Newsflash In this issue, we feature the 9 Advocacy Grants approved by the Board in May.

Business Advocacy Fund BAF supports business member organisations (BMOs) with funding and capacity building so that they can engage more effectively in private public dialogue and to advocate an improved business environment in Kenya. In this issue

31 May 2012

Advocacy Grants Approved Nine advocacy grants have been approved by the Board as follows:
Kenya Livestock Marketing Council (KLMC) : Impact assessment of PPP Agreements

Advocacy Grants

Kenya Livestock Marketing Council Kenya Medical Womens Association Kenya Security Industry Association East African Tea Traders Association Kenya National Chamber of Commerce & Industry - Kitale Branch

In 2010, KLMC engaged various County Councils in a process of developing partnership agreements that would lead to better management of the livestock markets/sale yards across the country. KLMC managed to implement Public Private Partnership Agreements (PPPAs) in 37 markets across 12 counties namely: Turkana, West Pokot, Baringo, Narok, Samburu, Isiolo, Marsabit, Moyale, Tana River, Garissa, Wajir and Ijara. KLMC would like to undertake an impact assessment of the PPPAs on the management of livestock markets implemented in 37 markets across 12 local authorities. The assessment will cover a sample of about 18 markets across 7 counties. After the completion of the study, KLMC will organise and facilitate a national workshop to share the draft impact assessment report with representatives from the local authorities, LMAs, ministry of local government, trade, livestock development and NGOs supporting the comanagement model. KLMC will then agree on the approach to lobby for the change of by-laws to suit this PPPA arrangement.
Kenya Security Industry Association (KSIA) : Revision of Private Security Industry Regulation Bill

Kenya National

Chamber of Commerce & Industry -Kisumu Branch

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In the recent past, there have been efforts by KSIA and other stakeholders in the private security industry in partnership with the government to develop an appropriate regulatory framework for the private security industry in Kenya. These efforts led to the Private Security Industry Regulation Bill 2004 being drafted. This Draft Bill was however found to have flaws which were later amended in consultations with key stakeholders, primarily the private security providers and the Kenya Police, leading to the Private Security Industry Regulation Bill 2009. KSIAs advocacy strategy is to engage and lobby all the relevant policy makers to ensure the Private Security Industry Bill is enacted by Parliament. Specifically, KSIA proposes to: Approach key industry stakeholders through the KEPSAs Security Sector Board so as the Private Security Industry Regulation Bill is included on the PMs RT agenda. Lobby and engage the PS Ministry of Internal Security and The Police Reforms Implementation Committee (PRIC) for the AGs chambers to speed up the drafting of the Bill. KSIA will then also lobby the Minister for Internal Security to have him engage the Vice President and the

Speaker to list the Bill on Parliaments order of business. Engage the Parliamentary Committee on Security, through breakfast meetings and lunches to boost their understanding; generate their support and encourage their participation on the Bill when it goes to Parliament.
Kenya Medical Womens Association (KMWA) : Development of Equal opportunities Act

In 2009, BAF supported KMWA to carry out a survey to collect evidence on the nature and magnitude of gender discrimination, and the desired changes. KMWA (in conjunction with a network of other women based BMOs) collected evidence on the nature and magnitude of the problem by holding focus group discussions to gather evidence of, and discuss the actual experiences of women in the workplace. The introduction and implementation of an Equal Opportunities Act will promote awareness and the resultant policies will reduce discrimination against women and other disadvantaged persons. Equal opportunities in the workplace will also maximise the use of the countrys talent. KMWA plans to summarise the research report and its policy position into a brief (2 pages) policy position paper (PPP) clearly outlining its position and policy proposals. KMWA will partner with 14 other women BMOs to build a combined force to advocate their PPP to the government with the aim of influencing the development of a suitable Equal Opportunities Act. On the onset, KMWA will seek to create a working partnership/coalition with the Ministry of Gender. During the process, KMWA will also reach-out for the support of the Kenya Women Parliamentarians (KEWOPA) and the Parliamentary Select Committee (PSC) on Equal Opportunities
East African Tea Traders Association (EATTA): Power Wheeling

The Greening the Tea Industry in East Africa (GTIEA) Project is funded by UNEP and the Global Environmental Facility (GEF). GTIEA is a small hydropower projects (SHPs) initiative in East Africa Region. Its objective is to support potential small hydropower developers in the tea industry in the region to build SHPs for internal consumption and to supply the excess electricity to the national grid. The tea industry is a heavy power user at factory level used mainly to fire the tea leaves into granules. The main source of power for the 100+ tea factories in Kenya is currently wood. GTIEA has funded a study to examine the feasibility of replacing woodfired factories with electricity powered ones. The electricity would be generated by hydro electric generated power from stations to be built in Gura and Kipchoria. These two stations are intended power between 5 to 7 tea factories. If the model works and the resulting cost and environmental benefits accrue, further hydro SHPs would be built. EATTA argues that successful implementation of / agreement on power wheeling tariff arrangements at satisfactory tariff rates will create a winwin situation for all stakeholders. Sustainable sources of power for tea factories that are environment friendly (hydro vs. wood fired power) would be built increased cost competitiveness for tea factories (excess power generated would be sold to the national grid thereby reducing the net cost of electricity to tea factories), wider use of SHPs would also

result in a net increase of supply of electricity to the national grid. The environmental benefit would be reduced carbon emissions. EATTA, together with GTIEA, wants to engage the Ministry of Energy and the Energy Regulation Commission on the policy components of the draft Energy Bill (in development) and the use of accepted international principles and formulas that guide the setting of power wheeling tariffs. Other key stakeholders will be included - Kenya Power and Lighting Limited, and Kenya Electricity Transmission Company (KETRACO), the Ministry of the Environment and the Ministry of Agriculture.
East African Tea Traders Association (EATTA): Volem Tea Levy

In 2010 BAF supported EATTA to engage the Ministry of Agriculture (MoA) on the Tea (Amendment) Bill 2010 now the Tea (Amendment) Act 2011. EATTAs key advocacy was to overturn a Parliamentary Private Members Bill (the so-called Kones Bill) proposal and maintain the requirement of tea producers to sell to the tea factories and protect the supply chain to the tea auctions which it completed successfully. Other MoA proposals (new tea levy, incentives to promote value addition in the tea sector, and the restructuring of the role of the Tea Board of Kenya) were unsuccessful and are the subject of ongoing engagement. EATTA wants MoA to reverse the current Gazette Notice on the ad valorem levy and return to dialogue with the tea industry. EATTA recognises that the Tea Board of Kenya and the Tea Research Foundation need funding to carry out their mandates. These are intended to be funded by the levy. However, the level of increase in the levy, EATTA argues, has not been demonstrated and is not justifiable. EATTA has also consistently lobbied the MoA and the Tea Board of Kenya (TBK) to create a business environment that encourages investment in building the tea industry (in the same way it has done the tourism industry). The tea industry is given nothing and last year generated KShs 109 billion in foreign exchange earnings. By introducing this levy, the government wants to raise the tea industry tax burden from KShs 200 / KShs 300 million to KShs 1 billion in one fell swoop. EATTA wants incentives introduced for investment in value-addition activities, and thereby implement Chapter 4.2 of Vision 2030 value addition in the agriculture sector. It would also place the Kenyan tea industry on a more level playing field compared to its principal competitor Sri Lanka. (The Sri Lankan tea industry receives tax relief on investment and export subsidies on packed tea.)
Kenya National Chamber of Commerce & Industry (Kitale Branch): Follow up on Implementation of Single Business Permit

Previously, BAF supported KNCCI Kitale to develop a Memorandum of Understanding (MoU) with the Kitale Municipal Council and the Nzoia County Council on the effective Single Business Permit (SBP) implementation enforcement process; that eventually saw the removal of un-necessary charges on the business community which was the main advocacy issue. Since then, significant progress has been made and the benefits have been enormous. KNCCI Kitale will to conduct an M&E survey in Trans Nzoia County on the implementation of the MoU as per the agreed terms. The MoU was implemented in Kitale Municipal Council and Nzoia County Council and jurisdictions. After the survey, KNCCI will then organise a meeting with

the Town Clerks, the respective Council officials and the Provincial Administration to discuss the findings of the survey and possible interventions. During the meeting, KNCCI will also seek to refresh the spirit of the MOU with the council officials.
Kenya National Chamber of Commerce & Industry (Kitale Branch) : Extension of Single Business Permit MOU Jurisdiction

The SBP implementation/enforcement and harmonization program would encompass and include stakeholders under the jurisdiction of not only KMC/NCC but be extended to rural areas thus conferring and spreading the benefits of the MOU bargain to all local authorities officers and KNCCI members across Trans Nzoia County and North Rift, specifically Turkana County. It is intended that if spread as indicated then the benefits would also spread to many more members of KNCCI. The target in the extension of the jurisdiction will be the KNCCI Branches in the neighbouring counties together with the respective council officials.
Kenya National Chamber of Commerce & Industry (Kisumu Branch) : Follow up on implementation of Single Business Permit

Previously, BAF supported KNCCI Kisumu to develop a Memorandum of Understanding (MoU) with the Kisumu Municipal Council and the Kisumu County Council on the effective Single Business Permit (SBP) implementation enforcement process; that eventually saw the removal of un-necessary charges on the business community which was the main advocacy issue. Since then, significant progress has been made and the benefits have been enormous. KNCCI Kisumu will engage a consultant to conduct an M&E survey in Kisumu County on the implementation of the MoU as per the agreed terms. The MoU was implemented in Kisumu Municipal Council and Kisumu County Council and jurisdictions. After the survey, KNCCI will then organise a meeting involving the Town Clerks, the respective Council officials and the Provincial Administration to discuss the findings of the survey and possible interventions. During the meeting, KNCCI will also seek to refresh the spirit of the MOU with the council officials. Kenya National Chamber of Commerce & Industry (Kisumu Branch) : Extension of Single Business Permit MOU Jurisdiction The SBP implementation/enforcement and harmonization program would encompass and include stakeholders under the jurisdiction of not only KMC/NCC but be extended to rural areas thus conferring and spreading the benefits of the MOU bargain to all local authorities officers and KNCCI members across Nyanza region and Kisumu Municipal Council, specifically Kisumu County. It is intended that if spread as indicated then the benefits would also spread to many more members of KNCCI. The target in the extension of the jurisdiction will be the KNCCI Branches in the neighbouring counties together with the respective council officials.
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