FOR OFFICIAL USE ONLY Report No: RES46127 RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF PROGRAM TO STRENGTHEN GOVERNANCE FOR ENABLING SERVICE DELIVERY AND PUBLIC INVESTMENT IN KENYA (GESDEK) APPROVED ON SEPTEMBER 7, 2017 TO THE REPUBLIC OF KENYA Governance Global Practice Eastern and Southern Africa Region Regional Vice President: Hafez M. H. Ghanem Country Director: Keith E. Hansen Regional Director: Asad Alam Practice Manager/Manager: Nicola J. Smithers Task Team Leaders: Onur Erdem, Leonard Mutuku Matheka The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement CMC Cash Management Meeting COVID-19 Coronavirus Disease 2019 CPF Country Partnership Framework DLI Disbursement Linked Indicator DLR Disbursement Linked Result DPF Development Policy Financing EACC Ethics and Anti-Corruption Commission e-GP Electronic Government Procurement e-ProMIS Electronic Project Monitoring Information System G2G Government-to-Government GDPs Government Digital Payments GESDeK Governance for Enabling Service Delivery and Public Investment in Kenya GHRIS Government Human Resource Information System GIMIS Government Investment Management Information System GIPE Government Investment and Public Enterprises GoK Government of Kenya HR Human Resource IFMIS Integrated Financial Management Information System IFR Financial Report IMF International Monetary Fund IPF Investment Project Financing IRI Intermediate Result Indicator ISR Implementation Status and Results Report IT Information Technology IVA Independent Verification Agent KRA Key Result Area M&E Monitoring and Evaluation MDA Ministries, Departments and Agencies MIS Management Information System MTR Mid-Term Review NT National Treasury OAG Office of the Auditor General OCDS Open Contracting Data Standard PCN Project Concept Note PDO Program Development Objective The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) PFM Public Financial Management PFMR Public Financial Management Reform PFMRS Public Financial Management Reform Strategy PforR Program-for-Results PIM Public Investment Management PIMIS Public Investment Management Information System POM Program Operations Manual PPADA Public Procurement and Asset Disposal Act RA Result Area SC State Corporation SDD System Design Document SPP State Procurement Portal SRS System Requirement Specification UAT User Acceptance Testing UPN Unified Payroll Number WBG World Bank Group DATA SHEET (Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) - P161387) BASIC DATA Project ID Financing Instrument IPF Component P161387 Program-for-Results Financing No Approval Date Current Closing Date 07-Sep-2017 31-Dec-2022 Organizations Borrower Responsible Agency The National Treasury,Office of the Auditor General,Ministry The Republic of Kenya of Public Service, Youth and Gender Affairs Program Development Objective(s) To improve utilization and transparency of resource management in selected service delivery MDAs. OPS_TABLE_PDO_CURRENTPDO The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date IDA-61330 07-Sep-2017 28-Sep-2017 15-Jan-2018 31-Dec-2022 150.00 59.38 94.27 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING 1. The Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) was approved by the Board on September 7, 2017 and declared effective on January 15, 2018. GESDeK is a Program-for- Results (PforR) operation financed by the World Bank and with parallel financing from Agence Française de Développement (AFD) with an original allocation of US$150 million from the World Bank and €30 million from AFD. The AFD added an additional €30 million to its total financing for the operation during program implementation and has made available a technical assistance grant in the amount of €1.5 million to support the achievement of results under the Program. 2. The Program Development Objective (PDO) is to improve utilization and transparency of resource management in selected service delivery Ministries, Departments, and Agencies (MDAs). The Program is designed to support the implementation of the Government’s Public Financial Management (PFM) reforms as outlined in the Public Financial Management Reform Strategy (PFMRS) for the period 2018-2023. The Program’s Key Result Areas (KRAs) tracked through the achievement of Disbursement Linked Indicators (DLIs) are aligned with those of the PFMRS and include: (i) prioritized public investments; (ii) reliable funding for service delivery and public investments; (iii) efficient and transparent procurement; (iv) consolidated staff data; (v) timely and quality financial statements and audits; and (vi) strengthened fiduciary assurance and transparency. 3. The progress toward the achievement of the PDO is currently rated Moderately Satisfactory. The Program achieved commendable progress in several KRAs despite the delays experienced at its inception due to the administrative transition in the aftermath of the general elections in 2017, as well as the challenging operating circumstances the Government has faced since the onset of the Coronavirus Disease 2019 (COVID-19) health pandemic in 2020. As of October 2021, 13 DLIs (out of a total of 27) have been achieved, prompting the World Bank’s disbursement of the US$21.5 million associated with these DLIs. These achievements have been registered in the following KRAs: (a) prioritized public investments; (b) reliable funding for service delivery and public investments; (c) consolidated of staff data; (d) timely and quality financial statements and audits; and (e) strengthened fiduciary assistance and transparency. In addition, the Government reported that four more DLIs have been achieved and are pending verification by the Independent Verification Agent (IVA) prior to the disbursement of funds associated with these DLIs. A total of US$58.6 million has been disbursed since program inception (38.65percent of the total credit) of which US$37.5 million was advanced at Program inception toward the achievement of DLIs and US$21.5 million was directly linked to the achievement of DLIs associated specifically with this amount. During this period, AFD disbursed €35 million (58 percent of its total credit.) 4. The achievements in the abovementioned areas reflect concrete steps in adopting improved processes underpinning public investment and spending efficiency. Highlights of these steps include: (i) the establishment of a Public Investment Management (PIM) Unit and the introduction of PIM Guidelines to inform the decisions regarding the identification, design, and implementation of public investment projects; (ii) a new cash management framework and the design of an automated cash management system to improve the predictability of fund flows regarding government services and projects; (iii) a roadmap to introduce an e-Government Procurement (e-GP) system to enhance efficiency, transparency, and value for money in public procurement; (iv) a roadmap to introduce a Government Human Resource Information System (GHRIS) to facilitate the consolidation of HR and payroll data; (v) the preparation of financial statements consistent with information from the Integrated Financial Management Information System (IFMIS); and (vi) an Internal Audit Manual to guide internal audit in government agencies in line Page 5 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) with international good practice. Table 2 provides a summary status of DLIs at the time of the last round of verification by the IVA in June 2020.1 Table 1: Status of DLIs from verification by the IVA DLI Description Target Status DLI KRA 1: Prioritized Public Investments 1 DLR 1a: PIM Unit established in NT June 2018 Achieved and IVA-confirmed 2 DLR 1b: Approved PIM Manual & user requirements June 2018 Achieved and IVA-confirmed for e- ProMIS which addresses key challenges in PIM, including prioritization, costing, and transparency 3 DLR 1c: UAT complete for enhanced e-ProMIS and June 2019 Not achieved IFMIS 4 DLR 1d: Projects with capital allocations above KES. By June 2020 Not achieved 100 million, which are in compliance with (10 projects) procedures in the PIM manual. KRA 2: Reliable Funding for Service Delivery and Public Investments 5 DLR 2.1a: UAT of cash management and exchequer June 2018 Achieved and IVA-confirmed systems 6 DLR 2.1b: Guidelines adopted by NT which require June 2018 IVA to confirm that revised MDA cash plans protect service delivery and infrastructure budget priorities 7 DLR 2.1c: Average under-release of priority By June 2020 Measurement challenges operational service delivery budget allocations Below 5 percent of expressed as a percentage of revised in year cash quarterly cash plans plans on a quarterly, then monthly basis. 8 DLR 2.1d: Annual exchequer releases to GoK capital By June 2020 Achieved and IVA-confirmed for FY budget allocations as a percent of the approved 93 percent 2018/19 budget. Not achieved in FY 2019/20 9 DLR 2.2: Actual domestic (tax plus non-tax) revenue By June 2020 Not achieved (83.9 percent for collections as a percentage of the annual budget. 93 percent 2019/2020) 10 DLR 2.3a: In year borrowing plan consistent with June 2018 Achieved and IVA-confirmed delivering cash for MDAs based on a compilation of the cash plans using the new system 11 DLR 2.3b: Average underperformance of quarterly By June 2020 Measurement challenges net domestic borrowing as a percentage of what is Under 35 percent planned in revised in year cash plans. of plan KRA 3: Efficient and Transparent Procurement 12 DLR 3a: Roadmap agreed for upgrading the e- June 2018 IVA to confirm procurement system, including SPP aligned to requirements of PPADA and attendant regulations. 1The onboarding process for the IVA to conduct the next round of verification was launched in September 2021 and the verification process is expected to be completed in December 2021. Page 6 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI Description Target Status 13 DLR 3b: UAT for upgraded e-procurement system June 2019 Not achieved and State Procurement Portal Complete 14 DLR 3c: number of MDAs using the e-procurement By June 2020 Not achieved system in compliance with the PPADA and attendant 5 MDAs regulations for the full fiscal year and procurement data disclosed in SPP following OCDS. KRA 4: Consolidated Staff Data 15 DLR 4a: Plan adopted GHRIS to be enhanced to June 2018 Achieved and IVA-confirmed handle consolidated Human Resource (HR) data from MDAs which interfaces with IFMIS 16 DLR 4b. Number of MDAs whose payroll data has By June 2020 Not achieved been uploaded to GHRIS, and data are up to date. 5 MDAs KRA 5: Timely and Quality Financial Statement and Audits 17 DLR 5.1: The percentage of MDAs the National June 2020 – 30 Partially achieved for FY 2018/19 Treasury has reviewed the quality of Annual Financial percent, Statements generated from IFMIS and has submitted generated from to the OAG within four months IFMIS 18 DLR5.2a: Approval of audit codes that classify risk June 2018 Achieved and IVA-confirmed clusters to enable efficient targeting of audit resource 19 DLR 5.2b: Enhanced audit methodology and quality June 2019 Achieved and IVA-confirmed assurance framework approved 20 DLR 5.2c: percentage of MDAs, whose financial By June 2020 Achieved and IVA-confirmed statement audits have been completed within three 15 percent of MDAs months after OAG receipt of final financial statements using an improved methodology, undergone quality assurance 21 DLR 5.2d: Months between receipt of consolidated By June 2020 Achieved and IVA-confirmed and quality assured financial statements by OAG and 6 months submission of the audited financial statements to Parliament KRA 6: Strengthened Fiduciary Assurance and Transparency 22 DLR 6.1a: MDAs can access multiyear itemized and June 2018 IVA to confirm facility-level budget and outturn data for all MDAs in searchable form through the budget module in the IFMIS 23 DLR 6.1b: UAT of the online public interface which June 2019 Not achieved provides information in a searchable form on programs, and projects and transfers to service delivery unit 24 DLR 6.1c: No. of MDAs where information is publicly By June 2020 Not achieved available online in searchable form on a) program 5 MDAs, including expenditure, b) project expenditure, and c) transfers education and to service delivery units. health 25 DLR 6.2a: Complete diagnostic study of internal audit June 2018 Achieved and IVA-confirmed Page 7 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI Description Target Status 26 DLR 6.2b: Updated manuals and QA framework for June 2019 Achieved and IVA-confirmed internal audit to strengthen assurance and risk management are in place 27 DLR 6.2c Annual and quarterly MDA Internal By June 2020 IVA to confirm Audit Reports have been prepared and 10 MDAs undergone QA in line with enhanced procedures for assurance, risk management and audit follow up. Note: DLR = Disbursement-Linked Result; e-ProMIS = Electronic Project Monitoring Information System; GoK = Government of Kenya; NT = National Treasury; OAG = Office of Auditor General; OCDS = Open Contracting Data Standard; PPADA = Public Procurement and Asset Disposal Act; SPP = State Procurement Portal; QA = Quality Assurance; UAT = User Acceptance Testing. II. RATIONALE FOR RESTRUCTURING 5. The proposed modifications to the DLIs respond to the lessons learned during the implementation of the PFMRS and the experience with PforR as an instrument to catalyze institutional reform in Kenya. The Government of Kenya (GoK), the World Bank, and AFD undertook a virtual Mid-Term Review Mission (MTR) between November 30, 2020 and December 11, 2020 to review the progress of the Program. The MTR: (i) reviewed Program implementation status and progress toward the achievement of the DLIs; (ii) assessed ongoing and emerging challenges and risks limiting implementation progress; and (iii) outlined actions to ensure that the program remains on track. The GoK and World Bank teams reviewed the relevance of the KRAs and determined the scope for restructuring them to maximize impact and ensure continued alignment with the PDO. The MTR also reviewed the Program management, monitoring and supervision arrangements, and the Program Action Plan, and actions were decided to further consolidate the sustainability of the reforms achieved through the Program. 6. In addition to reviewing the status of progress toward the achievement of DLIs, the MTR reviewed the status of the actions that had been agreed on during an implementation support mission conducted in July 2020. These actions, expected to have been achieved by the inception of the MTR, concerned the following KRAs where performance had been constrained: a) PIM; (b) cash management; (c) public procurement; (d) HR management, and (e) transparency and accountability. The MTR noted that of these actions, those concerning the regularity and outcome of Cash Management Committee meetings, and the introduction of GHRIS, had not been achieved. The underperformance of these KRAs threatens the achievement of Program objectives regarding: (i) improved borrowing and cash management practices to enable reliable funding for service delivery and investment projects; and (ii) the consolidation of staff data for better HR management. These KRAs are among the cornerstones of the PFMRS and play a key role in the achievement of Program outcomes regarding improved credibility of the national budget and efficient management of the wage bill. 7. Some DLIs have not been achieved within the timeline anticipated (Table 1.) These DLIs primarily pertain to initiatives involving the development and introduction of Information Technology (IT) systems underpinning the operationalization of the related PFM business process improvements. DLI 1c was not achieved by the planned date due to delays encountered in launching the procurement process for enhancing the PIM system. Additionally, while at Program inception it was anticipated that the enhancements envisioned for the e-ProMIS platform would effectively operationalize the PIM guidelines and streamline the PIM process, further analysis during Program implementation revealed that the existing e-ProMIS IT platform would not be able to accommodate the functional requirements Page 8 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) expected from a full-fledged Public Investment Management Information System (PIMIS). As a result, the National Treasury (NT) deemed it more appropriate to invest in developing a new PIMIS and prepared the functional and technical specifications for it in preparation for the procurement of a vendor to develop the system. This new trajectory underpins the proposed way forward regarding this KRA. 8. The conceptualization and inception of automation initiatives underpinning the desired improvements in public procurement, and HR management have faced similar challenges. The consultations, review, and approval process for the E-procurement Plan and Roadmap took longer than anticipated during the planning stage, impacting the achievement of DLIs that depended on the completion of this action (i.e. DLR 3b and DLR 3c.) Progress toward the achievement of DLR 4b has also been limited due to the delays in the procurement process for both the development of the GHRIS and the hardware for the data warehouse to consolidate and host HR data, on which the achievement of this DLR depended. Lastly, DLI 5.3 was only partially achieved because of outstanding challenges regarding the reconciliation of the annual financial statements of MDAs with data in the IFMIS. The proposed amendments to the DLIs under these KRAs have been formulated in the context of the above-mentioned challenges. 9. Registering improvements in revenue collection has been a further challenge due to persistent institutional challenges regarding revenue forecasting, as well as the fiscal uncertainty the COVID-19 crisis precipitated. DLR 2.2a has not been achieved in three consecutive years due to significant differences between actual revenue collection and the budgeted revenue. The growing and persistent divergences between actual revenue collection and the actual budget can be attributed to multiple factors. These factors include inefficiencies in the institutional arrangements for budget formulation whereby the legislature can significantly alter the proposed revenue mobilization measures. More importantly, the economic disruption created by the COVID-19 pandemic has ushered in an extraordinary period of fiscal uncertainty, making it even more difficult to institutionalize the intended improvements in revenue forecasting within the remainder of the Program. The importance of reliable revenue forecasts cannot be overstated, especially in times of economic uncertainty. Reliable revenue forecasting underpins the fiscal consolidation efforts of the Government, which remains a cornerstone of the ongoing Development Policy Financing (DPF) series, as well as the International Monetary Fund (IMF) Country Program. However, the likelihood of achieving this DLI within the remaining lifecycle of the Program is extremely low, and this DLI is therefore proposed for removal. 10. During the MTR, the NT also proposed the incorporation of two new thematic areas into GESDeK. These are: (i) introducing a Management Information System (MIS) for State Corporations (SCs); and (ii) expanding the number of government services offered on the eCitizen portal. Discrepancies between budget allocations and outcomes, as well as manual processes for budget management and reporting, are among the challenges affecting the governance, management, and oversight of SCs, which provide some of the key services affecting the quality of life for citizens. Improving the governance of SCs is an increasingly pertinent topic in the context of Kenya’s aspirations to become an upper middle-income country rooted in private sector-led growth and provision of quality public services to citizens and businesses. The Government has made further strides in strengthening public service delivery through the introduction of the eCitizen portal, which enables citizens and businesses to perform many widely used, fee-based transactions online, which has demonstrably reduced fraudulent invoicing for government transactions, and led to revenue growth for the government. The incorporation of these two new Result Areas (RAs) into the Program will strengthen the Program’s focus on enabling service delivery and facilitating accountability and transparency in managing resources associated with public services. 11. The World Bank and NT continued consultations regarding Program status following the MTR. In the context of the annual portfolio review discussions, the teams explored the possibility of incorporating an Investment Project Financing (IPF) component into GESDeK to implement the IT-related initiatives supporting critical business processes Page 9 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) reengineering, technical quality assurance, and technological improvements anticipated under the program, as well as to support additional areas of system improvements that are high priority under the PFM reform agenda, such as modernizing pension management, full rollout of e-GP, reengineering and digitization of internal administrative workflows and document management in NT, and mobilization of international long-term expertise to advise regarding relevant digital government-to-government (“G2G”) core business services transformation. A Management Letter outlining this proposal was remitted to the Government on April 22, 2021 and a response from NT was received on April 28, 2021. In its response, the Government requested to initiate restructuring without any changes to the financing instrument and proposed to extend the closing date of the program by 12 months. These developments were summarized in an Implementation Status and Results (ISR) report filed in May 2021. 12. The World Bank formally initiated the restructuring process in May 2021 upon receiving the official restructuring request from the Government. The teams launched a series of technical consultations to revisit the scope of the modifications discussed during the MTR as necessary and adjusted the targets considering the progress achieved since the MTR. It was concluded that the requirements of OP/BP 10.00 regarding extension of closing dates have been met. Specifically: (i) the Program objectives remain achievable; (ii) the performance of the Borrower remains satisfactory; and (iii) the Borrower and the World Bank agree on actions that will be undertaken by the Borrower to complete the Program. There are no outstanding audits, or Interim Financial Reports (IFRs) for the Credit. III. DESCRIPTION OF PROPOSED CHANGES 13. This restructuring proposal requests: (i) modifications to selected DLIs, DLRs, and associated targets; (ii) addition of two new RAs and associated DLIs and DLRs; (iii) reallocation of disbursement amounts; and (iv) a no-cost extension of the Program closing date by 12 months to December 31, 2023. The PDO remains the same and continues to be in alignment with Government strategic policy documents including the PFMRS, as well as the World Bank Group (WBG) Twin Goals, the WBG Country Partnership Strategy (CPS) for Kenya, and the WBG Approach to COVID-19 Crisis Response and Recovery. The requested extension of the Program closing date would bring the overall Program duration to six years, which is not an unusual lifecycle for programs centered on the institutionalization of public policy reforms. Table 2 provides proposed modifications to the Program and the respective allocation and how they compare to the original design of the Program. Some of these modifications are essentially editorial in nature and will not be mentioned here in exhaustive detail. What follows are details regarding the substantive changes that are being proposed for each RA under this restructuring proposal. Table 2: proposed modifications to the Program and the respective allocations Result Area DLI Original Disbursed Proposed Allocation (US$) Allocation (US$) (US$) Prioritized Public Prioritized Public Investments 25,000,000 5,000,000 20,000,000 Investments Reliable Funding for Service Reliable Funding for Service 37,000,000 5,500,000 18,500,000 Delivery and Public Delivery and Investment Projects Investment Reliability of Domestic Financing Efficient and Transparent Efficient and Transparent 21,000,000 0 13,000,000 Procurement Procurement Consolidated Staff Data Consolidated Staff Data 20,000,000 2,000,000 12,000,000 Page 10 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Result Area DLI Original Disbursed Proposed Allocation (US$) Allocation (US$) (US$) Timely and Quality Timely, Quality Assured, 27,000,000 7,000,000 27,500,000 Financial Statements and Financial Statements Audits Timely, Efficient, Quality Audits Strengthened Fiduciary Transparent Institutions 20,000,000 2,000,000 27,000,000 Assurance and Strengthened Fiduciary Transparency Assurance and Risk Management Transparency and Oversight Transparency and Oversight of 0 0 17,000,000 of State Corporations (New) State Corporations (New) Strengthened Service Strengthened Service Delivery 0 0 15,000,000 Delivery (New) (New) TOTAL 150,000,000 21,500,000 150,000,000 14. Result Area 1: Prioritized Public Investments. The proposed modifications under this RA affects DLI 1 (Prioritized Public Investments). These modifications include: (a) deleting references to the “PIM Manual” as the basis on which the PIM process is to be streamlined and replacing these references with “PIM Guidelines.” These guidelines have been disseminated widely across MDAs, and constitute the foundation for the draft PIM Regulations, whose approval is a Prior Action under the ongoing DPF series; (b) introducing actions regarding the completion of the inventory of public investment projects to inform the “rationalization” of the public investment project portfolio. Addressing the challenges regarding nonperforming and stalled projects in the development budget is an emerging Government priority under the renewed focus on fiscal consolidation in the wake of the COVID-19 crisis, a key recommendation coming out of the recently concluded Public Expenditure Review exercise, as well as, a priority action under the DPF series and the IMF Country Program; and (c) deleting references to e-ProMIS as the platform for the automation of the PIM process (due to reasons explained in the section I above). Table 3 presents new DLRs and associated disbursement allocations that are proposed for inclusion in the Program to operationalize these modifications. Table 3: New DLRs and Associated Disbursement Allocations December 2021 December 2022 DLR 1.5(a); At least 10 projects that have been DLR 1.6(a); At least 30 projects that have been approved for inclusion in the public investment project approved for inclusion in the public investment project pipeline comply with the project concept note (PCN), pipeline comply with the PCN, pre-feasibility and pre-feasibility and feasibility provisions outlined in the feasibility provisions outlined in the PIM Guidelines PIM Guidelines (US$2 million). (US$2 million). DLR 1.5(b); Automation of the PCN, pre-feasibility and DLR 1.6(b); Automation of budgeting, Monitoring and feasibility phases of the public investment project cycle Evaluation (M&E), and reporting phases of the public enabled through the completion of the pre-investment investment project cycle enabled through the module in the PIMIS (US$1 million). completion of these modules in PIMIS (US$2 million). DLR 1.5(c); PIM Manuals completed for (i) economic DLR 1.6(c); Sector-specific PIM methodologies appraisal of projects, (ii) national parameters and developed for infrastructure, health, and education commodity-specific conversion factors to be used in sectors at the national level (US$1 million). project preparation, and (ii) monitoring and evaluation of projects (US$1 million). Page 11 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLR 1.5(d); Project stock-take exercise completed for DLR 1.6(d); Project stock-take exercise completed for all ongoing and new projects and project inventory up all ongoing and new projects and project inventory up to date in Hyperion for at least10 service delivery MDAs to date in Hyperion for at least 20 service delivery in the infrastructure, health, and education sectors, MDAs, with information regarding the status of the with information regarding the status of the projects projects and multiyear commitments. (US$3 million). and multi-year commitments (US$3 million). 15. Result Area 2: Reliable Funding for Service Delivery and Public Investment. The proposed modifications under this RA affect DLI 2.1 (Reliable Funding for Service Delivery and Investment Projects), DLI 2.2 (Improved Revenue Projections), and DLI 2.3 (Reliability of Domestic Financing). DLI 2.2 and DLI 2.3 are proposed for deletion in their entirety due to the challenges explained regarding persistent difficulties in revenue forecasting in an uncertain fiscal environment. The proposed modifications to DLI 2.1 intend to align the next phase of actions to improve cash management practices anticipated under this RA with the provisions of the new Cash Management Framework that was developed by the NT as part of the PFMRS and with support from the Program. The modifications build on the significant progress achieved in the technical quality and regularity of the cash plans prepared by the Cash Management Technical Committee, which has been facilitated by parallel improvements regarding the automation of the cash planning and management process and its interface with IFMIS. The proposed new DLRs under DLI 2.1 aim at leveraging the power of automation to consolidate the gains achieved and to institutionalize a more efficient process for cash planning and approval decisions within the NT. Table 4 presents the proposed new DLRs and the associated disbursement allocations: Table 4: Proposed New DLRs and the Associated Disbursement Allocations December 2021 December 2022 DLR 2.1a.5(a) Guidelines adopted by NT which require that revised MDA cash plans protect service delivery and infrastructure budget priorities (US$1.5 million). DLR 2.1a.5(b); The cash management system DLR 2.1a.6; Percentage of approvals for (i) annual and strengthened in Hyperion and IFMIS, with (i) MDA cash revised aggregate cash plans processed using allocations set using category limits from the annual Hyperion and (ii) receivers of revenue and exchequer aggregate including in-year cash plans; (ii) MDA cash releases processed using IFMIS (target: 100 percent plans preparation within cash allocations and for (i) and (ii).) (US$2 million). consolidated using Hyperion; (iii) exchequer register functionality prepared; (iv) requests within limits are processed within the expenditure category limits subject to unforeseen contingencies; and (v) exchequer reports and cash management reports generated. (US$4.5 million). DLR 2.1a.5(c); Automation of the approval process workflow for (i) annual and revised aggregate cash plans in Hyperion and (ii) receivers of revenue and exchequer releases in line with the cash management framework categories in IFMIS (US$5 million). 16. Result Area 3: Efficient and Transparent Procurement. The proposed modifications to DLI 3 (Efficient and Transparent Procurement) are to adjust the timeline for the intended number of MDAs using a full-fledged e-procurement system Page 12 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) in compliance with the PPADA, and following the Open Data Contracting Standards (OCDS). The modifications are intended to address the delays experienced in the formulation of the e-procurement roadmap and the procurement process for the development of the new e-GP platform as explained above. Table 5 presents the proposed new DLRs and the associated disbursement amounts. Table 5: Proposed New DLRs and the Associated Disbursement Allocations December 2021 December 2022 DLR3.5(a); Roadmap agreed for upgrading e- DLR3.6; At least 5 MDAs have piloted the e-GP System Government Procurement (e-GP) system including the modules on registration, procurement planning, and state procurement portal, aligned to requirements of contract management through invoicing the Public Procurement and Asset Disposal Act (PPADA) (US$5 million). and attendant regulations (US$4 million). DLR3.5(b); e-GP Project Implementation Unit established, developer/contractor in place, and System Requirement Specification (SRS) and System Design Document (SDD) approved (US$4 million). 17. Result Area 4: Consolidated Staff Data. The proposed modification to DLI 4 (Consolidated Staff Data) is to adjust the timeline for the intended number of MDAs whose payroll data have been uploaded to GHRIS. The modification addresses the delays experienced in the formulation of the roadmap for the development of GHRIS and the subsequent implementation of the roadmap as explained above. Table 6 presents the proposed new DLRs and the associated disbursement amounts. Table 6: Proposed New DLRs and the Associated Disbursement Amounts for KRA 4 December 2021 December 2022 DLR 4.5; Upgraded GHRIS is operational, including use DLR 4.6; Payroll data for 10 MDAs uploaded into GHRIS of UPN, HR data warehouse, and Payroll module (US$4 million). operational, as well as payroll data for teachers and one other MDA uploaded into GHRIS (US$6 million). Note: UPN = Unified Payroll Number. 18. Result Area 5: Timely and Quality Financial Statements and Audits. The efforts under this RA to enhance the timeliness, quality, and relevance of financial statements and audit reports have registered significant progress. The targets for DLI 5.1 (Timely, Quality Assured, Financial Statements), which envision a certain percentage of MDAs for which the NT has reviewed the quality of annual financial statements generated from IFMIS and has submitted to the Office of the Auditor General (OAG) within four months, are proposed for an increase from their current level of 30 percent to 40 percent for 2021, and 50 percent for 2022. The proposed modifications under this RA also intend to acknowledge the OAG’s swift and successful response to the COVID-19 pandemic by availing the Auditor General to perform a special audit of the COVID-19 funds spent by selected MDAs and all 47 counties. DLI 5.2 (Timely, Efficient, Quality Audit), which promoted a certain percentage of MDAs whose financial statement audits have been completed using an improved audit and quality assurance methodology within three months of receipt of these statements by the OAG, has been achieved and the funds associated with this DLI have been fully disbursed. The team proposes to introduce new DLRs under this DLI relating to the special audits that the OAG plans to undertake regarding the use of funds disbursed to MDAs for expenditures relating to programs to address the COVID-19 crisis. The proposed modifications also aim at slightly adjusting the number of months that the DLR expects to achieve between the receipt Page 13 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) of consolidated financial statements and their submission to Parliament (increasing it to seven months in 2021 and five months in 2022 from four months and three months, respectively) due to the delays experienced in the appointment of a new Auditor General during the year causing a backlog of pending audits. Table 7 presents the proposed new DLRs and the associated disbursement amounts. Table 7: Proposed New DLRs and the Associated Disbursement Amounts for KRA 5 December 2021 December 2022 DLR 5.1.5; The percentage of MDAs for which the NT DLR 5.1.6; The percentage of MDAs for which the NT has reviewed the quality of Annual Financial has reviewed the quality of Annual Financial Statements generated from IFMIS and has submitted to Statements generated from IFMIS and has submitted the OAG within 4 months (target: 40 percent.) to the OAG within 4 months (target: 50 percent.) (US$2 million). (US$3.5 million). DLR 5.2a.5; Special COVID expenditure audits DLR 5.2a.6; Percentage of MDAs whose financial completed (US$3 million). statement audits have been completed within 3 months after OAG receipt of final financial statements using an improved methodology, undergone quality assurance (target: 50 percent.) (US$5 million). DLR 5.2b.5; Months between receipt of final DLR 5.2b.6; Months between receipt of final consolidated financial reports by OAG and submission consolidated financial reports by OAG and submission of the audited financial statements to Parliament of the audited financial statements to Parliament (target: seven months.) (US$2 million). (target: five months.) (US$5 million). 19. Result Area 6: Strengthened Fiduciary Assurance and Transparency. This RA focuses on building transparent institutions by ensuring that stakeholders can access timely, reliable, and relevant expenditure performance information, and it continues to be highly relevant especially in the COVID-19 response and recovery context. Following consultations with the Budget Department regarding the status of current information systems and a review of what is possible within the timeframe of the Program, DLI 6.1 (Transparent Institutions), which looks at the number of MDAs for which information regarding program and project expenditure and transfers to service delivery units is publicly available, is proposed for revision to target information at program and sub-program levels for all MDAs, as well as, at the service delivery unit level for one MDA. DLI 6.2 (Strengthened Fiduciary Assurance and Risk Management), which targets annual and quarterly MDA Internal Audit Reports being prepared and undergoing quality assurance in line with enhanced procedures for audit quality assurance, risk management, and follow up, has shown significant progress with an increase in the original target from 20 to 25 MDAs. The proposed modifications under this RA overall aim at: (i) adjusting the timelines in DLRs under DLI 6.1 regarding the development of the citizen budget portal due to delays experienced in the development of the technical specifications for the platform; and (ii) institutionalizing the improvements achieved regarding the introduction of improved internal audit processes by investing in the continuation of activities under the DLRs supporting DLI 6.2 for two more budget cycles. Table 8 presents the proposed modifications to the DLRs and the associated disbursement amounts. Table 8: Proposed Modification to DLRs and the Associated Disbursement Amounts for KRA 6 December 2021 December 2022 DLR 6.1.5; MDAs can access the Analytical Repository DLR 6.1.6(a); UAT for the Budget Portal interface for multi-year budget data in searchable form by which provides information in a searchable form on program and sub-program through the budget module programs and sub-programs, and for at least 1 MDA, in IFMIS. (US$3 million). information on transfers to service delivery units. Page 14 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) (US$4 million). DLR 6.1.6(b); For all MDAs, information is publicly available and in searchable form by program and sub- program, and for at least 1 MDA, information available on transfers to service delivery units. (US$4 million). DLR 6.2.5; MDAs Internal Audit Reports have been DLR 6.2.6; MDAs Internal Audit Reports have been prepared and undergone quality assurance in line with prepared and undergone quality assurance in line with enhanced procedures for assurance, risk management enhanced procedures for assurance, risk management and audit follow up (target: 20 MDAs.) (US$7 million). and audit follow up (target: 25 MDAs.) (US$7 million). 20. (New) Result Area 7: Transparency and Oversight of State Corporations. Discrepancies between budget allocations and outcomes, as well as manual processes for budget management and reporting, are among the challenges affecting the governance, management, and oversight of State Corporations (SCs) in Kenya. Improving the governance of SCs is an increasingly pertinent topic in the context of the Kenya’s aspirations to become a middle-income country rooted in private sector-led growth. The proposed new DLI 7 (Transparency and Oversight of State Corporations) aims at developing and introducing across a Government Investment Management Information System (GIMIS) across SCs for the preparation and submission of data on corporate, budget, and statutory requirements of SCs. The entity responsible for the achievement of the RA will be the Government Investment and Public Enterprises (GIPE) Department, through which the NT exercises the oversight and ownership functions in SCs and other government investments. Table 9 presents the proposed new DLRs supporting this DLI, and the associated disbursement amounts. Table 9: Proposed new DLRs and the Associated Disbursement amounts for KRA 7 December 2021 December 2022 DLR 7.5(a); Approved user requirements for GIMIS. DLR 7.6; Investment module developed in GIMIS. (US$1 million). (US$6 million). DLR 7.5(b); Approved UAT for GIMIS. (US$4 million). DLR 7.5(c); Number of State Corporations submitting data on corporate, budget, and statutory requirements using a MIS (target: 30 agencies.) (US$6 million). 21. (New) Result Area 8: Strengthened Service Delivery. The Government Digital Payments (GDP) Unit within the NT ensures that citizens, non-citizens, and business entities have access to government services online and can make payments electronically and conveniently on the eCitizen platform, using their preferred method of payment, 24- hours a day and from wherever they may be in the world. Experience with the introduction of eCitizen since 2014 has demonstrated the power of this digital platform in enhancing revenue collection and reducing the opportunities for fraud in the provision of government services to citizens and businesses. GDP has an ambitious three-year plan to reengineer the eCitizen portal and onboard additional services onto the platform to make eCitizen the medium of choice for citizens and businesses to conduct their transactions with the Government. The proposed new DLI 8 (e- Citizen as an Integrated Platform for Government Service Delivery) aims at substantially increasing the number of public services onboarded on the eCitizen platform, which will be reengineered in line with citizen-centered design principles with Program support. The DLI will also support the formulation of a change management and communications strategy, which outlines a strategic direction for internal change management within public administration and for external communications and public relations with citizens regarding the scope, nature, introduction, and rollout of services offered on eCitizen. The overarching objective of the initiatives proposed for Page 15 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) inclusion in the Program is to enhance the uptake of eCitizen by the public sector and citizens. Table 10 presents the proposed new DLRs under this DLI and the associated disbursement amounts Table 10: proposed new DLRs and the associated disbursement amounts for KRA 4 December 2021 December 2022 DLR 8.5(a); Approved user requirements for re- DLR 8.6(a); UAT for re-engineered eCitizen completed engineered eCitizen (US$1 million). (US$1 million). DLR 8.5(b); Approved Change Management and DLR 8.6(b); 277 new services onboarded on eCitizen Communications Strategy for eCitizen. (US$12 million). (US$1 million). 22. The Results Framework has been updated accordingly to reflect the above-mentioned modifications. The Program Expenditure Framework also has been modified accordingly to reflect the anticipated changes in fixed expenditures due to the addition of two new implementing entities – GDP and GIPE. The Program Operations Manual (POM) has been amended to incorporate the modified Program Expenditure Framework and the revised Verification Protocols associated with the modified and newly introduced DLIs and DLRs, and the revised Results Framework. 23. The current risk rating for the Program is Substantial. This is consistent with the overall program risk rating at the time of approval, as well as the overall risk rating from the last ISR, which indicated that while risk dimensions regarding the political and governance environment, technical design of the program, institutional capacity for implementation and sustainability, fiduciary, and stakeholders are rated Substantial, risks to macroeconomic stability and sector strategies remain Moderate. The Government continues to demonstrate strong ownership and commitment towards the achievement of the PDO. The Public Financial Management Reform (PFMR) Secretariat provides strong leadership on advancing institutional reforms and strengthening institutional capacity, as well as coordination of Program implementation efforts across MDAs. The COVID-19 pandemic has affected the nature of the risks anticipated at Program inception primarily through causing bureaucratic delays in procurement processes and the mobilization of the consultancies and technical assistance required to achieve some of the DLIs. The pandemic also caused priorities to shift in some RAs, such as those regarding revenue forecasting and mobilization, where the NT had to resort to extraordinary fiscal measures, and external audit, where the OAG shifted its focus from performing systematic audits to conducting specialized audits of funds mobilized for COVID-19 response. 24. The Program has taken measures to mitigate the above-mentioned risks. Since the onset of the COVID-19 crisis the Program management teams both on the GoK and the World Bank side promoted and took measures to facilitate an agile response towards the automation of processes underpinning some of the traditionally more manual functions, such as audit and cash management. Going forward, the Program will continue to intensify its focus on the next generation modernization of public administration and PFM functions by exploring and emphasizing the importance of business process reengineering through improvements in the digitalization and integration of IT systems underpinning these functions. Regarding institutional coordination and Program management, a dedicated Program Coordinator was brought onboard by the PFMR Secretariat with technical assistance financing support from AFD, which significantly improved the extent of coordination between the different results teams and monitoring of results. The adoption of a more formal process to improve annual work planning across the PFMRS RAs has supported the mobilization of technical assistance support to strengthen the capacity of result teams to achieve DLIs. Owing to these interventions, in the current year (FY 2021/22) and for the first time since the inception of the Program, all result teams completed the work planning process for their respective RAs before the beginning of the new fiscal year so that the progress towards the achievement of the DLIs proceeds seamlessly following the approval of the FY2021/22 budget early July 2021. The systematization of the work planning process has also enabled the PFMR Secretariat to Page 16 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) anticipate the technical assistance needs and capacity gaps of result teams to achieve the DLIs and gradually reduce their dependence on external support for technical assistance to facilitate the achievement of DLIs. I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Reallocation between and/or Change in DLI ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Cancellations Proposed ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Other Change(s) ✔ II. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE Page 17 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IDA-61330 Effective 31-Dec-2022 31-Dec-2023 30-Jun-2024 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Year Current Proposed 2018 4,107,000.00 0.00 2019 9,882,150.00 0.00 2020 15,382,500.00 0.00 2021 25,566,300.00 62,000,000.00 2022 39,558,900.00 66,500,000.00 2023 48,739,200.00 0.00 2024 6,763,950.00 0.00 OPS_DETAILEDCHANGES_EA_TABLE . Page 18 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) To improve utilization and transparency of resource management in selected service delivery MDAs. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target PDO Indicator 1: Prioritized Public Investments Projects with capital allocation above KES.100m in complance 0.00 30.00 with procedures in PIM Guidelines (Number) Action: This indicator has been Revised PDO Indicator 2: Reliable Funding for Service Delivery and Investment Projects Cash management functionality strengthened through No Yes automation in IFMIS and Hyperion budget system (Yes/No) Action: This indicator has been Revised Page 19 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target b) Annual Exchequer releases to GoK capital budget allocations 90.70 95.00 as a % of the approved budget (Percentage) Action: This indicator has been Marked for Deletion PDO Indicator 3: Efficient and Transparent Procurement MDAs using the e-Procurement System in compliance with the PPAD Act, 2015, and attendant Regulations for the full fiscal year 0.00 5.00 and procurement data disclosed in SPP following OCDS (Number) Action: This indicator has been Revised PDO Indicator 4: Consolidated Staff Data Number of MDAs whose payroll data has been uploaded to 0.00 10.00 GHRIS and are up to date (Number) Action: This indicator has been Revised PDO Indicator 5: Timely and Quality Financial Statements and Audit (i) The percentage of service delivery MDAs the NT has reviewed the quality of Annual FS generated from IFMIS and has submitted 0.00 50.00 to the OAG within legal timeliness (3 months) (Percentage) Action: This indicator is New (ii) Percentage of MDAs, whose financial statement audits have been completed within 3 months after OAG receipt of final 0.00 50.00 financial statements using an improved methodology, undergone quality assurance (Percentage) Action: This indicator has been Revised Page 20 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target (iii) Months between receipt of final consolidated financial reports by OAG and submission of audited financial statements 10.00 5.00 to Parliament (Number) Action: This indicator has been Revised PDO Indicator 6a: Transparent Institutions Percentage of MDAs whose information is publicly available online in searchable form on a) sub-program expenditure, b) 0.00 100.00 project expenditure and c) transfers to at least one service delivery units (Percentage) Action: This indicator has been Revised PDO Indicator 6b: Strengthened Fiduciary Assurance and Risk Management MDA Internal Audit Reports have been prepared and undergone quality assurance in line with enhanced procedures for 0.00 25.00 assurance, risk management and audit follow-up (Number) Action: This indicator has been Revised PDO Indicator 7: Strengthened Transparency and Oversight (Action: This Objective is New) State Corporations (SCs) budgets and reports are linked to No Yes performance targets (Yes/No) Action: This indicator is New PDO Indicator 8: Citizen Integrated Platform (Action: This Objective is New) Number of services onboarded on re-engineered e-citizen Portal. e-Citizen provides a common and integrated platform for the 300.00 577.00 delivery of government services (Number) Page 21 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Prioritised Public Investments IRI 1.1: Dedicated unit established with staff deployed assigned No Yes performing NT PIM roles. (Yes/No) IRI 1.2: Approved PIM manual & user requirements which No Yes address key challenges in PIM (Yes/No) IRI 1.3: UAT complete for enhance e-ProMIS automating No Yes provision of PIM Manual (Yes/No) Action: This indicator has been Marked for Deletion IRI 1.4 Projects baseline stock taking completed and inventory up No Yes to date in Hyperion (Yes/No) Action: This indicator is New Reliable Funding for Service Delivery and Public Investments IRI 2.1: Guidelines adopted by NT which require that revised MDA cash plans protect service delivery and infrastructure No Yes budget priorities (Yes/No) Action: This indicator has been Revised Page 22 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target IRI 2.2: Annual domestic (tax plus non-tax) revenue collections as 91.87 94.00 a % of the annual budget (Percentage) Action: This indicator has been Marked for Deletion IRI 2.3: Ave. underperformance of quartely net domestic 70.00 25.00 borrowing as % revised in-year cash plans (Percentage) Action: This indicator has been Marked for Deletion IRI 2.4:Inyear borrowing plan consistent with delivering cash for No Yes MDAs based on CPs using new system (Yes/No) Action: This indicator has been Marked for Deletion IRI 2.5: The automated annual including in-year aggregate cash plans (with revenue projections and borrowing requirements) in No Yes line with approved cash management framework. (Yes/No) Action: This indicator is New IRI 2.6: projected in year MDA exchequer allocations, which are uploaded into the system and approved in line with the cash No Yes management framework. (Yes/No) Action: This indicator is New Efficient and Transparent Procurement IRI 3.1: UAT for upgraded e-procurement and State Procurement No Yes Portal (SPP) complete (Yes/No) Action: This indicator has been Revised Page 23 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target IRI 3.2: roadmap agreed for upgrading e-procurement system including SPP, aligned to requirements of PPADA and attendant No Yes regulations. (Yes/No) Rationale: Action: This indicator has been Revised IRI 3.3: e-GP Project Implementation Unit established, developer/contractor in place, and System Requirement No Yes Specification (SRS) and System Design Document (SDD) approved. (Yes/No) Action: This indicator is New Consolidated Staff Data IRI 4.1: GHRIS enhanced to handle consolidated HR data from No Yes MDAs and interfaces with IFMIS (Yes/No) Rationale: Action: This indicator has been Revised IRI 4.2 Upgraded GHRIS operational, including use of UPN, HR No Yes data warehouse and Payroll module operational (Yes/No) Action: This indicator is New Timely and Quality Financial Statements and Audit Page 24 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target IRI 5.1: The percentage of service delivery MDAs the National Treasury has reviewed the quality of Annual Financial Statements 10.00 50.00 generated from IFMIS and has submitted to the OAG within 4 months. (Percentage) Rationale: Action: This indicator has been Revised IRI 5.2: Approval of audit codes that classify risk clusters to No Yes enable efficient targeting of audit resource (Yes/No) Action: This indicator has been Revised IRI 5.3: Enhanced audit methodology and quality assurance No Yes framework in place (Yes/No) Action: This indicator has been Revised IRI 5.4: Special COVID related expenditure audits (Number) 0.00 47.00 Action: This indicator is New Strengthened Fiduciary Assurance and Transparency IRI 6.1: MDAs’ information publicly available online in searchable form on (a) program expenditure, (b) sub-program expenditures No Yes and (c) at least one MDA transfers to service delivery units (Yes/No) Action: This indicator has been Revised IRI 6.2: UAT for the Budget Portal interface which provides No Yes information in a searchable form on programs and sub- Page 25 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target programs, and for at least 1 MDA, information available on transfers to service deliver (Yes/No) Action: This indicator has been Revised IRI 6.3:Updated manuals and QA framework for internal audit in place to strengthen assurance and risk management are in place No Yes (Yes/No) Action: This indicator has been Revised IRI 6.4: Complete diagnostic study of internal audit (Yes/No) No Yes Action: This indicator has been Revised State Corporations Transparency and Oversight (Action: This Result Area is New) IRI 7.1: Approved User Acceptance Test (UAT) for the SCs MIS No Yes (Yes/No) Action: This indicator is New IRI 7.2. No. of State Corporations submitting required data using 0.00 30.00 the MIS (Number) Action: This indicator is New Strengthened Service Delivery (Action: This Result Area is New) IRI 8.1: Approved User Acceptance Testing (UAT) for re- No Yes engineered e-citizen (Yes/No) Action: This indicator is New IRI 8.2 Publicity and change management strategy developed No Yes (Yes/No) Page 26 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Action: This indicator is New IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01024695 ACTION DLI 1 DLR 1a: PIM Unit established in NT Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. Page 27 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01024751 ACTION DLI 1 DLI 1: Prioritized Public Investments Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 20,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 5,000,000.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 7,000,000.00 By end of FY 2022/2023 30.00 8,000,000.00 DLI IN01024716 ACTION DLR 1b: Approved PIM Manual & user requirements for e-ProMIS which addresses key challenges in PIM including DLI 2 prioritization, costing and transparency Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No Page 28 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. DLI IN01024978 ACTION DLI 2 DLI 2.1: Reliable funding for Service Delivery and Investment Projects Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 16,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 1,500,000.00 By end FY 2018/19 2,000,000.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 Page 29 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2021/22 11,000,000.00 By end of FY 2022/2023 Yes 2,000,000.00 DLI IN01024724 ACTION DLI 3 DLR 1d: Projects with capital allocations above KES 100 million which are in compliance with procedures in the PIM manual. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 17,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 30.00 17,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. Page 30 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01025352 ACTION DLI 4 DLI 2.3: Reliability of domestic financing Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 2,000,000.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 0.00 By end of FY 2022/2023 Yes 0.00 DLI IN01024725 ACTION DLI 4 DLR 2.1a: UAT of cash management and exchequer systems Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No Page 31 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. DLI IN01025402 ACTION DLI 5 DLI 3: Efficient and Transparent Procurement Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 13,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 Page 32 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2021/22 8,000,000.00 By end of FY 2022/2023 5.00 5,000,000.00 DLI IN01024726 ACTION DLR2.1b Guidelines adopted by NT which require that revised MDA cash plans protect service delivery and infrastructure DLI 5 budget priorities. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. Page 33 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01025279 ACTION DLI 6 DLI 4: Consolidated Staff Data Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 12,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 2,000,000.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 6,000,000.00 By end of FY 2022/2023 10.00 4,000,000.00 DLI IN01024727 ACTION DLR 2.1c: Average under-release of priority operational service delivery budget allocations expressed as a percentage of DLI 6 revised in year cash plans on a quarterly then monthly basis. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Percentage 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 8.00 Page 34 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2017/18 0.00 By end FY 2018/19 2,000,000.00 By end FY 2019/20 2,000,000.00 By end FY 2020/21 2,000,000.00 By end FY 2021/22 8.00 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. DLI IN01025622 ACTION DLI 7 DLI 5.1: Timely, Quality Assured, Financial Statements Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Percentage 8,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 1,000,000.00 By end FY 2018/19 2,000,000.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 Page 35 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2021/22 10.00 2,000,000.00 By end of FY 2022/2023 50.00 3,500,000.00 DLI IN01024728 ACTION DLI 7 DLR2.1d: Annual exchequer releases to GoK major capital budget allocations as a % of the approved budget. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Percentage 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 90.70 By end FY 2017/18 0.00 By end FY 2018/19 2,000,000.00 By end FY 2019/20 2,000,000.00 By end FY 2020/21 2,000,000.00 By end FY 2021/22 95.00 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. Page 36 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01025588 ACTION DLI 8 DLI 5.2 Timely, Efficient, Quality Audits Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 19,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 1,000,000.00 By end FY 2018/19 1,000,000.00 By end FY 2019/20 2,000,000.00 By end FY 2020/21 0.00 By end FY 2021/22 5,000,000.00 By end of FY 2022/2023 50.00 10,000,000.00 DLI IN01024729 ACTION DLI 8 DLR 2.2: Annual domestic (tax plus non-tax) revenue collections as a percentage of the annual budget Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 91.87 Page 37 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2017/18 0.00 By end FY 2018/19 2,000,000.00 By end FY 2019/20 2,000,000.00 By end FY 2020/21 2,000,000.00 By end FY 2021/22 94.00 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. DLI IN01025623 ACTION DLI 9 DLI 6.1: Transparent Institutions Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 11,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 Page 38 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2021/22 3,000,000.00 By end of FY 2022/2023 8,000,000.00 DLI IN01024730 ACTION DLR 2.3a: In year borrowing plan consistent with delivering cash for MDAs based on a compilation of the cash plans using DLI 9 the new system Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Revised. See below. Page 39 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01025676 ACTION DLI 10 DLI 6.2: Strengthened Fiduciary Assurance and Risk Management Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 16,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 1,000,000.00 By end FY 2018/19 1,000,000.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 7,000,000.00 By end of FY 2022/2023 25.00 7,000,000.00 DLI IN01024721 ACTION DLI 10 DLR 1c: UAT complete for enhanced e-ProMIS and IFMIS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No Page 40 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024731 ACTION DLR 2.3b: Average under performance of quarterly net domestic borrowing as a percentage of what is planned in revised in DLI 11 year cash plans Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 2,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 70.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 Page 41 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2020/21 0.00 By end FY 2021/22 25.00 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024732 ACTION DLR3a: roadmap agreed for upgrading e-procurement system including SPP, aligned to requirements of PPADA and DLI 12 attendant regulations. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,000,000.00 By end of FY 2022/2023 0.00 Page 42 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Action: This DLI has been Marked for Deletion DLI IN01024733 ACTION DLI 13 DLR 3b: UAT for upgraded e-procurement system and state procurement portal complete Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 4,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 4,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion Page 43 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01024734 ACTION DLR3c: Number of MDAs using the e-procurement system in compliance with the PPADA and attendant regulations for the DLI 14 full fiscal year and procurement data disclosed in SPP following OCDS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 15,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 20.00 15,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024735 ACTION DLI 15 DLR4a: Plan adopted for GHRIS to be enhanced to handle consolidated HR data from MDAs which interfaces with IFMIS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 2,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Page 44 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 2,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024736 ACTION DLI 16 DLR4b: Number of MDAs whose payroll data has been uploaded to GHRIS and are up to date. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 18,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 Page 45 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2020/21 0.00 By end FY 2021/22 20.00 18,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024737 ACTION DLR 5.1: The percentage (%) of MDAs the National Treasury has reviewed the quality of Annual Financial Statements DLI 17 generated from IFMIS and has submitted to the OAG within 4 months. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 10.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 50.00 8,000,000.00 By end of FY 2022/2023 0.00 Page 46 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Action: This DLI has been Marked for Deletion DLI IN01024738 ACTION DLI 18 DLR 5.2a: Approval of audit codes that classify risk clusters to enable efficient targeting of audit resources Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion Page 47 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01024739 ACTION DLI 19 DLR 5.2b: Enhanced Audit methodology and Quality Assurance framework approved Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024740 ACTION DLR5.2c: % of MDAs whose financial statement audits have been completed within 3 months after OAG receipt of final DLI 20 financial statements using an improved methodology, undergone quality assurance. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Page 48 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 50.00 8,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024741 ACTION DLR 5.2d: Months between receipt of consolidated and quality assured financial statements by OAG and submission of the DLI 21 audited financial statements to Parliament Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 8,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 10.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 Page 49 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 3.00 8,500,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024742 ACTION 6.1a MDAs can access multi-year itemized and facility level budget and outturn data for all MDAs in searchable form DLI 22 through the budget module in the IFMIS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,000,000.00 Page 50 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024743 ACTION 6.1b UAT of online public interface which provides information in a searchable form on programs and projects and DLI 23 transfers to service delivery unit Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 800,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 800,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion Page 51 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01024744 ACTION DLR 6.1c: Number of MDAs where information is publicly available online in searchable form on a) program expenditure DLI 24 and performance, b) project expenditure and performance and c) transfers to service Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 10,200,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 3.00 10,200,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024745 ACTION DLI 25 6.2a: Complete Diagnostic Study of Internal Audit Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Page 52 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024746 ACTION DLI 26 6.2b: Updated manuals and QA framework for internal audit to strengthen assurance and risk management are in place Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 1,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 Page 53 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) By end FY 2020/21 0.00 By end FY 2021/22 Yes 1,000,000.00 By end of FY 2022/2023 0.00 Action: This DLI has been Marked for Deletion DLI IN01024747 ACTION 6.2c No. MDAs where Annual & quarterly Internal Audit Reports have been prepared and undergone QA in line with DLI 27 enhanced procedures for assurance, risk management and audit follow up. Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 6,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 20.00 6,000,000.00 By end of FY 2022/2023 0.00 Page 54 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Action: This DLI has been Marked for Deletion DLI IN01027398 ACTION DLI 28 DLI 7: Transparency and Oversight of State Corporations Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 17,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 11,000,000.00 By end of FY 2022/2023 30.00 6,000,000.00 Action: This DLI is New Page 55 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) DLI IN01027406 ACTION DLI 29 DLI 8: Strengthened Service Delivery Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 15,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 300.00 By end FY 2017/18 0.00 By end FY 2018/19 0.00 By end FY 2019/20 0.00 By end FY 2020/21 0.00 By end FY 2021/22 2,000,000.00 By end of FY 2022/2023 577.00 13,000,000.00 Action: This DLI is New Page 56 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement Annual budget provisions under the PFMRS & respective implementing entities are matched to the annual estimated costs for the planned program activities to pre- finance inputs contributing to the achievement of the Disbursements Linked Results Budget Provisions Annually by (DLRs). Fiduciary Systems PFMR, CFO NT, Recurrent Yearly June 30 Timely release of exchequer funds commensurate with requests (as reflected in implementing agencies annual work plans and cash plans) from the implementing agencies to pre- finance inputs to achieve the DLRs. Fiduciary Systems PFMR Recurrent Quarterly Exchequer Releases Monthly Design specific reports in line with the expenditure framework to facilitate generation of program Design the reports in IFMIS expenditures from ASD, WB, OAG, October 31, 2017. Budget IFMIS. MoPSYG, NT, execution reports every 12 Technical IFMIS Recurrent Quarterly months Page 57 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) Prepare institutional annual financial statements for the three implementing agencies with appropriate disclosure notes outlining the program expenditures in line with the agreed NT (PFMR & expenditure PSASB), Annually not later than framework Technical MoPSYGA & OAG Recurrent Yearly September 30, 2017 The auditor for the OAG has been Appointment of the Auditor for appointed. Technical NT Recurrent Semi-Annually the OAG Implementing Agencies Establish and maintain: (i) PFM Standing Committee; (ii) Audit Committees; (iii) Internal Risk Management Framework including F&C risks; (iv) Risk Registers and Internal Control Framework in line with the PFMAct Continuously monitored every 6 2012 and PFM Reg Technical IAD, MOPGA, NT Recurrent Semi-Annually months Implementing Agencies - compliance with the applicable business standards as per the Regulations Technical PPD, AG Due Date 31-Jan-2018 Continuous Implementing Agencies establish a filing and records management system in accordance with the provisions of Technical PPRA Recurrent Yearly Continuous Page 58 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) the PPAD Act 2015 and attendant Regulations PPRA shares on a quarterly basis with Implementing Departments the list of firms on the WB, UN, EU and French Financial Sanctions Lists. Technical WB, PPRA Due Date 30-Jun-2020 Continuous Implementation of e-procurement in the three implementing agencies as part of the first phase. Technical PPRA Recurrent Continuous Continuous Establishment of complaints and reporting system at the PFMR Secretariat Technical PFMR, WB Recurrent Continuous Within 6 months of effectiveness Implementing agencies publish annual performance against the “resolution of public complaints” and “corruption prevention indicators” under the Performance Contacting PFMR, NT, system. Technical MoPGA and OAG Recurrent Yearly Resolution of Public Complaints •Establish and maintain risk register for the program •Reporting on recommendations made to mitigate against risks identified in the Risk register updated based on risk register actions completed and emerging Technical PFMR Due Date 31-Dec-2018 MDA risks as they emerge Managing and PFM Reform Implementing the requirements mitigating impacts Technical Secretariat Recurrent Yearly of the 1999 Environmental Page 59 of 57 The World Bank Program to Strengthen Governance for Enabling Service Delivery and Public Investment in Kenya (GESDeK) (P161387) associated with e- Management and Coordination waste Act (EMCA) (as amended in 2015), Waste Management Regulations, E-waste Management Guidelines and Draft E-Waste regulations . Page 60 of 57