Big Four Agenda Overview and Challenges

1. Big Four Agenda Overview and Challenges • Cabinet Presentation Abridged briefing document February 2019

2. Background to the Big Four Agenda • At the 54thJamhuri Day celebrations on the 12th of December 2017, His Excellency the President announced that his final term in office will focus its time and resources on a targeted transformative agenda based on four socio-economic pillars of: • Increase manufacturing share of GDP from 8.4% to 15% • Ensure 100% Food and Nutrition Security • Provide 500,000 Affordable Houses to the low income segment • Provide 100% Universal Health Coverage This is the Big Four Agenda • The Big Four Agenda is borne out a lengthy and productive national conversation between His Excellency the President and the people of Kenya. • It seeks to address the most pressing concerns facing Kenyans whilst creating the best environment for achieving accelerated socio-economic transformation, increased job creation and improved quality of life • Whilst Kenya has achieved significant social and economic progress over the past five years and throughout the initial stages of the Vision 2030 implementation process, the Government remains aware that additional progress is still required to further boost the well being of Kenyans and to achieve the desired levels of sustainable and shared economic growth, employment and wealth creation • Accordingly, the Big Four Agenda, is tied closely to the Third Medium Term Plan for the Vision 2030 and it is expected to run from 2018 to 2022

3. The Big Four outcomes and aspirations (as discussed with the Ministries)

4. The Big Four Agenda: Four priorities focused on one outcome Support value addition and raise Manufacturing sector’s share of GDP from 8.4% to 15% by 2022. This will accelerate economic growth, create jobs and reduce poverty Provide five hundred thousand (500,000) Affordable New Homes to Kenyans by 2022, and thereby improve the living conditions for low income Kenyans • Manufacturing • Affordable • Homes • Empowering the Nation Focus on initiatives that guarantee 100% Food and Nutrition Security to all Kenyans by 2022through enhanced value chain productivity and food supply, reduction of post harvest losses and food prices to ensure consumer affordability and support value addition Provide100% Universal Heath Coverage for essential health services by 2022, thereby guaranteeing quality and affordable healthcare to all Kenyans, particularly the most vulnerable in the society • Food and Nutrition • Security • Universal • Health Coverage

5. Big Four Agenda: Overview of Pillars Outcome and Aspirations (1/2) Support value addition and raise Manufacturing sector’s share of GDP from 8.4% to 15% by 2022 Focus on initiatives that guarantee 100% Food and Nutrition Security to all Kenyans by 2022 Raise manufacturing sector CONTRIBUTION TO GDP from 8.4% to15% 27% reduction in MALNUTRITIONamong CHILDREN UNDER 5 YEARS of age 47% reduction in the COST OF FOOD as a % of income 5Xincrease in FDI INFLOWS from US$672m to US$3.8b 50%reduction in the number of FOOD INSECUREKenyans AchieveTop 50 rank in the World Bank’s EASE OF DOING BUSINESS global index 34%increase in the AVERAGE DAILY INCOME of farmers 48% increase in agriculture sector CONTRIBUTION TO GDP Create 1,000,000NEW MANUFACTURING JOBS Create 1,000AGRO-PROCESSING SMEs& 600,000NEW JOBS

6. Big Four Agenda: Overview of Pillars Outcome and Aspirations (2/2) Provide100% Universal Heath Coverage for essential health services by 2022 Provide Five hundred thousand (500,000) Affordable New Homes to Kenyans by 2022 500,000AFFORDABLE HOMES across the 47 Counties 100% cost subsidy on ESSENTIAL HEALTH SERVICES1 50% reduction in COST OF HOME OWNERSHIP 54% reduction in MEDICAL OUT OF POCKET EXPENSES as percentage of household expenditure2 30%reduction in CONSTRUCTION COSTS 60% reduction in the LOW INCOME HOUSING GAP 1: Essential Health Services includes: Emergency Services, Reproductive and Neonatal Maternal, Child and Adolescent Services; Major Infectious Diseases (Malaria, HIV/AIDS and TB); Non-Communicable Diseases (Diabetes, Hypertension, Cancer etc.); Medical & Surgical Services; Mental Health Services; and Community Health Services 2: Out of every KSh1,000 spent on health services, an average of KSh260 is spent as out of pocket expenses. 300,000NEW JOBSin the construction sector 100%increase in the construction sector CONTRIBUTION TO GDP

7. Overview the Big Four Enablers

8. The Big Four Agenda Enablers: ‘Whole-of-Government’ approach Complete all major infrastructure projects ‘Invest in security to support a 24-hour economy • Infrastructure • Vocational Education • Security Equip our youths with vocational skills Improve governance to eliminate corruption & improve accountability • Macro-economic stability • Power • Governance Ensure competitive cost of energy Leverage technology & innovation to improve government services • Technology & • Innovation

9. Big Four implementation: What has worked well? • UHC implementation model approved and pilot launched in four counties UHC Pilot launched in Kisumu, Machakos, Isiolo and Nyeri Counties. • Encouraging UHC Pilot results. Early UHC pilot results indicate a substantial increase in essential health services utilisation and access to essential medicines. • Strong UHC engagement with stakeholders. Inter-governmental engagement and supervisory bodies established and operational. • Development Framework Guidelines approved by Cabinet. Special Procurement Process (SPP) approved by National Treasury and Housing Fund regulations finalized with concurrence of National Treasury and Attorney-General. • Affordable Housing MoUs signed with 24 County Governments. • Housing master plan finalized i.e. demand survey completed, financing and funding model (incl. Housing Fund) completed and inputs being integrated in the delivery framework. • Household Irrigation Water Storage Project launched and on-track with 2,370 water pans completed with an estimated 1m cubic meters of water harvested. • Sanitary & Phytosanitary (SPS) MOU signed between Kenya and China, paving way for market access for Kenyan agricultural produce into the Chinese market. • Fruit, Nuts and other agricultural ‘trees’ seedlings project on track with over 4 million assorted seedlings ready for distribution in the planting season.

10. Big Four implementation: What can be improved? • Disconnect between aspirations/outcomes and implementation initiatives e.g. some plans are direct translations of the Ministry’s regular work plans as opposed to focusing on priority initiatives, required to support the Big Four aspirations. • Delays in passing supporting laws and regulations e.g. most laws need to go through a time consuming structured process e.g. public consultations etc. • Constrained implementation timelines e.g. we have less than 41 months to deliver on the big four initiatives. • Policy misalignment e.g. imposing taxes on steel and wood products is counter productive to boosting manufacturing output. • Constantly changing work plans and targets e.g. continuous revisions of implementation plans and targets has had an adverse impact on finalising the plans. • Silo approach e.g. critical inputs from stakeholders including enabler ministries, agencies and the Counties were not captured in some implementation plans. • Resource constraints e.g. most enablers ministries did not capture resource required to support the Big Four pillars initiatives. • Excessive focus on procurement driven initiatives resulting in a shift in focus from the traditional policy design role of Ministries to non-core procurement activities e.g. direct procurement of agricultural inputs by the ministries etc.