. Advantages arising out of the establishment of the pilot FSCs are: (a)coordinated supply of services to local farmers at one location and thesavings to farmers in travelling long distances to a number of locations toobtain these services; (b) farmers' immediate access to technical informationon the type and quantity of input to purchase, and advice on how to use theinput correctly; (c) access by potential rural entrepreneurs to technologicalinnovations; (d) convenience to farmers in getting answers to a wide range ofquestions in one visit; (e) convenience to supply service organizations at acentral point for easy communication and consultation among themselves;(f)ability of extension staff to monitor more closely the distribution ofcervices and inputs to farmers; and (g) provision of a central meeting pointfor farmers to interact and exchange information.

Experience with FSCs

3. Nigeria. FSCs have been an important component of the World Bank-supported Agricultural Development Projects in Nigeria. Operated on a fullcost recovery basis (except in the case of fertilizer which carries a largesubsidy) they have engaged in the retail sales of inputs to farmers. Theirgradual privatization is being sought now, and it is proposed that they shouldoperate as wholesale outlets selling farm supplies to private retailers andfarmer co-operatives. While they have had some management and financialproblems, these FSCs have changed the input distribution situation in thecountry by bringing inputs within the easy reach of small scale farmers.

4. Mauritiu-. The Bank assisted Sugar Industry Project (Cr. 2728-HAS,effective in 1987) supported the creation of the FSC program on a pilot scale,to provide integrated supporting services to smallholders in sugarcane-basedcropping systems. The FSC program falls under the Ministry of Agriculture butoutside the extating structure for agricultural services within the Ministry.t'he approach wes justified on the basis of: Ci) the specific needs ofsmallholder sugarcane growers which extend beyond 'agronomic' extension andinclude assistance in ozganizing labor, transport and factory delivery; and(ii) the need to coordinate these broad extension/raragement services withservices from other suppliers - both private and government 'gencies.

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ANNEX 10Page 2 of 2

5. The FSC pilot program is considered successful by both the Governmentand smallholders. A decision has been made by Government and endorsed by theBank to expand the program to country-wide coverage. The FSC framework hasalso facilitated the implementation of a Land Derocking Scheme and thesuccessful testing of a pilot Land Area Management Unit program involving thegrouping of farmers into economic management units with the objectives ofresolving problems of labor organization, transport and delivery.

Implementation

6. The Working Group would have overall responsibility for the FSCs. Itwould prepare terms of reference ior market and consultant studies, supervisethe physical implementation of the two FSCs, select the governing bodies anddetermine their terms of reference and legal status, and assign theappropriate extension staff to each station.

7. Market studies will be carried out in each area to determine thecritical local bottlenecks in farmer production, such as access to credit,labor saving agricultural implements, fertilizers and chemical pesticides,animal feeds, vaccinations and medicines. The studies would also surveysupplier interest in leasing space at the FSCs, and would indicate the mostsuitable mix of crop and livestock extension services at each location. Oncethe studies have been approved by the Working Group and IDA, suppliers will beformally approached and asked to sign contracts for storefront and storagespace at the FSCs. Consultants would then be commissioned to prepare designsand costs for the construction of each FSC.

8. The FSCs would be managed by a group of representatives from localcooperatives, banks, and farmers' organizations. This group will select andpay a local farmer to run the demonstration farm attached to the FSC, with thehelp of the input suppliers and extension workers. When selecting theappropriate group to undertake this management role, consideration will begiven to the FSCs' operatior. as a non-profit organization where managementstaff salaries, building o1arating costs and maintenance costs would come fromleasing ;.ees paid by the suppliers and the sale of produce from thedemonstration farm.

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ANNEX 11Page 1 of 5

KENYA

SECOND NATIONAL AGRICULTURAL EXTENSION PROJECT

Farmer Training Centers

Backaround

1. Farmer Training Centers have played an important role in Kenya'sagricultural development. During the late 1950s they were used to implementthe plan for the rapid intensification of agriculture. Land consolidation,followed by the introduction of plAnned farming systems incorporating highvalue cash crops and improved livestock was an unfamiliar way of using landresources. There was therefore a felt need to train practicing farmers.

2. Residential training of small scale farmers was started at FTCs, whichwere established in various parts of the country. By the end of the 1950sthere were eight FTCs in the country, and at Independence the number hadincreased to 13, with a combined bed capacity of 930. There are now 27 FTCsunder the direction of MOA with a total bed capacity of 1,600, and two FTCsunder the direction of HOLD. It is estimated that about one million farmersand students have been trained at FTCs.

3. FTCs have been primarily responsible for teaching tea and coffeehusbandry practices to small scale farmers. They have also offered one weekcertificate courses that qualify farmers to receive credit from theAgricultural Finance Corporation for dairy farming, cash crop and farmdevelopment.

4. Because of the emphasis on strengthening the training and visit aspectsof the extension system, financial and manpower support for FTCs declined inthe 1980s, with a corresponding decline in occupancy rates from 80 percent inthe 1970s to the current level of 38 percent. In the last few years, as aresult of an emphasis on increasing farmer productivity, the increasingcomplexity of farming technologies, and the integrated approach to farmingsystems, there has been renewed Government and donor interest in FTCs insupplementing the regular extension services.

Program at PTCs

5. FTCs are used for traini.ag both farmers and extension staff in subjectswhich cannot be adequately covered during the regular visits. In particular,the Farmer Training Centers are utilized for:

(a) Testing and demonstration of a wide range of small scale farmerequipment such as tillage implements, seeders, grain shellers,cassava peelers, oil extractors, chaff cutters for livestockforage, oxen yokes, sprayers and vegetable driers.

(b) Practical training of the district subject matter specialistsduring the monthly workshops.

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ANNEX 11Page 2 of 5

(c) Training of frontline extension workers on subjects which, due tothe time and facilities required, have not been adequately coveredduring their monthly training. This type of training willinclude: (i) use of line levels to lay out soil conservationstructures such as terraces and cut off drains; (ii) establishmentof zero-grazing structures for livestock; (iii) budding of citrusand other fruit seedlings; (iv) training and handling of oxen forland tillage.

(d) Training of farmers on subjects which require more time than ispossible during their brief meetings with extension frontlineworkers. This type of training will embrace:

(i) Animal traction, where farmers will have ample time topractice the training and handling of oxen. To gainreasonable skill in doing so will require up to 1 weekof continuous training.

(ii) Handling and working with different tillage, seeding,weeding and processing equipment.

(iii) Establishment of zero-grazino units and otherlivestock management practices such as dehorningcattle.

se) Hosting high school agriculture classes and 4K clubs anddemonstrating the latest techniques of farm management andagronomy.

(f) Providing a place for women farmers to gather to discuss gendersensitive issues in home economics.

(g) Testing of research findings for adaptability to varying agro-ecological situations. The FTCs will become testing sites foragro-ecological zones where they happen to be situated.

(h) Demonstrations of newly introduced crops which may be unfamiliarto the farmers, such as the wide range of horticultural cropswhich are now emerging as important for export market.

rganization and Management

FTCs generally serve one district, and are under the direction of theW0, who chairs the programming and management committees. The programming)mmittee is composed of district level ministry representatives, and meetsuice a year to design the training program of one to two week courses. Therincipal of the FTC serves as the secretary of the programning committee.se management committee is composed of the Principal and district subjectitter specialists, and is charged with designing the farming demonstration:tivities at the FTC farm. There is no local farmer representation on eitherminittee.

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ANNEX 11Page 3 of 5

7. At the FTC, the Principal supervises the training program, and a FarmManager supervises the da7 to day operations of the FTC farm. Each FTC has acomplement of resident instructors in subjects such as crop production, animalproduction, farm management and home economics, and a number of administrativeand support staff. All the staff assigned to the FTC are drawn from theregular extension service, and are often assigned to the FTC on a short termbasis. There are no financial or professional rewards associated withteaching at the FTCs.

8. FTCs are currently being financed directly by Treasury, with the DAO incharge of budgeting, procurement and revenue collection. All fees collectedand revenue generated have to be remitted to Treasury, and operating andinvestment expenditures allocated from Treasury. The administrativeprocedures involved with securing funds often lead to delays in receivinginputs on a timely basis. Given the liquidity problems as a result ofTreasury allocation, the demonstration farms are operated for subsistencerather than profit.

Proposed Changes

9. Several changes have been proposed in the organization and management ofFTCs. A proposal under consideration is to manage the FTCs through a Board ofGovernors which would include district representatives of differentministries, representatives of farmers cooperatives, and local farmers. Theautonomy of the Board would enable it to act quickly and independently toaddress issues concerning the FTC. The participation of representatives fromfarmers cooperatives and local farmers on the Board would enhance therelevance of courses and demonstrations to the local farming community. Aproposal has been made that the management of the demonstration farms would becontracted to local cooperatives that would run the farms on a self sustainingbasis. Permanent teaching staff would be assigned to the FTCs on a longerterm (three to four years) basis. In addition, subject matter specialists andresearchers would be given professional recognition for teaching courses atFTCs and conducting on-farm demonstrations. A proposal has been made that allrevenues collected by the FTC should be kept in an FTC Fund and used tosupport operating and investment expenditures.

Implementation

10. The Government has agreed to prepare a strategic framework andmasterplan for the development of FTCs. This strategic framework woulddiscuss the role and function of FTCs in the overall extension system, and thenature of the support they would provide to the training and visit system.The masterplan would include the management and financing arrangements, theprogram of courses (prepared with the help of FINNIDA) and the proposedimplementation timetables for the rehabilitation of FTCs.

11. Three FTCs would be selected for rehabilitation and refurnishing duringthe first three years of the Project. Site surveys and business plans,detailing the financial arrangements (budgeting, recurrent costs, salaries),managerial arrangements, staffing and training programs, would be prepared anddiscussed with IDA. Rehabilitation would commence upon IDA approval of the

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ANNEX 11Page 4 of 5

proposed plans. The performance of these three FTCs would be closelymonitored by the Government and IDA based on the criteria established in thebusiness plans.

12. As part of the midterm review, an overall evaluation of the three FTCswould be undertaken. If the evaluation were favorable, the rehabilitationwork would proceed on the remaining FTCs.

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ANNEX 11Page 5 of 5

Farmers Training Centers

Year Location BedName of FTC Started Province District Capacity Acreage

Kaimosi 1958 R. Valley Nandi 40 200Kabianga 1959 Kericho 45 100Baringo 1972 ' Baringo 60 500Chebororwa 1959 K. Marakwet 60 2,469Ngong' 1965 * * Kajiado 40 15Wambugu 1958 Central Nyeri 120 205Waruhiu 1958 Kiambu 48 5601 Joro Orok 1975 * Nyandarua 60 118Kenyatta 1960 M Murang'a 120 134Kamweti 1976 * Kirinyaga 60 46Njabini 1964 Nyandarua 40 60Thika 1964 Murang'a 32 23Machakos 1961 Eastern Machakos 80 800Kitui BL1 1960 Kitui 60 209Kaguru 1957 Meru 86 67Zmbu (revived) 1961 Embu 40 9Mtwapa 1964 Coast Kilifi 48 150Taita 1971/72 T/Taveta 60 92Mpeketoni 1984 Lamu 24 10Busia 1984 Western Busia 60 98Bungoma 1973/74 U Bungoma 60 93Bukura 1959 * Kakamega 44 66Kisii 1961 Nyanza Risii 100 80Haseno 1958 Kisumu 60 20Homa Bay 1956 * S/Nyanza 90 6Siaya 1979 * Siaya 60 70Garissa 1987 N. Eastern Garissa 28 176Wajir - U Wajir 21 1000Narok R. Valley Narok 80 700

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ANNEX 12Page 1 of 2

KENYA

SECOND NATIONAL EXTENSION PROJECT

Mass Media and Communications

1. Background. Kenya Broadcasting Corporation (formerly Voice of Kenya)is the Government owned radio and television broadcast service in Kenya. Theradio service broadcasts in Swahili, English and ethnic languages, and reachesmost of urban and rural Kenya. The television service broadcasts to Nairobi,the Rift Valley, Mombasa and Kisumu. A new television station, KenyaTelevision News, recently started operation in the Nairobi area, and willexpand to other major cities. Recent reports estimate that there are1,800,000 licensed radio rece'!ers in Kenya (84 per 1,000 inhabitants) and115,000 licensed television sets (5 per 1,000 inhabitants). There are fourmajor daily newspapers in Kenya, three published in English, and one inSwahili. There are also 11 rural newspapers published in ethnic languageswith a combined circulation of 65,000.

2. Institutions. The Ministry of Information and Broadcasting isresponsible for the production and dissemination of information. At theMinistry of Agriculture, the Agricultural Information Center, which is part ofthe Agricultural Information Branch, produces radio programs and articles fordissemination through the media services.

3. Media Strategy. Detailed plans for a media strategy will be preparedby a consultant prior to implementation of this component. The strategy wouldlikely include the following elements:

Radio programs will be prepared, using dramatization, interview,discussion, documentary and news formats. Surveys will be undertakento determine the listening habits and characteristics of the targetaudience. These programs will be pre-tested to determine theirviability, and their impact will be monitored.

Television programs will not reach the majority of Kenyan farmers,but will reach the important decision makers in the Government andprivate sector. Only four programs will be prepared each year. Theseprograms will be reproduced on videotape for use at FTCs, RRCsand in staff training.

Print media will be used extensively. There are very goodagricultural advice columns in the local press, and these will besupplemented with longer feature stories on the latest technologiesand farming methods.

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ANNEX 12Page 2 of 2

Drama has proven to be an effective medium of communication. Itprovides entertainment while informing and educating the audience.The plays would be written with the help of subject matterspecialists, and would be performed by local and university basedtheater groups. Discussions would be held after each performance toanswer questions that are raised. Local artists and school childrenwould also be asked to depict agricultural subjects, for display atcommunity centers and FTCs.

Publicity campaigns wculd be undertaken at critical times such asplanting and harvesting. These campaigns would reirforce themessages delivered through other forms of media, and would includethe use of posters, flyers, billboards, T-shirts, and kangas.

4. Implementation. MOA has agreed to hire a media consultant to managethe mass media component. AIC will serve as the hub of activities, and wouldproduce many of the radio programs and publish written materials for which italready has the staff and equipment. To avoid increasing the staff at AIC,and to stimulate the already vibrant private sector, most of the work will becontracted out to local firms, with the mandate to focus on specific targetaudiences. or types of programming. To the extent possible, farmers will beinvr.ved with the formulation and production of these programs, so that therelevance and appeal of the programs would be enhanced.

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ANNEX 13Page 1 of 3

KENYA

SECOND NATIONAL EXTENSION PROJECT

THE NATIONAL AGRICULTURAL RESEARCH PROJECT (NARP)

Objectives and Strategy

1. Major objectives of NARP are to: (1) focus on priority research programswith a significant likelihood of high and early returns to investments; (ii)develop technologies that contribute to increased productivity particularly ofsmall holdings; (iii) intensify producer participation in research programformulation; and (iv) strengthen linkages between research and otheragricultural services such as extension as well as between KARI and otherinstitutions involved in agricultural research, in particular theuniversities, private enterprise and international organizations.

2. The strategy to achieve these objectives has been for GOK to reorganizethe various agricultural research establishments into a single, new KARI.This enables GOK to: (i) establish clear research priorities and to adhere tothese while coordinating external aid; (ii) develop a long-term strategy,consisting of a KARI corporate plan and appropriate crop, livestock, factorand disciplinary research programs; and (iii) develop and introduce improvedmanagement systems from headquarters to field research activities. Theseimproved systems are envisaged to lead to better supervision of individualresearch programs, stations and staff; more stringent budgeting and financialmanagement; and more meaningful research reporting, monitoring and evaluation.

General Description of NARP

3. NARP is being financed by GOK with external financing by IDA, and (inparallel) by several other donors. Implementation is phased as a function ofavailable GOK and external funding, the existing and anticipatedimplementation capacity of KARI, the results of the researcher trainingprogram and access to external expert assistance. Taking these limitingfactors and donor commitments into account, NARP comprises the following fourmain components:

- Assistance for the restructuring of KARI as a semi-autonomousgovernment agency which undertakes research planning, management,budgeting, supervision, reporting, and training. USAID and EECare major bilateral donors; the IDA component supports theestablishment of identified elements of the management informationsystems, facilitates donor coordination and provides requiredequipment and civil works.

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ANNEX 13Page 2 of 3

_ The development of KARI's management and research capacity throughstaff training and external expert assistance in selected areas(funded by bilateral donors).

_ Support for the execution of adaptive research programs coveringall of Kenya's agro-climatic zones and for equipment andrehabilitation of the Regional Research Centers (RRCs). The IDAcomponent ensures full establishment of all RRCs, some of whichare aided also by other donors.

- Assistance to implement critical nationally coordinated commodity,factor and disciplinary research programs for applied research andto the rehabilitation of the National Research Centers (NRCs) fromwhich such programs will be managed. All major donors areinvolved with USAID particularly supporting major cereal programs,ODA animal health, the Netherlands animal production and the EECsoil fertility management. The IDA component assists approved keyprograms in terms of non-salary operating costs, equipment andcivil works.

Important features involved in these components are:

- Introduction of a new Scheme of Service for KARI staff.

- A rationalization of the present station network simultaneouslywith the establishment of the RRCs and NRCs by using all otherstations exclusively as testing sites.

- Improvement of research/extension linkages through jointactivities and better technical training of extension staff.

- Development of strong linkages of KARI with related researchinstitutions in Kenya, in other countries and with theInternational Agricultural Research Centers.

- Strengthening of KARI's capacity for coordination of donorassistance to agricultural research.

4. In terms of research program development, one of the major objectives ofNARP is to facilitate adaptive research to ensure that new recommendations areindeed translated into messages that are technically and economically viablefor farmers in specific agroclimatic environments and socio-economiccircumstances. NARP, therefore, includes the strengthening of a network ofeight RRCs, each serving an identified agro-ecological zone; in addition thereare two Centers focussing especially on adaptive livestock research in dryenvironments. The RRCs through on-station and on-farm experiments, aredesigned to develop packages of agronomic practices and improved managementmethods for crops and animals in production systems that maximize returns tofarmers while attempting to minimize risk. The RRCs also play a key role inidentifying research priorities at the NRCs through feedback. In order tomake this possible, research and extension are encouraged to work closelytogether; the envisaged liaison structure for research and extension is shown

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ANNEX 13Page 3 of 3

in Chart 1. NARP provides for RRC rehabilitation in terms of civil works,equipment and research farms, construction of laboratories and housing, thepurchase of new equipment and finances a (declining) part of the non-salaryoperating costs of research; it also includes provisions for trainingequipment, transport and travel allowances to facilitate closerresearch/extension linkages.

5. There are sixteen NRCs with tentatively assigned research programs.Initially, the nationally coordinated research programs will emphasizeadaptive research on critical aspects of important food grains, livestockproducts and production factors. The NRCs have principal responsibility forgenerating and testing improved technologies for commodities, factors ofproduction or disciplines. Each is establishing a multidisciplinary team ofscientists in relation to the production problems to be addressed. KARI alsouses donor assistance for the establishment of a Research Fund in order tocontract special research projects to other Kenyan institutions in Kenya (e.g.Nairobi University) and outside (for example the IARCs). The NRCs are beingrehabilitated, involving civil works, research farm development, purchase offarm and laboratory equipment as well as transport and provided with increasednon-salary operating funds and essential facilities to carry out priorityresearch.

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ANEX 14Page 1 of 2

KENYA

SECOND NATIONAL EXTENSION PROJECT

IFAD Projects With Extension ComponentsUnder Which Financing Will be Made Available for NEP II 1/

1. As part of its ongoing development cooperation with the Governmentof Kenya, IFAD will be undertaking several rural development projectswhich have a bearing on the second National Extension Project (NEP II).These include the Kwale and Kilifi Districts Development Project(KKDDP), the Siaya Farmers Groups and Community Support Project (FGCSP),and the Coast Province Arid and Semi-Arid Development Project (CoastASAL).

2. The KKDDP which will cost approximately USS14m, was launched inNovember 1989, and is expected to become operational during calendaryear 1990. The project is area-based, and covers mainly the high tomedium potential areas of Kwale and Kilifi. Its primary objective is toincrease smallholder production and incomes in the two districts.Accordingly, the project has development components on crops, livestock,adaptive research, irrigation, fisheries, cooperative development, andtraining. The project was preceded by a pilot project through whichsuccessful approaches to implementing its many components were evolved.

3. The Siaya FGCSP is currently an area-based pilot project withinSiaya District. The pilot project comes to an end on 30th June, 1990,with a possible extension to 30th June, 1991. As in KKDDP, the projectis multi-component, and includes crops, livestock, adaptive research,fisheries, community development, and training. Over and above theseproduction-related activities, the pilot project has a strong componenton community health and rural water supply.

4. On the basis of the experience gained from the pilot project, IFADand GOK have formulated FGCSP Phase II which will, in addition to Siaya,cover South Nyanza, Kakamega, and the two Kieni Divisions in NyeriDistrict. Phase II will include all sectoral components covered in theSiaya Pilot Project, with an additional irrigation component in KieniDivisions.

5. In both KKDDP and Siaya FGCSP, the project activities areimplemented in line with the Government's District Focus Strategy forRural Development. The project activities are part and parcel ofdistrict and line-m4nistry activities; the priorities are established bythe relevant district level authorities, i.e. the District ExecutiveCommittees and the District Development Committees; and the budgetary,accounting, and auditing procedures are in line with the Government's

11 Draft prepared by IFAD, March 7, 1990.

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ANNEX 14Page 2 of 2

own procedures. Indeed, one of the primary objectives of the twoprojects is to strengthen district development institutions. Withregard to NEP II, crop development is a critical element in bothprojects, and NEP II is the key input to crop development. It istherefore of utmost importance that NEP II be thoroughly linked with thecrop development activities, and these in turn be linked to the otheractivities in the two projects.

6. In addition to the two area-based projects, IFAD and theGovernment are in the process of formulating a project covering the ASALdistricts of the Coast Province. The project will cover Lamu, TanaRiver, and Taita-Taveta districts. In summary, the districts underwhich IFAD parallel financing arrangement will apply under NEP II areSouth Nyanza, Siaya, Kakamega, Nyeri, Kwale, Kilifi, Taita-Taveta, TanaRiver, and Lamu.

7. Under NEP I, the funding for extension was done under cofinancingarrangement by the World Bank and IFAD. With the experience gainedunder the two pilot projects and with the formulation of the projectsproper, it is now important that the financing for NEP II in thedistricts covered by KKDDP and FGCSP be directly linked with the projectactivities in the districts concerned. It is therefore intended thatNEP II funding in the relevant districts will be done wholly by IFAD,and that the funding will be parallel to that of IDA. Accordingly,separate budget heads will be opened for IFAD and IDA in theGovernment's Development Estimates. The budgeting, disbursements,accounting, auditing, and claims for reimbursement under each head willbe done separately. In this way, the financing and implementation ofNEP II will be better linked with KKDDP and FGCSP. It must, however, beemphasized that the formulation, appraisal, and supervision of NEP IIwill remain national in character, and that the Bank will be responsiblefor NEP II supervision both within and outside districts covered by IFADprojects.

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Annex 15Page 1 of 4

KENYASECOND NATIONAL EXTENSION PROJECT

SUPERVISION PLAN

1. Importance of Supervision. Project supervision of NEP I wascarried out by the Bank, with the assistanca of the Government. The Bankhad complete control over the supervision of the project because IFADprovided financial support to the project under a joint financingarrangement wtth the Bank, and entered into an administrative arrangementgiving the Bank responsibility for project supervision. Formal supervisionmissions, and a midterm review, were conducted by the Bank, andmodifications were suggested to the Government. In addition, informalsupervision was conducted by an extension specialist at the residentmission, and by a long term consultant hired by the Bank to do fieldsupervision on a daily basis. These supervision efforts were vital to thesuccess of the project, as they assisted the Government in establishing theT&V system of extension management in 30 districts, and ensured its properfunctioning.

2. Supervision will become even more important under the newproject. There are a number of new components and pilots in the project,that will require close supervision and assistance in start-up. Thesecomponents are: ASAL prototypes, mass media, FTCs, FSCs, quarterlyworkshops for women, work with farmers' cooperatives, revision of theeducational curricula, and cost recowery from KTDA. Some changes are alsonecessary in the management of the extension system, given the newarrangements made for cooperation between MOA dnd MOLD.

3. IFAD's support will take the form of parallel, rather thanjoint, financing. IFAD has three projects with significant extensioncomponents: Kwale and Kilifi Districts Development Project (KKDDP); SiayaFarmers Groups and Community Support Project (FGCSP); and the CoastProvinces Arid and Semi-Arid Development Project (Coast ASAL). Funds willbe provided under the IFAD proj--ts to cover extension in the ninedistricts covered by these three projects. The Government, IFAD and theBank agree that the extension system is national in scope, and that thesupervision of the project should be done on a national basis in a unifiedmanner. The purpose of this supervision plan, agreed with the Governmentat negotiations, by both IFAD and the Bank, is to clarify supervisoryresponsibilities.

4. Role of the Bank. The Bank will supervise the project,including the extension components of IFAD's three projects. The Bankalready has an administrative arrangement with IFAD to supervise KKDDP. Itwill enter into administrative arrangements with IFAD to supervise theextension components of the FGCSP and Coast ASAL projects. The Bank willbe responsible for all aspects of project supervision, including review ofprogress reports, component preparation reports, consultant studies, annualwork programs, procurement actions, expenditure monitoring, disbursements,correspondence, field supervision, and the midterm review. Routine

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Annex 15Page 2 of 4

supervision is expected to take five staff weeks per year. Formalsupervision missions, in which IFAD will be invited to participate, willtake place twice a year. Supervision of other project components will takeplace according to the schedule attached, for a total of 25 staff weekseach year.

5. Role of IFAD. In order to enable the Bank to supervise theproject on a national scale, IFAD will enter into administrativearrangements giving the Bank full responsibility for supervising thecomponents of its projects that are related to extension. In order toenable the Bank to carry out effective supervision, IFAD will provide theBank full information about the non-extension components of its threeprojects. IFAD will participate in the formal supervision missions of NEPII, and will invite the Bank to participate in the formal supervisionmissions of the FGCSP and Coast ASAL projects. The procedures establishedfor supervision will be reviewed as part of the midterm review, andmodified as needed.

6. Role of the Government. The Government will extend its fullcooperation to the Bank. As part of the annual work programs, it willprovide a review of the progress made in the implementation of variousproject components, the status of disbursements, the coming year'sprocurement documentation, and issues that require the specific attentionof the Bank. MOA and MOLD will assist in setting up the supervisionmissions, in briefing the missions on arrival, and in attending the missionwrap-up meetings.

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ANEX 15Page* of 4

e Activity Expected Skill Staff Input (SW)ReauIremennt

Preparatlon of Procurement 2.0Procurement SpecialistDocuments

Implementation of: Took Manager 6.0MBOA-MOLD pilot; Extension SpecialistKARI-MOA-SMOL Roeearch Speciallstagreements

Prr-efftcti venoe Tosk Manager 14.0mission: review of: Extension Specialistconditions of Reoearch Specialisteffectiveness; Civil Engineerannual work program Comunicationsfor first year of Specialistprojcet; eass mediacomponentpreparation; FSCmrket surveys;stotus of FTCf rameork

Review of: study Task Man. r 10.0TORs; cost recovery; ASAL SpecilistASAL prototype WID Specialistproposals; work with Organizatlonalwomen; staffing Specialistlevels at MOA; FTCbusiness plans

Review of: annual Tosk Manager 12.0work programs; Extension Specialistcoemunications Rsearch Specialistpilot.; *xtonsioq Procurementmethodology; Specialistlpl eme ntation of ASAL SpecialistASAL prototype.;MBA-MOLDrrang ement.; FSCs;

cooperation withKARI; progress withstudies

Review of: extension Task Manager 10.0methodology; and Specialists ascooperation with noededKARI progres ofstud as; staffinglevels at MBOA; workwith women; FTCs

Two supervision Task Manager and 20.0aission, one to Specialist. ascoincide with review neededof annual workprograms

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ANNEX 15Pat 4 of 4

1994 Midterm Review plus Took Manager and 36.0one supervision Specialists asmis*lon needed

1996 - 1997 Two supervision Took Manager and 60.0missions each year, Specislio t as neededone to coincide withreview of annualwork progrm

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ANNEX 16

KENYA

SECOND NATIONAL EXTENSION PROJECT

Technical Assistance and Consultant Studies

Comronent Man-Months

Organization and Management of Extension Services

MOA - Headquarters

* Procurement 8* Accounting and Auditing 10* Impact Assessment Studies (8) 52- Organization of MOA and MOLD 6* Staff Deployment at MOA and MOLD 6* Other Technical Assistance 12

Monitoring and Evaluation

* Information Planning and Pilot Project 15

Extension Methodologies

Mass Media and Communications

* Television Programs and Videos 26* Radio Programs and Spots 34* Publicity Campaigns 14* Community Media 14* Print Media 7* Q & A Pilot System 8

Farmer Service Centers

* Market Studies 4

Training

* Educational Curricula 6

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ANNEX 17

KENYA

SECOND NATIONAL EXTENSION PROJECT

Documents in the Proiect File

1. Detailed Cost Tables

2. Project Financial Analysis

3. Project Economic Analysis

4. Consultant Terms of Reference

5. J.K. Gatheru, "Case Study on Kenya's Agricultural ExtensionServices and Women Farmers".

6. W.W. Wapakala, "Crop and Livestock Technologies in Kenya".

7. Prode BV, "Agricultural Education and Training in Kenya".

8. C.J. King, "Soil and Water Conservation in Kenya".

9. MOA, "Future Management of Farmer Training Centers".

10. J. Young, "Media Strategy to Develop the Agricultural Sector".

11. Agrimathica VB, "Communications Aspects".

12. List of Other Documents in the Project File

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