Second Kenya Devolution Support Program

active

KDSP II is structured around the implementation of national and county government actions, and the achievement of national and county results across three Key Result Areas (KRAs). The Program operational structure is as follows: a. At the national level, the Program will be supported by the Bank through both an IPF and PforR component. The IPF will support TA and capacity building, while the PforR will incentivize the timeliness of transfers from national to county governments, through Disbursement-Linked Indicator (DLI) 1. Specific results under DLI 1 will include the automation of the county exchequer process and more timely communication between national and county governments on conditional grants to be received by counties. b. At the county level, the Program will be supported through DLIs that will fund two types of conditional grants enhancing the present conditional grant allocation system:• DLI 2 is linked to the Institutional Grant (Level 1 Grant) which will incentivize counties to set up core governance and institutional arrangements for management of public resources, which will enhance capacity and facilitate achievement of Program results, and support Program coordination. • DLIs 3 to 7 are linked to the Investment Grant (Level 2 Grant) which will be used to finance county investments to support service delivery.